Good morning. Thank you for joining us today for our webcast announcing U.S. Global Investors’ Results for the Second Quarter of Fiscal 2016. I’m Lisa Aston. If you have any questions during the webcast, you can enter them in the questions area of the control panel’s sidebar, which is normally to the right of your screen. Also, you may download a PDF of today’s slides by clicking on the red handout button. The presenters for today’s program are Frank Holmes, U.S. Global Investors’ CEO and Chief Investment Officer; Susan McGee, President and General Counsel; and Lisa Callicotte, Chief Financial Officer. During this webcast, we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don’t pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and corresponding Form 10-Q filings for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today and U.S. Global Investors accept no obligation to update them in the future. Now let’s go to Frank Holmes, CEO and CIO for an overview of the period. Frank?

Thank you Lisa. Good morning everyone. I’m going to stress as quickly as possible into go through the slides as you can see the U.S. Global is an innovative investment management vast experience in global markets and specialized sectors, which have been really truly challenged emerging markets and resources since September of 2011 and I’m going to explain more of that for this presentation. We were founded as an investment company, the company became registered investment adviser in 1968 and has a long-standing history of global investing and launching first of their kind investment products. It was the first no-load gold fund. U.S. Global Investors is well known for its expertise in gold and precious metals, natural resources and emerging markets. We've become as in next slide will show you the Go-to stock for exposure to emerging markets and resources. Gold has bounced off its low's and so has GROW. Debt-free strong balance sheet with a reflexive cost structure which both Lisa and myself will – Lisa Callicotte will talk about later in this presentation. Monthly dividend and return on equity discipline continues. It's been challenging and I'll try to discuss at more detail but we continue to try to as quickly as possible respond to the shifts in capital markets. And then I’d like to point out and thank all of our top institutional investors like FIM Group, TheRoyceFunds, we see the Newberg Family Trust has just recently come in and The Vanguard Group and the Sentry Investment Management out of Canada. The next visual is dividends, it has consistently paid dividends for eight years. The current share price was $1.17 as of the end of the year. That was a 2.56%. Now the stock has rallied as a mentioned earlier off its lows because gold has rallied. We’ve…

I guess we had a proxy in the fall in a shareholder meeting of this fund on December 9 and we’re proposing a new slate of trustees for the funds. And there's new trustees were approved and the proxy on December 9. The funds now will receive their corporate governance services from Atlantic Fund Services and a slate of the trustees that are serving for one of their Series Trust. Eventually, the funds over time will move their administrative and fund accounting services and their transfer agency services over to Atlantic Fund Services. This transition will be over the next two years. And with this transition, the funds will be able to realize operational economies of scale that we were just not able to obtain operating in our previous structure. With these economies of scale, it will be a positive impact on U.S. Global Investors’ future net income because the fund expenses are lower than expense reimbursements for those funds that have expense caps, will be lower.

It will impact our revenue, correct, but it should and expand our profit margin.

That is correct. That is what we are projecting. Cost will decrease because we did have personnel reductions at the end of 2015 because we did outsource some of these job functions to Atlantic Fund Services. The remaining functions that will be here at U.S. Global Investors will be investment management and marketing and sales, which we believe are our core competencies and which will lead to the future growth here at the company.

Thank you. And the next visual, Susan?

Atlantic Fund Services is based in Portland, Maine. They are a full-service global provider of a – provides services to mutual funds, separate accounts, closed-end funds, various different forms of products and we're looking forward to our partnership with them.

Thank you. So on our current product line up, it’s all – which as you can see gold and precious metals, natural resources, China, one of the real drags that impacting our financials was poor fund performance and whenever we have a rolling 12 months poor fund performance, we have to get back to the trust and only rightfully saw. And then same time when we outperform by 5%, we’re able to enjoy additional cash flow. We have made changes in the portfolio managers to – in addition to our processes and relate to shares at the funds there. They’ve done substantial – I’m so proud of how the team has adapted and adjusted. So it's not such a drag on what we're doing as a company, building for future growth, 65% ownership in Galileo, advisors a Canadian asset management company. I mentioned earlier at the beginning of the presentation, similar challenges because the Canada is known as a resource country and I will show you that visual in a few minutes, but it’s really important to realize that Canadian dollars will come off and that’s impacted the investments. And then Canadian dollar is highly correlated to the price of oil. And then earnings valuable, brand awareness in over 1,700 countries were publishing of our financial commentary and other original content. And being a global trotter, I mean, sometimes I don’t know time zone, I wake up and flying to Chile, I mean to Peru and then from Peru over to Melbourne and then Melbourne to London to give keynote speeches and also gather insight local reconnaissance. What really impressed me in this last trip was more turn out and I'll share – discuss that in a few minutes. But we're continuing to develop the innovative and dynamic ETF products…

Thank you, Frank. Good morning. I would like to summarize our results of operations for the quarter ended December 31, 2015. So on Page 39, you will notice a change in our financial statement presentation. In December 2015, U.S. Global Investors Funds elected a new slate of trustees to the Board of Trustees in the funds. And as anticipated, effective December 10, 2015, the company through its wholly-owned so severe, U.S. Global Brokerage, Inc. ceased to be the distributor of USGIF and no longer received distribution fees and shareholders fees from USGIF, but the company also no longer is responsible for paying platform fees for the USGIF equity funds and will be reimbursed from certain destruction expenses from the new distributor. Net loss, assets, and liabilities related to the distribution of USGIF are included in discontinued operation. And as discussed earlier, this transition that was endorsed by the company will reduce the cost of the funds which will have a positive effect on the company's financial segment results and allow the company to concentrate on asset management and marketing. Now to the numbers. We recorded total operating revenues of $1.3 million for the quarter. This was 31% decrease from the $1.9 million we reported the same quarter last year. The decrease was primarily due to decrease in assets under management and was somewhat offset by the addition of the ETF advisory fees related to our first ETF launched in April 2015. Moving on to the next page, operating expenses for the quarter were $3.2 million, a increase of $510,000 or 19%, primarily for the following reasons: employee compensation and benefits increased 296,000 or 21%, primarily as a result of severance cost paid due to the reduction of workforce. General and administrative expenses increased $292,000 or 30%, due to cost related…

Thank you, Lisa. While, commodities and emerging markets have been on a bear market, our sales team and marketing efforts have continued to focus on one of our longstanding top performers, our Near-Term Tax Free Fund, or NEARX is the ticker symbol, and also our newest product, the U.S. Global Jets ETF, which is the only airline ETF out on the market today. As Frank mentioned earlier, we've benefited from a successful product launch of our first ETF and Jeff has received extensive financial media coverage and interest from the investment community. It now has an eight-month track record and it was named one of the most popular new ETFs launched this year by ETF Trend. By quarter end at December, the ETF had reached $52 million in assets and had a robust daily trading volume. We were very pleased with that success. JETS utilizes a dynamic rules based index strategy and it provides investors with a diversified exposure to the global airline industry. As Lisa and Frank have mentioned, we anticipate that we will be launching additional smart beta ETF products in 2016. As investors continue to worry about the volatile stock market and the future of interest rates, our Near-Term Tax Free Fund continues to provide investors a calming solution with its consistent positive performance and tax free income. We're proud that NEARX is one of only 39 equity and bond mutual funds out of more than 31,000 that has delivered consecutive, positive annual returns for the past 21 years. When investors compare NEARX against the S&P 500, over the past 15 years, you can see the fund's history of no drama. NEARX has earned a MorningStar four-star rating for overall performance in the Municipal National Short-Term Funds Category. And our Gold and Precious Metals fund has earned…

Thank you, Susan and thank you Lisa. I think what's important and why I do this is because GROW gives you much more leverage than any emerging market ETF, because we've shown this before in rising emerging markets. We've also shown in rising gold markets the responsiveness that we have in the following. So understanding the underlying commodities has a collateral impact on the underlying securities in the underlying countries. And that in turn affects my asset management fees. If the funds themselves just rise, there's no fund flows, we automatically earn more management fees. If we have star-winning funds and the particular category is rising, like we experienced from 2001 to 2011, we experienced not only a great fund performance but those sectors were rising. So our funds were rising up nearly the management fee and then at the same time the overall stock picking showed that we were able to attract more assets, particularly through the platforms and that is so important for investors to recognize what makes us as a company. And then that whole world trying to be informative internally for our portfolio managers is to be able to brace the factors that we try to use to look forward with. In Global PMI, I mentioned earlier, this is just some of the evidence of showing to you what happens when PMI is positive versus what happens when PMI is negative. So when Global PMI which we wrote about a year ago, the one month is above the three months, there is a high probability based on percentage to turns of looking back over 20 years of data of oil rising, copper rising, as of the energy material stocks rising. Vice versa, if you have one below the three months, then there's a high probability of…

Great, so, now we’ll take some questions. And again, you can answer them in the questions area of the control panel. We do already have a question. This one will be for Lisa Callicotte. And questions that our investors are asking is since you have broken out, discontinued operations, is the operating income what the company projects as income in the future?

No. Actually the only cost included in discontinued operations, are those related to actually disturbing the USGIF funds. There are several one-time costs that are included in continuing operations that aren't related to the distribution of the USGIF. So these include costs related to the transition, which we talked about, which is about $290,000, but there's also severance cost due to the reduction of workforce and because we have reduced the workforce, we saw the number of employees kind of go down significantly. We won't have those costs also kind of going forward. So, we are expecting further reductions in costs.

Thank you.

This is substantive from the previous quarter…

Yes.

We’re going to year-end, what those losses were. And has the revenue changed per employee, when we take a look at the number of employees we have based on less assets.

It has and it has increased slightly and even though our revenue is going down, our number of employees are going down too.

And we do have another question, this one is for Frank. It's evident that you've been working on reducing expenses and clearly revenue needs to increase, what are the market conditions that will be needed to increased revenue?

Well, I think the biggest – most significant product we have, Susan highlighted and showed you earlier, Near-Term Fund. I mean it's just remarkable. And I have no idea how Morningstar goes from four to five stars and gold shares is the best-of-breed for four stars, extremely volatile. But Near-Term has got 21 years of positive fund performance and no down year. And it is an elite. I think the data point that’s easier to go out and make it to the Olympics than is to get 21 years of fund performance. I mean we're shooting the stars, shooting the three points better than Stephen Curry is. It's just really incredible in that end of it, but nevertheless, that's probably the strongest fund which is five star for three years, and it continues like this year the market was up 17%, it's up 1%. So it's a continuous success, it's for us. And the marketing strategy is to focus on selling that particular fund. But if you go on the platforms, the biggest challenge, if you want to go on and swap platform, we got to pay them 45 basis points. So, now, you're left with five. This is 45 basis points [indiscernible]. So you need gazillion dollars of 5 basis points to breakeven in that mutual fund arena. It's just too expensive. So what we have to do is basically take a page from dimensional funds and they're on platforms, but you have to pay a commission and it's worthwhile because of this fund has just great stability, high yield, and consistent performance. And in this uncertain time and volatile time, it's positioning and became an awareness of this. But we've been known for resources in emerging markets more so and it's basically positioning U.S. Global is having very…

Thank you. This concludes U.S. Global Investors’ webcast for the second quarter 2016. This presentation will be available for replay on our website at www.usfunds.com. Thank you all for your participation today.

Thank you.