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Edited Transcript of GROW earnings conference call or presentation 10-May-19 12:30pm GMT

Q3 2019 U.S. Global Investors Inc Earnings Call

SAN ANTONIO May 23, 2019 (Thomson StreetEvents) -- Edited Transcript of U.S. Global Investors Inc earnings conference call or presentation Friday, May 10, 2019 at 12:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Frank Edward Holmes

U.S. Global Investors, Inc. - CEO, CIO & Director

* Holly Schoenfeldt

U.S. Global Investors, Inc. - Public Relations Leader

* Lisa Christine Callicotte

U.S. Global Investors, Inc. - CFO

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Presentation

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [1]

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Good morning, and thank you for joining us today for our webcast announcing U.S. Global Investors' results for the third quarter of fiscal year 2019. I'm Holly Schoenfeldt. If you have any questions during the webcast, you can enter them into the question area of the control panel side bar, which is normally to the right of your screen. Also, you can download a PDF of today's slides by clicking on the red handout button.

The presenters for today's program are Frank Holmes, U.S. Global Investors CEO and Chief Investment Officer; Lisa Callicotte, Chief Financial Officer; and myself, Holly Schoenfeldt, Marketing and Public Relations Manager.

During this webcast, we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results.

Please refer to our press release and corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today, and U.S. Global Investors accepts no obligation to update them in the future.

And on Slide 4, very briefly about U.S. Global. U.S. Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors, was founded as an investment club and the company became a registered investment adviser in 1968 and has a long-standing history of global investing and launching first-of-their-kind investment products, including the first no-load gold fund. U.S. Global is well known for expertise in gold and precious metals, natural resources and emerging markets.

And with that, I'm going to move to Slide 5 and go to Frank Holmes, CEO and CIO, for an overview of the period. Frank?

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Frank Edward Holmes, U.S. Global Investors, Inc. - CEO, CIO & Director [2]

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Thank you, Holly. It was interesting because we just started as an investment club of the military. And the Founder, Colonel Clark Aylsworth, who was an Air Force pilot, started this idea and he was the first to go into no-load gold investing when the yields were like 14% in the '70s. It was really -- it started in '68, but it really grew into a mutual fund. And it was probably -- it was prior to the USAA setting up their mutual funds. And so I think an interesting history, and USAA is just up the street from our head office at Callaghan and I-10 in San Antonio.

But what are our strengths? We're the go-to stock for exposure to emerging markets, resources, gold and now it's become digital currencies. And I think it will also pivot into artificial intelligence with our significant investment in GoldSpot.

We're debt-free. We have a strong balance sheet, with a reflexive cost structure. And we'll talk more about that. And then the monthly dividend return on equity discipline.

Next, please. We want to thank all of our institutional investors that have stayed with us, that have come and gone. And really, it's interesting to see, but some of them are -- have been very, very astute in how they've used U.S. Global as a proxy for gold and a proxy for other unique investments. So I'd like to thank The Royce Funds, Perritt, Financial & Investment Management Group in Michigan and BlackRock and Toroso for their commitment and support of our vision.

Next, please. So we've consistently paid more -- dividend for more than 10 years with a yield that's about 2.5%, which is higher than the S&P Small-Cap ETF's indexing.

Next, please. So we do have a share repurchase program in motion. The Board has approved the purchase of $2.75 million. We run an algorithm, and so it picks up when we have down days. It picks up X percent when it falls X percent and Y dollars. So you can see that we did repurchase about 8,075 class A shares using $9,000. So it's much more driven by a share repurchase on volatility, and we may be suspend or discontinue at any time.

Next, please. Balance sheet strength, no debt. So that's the important part.

And so going onto the next one. The earnings. Lisa Callicotte, our CFO, will articulate more about some of the events we did in the last presentation on the volatility because of our investments and companies like particularly Hive -- and Hive Blockchain was the first blockchain crypto mining company to go public. And it basically now attracts the volatility of the crypto prices, which we'll comment to you, is far greater than the gold market or the gold equities. But also important is the accounting changes that significantly impact the volatility of earnings that even Berkshire Hathaway had their worst quarter at the end of December because of this volatility.

Next, please. So our assets under management, it's still -- it's a very tough, tough bear market. I've never seen such a slow bear market in the financial sector. Mutual funds, as a whole, continue to see a repositioning, regulatory costs, new rules coming in for private placements and it just seems to grow as more and more people got away from active management and have gone into ETFs because they're cheaper at the beginning, but I think it does impact them. It impacts the creation of new micro-cap stocks.

Next, please. So the disconnect between expected -- expectation/reality: more small caps are unprofitable, historically signaling a slowdown. The inverted yield curve is a great concern in the markets. But I also think there's other factors that impact a lot of the Russell 2000. And I think for ourselves, we have to really be conscientious of being as lean as possible and how do we streamline our cost structure in a very regulated world.

Next, please. Gold, gold, gold. And GROW has always been a go-to stock for gold. Gold assets take off, then we give them tremendous leverage, probably more leverage than gold mine. So that's one of the reasons why we've experienced this sort of -- this trend following with the price of gold. But it's so important for people to understand what drives gold. And the media is always dominated with fear, fear, fear. The dollar is the biggest reason. But really what's important for investors is love. Love is the biggest driver for gold. Love for your country, love of your family, preservation of money from governments, the big missteps on their monetary and fiscal policy or there's this horrible regimes like in Venezuela and Syria.

People that are of Syria, people that are of Vietnam, if you go back in the history books, you'll see that their families had gold. That was always a significant factor. And so it's something you can wear. It's something that's pretty malleable and it never rusts. So gold has many attributes that drives the thought process that's love.

And the love trade is dominated with cultural celebrations prompting every -- the purchase of gold. Right now we're in the Ramadan season, and we always get -- so that seems to be a trough in the price of gold -- for love. And then we're going to go to the Indian wedding season and then the season of lights.

But when it comes to fear, what's really important to recognize is it's a binary model. You can see it simple. It's either monetary policy or fiscal policy. Jerome Powell, the Head of the Federal Reserve drives monetary policy. And the President drives fiscal policy along with legislation coming out of Congress and Senate approving.

So it's so important to see that what drives monetary is real interest rates and money supply and what drives fiscal policy is tax and regulation and spending. So lower taxes and lower regulation means a stronger fiscal spending. It usually shows up in the economy. And however, trade wars can have a big impact. And trade wars are a form of regulation. So that spooks the market like it's done for the past week. We had a big selloff in the last quarter of last year and then a rally and then all of a sudden now trade wars are on again. Those are positive and negative. I am trying to highlight for you what is positive, what is negative so you can understand the fear trade of gold. It is real interest rates.

Managing expectations, we've written about this extensively. If you've not read them, I highly recommend it that each asset class has its own DNA of volatility. You can use it to your favor. So it's a nonevent for the S&P or gold to rise or fall 1% on a daily basis. On a rolling 1 year, those numbers change. But what's really volatile is the price of oil. And the next visual -- to highlight that is -- sorry, we skipped it there, but cryptocurrencies, they have a 6% to 7% daily volatility. So that's impacted our major investment in HIVE, which becomes significant because investment in HIVE has become a proxy for bitcoin and Ethereum.

Many investors use that rather than try to go to different experts, always a problem with these exchanges or they're afraid of opening account of coin-based, wallets being stolen. There's so much negative news around it. So what's happened is that HIVE has become this proxy, and then directly, it impacts our results.

So let's come back to gold. Gold is the second best performing asset class since 1999, and it always amazes me that most of New Yorkers particularly think that gold is a bad asset class. So if you take a look at the largest fund manager, hedge fund of the world, he's a big believer in gold as part of your asset classes. And so gold is an important part, and we've always advocated the 10% golden rule. That is 10% of your portfolio is in gold-related assets, and you rebalance each year.

Next, please. So the other big part that we've done in this past quarter is made a significant investment in an AI company, the first to go -- in particular to go public is GoldSpot. GoldSpot is listed in Canada. They have 9 PhDs, young, young people. Montréal is becoming a sort of an epicenter for AI, or artificial intelligence, that Microsoft is hiring 5,000 people to create a huge center there that a lot of the French-Canadian intellectuals there that have these credible mathematical degrees of AI.

And scientists do not want to leave Montreal. They don't want to go to New York. They don't want to go to Seattle. So basically, Microsofts of the world are going to Montréal. And that's very positive for us.

So we've been taking the data -- go to the next visual. It's basically -- Denis has done a phenomenal job -- Laviolette, Denis Laviolette in building this company, along with another sort of [sere] entrepreneur that backed Denis like we're backing Denis in his vision.

Next visual, please. So what do they do? They take the data from exploration results and from existing [drawing] results, and they can create a 3-dimensional model that is actually far superior because the human mind can only process it from 4 different types of data -- sets of data overlapping each other whereas AI can let you have 50 sets of data overlapping.

And I'm always just thrilled to meet this young scientist, 29 years old, PhD at tectonic plates or another one, I'm not sure, geophysicist. So it's a huge advantage for our company, this investment in GoldSpot because they're the leader and they have major support. Elliot Management, they're a royalty company in Toronto, bought 10% of the company. Eric Sprott has bought 10% through his personal account. And there are companies that have been using this analysis. And Hochschild, which is the most significant producer in Peru, not only have they been a significant investor, they themselves have been using this technology, which is a lot less expensive than IBM. And IBM has their own Watson. IBM does not have all the geoscientists. So when you look at the data, they have over 20 key people with unique skill sets, in addition to -- when you look at -- or 20 -- over 20, and 9 of them have PhDs in geosciences.

So they can take big data, they could unlock and they basically -- they minimalize -- they optimize drilling. That is get rid of this garbage, don't waste your money drilling in these areas, et cetera, which is very important.

And when it comes to these junior mining companies that are starving for cash, they will make an investment in those companies, they'll get shares and then they'll use their services. And then GoldSpot gets a royalty on it. So that was a really interesting part, the fact that you get a royalty on those junior exploration results.

Next, please. So we continue to tell our story in the financial media and continuing to try and explain why gold is an important part of your asset class and from all around the world speaking at events.

Next, please. So this is the important part I was trying to show earlier, the volatile -- I was commenting on it. And it's just good to see how it's changed. But as you can see, the S&P daily volatility, plus minus 1%, bitcoin and Ethereum was 4% and 5%. But what's interesting is a year ago, bitcoin and Ethereum were 6% and 7%.

So the bear market has really basically squeezed a lot of that daily volatility, but you can see the 10-day volatility is 4x greater and just really for investors to recognize that does impact [gold] stock because of significance of a HIVE investment.

Next, please. So major events have been suppressing the price of gold. And I think it's been great, the regulatory world has gone after so many people in this industry that are -- I just think they lack corporate governance to the degree it's necessary to be -- taking investors' money, be it even to a private company or a public company. And it's really amazing to see what's taken place. And that's helped with the sort of heating up the Wild West, like we had 130 years ago. And it's slowly happening. And I think that the real pivot at the bottom in this cycle was when JPMorgan, who was trashing cryptocurrencies, came out with their own stablecoin backed by U.S. dollar. And that was the real bottom, and bitcoin had a rally from there and, as I said, a positive impact on most of the crypto stocks and particular our -- the investment in HIVE. It was the best performing until we got into a proxy dispute with the largest shareholder, Genesis Mining, which I hope gets resolved here shortly.

Next, please. So this is another way of looking at bitcoin forms its first bullish golden cross since October 2015. You can see where it went below last year, and now it's come above. So it's very positive for that industry. And so I remain constructively optimistic. I don't think it's going to rip right up to 100,000, all those crazy. But I think it's slowly going to climb. Because during this whole bear market, the adoption, the number of people using wallets, the commitment by the Fidelities of the world of building their own exchange and platform. I can go on with a list of companies, and even Facebook now.

Next slide, please. Facebook is looking to come out with their own coin. And that could almost -- if it's backed by the dollar, that's very, very significant because they have 2 billion users. And so all of a sudden, Facebook can become a currency on its own that we'd be able to use to buy products. So they're exploring this very aggressively. And all this relates -- is all positive and constructive for this industry.

Next, please. So looking ahead, the growth in coin inventory through ongoing mining at existing facilities, access to opportunities, looking at M&A opportunities. So HIVE is busy -- always looking for growth as it deals on defense of managing the company's affairs.

Next, please. Another visual. HIVE trades closely with Ethereum, as you can see. It also trades very closely with bitcoin now.

Next, please. I'm going to turn it over to the brains of our organization that keeps all the numbers organized, the trends, and Lisa can articulate more about the income statement. And I think also was going to highlight again to readdress recent accounting standards and how they impact HIVE as an investment, the material investment flows through. And if it's up for the quarter, our results will be up; if it's down for the quarter, it can make an impact to our results. Lisa?

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Lisa Christine Callicotte, U.S. Global Investors, Inc. - CFO [3]

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Thank you, Frank. Good morning. Before I summarize the results of operations, like Frank said, I would like to address the investment accounting pronouncement that we adopted this year. Slide 29 notes changes in the accounting rules related to our investments that are causing our earnings to be more volatile.

We adopted accounting standard update ASU 2016-01, recognition and measurement of financial assets and financial liabilities, effective July 1, 2018.

The amended guidance changed the classification and measurement of investments and equity securities and certain disclosures. Starting in this fiscal year, some of our corporate investments were accounted for differently than in the past. There was no longer an available-for-sale classification for equity securities for readily determinable fair value. And as part of the adoption of the new standard, we made the required cumulative effective adjustment and reclassified $3.1 million in unrealized net gains and $1 million in related deferred tax expense out of accumulated comprehensive income and into retained earnings.

Effective July 1, 2018, changes in fair value of these investments formerly classified as available-for-sale are reported through earnings rather than other comprehensive income. This includes any changes in the market value of our investment in HIVE.

The impact to earnings for this change for the quarter ending March 31, 2019, was an unrealized investment gain of $2.1 million. This gain is related to unrealized gains on securities formerly classified as available-for-sale and previously would have increased our other comprehensive income rather than investment income.

The majority of this amount is related to the gain in the market value on our investment in HIVE. As of March 31, 2019, the market value of the company's investment in HIVE was higher than the cost. And due to the accounting change, it doesn't matter if an investment is short term in nature or long term, the change in the market value will be recorded quarterly, causing our investment income to be more volatile.

Slide 30 summarizes our investment in HIVE. At March 31, 2019, the investment in HIVE was included in investments in securities at fair value, noncurrent on our balance sheet. We own 10 million shares of HIVE, which is approximately 3% of the outstanding shares at quarter end. The cost of the investment was $2.4 million, and the market value at March 31, 2019, was $4 million.

Now I'll discuss the results of operations for our quarter ending March 31, 2019. Beginning on Page 31, we recorded total operating revenue of $971,000 for the quarter, which is a decrease of $446,000 or 31% from the $1.4 million in the same quarter last year. The decrease is primarily due to decreases in assets under management related to market depreciation and shareholder redemption and was somewhat offset by a decrease in the performance fees paid.

Operating expenses for the quarter were $1.9 million, a decrease of $152,000 or 8% primarily for the following reasons: employee compensation and benefits decreased $209,000 or 21% mainly due to decreases in bonuses and salaries; and the decrease was somewhat offset by an increase in general and administrative expenses of $60,000 or 7% primarily due to increase in fund and consulting expenses. We see our operating loss for the quarter March -- ending March 31, 2019, as a loss of $884,000.

On Slide 32, we see other income loss for the quarter ending March 31, 2019, was $2.1 million, which was mainly related to unrealized gains on investments, including investments formerly classified as available-for-sale.

Other income and loss increased $2.8 million from the same quarter in the prior year. Investment income increased $1.8 million compared to the third quarter in the prior year primarily due to unrealized gains of $2 million, realized gains of $16,000 and $28,000 of impairment losses compared to unrealized losses of $36,000 in the prior period. Also in the third quarter of our fiscal year 2019, we recorded income from equity investments of $3,000 versus a loss of $927,000 in the third quarter from fiscal year 2018.

Net income attributable to USGI after taxes for the quarter is $779,000 or $0.05 per share, which is an increase of $1.8 million compared to the net loss of $1.1 million and a loss of $0.07 per share from the same quarter in the prior fiscal year.

Moving to Page 33. We see we still have a strong balance sheet, which includes high levels of cash and unrestricted securities that combine to make up 72% of our total assets.

And as you can see on Page 34, we still have no long-term debt. The company has a net working capital of $12.7 million and a current ratio of 11.6:1.

With that, I'll turn it over to Holly.

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [4]

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Thank you, Lisa. All right. We go to Slide 37. As you can see, a majority of our mutual fund assets are in emerging markets and natural resources while 35% are in domestic equities and fixed income.

And as for distribution, more than 3/4 of assets come from retail investors, with 19% coming from institutional investors. Our sales and marketing efforts have continued to focus on our mutual funds, including those concentrated on gold, natural resources and emerging markets as well as our exchange-traded funds.

The company and our funds continue to receive an invaluable amount of viral publicity gained through media interviews. Frank Holmes often shares his insights with financial outlets like CNBC Asia, Bloomberg Radio and Kitco News, just to name a few.

We also continue to receive recommendations by influential financial newsletter writers as well, along with sharing and syndication of our award-winning original content by third-party publishers. The newsletters have a loyal following and receive millions of visitors every month.

Frank Holmes, CEO blog, Frank Talk, continues to grow in popularity. His commentary is often featured by prominent publications including Forbes, Seeking Alpha, The Crux and Business Insider with millions of monthly visitors. In fact, just last month, the Frank Talk blog turned 12. This blog was one of the very first in the financial industry. And to celebrate its success and our loyal subscriber base, we created a special slide show pinpointing the top 12 posts to celebrate 12 years of Frank Talk, which you can find on usfunds.com.

One of our core values at U.S. Global is curiosity to learn and improve. We believe that providing educational materials to our investors is one of many ways to achieve this. And some of our most recent pieces include the What's Driving Energy? handout pictured here as well as our Fear Trade and Love Trade white paper, and both of these are available for download on our website.

Kitco News, the biggest gold website in the world with an audience of over 30 million monthly visitors, in partnership with TheStreet continues to feature the Gold Game Film show with Frank Holmes' gold market analysis. And since the show's beginning, 163 episodes have been aired.

At quarter end, we also like to look at the most visited Frank Talk blog posts over the last year. So no matter what year they're actually written in, that's what we're looking at over the last year.

So on this slide, you will actually see that the most visited articles for the 1-year period were: one, the Top 10 Countries with the Largest Gold Reserves; two, Top 10 Gold Producing Countries; and three, What Does It Take to be in the Top 1%? And you can sign up for the blog for free on our homepage.

And all of this coverage helps us leverage our brand by reaching millions of readers, viewers and potential investors. Our website, usfunds.com, was visited 503,000 times from March 2018 through March 2019 by curious investors from all over the world. U.S. Global is often known for timely, balanced and positive market insights and our thought leadership. The company has been awarded numerous STAR awards by the Investment Management Education Alliance over the years for excellence in investor education. At the end of 2018, we added 3 more awards, bringing the total to 85 STAR awards.

Our subscriber base continues to grow organically, and we currently have over 44,000 curious investors subscribed to our investment newsletters and the Frank Talk blog. We also continue to see a large following across all of our social media platforms.

Investors can sign up at usfunds.com and join these subscribers to receive the award-winning Investor Alert e-newsletter as well as the Frank Talk blog.

And quickly as we wrap up today's presentation, we do want to offer attendees of the live webcast the opportunity to drop us a line. We love hearing from you guys. And if you would like a free Enjoy Capitalism T-shirt, please shoot us a quick note to info@usfunds.com after today's presentation.

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Questions and Answers

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [1]

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And now we would like to open it up to questions. (Operator Instructions)

And I have a few to start. The first one, Frank, if you could comment on this. If a U.S. recession and a bear market is imminent, how do you see this impacting GROW? What should investors be focusing on right now?

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Frank Edward Holmes, U.S. Global Investors, Inc. - CEO, CIO & Director [2]

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How it impacts GROW, is historically, we get a bigger lift if you have a movement positive in gold and the equity markets. So the overall equity market is above the 50-day moving average, gold above the 50-day moving average and all of a sudden the valuations change and there's a surge. When you have the equities below the 50 day and gold is above its 50 day -- the inverse of that -- then GROW has participated on the upside with the price of gold but in a muted way. So it's -- the real leverage comes from when you have both the commodity trending positive and the overall equities trending positive. But what we'd advocate for investors is that -- look at our tax-free funds and our short-term government bond funds. They're just great asset classes. If you're worried about the correction, you're not a rebalancer, you're a trend follower, you're trying to be practical, the near-term tax-free is just a great way to park your money and it's a pretty stable NAV when you compare it to other bond funds. It doesn't move that often, [take a movement even a $0.01].

So I think that that's a real important part for investors that they really make sure they've got a barbelling, that they have a lot of short-term fixed income investments along with their equity.

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [3]

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Perfect. Thank you for that. Here's a question, Lisa, that maybe you can answer. It says: what is the value of your investment in GoldSpot?

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Lisa Christine Callicotte, U.S. Global Investors, Inc. - CFO [4]

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Well, during the quarter ending March 31, 2019, we purchased 7.1 million shares of GoldSpot. And at the end of that period, the market value was approximately $1.3 million.

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [5]

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Frank, I have another question for you about bitcoin. This one says: The price of bitcoin seems to be holding steady lately. Do you see it going up further this year? Or what are your thoughts on the next movement for that space?

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Frank Edward Holmes, U.S. Global Investors, Inc. - CEO, CIO & Director [6]

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I think on the slide we showed earlier today is that the golden cross took place, and it's a very sort of constructive bull market that's taking place. It's not going to take off straight up, that's all -- lots of BS. It's just on a slow (inaudible) climb. And I think that's what's positive about it. And the bottom took place when JPMorgan came out with their own crypto coin. So from that end, I remain constructively bullish, but ignore the hysteria of 20,000, 50,000, 100,000 over the next short period of time.

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [7]

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Great. Is there anything else that you would like to add, Frank, before we conclude?

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Frank Edward Holmes, U.S. Global Investors, Inc. - CEO, CIO & Director [8]

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Well, one of the things, we launched our ETFs. And one thing about mutual funds, [orders] cannot open the account to buy our mutual funds, but they can trade through their accounts. International brokers, they can trade on our ETFs, so they can buy our smart beta, gold equity ETFs and they can look at our airline ETF. And they've done exactly what we did. I'm very proud of them because we put thousands of hours of rigorous fact-testing before we went and launched this to the public.

And we took our tacit knowledge and experience in the mining sector in particular, and then we added the sort of quad approach. And when we did that mathematically, it said, it's going to outperform 90% of the time the other competing equity ETFs. And so we launched it, and it's done that. So we feel that it's a great way and the fact that the foreign investors from Switzerland or England that have global accounts can buy our products that are listed on the New York Stock Exchange. So that remains very positive.

But I think the real risk everyone needs to be cognizant of is that mutual funds as a whole and active management -- the bear market is not over. And it's -- and the real big pockets of money I'm told are with family offices. That's where things have shifted.

And you take a look at the infamous George Soros, he basically got rid of every one of his investors in his funds, so -- after 2008 -- because then he wouldn't be subject to regulatory oversight and he just runs his own family offices, which is like close to $10 billion. And so you're seeing a lot of other fund groups did that, and that's where you get active management still. Otherwise, the quants are dominating 70% of all of the noise every day of the trading that takes place. And they're able to process and read. You've got think of Google on steroids where they can read word choice on a press release and immediately make a stock go up or down 7% or 20% because there's been a pattern of analysis done that when you have those factors in a press release, the stock should rise or fall for the next 3 to 7 days, is usually the horizon.

People have to become cognizant of the shifts in the formation of capital. And when we get someday streamlining of regulations that favors active management, then I think we'll get a boom back into that sector. But in the interim, we are still in that slow, bear contraction in mutual funds.

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [9]

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Perfect. Thank you for that, Frank.

All right. With that, this concludes U.S. Global Investors webcast for the third quarter 2019. As I said, previously, this presentation will be available on our website, usfunds.com. And thank you all for your participation today.

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Frank Edward Holmes, U.S. Global Investors, Inc. - CEO, CIO & Director [10]

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Thank you, Holly. Thank you, Lisa and everyone else on the team, [Cath] and [Joseph] and everyone on the team and [John] for putting this together.

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Holly Schoenfeldt, U.S. Global Investors, Inc. - Public Relations Leader [11]

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Thank you.