U.S. Global Investors

About This Presentation
Title:

U.S. Global Investors

Description:

* Thank you! Please visit us at: Facebook: www.facebook.com/usfunds Twitter: www.twitter.com/usfunds Frank Talk: www.usfunds.com Advisor Alert: www.usfunds.com ... – PowerPoint PPT presentation

Number of Views:7
Avg rating:3.0/5.0

less

Transcript and Presenter's Notes

Title: U.S. Global Investors


1
(No Transcript)
2
U.S. Global Investors
  • People
  • Publicly traded (NASDAQ GROW)
  • Based in San Antonio, TX
  • Established 1968
  • Experienced Portfolio Management Teams with Both
    Academic and Tacit Knowledge
  • Specialists in Natural Resources, Hard Assets and
    Emerging Markets
  • Process
  • Top-Down and Bottom-Up Fundamental Analysis
  • Fundamental and Technical Analysis of Country,
    Sector and Currency Trends
  • Stock Screens and Valuations
  • Quantitative Risk Management

3
Investment Professionals
  • Jack Dzierwa
  • - Joined U.S. Global Investors as global
    strategist and portfolio manager in 2007
  • - Performs analysis of individual companies and
    macro-theme development in both the developed
    and emerging markets
  • Fluent in 5 languages
  • Earned an MBA at the University of Chicago and
    BSc from the London School of Economics

4
Investment Models
  • Dynamic models
  • Directional, responsive and designed to quickly
    generate meaningful discussions and courses of
    action
  • Probability based
  • Our models include statistical price action and
    probability analysis
  • Matrix of Models
  • We have created a matrix of connected models that
    analyzes the inter-market relationship

5
Government Policy Model Precursor for Change
6
E7 and G7 Population vs GDP Inverse
Relationship
7
E7 Countries
8
G7 Countries
9
Monetary Policy
10
Monetary Policy
11
Demographics is the Key
  • Half of the global population (gt3 billion) is
    estimated to live in urban areas
  • Projected urban population is larger than the
    entire world population in 1965

Deng Xiaoping
12
Total Projected Cumulative Infrastructure
Spending 2005-2030 41 Trillion
Source Booz Allen Hamilton, Global
Infrastructure Partners, World Energy Outlook,
Organisation for Economic Co-operation and
Development (OECD). Boeing, Drewry Shipping
Consultants, U.S. Department of Transportation
13
China Dominates Asia ex-Japans Infrastructure
Spending
Morgan Stanley estimates infrastructure spending
in Asia ex-Japan will reach US3.1 trillion over
the next five years (2008-12E), about 6.2 of
GDP. By comparison, annual spending in the US was
just 1.7-2 of GDP over the past 10 years.
E MS estimates Source CEIC, Morgan Stanley
Research
14
25-30m People a Year Urbanizing in India and
China from 2000-20
15
Chinas Electricity Growth
China added the equivalent capacity of the
entire U.K. power grid in 2005-2007
16
The Three Pillars of Growth
Source CEIC
17
Oil Consumption Infrastructure Driver?
18
Uneven Growth in Infrastructure Spending
  • China projected for 36.5 Year-over-Year growth
    in infrastructure spending in 2009, but is
    moderating into 2010

19
Macro Trend-Tailwind for Infrastructure Spending
Shanghai, China
Source PIRA
20
Gulf Countries Oil Revenue
But the coming oil windfall will likely dwarf
anything we have seen yet. At an oil price of 70
per barrel, new research by the McKinsey Global
Institute finds that Gulf oil export revenues
will likely add up to 6.2 trillion over the next
14 yearsmore than triple the amount they earned
over the past 14 years. At 100 oil, this will
rise to almost 9 trillion.
Based on spot prices. Realized prices may vary
by producer Assumes 50 barrel of oil
Bahrain has negligible net oil supply, but does
get allocated reserves from Saudi Arabias Abu
Saafa offshore field and also purchases
discounted oil from Saudi Arabias Dammam field.
Source Bp World Energy Report Global Insight
Business Monitor International McKinsey Global
Institute Energy Demand Model McKinsey Global
Institute Capital Flows Database McKinsey Global
Institute Analysis
21
Global Shift Due to CommoditiesGovernment Wealth
Accounts
Source SWF Institute, International Monetary
Fund, TheAsset.com
22
China Is Redefining Urbanization Scale
  • From 2005-25, Chinese cities will add more than
    350 million people
  • There will be more than 200 Chinese cities with
    more than 1m inhabitants
  • There will be up to 50,000 new skyscrapers
  • There could be up to 170 new mass transit
    systems
  • By 2025, two-thirds of Chinas citizens will live
    in cities
  • the population of the entire United States
  • in Europe today there are only 35 cities of
    that size
  • the equivalent of building ten New Yorks
  • in Europe today there are about 70
  • thats nearly 1 billion people

Source McKinsey, September 2008
23
Auto Sales, BRIC vs U.S.
BRIC Brazil, Russia, India and China
24
Future Traffic Growth
  • China has just over 50 million automobiles,
    against a population of 1.3 billion.
  • U.S. has a population of 300 million, with 248
    million automobiles.
  • Chinas total car ownership would rise to 590
    million if per capita rates rise to U.S. levels
  • Source Wall Street Journal

25
Car Ownership Likely to Rise in Asia . . .
  • Less than 5 of the population has a car in
    China versus a 74 penetration in the U.S.
  • Much lower penetration in India with lower per
    capita income
  • Car penetration shoots up as per capita income
    crosses US3,000

26
Generally Comfortable Public Debt Levels
  • Japans public debt at around 200 of GDP
  • India at 80 and the Philippines at 65 may be
    constrained
  • Chinas public debt is low and enjoys high
    national savings

27
Asias Regional Stimulus
  • In the next five years, there will be 2.5
    trillion infrastructure spending for Asia
    ex-Japan (a 15 CAGR)
  • The global downturn impacts current
    infrastructure needs, e.g., power generation and
    ports
  • Longer-term needs remain, e.g., road, rail,
    green energy

28
Transport Dominates Infrastructure Plans
  • Roads and rail comprise almost half of the
    regions infrastructure spending
  • Power, together with utilities, account for 35
    of estimated infrastructure spending
  • Composition varies by country, e.g., China is
    investing more on rail than roads, but India the
    opposite

Source CLSA Asia-Pacific Markets
29
High speed rail network planned and operating
30
Geographical distribution of airports
31
Long-Term Power Demand Likely to Grow
  • Chinas per capita power consumption is only 16
    that of the U.S.
  • Indias is only 4 of per capita U.S.
    consumption
  • As per capita income rises, power consumption
    is likely to grow

32
India Proposed Ultra Mega Power Projects
33
Global MegaTrends Fund MEGAX
FUND STRATEGY Infrastructure Picks and Shovels
  • The fund seeks to invest in companies that are
    positioned to grow by providing capital goods,
    basic materials, professional services or other
    key inputs to facilitate the design,
    construction, maintenance, financing, or
    servicing of global infrastructure properties.
  • In addition to this focus on investments in
    infrastructure, the fund seeks to invest in
    companies that meet suitable measures of return
    on cash flow, growth in revenue, earnings growth
    and return on equity.
  • There is no constraint upon the market
    capitalizations that the fund management will
    consider.
  • Fund management characterizes its strategy as a
    picks and shovels approach not only investing
    in the underlying infrastructure asset itself,
    but also investing in the companies that help to
    build it or to service it.

34
Thank you! Please visit us at
Facebook www.facebook.com/usfunds Twitter
www.twitter.com/usfunds Frank Talk
www.usfunds.com Advisor Alert
www.usfunds.com/advisors
35
Disclosures
Please consider carefully the funds investment
objectives, risks, charges and expenses. For this
and other important information, obtain a fund
prospectus by visiting www.usfunds.com or by
calling 1-800-US-FUNDS (1-800-873-8637). Read it
carefully before investing. Distributed by U.S.
Global Brokerage, Inc. All opinions expressed
and data provided are subject to change without
notice. Some of these opinions may not be
appropriate to every investor. Foreign and
emerging market investing involves special risks
such as currency fluctuation and less public
disclosure, as well as economic and political
risk. Holdings in the Global MegaTrends Fund
(MEGAX) as of 9/30/09 Rio Tinto (0).
Write a Comment
User Comments (0)