U.S. Global Investors Funds (Trust) is organized as a Massachusetts business trust, consisting of nine separate funds. The nine funds include U.S. Treasury Securities Cash, U.S. Government Securities Savings, Near-Term Tax Free, Tax Free, All American Equity, China Region Opportunity, Global Resources, World Precious Minerals and Gold Shares. All funds are diversified, with the exception of China Region Opportunity, Global Resources, World Precious Minerals and Gold Shares. U.S. Global Investors, Inc., under an investment advisory agreement with the Trust in effect through February 29, 2004, furnishes management and investment advisory services, and, subject to the supervision of the trustees, directs the investments of each fund according to its investment objectives, policies and limitations. The adviser also furnishes all necessary office facilities, business equipment and personnel for administering the affairs of the Trust.