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Thursday, September 27, 2007|
U.S. Global Investors to Take Control of MegaTrends from Sub-Adviser
U.S. Global Investors will take over direct management of its U.S. Global Accolade MegaTrends Fund on October 1. U.S. Global plans to re-christen the fund the Global MegaTrends Fund to reflect a broadening of its investment strategy. The fund's sub-adviser, Leeb Capital Management, will no longer be involved in the day-to-day management of the fund after September 30, but has been retained for services relating to the Global MegaTrends Fund.
U.S. Global Investors, Inc. (Nasdaq: GROW - News), a registered investment advisor, will take over direct management of the U.S. Global Accolade MegaTrends Fund (ticker MEGAX) effective October 1, 2007.
The fund's investment objective will not change, but its name will be changed to the Global MegaTrends Fund to reflect a broadening of its investment strategy. The fund, whose ticker symbol will remain the same, will invest primarily in equities that stand to benefit from dominant trends, both established and emerging, within the global economy.
U.S. Global has identified investment in global infrastructure as such an opportunity, and thus it will be a significant focus of the Global MegaTrends Fund.
"The largest emerging markets - China, India and others - have committed to building out their infrastructure to support their rapid economic growth and to create more growth opportunities in the future," says Frank Holmes, CEO and chief investment officer at U.S. Global.
"Compared to the developed world, these countries have a long way to go when it comes to highways, airports, seaports, railroads, water systems, power generation and other critical infrastructure," continues Mr. Holmes, who will be one of the Global MegaTrends Fund managers. "Catching up with their needs will consume huge amounts of energy and commodities, and it will produce market opportunities for many companies that can help with that work.
"There will also be many opportunities as the United States and other developed nations address their vast needs," says Mr. Holmes. "The recent bridge collapse tragedy in Minneapolis prompted U.S. cities and states to assess the condition of their infrastructure, and many of those assessments found that massive expenditure is necessary for road and bridge repairs. Those conclusions were in line with a 2005 study by the American Society of Civil Engineers estimating that $1.6 trillion was needed over a five-year period to address current needs. Warren Buffett is among the investors who has spotted the infrastructure opportunity. He has been making investments in pipelines, utilities and railroads for several years now."
Leeb Capital Management will no longer be involved in the day-to-day management of the fund after September 30, 2007. Leeb Capital has been retained by U.S. Global for services related to the Global MegaTrends Fund.
About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company offers financial solutions and provides transfer agency and other services to U.S. Global Investors Funds, U.S. Global Accolade Funds and other clients.
With an average of $5.02 billion in assets under management in the quarter ended June 30, 2007, U.S. Global Investors manages domestic and offshore funds offering investment options from emerging markets to money markets. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Please consider carefully the fund's investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.
Total Annualized Returns as of 6-30-07 ---------------------------
Gross expense ratio as stated in the most recent prospectus. Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any fees described in the fund's prospectus (e.g. short-term trading fees) which, if applicable, would lower your total returns.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. This news release may include certain "forward-looking statements" including statements relating to expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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