U.S. Global Investors Reports Financial Results for the Third Quarter of 2020 Fiscal Year, with Updates on Airline ETF, Gold & Precious Metal ETF and Investment in Blockchain Crypto Mining - Seite 2

Economic and Financial Impact of COVID-19

During the quarter ended March 31, 2020, the rapid spread of the global COVID-19 outbreak and actions taken in response had a significant detrimental effect on the global and domestic economies and financial markets. Market declines affect the Company’s AUM and thus revenue and also the valuation of the Company’s corporate investments. It is early to determine the long-term impact of current circumstances on the Company’s business.

“On behalf of everyone at U.S. Global Investors, I want to extend my deepest sympathy to all those who have been impacted by the novel coronavirus,” says Frank Holmes, CEO and chief investment officer. “I am especially grateful for the hundreds of thousands of physicians, nurses and other health care workers who are on the frontlines battling this pandemic. They are the true heroes of this crisis.”  

Record Inflows into the Company’s Airline ETF

JETS had its best quarter ever in its five-year history, with its net assets increasing more than $250 million between the beginning of the year and March 31, 2020. As of the end of the first quarter, total AUM in the smart-beta ETF stood at $302 million, more than four times the amount as the same time a year earlier. Average weekly trading volume for JETS was 3.6 million shares during the quarter ended March 31, compared to only 164,300 shares during the same three-month period in 2019.

“We couldn’t be more thrilled with how JETS has done this past quarter, and we’re pleased that investors see the incredible value in airlines as an asset class,” comments Mr. Holmes. “As most equity share prices have dropped during the impact of the coronavirus, deep-value investors and hedge funds have sought discounted exposure to airlines, an industry that most consider essential in today’s interconnected world. Some 2 million passengers flew every day in and out of U.S. airports in 2019, according to the Federal Aviation Administration (FAA). The industry also employed approximately 10 million U.S. workers, either directly or indirectly. Politicians know that the airline industry is critical in turning around the U.S. economy. That’s why, on March 27, Congress approved and President Donald Trump signed into law a $2.2 trillion stimulus package with $58 billion in earmarked liquidity for coronavirus-hit domestic airlines.