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[GRAPHIC: U.S. GLOBAL LOGO]
May 1, 1997
Dear Shareholder,
Thank you and congratulations. We want to thank you for entrusting us to manage
your money. And we would like to congratulate you on the wise decision you have
made. Your investment has earned one of Morningstar's highest ratings for
performance in its peer group.
So have several of our other funds, as you can see below:
STOCK FUNDS 1 YR
U.S. All American Equity Fund *****
China Region Opportunity Fund *****
U.S. Real Estate Fund *****
U.S. Global Resources Fund ****
BOND FUNDS 1 YR 3 YRS 5 YRS
United Services Near-Term Tax Free Fund ***** ***** ****
U.S. Tax Free Fund ***** **** ****
At U.S. Global Investors, we strive to deliver consistent superior performance
to you. Our portfolio managers are compensated according to their demonstrated
ability to make money for you and as compared to their competitors on a
risk-adjusted basis. In every consecutive quarter in which they achieve
outstanding investment returns, their incentive bonuses are compounded. They
earn more when you earn more, because your success is what is most important.
If you do not already have an account in one of our other high-ranked funds, I
urge you to consider an investment today. Our U.S. Government Securities Savings
Fund, for example, is an excellent choice to add to your portfolio. With
Lipper's #1 ranking for consistent, superior five-year performance, it offers
the stability of U.S. government securities and the instant liquidity of free
checkwriting. This safe harbor is the ideal parking place to protect profits.
You can easily have any question about our funds answered by calling
1-800-US-FUNDS or 1-800-873-8637. Please call today so an Investor
Representative can tell you more about how our Morningstar top performers can
help you achieve your financial goals. We make it easy to open a new account, or
add to an existing one. Simply call 1-800-873-8637 to purchase fund shares by
telephone.
Sincerely yours,
/S/ FRANK E. HOLMES
Frank Holmes
Chairman & CEO
P.S. All of our funds are eligible for an IRS-approved IRA program. If you
transfer $10,000 or more to a U.S. Global Investors IRA, we will waive our
annual custodial fee for the life of your account. Call 1-800-873-8637 now
for a transfer form and instructions.
7900 Callaghan Road
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Mail Address:
P.O. Box 29467
San Antonio, Texas
78229-0467
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Tel 210-308-1234
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1-800-US-FUNDS
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Fax 210-308-1223
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email [email protected]
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LEGAL INFORMATION
For more information, including charges and expenses, call 1-800-US-FUNDS or
visit us on the Web at www.usfunds.com. Please read the prospectus carefully
before investing; 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 may fluctuate so that you may have a gain or loss when you sell
shares.
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.
Morningstar is a nationally recognized fund rating service which awards rankings
that reflect historical risk-adjusted performance. It 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%. A summary of rankings follows for the funds noted on the reverse.
<TABLE>
1 YR # FUNDS 3 YRS # FUNDS 5 YRS # FUNDS 10 YRS # FUNDS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. All American Equity Fund 5* 3048 4* 1919 3* 1076 1* 601
China Region Opportunity Fund 5* 939 2* 478 -- -- -- --
U.S. Real Estate Fund 5* 3048 3* 1919 1* 1076 -- --
U.S. Global Resources Fund 4* 3048 2* 1919 2* 1076 1* 601
United Services Near-Term Tax Free Fund 5* 1751 5* 1237 4* 601 -- --
U.S. Tax Free Fund 5* 1751 4* 1237 4* 601 3* 267
</TABLE>
