Good morning and thank you for joining us today for our webcast announcing us U.S. Global Investors results for the Third Quarter of Fiscal Year 2019. I'm Holly Schoenfeldt. If you have any questions during the webcast, you can enter them into the questions area of the control panel sidebar, which is normally to the right of your screen. Also, you can 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, Lisa Callicotte, Chief Financial Officer and myself Holly Schoenfeldt, Marketing and Public Relations Manager. 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 10Q filing for more detail on factors that could cause actual results to differ materially from any described today and forward looking statements. Any such statements are made as of today and U.S. Global Investors except no obligation to update them in the future. And on slide four very briefly about U.S. Global. U.S. Global Investors is an innovative Investment Manager with vast experience in global markets and specialized sectors. It was founded as an investment club and the company became a registered investment advisor in 1968 and has a long standing history of global investing and launching first of their kind investment products, including the first no load gold fund. U.S. Global is well known for expertise in gold and precious metals, natural resources and emerging markets. With that, I'm going to move to slide five and go to Frank Holmes, CEO and CIO for an overview of the period. Frank.

Thank you, Holly. It's interesting because we did start as an investment club with the military and the Founder, Colonel Clark Aylsworth, he wasa Air Force pilot, startup this idea and he was the first to go into no load gold investing when the yields were like 14% in the 70s. It was really started in 1968 but it really grew into a mutual fund. And it was probably it was prior to leading USAA setting up their mutual funds. And so I think an interesting history and USAA is just up the street from our head office at Callahan, San Antonio. But what are our strengths were the go to stock for exposure in emerging markets, resources, gold and now has become digital currencies and I think it will also pivot into artificial intelligence with our significant investment and gold spot. We're debt free. We have a strong balance sheet with a reflexive cost structure. And we'll talk more about that and then the monthly dividend return on equity discipline. Next please, we want to thank all of our institutional investors that have stayed with us that have come and gone and it's interesting to see but some of them are very, very astute and how they have used U.S. Global as a proxy for gold and the proxy for other unique investments. So I like to thank The Royce Funds, The Financial Investment Management Group in Michigan and BlackRock also for their commitment and support for our vision. Next please, so consistently paid more dividend for more than 10 years. We have a yield of 2.5% which is higher than the S&P Small cap ETFs indexing. Next please, so we do have a share repurchase program in motion. The Board has approved a purchase of 2.75 million. We…

Thank you, Frank. Good morning. Before I summarize the results of operations, like Frank said, I would like to categorize the investment accounting pronouncement that we adopted this year. Slide 29 notes changes in the accounting rules related to our investments that are causing our earnings to be more volatile. We adopted accounting standards update, ASU 2016-01 recognition and measurement of financial assets and financial liabilities, effective July 1, 2018. The amended guidance changed the classification and measurement of investments and equity securities and certain disclosures. Starting in this fiscal year, some of our corporate investments were accounted for differently than in the past. There was no longer and available for sale classification for equity securities for readily determinable fair value and as part of the adoption of the new standard, we made the required cumulative effective adjustment and reclassified 3.1 million in unrealized net gains and a million in related deferred tax expense out of accumulated comprehensive income and into retained earnings. Effective July 1, 2018 changes in fair value of these investments formerly classified as available for sale are reported through earnings rather than other comprehensive income. This includes any changes in the market value of our investment in Hive. The impact to earnings for this change for the quarter ending March 31, 2019 was an unrealized investment game of 2.1 million. This gain is related to unrealized gains on securities formerly classified as available for sale and previously would have increased our other comprehensive income rather than investment income. Majority of this amount is related to the gain in the market value on our investment in Hive. As of March 31, 2019 the market value of the company's investment in Hive was higher than the cost and due to the accounting change, it doesn't matter if an…

Thank you, Lisa. All right. We go to slide 37. As you can see, the majority of our mutual fund assets are in emerging markets and natural resources while 35% are in domestic equities and fixed income and as for distribution, more than three quarters of assets come from retail investors with 19% coming from institutional investors. Our sales and marketing efforts have continued to focus on our mutual funds, including those concentrated on gold, natural resources and emerging markets as well as our exchange traded funds. The company and our funds continue to receive an invaluable amount of viral publicity gained through media interviews. Frank Holmes often shares his insights with financial outlets like CNBC Asia, Bloomberg Radio and Kitco News just to name a few. We also continue to receive recommendations by influential financial newsletter writers as well along with sharing and syndication of our award winning original content by third party publishers. The newsletters have a loyal following and receive millions of visitors every month. Frank Holmes, CEO blogs Frank Talk continues to grow in popularity. His commentary is often featured by prominent publications including Forbes, Seeking Alpha, The Crux and Business Insider with millions of monthly visitors. In fact, just last month, the Frank Talk blog turned 12. This blog was one of the very first in the financial industry and to celebrate its success and our loyal subscriber base, we created a special slideshow pinpointing the Top 12 posts to celebrate 12 years of Frank Talk, which you can find on usfunds.com. One of our core values at U.S. Global is curiosity to learn and improve. We believe that providing educational materials to our investors is one of many ways to achieve this and some of our most recent pieces includes What's Driving Energy handout,…

The how it impacts GROW is historically we get a bigger lift if you have a movement positive in gold and equity markets, so the overall equity markets above the 50 day moving average gold above this 50 day moving average, and all of a sudden the valuations change and there is a surge. When you have the equities below the 50 day and gold is above its 50 day, the inverse of that, then GROW is participated on the upside with the price of gold, but in a muted way. So it's the real leverage comes from when you have both the commodity trending positive, and the overall equities trending positive. What we advocate for investors is that look at our tax free funds and our short term government bond funds, you know, they're just great asset class if you're worried about the correction, you're not a rebalancing, you are trend follower, you're trying to be tactical, the near term tax reasons [ph] is a great way to park your money as a pretty stable NAV, when you compare it to other bond fund. It doesn't move that often to take a look at into the penny. So I think that's a real important part of investors if they really make sure they've got a bar belling that they have a lot of short term fixed income investments along with their equity.

Perfect. Thank you for that. Here's a question, Lisa that maybe you can answer. It says, what is the value of your investment in gold spot?

Well, during the quarter ending March 31, 2019 we purchased 7.1 million shares of gold spot and at the end of that period, the market value was approximately 1.3 million.

Great. Frank, I have another question for you about Bitcoin. This one says the price of bitcoin seems to be holding steady lately. Do you see it going up further this year? Or what are your thoughts on the next movement for that space?

I think on the slide we showed earlier today is that the golden cross took place and it's a very constructive bull market. It's taking place, not going to take off straight up. That's all lots of BS. It's just a small I've been inclined and I think that's what's positive about it and the bottom took place when JPMorgan came up with their own crypto coin. So from that in, I remain constructively bullish, but ignore the hysteria $20,000, $50,000, $100,000 over the next short period of time.

Great. Is there anything else that you would like to add Frank before we conclude?

Well, one of the things we launched our ETFs and one thing about mutual funds, foreigners cannot open an account to buy our mutual funds but they can trade through their accounts for international brokers they can trade an owner ETFs so they can buy our smart beta gold equity ETFs and they can look at our airline ETFs and they've done exactly what we did. I'm very proud of them because we put thousands of hours of rigorous back testing before we went and launched those to the public and we took our vast knowledge of experience in the mining sector particular and then we added the sort of quad approach and when we did that mathematically, it's going to outperform 90% of the time, the other competing equity ETFs and so we launched it, and it's done that. So we feel that it's a great way and the fact that the foreign investors from Switzerland or England that have global accounts can buy our products that are listed on the New York Stock Exchange. So that remains very positive. But I think the real risk it must be truly cognizant of is that mutual funds as a whole and active management, the bear market is not over and it's the real big pockets of money I'm told are with family offices that's where things have shifted. And we take a look at the infamous George Soros, he basically got rid of every one of his investors and his funds after 2008, because then he wouldn't be subject to regulatory oversight. And he just runs his own family office which is like close to $10 billion and so you're seeing a lot of other fund groups did that and that's where you get active management still. Otherwise, the quants are dominating 70% of all the noise of the day in the trading that takes place and they're able to process and read, you got to think of Google on steroids, where they can read word choice on a press release, and immediately make a stock go up or down 7% or 20% because there's been a pattern of analysis done, that when you have those factors in a press release, the stock should rise or fall for the next three to seven days is usually the horizon. People actually have become cognizant of the shifts in the formation of capital and when we maybe get some day of streamlining of regulations, that favors active management then I think we will get a boom back into that sector. But in the interim, we are still in that sort of slow bear contraction in mutual funds.

Perfect. Thank you for that, Frank. All right. With that this concludes the U.S. Global Investors webcast for the third quarter 2019. As I said previously this presentation will be available on our website usfunds.com and thank you all for your participation today.

Thank you, Holly. Thank you, Lisa, and everyone else on the team, Kat and Joseph and the team and John for putting this together.

Thank you.