SPECIAL NEWS FOR TAX WISE MONEY READERS
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DISCOVER THE SAFE,
HIGHER YIELDING,
TAX-ADVANTAGED
SOLUTION FOR YOUR SAVINGS
Don't miss this opportunity to earn more. (Graphics: Picture
Put the U.S. Government Securities Savings Fund to of Frank Holmes)
work for you.
Dear Investor,
Do you want to MAKE MORE MONEY, PROTECT YOUR INVESTMENT CAPITAL and HAVE INSTANT
ACCESS to your cash?
For a high yield in a safe haven, look to the U.S. GOVERNMENT SECURITIES SAVINGS
FUND. It's a winning combination of CONSISTENT SUPERIOR PERFORMANCE, SAFETY AND
CONVENIENCE which has made our Fund the best government money market fund over
the last five years. It offers one of the highest money fund yields in the
nation.
The Fund has a "safety first" investment philosophy dedicated to providing
higher yields without jeopardizing safety. It invests in securities issued by
America's credit-worthy government agencies. By holding obligations of the
Federal Home Loan Bank, the Student Loan Marketing Association and the Federal
Farm Credit Bank, you are investing in America. You can feel good about your
investment because these agencies make loans to students for their education, to
first-time homeowners to buy a house, and to farmers who feed the American
economy. (continued inside)
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NOW EARN MORE
5.43% 7-day effective yield
as of 6/30/97
5.29% 7-day current yield
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HOW YOU BENEFIT:
(X) You earn one of the highest yields in the nation.
(X) You can count on the superior safety of U.S. government and
agency securities.
(X) You earn daily dividend income free of state taxes.
(X) Your yield is higher because we guarantee low expenses.
(X) Your money is instantly accessible with free checkwriting
and telephone redemption privileges.
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NO STATE TAXES
As an added bonus, these government securities are exempt from state taxes. So,
the income you earn from your investment in the U.S. Government Securities
Savings Fund will be exempt from state and local income taxes. You will
effectively earn more, since your returns won't be reduced by your state's tax
bite.
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DO YOU PAY STATE INCOME TAXES? WOULD YOU LIKE A TAX BREAK?
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(GRAPHICS: PICTURE OF THE UNITED STATES)
All states in color have state income taxes. If you live in one
of these states, you will earn a higher after-tax yield in the
U.S. government Securities Savings Fund because dividend income
will be exempt from state and local taxes.
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TAX-EQUIVALENT YIELDS FOR SELECTED AREAS
If the fund earns:
City/State Highest 4.00% 5.00% 6.00%
Marginal Tax Rate: Your state-tax equivalent
yield would be
Massachusetts 12.00% 4.55% 5.68% 6.82%
New York - City & State 11.275% 4.51% 5.64% 6.75%
California 11.00% 4.49% 5.62% 6.74%
New York State 7.875% 4.34% 5.43% 6.51%
The above tax rates are applicable only to certain tax brackets.
Your rate may vary depending on your state laws and personal income
levels. For an exact tax equivalent yield consult your tax advisor.
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MORE BENEFITS
You will always have instant access to your money, as well as many other
shareholder benefits, including free checkwriting, 24- hour toll-free automated
account access, convenient direct deposit and unlimited telephone exchanges.
<PAGE>
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GUARANTEED
LOW EXPENSES
To demonstrate our commitment to high yields, U.S. Global Investors guarantees
the U.S. Government Securities Savings Fund's total fund operating expenses (as
a percentage of net assets) will not exceed 0.40% at least until June 30, 1998.
Guaranteed.
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CONSISTENT SUPERIOR (graphics: picture of a Lipper
PERFORMANCE Performance Certificate)
The U.S. Government Securities Savings Fund ranks among the top U.S. government
money market funds for the past five years.
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FEATURED IN: * Adrian Day's Investment Analyst * The MoneyLetter
* Jay Schabacker's Mutual Fund Investing * Money Market Insight
* Money magazine * The Money Fund Letter
* Personal Finance
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Don't settle for less. Start earning more today. To receive a free fund guide,
simply return the coupon below. Or for immediate service, please call
1-800-557-2297 ext. 220. An investor representative is waiting to answer your
questions.
Sincerely,
/S/Frank Holmes
Frank Holmes
Chairman & CEO
P.S. The U.S. Government Securities Savings Funds makes an ideal
safe investment for your IRA. If you transfer $10,000 or more to
an IRA account in the Fund, we will waive the annual custodial
fee for the life of your account. Please call 1-800-557-2297 ext.
220 today for a free IRA investment guide and fund prospectus.
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(company logo)
(x) Yes, please rush me a FREE investment guide and application to
earn more in the U.S. Government Securities Savings Fund.
(X) Please enclose an IRA investment guide.
________________________________________________________________________________
Name
________________________________________________________________________________
Street Address
________________________________________________________________________________
City State Zip Code
________________________________________________________________________________
Telephone E-mail Address TWI363
<PAGE>
(page 4)
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Is the
Stock Market
making you
NERVOUS?
When you're ready to take partial profits and
need a safe haven, make sure your assets keep
growing. The U.S. Government Securities Savings
Fund provides a consistently higher yield and
instant liquidity. The funds invests 100% in U.S.
Government securities for added safety. And the
Fund consistently ranks among the highest yielding
government money market funds according to Lipper
Analytical Services.
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(company logo) U.S. Global Investors is an acclaimed mutual fund management
company founded in 1968 and based in San Antonio, Texas. Today
we manage $1.5 billion in more than 120,000 shareholder accounts.
________________________________________________________________________________
The U.S. Government Securities Savings Fund was ranked #1 out of 78 government
money market funds by Lipper Analytical Services for the five year period ending
12/31/96. Lipper Analytical Services ranked the U.S. Government Securities
Savings Fund #5 and #2 for the one- and five-year periods ended 6/30/97 out of
114 and 82 government money market funds, respectively. Like all other mutual
funds, Fund shares are not backed by the U.S. Government or its agencies;
however, the securities it invests in are. The Fund's Advisor has guaranteed
total fund operating expenses (as a percentage of net assets) will not exceed
0.40% until 6/30/98, or until such later date as the Advisor determines. The
Fund's Advisor subsidized certain Fund expenses, enhancing the yield. The Fund
is managed to maintain a stable $1 per share value; however, there is no
assurance it will be able to do so. For a free prospectus containing more
complete information, including charges and expenses, call 1-800-US-FUNDS.
Please read the prospectus carefully before investing. Past performance is no
guarantee of future results. TWI363
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(front of postcard)
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NO POSTAGE
NECESSARY IF MAILED
IN THE UNITED STATES
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BUSINESS REPLY MAIL
FIRST-CLASS MAIL PERMIT NO. 394 SAN ANTONIO TX
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POSTAGE WILL BE PAID BY ADDRESSEE
U.S. GLOBAL INVESTORS
PO BOX 781234
SAN ANTONIO TX 78278-9971
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