U.S. Global Investors Announces the Continuation of Monthly GROW Dividends and Expanding Margins with Rising Total Assets Now Over $2.2 Billion

San Antonio, Texas, Sept. 23, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, is happy to announce it will continue its payment of a monthly dividend for the second fiscal quarter of 2021. The Company has paid a monthly dividend since June 2007. 

The Company is also pleased to announce operating margin expansion for the quarter ending September 30, 2020. As of June 30, 2020, the Company’s assets under management (AUM) were $1.7 billion, a more than threefold increase from a year earlier. Correspondingly, total operating revenue has risen above the average revenue from the previous four quarters, reflecting the momentum in new fund flows. Quarter-over-quarter and year-over-year results are positive in both top and bottom-line growth. Assets have continued to grow in July, August and September, and are currently over $2.2 billion. The increase in AUM is being primarily driven by the Company’s U.S. Global Jets ETF (JETS). 

“We have accomplished several milestones in 2020, including our smart-beta 2.0 airlines ETF, JETS, breaking above $1 billion and our smart-beta 2.0 gold mining ETF, the U.S. Global GO Gold and Precious Metal Miners ETF (GOAU), surpassing $100 million in net assets for the first time ever. Our ETFs have continued to grow, and JETS is now over $1.6 billion and GOAU is over $119 million as of September 21. We spent thousands of hours building and backtesting the dynamic structure and factors for picking stocks in both ETFs, and we’re very pleased that they’ve performed exactly as we designed them to. Operating income margins are now expanding to about 30 percent as assets have risen and marketing has become a smaller portion of costs as a percentage of revenue,” says Frank Holmes, The Company’s CEO and chief investment officer. “Rockets require massive amounts of fuel to break free of the earth’s gravity, and likewise, we’ve spent a lot of money in marketing to get JETS and GOAU to these levels.” 

The Company pays all expenses of the ETFs, and an estimation of revenue based on AUM can be seen in the table below. 

ETF ASSETS UNDER MANAGEMENT	ETF EXPENSE RATIO	ADVISER ETF REVENUE
$100 Million	60 Basis Points	$600,000
$500 Million	60 Basis Points	$3 Million
$2 Billion	60 Basis Points	$12 Million

“As we noted in our fiscal year-end webcast on September 10, due to accomplishing these milestones, we expect revenues to increase due to the increase in AUM,” continued Mr. Holmes.  “Although we also expect expenses to increase, we do not expect them to grow at the same rate as revenue, thus resulting in an expected expansion of operating income margin. We are pleased with the continued growth in our funds and are excited about the benefit that this expected operating margin expansion will have for the Company.”