US GLOBAL INVESTORS FUNDS
497, 1997-06-16
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NEWS FLASH FROM CHINA

                                          [GRAPHIC:  U.S. GLOBAL INVESTORS LOGO]

FOR ONE-YEAR PERFORMANCE AS OF 3/31/97:

The CHINA REGION  OPPORTUNITY  FUND has earned Lipper's #1 ranking among Asia ex
Japan funds...

*****

 ...and a 5-star rating from Morningstar.

OUR FUND HAS BEEN FEATURED IN:
INVESTOR'S BUSINESS DAILY, MUTUAL FUNDS MAGAZINE, MUTUAL FUND INVESTING,  MONEY,
LOUIS RUKEYSER'S MUTUAL FUNDS, DONOGHUE,  NO-LOAD FUND INVESTOR & FABIAN PREMIUM
INVESTMENT  RESOURCE

[GRAPHIC:  PHOTO OF BIN SHI]

"The CHINA REGION  OPPORTUNITY  FUND invests  solely in the region with the most
long-term  growth potential of any part of the world. No economy has so bright a
future for growth and expansion."
                                                      BIN SHI, portfolio manager

CHINA REGION OPPORTUNITY FUND
          Investment Goal:    long-term capital appreciation
          Risk Profile:       Low                  *    High
          Sales Charge:       none
          Portfolio Manager:  Bin Shi, a native of Shanghai
          Investment Advisor: U.S. Global Investors, Inc.

WHY CHINA NOW?
China's  booming  economy  and  underdeveloped  capital  markets  provide a rare
opportunity  for investors.  Sweeping  change is creating a new, more capitalist
system as the  world's  largest  population  strives  to become as  wealthy  and
successful as the West.

Their burgeoning  demand for consumer goods has beckoned foreign  investors from
all parts of the  world.  And the  materials  and energy  required  to build the
massive  construction  projects underway in China are fuelling the global market
for natural resources.

As China is on the cusp of emerging  into global  economic  stature,  now is the
time to build a position in the CHINA REGION OPPORTUNITY FUND.

- --------------------------------------------------------------------------------
Take advantage of this opportunity NOW

Open a new account with a minimum of $1000 or Add to your existing  account with
$50 or more

Call 1-800-557-2297, ext 201
- --------------------------------------------------------------------------------

- ----------
Must be  accompanied  or preceded  by a current  prospectus.  Lipper  Analytical
Services  ranked  the Fund #1 out of 62 Asia ex  Japan  funds  for the  one-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.  Past  performance is no guarantee of
future results.  Investment returns and principal will fluctuate so you may have
a gain or loss when you sell shares.

 ................................................................................
[X]  YES!  I  need  to  learn  more  about  the  benefits  of the  China  Region
     Opportunity  Fund.  Please RUSH me a FREE  investment  guide and prospectus
     today.

                                          [GRAPHIC:  U.S. GLOBAL INVESTORS LOGO]

                                                     FOR IMMEDIATE RESPONSE CALL
                                                        1-800-557-2297, EXT. 202

[ ]  PLEASE ENCLOSE AN IRA INVESTMENT GUIDE.

Name...........................................................

Address........................................................

City, State, Zip Code..........................................

Daytime Phone..................................................           CHI260




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