U.S. Global Investors (NASDAQ:GROW) has reported solid financial results for the fiscal year ended June 30, 2024, amid challenging macroeconomic conditions.
Notably, the company’s shareholder yield was 9.41%, more than double the yields on both five-year and 10-year Treasury bonds.
It remained committed to returning value to shareholders, delivering $2.2 million in share purchases during the year. This marked an 86% increase from the same period a year earlier and 760% more than fiscal 2022.
Net investment income surged 578% to $2.1 million from the previous 12-month period.
Average assets under management were $1.9 million, down from $2.4 billion the previous year.
Net income decreased to $1.3 million from $3.1 million attributed to a decrease in advisory fees from lower assets under management.
Operating revenues were $11 million, down from $15 million for the previous fiscal year.
“We can’t control external factors like geopolitics, interest rates, taxes or regulations. However, we do have control over our internal processes, including robust governance, compliance and our smart beta 2.0 approach to developing thematic ETF products, which combines quantitative and fundamental analysis,” U.S. Global Investors (NASDAQ:GROW) CEO Frank Holmes said in a statement.
“While we cannot directly influence investor sentiment, we remain optimistic, particularly following the reversal of the yield curve in September after its historic 783-day inversion.”
The company is confident in the long-term growth of the airline industry on strong demand for air travel, lower borrowing costs, and the return to pre-pandemic levels of consumer travel spending.
In April it merged the U.S. Global Jets UCITS ETF with the newly acquired Travel UCITS ETF, which now provides exposure to airlines as well as other sectors of the travel industry such as hotels and cruise line operators.
The firm is also bullish on gold after it recently reached an all-time high price, with imminent interest rate cuts seen potentially boosting demand for the metal.
Assets under management in the U.S. Global GO Gold and Precious Metal Miners ETF were stable between August 2023 and August 2024, U.S. Global Investors noted.
“De-dollarization, geopolitical tension and concerns over U.S. debt sustainability continue to drive interest in gold,” Holmes commented. “With limited alternatives in other major currencies, central banks have increased their gold reserves, a trend that could continue given expectations of gold continuing to hit new all-time highs.”