U.S. Global Investors, Inc. ( NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, recorded net income of $409,382, or 3 cents per share, on revenues of $5.88 million for the quarter ended December 31, 2011. This compares to net income of $2.33 million, or 15 cents per share, on revenues of $11.91 million for the second quarter of fiscal year 2011. A swing in performance fees was a significant factor that impacted revenue and earnings during the quarter ended December 31, 2011. Revenues were also impacted by a decline in assets under management. Average assets under management were $2.08 billion for the quarter ended December 31, 2011, a 27.1 percent decrease from the same quarter a year ago. Sequentially, average assets under management decreased 15.4 percent from the previous quarter. Period-end assets under management stood at $1.89 billion as of December 31, 2011, a 37.9 percent decrease from $3.04 billion at December 31, 2010. “The second half of last year was similar to 2008 as uncertainty surrounding the U.S. debt ceiling and the unraveling of the sovereign debt crisis in Europe spiked,” says Frank Holmes, U.S. Global Investors CEO. “This lack of confidence caused the selling of equities across the board despite roughly half of S&P 500 companies experiencing revenue growth of 10 percent or greater.” According to the Investment Company Institute (ICI), investors pulled more than $130 billion from equity mutual funds during 2011. This represents the second-largest withdrawal of funds in the past 25 years and is four times the amount withdrawn in 2010. According to USA Today in December, 92 percent of the 8,036 U.S. diversified stock funds tracked by Lipper posted a loss in 2011. Emerging markets and natural resources-related equities also fell victim to this uncertainty. The leading exchanges in Brazil, Russia, India and China all experienced double-digit declines in 2011. The MSCI Emerging Markets Index decreased 18 percent for the year, and the SPDR S&P Global Natural Resources ETF (GNR), which tracks a global basket of commodity-related equities, declined 17 percent.