U.S. Global Investors, Inc. ( NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, recorded a net loss of $37,413, or $0.00 per share, on operating revenues of $3.05 million for the quarter ended September 30, 2013 (i.e., the first quarter of fiscal year 2014). One year ago, for the first quarter of fiscal year 2013, the company had net income of $48,800, or $0.00 per share, on operating revenues of $4.41 million. As of September 30, 2013, total assets under management were $1.19 billion versus $1.77 billion at September 30, 2012. Average assets under management were $1.20 billion for the quarter ended September 30, 2013. The decline in assets was predominately in the natural resources and emerging markets funds. “Over the past few months, the company has been focused on reducing costs and implementing strategic changes related to products and services,” says Frank Holmes, U.S. Global Investors CEO. “These meaningful changes will allow us to focus on our core competencies moving forward. It’s also important to recognize that, in a highly regulated world, the streamlining process consumes money, time and resources to implement.” In an exciting development, the firm reached a significant milestone for entering the exchange-traded fund (ETF) marketplace. On October 23, the Securities and Exchange Commission granted exemptive relief to the company, allowing it to bring products to market. “We’re excited that we’ll soon enter this growing market, as these investment vehicles are in high demand by investors,” says Holmes. In addition to the product streamlining previously announced, the company also plans to reorganize the MegaTrends Fund into the Holmes Growth Fund. The newly reorganized fund will be named the Holmes Macro Trends Fund, with the proposed merger taking place on or about December 20, 2013, if approved by shareholders of the MegaTrends Fund. The MegaTrends Fund currently utilizes a macro-driven, proprietary investment strategy to identify attractive sector allocation while the Holmes Growth Fund uses what we call the 10-20-20 Model. The stock-picking process is dynamic and focuses on companies growing revenues at 10 percent, generating a 20 percent earnings growth rate and a 20 percent return-on-equity.