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INVESTMENT MANAGEMENT, TRANSFER AGENT AND OTHER FEES
3 Months Ended
Sep. 30, 2015
Investment Management Transfer Agent And Other Fees [Abstract]  
Investment Management Transfer Agent And Other Fees [Text Block]
NOTE 4. INVESTMENT MANAGEMENT, TRANSFER AGENT AND OTHER FEES

The Company serves as investment adviser to U.S. Global Investors Funds (“USGIF” or the “Funds”) and receives a fee based on a specified percentage of net assets under management.  The Company recorded base advisory fees from USGIF totaling $885,000 and $1.9 million for the three months ended September 30, 2015 and 2014, respectively.

The advisory agreement for the equity funds within USGIF provides for a base advisory fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months. For the three months ended September 30, 2015 and 2014, the Company realized a decrease in its base advisory fee of $168,000 and $183,000, respectively.

The Company has agreed to contractually limit the expenses of the Near-Term Tax Free Fund through April 2016. The Company has voluntarily waived or reduced its fees and/or agreed to pay expenses on the remaining funds. These caps will continue on a voluntary basis at the Company’s discretion. The aggregate fees waived and expenses borne by the Company for USGIF for the three months ended September 30, 2015 and 2014, were $378,000 and $277,000, respectively.

Prior to the U.S. Government Securities Savings Fund conversion, the Company voluntarily agreed to waive fees and/or reimburse the Government Fund to the extent necessary to maintain the respective fund’s yield at a certain level as determined by the Company (“Minimum Yield”).  The Company may recapture any fees waived and/or expenses reimbursed to maintain the Minimum Yield within three years after the end of the fund’s fiscal year of such waiver and/or reimbursement. Thus, $510,000 of the waiver for the Government Fund is recoverable by the Company through December 31, 2015; and $498,000 through December 31, 2016.

USGIF pays the Company a distribution fee at an annual rate of 0.25 percent of the average daily net assets of the investor class of each of the equity funds.

The Company receives shareholder servicing fees from USGIF based on the value of assets held through broker-dealer platforms.

Effective in December 2013, administrative service fees paid to the Company by USGIF changed from an annual rate of 0.08 percent to 0.10 percent per investor class and from 0.06 percent to 0.08 percent per institutional class of each fund, based on average daily net assets, plus $10,000 per fund per year.  Effective November 1, 2014, the per fund fee changed to $7,000 per year.

As of September 30, 2015, the Company had $563,000 of receivables from USGIF included in the Consolidated Balance Sheets within “receivables.”

The Company also serves as investment adviser to an exchange traded fund (“ETF’) client, U. S. Global Jets ETF, that commenced operations in April 2015.  The Company receives a unitary management fee of 0.60 percent of average net assets and has agreed to bear all expenses of the ETF. The Company recorded ETF advisory fees totaling $70,000 for the three months ended September 30, 2015.

The Company provides advisory services for two offshore clients and received advisory fees based on the net asset values of the clients and performance fees, if any, based on the overall increase in net asset values. The Company recorded advisory and performance fees from these clients totaling $22,000 and $47,000 for the three months ended September 30, 2015 and 2014. Frank Holmes, CEO, serves as a director of the offshore clients.

Galileo provides advisory services for clients and receives advisory fees based on the net asset values of the clients. Galileo recorded advisory fees from these clients totaling $330,000 and $662,000 for the three months ended September 30, 2015 and 2014, respectively.