U.S. Global Cuts Jobs, 401(k) Unit
February 26, 2001
U.S. Global Investors of San Antonio, Texas has cut seven jobs, representing about 10 percent of its workforce, and has discontinued the operation of its 401(k) plan administration subsidiary.
The cuts are in response to the $455,000 loss the publicly held investment company reported for the three months ended Dec. 31. The company's cost-cutting initiatives were announced Feb. 16.
In its quarterly report filed Feb. 14, U.S. Global Investors attributed the loss to the declining equity market. Specifically, the fund adviser said its gold and money fund assets fell in 2000, diminishing net investment advisory fees.
The job cuts were within the back office shareholder servicing and transfer agency operations of the company's two mutual fund groups, said Cindy Barajas, a company spokesperson.
The company also closed U.S. Global Administrators, the company's 401(k) plan administration subsidiary and helped each plan sponsor find a new plan administrator, said Tracy Peterson, chief accounting officer of U.S. Global Investors. The unit provided administrative services to about nine employers and had about $31 million in assets under administration, he said. The plan administration unit did not represent a large part of U.S. Global Investors' business, said Peterson.
U.S. Global is the investment adviser to the U.S. Global Investors Funds and the U.S. Global Accolade Funds. The 13 no-load funds have a total of $1.3 billion in assets under management.