U.S. GLOBAL INVESTORS FUNDS
JULY 1, 1998, SUPPLEMENT TO THE
PROSPECTUS DATED NOVEMBER 3, 1997
(incorporates the supplement dated May 1, 1998)
GOLD AND NATURAL RESOURCES FUNDS EQUITY FUNDS
Gold Shares Fund * China Region Opportunity
Fund
World Gold Fund * All American Equity Fund *
Global Resources Fund * Income Fund *
Real Estate Fund *
<PAGE>
TAX-FREE FUNDS GOVERNMENT SECURITIES
MONEY MARKET FUNDS
Tax-Free Fund * U.S. Government Securities
Savings Fund
Near-Term Tax-Free Fund * U.S. Treasury Securities
Cash Fund
* The names of these funds have been changed to delete "U.S." and "United
Services" throughout this prospectus.
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PAGE 19--PORTFOLIO MANAGER
Delete the two paragraphs on page 19 regarding the portfolio managers of the
World Gold, Gold Shares, and Global Resources Funds and replace with the
following:
Gil Atzmon is a gold stock analyst and leader of the portfolio team
managing the World Gold and Gold Shares Funds. Mr. Atzmon, portfolio
manager for the World Gold and Global Resources Funds from 1987 to
1990, rejoined the company in June 1998. From 1990 to 1993 he was vice
president of investor relations for Dayton Mining Corporation where he
raised $50 million in equity. From 1993 to 1998 he ran his own
consulting and management firm advising money managers on investment
decisions and strategies and mining companies on financing and
corporate development. Mr. Atzmon holds a master's degree in energy
and mineral resources from The University of Texas and a bachelor's
degree in geology and geography from Columbia University. Team member,
Michael Chapman, joined the adviser as a senior research analyst in
November 1995. From 1992 to 1995 he was a petroleum engineer and
earned his master's degree in energy and mineral resources.
Ralph Aldis leads the portfolio team managing the Global Resources
Fund. Mr. Aldis, a Chartered Financial Analyst, holds a master's
degree in energy and mineral resources. He has been the adviser's
director of research since April 1989 and has served as portfolio
manager of the Global Resources Fund since November 1992.
PAGE 21--PORTFOLIO MANAGER
Delete the last paragraph on page 21 describing the portfolio manager of the
U.S. Real Estate Fund and replace with the following:
The adviser has contracted with Goodman & Company N.Y. Ltd. to serve
as sub- adviser to the U.S. Real Estate Fund beginning May 1, 1998. It
is wholly owned by Goodman & Company Ltd., which is ultimately wholly
owned by Dundee Bancorp Inc., an Ontario incorporated Canadian company
listed on The Toronto Stock Exchange. Mr. Ned Goodman, Chairman of
Goodman & Company Ltd., is the "controlling person" of Goodman &
Company N.Y. Ltd. and Goodman & Company Ltd. ("Goodman & Company").
Goodman & Company is the manager of Dynamic Mutual Funds, a Canadian
family of twenty-six mutual funds with approximately $6.5 billion
(Cdn) of funds under management, more than $500 million of which is in
two real estate equity funds. Goodman & Company uses a team approach
to manage the U.S. Real Estate Fund. Mr. Goodman and Ms. Anne MacLean
lead the team. Mr. Goodman, Chartered Financial Analyst, has more than
thirty years of investment experience. Since 1979, Mr. Goodman has
served as Chairman, President and Chief Executive Officer of Goodman &
Company, an adviser to investment companies operating in Canada. Ms.
MacLean, Chartered Financial Analyst, is a Goodman & Company portfolio
manager and partner responsible for U.S., Latin American and real
estate equities. Before joining Goodman & Company in January 1995, Ms.
MacLean had twelve years of investment experience as a portfolio
manager with Gluskin Sheff & Associates and as an Investment Analyst
with United Bond and Share Company.
PAGE 35--Add the following subheading and paragraph:
ADDITIONAL INFORMATION ABOUT BUYING SHARES
Requests to open new accounts are complete only when Shareholder
Services has received both your application and payment. The funds
reserve the right to reject any application or investment. A completed
request is subject to acceptance and the time deadlines described in
"Execution of Requests" on page 40 and other factors.
PAGE 46--FOR MORE INFORMATION
After INVESTMENT ADVISER, insert:
SUB-ADVISER Goodman & Company N.Y. Ltd.
55th Floor, Scotia Plaza
40 King Street West
Toronto, Ontario M5H 4A9
CANADA
