EXHIBIT (a)(1)
U.S. GLOBAL INVESTORS FUNDS
CODE OF ETHICS FOR
PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS
Adopted: November 14, 2003
I. COVERED OFFICERS/PURPOSE OF CODE
The U.S. Global Investors Funds, a Massachusetts business trust (the "Trust") is
an open-end management investment company registered under the Investment
Company Act of 1940, as amended (the "Investment Company Act"). This Code of
Ethics ("Code") for the Trust and its series funds (collectively, the "Funds"
and each a "Fund") applies to the Trust's Principal Executive Officer and
Principal Financial Officer (the "Covered Officers" each of whom are set forth
in Exhibit A) for the purpose of promoting:
o Honest and ethical conduct, including the ethical handling of actual or
apparent conflicts of interest between personal and professional
relationships;
o Full, fair, accurate, timely and understandable disclosure in reports and
documents that the Trust files with, or submits to, the Securities and
Exchange Commission ("SEC") and in other public communications made by or
on behalf of the Funds;
o Compliance with applicable governmental laws, rules and regulations;
o The prompt internal reporting of violations of the Code to an appropriate
person or persons identified in the Code; and
o Accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business ethics and
should be sensitive to situations that may give rise to actual as well as
apparent conflicts of interest.
II. COVERED OFFICERS SHOULD ETHICALLY HANDLE ACTUAL AND APPARENT CONFLICTS OF
INTEREST
A "conflict of interest" occurs when a Covered Officer's private interests
interfere with the interests of, or his service to, the Trust. For example, a
conflict of interest would arise if a Covered Officer, or a member of his
family, receives improper personal benefits as a result of his position with the
Trust.
Certain conflicts of interest arise out of the relationships between Covered
Officers and the Trust and are already subject to conflict of interest
provisions in the Investment Company Act and the Investment Advisers Act of
1940, as amended (the "Investment Advisers Act"). For example, Covered Officers
may not individually engage in certain transactions (such as the purchase or
sale of securities or other property) with the Funds because of their status as
"affiliated persons." Compliance programs and procedures of the Trust and the
Trust's investment adviser, U.S. Global Investors, Inc. ("Adviser"), are
designed to prevent, or identify and correct, violations of these provisions.
This Code does not, and is not intended to, repeat or replace these programs and
procedures, and such conflicts fall outside of the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit,
conflicts may arise from, or as a result of, the contractual relationship
between the Trust and the Adviser. As a result, this Code recognizes that
Covered Officers will, in the normal course of their duties (whether formally
for the Trust or for the Adviser, or for both), be involved in establishing
policies and implementing decisions which will have different effects on the
Adviser and the Trust. The participation of the Covered Officers in such
activities is inherent in the contractual relationship between the Trust and the
Adviser and is consistent with the performance by the Covered Officers of their
duties as officers of the Trust. Thus, if performed in conformity with the
provisions of the Investment Company Act and the Investment Advisers Act, such
activities will be deemed to have been handled ethically. In addition, it is
recognized by the Trust's board of trustees that the covered officers may also
be officers or officers of one or more other investment companies covered by
this or other codes.
Other conflicts of interest are covered by the Code, even if such conflicts of
interest are not subject to provisions in the Investment Company Act and the
Investment Advisers Act. The following list provides examples of conflicts of
interest under the Code, but Covered Officers should keep in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of the Covered Officer should not be placed improperly before the
interests of the Trust.
EACH COVERED OFFICER MUST:
o Not use his personal influence or personal relationships to improperly
influence investment decisions or financial reporting by the Funds whereby
the Covered Officer would benefit personally to the detriment of the Funds;
o Not cause the Trust to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than the benefit
of the Funds; and
o Not use material non-public knowledge of portfolio transactions made or
contemplated for a Fund to trade personally or cause others to trade
personally in contemplation of the market effect of such transactions
Certain material conflict of interest situations require written pre-approval
from the Adviser's General Counsel. Examples of material conflict of interest
situations requiring pre-approval include:
o Service as a director on the board of any public company;
o The receipt of any non-nominal gifts;
o The receipt of any entertainment from any company with which the Trust has
current or prospective business dealings unless such entertainment is
business-related, reasonable in cost, appropriate as to time and place, and
not so frequent as to raise any question of impropriety;
o Any ownership interest in, or any consulting or employment relationship
with, any of the Trust's service providers, other than its Adviser,
principal underwriter, administrator or any affiliated person thereof; and
o A direct or indirect financial interest in commissions, transaction charges
or spreads paid by a Fund for effecting portfolio transactions or for
selling or redeeming shares other than an interest arising from the Covered
Officer's employment, such as compensation or equity ownership.
The Trust's Independent Trustees will be provided a list of any such written
pre-approvals in connection with the next regularly scheduled Board meeting.
III. DISCLOSURE AND COMPLIANCE
o Each Covered Officer should familiarize himself with the disclosure
requirements generally applicable to the Trust;
o Each Covered Officer should not knowingly misrepresent, or cause others to
misrepresent, facts about the Funds to others, whether within or outside
the Trust, including to the Trust's Board of Trustees ("Board") and
auditors, and to governmental regulators and self-regulatory organizations;
o Each Covered Officer should, to the extent appropriate within his area of
responsibility, consult with other officers of the Trust and officers and
employees of the Adviser with the goal of promoting full, fair, accurate,
timely and understandable disclosure in the reports and documents the Trust
files with, or submits to, the SEC and in other public communications made
by or on behalf of the Funds; and
o It is the responsibility of each Covered Officer to promote compliance with
the standards and restrictions imposed by applicable laws, rules and
regulations.
IV. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
o Upon adoption of the Code (or thereafter as applicable, upon becoming a
Covered Officer), affirm in writing to the Board that he has received, read
and understands the Code;
o Annually thereafter affirm to the Board that he has complied with the
requirements of the Code;
o Not retaliate against any other Covered Officer, other officer of the
Trust, any employee of the Adviser or any of their affiliated persons for
reports of potential violations that are made in good faith; and
o Notify the Adviser's General Counsel promptly if he knows of any violation
of this Code. Failure to do so is itself a violation of this Code.
The Adviser's General Counsel is responsible for applying this Code to specific
situations in which questions are presented under it and has the authority to
interpret this Code in any particular situation. However, any waivers of any
provision of this Code will be considered by the Independent Trustees.
The Trust will follow the following procedures in investigating and enforcing
this Code:
o The Adviser's General Counsel will take all appropriate action to
investigate any reported potential violations;
o If, after such investigation, the General Counsel believes that no
violation has occurred, the General Counsel is not required to take any
further action;
o Any matter that the General Counsel believes is a violation will be
reported to the Independent Trustees;
o If the Independent Trustees concur that a violation has occurred, they will
consider appropriate action, which may include review of, and appropriate
modifications to, applicable policies and procedures; notification to
appropriate personnel of the Adviser or its board; or a recommendation to
dismiss the Covered Officer;
o The Independent Trustees will be responsible for granting waivers, as
appropriate; and
o Any changes to or waivers of this Code will, to the extent required, be
disclosed as provided by SEC rules.
V. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Trust for purposes of
Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to
registered investment companies thereunder. Insofar as other policies or
procedures of the Trust, the Adviser, principal underwriter, or other service
providers govern or purport to govern the behavior or activities of Covered
Officers, they are superceded by this Code to the extent that they overlap or
conflict with the provisions of this Code. The Code of Ethics under Rule 17j-1
under the Investment Company Act is a separate requirement applying to the
Covered Officers and others, and is not part of this Code.
VI. AMENDMENTS
Except as to Exhibit A, this Code may not be amended except in written form,
which is specifically approved or ratified by a majority vote of the Board,
including a majority of Independent Trustees.
VII. CONFIDENTIALITY
All reports and records prepared or maintained pursuant to this Code will be
considered confidential and shall be maintained and protected accordingly.
Except as otherwise required by law or this Code, such matters shall not be
disclosed to anyone other than the Board, officers of the Trust, Trust counsel,
counsel to the Independent Trustees and counsel for the Adviser.
VIII. INTERNAL USE
The Code is intended solely for the internal use by the Trust and does not
constitute an admission, by or on behalf of any Trust, as to any fact,
circumstance, or legal conclusion.
Persons Covered by this Code of Ethics
Frank E. Holmes, Principal Executive Officer of U.S. Global Investors Funds
Catherine A. Rademacher, Principal Financial Officer of U.S. Global Investors
Funds