U.S. Global Investors’ Near-Term Tax Free Fund Earns 5-Star Rating
Date Posted: September 17, 2014
Read time: 5 min
SAN ANTONIO–September 16, 2014 – U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, has earned the coveted 5-star Morningstar rating for its Near-Term Tax Free Fund (NEARX) for the 3-year performance period. The fund was ranked in the Morningstar category of Municipal National Short-Term funds. Only the top 10 percent of funds in each category receive five stars.
The fund has a 4-star rating for its 5- and 10-year performance periods as well as for its overall performance.
“During this prolonged environment of low interest rates and volatile global stock markets, investors and financial advisors have appreciated the steady performance and the tax-free income that the Near-Term Tax Free Fund has delivered,” said Frank Holmes, CEO and chief investment officer.
The Near-Term Tax Free Fund has generated consistent positive total returns (yield + appreciation) for investors for 13 years in a row. The fund invests primarily in investment-grade municipal bonds with relatively short maturities and seeks to provide tax-free monthly income by investing in debt securities issued by state and local governments from across the country. The fund is managed by Director of Research John Derrick, CFA, who has 20 years of experience, alongside Frank Holmes.
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About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 40 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment advisor that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides money management and other services to U.S. Global Investors Funds and other international clients.
Please consider carefully a 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.
| Fund | One-Year | Five-Year | Ten-Year | Gross Expense RAtio | Expense Ratio After Waivers |
|---|---|---|---|---|---|
| Near-Term Tax Free Fund (NEARX) | 3.68% | 3.07% | 3.16% | 1.21% | 0.45% |
Expense ratio as stated in the most recent prospectus. The expense ratio after waivers is a contractual limit through December 31, 2014, for the Near-Term Tax Free Fund, on total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest). Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. 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 direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS.
Past performance does not guarantee future results.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. The Near-Term Tax Free Fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. The Near-Term Tax Free Fund may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer. Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that a decline in the credit quality of a portfolio holding could cause a fund’s share price to decline.
Morningstar Overall Rating™ among 164 Municipal National Short-Term funds as of 08/31/2014 based on risk-adjusted return.
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Overall/164 |
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3-Year/164 |
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5-Year/135 |
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10-Year/103 |
Morningstar ratings based on risk-adjusted return and number of funds
Category: Municipal National Short-Term Funds
Through: 08/31/2014
Morningstar Ratings are based on risk-adjusted return. The Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year Morningstar Rating metrics. Past performance does not guarantee future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)
