U.S. GLOBAL INVESTORS FUNDS
JUNE 15, 1999, SUPPLEMENT TO THE
PROSPECTUS DATED NOVEMBER 3, 1998
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DELETE the following paragraphs regarding portfolio managers of the funds:
PAGE 19 -- Third and fourth paragraphs regarding portfolio managers of the
Gold Shares, World Gold, and Global Resources Funds (1)
PAGE 21 -- First and third paragraphs regarding the portfolio manager of
the China Region Opportunity and All American Equity Funds (1)
PAGE 22 -- Last paragraph regarding the portfolio manager of the Income
Fund (1)
PAGE 23 -- Last paragraph regarding the portfolio manager of the Tax Free
and the Near-Term Tax Free Funds (2)
PAGE 25 -- Last paragraph regarding the portfolio manager of the U.S.
Treasury Securities Cash Fund and the U.S. Government Securities
Savings Fund (2)
SUBSTITUTE the paragraph footnoted below:
(1)The Adviser uses a team approach to manage the assets of the fund(s). The
management team meets weekly to review macroeconomic factors and daily to
review portfolio holdings and discuss buy and sell activity. The team employs
modeling techniques to determine industry weightings for the fund(s) and to
screen specific stocks. Investment decisions for the fund(s) are made by the
team, and no single person has final responsibility for these decisions.
(2)The Adviser uses a team approach to manage the assets of the funds. The
management team meets weekly to review macroeconomic factors and daily to
review portfolio holdings and discuss buy and sell activity. The team employs
modeling techniques to determine industry weightings for the funds and to
screen specific debt securities. Investment decisions for the funds are made
by the team, and no single person has final responsibility for these
decisions.
PAGE 27 -- DELETE THE FIRST PARAGRAPH
The World Gold Fund, Gold Shares Fund, and Global Resources Fund have changed
their classification under the Investment Company Act of 1940 from
"diversified" to "nondiversified." In addition, each fund has eliminated all
restrictions that limit the extent to which it may invest in the securities of a
single issuer, subject to certain limitations of the Internal Revenue Code.
The Adviser believes that, over the long term, it can maximize growth of capital
by employing a flexible strategy to outperform an appropriate benchmark industry
index.
These changes, which the shareholders approved, allow the funds more flexibility
to concentrate assets in more liquid securities when market conditions warrant.
Each fund may, therefore, invest in a smaller number of issuers than previously
permitted, which could result in greater volatility in the funds' total return
or asset valuation.
The funds still intend to qualify as registered investment companies for Federal
income tax purposes, which could limit the extent to which the funds can pursue
a nondiversified investment strategy.
