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JOB NO. 240 GOVERNMENT REDEEMERS LETTER
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[GRAPHIC: USGI Logo]
Dear Shareholder,
Thank you for your investment in the U.S. Government Securities Savings Fund. We
hope that your recent redemption means you have reached your financial goals and
are now using the income you have earned from our #1-ranked fund to make those
goals a reality.
I encourage you to continue your investment in the Fund, however, since any
investor can benefit from an account in this fund. You already have seen how the
Fund's high yield can help your money grow, and you may be glad to have
sheltered your money in the safe haven the Fund provides. Yet there are even
more advantages to investing in this fund.
First, the Fund's performance exceeds that of any other government money market
fund for the five-year period ended March 31, 1997. During that period, Lipper
ranked the Fund #1 for having the highest yield in that category.
And the Fund continues to invest only in safe government and Treasury securities
to offer you the maximum stability of principal. The U.S. Government Securities
Savings Fund, like other government money market funds, is among the safest
mutual fund investments in America.
If you live in a state with income taxes, the Fund's effective earnings could be
even higher for you. Since the income from the Fund's portfolio of securities is
exempt from state taxes, your investment will earn more money by escaping your
state's tax bite.
For instant liquidity to your money, the U.S. Government Securities Savings Fund
offers free, unlimited checkwriting for checks of $500 or more. If you need your
money fast, simply write a check for cash or to whomever you like.
To reinvest in the Fund, simply send an investment check, or an endorsed check
written to you, to:
PO Box 781234
San Antonio TX 78278-1234
Invest again with us today so your money can immediately go to work for you.
Sincerely yours,
/s/ FRANK HOLMES
Frank Holmes
Chairman & CEO
P.S. If you have redeemed to cover the cost of retirement expenses, consider the
U.S. Government Securities Savings Fund for your IRA. Your retirement nest egg
can enjoy the same high yield and protection as a regular account, and taxes on
all earnings are deferred until you take distributions. You can even have
monthly distributions made from this fund automatically. Call 1-800-873-8637
today for more information.
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For more complete information, including charges and expenses, call
1-800-US-FUNDS or visit our Web site at www.usfunds.com for a free prospectus.
Please read it carefully before you invest or send money. U.S.
stands for United Services.
Lipper Analytical Services ranked the U.S. Government Securities Savings Fund #5
and #1 for the one- and five-year periods ended 3/31/97 out of 115 and 79
government money market funds, respectively.
This fund and the U.S. Treasury Securities Cash Fund, like all other mutual
funds, are neither banks nor FDIC insured; nor are they backed by the U.S.
government or its agencies; however, the securities which the former fund
invests in are. These funds are managed to maintain a stable $1 per share value,
though there is no assurance they will be able to do so. Past performance is no
guarantee of future results.
7900 Callaghan Road
........................
MAIL ADDRESS:
P.O. Box 29467
San Antonio, Texas
78229-0467
........................
Tel 210-308-1234
........................
1-800-US-FUNDS
........................
Fax 210-308-1223
........................
email [email protected]
<PAGE>
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JOB NO. 245 ALL AMERICAN MORNINGSTAR STUFFER
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[FRONT OF STUFFER]
[GRAPHIC: WATERMARK OF THE UNITED STATES FLAG]
A 5 STAR
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*****
For the 1-year period ended 3/31/97.
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ALL AMERICAN FUND
[BACK OF STUFFER]
Our BLUE-CHIP PORTFOLIO of AMERICA'S BEST-KNOWN COMPANIES has earned a FIVE-STAR
RATING FROM MORNINGSTAR for its excellent performance during the past year. The
U.S. ALL AMERICAN EQUITY FUND is an enhanced index fund which strives to
outperform the S&P 500 by investing in blue-chip stocks with growth potential
and dividend rewards.
[GRAPHIC: U.S. GLOBAL INVESTORS LOGO]
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Fund Information 1-800-557-2297, ext. 198
FOR MORE COMPLETE INFORMATION ABOUT U.S. GLOBAL INVESTORS' FUNDS, INCLUDING
CHARGES AND EXPENSES, CALL 1-800-US-FUNDS OR VISIT US ON THE WEB AT
WWW.USFUNDS.COM FOR A PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY. It details the special risks, including political, currency and economic
risks, of investing in emerging markets. U.S. stands for United Services. Past
performance is no guarantee of future results. Investment returns and principal
of accounts in non-money market funds may fluctuate so that you may have a gain
or loss when you sell shares.
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Morningstar uses a proprietary rating system to show historical, risk-adjusted
performance. These ratings may change monthly and are calculated from the funds'
one-, three-, five- and ten-year (when available) average annual returns in
excess of 90-day Treasury bill returns, with an appropriate adjustment for fees
and expenses and with a risk factor reflecting the funds' performance below
90-day T-bill returns.The one-year ranking is calculated using the same
methodology but is not a component of the overall ranking. Morningstar awards
five stars to funds in the top 10% of their category, four stars to funds in the
next 22.5%, three stars to the next 35%, two stars to the next 22.5% and one
star to funds in the bottom 10%. Morningstar awarded the Fund 5, 4, 3 and 1
stars out of 3048, 1919, 1076 and 601 domestic equity funds for the 1-, 3-, 5-
and 10-year periods ended 3/31/97. AA245
<PAGE>
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JOB NO. 246 CHINA MORNINGSTAR STUFFER
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[FRONT OF STUFFER]
[GRAPHIC: PHOTO OF BIN SHI]
BIN SHI
Portfolio Manager--China Region Opportunity Fund
The China
Region
Opportunity
Fund
ranked #1
for one-year performance out
of all Asia ex [GRAPHIC: U.S. GLOBAL INVESTORS LOGO]
Japan funds
as of 3/31/97
by Lipper
Analytical
Services.
[BACK OF STUFFER]
Growth in the China region has fueled a boom in the stock market. And the China
Region Opportunity Fund has outperformed all other China funds during this
unprecendented economic expansion.
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To participate in the world's most exciting market,
call 1-800-557-2297, ext. 199 today.
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Morningstar awarded the Fund five stars for one-year performance as of 3/31/97.
*****
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Fund Information
For more complete information about the Fund, including charges and expenses,
call 1-800-US-FUNDS or visit us on the Web at www.usfunds.com for a prospectus.
Read it carefully before you invest or send money. It details the special risks,
including political, currency and economic risks, of investing in emerging
markets.
Past performance is no guarantee of future results. Investment returns and
principal will fluctuate so that you may have a gain or loss when you sell
shares. Lipper Analytical Services ranked the Fund #1 out of 62 Asia ex Japan
funds for the 1-year period ended 3/31/97.
Morningstar uses a proprietary rating system to show historical, risk-adjusted
performance. These ratings may change monthly and are calculated from the funds'
one-, three-, five- and ten-year (when available) average annual returns in
excess of 90-day Treasury bill returns, with an appropriate adjustment for fees
and expenses and with a risk factor reflecting the funds' performance below
90-day T-bill returns. The one-year ranking is calculated using the same
methodology but is not a component of the overall ranking. Morningstar awards
five stars to funds in the top 10% of their category, four stars to funds in the
next 22.5%, three stars to the next 35%, two stars to the next 22.5% and one
star to funds in the bottom 10%. Morningstar awarded the Fund 5 and 2 stars out
of 939 and 478 international equity funds for the 1- and 3-year periods ended
3/31/97. CHI246
