U S GLOBAL INVESTORS INC Q2 FY2025 earnings call

• Volatility Discussion: Explained the DNA of volatility for various asset classes, noting gold and the S&P 500 now have similar daily and 10-day volatility. GROW's volatility over 10 days is less than the Dow Jones Asset Managers Index due to total shareholder yield.
• Strategy and Tactics: Focus on smart beta 2.0 thematic products with rigorous back-testing and ongoing data analysis. The strategy aims to create sustainable thematic products.
• Buyback Program: The company believes the stock is undervalued and repurchased shares on flat or down days, with 236,731 Class A shares bought in the quarter.
• JETS Performance: JETS ETF grew from $40 million to $4 billion in assets, outperformed the market airline index and S&P 500, with strong bookings and high revenue growth expected for the next year.
• WAR ETF Launch: The aerospace and defense ETF (WAR) launched in December 2024, focusing on semiconductors, aerospace, data centers, cybersecurity, and homeland security.
• Dividend Growth: Share price $2.45 gives a 3.67% yield, with total shareholder yield attractive due to buybacks and no debt.
• Global Expansion: Expanded footprint in Latin America, with tourism to Latin America expected to increase as the dollar strengthens.

For the 3 months ended December 31, 2024, average assets under management were $1.5 billion. Operating revenues were $2.2 million, with a net loss of $86,000. The company repurchased 236,731 Class A shares using approximately $587,000 in cash. JETS ETF was a key segment, with its assets under management affecting revenues. Gold and other segments also contributed, with JETS being a major revenue contributor due to its growth and performance.

• Continues to buy back stock on flat or down days using an algorithm.
• Expects growth in Latin American tourism due to a strong dollar.
• Sees potential in WAR ETF as a secular trend with increasing global defense spending and AI applications in defense.
• Confident in smart beta 2.0 strategy's ability to outperform indices over time.

• Volatility in asset classes can materially affect financial results.
• Regulatory risks related to managing mutual funds and ETFs under complex regulations.
• Market sentiment can impact JETS ETF assets under management.
• Geopolitical risks, such as China's predatory practices and actions in regions like Latin America and Asia, can affect investments.