UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07852
USAA Mutual Funds Trust
(Exact name of registrant as specified in charter)
15935 La Cantera Pkwy, Building Two, San Antonio, Texas | 78256 |
(Address of principal executive offices) | (Zip code) |
Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-235-8396
Date of fiscal year end: December 31
Date of reporting period: June 30, 2020
Item 1. Reports to Stockholders.
JUNE 30, 2020
Semi Annual Report
USAA Extended Market Index Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all funds held with the USAA Mutual Funds or your financial intermediary.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds. USAA Mutual Funds are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Financial Statements | |||||||
Schedule of Portfolio Investments | 4 | ||||||
Statement of Assets and Liabilities | 65 | ||||||
Statement of Operations | 66 | ||||||
Statements of Changes in Net Assets | 67 | ||||||
Financial Highlights | 68 | ||||||
Notes to Financial Statements | 70 | ||||||
Supplemental Information | 79 | ||||||
Proxy Voting and Portfolio Holdings Information | 79 | ||||||
Expense Examples | 79 | ||||||
Liquidity Risk Management Program | 80 | ||||||
Privacy Policy (inside back cover) |
This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by Victory Capital Management Inc. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund.
IRA DISTRIBUTION WITHHOLDING DISCLOSURE
We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state's tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election, or change or revoke a prior withholding election, call (800) 235-8396.
If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution.
For more specific information, please consult your tax adviser.
1
USAA Mutual Funds Trust USAA Extended Market Index Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective seeks to match, before fees and expenses, the performance of all small- and mid-cap stocks as measured by the Wilshire 4500 Completion IndexSM.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
Tesla, Inc. | 3.4 | % | |||||
Uber Technologies, Inc. | 1.1 | % | |||||
The Blackstone Group, Inc. Class A | 0.9 | % | |||||
DocuSign, Inc. | 0.7 | % | |||||
Splunk, Inc. | 0.7 | % | |||||
CoStar Group, Inc. | 0.6 | % | |||||
Seattle Genetics, Inc. | 0.6 | % | |||||
Square, Inc. Class A | 0.6 | % | |||||
Veeva Systems, Inc. Class A | 0.6 | % | |||||
Snap, Inc. Class A | 0.5 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
USAA Mutual Funds Trust USAA Extended Market Index Fund (continued) | June 30, 2020 |
(Unaudited)
Sector Allocation*:
June 30, 2020
(% of Net Assets)
* Does not include futures, money market instrument and short-term investments purchased with cash collateral from securities loaned.
Percentages are of the net assets of the Fund and may not equal 100%
3
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Common Stocks (99.3%) | |||||||||||
Communication Services (4.1%): | |||||||||||
A.H. Belo Corp. Class A | 3,060 | $ | 5 | ||||||||
Alaska Communications Systems Group, Inc. | 7,744 | 22 | |||||||||
Altice USA, Inc. Class A (a) | 11,975 | 270 | |||||||||
AMC Entertainment Holdings, Inc. (b) | 6,309 | 27 | |||||||||
AMC Networks, Inc. Class A (a) | 7,001 | 164 | |||||||||
ANGI Homeservices, Inc. Class A (a) (b) | 10,823 | 131 | |||||||||
Atn International, Inc. | 1,720 | 104 | |||||||||
Autoweb, Inc. (a) | 1,591 | 2 | |||||||||
Ballantyne Strong, Inc. (a) | 1,626 | 3 | |||||||||
Bandwidth, Inc. Class A (a) | 722 | 92 | |||||||||
Beasley Broadcast Group, Inc. Class A | 376 | 1 | |||||||||
Boingo Wireless, Inc. (a) | 6,409 | 85 | |||||||||
Boston Omaha Corp. Class A (a) | 3,329 | 53 | |||||||||
Cable One, Inc. | 703 | 1,248 | |||||||||
Cardlytics, Inc. (a) (b) | 3,855 | 270 | |||||||||
Cargurus, Inc. (a) | 1,326 | 34 | |||||||||
Cars.com, Inc. (a) | 10,499 | 60 | |||||||||
cbdMD, Inc. (a) | 5,955 | 11 | |||||||||
Chicken Soup For The Soul Entertainment, Inc. (a) | 181 | 1 | |||||||||
Cincinnati Bell, Inc. (a) | 6,037 | 90 | |||||||||
Cinedigm Corp. Class A (a) | 8,808 | 17 | |||||||||
Cinemark Holdings, Inc. | 15,018 | 173 | |||||||||
Clear Channel Outdoor Holdings, Inc. (a) | 22,000 | 23 | |||||||||
Cogent Communications Holdings, Inc. (c) | 6,183 | 478 | |||||||||
comScore, Inc. (a) | 8,853 | 27 | |||||||||
Consolidated Communications Holdings, Inc. (a) | 9,702 | 66 | |||||||||
DHI Group, Inc. (a) | 8,392 | 18 | |||||||||
Dolphin Entertainment, Inc. (a) | 4,064 | 4 | |||||||||
Emerald Holding, Inc. (b) | 2,883 | 9 | |||||||||
Entercom Communications Corp. Class A (b) | 19,262 | 27 | |||||||||
Entravision Communications Corp. Class A | 10,322 | 15 | |||||||||
Eventbrite, Inc. Class A (a) | 1,904 | 16 | |||||||||
EverQuote, Inc. Class A (a) | 818 | 48 | |||||||||
Gannett Co., Inc. (a) (b) | 19,101 | 26 | |||||||||
GCI Liberty, Inc. Class A (a) | 13,165 | 936 | |||||||||
Global Eagle Entertainment, Inc. (a) | 484 | 2 | |||||||||
Globalstar, Inc. (a) (b) | 103,811 | 34 | |||||||||
Glu Mobile, Inc. (a) | 21,567 | 200 | |||||||||
Gogo, Inc. (a) (b) | 9,718 | 31 | |||||||||
Gray Television, Inc. (a) | 11,863 | 165 | |||||||||
Harte-Hanks, Inc. (a) | 693 | 2 | |||||||||
Hemisphere Media Group, Inc. (a) | 2,948 | 29 | |||||||||
IDT Corp. Class B (a) | 3,577 | 23 | |||||||||
Insignia Systems, Inc. (a) | 1,466 | 1 | |||||||||
Iridium Communications, Inc. (a) | 17,564 | 447 | |||||||||
John Wiley & Sons, Inc. Class A | 5,187 | 202 | |||||||||
Lee Enterprises, Inc. (a) | 9,188 | 9 |
See notes to financial statements.
4
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Liberty Broadband Corp. Class A (a) | 26,612 | $ | 3,252 | ||||||||
Liberty Media Corp.-Liberty Formula One Class A (a) (b) | 30,780 | 898 | |||||||||
Liberty Media Corp-Liberty Braves Class A (a) | 7,579 | 152 | |||||||||
Liberty Media Corp-Liberty SiriusXM Class A (a) | 43,770 | 1,511 | |||||||||
Liberty TripAdvisor Holdings, Inc. Class A (a) | 10,556 | 22 | |||||||||
Lions Gate Entertainment Corp. Class B (a) | 19,184 | 131 | |||||||||
LiveXLive Media, Inc. (a) | 4,511 | 16 | |||||||||
Loral Space & Communications, Inc. | 3,602 | 70 | |||||||||
Madison Square Garden Entertainment Corp. (a) | 3,028 | 227 | |||||||||
Madison Square Garden Sports Corp. Class A (a) | 3,025 | 444 | |||||||||
Marchex, Inc. Class B (a) | 6,139 | 10 | |||||||||
Match Group, Inc. (a) (b) | 10,286 | 3,326 | |||||||||
Match Group, Inc. (a) | 5,255 | 563 | |||||||||
Mediaco Holding, Inc. (a) | 955 | 5 | |||||||||
Meredith Corp. (b) | 5,037 | 73 | |||||||||
MSG Networks, Inc. Class A (a) | 7,819 | 78 | |||||||||
National CineMedia, Inc. | 11,647 | 35 | |||||||||
Nexstar Media Group, Inc. Class A (b) | 7,153 | 599 | |||||||||
NTN Buzztime, Inc. (a) | 297 | 1 | |||||||||
Ooma, Inc. (a) | 3,229 | 53 | |||||||||
ORBCOMM, Inc. (a) | 12,294 | 47 | |||||||||
Otelco, Inc. Class A (a) | 288 | 3 | |||||||||
Pareteum Corp. (a) (b) | 20,789 | 13 | |||||||||
Pinterest, Inc. Class A (a) | 13,805 | 306 | |||||||||
QuinStreet, Inc. (a) | 6,551 | 69 | |||||||||
Reading International, Inc. Class A (a) | 3,213 | 14 | |||||||||
Rosetta Stone, Inc. (a) | 3,264 | 55 | |||||||||
Saga Communications, Inc. Class A | 595 | 15 | |||||||||
Salem Media Group, Inc. | 2,108 | 2 | |||||||||
Scholastic Corp. | 4,379 | 131 | |||||||||
Sciplay Corp. Class A (a) | 3,609 | 54 | |||||||||
Shenandoah Telecommunications Co. (b) | 7,292 | 360 | |||||||||
Sinclair Broadcast Group, Inc. Class A (b) | 9,566 | 177 | |||||||||
Sirius XM Holdings, Inc. (b) | 206,168 | 1,210 | |||||||||
Snap, Inc. Class A (a) | 149,862 | 3,521 | |||||||||
Spanish Broadcasting System, Inc. (a) | 521 | — | (e) | ||||||||
SPAR Group, Inc. (a) | 1,448 | 1 | |||||||||
Spok Holdings, Inc. | 2,749 | 26 | |||||||||
SRAX, Inc. (a) (b) | 2,219 | 6 | |||||||||
Super League Gaming, Inc. (a) | 1,666 | 4 | |||||||||
TechTarget, Inc. (a) | 3,148 | 95 | |||||||||
TEGNA, Inc. | 33,070 | 368 | |||||||||
Telephone & Data Systems, Inc. | 14,250 | 283 | |||||||||
The E.W. Scripps Co. Class A | 9,032 | 79 | |||||||||
The Marcus Corp. | 2,715 | 36 | |||||||||
The Meet Group, Inc. (a) | 10,624 | 66 | |||||||||
The New York Times Co. Class A | 17,654 | 742 | |||||||||
Townsquare Media, Inc. Class A | 1,531 | 7 | |||||||||
Travelzoo (a) | 780 | 4 | |||||||||
TripAdvisor, Inc. | 14,288 | 272 |
See notes to financial statements.
5
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
TrueCar, Inc. (a) | 10,994 | $ | 28 | ||||||||
United States Cellular Corp. (a) (b) | 2,441 | 75 | |||||||||
Urban One, Inc. (a) | 4,584 | 9 | |||||||||
Vonage Holdings Corp. (a) | 36,306 | 365 | |||||||||
WideOpenWest, Inc. (a) | 7,723 | 41 | |||||||||
World Wrestling Entertainment, Inc. Class A (b) | 5,598 | 243 | |||||||||
Xcel Brands, Inc. (a) | 1,250 | 1 | |||||||||
Yelp, Inc. (a) | 10,879 | 252 | |||||||||
Zedge, Inc. Class B (a) | 1,641 | 2 | |||||||||
Zillow Group, Inc. Class C (a) (b) | 14,321 | 825 | |||||||||
Zynga, Inc. Class A (a) | 139,813 | 1,334 | |||||||||
28,308 | |||||||||||
Consumer Discretionary (12.6%): | |||||||||||
1-800-Flowers.com, Inc. Class A (a) | 4,540 | 91 | |||||||||
Aaron's, Inc. | 9,202 | 418 | |||||||||
Abercrombie & Fitch Co. | 8,182 | 87 | |||||||||
Acushnet Holdings Corp. | 5,994 | 209 | |||||||||
ADOMANI, Inc. (a) | 10,096 | 2 | |||||||||
Adtalem Global Education, Inc. (a) | 6,185 | 193 | |||||||||
American Axle & Manufacturing Holdings, Inc. (a) | 15,211 | 116 | |||||||||
American Eagle Outfitters, Inc. | 21,148 | 231 | |||||||||
American Public Education, Inc. (a) | 1,988 | 59 | |||||||||
America's Car-Mart, Inc. (a) | 957 | 84 | |||||||||
Apex Global Brands, Inc. (a) (b) | 655 | 1 | |||||||||
Aramark | 33,130 | 748 | |||||||||
Arcimoto, Inc. (a) | 2,876 | 15 | |||||||||
Ark Restaurants Corp. | 323 | 4 | |||||||||
Asbury Automotive Group, Inc. (a) (b) | 2,757 | 213 | |||||||||
Ascena Retail Group, Inc. (a) (b) | 1,242 | 2 | |||||||||
Aspen Group, Inc. (a) (b) | 3,378 | 31 | |||||||||
At Home Group, Inc. (a) | 7,230 | 47 | |||||||||
Autoliv, Inc. | 13,653 | 880 | |||||||||
AutoNation, Inc. (a) | 7,478 | 281 | |||||||||
AYRO, Inc. (a) | 1,952 | 5 | |||||||||
Barnes & Noble Education, Inc. (a) (b) | 5,685 | 9 | |||||||||
Bassett Furniture Industries, Inc. | 1,544 | 11 | |||||||||
BBQ Holdings, Inc. (a) | 1,561 | 5 | |||||||||
BBX Capital Corp. | 10,067 | 26 | |||||||||
Beazer Homes USA, Inc. (a) | 3,652 | 37 | |||||||||
bebe stores, Inc. | 985 | 4 | |||||||||
Bed Bath & Beyond, Inc. (b) | 14,469 | 153 | |||||||||
Big 5 Sporting Goods Corp. | 3,487 | 7 | |||||||||
Big Lots, Inc. | 5,276 | 222 | |||||||||
Biglari Holdings, Inc. Class B (a) | 349 | 24 | |||||||||
BJ's Restaurants, Inc. | 3,294 | 69 | |||||||||
Blink Charging Co. (a) | 3,686 | 21 | |||||||||
Bloomin' Brands, Inc. | 12,650 | 135 | |||||||||
Blue Apron Holdings, Inc. Class A (a) | 247 | 3 | |||||||||
Bluegreen Vacations Corp. | 853 | 5 | |||||||||
Boot Barn Holdings, Inc. (a) (b) | 3,924 | 85 |
See notes to financial statements.
6
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Bowl America, Inc. Class A | 373 | $ | 4 | ||||||||
Boyd Gaming Corp. | 11,410 | 238 | |||||||||
Bright Horizons Family Solutions, Inc. (a) | 8,925 | 1,046 | |||||||||
Brinker International, Inc. | 6,426 | 154 | |||||||||
Brunswick Corp. | 12,240 | 784 | |||||||||
Build-A-Bear Workshop, Inc. (a) | 2,475 | 5 | |||||||||
Burlington Stores, Inc. (a) | 9,078 | 1,787 | |||||||||
Caesars Entertainment Corp. (a) | 108,108 | 1,312 | |||||||||
Caleres, Inc. | 5,817 | 49 | |||||||||
Callaway Golf Co. (b) | 13,608 | 238 | |||||||||
Camping World Holdings, Inc. Class A | 5,044 | 137 | |||||||||
Carriage Services, Inc. | 2,469 | 45 | |||||||||
Carrols Restaurant Group, Inc. (a) | 6,382 | 31 | |||||||||
Carter's, Inc. | 6,158 | 497 | |||||||||
Carvana Co. (a) | 1,667 | 200 | |||||||||
Casper Sleep, Inc. (a) (b) | 3,669 | 33 | |||||||||
Cavco Industries, Inc. (a) | 1,095 | 211 | |||||||||
Century Casinos, Inc. (a) | 4,625 | 19 | |||||||||
Century Communities, Inc. (a) | 4,204 | 129 | |||||||||
Charles & Colvard Ltd. (a) | 4,338 | 3 | |||||||||
Chegg, Inc. (a) | 17,047 | 1,146 | |||||||||
Chewy, Inc. Class A (a) (b) | 8,102 | 362 | |||||||||
Chico's FAS, Inc. | 17,407 | 24 | |||||||||
Choice Hotels International, Inc. (b) | 5,956 | 470 | |||||||||
Churchill Downs, Inc. | 4,972 | 662 | |||||||||
Chuy's Holdings, Inc. (a) | 2,626 | 39 | |||||||||
Citi Trends, Inc. | 1,695 | 34 | |||||||||
Clarus Corp. | 3,103 | 36 | |||||||||
Collectors Universe, Inc. | 1,465 | 50 | |||||||||
Columbia Sportswear Co. (b) | 4,892 | 394 | |||||||||
Comstock Holding Cos., Inc. (a) | 1,084 | 3 | |||||||||
Conn's, Inc. (a) | 3,366 | 34 | |||||||||
Cool Holdings, Inc. (a) | 7,450 | 1 | |||||||||
Cooper Tire & Rubber Co. | 7,270 | 201 | |||||||||
Core-Mark Holding Co., Inc. | 6,443 | 161 | |||||||||
Cracker Barrel Old Country Store, Inc. | 3,546 | 393 | |||||||||
Crocs, Inc. (a) (b) | 9,742 | 359 | |||||||||
Crown Crafts, Inc. | 1,453 | 7 | |||||||||
Culp, Inc. | 1,795 | 15 | |||||||||
Dana, Inc. | 21,621 | 264 | |||||||||
Dave & Buster's Entertainment, Inc. (b) | 6,628 | 88 | |||||||||
Deckers Outdoor Corp. (a) | 3,767 | 739 | |||||||||
Delta Apparel, Inc. (a) | 845 | 10 | |||||||||
Denny's Corp. (a) | 7,772 | 78 | |||||||||
Designer Brands, Inc. Class A | 8,840 | 60 | |||||||||
Destination XL Group, Inc. (a) | 7,815 | 5 | |||||||||
Dick's Sporting Goods, Inc. | 10,678 | 441 | |||||||||
Dillard's, Inc. Class A (b) | 3,359 | 87 | |||||||||
Dine Brands Global, Inc. (b) | 2,374 | 100 | |||||||||
Dorman Products, Inc. (a) | 3,874 | 260 |
See notes to financial statements.
7
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Dover Motorsports, Inc. | 2,388 | $ | 4 | ||||||||
Drive Shack, Inc. (a) | 6,540 | 12 | |||||||||
Duluth Holdings, Inc. Class B (a) (b) | 3,456 | 25 | |||||||||
Dunkin' Brands Group, Inc. | 11,321 | 738 | |||||||||
Edison Nation, Inc. (a) | 309 | 1 | |||||||||
Educational Development Corp. | 1,097 | 11 | |||||||||
El Pollo Loco Holdings, Inc. (a) | 2,597 | 38 | |||||||||
Emerson Radio Corp. (a) | 990 | 1 | |||||||||
Envela Corp. (a) | 1,313 | 8 | |||||||||
Escalade, Inc. | 1,825 | 25 | |||||||||
Ethan Allen Interiors, Inc. | 2,780 | 33 | |||||||||
Etsy, Inc. (a) (b) | 18,358 | 1,951 | |||||||||
Express, Inc. (a) | 5,311 | 8 | |||||||||
Extended Stay America, Inc. | 27,156 | 304 | |||||||||
FAT Brands, Inc. (a) | 380 | 1 | |||||||||
Fiesta Restaurant Group, Inc. (a) | 2,634 | 17 | |||||||||
Five Below, Inc. (a) | 7,590 | 811 | |||||||||
Flexsteel Industries, Inc. | 1,264 | 16 | |||||||||
Floor & Decor Holdings, Inc. Class A (a) | 14,102 | 812 | |||||||||
Foot Locker, Inc. | 15,942 | 465 | |||||||||
Forward Industries, Inc. (a) | 1,138 | 1 | |||||||||
Fossil Group, Inc. (a) | 4,252 | 20 | |||||||||
Fox Factory Holding Corp. (a) | 4,804 | 397 | |||||||||
Francesca's Holdings Corp. (a) | 484 | 2 | |||||||||
Frontdoor, Inc. (a) | 12,633 | 560 | |||||||||
Full House Resorts, Inc. (a) | 4,189 | 6 | |||||||||
Funko, Inc. Class A (a) (b) | 1,831 | 11 | |||||||||
Gaia, Inc. (a) | 1,357 | 11 | |||||||||
GameStop Corp. Class A (a) (b) | 7,058 | 31 | |||||||||
Genesco, Inc. (a) | 1,950 | 42 | |||||||||
Gentex Corp. | 37,879 | 975 | |||||||||
Gentherm, Inc. (a) | 3,783 | 147 | |||||||||
G-III Apparel Group Ltd. (a) | 6,382 | 85 | |||||||||
GNC Holdings, Inc. (a) (b) (f) (k) | 10,384 | 3 | |||||||||
Golden Entertainment, Inc. (a) | 3,632 | 32 | |||||||||
GoPro, Inc. Class A (a) | 16,161 | 77 | |||||||||
Graham Holdings Co. Class B | 651 | 223 | |||||||||
Grand Canyon Education, Inc. (a) | 6,524 | 591 | |||||||||
Green Brick Partners, Inc. (a) | 8,510 | 101 | |||||||||
Greenlane Holdings, Inc. Class A (a) | 948 | 4 | |||||||||
Group 1 Automotive, Inc. | 2,628 | 173 | |||||||||
Groupon, Inc. (a) (b) | 3,045 | 55 | |||||||||
GrubHub, Inc. (a) | 10,049 | 707 | |||||||||
Guess?, Inc. | 4,550 | 44 | |||||||||
Hamilton Beach Brands Holding Co. Class A | 796 | 9 | |||||||||
Harley-Davidson, Inc. | 22,149 | 526 | |||||||||
Haverty Furniture Cos., Inc. (b) | 2,466 | 39 | |||||||||
Helen of Troy Ltd. (a) | 3,141 | 592 | |||||||||
HG Holdings, Inc. (a) | 2,388 | 2 | |||||||||
Hibbett Sports, Inc. (a) | 2,055 | 43 |
See notes to financial statements.
8
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Hilton Grand Vacations, Inc. (a) | 12,146 | $ | 237 | ||||||||
Hooker Furniture Corp. | 1,717 | 33 | |||||||||
Horizon Global Corp. (a) | 2,656 | 6 | |||||||||
Houghton Mifflin Harcourt Co. (a) | 18,766 | 34 | |||||||||
Hovnanian Enterprises, Inc. Class A (a) | 845 | 20 | |||||||||
Hudson Ltd. Class A (a) | 6,678 | 33 | |||||||||
Hyatt Hotels Corp. Class A | 4,589 | 231 | |||||||||
HyreCar, Inc. (a) | 2,538 | 7 | |||||||||
Iconix Brand Group, Inc. (a) | 1,894 | 2 | |||||||||
imedia Brands, Inc. (a) | 1,448 | 5 | |||||||||
Inspired Entertainment, Inc. (a) | 2,516 | 7 | |||||||||
Installed Building Products, Inc. (a) | 3,407 | 234 | |||||||||
iRobot Corp. (a) (b) | 3,375 | 283 | |||||||||
J Alexander's Holdings, Inc. (a) | 2,372 | 12 | |||||||||
J. Jill, Inc. (a) (b) | 2,978 | 2 | |||||||||
Jack in the Box, Inc. | 3,392 | 251 | |||||||||
JAKKS Pacific, Inc. (a) | 3,885 | 3 | |||||||||
Jerash Holdings US, Inc. | 553 | 3 | |||||||||
Johnson Outdoors, Inc. Class A | 1,101 | 100 | |||||||||
K12, Inc. (a) (b) | 6,478 | 176 | |||||||||
KB Home | 12,318 | 378 | |||||||||
Kirkland's, Inc. (a) | 2,191 | 6 | |||||||||
Kontoor Brands, Inc. | 7,969 | 142 | |||||||||
Koss Corp. (a) | 262 | — | (e) | ||||||||
Kura Sushi USA, Inc. Class A (a) | 457 | 7 | |||||||||
Lakeland Industries, Inc. (a) | 1,180 | 26 | |||||||||
Lands' End, Inc. (a) (b) | 2,411 | 19 | |||||||||
Laureate Education, Inc. Class A (a) | 7,763 | 77 | |||||||||
La-Z-Boy, Inc. | 6,656 | 180 | |||||||||
Lazydays Holdings, Inc. (a) | 1,302 | 11 | |||||||||
LCI Industries | 3,634 | 418 | |||||||||
Leaf Group Ltd. (a) | 3,053 | 11 | |||||||||
Lear Corp. | 7,757 | 845 | |||||||||
Legacy Housing Corp. (a) | 958 | 14 | |||||||||
Levi Strauss & Co. Class A | 6,661 | 89 | |||||||||
Lifetime Brands, Inc. | 1,843 | 12 | |||||||||
Lincoln Educational Services Corp. (a) | 3,679 | 14 | |||||||||
Liquidity Services, Inc. (a) | 4,175 | 25 | |||||||||
Lithia Motors, Inc. Class A | 3,216 | 487 | |||||||||
LMP Automotive Holdings, Inc. (a) | 1,017 | 10 | |||||||||
Luby's, Inc. (a) | 3,303 | 5 | |||||||||
Lumber Liquidators Holdings, Inc. (a) (b) | 3,827 | 53 | |||||||||
M/I Homes, Inc. (a) | 3,788 | 130 | |||||||||
Macy's, Inc. (b) | 45,820 | 315 | |||||||||
Malibu Boats, Inc. Class A (a) | 2,693 | 140 | |||||||||
Marine Products Corp. | 1,657 | 23 | |||||||||
MarineMax, Inc. (a) | 3,034 | 68 | |||||||||
Marriott Vacations Worldwide Corp. | 6,212 | 511 | |||||||||
MasterCraft Boat Holdings, Inc. (a) | 1,935 | 37 | |||||||||
Mattel, Inc. (a) (b) | 29,164 | 282 |
See notes to financial statements.
9
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
MDC Holdings, Inc. | 8,587 | $ | 307 | ||||||||
Meritage Homes Corp. (a) | 5,436 | 414 | |||||||||
Modine Manufacturing Co. (a) | 7,349 | 41 | |||||||||
Mohawk Group Holdings, Inc. (a) | 1,642 | 9 | |||||||||
Monarch Casino & Resort, Inc. (a) | 1,773 | 60 | |||||||||
Monro, Inc. | 4,253 | 234 | |||||||||
Motorcar Parts of America, Inc. (a) | 2,391 | 42 | |||||||||
Movado Group, Inc. | 2,052 | 22 | |||||||||
Murphy USA, Inc. (a) | 4,415 | 497 | |||||||||
Muscle Maker, Inc. (a) | 1,054 | 3 | |||||||||
Nathan's Famous, Inc. | 417 | 23 | |||||||||
National Vision Holdings, Inc. (a) | 10,663 | 325 | |||||||||
Nautilus, Inc. (a) | 4,612 | 43 | |||||||||
Noodles & Co. (a) | 4,230 | 26 | |||||||||
Nordstrom, Inc. (b) | 17,422 | 270 | |||||||||
Nova Lifestyle, Inc. (a) | 596 | 1 | |||||||||
Office Depot, Inc. | 68,144 | 160 | |||||||||
Ollie's Bargain Outlet Holdings, Inc. (a) | 5,685 | 554 | |||||||||
OneWater Marine, Inc. (a) | 759 | 18 | |||||||||
Overstock.com, Inc. (a) | 6,509 | 185 | |||||||||
Oxford Industries, Inc. | 2,397 | 105 | |||||||||
P&F Industries, Inc. Class A | 212 | 1 | |||||||||
Papa John's International, Inc. (b) | 3,930 | 312 | |||||||||
Party City Holdco, Inc. (a) | 12,551 | 19 | |||||||||
Peloton Interactive, Inc. Class A (a) | 6,667 | 385 | |||||||||
Penn National Gaming, Inc. (a) (b) | 18,850 | 576 | |||||||||
Penske Automotive Group, Inc. | 5,546 | 215 | |||||||||
Perdoceo Education Corp. (a) | 9,289 | 148 | |||||||||
PetMed Express, Inc. (c) | 2,917 | 104 | |||||||||
Planet Fitness, Inc. Class A (a) | 12,791 | 776 | |||||||||
PlayAGS, Inc. (a) | 3,951 | 13 | |||||||||
Polaris, Inc. | 8,444 | 782 | |||||||||
Pool Corp. | 6,177 | 1,678 | |||||||||
Potbelly Corp. (a) (b) | 2,802 | 6 | |||||||||
Purple Innovation, Inc. (a) | 2,174 | 39 | |||||||||
Quotient Technology, Inc. (a) | 10,738 | 79 | |||||||||
Qurate Retail, Inc. Class A (a) | 65,167 | 619 | |||||||||
Rave Restaurant Group, Inc. (a) | 2,316 | 2 | |||||||||
RCI Hospitality Holdings, Inc. | 1,334 | 18 | |||||||||
Red Lion Hotels Corp. (a) | 4,005 | 9 | |||||||||
Red Robin Gourmet Burgers, Inc. (a) (b) | 1,194 | 12 | |||||||||
Red Rock Resorts, Inc. Class A | 9,666 | 105 | |||||||||
Regis Corp. (a) | 5,382 | 44 | |||||||||
Remark Holdings, Inc. (a) (b) | 13,533 | 32 | |||||||||
Rent-A-Center, Inc. | 7,957 | 221 | |||||||||
Revolve Group, Inc. (a) (b) | 1,984 | 29 | |||||||||
RH Corp. (a) (b) | 1,940 | 483 | |||||||||
Rocky Brands, Inc. | 1,144 | 24 | |||||||||
Roku, Inc. (a) | 3,044 | 355 | |||||||||
RTW Retailwinds, Inc. (a) | 5,703 | 1 |
See notes to financial statements.
10
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
RumbleON, Inc. Class B (a) | 212 | $ | 2 | ||||||||
Ruth's Hospitality Group, Inc. | 4,945 | 40 | |||||||||
Sally Beauty Holdings, Inc. (a) (b) | 11,956 | 150 | |||||||||
Scientific Games Corp. (a) | 7,307 | 113 | |||||||||
Seaworld Entertainment, Inc. (a) | 7,495 | 111 | |||||||||
Select Interior Concepts, Inc. Class A (a) | 1,917 | 7 | |||||||||
Service Corp. International | 25,759 | 1,002 | |||||||||
ServiceMaster Global Holdings, Inc. (a) | 17,747 | 633 | |||||||||
Shake Shack, Inc. Class A (a) (b) | 2,639 | 140 | |||||||||
Shiloh Industries, Inc. (a) | 2,646 | 4 | |||||||||
Shoe Carnival, Inc. (b) | 1,422 | 42 | |||||||||
Shutterstock, Inc. (b) | 2,816 | 98 | |||||||||
Signet Jewelers Ltd. | 7,569 | 78 | |||||||||
Six Flags Entertainment Corp. | 11,107 | 213 | |||||||||
Skechers USA, Inc. Class A (a) | 15,650 | 491 | |||||||||
Skyline Champion Corp. (a) | 8,957 | 218 | |||||||||
Sleep Number Corp. (a) | 3,393 | 141 | |||||||||
Smith & Wesson Brands, Inc. (a) | 8,056 | 173 | |||||||||
Sonic Automotive, Inc. Class A | 2,238 | 71 | |||||||||
Sonos, Inc. (a) | 14,656 | 214 | |||||||||
Sportsman's Warehouse Holdings, Inc. (a) | 5,388 | 77 | |||||||||
Stamps.com, Inc. (a) | 2,270 | 417 | |||||||||
Standard Motor Products, Inc. | 3,039 | 125 | |||||||||
Stein Mart, Inc. (a) | 4,954 | 2 | |||||||||
Steven Madden Ltd. | 11,182 | 276 | |||||||||
Stitch Fix, Inc. Class A (a) (b) | 1,380 | 34 | |||||||||
StoneMor, Inc. (a) | 15,096 | 12 | |||||||||
Stoneridge, Inc. (a) | 3,677 | 76 | |||||||||
Strategic Education, Inc. | 2,765 | 425 | |||||||||
Strattec Strategy Corp. | 431 | 7 | |||||||||
Sturm Ruger & Co., Inc. (c) | 2,499 | 190 | |||||||||
Summer Infant, Inc. (a) | 292 | 2 | |||||||||
Superior Group of Cos., Inc. | 1,906 | 26 | |||||||||
Superior Industries International, Inc. | 3,873 | 7 | |||||||||
Sypris Solutions, Inc. (a) | 2,114 | 2 | |||||||||
Tailored Brands, Inc. (b) | 6,968 | 7 | |||||||||
Tandy Leather Factory, Inc. (a) | 1,413 | 5 | |||||||||
Target Hospitality Corp. (a) | 6,371 | 11 | |||||||||
Taylor Morrison Home Corp. Class A (a) | 18,087 | 349 | |||||||||
Tempur Sealy International, Inc. (a) | 6,933 | 499 | |||||||||
Tenneco, Inc. Class A (a) (b) | 9,083 | 69 | |||||||||
Tesla, Inc. (a) | 21,519 | 23,237 | |||||||||
Texas Roadhouse, Inc. | 9,790 | 515 | |||||||||
The Buckle, Inc. | 3,240 | 51 | |||||||||
The Cato Corp. Class A | 3,069 | 25 | |||||||||
The Cheesecake Factory, Inc. (b) | 5,885 | 135 | |||||||||
The Children's Place, Inc. (b) | 1,614 | 60 | |||||||||
The Container Store Group, Inc. (a) | 2,739 | 9 | |||||||||
The Dixie Group, Inc. (a) | 2,101 | 2 | |||||||||
The Goodyear Tire & Rubber Co. | 35,212 | 315 |
See notes to financial statements.
11
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
The Lovesac Co. (a) (b) | 1,631 | $ | 43 | ||||||||
The Michaels Cos., Inc. (a) (b) | 11,395 | 81 | |||||||||
The New Home Co., Inc. (a) | 1,835 | 6 | |||||||||
The RealReal, Inc. (a) | 5,406 | 69 | |||||||||
The Wendy's Co. | 34,823 | 758 | |||||||||
Thor Industries, Inc. | 7,054 | 752 | |||||||||
Tilly's, Inc. Class A | 2,000 | 11 | |||||||||
Toll Brothers, Inc. | 15,130 | 493 | |||||||||
TopBuild Corp. (a) | 4,315 | 491 | |||||||||
Toughbuilt Industries, Inc. (a) | 6,009 | 5 | |||||||||
Town Sports International Holdings, Inc. (a) | 3,729 | 2 | |||||||||
Trans World Entertainment Corp. (a) | 86 | 1 | |||||||||
TravelCenters of America, Inc. (a) | 1,287 | 20 | |||||||||
TRI Pointe Group, Inc. (a) | 19,271 | 283 | |||||||||
Tupperware Brands Corp. (b) | 7,088 | 34 | |||||||||
Turtle Beach Corp. (a) | 2,181 | 32 | |||||||||
Twin River Worldwide Holdings, Inc. | 2,201 | 49 | |||||||||
U.S. Auto Parts Network, Inc. (a) | 5,167 | 45 | |||||||||
Unifi, Inc. (a) | 2,482 | 32 | |||||||||
Unique Fabricating, Inc. (a) | 1,431 | 5 | |||||||||
Universal Electronics, Inc. (a) | 2,012 | 94 | |||||||||
Universal Technical Institute, Inc. (a) | 4,715 | 33 | |||||||||
Urban Outfitters, Inc. (a) | 6,248 | 95 | |||||||||
Vail Resorts, Inc. | 6,162 | 1,123 | |||||||||
Veoneer, Inc. (a) (b) | 15,756 | 168 | |||||||||
Vera Bradley, Inc. (a) | 3,752 | 17 | |||||||||
Vince Holding Corp. (a) | 531 | 3 | |||||||||
Vista Outdoor, Inc. (a) (b) | 8,393 | 121 | |||||||||
Visteon Corp. (a) | 3,182 | 218 | |||||||||
VOXX International Corp. (a) | 2,580 | 15 | |||||||||
Wayfair, Inc. Class A (a) (b) | 7,479 | 1,479 | |||||||||
Weyco Group, Inc. | 1,106 | 24 | |||||||||
Williams-Sonoma, Inc. | 8,180 | 671 | |||||||||
Wingstop, Inc. | 4,278 | 595 | |||||||||
Winmark Corp. | 461 | 79 | |||||||||
Winnebago Industries, Inc. | 4,307 | 287 | |||||||||
Wolverine World Wide, Inc. | 11,740 | 280 | |||||||||
WW International, Inc. (a) | 6,587 | 167 | |||||||||
Wyndham Destinations, Inc. | 13,027 | 367 | |||||||||
Wyndham Hotels & Resorts, Inc. | 14,401 | 614 | |||||||||
XpresSpa Group, Inc. (a) (b) | 9,116 | 38 | |||||||||
YETI Holdings, Inc. (a) (b) | 7,603 | 325 | |||||||||
ZAGG, Inc. (a) (b) | 4,663 | 15 | |||||||||
Zovio, Inc. (a) | 5,068 | 16 | |||||||||
Zumiez, Inc. (a) | 3,119 | 85 | |||||||||
86,257 | |||||||||||
Consumer Staples (2.9%): | |||||||||||
22nd Century Group, Inc. (a) (b) | 19,844 | 15 | |||||||||
Alico, Inc. | 679 | 21 | |||||||||
Arcadia Biosciences, Inc. (a) | 1,193 | 4 |
See notes to financial statements.
12
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
B&G Foods, Inc. (b) | 8,732 | $ | 213 | ||||||||
BellRing Brands, Inc. Class A (a) | 5,767 | 115 | |||||||||
Beyond Meat, Inc. (a) | 9,104 | 1,219 | |||||||||
BJ's Wholesale Club Holdings, Inc. (a) | 18,178 | 678 | |||||||||
Bunge Ltd. | 21,272 | 875 | |||||||||
Calavo Growers, Inc. | 2,547 | 160 | |||||||||
Cal-Maine Foods, Inc. (a) (b) | 3,363 | 150 | |||||||||
Casey's General Stores, Inc. | 4,826 | 723 | |||||||||
Celsius Holdings, Inc. (a) (b) | 4,427 | 52 | |||||||||
Central Garden & Pet Co. Class A (a) | 4,780 | 162 | |||||||||
Coca-Cola Consolidated, Inc. | 630 | 144 | |||||||||
Coffee Holding Co., Inc. (a) | 871 | 3 | |||||||||
Craft Brew Alliance, Inc. (a) (b) | 1,807 | 28 | |||||||||
Crimson Wine Group Ltd. (a) | 2,658 | 14 | |||||||||
Cyanotech Corp. (a) | 678 | 2 | |||||||||
Darling Ingredients, Inc. (a) | 22,588 | 556 | |||||||||
Eastside Distilling, Inc. (a) | 1,460 | 2 | |||||||||
Edgewell Personal Care Co. (a) | 7,493 | 232 | |||||||||
elf Beauty, Inc. (a) | 5,801 | 111 | |||||||||
Energizer Holdings, Inc. | 6,330 | 301 | |||||||||
Farmer Brothers Co. (a) | 1,854 | 14 | |||||||||
Flowers Foods, Inc. | 30,238 | 676 | |||||||||
Fresh Del Monte Produce, Inc. | 4,253 | 105 | |||||||||
Freshpet, Inc. (a) | 6,365 | 532 | |||||||||
Grocery Outlet Holding Corp. (a) | 6,724 | 274 | |||||||||
Guardion Health Sciences, Inc. (a) | 10,797 | 5 | |||||||||
Herbalife Ltd. (a) | 20,126 | 905 | |||||||||
HF Foods Group, Inc. Class A (a) (b) | 5,612 | 51 | |||||||||
Hostess Brands, Inc. (a) | 11,642 | 142 | |||||||||
Ifresh, Inc. (a) | 2,261 | 2 | |||||||||
Ingles Markets, Inc. Class A | 1,908 | 82 | |||||||||
Ingredion, Inc. | 10,360 | 860 | |||||||||
Inter Parfums, Inc. | 2,545 | 123 | |||||||||
J&J Snack Foods Corp. | 2,224 | 283 | |||||||||
John B Sanfilippo & Son, Inc. | 1,203 | 103 | |||||||||
Jones Soda Co. (a) | 7,880 | 2 | |||||||||
Keurig Dr Pepper, Inc. | 52,052 | 1,478 | |||||||||
Lancaster Colony Corp. | 2,962 | 459 | |||||||||
Landec Corp. (a) | 4,170 | 33 | |||||||||
Lifevantage Corp. (a) | 2,263 | 31 | |||||||||
Lifeway Foods, Inc. (a) | 708 | 2 | |||||||||
Limoneira Co. | 2,251 | 33 | |||||||||
Mannatech, Inc. | 246 | 4 | |||||||||
Medifast, Inc. (b) | 1,605 | 222 | |||||||||
MGP Ingredients, Inc. (b) | 1,874 | 69 | |||||||||
National Beverage Corp. (a) (b) | 2,274 | 139 | |||||||||
Natural Alternatives International, Inc. (a) | 958 | 7 | |||||||||
Natural Grocers by Vitamin Cottage, Inc. | 2,234 | 33 | |||||||||
Nature's Sunshine Products, Inc. (a) | 2,784 | 25 | |||||||||
New Age Beverages Corp. (a) (b) | 13,856 | 21 |
See notes to financial statements.
13
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Nu Skin Enterprises, Inc. Class A | 7,766 | $ | 296 | ||||||||
Ocean Bio-Chem, Inc. | 826 | 12 | |||||||||
Oil-Dri Corp. of America | 767 | 27 | |||||||||
Performance Food Group Co. (a) (b) | 18,043 | 526 | |||||||||
Pilgrim's Pride Corp. (a) | 8,712 | 147 | |||||||||
Post Holdings, Inc. (a) | 9,743 | 854 | |||||||||
PriceSmart, Inc. | 2,212 | 133 | |||||||||
PURE Bioscience, Inc. (a) | 8,473 | 16 | |||||||||
Pyxus International, Inc. (a) (k) | 1,357 | 1 | |||||||||
Reed's, Inc. (a) | 9,946 | 10 | |||||||||
Reliv International, Inc. (a) | 206 | 1 | |||||||||
Revlon, Inc. Class A (a) (b) | 718 | 7 | |||||||||
Reynolds Consumer Products, Inc. | 9,167 | 318 | |||||||||
RiceBran Technologies (a) | 4,584 | 4 | |||||||||
Rite Aid Corp. (a) (b) | 8,554 | 146 | |||||||||
Sanderson Farms, Inc. | 2,991 | 347 | |||||||||
Seaboard Corp. | 45 | 132 | |||||||||
Seneca Foods Corp. Class A (a) | 924 | 31 | |||||||||
Shineco, Inc. (a) | 4,229 | 2 | |||||||||
SpartanNash Co. | 5,100 | 108 | |||||||||
Spectrum Brands Holdings, Inc. | 6,154 | 282 | |||||||||
Sprouts Farmers Market, Inc. (a) | 15,844 | 405 | |||||||||
The Andersons, Inc. | 4,758 | 65 | |||||||||
The Boston Beer Co., Inc. Class A (a) (b) | 1,044 | 560 | |||||||||
The Chefs' Warehouse, Inc. (a) (b) | 4,394 | 60 | |||||||||
The Hain Celestial Group, Inc. (a) (b) | 16,114 | 508 | |||||||||
The Simply Good Foods Co. (a) | 12,670 | 235 | |||||||||
Tootsie Roll Industries, Inc. (b) | 3,146 | 108 | |||||||||
TreeHouse Foods, Inc. (a) | 6,358 | 278 | |||||||||
Turning Point Brands, Inc. | 1,349 | 34 | |||||||||
U.S. Foods Holding Corp. (a) | 34,076 | 672 | |||||||||
United Natural Foods, Inc. (a) | 7,033 | 128 | |||||||||
United-Guardian, Inc. | 487 | 7 | |||||||||
Universal Corp. | 3,533 | 150 | |||||||||
USANA Health Sciences, Inc. (a) | 1,697 | 125 | |||||||||
Vector Group Ltd. | 19,048 | 191 | |||||||||
Veru, Inc. (a) | 8,447 | 28 | |||||||||
Village Super Market, Inc. Class A | 1,540 | 43 | |||||||||
WD-40 Co. (b) | 1,862 | 368 | |||||||||
Weis Markets, Inc. (c) | 2,940 | 147 | |||||||||
Willamette Valley Vineyards, Inc. (a) | 643 | 4 | |||||||||
Youngevity International, Inc. (a) | 1,985 | 3 | |||||||||
20,014 | |||||||||||
Energy (1.6%): | |||||||||||
Abraxas Petroleum Corp. (a) (b) | 26,615 | 6 | |||||||||
Adams Resources & Energy, Inc. | 434 | 12 | |||||||||
Aemetis, Inc. (a) | 2,435 | 2 | |||||||||
Amplify Energy Corp. | 5,117 | 6 | |||||||||
Amyris, Inc. (a) (b) | 25,634 | 109 | |||||||||
Antero Midstream Corp. | 44,866 | 229 |
See notes to financial statements.
14
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Antero Resources Corp. (a) | 36,174 | $ | 92 | ||||||||
Arch Resources, Inc. (a) | 2,011 | 57 | |||||||||
Archrock, Inc. | 18,770 | 122 | |||||||||
Aspen Aerogels, Inc. (a) | 3,622 | 24 | |||||||||
Barnwell Industries, Inc. (a) | 723 | 1 | |||||||||
Basic Energy Services, Inc. (a) | 3,571 | 1 | |||||||||
Bonanza Creek Energy, Inc. (a) | 2,235 | 33 | |||||||||
BP Prudhoe Bay Royalty Trust | 3,599 | 12 | |||||||||
Brigham Minerals, Inc. | 2,487 | 31 | |||||||||
Bristow Group, Inc. (a) | 5,020 | 70 | |||||||||
Cactus, Inc. Class A (b) | 3,928 | 81 | |||||||||
California Resources Corp. (a) (b) | 7,801 | 10 | |||||||||
Callon Petroleum Co. (a) (b) | 57,407 | 66 | |||||||||
Camber Energy, Inc. (a) | 1,737 | 2 | |||||||||
Centennial Resource Development, Inc. Class A (a) (b) | 46,123 | 41 | |||||||||
Centrus Energy Corp. Class A (a) | 894 | 9 | |||||||||
ChampionX Corp. (a) | 27,840 | 273 | |||||||||
Cheniere Energy, Inc. (a) | 40,270 | 1,945 | |||||||||
Chesapeake Energy Corp. (a) (b) (k) | 1,414 | 7 | |||||||||
Cimarex Energy Co. | 15,793 | 434 | |||||||||
Clean Energy Fuels Corp. (a) | 22,973 | 51 | |||||||||
CNX Resources Corp. (a) | 27,992 | 242 | |||||||||
Comstock Resources, Inc. (a) | 11,692 | 51 | |||||||||
CONSOL Energy, Inc. (a) | 3,064 | 16 | |||||||||
Contango Oil & Gas Co. (a) | 12,368 | 28 | |||||||||
Continental Resources, Inc. (b) | 13,507 | 237 | |||||||||
Contura Energy, Inc. (a) | 2,675 | 8 | |||||||||
Covia Holdings Corp. (a) (b) (f) (k) | 7,769 | 2 | |||||||||
Cross Timbers Royalty Trust (b) | 1,009 | 7 | |||||||||
Dawson Geophysical Co. (a) | 3,059 | 4 | |||||||||
Delek U.S. Holdings, Inc. | 11,496 | 200 | |||||||||
Denbury Resources, Inc. (a) (b) | 73,238 | 20 | |||||||||
Diamond S Shipping, Inc. (a) | 3,877 | 31 | |||||||||
Dorian LPG Ltd. (a) | 7,949 | 62 | |||||||||
Dril-Quip, Inc. (a) | 4,127 | 123 | |||||||||
ENGlobal Corp. (a) | 2,581 | 3 | |||||||||
Enservco Corp. (a) | 8,041 | 1 | |||||||||
EQT Corp. | 31,793 | 378 | |||||||||
Equitrans Midstream Corp. | 33,446 | 278 | |||||||||
Evolution Petroleum Corp. | 4,877 | 14 | |||||||||
Exterran Corp. (a) | 4,794 | 26 | |||||||||
Extraction Oil & Gas, Inc. (a) (b) (k) | 13,006 | 2 | |||||||||
Forum Energy Technologies, Inc. (a) | 13,669 | 7 | |||||||||
FTS International, Inc. (a) | 262 | 2 | |||||||||
Geospace Technologies Corp. (a) | 1,424 | 11 | |||||||||
Gevo, Inc. (a) | 2,402 | 2 | |||||||||
Goodrich Petroleum Corp. (a) | 1,791 | 13 | |||||||||
Green Plains, Inc. (a) | 4,775 | 49 | |||||||||
Gulf Island Fabrication, Inc. (a) | 2,031 | 6 | |||||||||
Gulfport Energy Corp. (a) | 20,967 | 23 |
See notes to financial statements.
15
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Hallador Energy Co. | 4,399 | $ | 3 | ||||||||
Helix Energy Solutions Group, Inc. (a) | 21,943 | 76 | |||||||||
Helmerich & Payne, Inc. | 15,352 | 301 | |||||||||
Hi-Crush, Inc. (a) | 15,948 | 2 | |||||||||
Highpoint Resources Corp. (a) | 16,634 | 5 | |||||||||
Houston American Energy Corp. (a) | 13,166 | 2 | |||||||||
Hugoton Royalty Trust (a) | 6,054 | 1 | |||||||||
ION Geophysical Corp. (a) | 1,922 | 4 | |||||||||
KLX Energy Services Holdings, Inc. (a) (b) | 3,700 | 8 | |||||||||
Laredo Petroleum, Inc. (a) | 1,350 | 19 | |||||||||
Liberty Oilfield Services, Inc. Class A | 2,088 | 11 | |||||||||
Lilis Energy, Inc. (a) (k) | 15,236 | 1 | |||||||||
Lonestar Resources US, Inc. Class A (a) | 3,016 | 1 | |||||||||
Magnolia Oil & Gas Corp. Class A (a) | 17,397 | 105 | |||||||||
Mammoth Energy Services, Inc. (a) | 5,916 | 7 | |||||||||
Matador Resources Co. (a) (b) | 17,638 | 150 | |||||||||
Matrix Service Co. (a) | 3,428 | 33 | |||||||||
Mexco Energy Corp. (a) | 151 | — | (e) | ||||||||
Mitcham Industries, Inc. (a) | 1,556 | 2 | |||||||||
Montage Resources Corp. (a) | 3,673 | 15 | |||||||||
Murphy Oil Corp. | 15,751 | 217 | |||||||||
Nabors Industries Ltd. (a) (b) | 1,129 | 42 | |||||||||
NACCO Industries, Inc. Class A | 603 | 14 | |||||||||
National Energy Services Reunited Corp. (a) | 3,236 | 22 | |||||||||
Natural Gas Services Group, Inc. (a) | 1,862 | 12 | |||||||||
NCS Multistage Holdings, Inc. (a) | 2,458 | 1 | |||||||||
Newpark Resources, Inc. (a) | 12,848 | 29 | |||||||||
Nextdecade Corp. (a) (b) | 18,659 | 40 | |||||||||
Nextier Oilfield Solutions, Inc. (a) (b) | 33,071 | 81 | |||||||||
Nine Energy Service, Inc. (a) | 2,297 | 4 | |||||||||
Northern Oil And Gas, Inc. (a) (b) | 53,220 | 45 | |||||||||
Nuverra Environmental Solutions, Inc. (a) | 1,458 | 3 | |||||||||
Oasis Petroleum, Inc. (a) (b) | 44,677 | 34 | |||||||||
Oceaneering International, Inc. (a) | 12,685 | 81 | |||||||||
Oil States International, Inc. (a) | 7,275 | 35 | |||||||||
Overseas Shipholding Group, Inc. Class A (a) | 10,553 | 20 | |||||||||
Pacific Coast Oil Trust | 6,163 | 2 | |||||||||
Pacific Ethanol, Inc. (a) | 8,677 | 6 | |||||||||
Panhandle Oil And Gas, Inc. Class A | 2,371 | 6 | |||||||||
Parsley Energy, Inc. Class A | 52,696 | 563 | |||||||||
Patterson-UTI Energy, Inc. | 28,223 | 98 | |||||||||
PBF Energy, Inc. Class A | 15,131 | 155 | |||||||||
PDC Energy, Inc. (a) | 14,394 | 179 | |||||||||
Peabody Energy Corp. (c) | 9,856 | 28 | |||||||||
Penn Virginia Corp. (a) | 2,218 | 21 | |||||||||
Permianville Royalty Trust | 3,773 | 5 | |||||||||
ProPetro Holding Corp. (a) | 10,468 | 54 | |||||||||
QEP Resources, Inc. | 35,019 | 45 | |||||||||
Quintana Energy Services, Inc. (a) | 1,363 | 1 | |||||||||
Range Resources Corp. (b) | 33,541 | 189 |
See notes to financial statements.
16
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Ranger Energy Services, Inc. (a) | 697 | $ | 2 | ||||||||
Renewable Energy Group, Inc. (a) (b) | 5,515 | 137 | |||||||||
REX American Resources Corp. (a) | 711 | 49 | |||||||||
RigNet, Inc. (a) | 2,133 | 5 | |||||||||
Rosehill Resources, Inc. (a) (b) | 599 | — | (e) | ||||||||
Royale Energy, Inc. (a) | 4,826 | 1 | |||||||||
RPC, Inc. (a) (b) | 11,582 | 36 | |||||||||
SAExploration Holdings, Inc. (a) | 642 | 1 | |||||||||
SandRidge Energy, Inc. (a) | 5,655 | 7 | |||||||||
SEACOR Holdings, Inc. (a) | 2,495 | 71 | |||||||||
SEACOR Marine Holdings, Inc. (a) | 2,942 | 8 | |||||||||
Select Energy Services, Inc. Class A (a) | 8,665 | 42 | |||||||||
SFL Corp. Ltd. | 14,455 | 134 | |||||||||
Silverbow Resources, Inc. (a) (b) | 1,859 | 6 | |||||||||
SM Energy Co. | 15,389 | 58 | |||||||||
Smart Sand, Inc. (a) | 4,246 | 4 | |||||||||
Solaris Oilfield Infrastructure, Inc. Class A | 3,122 | 23 | |||||||||
Southwestern Energy Co. (a) | 65,578 | 168 | |||||||||
Stabilis Energy, Inc. (a) | 483 | 1 | |||||||||
Superior Drilling Products, Inc. (a) | 1,925 | 1 | |||||||||
Superior Energy Services, Inc. (a) | 2,120 | 2 | |||||||||
Talos Energy, Inc. (a) | 5,823 | 54 | |||||||||
Targa Resources Corp. | 36,453 | 731 | |||||||||
Teekay Corp. (a) (b) | 9,180 | 22 | |||||||||
Tellurian, Inc. (a) (b) | 23,811 | 27 | |||||||||
Tengasco, Inc. (a) | 1,795 | 1 | |||||||||
TETRA Technologies, Inc. (a) (b) | 15,242 | 8 | |||||||||
Tidewater, Inc. (a) | 4,539 | 25 | |||||||||
Torchlight Energy Resources, Inc. (a) | 12,613 | 5 | |||||||||
U.S. Energy Corp. Wyoming (a) | 137 | 1 | |||||||||
Uranium Energy Corp. (a) | 29,068 | 26 | |||||||||
VAALCO Energy, Inc. (a) | 8,985 | 11 | |||||||||
Vertex Energy, Inc. (a) | 5,515 | 4 | |||||||||
Voc Energy Trust | 2,144 | 5 | |||||||||
W&T Offshore, Inc. (a) | 15,960 | 36 | |||||||||
Westwater Resources, Inc. (a) | 966 | 3 | |||||||||
Whiting Petroleum Corp. (a) (b) (k) | 11,682 | 13 | |||||||||
World Fuel Services Corp. (c) | 9,476 | 244 | |||||||||
WPX Energy, Inc. (a) | 69,604 | 444 | |||||||||
Zion Oil & Gas, Inc. (a) (b) | 29,151 | 9 | |||||||||
10,775 | |||||||||||
Financials (14.8%): | |||||||||||
1347 Property Insurance Holdings, Inc. (a) | 793 | 4 | |||||||||
1895 Bancorp of Wisconsin, Inc. (a) | 375 | 3 | |||||||||
1st Source Corp. | 2,705 | 96 | |||||||||
Affiliated Managers Group, Inc. | 5,799 | 432 | |||||||||
AG Mortgage Investment Trust, Inc. (b) | 4,968 | 16 | |||||||||
AGNC Investment Corp. | 85,586 | 1,105 | |||||||||
Alleghany Corp. | 2,190 | 1,071 | |||||||||
Allegiance Bancshares, Inc. | 2,951 | 75 |
See notes to financial statements.
17
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Ally Financial, Inc. | 57,096 | $ | 1,133 | ||||||||
Altabancorp | 3,002 | 67 | |||||||||
Amerant Bancorp, Inc. (a) | 1,418 | 21 | |||||||||
American Equity Investment Life Holding Co. | 12,311 | 304 | |||||||||
American Financial Group, Inc. | 12,084 | 767 | |||||||||
American National Bankshares, Inc. | 1,732 | 43 | |||||||||
American National Insurance Co. | 3,481 | 251 | |||||||||
American River Bankshares | 925 | 10 | |||||||||
Ameris Bancorp | 10,157 | 240 | |||||||||
AMERISAFE, Inc. | 2,824 | 173 | |||||||||
AmeriServ Financial, Inc. | 2,866 | 9 | |||||||||
Ames National Corp. | 1,442 | 28 | |||||||||
Annaly Capital Management, Inc. | 218,867 | 1,437 | |||||||||
Anworth Mortgage Asset Corp. | 15,138 | 26 | |||||||||
Apollo Commercial Real Estate Finance, Inc. | 21,725 | 213 | |||||||||
Apollo Investment Corp. | 10,972 | 105 | |||||||||
Arbor Realty Trust, Inc. (b) | 17,796 | 164 | |||||||||
Arch Capital Group Ltd. (a) | 53,201 | 1,523 | |||||||||
Ares Capital Corp. (b) | 71,060 | 1,027 | |||||||||
Ares Commercial Real Estate Corp. | 4,724 | 43 | |||||||||
Ares Management Corp. Class A | 32,064 | 1,273 | |||||||||
Argo Group International Holdings Ltd. | 5,125 | 179 | |||||||||
Arlington Asset Investment Corp. Class A | 5,572 | 17 | |||||||||
ARMOUR Residential REIT, Inc. | 9,122 | 86 | |||||||||
Arrow Financial Corp. | 2,343 | 70 | |||||||||
Artisan Partners Asset Management, Inc. Class A | 6,740 | 219 | |||||||||
Ashford, Inc. (a) | 284 | 3 | |||||||||
Assetmark Financial Holdings, Inc. (a) | 3,652 | 100 | |||||||||
Associated Bancorp | 23,513 | 322 | |||||||||
Associated Capital Group, Inc. Class A | 527 | 19 | |||||||||
Assured Guaranty Ltd. | 13,883 | 339 | |||||||||
Asta Funding, Inc. (a) | 463 | 6 | |||||||||
Atlantic American Corp. (a) | 893 | 1 | |||||||||
Atlantic Union Bankshares Corp. | 12,307 | 285 | |||||||||
Atlanticus Holdings Corp. (a) | 1,280 | 13 | |||||||||
Atlas Financial Holdings, Inc. (a) | 1,707 | 1 | |||||||||
Axis Capital Holdings Ltd. | 12,473 | 506 | |||||||||
Axos Financial, Inc. (a) | 8,124 | 179 | |||||||||
Bain Capital Specialty Finance, Inc. | 3,475 | 39 | |||||||||
Banc of California, Inc. | 7,267 | 79 | |||||||||
BancFirst Corp. | 2,141 | 87 | |||||||||
Bancorp 34, Inc. | 507 | 6 | |||||||||
BancorpSouth Bank | 13,005 | 296 | |||||||||
Bank of Hawaii Corp. | 5,988 | 368 | |||||||||
Bank of Marin Bancorp | 1,917 | 64 | |||||||||
Bank of South Carolina Corp. | 744 | 12 | |||||||||
Bank of the James Financial Group, Inc. | 693 | 7 | |||||||||
Bank OZK Class A (b) | 19,893 | 467 | |||||||||
Bank7 Corp. | 418 | 5 | |||||||||
Bankfinancial Corp. | 2,150 | 18 |
See notes to financial statements.
18
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
BankUnited, Inc. | 14,136 | $ | 286 | ||||||||
Bankwell Financial Group, Inc. | 1,138 | 18 | |||||||||
Banner Corp. | 5,084 | 193 | |||||||||
Bar Harbor Bankshares | 2,455 | 55 | |||||||||
Barings BDC, Inc. | 8,064 | 64 | |||||||||
Baycom Corp. (a) | 1,954 | 25 | |||||||||
BCB Bancorp, Inc. | 2,729 | 25 | |||||||||
Benefytt Technologies, Inc. (a) (b) | 1,988 | 41 | |||||||||
Berkshire Hills Bancorp, Inc. | 7,425 | 82 | |||||||||
BGC Partners, Inc. Class A | 38,474 | 105 | |||||||||
BlackRock Capital Investment Corp. | 11,457 | 31 | |||||||||
BlackRock TCP Capital Corp. | 9,713 | 89 | |||||||||
Blackstone Mortgage Trust, Inc. Class A (b) | 20,938 | 504 | |||||||||
Blucora, Inc. (a) | 6,920 | 79 | |||||||||
Bogota Financial Corp. (a) | 995 | 9 | |||||||||
BOK Financial Corp. | 4,611 | 260 | |||||||||
Boston Private Financial Holdings, Inc. | 11,828 | 81 | |||||||||
Bridge Bancorp, Inc. | 2,754 | 63 | |||||||||
Bridgewater Bancshares, Inc. (a) | 3,973 | 41 | |||||||||
Brighthouse Financial, Inc. (a) | 14,358 | 399 | |||||||||
Broadmark Realty Capital, Inc. | 21,324 | 202 | |||||||||
Broadway Financial Corp. (a) | 1,297 | 3 | |||||||||
Brookline Bancorp, Inc. Class A | 11,411 | 115 | |||||||||
Brown & Brown, Inc. | 36,691 | 1,495 | |||||||||
BRP Group, Inc. Class A (a) | 2,777 | 48 | |||||||||
Bryn Mawr Bank Corp. | 2,949 | 82 | |||||||||
Business First Bancshares, Inc. | 2,259 | 35 | |||||||||
Byline Bancorp, Inc. Class A | 4,195 | 55 | |||||||||
C&F Financial Corp. | 613 | 20 | |||||||||
Cadence Bancorp | 16,939 | 150 | |||||||||
Cambridge Bancorp Class A | 1,108 | 66 | |||||||||
Camden National Corp. | 2,163 | 75 | |||||||||
Capital Bancorp, Inc. (a) | 1,673 | 18 | |||||||||
Capital City Bank Group, Inc. | 2,148 | 45 | |||||||||
Capital Southwest Corp. (b) | 2,845 | 38 | |||||||||
Capitala Finance Corp. | 2,735 | 7 | |||||||||
Capitol Federal Financial, Inc. | 18,797 | 207 | |||||||||
Capstar Financial Holdings, Inc. | 2,709 | 33 | |||||||||
Capstead Mortgage Corp. | 11,183 | 61 | |||||||||
Cathay General Bancorp | 11,905 | 313 | |||||||||
CBM Bancorp, Inc. | 588 | 7 | |||||||||
CBTX, Inc. Class A | 3,021 | 63 | |||||||||
Central Federal Corp. (a) | 760 | 8 | |||||||||
Central Pacific Financial Corp. | 4,066 | 65 | |||||||||
Central Valley Community Bancorp | 1,993 | 31 | |||||||||
Century Bancorp, Inc. Class A | 505 | 39 | |||||||||
Chemung Financial Corp. | 706 | 19 | |||||||||
Cherry Hill Mortgage Investment Corp. | 2,438 | 22 | |||||||||
Chimera Investment Corp. (b) | 30,380 | 292 | |||||||||
CIT Group, Inc. | 14,058 | 291 |
See notes to financial statements.
19
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Citizens & Northern Corp. | 2,179 | $ | 45 | ||||||||
Citizens, Inc. (a) | 7,013 | 42 | |||||||||
City Holding Co. | 2,335 | 152 | |||||||||
Civista Bancshares, Inc. | 2,535 | 39 | |||||||||
CNA Financial Corp. | 5,020 | 161 | |||||||||
CNB Financial Corp. Class A | 2,589 | 46 | |||||||||
CNO Financial Group, Inc. | 21,250 | 331 | |||||||||
Coastal Financial Corp. (a) | 1,484 | 22 | |||||||||
Codorus Valley Bancorp, Inc. | 1,379 | 19 | |||||||||
Cohen & Co., Inc. (a) | 55 | 1 | |||||||||
Cohen & Steers, Inc. | 4,418 | 301 | |||||||||
Colony Bankcorp, Inc. | 1,293 | 15 | |||||||||
Colony Credit Real Estate, Inc. | 13,826 | 97 | |||||||||
Columbia Banking System, Inc. | 9,627 | 273 | |||||||||
Columbia Financial, Inc. (a) (c) | 8,899 | 124 | |||||||||
Commerce Bancshares, Inc. Class C | 15,002 | 893 | |||||||||
Community Bank System, Inc. | 7,620 | 434 | |||||||||
Community First Bancshares, Inc. (a) | 585 | 5 | |||||||||
Community Trust Bancorp, Inc. Class A | 2,813 | 92 | |||||||||
Conifer Holdings, Inc. (a) | 564 | 1 | |||||||||
ConnectOne Bancorp, Inc. Class A | 5,542 | 89 | |||||||||
Consumer Portfolio Services, Inc. (a) | 2,446 | 7 | |||||||||
County Bancorp, Inc. | 911 | 19 | |||||||||
Cowen, Inc. Class A (b) | 4,004 | 65 | |||||||||
Crawford & Co. Class B | 1,426 | 10 | |||||||||
Credit Acceptance Corp. (a) (b) | 1,959 | 821 | |||||||||
Crescent Capital BDC, Inc. | 4,642 | 59 | |||||||||
Crossfirst Bankshares, Inc. (a) | 7,535 | 74 | |||||||||
Cullen/Frost Bankers, Inc. (b) | 8,309 | 622 | |||||||||
Curo Group Holdings Corp. | 3,155 | 26 | |||||||||
Customers Bancorp, Inc. Class A (a) | 4,604 | 55 | |||||||||
CVB Financial Corp. | 18,455 | 346 | |||||||||
Diamond Hill Investment Group, Inc. | 506 | 58 | |||||||||
Dime Community Bancshares, Inc. | 4,479 | 61 | |||||||||
Donegal Group, Inc. Class A | 2,050 | 29 | |||||||||
Donnelley Financial Solutions, Inc. (a) | 4,877 | 41 | |||||||||
Dynex Capital, Inc. (b) | 3,246 | 46 | |||||||||
Eagle Bancorp Montana, Inc. | 997 | 17 | |||||||||
Eagle Bancorp, Inc. | 4,660 | 153 | |||||||||
Eagle Financial Bancorp, Inc. | 245 | 4 | |||||||||
East West Bancorp, Inc. | 18,793 | 682 | |||||||||
Eaton Vance Corp. | 16,928 | 653 | |||||||||
eHealth, Inc. (a) | 3,532 | 347 | |||||||||
Elevate Credit, Inc. (a) | 3,295 | 5 | |||||||||
Ellington Financial, Inc. | 6,773 | 80 | |||||||||
Ellington Residential Mortgage REIT | 2,071 | 21 | |||||||||
Emergent Capital, Inc. (a) | 11,470 | 4 | |||||||||
Employers Holdings, Inc. | 4,393 | 132 | |||||||||
Encore Capital Group, Inc. (a) (b) | 2,941 | 101 | |||||||||
Enova International, Inc. (a) | 4,243 | 63 |
See notes to financial statements.
20
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Enstar Group Ltd. (a) | 2,599 | $ | 397 | ||||||||
Enterprise Bancorp, Inc. | 1,860 | 44 | |||||||||
Enterprise Financial Services Corp. | 4,135 | 129 | |||||||||
Equitable Holdings, Inc. | 52,271 | 1,009 | |||||||||
Equity Bancshares, Inc. Class A (a) | 2,147 | 37 | |||||||||
Equus Total Return, Inc. (a) | 1,364 | 2 | |||||||||
Erie Indemnity Co. Class A | 2,952 | 566 | |||||||||
Esquire Financial Holdings, Inc. (a) | 1,031 | 17 | |||||||||
ESSA Bancorp, Inc. | 1,679 | 23 | |||||||||
Evans Bancorp, Inc. | 768 | 18 | |||||||||
Evercore, Inc. | 6,271 | 369 | |||||||||
Exantas Capital Corp. | 4,903 | 13 | |||||||||
EZCORP, Inc. Class A (a) | 6,575 | 41 | |||||||||
FactSet Research Systems, Inc. | 5,732 | 1,882 | |||||||||
Farmers & Merchants Bancorp, Inc. | 1,759 | 37 | |||||||||
FB Financial Corp. | 2,428 | 60 | |||||||||
FBL Financial Group, Inc. Class A | 4,144 | 149 | |||||||||
Federal Agricultural Mortgage Corp. Class C | 1,245 | 80 | |||||||||
Federal Home Loan Mortgage Corp. (a) (b) | 93,999 | 206 | |||||||||
Federal National Mortgage Association (a) (b) | 194,722 | 423 | |||||||||
Federated Hermes, Inc. | 12,560 | 298 | |||||||||
Fednat Holding Co. | 1,678 | 19 | |||||||||
FFBW, Inc. (a) | 570 | 5 | |||||||||
Fidelity D&D Bancorp, Inc. (b) | 778 | 37 | |||||||||
Fidelity National Financial, Inc. | 44,746 | 1,371 | |||||||||
Fidus Investment Corp. | 3,904 | 35 | |||||||||
Financial Institutions, Inc. | 2,505 | 47 | |||||||||
First Acceptance Corp. (a) | 2,914 | 2 | |||||||||
First American Financial Corp. | 16,111 | 774 | |||||||||
First Bancorp, Inc. | 31,545 | 176 | |||||||||
First Bancorp, Inc. | 1,617 | 35 | |||||||||
First Bancorp, Inc. Class A | 4,542 | 114 | |||||||||
First Busey Corp. | 8,598 | 160 | |||||||||
First Choice Bancorp | 1,727 | 28 | |||||||||
First Citizens BancShares, Inc. Class A | 1,333 | 540 | |||||||||
First Commonwealth Financial Corp. | 14,190 | 117 | |||||||||
First Community Bankshares, Inc. | 2,500 | 56 | |||||||||
First Financial Bancorp | 13,012 | 181 | |||||||||
First Financial Bankshares, Inc. | 20,302 | 588 | |||||||||
First Financial Corp. Class A | 1,937 | 71 | |||||||||
First Financial Northwest, Inc. | 1,266 | 12 | |||||||||
First Hawaiian, Inc. | 20,301 | 350 | |||||||||
First Horizon National Corp. | 43,522 | 433 | |||||||||
First Internet Bancorp | 1,549 | 26 | |||||||||
First Interstate BancSystem, Inc. Class A | 5,319 | 165 | |||||||||
First Merchants Corp. | 8,462 | 233 | |||||||||
First Midwest Bancorp, Inc. | 16,714 | 223 | |||||||||
First Seacoast Bancorp Class B (a) | 460 | 3 | |||||||||
First U.S. Bancshares, Inc. | 1,033 | 7 | |||||||||
First United Corp. | 1,113 | 15 |
See notes to financial statements.
21
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
First Western Financial, Inc. (a) | 1,025 | $ | 15 | ||||||||
FirstCash, Inc. Class A | 5,854 | 395 | |||||||||
Flagstar Bancorp, Inc. | 5,247 | 154 | |||||||||
Flushing Financial Corp. | 4,080 | 47 | |||||||||
FNB Corp. | 48,344 | 363 | |||||||||
FNCB Bancorp, Inc. | 3,087 | 18 | |||||||||
Focus Financial Partners, Inc. Class A (a) | 2,807 | 93 | |||||||||
Franklin Financial Network, Inc. | 2,182 | 56 | |||||||||
FS KKR Capital Corp. (b) | 21,160 | 296 | |||||||||
Fulton Financial Corp. (b) | 24,211 | 255 | |||||||||
FVCBankcorp, Inc. (a) | 2,013 | 22 | |||||||||
Gain Capital Holdings, Inc. | 3,115 | 19 | |||||||||
GAMCO Investors, Inc. Class A | 1,676 | 22 | |||||||||
Garrison Capital, Inc. | 2,699 | 9 | |||||||||
Genworth Financial, Inc. (a) | 76,439 | 177 | |||||||||
German American Bancorp, Inc. Class A | 4,189 | 130 | |||||||||
Glacier Bancorp, Inc. | 13,955 | 492 | |||||||||
Gladstone Capital Corp. | 5,244 | 38 | |||||||||
Gladstone Investment Corp. | 5,556 | 57 | |||||||||
Glen Burnie Bancorp | 405 | 3 | |||||||||
Goldman Sachs BDC, Inc. | 6,763 | 110 | |||||||||
Golub Capital BDC, Inc. | 16,423 | 191 | |||||||||
Goosehead Insurance, Inc. Class A (a) | 1,404 | 106 | |||||||||
Granite Point Mortgage Trust, Inc. (b) | 9,270 | 67 | |||||||||
Great Ajax Corp. | 3,276 | 30 | |||||||||
Great Elm Capital Group, Inc. (a) | 3,594 | 8 | |||||||||
Great Southern Bancorp, Inc. Class A | 1,776 | 72 | |||||||||
Great Western Bancorp, Inc. | 7,031 | 97 | |||||||||
Green Dot Corp. Class A (a) | 7,215 | 354 | |||||||||
Greenhill & Co., Inc. | 1,642 | 16 | |||||||||
Guaranty Bancshares, Inc. | 1,648 | 43 | |||||||||
GWG Holdings, Inc. (a) | 777 | 6 | |||||||||
Hallmark Financial Services, Inc. (a) | 2,895 | 10 | |||||||||
Hamilton Lane, Inc. Class A | 2,269 | 153 | |||||||||
Hancock Whitney Corp. | 12,186 | 258 | |||||||||
Hanmi Financial Corp. | 4,428 | 43 | |||||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 11,475 | 327 | |||||||||
HarborOne Bancorp, Inc. (a) | 5,205 | 44 | |||||||||
Harvest Capital Credit Corp. | 691 | 3 | |||||||||
Hawthorn Bancshares, Inc. | 1,032 | 20 | |||||||||
HBT Financial, Inc. | 1,708 | 23 | |||||||||
HCI Group, Inc. | 953 | 44 | |||||||||
Heartland Financial USA, Inc. | 5,818 | 195 | |||||||||
Hercules Capital, Inc. | 18,599 | 195 | |||||||||
Heritage Commerce Corp. | 8,236 | 62 | |||||||||
Heritage Financial Corp. | 4,587 | 92 | |||||||||
Heritage Insurance Holdings, Inc. | 4,412 | 58 | |||||||||
Hilltop Holdings, Inc. | 12,589 | 232 | |||||||||
HMN Financial, Inc. (a) | 723 | 11 | |||||||||
Home Bancorp, Inc. | 1,393 | 37 |
See notes to financial statements.
22
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Home BancShares, Inc. | 21,936 | $ | 337 | ||||||||
HomeStreet, Inc. | 3,069 | 76 | |||||||||
Hope Bancorp, Inc. | 17,813 | 164 | |||||||||
Horace Mann Educators Corp. | 5,970 | 219 | |||||||||
Horizon Bancorp, Inc. Class A | 6,404 | 68 | |||||||||
Horizon Technology Finance Corp. | 2,834 | 31 | |||||||||
Houlihan Lokey, Inc. | 2,965 | 165 | |||||||||
Hunt Cos Finance Trust, Inc. | 3,061 | 8 | |||||||||
IBERIABANK Corp. | 8,235 | 375 | |||||||||
Impac Mortgage Holdings, Inc. (a) | 2,110 | 4 | |||||||||
Income Opportunity Realty Investors, Inc. (a) | 133 | 1 | |||||||||
Independence Holding Co. | 944 | 29 | |||||||||
Independent Bank Corp. | 3,129 | 46 | |||||||||
Independent Bank Corp. | 4,763 | 320 | |||||||||
Independent Bank Group, Inc. | 5,573 | 226 | |||||||||
Interactive Brokers Group, Inc. | 8,646 | 361 | |||||||||
International Bancshares Corp. | 8,404 | 269 | |||||||||
International Fcstone, Inc. (a) | 2,326 | 128 | |||||||||
Invesco Mortgage Capital, Inc. (b) | 26,787 | 100 | |||||||||
Investar Holding Corp. | 1,711 | 25 | |||||||||
Investcorp Credit Management BDC, Inc. | 2,334 | 8 | |||||||||
Investors Bancorp, Inc. | 37,015 | 315 | |||||||||
Investors Title Co. | 153 | 19 | |||||||||
Jefferies Financial Group, Inc. | 35,257 | 548 | |||||||||
Kearny Financial Corp. | 10,550 | 86 | |||||||||
Kemper Corp. (b) | 10,093 | 732 | |||||||||
Kinsale Capital Group, Inc. | 3,068 | 476 | |||||||||
KKR Real Estate Finance Trust, Inc. | 4,290 | 71 | |||||||||
Ladder Capital Corp. | 9,522 | 77 | |||||||||
Lakeland Bancorp, Inc. Class A | 7,890 | 90 | |||||||||
Lakeland Financial Corp. | 4,018 | 187 | |||||||||
Legg Mason, Inc. | 13,759 | 685 | |||||||||
LendingTree, Inc. (a) (b) | 989 | 286 | |||||||||
Level One Bancorp, Inc. | 844 | 14 | |||||||||
Limestone Bancorp, Inc. (a) | 706 | 9 | |||||||||
Live Oak Bancshares, Inc. | 4,972 | 72 | |||||||||
LPL Financial Holdings, Inc. | 11,801 | 925 | |||||||||
Luther Burbank Corp. | 2,136 | 21 | |||||||||
Macatawa Bank Corp. | 4,817 | 38 | |||||||||
Maiden Holdings Ltd. (a) | 9,116 | 11 | |||||||||
Main Street Capital Corp. (b) | 10,909 | 340 | |||||||||
Manning & Napier, Inc. | 2,573 | 7 | |||||||||
Markel Corp. (a) | 2,201 | 2,031 | |||||||||
Marlin Business Services Corp. | 1,699 | 14 | |||||||||
MBIA, Inc. (a) | 9,106 | 66 | |||||||||
Medallion Financial Corp. (a) | 3,545 | 9 | |||||||||
Medley Capital Corp. (a) | 7,510 | 6 | |||||||||
Medley Management, Inc. Class A (a) | 773 | 1 | |||||||||
Mercantile Bank Corp. | 2,397 | 54 | |||||||||
Merchants Bancorp | 2,851 | 53 |
See notes to financial statements.
23
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Mercury General Corp. | 4,560 | $ | 186 | ||||||||
Meridian Bancorp, Inc. | 6,343 | 74 | |||||||||
Meta Financial Group, Inc. | 5,062 | 92 | |||||||||
Metropolitan Bank Holding Corp. (a) | 1,324 | 42 | |||||||||
MFA Financial, Inc. | 65,521 | 163 | |||||||||
MGIC Investment Corp. | 53,511 | 437 | |||||||||
Midland States Bancorp, Inc. | 3,433 | 51 | |||||||||
MidWestOne Financial Group, Inc. | 2,571 | 51 | |||||||||
Moelis & Co. Class A (b) | 4,506 | 140 | |||||||||
Monroe Capital Corp. | 3,437 | 24 | |||||||||
Morningstar, Inc. | 3,741 | 527 | |||||||||
MVB Financial Corp. | 1,789 | 24 | |||||||||
MVC Capital, Inc. | 2,469 | 16 | |||||||||
National Bank Holdings Corp. Class A | 3,648 | 98 | |||||||||
National Bankshares, Inc. | 1,026 | 29 | |||||||||
National General Holdings Corp. | 11,666 | 252 | |||||||||
National Western Life Group, Inc. Class A | 318 | 65 | |||||||||
Navient Corp. | 29,983 | 211 | |||||||||
NBT Bancorp, Inc. | 6,302 | 194 | |||||||||
Nelnet, Inc. Class A | 3,095 | 148 | |||||||||
New Mountain Finance Corp. | 14,978 | 139 | |||||||||
New Residential Investment Corp. | 65,694 | 488 | |||||||||
New York Community Bancorp, Inc. | 60,845 | 620 | |||||||||
New York Mortgage Trust, Inc. | 53,312 | 139 | |||||||||
Newtek Business Services Corp. | 3,339 | 61 | |||||||||
Nexpoint Real Estate Finance, Inc. | 884 | 15 | |||||||||
NI Holdings, Inc. (a) | 1,354 | 20 | |||||||||
Nicholas Financial, Inc. (a) | 1,865 | 14 | |||||||||
NMI Holdings, Inc. Class A (a) | 12,232 | 197 | |||||||||
Northfield Bancorp, Inc. | 6,630 | 76 | |||||||||
Northrim Bancorp, Inc. | 984 | 25 | |||||||||
Northwest Bancshares, Inc. (c) | 19,090 | 195 | |||||||||
Norwood Financial Corp. | 1,065 | 26 | |||||||||
Oaktree Specialty Lending Corp. | 20,383 | 91 | |||||||||
Oceanfirst Financial Corp. | 9,574 | 169 | |||||||||
Ocwen Financial Corp. (a) | 17,008 | 11 | |||||||||
OFG Bancorp | 6,992 | 93 | |||||||||
OFS Capital Corp. | 1,757 | 8 | |||||||||
Old National Bancorp | 23,875 | 329 | |||||||||
Old Point Financial Corp. | 745 | 11 | |||||||||
Old Republic International Corp. | 43,446 | 709 | |||||||||
Old Second Bancorp, Inc. | 4,342 | 34 | |||||||||
On Deck Capital, Inc. (a) | 9,135 | 7 | |||||||||
OneMain Holdings, Inc. | 20,777 | 510 | |||||||||
OP Bancorp | 2,252 | 16 | |||||||||
Oportun Financial Corp. (a) | 2,192 | 29 | |||||||||
Oppenheimer Holdings, Inc. Class A | 1,592 | 35 | |||||||||
Orchid Island Capital, Inc. | 10,246 | 48 | |||||||||
Origin Bancorp, Inc. | 3,236 | 71 | |||||||||
Ottawa Bancorp, Inc. | 483 | 5 |
See notes to financial statements.
24
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Oxford Square Capital Corp. | 8,338 | $ | 23 | ||||||||
Pacific Mercantile Bancorp (a) | 3,127 | 11 | |||||||||
Pacific Premier Bancorp, Inc. | 12,482 | 271 | |||||||||
PacWest Bancorp | 17,430 | 344 | |||||||||
Palomar Holdings, Inc. (a) | 3,099 | 266 | |||||||||
Park National Corp. | 2,604 | 183 | |||||||||
Parke Bancorp, Inc. | 1,993 | 27 | |||||||||
Patriot National Bancorp, Inc. | 239 | 1 | |||||||||
PCSB Financial Corp. | 2,160 | 27 | |||||||||
PDL Community Bancorp (a) | 1,077 | 11 | |||||||||
Peapack-Gladstone Financial Corp. | 2,979 | 56 | |||||||||
PennantPark Floating Rate Capital Ltd. | 6,519 | 55 | |||||||||
Pennantpark Investment Corp. | 11,273 | 40 | |||||||||
Penns Woods Bancorp, Inc. | 1,183 | 27 | |||||||||
Pennymac Financial Services | 7,993 | 334 | |||||||||
Pennymac Mortgage Investment Trust | 14,269 | 250 | |||||||||
Peoples Bancorp of North Carolina, Inc. | 847 | 15 | |||||||||
Peoples Bancorp, Inc. | 3,166 | 67 | |||||||||
Pinnacle Financial Partners, Inc. | 10,967 | 461 | |||||||||
Pioneer Bancorp, Inc. (a) | 1,965 | 18 | |||||||||
Piper Sandler Cos. | 2,655 | 157 | |||||||||
Plumas Bancorp | 793 | 18 | |||||||||
Popular, Inc. | 12,682 | 471 | |||||||||
Portman Ridge Finance Corp. | 6,843 | 8 | |||||||||
PRA Group, Inc. (a) | 6,049 | 234 | |||||||||
Preferred Bank | 1,855 | 79 | |||||||||
Premier Financial Bancorp, Inc. | 2,095 | 27 | |||||||||
Premier Financial Corp. | 5,958 | 105 | |||||||||
Primerica, Inc. | 5,142 | 600 | |||||||||
ProAssurance Corp. | 7,786 | 113 | |||||||||
Prosight Global, Inc. (a) | 4,445 | 40 | |||||||||
Prospect Capital Corp. (b) | 51,546 | 263 | |||||||||
Prosperity Bancshares, Inc. | 14,333 | 852 | |||||||||
Protective Insurance Corp. Class B | 597 | 9 | |||||||||
Provident Bancorp, Inc. | 1,900 | 15 | |||||||||
Provident Financial Holdings, Inc. | 1,012 | 14 | |||||||||
Provident Financial Services, Inc. | 8,976 | 130 | |||||||||
Pzena Investment Management, Inc. Class A | 2,764 | 15 | |||||||||
QCR Holdings, Inc. | 2,494 | 78 | |||||||||
Radian Group, Inc. | 26,890 | 417 | |||||||||
Randolph Bancorp, Inc. (a) | 848 | 9 | |||||||||
RBB Bancorp | 2,090 | 29 | |||||||||
Ready Capital Corp. (b) | 8,378 | 73 | |||||||||
Red River Bancshares, Inc. | 961 | 42 | |||||||||
Redwood Trust, Inc. | 16,218 | 114 | |||||||||
Regional Management Corp. (a) | 1,655 | 29 | |||||||||
Reinsurance Group of America, Inc. | 9,536 | 748 | |||||||||
RenaissanceRe Holdings Ltd. | 7,480 | 1,279 | |||||||||
Renasant Corp. | 8,875 | 221 | |||||||||
Republic Bancorp, Inc. Class A | 1,933 | 63 |
See notes to financial statements.
25
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Republic First Bancorp, Inc. (a) | 7,322 | $ | 18 | ||||||||
Rhinebeck Bancorp, Inc. (a) | 712 | 5 | |||||||||
Richmond Mutual Bancorporation, Inc. | 2,275 | 26 | |||||||||
Riverview Bancorp, Inc. | 3,108 | 18 | |||||||||
RLI Corp. (b) | 6,420 | 527 | |||||||||
S&T Bancorp, Inc. | 5,674 | 133 | |||||||||
Sachem Capital Corp. | 3,199 | 9 | |||||||||
Safeguard Scientifics, Inc. | 2,850 | 20 | |||||||||
Safety Insurance Group, Inc. (c) | 1,751 | 134 | |||||||||
Salisbury Bancorp, Inc. | 476 | 20 | |||||||||
Sandy Spring Bancorp, Inc. | 7,425 | 184 | |||||||||
Santander Consumer USA Holdings, Inc. (b) | 12,958 | 239 | |||||||||
Saratoga Investment Corp. | 1,566 | 25 | |||||||||
SB Financial Group, Inc. | 1,153 | 19 | |||||||||
Sculptor Capital Management, Inc. | 7,385 | 95 | |||||||||
Seacoast Banking Corp. of Florida (a) | 6,292 | 128 | |||||||||
Security National Financial Corp. Class A (a) | 1,879 | 13 | |||||||||
SEI Investments Co. | 22,883 | 1,258 | |||||||||
Selective Insurance Group, Inc. | 9,035 | 477 | |||||||||
Selectquote, Inc. (a) | 4,897 | 124 | |||||||||
ServisFirst Bancshares, Inc. | 7,968 | 285 | |||||||||
Severn Bancorp, Inc. | 1,746 | 11 | |||||||||
Shore Bancshares, Inc. | 1,980 | 22 | |||||||||
Siebert Financial Corp. (a) | 1,134 | 6 | |||||||||
Sierra Bancorp | 2,401 | 45 | |||||||||
Signature Bank | 7,690 | 823 | |||||||||
Silvercrest Asset Management Group, Inc. Class A | 1,231 | 16 | |||||||||
Silvergate Capital Corp. Class A (a) | 565 | 8 | |||||||||
Simmons First National Corp. Class A | 15,758 | 270 | |||||||||
Sirius International Insurance Group Ltd. (a) | 776 | 6 | |||||||||
Sixth Street Specialty Lending, Inc. | 9,585 | 158 | |||||||||
SLM Corp. | 49,825 | 350 | |||||||||
Solar Capital Ltd. | 5,969 | 96 | |||||||||
Solar Senior Capital Ltd. | 2,456 | 32 | |||||||||
South Plains Financial, Inc. | 1,853 | 26 | |||||||||
South State Corp. | 10,617 | 506 | |||||||||
Southern First Bancshares, Inc. (a) | 1,026 | 28 | |||||||||
Southern Missouri Bancorp, Inc. | 1,259 | 31 | |||||||||
Southern National Bancorp of Virginia, Inc. | 3,351 | 32 | |||||||||
Southside Bancshares, Inc. (c) | 4,774 | 132 | |||||||||
Spirit of Texas Bancshares, Inc. (a) | 2,459 | 30 | |||||||||
Starwood Property Trust, Inc. | 44,612 | 667 | |||||||||
State Auto Financial Corp. | 2,356 | 42 | |||||||||
Stellus Capital Investment Corp. | 3,275 | 24 | |||||||||
Sterling Bancorp | 2,604 | 9 | |||||||||
Sterling Bancorp | 30,081 | 353 | |||||||||
Stewart Information Services Corp. | 3,425 | 111 | |||||||||
Stifel Financial Corp. | 9,677 | 459 | |||||||||
Stock Yards Bancorp, Inc. | 3,583 | 144 | |||||||||
Summit Financial Group, Inc. | 2,007 | 33 |
See notes to financial statements.
26
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Suro Capital Corp. (b) | 2,108 | $ | 18 | ||||||||
Synovus Financial Corp. | 22,784 | 468 | |||||||||
TCF Financial Corp. | 23,530 | 693 | |||||||||
TCG BDC, Inc. | 8,900 | 76 | |||||||||
TD Ameritrade Holding Corp. | 46,386 | 1,687 | |||||||||
Territorial Bancorp, Inc. | 1,437 | 34 | |||||||||
Texas Capital Bancshares, Inc. (a) | 7,801 | 241 | |||||||||
TFS Financial Corp. | 8,950 | 128 | |||||||||
The Bancorp, Inc. (a) | 7,627 | 75 | |||||||||
The Bank of Princeton | 960 | 19 | |||||||||
The Blackstone Group, Inc. Class A | 107,002 | 6,062 | |||||||||
The Carlyle Group, Inc. (b) | 33,972 | 948 | |||||||||
The First of Long Island Corp. | 3,729 | 61 | |||||||||
The Hanover Insurance Group, Inc. | 5,877 | 596 | |||||||||
THL Credit, Inc. | 5,936 | 19 | |||||||||
Timberland Bancorp, Inc. | 1,216 | 22 | |||||||||
Tompkins Financial Corp. (g) | 2,056 | 133 | |||||||||
Towne Bank | 10,502 | 198 | |||||||||
TPG RE Finance Trust, Inc. | 7,476 | 64 | |||||||||
Tradeweb Markets, Inc. Class A | 6,837 | 398 | |||||||||
Tremont Mortgage Trust | 1,386 | 4 | |||||||||
TriCo Bancshares | 4,250 | 129 | |||||||||
TriplePoint Venture Growth BDC Corp. | 5,170 | 53 | |||||||||
Tristate Capital Holdings, Inc. (a) | 4,115 | 65 | |||||||||
Triumph Bancorp, Inc. (a) | 3,526 | 86 | |||||||||
Trupanion, Inc. (a) (b) | 4,663 | 199 | |||||||||
TrustCo Bank Corp. | 13,945 | 88 | |||||||||
Trustmark Corp. | 8,318 | 204 | |||||||||
Two Harbors Investment Corp. | 43,233 | 218 | |||||||||
U.S. Global Investors, Inc. Class A | 1,820 | 3 | |||||||||
UMB Financial Corp. | 5,666 | 292 | |||||||||
Umpqua Holdings Corp. | 31,474 | 335 | |||||||||
Union Bankshares, Inc. | 602 | 11 | |||||||||
United Bancorp, Inc. | 896 | 10 | |||||||||
United Bankshares, Inc. | 19,640 | 543 | |||||||||
United Community Banks, Inc. | 11,453 | 230 | |||||||||
United Fire Group, Inc. | 3,197 | 89 | |||||||||
United Insurance Holdings Corp. | 3,686 | 29 | |||||||||
United Security Bancshares | 2,369 | 16 | |||||||||
Unity Bancorp, Inc. | 1,391 | 20 | |||||||||
Universal Insurance Holdings, Inc. | 4,741 | 84 | |||||||||
Univest Financial Corp. | 4,515 | 73 | |||||||||
Valley National Bancorp | 59,749 | 467 | |||||||||
Value Line, Inc. | 162 | 4 | |||||||||
Velocity Financial, Inc. (a) | 1,926 | 8 | |||||||||
Vericity, Inc. (b) | 601 | 6 | |||||||||
Veritex Holdings, Inc. | 6,862 | 121 | |||||||||
Victory Capital Holdings, Inc. Class A (j) | 2,055 | 35 | |||||||||
Village Bank and Trust Financial Corp. (a) | 118 | 4 | |||||||||
Virtu Financial, Inc. Class A | 4,861 | 115 |
See notes to financial statements.
27
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Virtus Investment Partners, Inc. | 1,036 | $ | 120 | ||||||||
Voya Financial, Inc. | 19,301 | 900 | |||||||||
Waddell & Reed Financial, Inc. Class A | 8,055 | 125 | |||||||||
Walker & Dunlop, Inc. | 4,596 | 234 | |||||||||
Washington Federal, Inc. | 11,330 | 304 | |||||||||
Washington Trust Bancorp, Inc. | 2,206 | 72 | |||||||||
Webster Financial Corp. | 11,826 | 338 | |||||||||
WesBanco, Inc. | 10,486 | 213 | |||||||||
West Bancorp, Inc. | 2,434 | 43 | |||||||||
Westamerica Bancorp | 3,035 | 174 | |||||||||
Westbury Bancorp, Inc. (a) | 609 | 12 | |||||||||
Western Alliance Bancorp | 15,771 | 598 | |||||||||
Western Asset Mortgage Capital Corp. (b) | 8,175 | 22 | |||||||||
Western New England Bancorp, Inc. | 3,666 | 21 | |||||||||
Westwood Holdings Group, Inc. | 1,330 | 21 | |||||||||
White Mountains Insurance Group Ltd. | 423 | 376 | |||||||||
WhiteHorse Finance, Inc. | 2,626 | 27 | |||||||||
Wintrust Financial Corp. | 8,228 | 359 | |||||||||
WisdomTree Investments, Inc. | 17,623 | 61 | |||||||||
World Acceptance Corp. (a) (b) | 1,137 | 74 | |||||||||
WSFS Financial Corp. | 7,411 | 213 | |||||||||
100,753 | |||||||||||
Health Care (16.1%): | |||||||||||
10X Genomics, Inc. Class A (a) | 1,819 | 162 | |||||||||
1Life Healthcare, Inc. (a) (b) | 9,332 | 339 | |||||||||
89bio, Inc. (a) | 951 | 19 | |||||||||
9 Meters Biopharma, Inc. (a) | 14,725 | 8 | |||||||||
Abeona Therapeutics, Inc. (a) | 11,820 | 34 | |||||||||
Acadia Healthcare Co., Inc. (a) | 11,515 | 289 | |||||||||
ACADIA Pharmaceuticals, Inc. (a) | 19,393 | 940 | |||||||||
Accelerate Diagnostics, Inc. (a) (b) | 5,575 | 85 | |||||||||
Acceleron Pharma, Inc. (a) | 5,521 | 526 | |||||||||
Accuray, Inc. (a) (b) | 14,306 | 29 | |||||||||
AcelRx Pharmaceuticals, Inc. (a) | 12,709 | 15 | |||||||||
Acer Therapeutics, Inc. (a) (b) | 896 | 3 | |||||||||
Achieve Life Sciences, Inc. (a) | 6,244 | 2 | |||||||||
Aclaris Therapeutics, Inc. (a) | 5,773 | 9 | |||||||||
Acorda Therapeutics, Inc. (a) (b) | 6,052 | 4 | |||||||||
Adamis Pharmaceuticals Corp. (a) | 11,777 | 6 | |||||||||
Adaptive Biotechnologies Corp. (a) | 11,520 | 557 | |||||||||
Addus HomeCare Corp. (a) | 2,302 | 213 | |||||||||
Adial Pharmaceuticals, Inc. (a) | 2,013 | 3 | |||||||||
Aduro Biotech, Inc. (a) | 8,567 | 20 | |||||||||
Advaxis, Inc. (a) | 9,319 | 5 | |||||||||
Adverum Biotechnologies, Inc. (a) | 10,800 | 226 | |||||||||
Aeglea BioTherapeutics, Inc. (a) | 7,049 | 65 | |||||||||
Aerie Pharmaceuticals, Inc. (a) (b) | 7,266 | 107 | |||||||||
Agenus, Inc. (a) (b) | 23,693 | 93 | |||||||||
AgeX Therapeutics, Inc. (a) (b) | 3,546 | 3 | |||||||||
Agile Therapeutics, Inc. (a) | 11,144 | 31 |
See notes to financial statements.
28
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Agios Pharmaceuticals, Inc. (a) (b) | 7,530 | $ | 403 | ||||||||
Aileron Therapeutics, Inc. (a) | 5,072 | 6 | |||||||||
AIM ImmunoTech, Inc. (a) (b) | 5,486 | 14 | |||||||||
Aimmune Therapeutics, Inc. (a) (b) | 5,706 | 95 | |||||||||
Akcea Therapeutics, Inc. (a) | 1,195 | 16 | |||||||||
Akebia Therapeutics, Inc. (a) | 22,327 | 303 | |||||||||
Akero Therapeutics, Inc. (a) | 1,446 | 36 | |||||||||
Akers Biosciences, Inc. (a) | 1,029 | 4 | |||||||||
Albireo Pharma, Inc. (a) | 2,040 | 54 | |||||||||
Aldeyra Therapeutics, Inc. (a) | 4,158 | 17 | |||||||||
Alector, Inc. (a) | 6,911 | 169 | |||||||||
Alimera Sciences, Inc. (a) | 626 | 4 | |||||||||
Alkermes PLC (a) | 21,085 | 409 | |||||||||
Allakos, Inc. (a) (b) | 2,050 | 147 | |||||||||
Allena Pharmaceuticals, Inc. (a) | 3,720 | 6 | |||||||||
Allied Healthcare Products, Inc. (a) | 290 | 3 | |||||||||
Allogene Therapeutics, Inc. (a) | 12,128 | 519 | |||||||||
Allscripts Healthcare Solutions, Inc. (a) | 22,138 | 150 | |||||||||
Alnylam Pharmaceuticals, Inc. (a) | 13,127 | 1,944 | |||||||||
Alphatec Holdings, Inc. (a) | 8,639 | 41 | |||||||||
Alpine Immune Sciences, Inc. (a) | 1,500 | 15 | |||||||||
Altimmune, Inc. (a) | 2,976 | 32 | |||||||||
AMAG Pharmaceuticals, Inc. (a) (b) | 4,553 | 35 | |||||||||
Amedisys, Inc. (a) | 4,899 | 972 | |||||||||
American Renal Associates Holdings, Inc. Class A (a) | 2,269 | 15 | |||||||||
American Shared Hospital Services (a) | 612 | 1 | |||||||||
Amicus Therapeutics, Inc. (a) | 35,958 | 542 | |||||||||
AMN Healthcare Services, Inc. (a) | 6,776 | 307 | |||||||||
Amneal Pharmaceuticals, Inc. (a) | 46,822 | 223 | |||||||||
Amphastar Pharmaceuticals, Inc. (a) | 5,671 | 127 | |||||||||
Ampio Pharmaceuticals, Inc. (a) | 25,778 | 16 | |||||||||
AnaptysBio, Inc. (a) | 3,899 | 87 | |||||||||
AngioDynamics, Inc. (a) | 5,388 | 55 | |||||||||
ANI Pharmaceuticals, Inc. (a) | 1,451 | 47 | |||||||||
Anika Therapeutics, Inc. (a) | 1,839 | 69 | |||||||||
Anixa Biosciences, Inc. (a) | 3,864 | 12 | |||||||||
Annovis Bio, Inc. (a) | 449 | 2 | |||||||||
Antares Pharma, Inc. (a) | 24,497 | 67 | |||||||||
Apellis Pharmaceuticals, Inc. (a) | 9,903 | 323 | |||||||||
Apollo Endosurgery, Inc. (a) | 2,345 | 4 | |||||||||
Apollo Medical Holdings, Inc. (a) | 5,980 | 99 | |||||||||
Applied Genetic Technologies Corp. (a) | 3,769 | 21 | |||||||||
Applied Therapeutics, Inc. (a) (b) | 2,106 | 76 | |||||||||
Aprea Therapeutics, Inc. (a) (b) | 1,274 | 49 | |||||||||
Aptevo Therapeutics, Inc. (a) | 494 | 4 | |||||||||
Aptinyx, Inc. (a) | 4,223 | 18 | |||||||||
Apyx Medical Corp. (a) | 4,886 | 27 | |||||||||
AquaBounty Technologies, Inc. (a) | 2,482 | 8 | |||||||||
Aquestive Therapeutics, Inc. (a) (b) | 5,026 | 24 | |||||||||
Aravive, Inc. (a) | 1,502 | 17 |
See notes to financial statements.
29
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
ARCA biopharma, Inc. (a) | 307 | $ | 2 | ||||||||
Arcus Biosciences, Inc. (a) (b) | 5,852 | 145 | |||||||||
Arcutis Biotherapeutics, Inc. (a) (b) | 3,015 | 91 | |||||||||
Ardelyx, Inc. (a) | 11,530 | 80 | |||||||||
Arena Pharmaceuticals, Inc. (a) | 8,731 | 550 | |||||||||
Aridis Pharmaceuticals, Inc. (a) | 1,005 | 7 | |||||||||
Arrowhead Pharmaceuticals, Inc. (a) | 15,229 | 658 | |||||||||
Arvinas, Inc. (a) (b) | 5,002 | 168 | |||||||||
Aspira Women's Health, Inc. (a) | 9,005 | 35 | |||||||||
Assembly Biosciences, Inc. (a) | 5,171 | 121 | |||||||||
Assertio Holdings, Inc. (a) | 17,195 | 15 | |||||||||
Atara Biotherapeutics, Inc. (a) | 11,314 | 165 | |||||||||
Athenex, Inc. (a) | 9,332 | 128 | |||||||||
Atossa Therapeutics, Inc. (a) | 1,517 | 6 | |||||||||
Atreca, Inc. Class A (a) | 1,230 | 26 | |||||||||
AtriCure, Inc. (a) | 6,445 | 290 | |||||||||
Atrion Corp. | 173 | 110 | |||||||||
aTyr Pharma, Inc. (a) | 1,259 | 6 | |||||||||
Avanos Medical, Inc. Class I (a) | 5,461 | 160 | |||||||||
Avantor, Inc. (a) | 54,770 | 931 | |||||||||
Avenue Therapeutics, Inc. (a) | 1,234 | 13 | |||||||||
AVEO Pharmaceuticals, Inc. (a) | 3,720 | 19 | |||||||||
Avid Bioservices, Inc. (a) (b) | 8,262 | 54 | |||||||||
Avinger, Inc. (a) | 4,901 | 2 | |||||||||
Avrobio, Inc. (a) | 4,969 | 87 | |||||||||
Axcella Health, Inc. (a) | 3,495 | 19 | |||||||||
Axogen, Inc. (a) (b) | 5,884 | 54 | |||||||||
Axonics Modulation Technologies, Inc. (a) (b) | 4,470 | 157 | |||||||||
Axsome Therapeutics, Inc. (a) | 4,240 | 349 | |||||||||
Ayala Pharmaceuticals, Inc. (a) | 607 | 6 | |||||||||
Aytu BioScience, Inc. (a) (b) | 17,996 | 26 | |||||||||
AzurRx BioPharma, Inc. (a) | 4,221 | 4 | |||||||||
Baudax Bio, Inc. (a) (b) | 2,866 | 12 | |||||||||
Beam Therapeutics, Inc. (a) | 4,242 | 119 | |||||||||
Bellerophon Therapeutics, Inc. (a) | 1,455 | 18 | |||||||||
Bellicum Pharmaceuticals, Inc. (a) | 798 | 6 | |||||||||
Bioanalytical Systems, Inc. (a) | 1,297 | 7 | |||||||||
Biocept, Inc. (a) | 22,043 | 16 | |||||||||
BioCryst Pharmaceuticals, Inc. (a) | 27,287 | 130 | |||||||||
BioDelivery Sciences International, Inc. (a) | 15,804 | 69 | |||||||||
Biolase, Inc. (a) | 7,370 | 3 | |||||||||
BioLife Solutions, Inc. (a) (b) | 2,535 | 41 | |||||||||
BioMarin Pharmaceutical, Inc. (a) | 22,196 | 2,739 | |||||||||
Biomerica, Inc. (a) (b) | 1,635 | 12 | |||||||||
BioNano Genomics, Inc. (a) (b) | 13,404 | 7 | |||||||||
BioSpecifics Technologies Corp. (a) | 937 | 57 | |||||||||
Bio-Techne Corp. | 5,849 | 1,545 | |||||||||
BioTelemetry, Inc. (a) (b) | 4,938 | 223 | |||||||||
Bioxcel Therapeutics, Inc. (a) | 1,869 | 99 | |||||||||
Black Diamond Therapeutics, Inc. (a) (b) | 2,657 | 112 |
See notes to financial statements.
30
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
bluebird bio, Inc. (a) | 7,402 | $ | 452 | ||||||||
Blueprint Medicines Corp. (a) | 7,289 | 569 | |||||||||
Brickell Biotech, Inc. (a) | 3,867 | 4 | |||||||||
Bridgebio Pharma, Inc. (a) (b) | 10,407 | 339 | |||||||||
Brookdale Senior Living, Inc. (a) | 27,101 | 80 | |||||||||
Bruker Corp. | 9,074 | 369 | |||||||||
Cabaletta Bio, Inc. (a) | 474 | 5 | |||||||||
Caladrius Biosciences, Inc. (a) | 2,133 | 4 | |||||||||
Calithera Biosciences, Inc. (a) | 10,304 | 54 | |||||||||
Calyxt, Inc. (a) | 1,055 | 5 | |||||||||
Cancer Genetics, Inc. (a) | 326 | 1 | |||||||||
Cantel Medical Corp. | 4,606 | 204 | |||||||||
Capital Senior Living Corp. (a) | 3,646 | 3 | |||||||||
Capricor Therapeutics, Inc. (a) | 2,279 | 10 | |||||||||
Cara Therapeutics, Inc. (a) (b) | 6,138 | 105 | |||||||||
Cardiff Oncology, Inc. (a) | 2,686 | 13 | |||||||||
Cardiovascular Systems, Inc. (a) | 4,323 | 136 | |||||||||
CareDx, Inc. (a) | 7,023 | 249 | |||||||||
CASI Pharmaceuticals, Inc. (a) | 7,805 | 20 | |||||||||
Cassava Sciences, Inc. (a) | 3,875 | 12 | |||||||||
Castle Biosciences, Inc. (a) | 2,080 | 78 | |||||||||
Castlight Health, Inc. Class B (a) | 7,040 | 6 | |||||||||
Catabasis Pharmaceuticals, Inc. (a) | 2,919 | 19 | |||||||||
Catalent, Inc. (a) | 20,054 | 1,471 | |||||||||
Catalyst Biosciences, Inc. (a) | 3,595 | 21 | |||||||||
Catalyst Pharmaceuticals, Inc. (a) | 16,345 | 76 | |||||||||
Catasys, Inc. (a) (b) | 1,314 | 33 | |||||||||
Celcuity, Inc. (a) | 810 | 6 | |||||||||
Celldex Therapeutics, Inc. (a) | 5,378 | 70 | |||||||||
Cellectar Biosciences, Inc. (a) | 3,874 | 5 | |||||||||
CEL-SCI Corp. (a) (b) | 6,012 | 90 | |||||||||
Celsion Corp. (a) | 4,674 | 17 | |||||||||
Cerecor, Inc. (a) | 11,744 | 31 | |||||||||
Cerus Corp. (a) | 21,507 | 142 | |||||||||
Champions Oncology, Inc. (a) | 939 | 9 | |||||||||
Change Healthcare, Inc. (a) | 40,828 | 457 | |||||||||
Charles River Laboratories International, Inc. (a) | 7,655 | 1,335 | |||||||||
Checkpoint Therapeutics, Inc. (a) | 6,572 | 13 | |||||||||
Chembio Diagnostics, Inc. (a) | 2,984 | 10 | |||||||||
Chemed Corp. | 2,429 | 1,095 | |||||||||
Chemocentryx, Inc. (a) | 6,758 | 389 | |||||||||
Chiasma, Inc. (a) | 3,851 | 21 | |||||||||
Chimerix, Inc. (a) | 7,601 | 24 | |||||||||
Cidara Therapeutics, Inc. (a) | 5,206 | 19 | |||||||||
Clearside Biomedical, Inc. (a) | 6,261 | 12 | |||||||||
Cleveland BioLabs, Inc. (a) | 803 | 2 | |||||||||
Clovis Oncology, Inc. (a) (b) | 13,019 | 88 | |||||||||
CNS Pharmaceuticals, Inc. (a) (b) | 1,134 | 2 | |||||||||
Cocrystal Pharma, Inc. (a) | 5,436 | 8 | |||||||||
Codexis, Inc. (a) | 8,137 | 93 |
See notes to financial statements.
31
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Co-Diagnostics, Inc. (a) (b) | 4,340 | $ | 84 | ||||||||
Cohbar, Inc. (a) | 5,516 | 9 | |||||||||
Coherus Biosciences, Inc. (a) (b) | 9,896 | 177 | |||||||||
Collegium Pharmaceutical, Inc. (a) | 4,677 | 82 | |||||||||
Community Health Systems, Inc. (a) | 12,877 | 39 | |||||||||
Computer Programs & Systems, Inc. | 1,757 | 40 | |||||||||
Concert Pharmaceuticals, Inc. (a) | 4,039 | 40 | |||||||||
Conformis, Inc. (a) (b) | 11,298 | 9 | |||||||||
CONMED Corp. (b) | 3,887 | 280 | |||||||||
Constellation Pharmaceuticals, Inc. (a) | 4,312 | 130 | |||||||||
Corcept Therapeutics, Inc. (a) | 16,956 | 285 | |||||||||
Cortexyme, Inc. (a) | 2,226 | 103 | |||||||||
CorVel Corp. (a) | 1,420 | 101 | |||||||||
Corvus Pharmaceuticals, Inc. (a) | 3,666 | 10 | |||||||||
Covetrus, Inc. (a) (b) | 13,176 | 236 | |||||||||
Crinetics Pharmaceuticals, Inc. (a) | 3,038 | 53 | |||||||||
Cross Country Healthcare, Inc. (a) | 4,221 | 26 | |||||||||
CryoLife, Inc. (a) | 4,950 | 95 | |||||||||
CryoPort, Inc. (a) (b) | 6,023 | 182 | |||||||||
CTI BioPharma Corp. (a) | 11,150 | 13 | |||||||||
Cue BioPharma, Inc. (a) | 4,545 | 111 | |||||||||
Cumberland Pharmaceuticals, Inc. (a) | 1,408 | 5 | |||||||||
Curis, Inc. (a) | 7,569 | 9 | |||||||||
Cutera, Inc. (a) | 2,613 | 32 | |||||||||
Cyclacel Pharmaceuticals, Inc. (a) | 776 | 4 | |||||||||
Cyclerion Therapeutics, Inc. (a) | 3,220 | 19 | |||||||||
Cytokinetics, Inc. (a) | 7,899 | 186 | |||||||||
CytomX Therapeutics, Inc. (a) | 6,564 | 55 | |||||||||
CytoSorbents Corp. (a) | 5,299 | 52 | |||||||||
CytRx Corp. (a) | 5,317 | 4 | |||||||||
Dare Bioscience, Inc. (a) | 4,033 | 4 | |||||||||
Deciphera Pharmaceuticals, Inc. (a) | 6,574 | 393 | |||||||||
Delcath Systems, Inc. (a) | 591 | 6 | |||||||||
Denali Therapeutics, Inc. (a) (b) | 13,139 | 318 | |||||||||
Dicerna Pharmaceuticals, Inc. (a) | 10,191 | 259 | |||||||||
Digirad Corp. (a) | 335 | 1 | |||||||||
Diversicare Healthcare Services, Inc. (a) | 542 | 1 | |||||||||
Durect Corp. (a) | 28,345 | 66 | |||||||||
Dynavax Technologies Corp. (a) (b) | 15,175 | 135 | |||||||||
Eagle Pharmaceuticals, Inc. (a) | 1,795 | 86 | |||||||||
Editas Medicine, Inc. (a) | 8,857 | 262 | |||||||||
Eidos Therapeutics, Inc. (a) (b) | 2,333 | 111 | |||||||||
Eiger Biopharmaceuticals, Inc. (a) | 3,624 | 35 | |||||||||
Ekso Bionics Holdings, Inc. (a) | 842 | 7 | |||||||||
Elanco Animal Health, Inc. (a) | 53,643 | 1,151 | |||||||||
Electrocore, Inc. (a) | 5,000 | 4 | |||||||||
Electromed, Inc. (a) | 1,227 | 19 | |||||||||
Eloxx Pharmaceuticals, Inc. (a) | 4,319 | 13 | |||||||||
Emergent BioSolutions, Inc. (a) (b) | 7,053 | 558 | |||||||||
Enanta Pharmaceuticals, Inc. (a) | 2,489 | 125 |
See notes to financial statements.
32
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Encompass Health Corp. | 15,376 | $ | 951 | ||||||||
Endo International PLC (a) (b) | 31,284 | 107 | |||||||||
Endologix, Inc. (a) (b) | 2,708 | 2 | |||||||||
ENDRA Life Sciences, Inc. (a) | 2,000 | 2 | |||||||||
Entasis Therapeutics Holdings, Inc. (a) | 344 | 1 | |||||||||
Envista Holdings Corp. (a) | 20,346 | 429 | |||||||||
Enzo Biochem, Inc. (a) | 6,796 | 15 | |||||||||
Enzon Pharmaceuticals, Inc. | 6,171 | 1 | |||||||||
Epizyme, Inc. (a) | 12,234 | 196 | |||||||||
Equillium, Inc. (a) | 1,130 | 3 | |||||||||
Esperion Therapeutics, Inc. (a) (b) | 3,483 | 179 | |||||||||
Establishment Labs Holdings, Inc. (a) | 2,432 | 45 | |||||||||
Eton Pharmaceuticals, Inc. (a) (b) | 2,532 | 14 | |||||||||
Evelo Biosciences, Inc. (a) | 1,522 | 7 | |||||||||
Evofem Biosciences, Inc. (a) | 11,574 | 33 | |||||||||
Evoke Pharma, Inc. (a) | 3,822 | 14 | |||||||||
Evolent Health, Inc. Class A (a) | 12,791 | 91 | |||||||||
Evolus, Inc. (a) (b) | 4,197 | 22 | |||||||||
Exact Sciences Corp. (a) | 21,401 | 1,861 | |||||||||
Exagen, Inc. (a) | 935 | 12 | |||||||||
Exelixis, Inc. (a) | 46,921 | 1,114 | |||||||||
EyeGate Pharmaceuticals, Inc. (a) | 731 | 4 | |||||||||
Eyenovia, Inc. (a) | 1,962 | 6 | |||||||||
Fate Therapeutics, Inc. (a) | 12,138 | 416 | |||||||||
Fennec Pharmaceuticals, Inc. (a) | 3,582 | 30 | |||||||||
Fibrogen, Inc. (a) | 10,787 | 437 | |||||||||
Five Prime Therapeutics, Inc. (a) | 5,791 | 35 | |||||||||
Five Star Senior Living, Inc. (a) | 1,803 | 7 | |||||||||
Flexion Therapeutics, Inc. (a) (b) | 5,303 | 70 | |||||||||
Fluidigm Corp. (a) | 8,440 | 34 | |||||||||
FONAR Corp. (a) | 1,057 | 23 | |||||||||
Forte Biosciences, Inc. (a) | 1,798 | 26 | |||||||||
Fortress Biotech, Inc. (a) | 10,539 | 28 | |||||||||
Frequency Therapeutics, Inc. (a) (b) | 4,433 | 103 | |||||||||
Fulcrum Therapeutics, Inc. (a) (b) | 2,629 | 48 | |||||||||
Fulgent Genetics, Inc. (a) (b) | 1,605 | 26 | |||||||||
G1 Therapeutics, Inc. (a) | 3,617 | 88 | |||||||||
Galectin Therapeutics, Inc. (a) | 7,191 | 22 | |||||||||
Galera Therapeutics, Inc. (a) | 1,461 | 10 | |||||||||
Genesis Healthcare, Inc. (a) | 11,462 | 8 | |||||||||
GenMark Diagnostics, Inc. (a) | 8,974 | 132 | |||||||||
Genocea Biosciences, Inc. (a) | 2,882 | 7 | |||||||||
Genprex, Inc. (a) | 5,318 | 17 | |||||||||
Geron Corp. (a) (b) | 44,879 | 98 | |||||||||
Glaukos Corp. (a) (b) | 5,132 | 197 | |||||||||
Global Blood Therapeutics, Inc. (a) (b) | 5,739 | 362 | |||||||||
Globus Medical, Inc. (a) | 10,312 | 492 | |||||||||
GlycoMimetics, Inc. (a) | 4,984 | 19 | |||||||||
Gossamer Bio, Inc. (a) (b) | 8,283 | 108 | |||||||||
Gritstone Oncology, Inc. (a) (b) | 3,259 | 22 |
See notes to financial statements.
33
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Guardant Health, Inc. (a) | 12,086 | $ | 980 | ||||||||
Haemonetics Corp. (a) | 7,116 | 637 | |||||||||
Halozyme Therapeutics, Inc. (a) | 16,442 | 441 | |||||||||
Hancock Jaffe Laboratories, Inc. (a) | 3,302 | 1 | |||||||||
Hanger, Inc. (a) | 4,385 | 73 | |||||||||
Harpoon Therapeutics, Inc. (a) | 1,387 | 23 | |||||||||
Harrow Health, Inc. (a) | 4,308 | 22 | |||||||||
Harvard Bioscience, Inc. (a) | 6,001 | 19 | |||||||||
Health Catalyst, Inc. (a) (b) | 5,369 | 157 | |||||||||
HealthEquity, Inc. (a) | 10,804 | 634 | |||||||||
HealthStream, Inc. (a) | 3,820 | 85 | |||||||||
Heat Biologics, Inc. (a) | 13,524 | 11 | |||||||||
Helius Medical Technologies, Inc. (a) (b) | 5,948 | 3 | |||||||||
Heska Corp. (a) | 1,405 | 131 | |||||||||
Hill-Rom Holdings, Inc. | 10,183 | 1,118 | |||||||||
Histogen, Inc. (a) | 1,907 | 7 | |||||||||
HMS Holdings Corp. (a) | 12,784 | 414 | |||||||||
Homology Medicines, Inc. (a) | 4,714 | 72 | |||||||||
Hookipa Pharma, Inc. (a) | 1,035 | 12 | |||||||||
Horizon Therapeutics PLC (a) | 30,473 | 1,695 | |||||||||
Hoth Therapeutics, Inc. (a) | 1,196 | 3 | |||||||||
HTG Molecular Diagnostics, Inc. (a) | 9,100 | 7 | |||||||||
iCAD, Inc. (a) | 3,612 | 36 | |||||||||
ICU Medical, Inc. (a) | 2,557 | 471 | |||||||||
Ideaya Biosciences, Inc. (a) | 2,594 | 37 | |||||||||
Idera Pharmaceuticals, Inc. (a) | 4,260 | 8 | |||||||||
IGM Biosciences, Inc. (a) | 1,183 | 86 | |||||||||
Imac Holdings, Inc. (a) | 976 | 1 | |||||||||
IMARA, Inc. (a) (b) | 1,278 | 35 | |||||||||
ImmuCell Corp. (a) | 1,006 | 5 | |||||||||
Immunic, Inc. (a) | 2,164 | 26 | |||||||||
ImmunoGen, Inc. (a) | 27,272 | 125 | |||||||||
Immunomedics, Inc. (a) | 36,494 | 1,293 | |||||||||
Inari Medical, Inc. (a) | 1,342 | 65 | |||||||||
Infinity Pharmaceuticals, Inc. (a) | 9,077 | 8 | |||||||||
Infusystem Holdings, Inc. (a) | 2,126 | 25 | |||||||||
Inmune Bio, Inc. (a) | 709 | 4 | |||||||||
Innoviva, Inc. (a) | 9,880 | 138 | |||||||||
Inogen, Inc. (a) | 2,039 | 72 | |||||||||
Inovalon Holdings, Inc. Class A (a) | 7,315 | 141 | |||||||||
Inovio Pharmaceuticals, Inc. (a) (b) | 25,519 | 688 | |||||||||
Insmed, Inc. (a) | 12,571 | 346 | |||||||||
Inspire Medical System, Inc. (a) | 3,993 | 347 | |||||||||
Insulet Corp. (a) | 7,413 | 1,439 | |||||||||
Integer Holdings Corp. (a) | 4,693 | 343 | |||||||||
Integra LifeSciences Holdings Corp. (a) (b) | 8,844 | 416 | |||||||||
Intellia Therapeutics, Inc. (a) (b) | 6,309 | 133 | |||||||||
Intercept Pharmaceuticals, Inc. (a) | 3,490 | 167 | |||||||||
Interpace Biosciences, Inc. (a) | 637 | 3 | |||||||||
Intersect ENT, Inc. (a) | 4,762 | 64 |
See notes to financial statements.
34
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
IntriCon Corp. (a) | 1,315 | $ | 18 | ||||||||
Invacare Corp. | 4,341 | 28 | |||||||||
Invitae Corp. (a) | 18,286 | 554 | |||||||||
Ionis Pharmaceuticals, Inc. (a) (b) | 17,100 | 1,008 | |||||||||
iRadimed Corp. (a) | 1,054 | 24 | |||||||||
iRhythm Technologies, Inc. (a) | 2,956 | 343 | |||||||||
IRIDEX Corp. (a) | 2,132 | 5 | |||||||||
Ironwood Pharmaceuticals, Inc. (a) | 20,098 | 207 | |||||||||
IsoRay, Inc. (a) | 11,374 | 6 | |||||||||
IVERIC bio, Inc. (a) | 12,226 | 62 | |||||||||
Jaguar Health, Inc. (a) | 5,081 | 2 | |||||||||
Jounce Therapeutics, Inc. (a) | 2,921 | 20 | |||||||||
Kala Pharmaceuticals, Inc. (a) | 7,494 | 79 | |||||||||
Kaleido Biosciences, Inc. (a) (b) | 2,371 | 18 | |||||||||
KalVista Pharmaceuticals, Inc. (a) | 1,501 | 18 | |||||||||
Karuna Therapeutics, Inc. (a) | 1,670 | 186 | |||||||||
Keros Therapeutics, Inc. (a) | 1,490 | 56 | |||||||||
Kewaunee Scientific Corp. | 380 | 4 | |||||||||
Kezar Life Sciences, Inc. (a) | 5,386 | 28 | |||||||||
Kindred Biosciences, Inc. (a) | 6,209 | 28 | |||||||||
Kiniksa Pharmaceuticals Ltd. Class A (a) | 1,502 | 38 | |||||||||
Kodiak Sciences, Inc. (a) | 4,562 | 247 | |||||||||
Krystal Biotech, Inc. (a) | 1,819 | 75 | |||||||||
Kura Oncology, Inc. (a) | 7,244 | 118 | |||||||||
Lannett Co., Inc. (a) | 4,002 | 29 | |||||||||
Lantheus Holdings, Inc. (a) | 8,436 | 121 | |||||||||
Larimar Therapeutics, Inc. (a) | 2,113 | 27 | |||||||||
Leap Therapeutics, Inc. (a) | 6,316 | 13 | |||||||||
LeMaitre Vascular, Inc. | 2,206 | 58 | |||||||||
Lexicon Pharmaceuticals, Inc. (a) | 6,295 | 13 | |||||||||
LHC Group, Inc. (a) | 4,620 | 805 | |||||||||
Ligand Pharmaceuticals, Inc. (a) (b) | 2,212 | 247 | |||||||||
Lineage Cell Therapeutics, Inc. (a) (b) | 24,183 | 21 | |||||||||
Liquidia Technologies, Inc. (a) (b) | 1,527 | 13 | |||||||||
Livongo Health, Inc. (a) (b) | 8,716 | 655 | |||||||||
LogicBio Therapeutics, Inc. (a) | 2,826 | 24 | |||||||||
Luminex Corp. | 6,621 | 215 | |||||||||
Lumos Pharma, Inc. (a) (b) | 1,074 | 18 | |||||||||
Lyra Therapeutics, Inc. (a) | 584 | 7 | |||||||||
MacroGenics, Inc. (a) | 5,866 | 164 | |||||||||
Madrigal Pharmaceuticals, Inc. (a) (b) | 1,609 | 182 | |||||||||
Magellan Health, Inc. (a) | 3,652 | 267 | |||||||||
Magenta Therapeutics, Inc. (a) | 5,341 | 40 | |||||||||
MannKind Corp. (a) | 33,687 | 59 | |||||||||
Marinus Pharmaceuticals, Inc. (a) (b) | 13,818 | 35 | |||||||||
Marker Therapeutics, Inc. (a) (b) | 5,320 | 11 | |||||||||
Masimo Corp. (a) | 6,733 | 1,534 | |||||||||
Mateon Therapeutics, Inc. (a) | 11,249 | 2 | |||||||||
Matinas BioPharma Holdings, Inc. (a) | 31,213 | 24 | |||||||||
MediciNova, Inc. (a) (b) | 6,594 | 36 |
See notes to financial statements.
35
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
MEDNAX, Inc. (a) | 13,211 | $ | 226 | ||||||||
Medpace Holdings, Inc. (a) (b) | 3,925 | 365 | |||||||||
MEI Pharma, Inc. (a) | 14,792 | 61 | |||||||||
MeiraGTx Holdings PLC (a) | 3,203 | 40 | |||||||||
Menlo Therapeutics, Inc. (a) | 25,229 | 44 | |||||||||
Meridian Bioscience, Inc. (a) | 6,193 | 144 | |||||||||
Merit Medical Systems, Inc. (a) | 7,356 | 336 | |||||||||
Merrimack Pharmaceuticals, Inc. | 2,114 | 7 | |||||||||
Mersana Therapeutics, Inc. (a) (b) | 9,118 | 213 | |||||||||
Microbot Medical, Inc. (a) | 1,098 | 8 | |||||||||
Millendo Therapeutics, Inc. (a) | 2,523 | 4 | |||||||||
Minerva Neurosciences, Inc. (a) | 6,264 | 23 | |||||||||
Miragen Therapeutics, Inc. (a) | 7,318 | 8 | |||||||||
Mirum Pharmaceuticals, Inc. (a) | 1,922 | 37 | |||||||||
Misonix, Inc. (a) | 2,072 | 28 | |||||||||
Moderna, Inc. (a) (b) | 47,725 | 3,065 | |||||||||
Molecular Templates, Inc. (a) | 4,303 | 59 | |||||||||
Moleculin Biotech, Inc. (a) | 9,750 | 9 | |||||||||
Molina Healthcare, Inc. (a) | 6,967 | 1,239 | |||||||||
Momenta Pharmaceuticals, Inc. (a) | 13,062 | 435 | |||||||||
Monopar Therapeutics, Inc. (a) | 591 | 4 | |||||||||
Morphic Holding, Inc. (a) | 1,234 | 33 | |||||||||
Motus GI Holdings, Inc. (a) | 3,780 | 5 | |||||||||
MTBC, Inc. (a) | 1,292 | 11 | |||||||||
Mustang Bio, Inc. (a) | 7,131 | 23 | |||||||||
MyoKardia, Inc. (a) | 6,559 | 634 | |||||||||
Myomo, Inc. (a) | 469 | 2 | |||||||||
Myriad Genetics, Inc. (a) | 9,025 | 102 | |||||||||
NanoString Technologies, Inc. (a) (b) | 4,884 | 143 | |||||||||
NantHealth, Inc. (a) | 3,719 | 17 | |||||||||
NantKwest, Inc. (a) (b) | 5,465 | 67 | |||||||||
Natera, Inc. (a) | 12,575 | 627 | |||||||||
National Healthcare Corp. (c) | 2,273 | 144 | |||||||||
National Research Corp. | 1,864 | 109 | |||||||||
Natus Medical, Inc. (a) | 4,887 | 107 | |||||||||
Navidea Biopharmaceuticals, Inc. (a) | 2,074 | 8 | |||||||||
Nektar Therapeutics (a) (b) | 14,963 | 347 | |||||||||
Neogen Corp. (a) | 6,583 | 511 | |||||||||
NeoGenomics, Inc. (a) | 16,052 | 497 | |||||||||
Neos Therapeutics, Inc. (a) | 7,947 | 5 | |||||||||
NeuroBo Pharmaceuticals, Inc. (a) | 415 | 3 | |||||||||
Neurocrine Biosciences, Inc. (a) | 12,335 | 1,505 | |||||||||
NeuroMetrix, Inc. (a) | 461 | 1 | |||||||||
Neuronetics, Inc. (a) | 2,676 | 5 | |||||||||
Neurotrope, Inc. (a) | 3,319 | 4 | |||||||||
Nevro Corp. (a) | 4,573 | 546 | |||||||||
NextCure, Inc. (a) | 2,777 | 60 | |||||||||
Nextgen Healthcare, Inc. (a) | 6,780 | 74 | |||||||||
NGM Biopharmaceuticals, Inc. (a) | 4,124 | 81 | |||||||||
Northwest Biotherapeutics, Inc. (a) (b) | 111,953 | 38 |
See notes to financial statements.
36
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
NovaBay Pharmaceuticals, Inc. (a) | 3,816 | $ | 4 | ||||||||
Novan, Inc. (a) | 11,167 | 5 | |||||||||
Novavax, Inc. (a) | 9,452 | 788 | |||||||||
Novus Therapeutics, Inc. (a) | 2,404 | 1 | |||||||||
NuVasive, Inc. (a) | 7,669 | 427 | |||||||||
Obalon Therapeutics, Inc. (a) | 1,158 | 1 | |||||||||
Ocugen, Inc. (a) | 16,494 | 4 | |||||||||
Ocular Therapeutix, Inc. (a) (b) | 9,921 | 83 | |||||||||
Odonate Therapeutics, Inc. (a) | 2,321 | 98 | |||||||||
Omeros Corp. (a) (b) | 8,523 | 125 | |||||||||
Omnicell, Inc. (a) | 6,162 | 435 | |||||||||
Oncocyte Corp. (a) | 9,719 | 19 | |||||||||
Onconova Therapeutics, Inc. (a) | 28,359 | 16 | |||||||||
OncoSec Medical, Inc. (a) | 1,531 | 3 | |||||||||
Oncternal Therapeutics, Inc. (a) | 2,244 | 6 | |||||||||
OpGen, Inc. (a) | 2,533 | 5 | |||||||||
Opiant Pharmaceuticals, Inc. (a) | 681 | 6 | |||||||||
OPKO Health, Inc. (a) (b) | 78,838 | 269 | |||||||||
Optinose, Inc. (a) | 3,936 | 29 | |||||||||
Option Care Health, Inc. (a) | 5,645 | 78 | |||||||||
Oragenics, Inc. (a) | 6,516 | 5 | |||||||||
Oramed Pharmaceuticals, Inc. (a) | 3,482 | 12 | |||||||||
OraSure Technologies, Inc. (a) | 9,660 | 112 | |||||||||
Organogenesis Holdings, Inc. (a) | 3,568 | 14 | |||||||||
Orgenesis, Inc. (a) | 3,143 | 19 | |||||||||
ORIC Pharmaceuticals, Inc. (a) (b) | 2,716 | 92 | |||||||||
Orthofix Medical, Inc. (a) | 2,584 | 83 | |||||||||
Orthopediatrics Corp. (a) | 2,221 | 97 | |||||||||
Osmotica Pharmaceuticals PLC (a) | 2,277 | 15 | |||||||||
Otonomy, Inc. (a) | 4,463 | 16 | |||||||||
Outlook Therapeutics, Inc. (a) (b) | 6,145 | 8 | |||||||||
Ovid Therapeutics, Inc. (a) | 5,892 | 43 | |||||||||
Owens & Minor, Inc. (b) | 9,111 | 69 | |||||||||
Oyster Point Pharma, Inc. (a) | 1,055 | 30 | |||||||||
Pacific Biosciences of California, Inc. (a) | 24,091 | 83 | |||||||||
Pacira BioSciences, Inc. (a) | 6,019 | 316 | |||||||||
Palatin Technologies, Inc. (a) (b) | 36,234 | 19 | |||||||||
Paratek Pharmaceuticals, Inc. (a) (b) | 6,091 | 32 | |||||||||
Passage Bio, Inc. (a) (b) | 2,897 | 79 | |||||||||
Patterson Cos., Inc. (c) | 10,309 | 227 | |||||||||
PAVmed, Inc. (a) | 6,627 | 14 | |||||||||
PDL BioPharma, Inc. (a) | 18,028 | 52 | |||||||||
PDS Biotechnology Corp. (a) | 2,093 | 4 | |||||||||
Penumbra, Inc. (a) | 4,653 | 832 | |||||||||
Personalis, Inc. (a) | 3,412 | 44 | |||||||||
PetIQ, Inc. (a) | 1,098 | 38 | |||||||||
Pfenex, Inc. (a) (b) | 3,690 | 31 | |||||||||
PhaseBio Pharmaceuticals, Inc. (a) | 2,516 | 12 | |||||||||
Phathom Pharmaceuticals, Inc. (a) (b) | 2,387 | 79 | |||||||||
Phibro Animal Health Corp. Class A | 2,176 | 57 |
See notes to financial statements.
37
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Phreesia, Inc. (a) | 4,430 | $ | 125 | ||||||||
Pieris Pharmaceuticals, Inc. (a) | 8,269 | 26 | |||||||||
Plus Therapeutics, Inc. (a) | 650 | 1 | |||||||||
PLx Pharma, Inc. (a) | 1,448 | 5 | |||||||||
PolarityTE, Inc. (a) (b) | 4,850 | 6 | |||||||||
Portola Pharmaceuticals, Inc. (a) | 12,272 | 221 | |||||||||
PPD, Inc. (a) | 22,858 | 613 | |||||||||
PRA Health Sciences, Inc. (a) | 7,916 | 770 | |||||||||
Precigen, Inc. (a) (b) | 10,639 | 53 | |||||||||
Precipio, Inc. (a) | 1,834 | 3 | |||||||||
Precision BioSciences, Inc. (a) | 6,714 | 56 | |||||||||
Predictive Oncology, Inc. (a) | 1,450 | 2 | |||||||||
Premier, Inc. Class A (a) (b) | 7,167 | 246 | |||||||||
Pressure BioSciences, Inc. (a) | 466 | 1 | |||||||||
Prestige Consumer Healthcare, Inc. (a) | 7,495 | 282 | |||||||||
Prevail Therapeutics, Inc. (a) | 5,003 | 75 | |||||||||
Principia Biopharma, Inc. (a) | 3,944 | 236 | |||||||||
Pro-Dex, Inc. (a) | 468 | 8 | |||||||||
Progyny, Inc. (a) | 6,301 | 163 | |||||||||
ProPhase Labs, Inc. | 1,521 | 2 | |||||||||
Protagonist Therapeutics, Inc. (a) | 4,689 | 83 | |||||||||
Protalix BioTherapeutics, Inc. (a) | 4,582 | 17 | |||||||||
Protara Therapeutics, Inc. (a) | 875 | 26 | |||||||||
Proteostasis Therapeutics, Inc. (a) | 7,540 | 10 | |||||||||
Provention Bio, Inc. (a) | 7,500 | 106 | |||||||||
Psychemedics Corp. | 790 | 4 | |||||||||
PTC Therapeutics, Inc. (a) | 9,596 | 487 | |||||||||
Pulmatrix, Inc. (a) | 4,060 | 7 | |||||||||
Pulse Biosciences, Inc. (a) | 2,707 | 28 | |||||||||
Puma Biotechnology, Inc. (a) | 5,493 | 57 | |||||||||
Qualigen Therapeutics, Inc. (a) (b) | 2,085 | 8 | |||||||||
Quanterix Corp. (a) | 3,760 | 103 | |||||||||
Quidel Corp. (a) | 4,448 | 995 | |||||||||
R1 RCM, Inc. (a) | 16,613 | 185 | |||||||||
RA Medical Systems, Inc. (a) | 3,841 | 2 | |||||||||
RadNet, Inc. (a) | 6,609 | 105 | |||||||||
RAPT Therapeutics, Inc. (a) (b) | 1,435 | 42 | |||||||||
Reata Pharmaceuticals, Inc. Class A (a) (b) | 3,129 | 488 | |||||||||
Recro Pharma, Inc. | 3,764 | 17 | |||||||||
RegeneRx Biopharmaceuticals, Inc. (a) | 13,237 | 4 | |||||||||
REGENXBIO, Inc. (a) | 4,258 | 157 | |||||||||
Regulus Therapeutics, Inc. (a) | 3,945 | 3 | |||||||||
Repligen Corp. (a) | 7,299 | 902 | |||||||||
Replimune Group, Inc. (a) | 2,721 | 68 | |||||||||
ReShape Lifesciences, Inc. (a) | 922 | 4 | |||||||||
resTORbio, Inc. (a) | 3,983 | 9 | |||||||||
Retractable Technologies, Inc. (a) | 1,593 | 11 | |||||||||
Retrophin, Inc. (a) | 5,927 | 121 | |||||||||
Revance Therapeutics, Inc. (a) | 7,962 | 194 | |||||||||
REVOLUTION Medicines, Inc. (a) | 5,259 | 166 |
See notes to financial statements.
38
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Rexahn Pharmaceuticals, Inc. (a) | 649 | $ | 2 | ||||||||
Rhythm Pharmaceuticals, Inc. (a) | 5,634 | 126 | |||||||||
Rigel Pharmaceuticals, Inc. (a) | 22,391 | 41 | |||||||||
Rocket Pharmaceuticals, Inc. (a) (b) | 8,068 | 169 | |||||||||
Rockwell Medical, Inc. (a) (b) | 7,664 | 15 | |||||||||
RTI Surgical Holdings, Inc. (a) | 9,060 | 29 | |||||||||
Rubius Therapeutics, Inc. (a) | 3,924 | 23 | |||||||||
Sage Therapeutics, Inc. (a) | 6,285 | 261 | |||||||||
Salarius Pharmaceuticals, Inc. (a) | 1,950 | 3 | |||||||||
Sangamo Therapeutics, Inc. (a) (b) | 18,239 | 163 | |||||||||
Sarepta Therapeutics, Inc. (a) | 11,277 | 1,808 | |||||||||
Satsuma Pharmaceuticals, Inc. (a) | 1,024 | 29 | |||||||||
Savara, Inc. (a) | 7,107 | 18 | |||||||||
Scholar Rock Holding Corp. (a) | 1,958 | 36 | |||||||||
Schrodinger, Inc. (a) (b) | 1,915 | 175 | |||||||||
scPharmaceuticals, Inc. (a) | 3,333 | 25 | |||||||||
SCWorx Corp. (a) (d) (g) | 955 | 3 | |||||||||
SCYNEXIS, Inc. (a) | 16,614 | 12 | |||||||||
Seaspine Holdings Corp. (a) | 2,977 | 31 | |||||||||
Seattle Genetics, Inc. (a) | 24,448 | 4,155 | |||||||||
Second Sight Medical Products, Inc. (a) | 2,220 | 2 | |||||||||
Seelos Therapeutics, Inc. (a) | 7,028 | 7 | |||||||||
Select Medical Holdings Corp. (a) | 13,290 | 196 | |||||||||
Selecta Biosciences, Inc. (a) (b) | 9,267 | 26 | |||||||||
Sellas Life Sciences Group, Inc. (a) | 1,040 | 3 | |||||||||
Seneca BioPharma, Inc. (a) | 2,879 | 2 | |||||||||
Senestech, Inc. (a) | 571 | 1 | |||||||||
Senseonics Holdings, Inc. (a) (b) | 24,879 | 10 | |||||||||
Sensus Healthcare, Inc. (a) | 2,054 | 6 | |||||||||
Seres Therapeutics, Inc. (a) | 4,882 | 23 | |||||||||
Sesen Bio, Inc. (a) | 17,081 | 12 | |||||||||
Shockwave Medical, Inc. (a) | 3,268 | 155 | |||||||||
SI-BONE, Inc. (a) | 4,063 | 65 | |||||||||
Sientra, Inc. (a) (b) | 7,993 | 31 | |||||||||
Sierra Oncology, Inc. (a) | 1,416 | 17 | |||||||||
SIGA Technologies, Inc. (a) | 8,858 | 52 | |||||||||
Silk Road Medical, Inc. (a) | 4,609 | 193 | |||||||||
Simulations Plus, Inc. | 2,181 | 130 | |||||||||
SiNtx Technologies, Inc. (a) | 1,904 | 4 | |||||||||
SmileDirectClub, Inc. (a) (b) | 9,712 | 77 | |||||||||
Soleno Therapeutics, Inc. (a) | 5,564 | 12 | |||||||||
Solid Biosciences, Inc. (a) | 4,648 | 14 | |||||||||
Soliton, Inc. (a) | 1,311 | 10 | |||||||||
Sonoma Pharmaceuticals, Inc. (a) | 281 | 2 | |||||||||
Spectrum Pharmaceuticals, Inc. (a) | 16,646 | 56 | |||||||||
Spero Therapeutics, Inc. (a) | 2,736 | 37 | |||||||||
Spring Bank Pharmaceuticals, Inc. (a) | 2,731 | 4 | |||||||||
SpringWorks Therapeutics, Inc. (a) | 2,604 | 109 | |||||||||
STAAR Surgical Co. (a) | 7,130 | 439 | |||||||||
Stereotaxis, Inc. (a) | 10,024 | 45 |
See notes to financial statements.
39
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Stoke Therapeutics, Inc. (a) | 2,717 | $ | 65 | ||||||||
Strata Skin Sciences, Inc. (a) | 3,629 | 4 | |||||||||
Streamline Health Solutions, Inc. (a) | 4,887 | 6 | |||||||||
Strongbridge BioPharma PLC (a) | 6,203 | 23 | |||||||||
Sunesis Pharmaceuticals, Inc. (a) | 17,794 | 5 | |||||||||
SunLink Health Systems, Inc. (a) | 685 | 1 | |||||||||
Supernus Pharmaceuticals, Inc. (a) | 7,509 | 178 | |||||||||
Surface Oncology, Inc. (a) | 2,191 | 14 | |||||||||
Surgery Partners, Inc. (a) | 4,078 | 47 | |||||||||
Surmodics, Inc. (a) | 1,945 | 84 | |||||||||
Sutro Biopharma, Inc. (a) | 4,223 | 33 | |||||||||
Syndax Pharmaceuticals, Inc. (a) | 5,159 | 76 | |||||||||
Syneos Health, Inc. (a) | 9,284 | 541 | |||||||||
Synlogic, Inc. (a) | 3,313 | 7 | |||||||||
Synthetic Biologics, Inc. (a) | 2,979 | 2 | |||||||||
Syros Pharmaceuticals, Inc. (a) | 4,226 | 45 | |||||||||
T2 Biosystems, Inc. (a) (b) | 19,036 | 24 | |||||||||
Tabula Rasa Healthcare, Inc. (a) (b) | 3,020 | 165 | |||||||||
Tactile Systems Technology, Inc. (a) | 2,361 | 98 | |||||||||
Tandem Diabetes Care, Inc. (a) | 8,590 | 850 | |||||||||
TCR2 Therapeutics, Inc. (a) | 1,215 | 19 | |||||||||
Tela Bio, Inc. (a) | 442 | 6 | |||||||||
Teladoc Health, Inc. (a) | 10,767 | 2,055 | |||||||||
Teligent, Inc. (a) | 571 | 1 | |||||||||
Tenet Healthcare Corp. (a) | 15,847 | 287 | |||||||||
Tetraphase Pharmaceuticals, Inc. (a) | 1,197 | 3 | |||||||||
TFF Pharmaceuticals, Inc. (a) | 2,481 | 14 | |||||||||
The Ensign Group, Inc. | 7,851 | 329 | |||||||||
The Joint Corp. (a) | 2,203 | 34 | |||||||||
The Pennant Group, Inc. (a) | 3,331 | 75 | |||||||||
The Providence Service Corp. (a) | 1,890 | 149 | |||||||||
TherapeuticsMD, Inc. (a) (b) | 33,805 | 42 | |||||||||
Thermogenesis Holdings, Inc. (a) | 942 | 5 | |||||||||
Tilray, Inc. Class 2 (a) (b) | 1,680 | 12 | |||||||||
Timber Pharmaceuticals, Inc. (a) | 1,953 | 4 | |||||||||
Tivity Health, Inc. (a) | 4,892 | 55 | |||||||||
Tonix Pharmaceuticals Holding Corp. (a) | 8,834 | 5 | |||||||||
Tracon Pharmaceuticals, Inc. (a) | 870 | 2 | |||||||||
TransEnterix, Inc. (a) (b) | 8,455 | 5 | |||||||||
Translate Bio, Inc. (a) | 7,299 | 131 | |||||||||
TransMedics Group, Inc. (a) | 2,926 | 52 | |||||||||
Trevena, Inc. (a) | 17,481 | 26 | |||||||||
Trevi Therapeutics, Inc. (a) | 540 | 4 | |||||||||
Tricida, Inc. (a) (b) | 6,216 | 171 | |||||||||
Turning Point Therapeutics, Inc. (a) | 5,770 | 373 | |||||||||
Twist Bioscience Corp. (a) | 5,306 | 240 | |||||||||
Tyme Technologies, Inc. (a) | 9,331 | 12 | |||||||||
U.S. Physical Therapy, Inc. | 1,383 | 112 | |||||||||
Ultragenyx Pharmaceutical, Inc. (a) (b) | 5,024 | 393 | |||||||||
United Therapeutics Corp. (a) | 6,291 | 761 |
See notes to financial statements.
40
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
UNITY Biotechnology, Inc. (a) | 3,967 | $ | 34 | ||||||||
Unum Therapeutics, Inc. (a) | 2,673 | 1 | |||||||||
UroGen Pharma Ltd. (a) (b) | 2,508 | 66 | |||||||||
Urovant Sciences Ltd. (a) | 873 | 9 | |||||||||
Utah Medical Products, Inc. | 423 | 37 | |||||||||
Vaccinex, Inc. (a) | 1,932 | 7 | |||||||||
Vanda Pharmaceuticals, Inc. (a) | 7,247 | 83 | |||||||||
Vapotherm, Inc. (a) | 3,320 | 136 | |||||||||
Varex Imaging Corp. (a) | 5,654 | 86 | |||||||||
Vaxart, Inc. (a) (b) | 11,975 | 106 | |||||||||
Veeva Systems, Inc. Class A (a) | 16,410 | 3,848 | |||||||||
Venus Concept, Inc. (a) | 2,221 | 8 | |||||||||
Veracyte, Inc. (a) | 6,313 | 164 | |||||||||
Verastem, Inc. (a) | 25,963 | 45 | |||||||||
Vericel Corp. (a) (b) | 6,502 | 90 | |||||||||
Verrica Pharmaceuticals, Inc. (a) | 1,737 | 19 | |||||||||
Viela Bio, Inc. (a) (b) | 2,571 | 111 | |||||||||
Viking Therapeutics, Inc. (a) (b) | 10,254 | 74 | |||||||||
Vir Biotechnology, Inc. (a) (b) | 8,921 | 365 | |||||||||
Viveve Medical, Inc. (a) | 2,360 | 1 | |||||||||
VIVUS, Inc. (a) | 2,825 | 2 | |||||||||
Vocera Communications, Inc. (a) | 3,339 | 71 | |||||||||
Voyager Therapeutics, Inc. (a) | 3,690 | 47 | |||||||||
vTv Therapeutics, Inc. Class A (a) | 1,368 | 3 | |||||||||
X4 Pharmaceuticals, Inc. (a) | 2,443 | 23 | |||||||||
XBiotech, Inc. (a) (b) | 1,844 | 25 | |||||||||
Xencor, Inc. (a) | 4,505 | 146 | |||||||||
Xeris Pharmaceuticals, Inc. (a) (b) | 5,625 | 15 | |||||||||
XOMA Corp. (a) | 1,778 | 35 | |||||||||
Xtant Medical Holdings, Inc. (a) | 2,135 | 2 | |||||||||
Yield10 Bioscience, Inc. (a) | 266 | 2 | |||||||||
Y-mAbs Therapeutics, Inc. (a) | 4,613 | 199 | |||||||||
Zentalis Pharmaceuticals, Inc. (a) (b) | 2,474 | 119 | |||||||||
ZIOPHARM Oncology, Inc. (a) (b) (c) | 29,185 | 96 | |||||||||
Zogenix, Inc. (a) | 7,724 | 209 | |||||||||
Zomedica Pharmaceuticals Corp. (a) (b) | 31,916 | 8 | |||||||||
Zosano Pharma Corp. (a) (b) | 9,050 | 8 | |||||||||
Zynerba Pharmaceuticals, Inc. (a) (b) | 3,734 | 13 | |||||||||
111,385 | |||||||||||
Industrials (12.7%): | |||||||||||
AAON, Inc. (b) | 5,337 | 290 | |||||||||
AAR Corp. | 5,017 | 104 | |||||||||
ABM Industries, Inc. | 9,634 | 350 | |||||||||
Acacia Research Corp. (a) | 7,779 | 32 | |||||||||
ACCO Brands Corp. | 14,771 | 105 | |||||||||
Acme United Corp. | 449 | 10 | |||||||||
Acuity Brands, Inc. | 5,733 | 549 | |||||||||
ADT, Inc. (b) | 17,900 | 143 | |||||||||
Advanced Disposal Services, Inc. (a) | 10,462 | 316 | |||||||||
Advanced Drainage Systems, Inc. | 8,442 | 417 |
See notes to financial statements.
41
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
AECOM (a) | 17,496 | $ | 658 | ||||||||
Aegion Corp. (a) | 3,560 | 56 | |||||||||
AeroCentury Corp. (a) | 205 | 1 | |||||||||
Aerojet Rocketdyne Holdings, Inc. (a) | 9,770 | 387 | |||||||||
Aerovironment, Inc. (a) | 2,986 | 238 | |||||||||
AGCO Corp. | 9,567 | 531 | |||||||||
AIkido Pharma, Inc. | 5,226 | 4 | |||||||||
Air Industries Group (a) | 3,291 | 4 | |||||||||
Air Lease Corp. | 16,241 | 476 | |||||||||
Air T, Inc. (a) | 279 | 3 | |||||||||
Air Transport Services Group, Inc. (a) (b) | 9,418 | 210 | |||||||||
Alamo Group, Inc. | 1,535 | 158 | |||||||||
Albany International Corp. | 3,693 | 217 | |||||||||
Allegiant Travel Co. (b) | 1,934 | 211 | |||||||||
Allied Motion Technologies, Inc. | 1,457 | 51 | |||||||||
Allison Transmission Holdings, Inc. | 15,223 | 560 | |||||||||
Altra Industrial Motion Corp. | 9,565 | 305 | |||||||||
AMERCO, Inc. (b) | 1,516 | 458 | |||||||||
Ameresco, Inc. Class A (a) | 3,440 | 96 | |||||||||
American Superconductor Corp. (a) | 3,045 | 25 | |||||||||
American Woodmark Corp. (a) | 2,021 | 153 | |||||||||
AMREP Corp. (a) | 465 | 2 | |||||||||
Apogee Enterprises, Inc. | 3,541 | 82 | |||||||||
Applied Energetics, Inc. (a) | 31,176 | 9 | |||||||||
Applied Industrial Technologies, Inc. | 5,207 | 325 | |||||||||
Aqua Metals, Inc. (a) | 9,182 | 13 | |||||||||
ARC Document Solutions, Inc. | 6,579 | 7 | |||||||||
ArcBest Corp. | 3,653 | 97 | |||||||||
Arcosa, Inc. | 6,971 | 294 | |||||||||
Argan, Inc. | 2,131 | 101 | |||||||||
Armstrong Flooring, Inc. (a) | 2,864 | 9 | |||||||||
Armstrong World Industries, Inc. | 5,952 | 464 | |||||||||
Art's-Way Manufacturing Co., Inc. (a) | 387 | 1 | |||||||||
ASGN, Inc. (a) | 7,238 | 483 | |||||||||
Astec Industries, Inc. | 3,266 | 151 | |||||||||
Astronics Corp. (a) (c) | 3,310 | 35 | |||||||||
Astrotech Corp. (a) | 840 | 2 | |||||||||
Atkore International Group, Inc. (a) | 6,823 | 187 | |||||||||
Atlas Air Worldwide Holdings, Inc. (a) (b) | 3,295 | 142 | |||||||||
Avalon Holdings Corp. Class A (a) | 319 | 1 | |||||||||
Avis Budget Group, Inc. (a) (b) (c) | 10,057 | 230 | |||||||||
Axon Enterprise, Inc. (a) | 8,248 | 809 | |||||||||
AZZ, Inc. | 3,167 | 109 | |||||||||
Babcock & Wilcox Enterprises, Inc. (a) | 3,980 | 9 | |||||||||
Barnes Group, Inc. | 6,192 | 245 | |||||||||
Barrett Business Services, Inc. | 1,026 | 55 | |||||||||
Beacon Roofing Supply, Inc. (a) | 7,986 | 211 | |||||||||
BioHiTech Global, Inc. (a) | 1,964 | 5 | |||||||||
Bloom Energy Corp. Class A (a) (b) | 2,947 | 32 | |||||||||
BlueLinx Holdings, Inc. (a) | 1,481 | 13 |
See notes to financial statements.
42
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
BMC Stock Holdings, Inc. (a) (b) | 10,474 | $ | 263 | ||||||||
Brady Corp. Class A | 5,767 | 270 | |||||||||
Briggs & Stratton Corp. (b) | 5,426 | 7 | |||||||||
Brightview Holdings, Inc. (a) | 5,470 | 61 | |||||||||
Broadwind Energy, Inc. (a) | 2,350 | 9 | |||||||||
Builders FirstSource, Inc. (a) | 18,234 | 377 | |||||||||
BWX Technologies, Inc. (b) | 11,528 | 653 | |||||||||
CAI International, Inc. (a) | 2,414 | 40 | |||||||||
Capstone Turbine Corp. (a) | 1,533 | 5 | |||||||||
Carlisle Cos., Inc. | 8,402 | 1,006 | |||||||||
Casella Waste Systems, Inc. (a) | 6,499 | 339 | |||||||||
CBIZ, Inc. (a) | 8,157 | 196 | |||||||||
CECO Environmental Corp. (a) | 4,522 | 30 | |||||||||
Charah Solutions, Inc. (a) | 1,709 | 5 | |||||||||
Chart Industries, Inc. (a) | 5,200 | 252 | |||||||||
Chicago Rivet & Machine Co. | 133 | 3 | |||||||||
CIRCOR International, Inc. (a) | 2,588 | 66 | |||||||||
Civeo Corp. (a) | 21,805 | 13 | |||||||||
Clean Harbors, Inc. (a) | 8,036 | 482 | |||||||||
Colfax Corp. (a) | 10,146 | 283 | |||||||||
Columbus McKinnon Corp. | 3,480 | 116 | |||||||||
Comfort Systems USA, Inc. | 5,213 | 212 | |||||||||
Commercial Vehicle Group, Inc. (a) | 5,053 | 15 | |||||||||
Construction Partners, Inc. Class A (a) (b) | 1,915 | 34 | |||||||||
Continental Materials Corp. (a) (d) (g) | 114 | 1 | |||||||||
Cornerstone Building Brands, Inc. (a) | 8,060 | 49 | |||||||||
CoStar Group, Inc. (a) (c) | 5,891 | 4,186 | |||||||||
Covanta Holding Corp. | 19,968 | 191 | |||||||||
Covenant Transport Group, Inc. Class A (a) | 1,954 | 28 | |||||||||
CPI Aerostructures, Inc. (a) | 1,834 | 6 | |||||||||
CRA International, Inc. | 1,100 | 43 | |||||||||
Crane Co. | 7,213 | 429 | |||||||||
CSW Industrials, Inc. | 2,320 | 160 | |||||||||
Cubic Corp. (b) | 3,842 | 185 | |||||||||
Curtiss-Wright Corp. | 6,302 | 563 | |||||||||
Daseke, Inc. (a) | 7,605 | 30 | |||||||||
Deluxe Corp. | 5,837 | 137 | |||||||||
DLH Holdings Corp. (a) | 1,745 | 13 | |||||||||
DMC Global, Inc. | 1,711 | 47 | |||||||||
Document Security Systems, Inc. (a) | 220 | 2 | |||||||||
Donaldson Co., Inc. | 17,691 | 822 | |||||||||
Douglas Dynamics, Inc. | 2,921 | 103 | |||||||||
DPW Holdings, Inc. (a) | 844 | 2 | |||||||||
Ducommun, Inc. (a) | 1,841 | 64 | |||||||||
DXP Enterprise, Inc. (a) | 2,145 | 43 | |||||||||
Dycom Industries, Inc. (a) | 3,937 | 161 | |||||||||
Eagle Bulk Shipping, Inc. (a) (b) | 7,742 | 17 | |||||||||
Echo Global Logistics, Inc. (a) | 3,804 | 82 | |||||||||
EMCOR Group, Inc. | 8,207 | 544 | |||||||||
Encore Wire Corp. | 2,973 | 145 |
See notes to financial statements.
43
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Energous Corp. (a) (b) | 6,392 | $ | 18 | ||||||||
Energy Focus, Inc. (a) (b) | 486 | 3 | |||||||||
Energy Recovery, Inc. (a) | 6,642 | 50 | |||||||||
Enerpac Tool Group Corp. | 8,036 | 141 | |||||||||
EnerSys | 6,425 | 414 | |||||||||
Ennis, Inc. (c) | 4,038 | 73 | |||||||||
Enphase Energy, Inc. (a) | 16,421 | 781 | |||||||||
EnPro Industries, Inc. | 2,967 | 146 | |||||||||
ESCO Technologies, Inc. | 3,284 | 278 | |||||||||
Espey Manufacturing & Electronics Corp. | 363 | 6 | |||||||||
EVI Industries, Inc. (a) (b) | 661 | 14 | |||||||||
Evoqua Water Technologies Corp. (a) | 11,604 | 216 | |||||||||
Exponent, Inc. | 7,453 | 603 | |||||||||
Federal Signal Corp. | 8,711 | 259 | |||||||||
Fluor Corp. | 17,912 | 216 | |||||||||
Forrester Research, Inc. (a) | 1,609 | 52 | |||||||||
Forward Air Corp. | 4,046 | 202 | |||||||||
Foundation Building Materials, Inc. (a) | 3,342 | 52 | |||||||||
Franklin Covey Co. (a) | 2,076 | 44 | |||||||||
Franklin Electric Co., Inc. | 5,201 | 273 | |||||||||
FreightCar America, Inc. (a) | 2,105 | 3 | |||||||||
FTI Consulting, Inc. (a) | 4,679 | 536 | |||||||||
Fuel Tech, Inc. (a) | 2,776 | 2 | |||||||||
FuelCell Energy, Inc. (a) (b) | 33,698 | 76 | |||||||||
Gates Industrial Corp. PLC (a) | 7,332 | 75 | |||||||||
GATX Corp. (b) | 4,167 | 254 | |||||||||
GEE Group, Inc. (a) | 2,210 | 1 | |||||||||
Gencor Industries, Inc. (a) | 1,545 | 20 | |||||||||
Gibraltar Industries, Inc. (a) | 4,305 | 207 | |||||||||
Giga-tronics, Inc. (a) | 326 | 1 | |||||||||
GMS, Inc. (a) | 6,119 | 150 | |||||||||
Graco, Inc. | 25,771 | 1,236 | |||||||||
GrafTech International Ltd. | 11,230 | 90 | |||||||||
Graham Corp. | 1,447 | 18 | |||||||||
Granite Construction, Inc. (b) | 5,738 | 110 | |||||||||
Great Lakes Dredge & Dock Corp. (a) | 9,587 | 89 | |||||||||
Griffon Corp. | 5,502 | 102 | |||||||||
H&E Equipment Services, Inc. | 5,255 | 97 | |||||||||
Harsco Corp. (a) | 11,539 | 156 | |||||||||
Hawaiian Holdings, Inc. | 6,644 | 93 | |||||||||
HC2 Holdings, Inc. (a) (b) | 6,339 | 21 | |||||||||
HD Supply Holdings, Inc. (a) | 22,334 | 775 | |||||||||
Healthcare Services Group (b) | 11,261 | 275 | |||||||||
Heartland Express, Inc. | 6,702 | 140 | |||||||||
HEICO Corp. Class A | 10,875 | 883 | |||||||||
Heidrick & Struggles International, Inc. | 2,787 | 60 | |||||||||
Helios Technologies, Inc. | 3,722 | 139 | |||||||||
Herc Holdings, Inc. (a) | 4,602 | 141 | |||||||||
Heritage-Crystal Clean, Inc. (a) | 2,503 | 44 | |||||||||
Herman Miller, Inc. | 8,893 | 210 |
See notes to financial statements.
44
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Hertz Global Holdings, Inc. (a) (b) (k) | 22,250 | $ | 31 | ||||||||
Hexcel Corp. | 13,336 | 603 | |||||||||
Hillenbrand, Inc. | 9,799 | 265 | |||||||||
HNI Corp. | 5,449 | 167 | |||||||||
Houston Wire & Cable Co. (a) | 2,342 | 6 | |||||||||
Hub Group, Inc. Class A (a) | 4,427 | 212 | |||||||||
Hubbell, Inc. | 7,746 | 970 | |||||||||
Hudson Global, Inc. (a) | 369 | 3 | |||||||||
Hudson Technologies, Inc. (a) | 5,305 | 5 | |||||||||
Hurco Cos., Inc. | 1,086 | 30 | |||||||||
Huron Consulting Group, Inc. (a) | 3,381 | 150 | |||||||||
Hyster-Yale Materials Handling, Inc. | 1,718 | 66 | |||||||||
IAA, Inc. (a) | 21,170 | 816 | |||||||||
ICF International, Inc. | 2,976 | 193 | |||||||||
Ideal Power, Inc. (a) | 271 | 2 | |||||||||
IES Holdings, Inc. Class A (a) | 3,544 | 82 | |||||||||
Infrastructure And Energy Alternatives, Inc. Class A (a) | 3,549 | 14 | |||||||||
InnerWorkings, Inc. (a) | 7,044 | 9 | |||||||||
Innovative Solutions & Support, Inc. (a) | 1,799 | 9 | |||||||||
Insperity, Inc. | 5,476 | 354 | |||||||||
Insteel Industries, Inc. | 2,591 | 49 | |||||||||
Interface, Inc. | 7,276 | 59 | |||||||||
ITT, Inc. | 12,624 | 742 | |||||||||
JanOne, Inc. (a) | 185 | 1 | |||||||||
JELD-WEN Holding, Inc. (a) | 11,350 | 183 | |||||||||
JetBlue Airways Corp. (a) | 34,918 | 381 | |||||||||
Jewett-Cameron Trading Co. Ltd. (a) | 328 | 2 | |||||||||
John Bean Technologies Corp. | 4,159 | 358 | |||||||||
Kadant, Inc. | 1,698 | 169 | |||||||||
Kaman Corp. | 3,997 | 166 | |||||||||
KAR Auction Services, Inc. | 19,988 | 275 | |||||||||
Kelly Services, Inc. Class A | 4,554 | 72 | |||||||||
Kennametal, Inc. | 11,431 | 328 | |||||||||
Kforce, Inc. (b) | 3,427 | 100 | |||||||||
Kimball International, Inc. Class B | 5,512 | 64 | |||||||||
Kirby Corp. (a) | 7,268 | 389 | |||||||||
Knight-Swift Transportation Holdings, Inc. | 17,132 | 715 | |||||||||
Knoll, Inc. | 7,068 | 86 | |||||||||
Korn Ferry | 7,959 | 245 | |||||||||
Kratos Defense & Security Solutions, Inc. (a) (b) | 17,631 | 276 | |||||||||
Landstar System, Inc. | 5,419 | 609 | |||||||||
Lawson Products, Inc. (a) | 500 | 16 | |||||||||
LB Foster Co. Class A (a) | 1,692 | 22 | |||||||||
Lennox International, Inc. | 4,951 | 1,155 | |||||||||
Limbach Holdings, Inc. (a) | 885 | 3 | |||||||||
Lincoln Electric Holdings, Inc. | 8,487 | 715 | |||||||||
Lindsay Corp. | 1,349 | 124 | |||||||||
LSI Industries, Inc. | 3,831 | 25 | |||||||||
Lydall, Inc. (a) | 2,558 | 35 | |||||||||
Lyft, Inc. Class A (a) (b) | 5,674 | 187 |
See notes to financial statements.
45
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Manitex International, Inc. (a) | 2,458 | $ | 12 | ||||||||
ManpowerGroup, Inc. | 8,882 | 611 | |||||||||
Marten Transport Ltd. | 5,719 | 144 | |||||||||
MasTec, Inc. (a) | 7,564 | 339 | |||||||||
Mastech Digital, Inc. (a) | 528 | 14 | |||||||||
Matson, Inc. | 5,138 | 150 | |||||||||
Matthews International Corp. Class A | 4,521 | 86 | |||||||||
Maxar Technologies, Inc. (b) | 7,578 | 136 | |||||||||
McGrath RentCorp | 3,493 | 189 | |||||||||
Mercury Systems, Inc. (a) | 8,320 | 654 | |||||||||
Meritor, Inc. (a) | 8,869 | 176 | |||||||||
Mesa Air Group, Inc. (a) | 3,491 | 12 | |||||||||
Miller Industries, Inc. | 1,669 | 50 | |||||||||
Mistras Group, Inc. (a) | 3,128 | 12 | |||||||||
Mobile Mini, Inc. | 6,339 | 187 | |||||||||
Moog, Inc. Class A | 3,835 | 203 | |||||||||
MRC Global, Inc. (a) | 11,167 | 66 | |||||||||
MSA Safety, Inc. | 4,899 | 561 | |||||||||
MSC Industrial Direct Co., Inc. | 5,418 | 394 | |||||||||
Mueller Industries, Inc. | 8,209 | 218 | |||||||||
Mueller Water Products, Inc. Class A | 22,812 | 215 | |||||||||
MYR Group, Inc. (a) | 2,161 | 69 | |||||||||
National Presto Industries, Inc. | 732 | 64 | |||||||||
Navistar International Corp. (a) (b) | 13,884 | 392 | |||||||||
Nl Industries, Inc. | 1,394 | 5 | |||||||||
NN, Inc. (b) | 4,816 | 23 | |||||||||
Nordson Corp. | 8,421 | 1,597 | |||||||||
Northwest Pipe Co. (a) | 1,531 | 38 | |||||||||
NOW, Inc. (a) | 14,703 | 127 | |||||||||
nVent Electric PLC | 26,559 | 497 | |||||||||
Ocean Power Technologies, Inc. (a) | 2,710 | 2 | |||||||||
Odyssey Marine Exploration, Inc. (a) (b) | 1,395 | 7 | |||||||||
Omega Flex, Inc. | 357 | 38 | |||||||||
Orion Energy Systems, Inc. (a) | 4,325 | 15 | |||||||||
Orion Group Holdings, Inc. (a) | 4,455 | 14 | |||||||||
Oshkosh Corp. | 8,927 | 639 | |||||||||
Owens Corning, Inc. | 16,500 | 920 | |||||||||
PAM Transportation Services, Inc. (a) | 308 | 9 | |||||||||
Park Aerospace Corp. | 2,968 | 33 | |||||||||
Park-Ohio Holdings Corp. | 1,361 | 23 | |||||||||
Parsons Corp. (a) | 16,588 | 601 | |||||||||
Patrick Industries, Inc. | 3,438 | 211 | |||||||||
Patriot Transportation Holding, Inc. | 313 | 3 | |||||||||
Performant Financial Corp. (a) | 4,575 | 3 | |||||||||
Perma-Fix Environmental Services (a) | 1,694 | 11 | |||||||||
Perma-Pipe International Holdings, Inc. (a) | 1,124 | 6 | |||||||||
PGT Innovations, Inc. (a) | 7,232 | 113 | |||||||||
PICO Holdings, Inc. (a) | 2,857 | 24 | |||||||||
Pitney Bowes, Inc. (b) | 24,962 | 65 | |||||||||
Plug Power, Inc. (a) (b) | 50,708 | 416 |
See notes to financial statements.
46
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Polar Power, Inc. (a) | 682 | $ | 3 | ||||||||
Powell Industries, Inc. | 1,309 | 36 | |||||||||
Preformed Line Products Co. | 478 | 24 | |||||||||
Primoris Services Corp. | 6,572 | 117 | |||||||||
Proto Labs, Inc. (a) (b) | 2,417 | 272 | |||||||||
Quad/Graphics, Inc. | 4,882 | 16 | |||||||||
Quanex Building Products Corp. | 4,708 | 65 | |||||||||
Quest Resource Holding Corp. (a) | 1,631 | 2 | |||||||||
R.R. Donnelley & Sons Co. | 9,710 | 12 | |||||||||
Raven Industries, Inc. | 5,181 | 111 | |||||||||
RBC Bearings, Inc. (a) | 3,243 | 435 | |||||||||
RCM Technologies, Inc. (a) | 1,700 | 2 | |||||||||
Red Violet, Inc. (a) | 1,405 | 25 | |||||||||
Regal Beloit Corp. | 5,586 | 488 | |||||||||
Rekor Systems, Inc. (a) | 2,385 | 10 | |||||||||
Resideo Technologies, Inc. (a) | 19,049 | 223 | |||||||||
Resources Connection, Inc. | 4,648 | 56 | |||||||||
REV Group, Inc. | 4,254 | 26 | |||||||||
Rexnord Corp. | 18,922 | 552 | |||||||||
Rush Enterprises, Inc. Class A | 3,990 | 165 | |||||||||
Ryder System, Inc. | 7,679 | 288 | |||||||||
Saia, Inc. (a) (b) | 3,770 | 419 | |||||||||
Schneider National, Inc. Class B | 6,555 | 162 | |||||||||
SG Blocks, Inc. (a) | 1,431 | 4 | |||||||||
Shiftpixy, Inc. (a) | 294 | 2 | |||||||||
SIFCO Industries, Inc. (a) | 568 | 2 | |||||||||
Simpson Manufacturing Co., Inc. | 5,482 | 462 | |||||||||
Sino-Global Shipping America Ltd. (a) | 2,362 | 1 | |||||||||
SiteOne Landscape Supply, Inc. (a) (b) | 4,717 | 538 | |||||||||
SkyWest, Inc. | 7,251 | 237 | |||||||||
SP Plus Corp. (a) | 3,597 | 74 | |||||||||
Spirit AeroSystems Holdings, Inc. Class A | 16,859 | 404 | |||||||||
Spirit Airlines, Inc. (a) (b) | 12,876 | 229 | |||||||||
SPX Corp. (a) | 6,519 | 268 | |||||||||
SPX Flow, Inc. (a) | 5,020 | 188 | |||||||||
Standex International Corp. | 1,649 | 95 | |||||||||
Steelcase, Inc. Class A | 12,350 | 149 | |||||||||
Stericycle, Inc. (a) | 12,144 | 679 | |||||||||
Sterling Construction Co., Inc. (a) | 4,422 | 46 | |||||||||
Sunrun, Inc. (a) | 18,007 | 355 | |||||||||
Sunworks, Inc. (a) | 2,769 | 2 | |||||||||
Systemax, Inc. | 2,521 | 52 | |||||||||
Taylor Devices, Inc. (a) | 463 | 5 | |||||||||
Team, Inc. (a) (b) | 3,554 | 20 | |||||||||
Tennant Co. | 2,419 | 157 | |||||||||
Terex Corp. | 10,487 | 197 | |||||||||
Tetra Tech, Inc. | 8,176 | 647 | |||||||||
Textainer Group Holdings Ltd. (a) | 7,381 | 60 | |||||||||
The Brink's Co. | 7,215 | 328 | |||||||||
The Eastern Co. | 932 | 17 |
See notes to financial statements.
47
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
The Exone Co. (a) (b) | 1,577 | $ | 13 | ||||||||
The Goldfield Corp. (a) | 3,381 | 13 | |||||||||
The Gorman-Rupp Co. | 3,422 | 106 | |||||||||
The Greenbrier Cos., Inc. | 4,340 | 99 | |||||||||
The LS Starrett Co. Class A (a) | 844 | 3 | |||||||||
The Manitowoc Co., Inc. (a) | 5,396 | 59 | |||||||||
The Middleby Corp. (a) | 7,102 | 561 | |||||||||
The Shyft Group, Inc. | 5,203 | 88 | |||||||||
The Timken Co. | 10,981 | 500 | |||||||||
The Toro Co. | 15,110 | 1,001 | |||||||||
Thermon Group Holdings, Inc. (a) | 4,268 | 62 | |||||||||
Titan International, Inc. (b) | 8,866 | 13 | |||||||||
Titan Machinery, Inc. (a) | 2,777 | 30 | |||||||||
TPI Composites, Inc. (a) | 4,981 | 116 | |||||||||
TransUnion | 26,489 | 2,305 | |||||||||
Trex Co., Inc. (a) (b) | 8,658 | 1,126 | |||||||||
TriMas Corp. (a) | 6,205 | 149 | |||||||||
Trinet Group, Inc. (a) | 7,129 | 434 | |||||||||
Trinity Industries, Inc. (b) | 18,426 | 392 | |||||||||
Triumph Group, Inc. | 6,283 | 57 | |||||||||
TrueBlue, Inc. (a) | 5,164 | 79 | |||||||||
Tutor Perini Corp. (a) | 5,443 | 66 | |||||||||
Twin Disc, Inc. (a) | 1,691 | 9 | |||||||||
U.S. Ecology, Inc. | 4,715 | 160 | |||||||||
Uber Technologies, Inc. (a) | 253,654 | 7,883 | |||||||||
UFP Industries, Inc. | 8,836 | 437 | |||||||||
Ultralife Corp. (a) | 2,537 | 18 | |||||||||
UniFirst Corp. | 1,906 | 341 | |||||||||
Univar Solutions, Inc. (a) | 21,300 | 359 | |||||||||
Universal Logistics Holdings, Inc. | 1,268 | 22 | |||||||||
Upwork, Inc. (a) | 14,714 | 212 | |||||||||
USA Truck, Inc. (a) | 1,052 | 8 | |||||||||
Valmont Industries, Inc. | 3,304 | 375 | |||||||||
Vectrus, Inc. (a) | 1,482 | 73 | |||||||||
Veritiv Corp. (a) | 1,895 | 32 | |||||||||
Viad Corp. | 2,948 | 56 | |||||||||
Vicor Corp. (a) | 2,735 | 197 | |||||||||
Virco Manufacturing Corp. (a) | 2,167 | 6 | |||||||||
VirTra, Inc. (a) | 1,304 | 5 | |||||||||
Vivint Solar, Inc. (a) (b) | 8,805 | 87 | |||||||||
VSE Corp. | 1,170 | 37 | |||||||||
Wabash National Corp. | 7,021 | 75 | |||||||||
Watsco, Inc. | 4,257 | 756 | |||||||||
Watts Water Technologies, Inc. Class A | 3,175 | 257 | |||||||||
Welbilt, Inc. (a) | 19,272 | 117 | |||||||||
Werner Enterprises, Inc. | 5,693 | 248 | |||||||||
WESCO International, Inc. (a) (b) | 7,572 | 266 | |||||||||
Wilhelmina International, Inc. (a) (g) | 555 | 2 | |||||||||
Willdan Group, Inc. (a) | 1,744 | 44 | |||||||||
Williams Industrial Services Group, Inc. (a) | 3,535 | 5 |
See notes to financial statements.
48
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Willis Lease Finance Corp. (a) | 649 | $ | 16 | ||||||||
Willscot Corp. (a) | 6,181 | 76 | |||||||||
Woodward, Inc. | 7,960 | 617 | |||||||||
XPO Logistics, Inc. (a) (b) | 14,097 | 1,088 | |||||||||
YRC Worldwide, Inc. (a) (b) | 4,497 | 8 | |||||||||
85,699 | |||||||||||
Information Technology (19.9%): | |||||||||||
2u, Inc. (a) (b) | 8,065 | 306 | |||||||||
3d Systems Corp. (a) (b) | 15,990 | 112 | |||||||||
8x8, Inc. (a) | 14,986 | 240 | |||||||||
A10 Networks, Inc. (a) | 9,960 | 68 | |||||||||
Acacia Communications, Inc. (a) | 6,254 | 420 | |||||||||
ACI Worldwide, Inc. (a) | 15,791 | 426 | |||||||||
ACM Research, Inc. Class A (a) | 366 | 23 | |||||||||
ADDvantage Technologies Group, Inc. (a) | 827 | 3 | |||||||||
ADTRAN, Inc. | 6,855 | 75 | |||||||||
Advanced Energy Industries, Inc. (a) | 5,598 | 379 | |||||||||
Aehr Test Systems (a) | 3,870 | 8 | |||||||||
Agilysys, Inc. (a) | 3,463 | 62 | |||||||||
Airgain, Inc. (a) (b) | 1,435 | 15 | |||||||||
Akoustis Technologies, Inc. (a) (b) | 5,642 | 47 | |||||||||
Alarm.com Holdings, Inc. (a) (b) | 4,919 | 319 | |||||||||
Alliance Data Systems Corp. | 7,607 | 343 | |||||||||
Alpha & Omega Semiconductor Ltd. (a) | 3,289 | 36 | |||||||||
Altair Engineering, Inc. Class A (a) | 2,205 | 88 | |||||||||
Alteryx, Inc. Class A (a) (b) | 2,440 | 401 | |||||||||
Ambarella, Inc. (a) | 5,428 | 249 | |||||||||
American Software, Inc. Class A | 3,085 | 49 | |||||||||
Amkor Technology, Inc. (a) | 19,868 | 245 | |||||||||
Amtech Systems, Inc. (a) | 1,842 | 9 | |||||||||
Anaplan, Inc. (a) | 21,877 | 991 | |||||||||
Andrea Electronics Corp. (a) | 10,534 | — | (e) | ||||||||
Appfolio, Inc. Class A (a) | 2,188 | 356 | |||||||||
Appian Corp. (a) (b) | 1,934 | 99 | |||||||||
Applied DNA Sciences, Inc. (a) | 692 | 6 | |||||||||
Applied Optoelectronics, Inc. (a) (b) | 2,941 | 32 | |||||||||
Arlo Technologies, Inc. (a) | 9,446 | 24 | |||||||||
Arrow Electronics, Inc. (a) | 12,036 | 827 | |||||||||
Aspen Technology, Inc. (a) | 9,434 | 977 | |||||||||
AstroNova, Inc. | 1,062 | 8 | |||||||||
Asure Software, Inc. (a) | 2,091 | 13 | |||||||||
Atomera, Inc. (a) | 3,113 | 28 | |||||||||
Avalara, Inc. (a) | 12,394 | 1,650 | |||||||||
Avaya Holdings Corp. (a) (b) | 11,136 | 138 | |||||||||
Aviat Networks, Inc. (a) | 643 | 12 | |||||||||
Avid Technology, Inc. (a) | 5,511 | 40 | |||||||||
Avnet, Inc. | 14,943 | 417 | |||||||||
Aware, Inc. (a) | 2,207 | 7 | |||||||||
Axcelis Technologies, Inc. (a) | 4,312 | 120 | |||||||||
AXT, Inc. (a) | 6,455 | 31 |
See notes to financial statements.
49
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Badger Meter, Inc. | 3,966 | $ | 250 | ||||||||
Bel Fuse, Inc. Class B | 1,485 | 16 | |||||||||
Belden, Inc. | 6,064 | 197 | |||||||||
Benchmark Electronics, Inc. | 5,265 | 114 | |||||||||
Benefitfocus, Inc. (a) | 4,206 | 45 | |||||||||
Bill.com Holdings, Inc. (a) | 5,979 | 539 | |||||||||
BK Technologies Corp. | 1,575 | 5 | |||||||||
Black Knight, Inc. (a) | 16,132 | 1,171 | |||||||||
Blackbaud, Inc. | 6,090 | 348 | |||||||||
Blackline, Inc. (a) | 7,396 | 613 | |||||||||
Booz Allen Hamilton Holdings Corp. | 19,250 | 1,497 | |||||||||
Bottomline Technologies de, Inc. (a) | 5,686 | 289 | |||||||||
Box, Inc. Class A (a) | 23,995 | 498 | |||||||||
Boxlight Corp. Class A (a) | 4,524 | 4 | |||||||||
Bridgeline Digital, Inc. (a) | 720 | 1 | |||||||||
Brightcove, Inc. (a) | 5,637 | 44 | |||||||||
Brooks Automation, Inc. | 10,789 | 477 | |||||||||
BSQUARE Corp. (a) | 2,070 | 3 | |||||||||
Cabot Microelectronics Corp. | 4,350 | 607 | |||||||||
CACI International, Inc. Class A (a) | 3,670 | 796 | |||||||||
CalAmp Corp. (a) | 4,502 | 36 | |||||||||
Calix, Inc. Class A (a) | 7,902 | 118 | |||||||||
Cambium Networks Corp. (a) | 1,079 | 8 | |||||||||
Cardtronics PLC Class A (a) | 5,832 | 140 | |||||||||
Casa Systems, Inc. (a) | 6,701 | 28 | |||||||||
Cass Information Systems, Inc. | 1,794 | 70 | |||||||||
CCUR Holdings, Inc. | 908 | 3 | |||||||||
CDK Global, Inc. | 18,594 | 770 | |||||||||
Cemtrex, Inc. (a) | 2,485 | 4 | |||||||||
Cerence, Inc. (a) (b) | 5,769 | 236 | |||||||||
Ceridian HCM Holding, Inc. (a) | 9,753 | 773 | |||||||||
CEVA, Inc. (a) | 3,182 | 119 | |||||||||
ChannelAdvisor Corp. (a) | 3,816 | 60 | |||||||||
Ciena Corp. (a) | 23,487 | 1,272 | |||||||||
Cirrus Logic, Inc. (a) | 7,654 | 473 | |||||||||
Clearfield, Inc. (a) | 1,925 | 27 | |||||||||
ClearOne, Inc. (a) | 896 | 2 | |||||||||
ClearSign Technologies Corp. (a) | 3,324 | 7 | |||||||||
Cloudera, Inc. (a) | 42,707 | 543 | |||||||||
Cloudflare, Inc. Class A (a) | 6,126 | 220 | |||||||||
Coda Octopus Group, Inc. (a) (b) | 757 | 4 | |||||||||
Cognex Corp. | 24,826 | 1,483 | |||||||||
Coherent, Inc. (a) | 3,752 | 491 | |||||||||
Cohu, Inc. | 5,540 | 96 | |||||||||
CommScope Holding Co., Inc. (a) | 24,700 | 206 | |||||||||
Communications Systems, Inc. | 1,273 | 6 | |||||||||
CommVault Systems, Inc. (a) | 6,522 | 252 | |||||||||
Computer Task Group, Inc. (a) | 2,331 | 9 | |||||||||
Comtech Telecommunications Corp. | 3,577 | 60 | |||||||||
Conduent, Inc. (a) | 33,395 | 80 |
See notes to financial statements.
50
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
CoreLogic, Inc. | 10,014 | $ | 673 | ||||||||
Cornerstone OnDemand, Inc. (a) | 9,552 | 368 | |||||||||
Coupa Software, Inc. (a) | 9,748 | 2,702 | |||||||||
CPI Card Group, Inc. (a) | 793 | 2 | |||||||||
Cree, Inc. (a) | 13,275 | 786 | |||||||||
Crowdstrike Holdings, Inc. Class A (a) | 3,269 | 328 | |||||||||
CSG Systems International, Inc. | 4,782 | 198 | |||||||||
CSP, Inc. | 565 | 5 | |||||||||
CTS Corp. | 4,123 | 83 | |||||||||
CVD Equipment Corp. (a) | 970 | 3 | |||||||||
Cyberoptics Corp. (a) | 1,207 | 39 | |||||||||
Daktronics, Inc. | 5,761 | 25 | |||||||||
Dasan Zhone Solutions, Inc. (a) | 2,026 | 18 | |||||||||
Data I/O Corp. (a) | 1,382 | 5 | |||||||||
Datadog, Inc. Class A (a) | 4,028 | 350 | |||||||||
Dell Technologies, Inc. Class C (a) | 34,877 | 1,917 | |||||||||
Diebold Nixdorf, Inc. (a) | 11,227 | 68 | |||||||||
Digi International, Inc. (a) | 3,798 | 44 | |||||||||
Digimarc Corp. (a) (b) | 1,871 | 30 | |||||||||
Digital Ally, Inc. (a) | 2,831 | 9 | |||||||||
Diodes, Inc. (a) | 6,407 | 325 | |||||||||
DocuSign, Inc. (a) | 27,096 | 4,667 | |||||||||
Dolby Laboratories, Inc. Class A | 9,308 | 613 | |||||||||
Domo, Inc. Class B (a) (b) | 1,599 | 51 | |||||||||
Dropbox, Inc. Class A (a) | 6,254 | 136 | |||||||||
DSP Group, Inc. (a) | 3,317 | 53 | |||||||||
Dynatrace, Inc. (a) | 22,668 | 920 | |||||||||
Eastman Kodak Co. (a) | 3,015 | 7 | |||||||||
Ebix, Inc. | 2,924 | 65 | |||||||||
EchoStar Corp. Class A (a) | 7,570 | 212 | |||||||||
eGain Corp. (a) | 3,716 | 41 | |||||||||
eMagin Corp. (a) | 7,148 | 6 | |||||||||
EMCORE Corp. (a) | 4,198 | 13 | |||||||||
Endurance International Group Holdings, Inc. (a) | 12,280 | 49 | |||||||||
Entegris, Inc. | 19,464 | 1,149 | |||||||||
Envestnet, Inc. (a) | 8,457 | 622 | |||||||||
EPAM Systems, Inc. (a) | 8,793 | 2,216 | |||||||||
ePlus, Inc. (a) | 1,816 | 128 | |||||||||
Euronet Worldwide, Inc. (a) | 8,251 | 791 | |||||||||
Everbridge, Inc. (a) | 4,911 | 679 | |||||||||
Everi Holdings, Inc. (a) | 12,624 | 65 | |||||||||
Everspin Technologies, Inc. (a) | 2,385 | 17 | |||||||||
Evo Payments, Inc. Class A (a) | 2,487 | 57 | |||||||||
Evolving Systems, Inc. (a) | 1,394 | 2 | |||||||||
Exela Technologies, Inc. (a) (b) | 14,443 | 8 | |||||||||
ExlService Holdings, Inc. (a) | 5,019 | 318 | |||||||||
Extreme Networks, Inc. (a) | 17,584 | 76 | |||||||||
Fair Isaac Corp. (a) | 4,438 | 1,855 | |||||||||
FARO Technologies, Inc. (a) | 2,264 | 121 | |||||||||
Fastly, Inc. Class A (a) | 1,943 | 165 |
See notes to financial statements.
51
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Fireeye, Inc. (a) | 34,846 | $ | 424 | ||||||||
First Solar, Inc. (a) | 11,752 | 582 | |||||||||
Fitbit, Inc. Class A (a) (b) | 32,769 | 212 | |||||||||
Five9, Inc. (a) | 9,803 | 1,085 | |||||||||
Forescout Technologies, Inc. (a) (b) | 7,372 | 156 | |||||||||
FormFactor, Inc. (a) | 10,372 | 304 | |||||||||
Frequency Electronics, Inc. (a) | 827 | 7 | |||||||||
Genasys, Inc. (a) | 5,571 | 27 | |||||||||
Genpact Ltd. | 26,895 | 982 | |||||||||
GlobalSCAPE, Inc. | 1,919 | 19 | |||||||||
GoDaddy, Inc. Class A (a) | 10,361 | 760 | |||||||||
GreenSky, Inc. Class A (a) (b) | 6,646 | 33 | |||||||||
GSE Systems, Inc. (a) | 2,954 | 3 | |||||||||
GSI Technology, Inc. (a) | 3,232 | 23 | |||||||||
Guidewire Software, Inc. (a) | 13,239 | 1,468 | |||||||||
Harmonic, Inc. (a) (b) | 11,367 | 54 | |||||||||
HubSpot, Inc. (a) | 6,381 | 1,432 | |||||||||
I3 Verticals, Inc. Class A (a) | 1,108 | 34 | |||||||||
Ichor Holdings Ltd. (a) | 3,298 | 88 | |||||||||
Identiv, Inc. (a) | 2,615 | 13 | |||||||||
IEC Electronics Corp. (a) | 1,639 | 16 | |||||||||
II-VI, Inc. (a) (b) | 12,428 | 587 | |||||||||
Image Sensing Systems, Inc. (a) | 609 | 2 | |||||||||
Immersion Corp. (a) | 4,076 | 25 | |||||||||
Impinj, Inc. (a) (b) | 2,898 | 80 | |||||||||
Infinera Corp. (a) | 24,825 | 147 | |||||||||
Information Services Group, Inc. (a) | 5,845 | 12 | |||||||||
Innodata, Inc. (a) | 3,620 | 5 | |||||||||
Inphi Corp. (a) | 7,215 | 848 | |||||||||
Inpixon (a) (b) | 4,075 | 6 | |||||||||
Inseego Corp. (a) (b) | 11,487 | 133 | |||||||||
Insight Enterprises, Inc. (a) (b) | 4,388 | 216 | |||||||||
Intellicheck, Inc. (a) | 2,074 | 16 | |||||||||
Intelligent Systems Corp. (a) | 870 | 30 | |||||||||
InterDigital, Inc. (b) | 4,601 | 261 | |||||||||
inTEST Corp. (a) | 1,492 | 5 | |||||||||
Intevac, Inc. (a) | 3,121 | 17 | |||||||||
Inuvo, Inc. (a) | 9,761 | 5 | |||||||||
Issuer Direct Corp. (a) | 451 | 5 | |||||||||
Iteris, Inc. (a) | 5,600 | 27 | |||||||||
Itron, Inc. (a) | 5,610 | 372 | |||||||||
J2 Global, Inc. (a) (b) | 7,140 | 451 | |||||||||
Jabil, Inc. | 18,246 | 585 | |||||||||
KBR, Inc. | 21,533 | 486 | |||||||||
Key Tronic Corp. (a) | 1,466 | 8 | |||||||||
Kimball Electronics, Inc. (a) | 3,907 | 53 | |||||||||
Knowles Corp. (a) | 13,388 | 204 | |||||||||
Kopin Corp. (a) | 12,135 | 16 | |||||||||
Kulicke & Soffa Industries, Inc. | 9,447 | 197 | |||||||||
KVH Industries, Inc. (a) | 2,270 | 20 |
See notes to financial statements.
52
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Lantronix, Inc. (a) | 3,008 | $ | 11 | ||||||||
Lattice Semiconductor Corp. (a) | 19,240 | 546 | |||||||||
LightPath Technologies, Inc. Class A (a) | 3,957 | 13 | |||||||||
Limelight Networks, Inc. (a) | 17,705 | 130 | |||||||||
Littelfuse, Inc. | 3,469 | 592 | |||||||||
LivePerson, Inc. (a) | 7,791 | 323 | |||||||||
LiveRamp Holdings, Inc. (a) | 8,240 | 350 | |||||||||
LogMeIn, Inc. | 7,052 | 598 | |||||||||
Lumentum Holdings, Inc. (a) | 11,208 | 913 | |||||||||
Luna Innovations, Inc. (a) | 4,869 | 28 | |||||||||
MACOM Technology Solutions Holdings, Inc. (a) | 7,289 | 250 | |||||||||
Manhattan Associates, Inc. (a) | 7,900 | 744 | |||||||||
ManTech International Corp. Class A | 3,790 | 260 | |||||||||
Marin Software, Inc. (a) | 877 | 1 | |||||||||
Marvell Technology Group Ltd. | 81,661 | 2,863 | |||||||||
MAXIMUS, Inc. | 9,175 | 646 | |||||||||
MaxLinear, Inc. (a) | 8,516 | 183 | |||||||||
Medallia, Inc. (a) (b) | 11,385 | 287 | |||||||||
Mesa Laboratories, Inc. | 631 | 137 | |||||||||
Methode Electronics, Inc. | 5,363 | 168 | |||||||||
MicroStrategy, Inc. (a) | 1,232 | 146 | |||||||||
MicroVision, Inc. (a) (b) | 23,969 | 33 | |||||||||
Mitek Systems, Inc. (a) | 6,561 | 63 | |||||||||
MKS Instruments, Inc. | 7,670 | 869 | |||||||||
MobileIron, Inc. (a) | 14,354 | 71 | |||||||||
Model N, Inc. (a) (b) | 4,898 | 170 | |||||||||
MoneyGram International, Inc. (a) | 9,600 | 31 | |||||||||
MongoDB, Inc. (a) (b) | 294 | 67 | |||||||||
Monolithic Power Systems, Inc. | 6,920 | 1,639 | |||||||||
MoSys, Inc. (a) | 541 | 1 | |||||||||
MTS Systems Corp. | 2,781 | 49 | |||||||||
Napco Security Technologies, Inc. (a) | 2,035 | 48 | |||||||||
National Instruments Corp. | 15,590 | 603 | |||||||||
NCR Corp. (a) | 19,769 | 343 | |||||||||
NeoPhotonics Corp. (a) | 7,214 | 64 | |||||||||
Net Element, Inc. (a) | 641 | 6 | |||||||||
NETGEAR, Inc. (a) | 4,223 | 109 | |||||||||
Netlist, Inc. (a) | 27,510 | 16 | |||||||||
NetScout Systems, Inc. (a) (b) | 10,321 | 264 | |||||||||
NetSol Technologies, Inc. (a) | 1,902 | 5 | |||||||||
New Relic, Inc. (a) | 8,049 | 555 | |||||||||
NIC, Inc. | 9,120 | 209 | |||||||||
nLight, Inc. (a) | 4,983 | 111 | |||||||||
Novanta, Inc. (a) | 5,137 | 548 | |||||||||
Nuance Communications, Inc. (a) | 44,455 | 1,125 | |||||||||
Nutanix, Inc. Class A (a) (b) | 14,764 | 350 | |||||||||
NVE Corp. | 570 | 35 | |||||||||
NXT-ID, Inc. (a) | 4,640 | 2 | |||||||||
Okta, Inc. (a) | 5,866 | 1,175 | |||||||||
ON Semiconductor Corp. (a) | 63,426 | 1,256 |
See notes to financial statements.
53
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
One Stop Systems, Inc. (a) | 1,636 | $ | 3 | ||||||||
OneSpan, Inc. (a) | 5,016 | 140 | |||||||||
Onto Innovation, Inc. (a) | 7,020 | 239 | |||||||||
Optical Cable Corp. (a) | 966 | 2 | |||||||||
Orbital Energy Group, Inc. (a) | 4,091 | 3 | |||||||||
OSI Systems, Inc. (a) | 2,604 | 194 | |||||||||
PagerDuty, Inc. (a) | 7,384 | 211 | |||||||||
Palo Alto Networks, Inc. (a) (c) | 14,922 | 3,428 | |||||||||
PAR Technology Corp. (a) | 2,852 | 85 | |||||||||
ParkerVision, Inc. (a) | 7,554 | 4 | |||||||||
Paylocity Holding Corp. (a) (b) | 5,777 | 843 | |||||||||
Paysign, Inc. (a) | 4,877 | 47 | |||||||||
PC Connection, Inc. | 1,625 | 75 | |||||||||
PC-Telephone, Inc. | 2,844 | 19 | |||||||||
PDF Solutions, Inc. (a) | 3,198 | 63 | |||||||||
Pegasystems, Inc. | 6,059 | 613 | |||||||||
Perceptron, Inc. (a) | 1,439 | 5 | |||||||||
Perficient, Inc. (a) | 4,783 | 171 | |||||||||
Perspecta, Inc. | 20,790 | 483 | |||||||||
PFSweb, Inc. (a) | 2,487 | 17 | |||||||||
Photronics, Inc. (a) | 8,759 | 97 | |||||||||
Ping Identity Holding Corp. (a) | 2,827 | 91 | |||||||||
Pixelworks, Inc. (a) | 6,074 | 20 | |||||||||
Plantronics, Inc. | 3,356 | 49 | |||||||||
Plexus Corp. (a) | 3,778 | 267 | |||||||||
Pluralsight, Inc. Class A (a) | 3,844 | 69 | |||||||||
Power Integrations, Inc. | 4,064 | 480 | |||||||||
Powerfleet, Inc. (a) | 4,775 | 22 | |||||||||
PRGX Global, Inc. (a) | 3,689 | 17 | |||||||||
Progress Software Corp. | 6,476 | 251 | |||||||||
Proofpoint, Inc. (a) | 8,286 | 921 | |||||||||
PROS Holdings, Inc. (a) (b) | 4,804 | 213 | |||||||||
PTC, Inc. (a) | 16,146 | 1,256 | |||||||||
Pure Storage, Inc. Class A (a) | 14,367 | 249 | |||||||||
Q2 Holdings, Inc. (a) (b) | 7,694 | 660 | |||||||||
Qualys, Inc. (a) | 4,912 | 511 | |||||||||
Quicklogic Corp. (a) | 1,742 | 5 | |||||||||
Qumu Corp. (a) | 2,092 | 8 | |||||||||
Rambus, Inc. (a) | 16,379 | 249 | |||||||||
Rapid7, Inc. (a) | 7,981 | 407 | |||||||||
RealNetworks, Inc. (a) | 2,828 | 4 | |||||||||
RealPage, Inc. (a) | 14,080 | 915 | |||||||||
Research Frontiers, Inc. (a) | 4,278 | 17 | |||||||||
Resonant, Inc. (a) (b) | 8,425 | 20 | |||||||||
RF Industries Ltd. | 1,412 | 7 | |||||||||
Ribbon Communications, Inc. (a) | 17,039 | 67 | |||||||||
Richardson Electronics Ltd. | 1,591 | 6 | |||||||||
Rimini Street, Inc. (a) | 3,898 | 20 | |||||||||
RingCentral, Inc. Class A (a) | 10,487 | 2,990 | |||||||||
Riot Blockchain, Inc. (a) (b) | 4,530 | 10 |
See notes to financial statements.
54
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Rogers Corp. (a) | 2,729 | $ | 340 | ||||||||
Rubicon Technology, Inc. (a) | 366 | 3 | |||||||||
Sabre Corp. | 37,524 | 302 | |||||||||
Sailpoint Technologies Holding, Inc. (a) | 13,344 | 353 | |||||||||
Sanmina Corp. (a) | 9,748 | 244 | |||||||||
ScanSource, Inc. (a) | 3,281 | 79 | |||||||||
Science Applications International Corp. | 8,862 | 688 | |||||||||
Seachange International, Inc. (a) | 4,731 | 7 | |||||||||
SecureWorks Corp. Class A (a) (b) | 12,706 | 145 | |||||||||
Semtech Corp. (a) | 8,982 | 469 | |||||||||
ServiceSource International, Inc. (a) | 11,838 | 19 | |||||||||
SharpSpring, Inc. (a) | 1,590 | 14 | |||||||||
ShotSpotter, Inc. (a) (b) | 1,400 | 35 | |||||||||
SigmaTron International, Inc. (a) | 593 | 2 | |||||||||
Silicon Laboratories, Inc. (a) | 5,436 | 545 | |||||||||
Sitime Corp. (a) | 710 | 34 | |||||||||
Slack Technologies, Inc. Class A (a) (b) | 45,495 | 1,414 | |||||||||
SMART Global Holdings, Inc. (a) | 1,897 | 52 | |||||||||
Smartsheet, Inc. Class A (a) | 2,215 | 113 | |||||||||
Smith Micro Software, Inc. (a) | 6,129 | 27 | |||||||||
Socket Mobile, Inc. (a) | 829 | 1 | |||||||||
Solarwinds Corp. (a) | 12,583 | 222 | |||||||||
Sonim Technologies, Inc. (a) | 7,529 | 6 | |||||||||
Splunk, Inc. (a) | 22,706 | 4,513 | |||||||||
Sprout Social, Inc. Class A (a) | 1,440 | 39 | |||||||||
SPS Commerce, Inc. (a) | 4,992 | 375 | |||||||||
Square, Inc. Class A (a) | 37,676 | 3,953 | |||||||||
SS&C Technologies Holdings, Inc. | 37,970 | 2,145 | |||||||||
StarTek, Inc. (a) | 2,009 | 10 | |||||||||
Steel Connect, Inc. (a) | 6,818 | 4 | |||||||||
Summit Wireless Technologies, Inc. (a) | 1,220 | 3 | |||||||||
Sunpower Corp. (a) (b) | 13,717 | 105 | |||||||||
Superconductor Technologies, Inc. (a) | 3,876 | 1 | |||||||||
Support.com, Inc. | 2,499 | 4 | |||||||||
SVMK, Inc.. (a) | 18,108 | 426 | |||||||||
Switch, Inc. Class A (b) | 813 | 14 | |||||||||
Sykes Enterprises, Inc. (a) | 5,517 | 153 | |||||||||
Synacor, Inc. (a) | 4,776 | 5 | |||||||||
Synaptics, Inc. (a) | 4,464 | 268 | |||||||||
Synchronoss Technologies, Inc. (a) | 5,318 | 19 | |||||||||
SYNNEX Corp. | 4,761 | 570 | |||||||||
Tech Data Corp. (a) (f) | 5,313 | 770 | |||||||||
Telenav, Inc. (a) | 5,487 | 30 | |||||||||
Tenable Holdings, Inc. (a) | 10,089 | 301 | |||||||||
Teradata Corp. (a) | 16,602 | 345 | |||||||||
Teradyne, Inc. | 25,365 | 2,143 | |||||||||
TESSCO Technologies, Inc. | 877 | 5 | |||||||||
The Hackett Group, Inc. | 4,132 | 56 | |||||||||
The Rubicon Project, Inc. (a) | 17,517 | 117 | |||||||||
The Trade Desk, Inc. Class A (a) | 4,802 | 1,952 |
See notes to financial statements.
55
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
TransAct Technologies, Inc. | 1,268 | $ | 6 | ||||||||
Trimble, Inc. (a) | 34,437 | 1,487 | |||||||||
TTEC Holdings, Inc. | 2,743 | 128 | |||||||||
TTM Technologies, Inc. (a) (b) | 13,577 | 161 | |||||||||
Twilio, Inc. Class A (a) | 12,010 | 2,635 | |||||||||
Ubiquiti, Inc. (b) | 1,285 | 224 | |||||||||
Ultra Clean Holdings, Inc. (a) | 5,770 | 131 | |||||||||
Unisys Corp. (a) (b) | 7,941 | 87 | |||||||||
Universal Display Corp. | 6,337 | 948 | |||||||||
Universal Security Instruments, Inc. (a) | 246 | — | (e) | ||||||||
Upland Software, Inc. (a) | 3,234 | 112 | |||||||||
Varonis Systems, Inc. (a) | 4,657 | 412 | |||||||||
Veeco Instruments, Inc. (a) | 6,483 | 87 | |||||||||
Verint Systems, Inc. (a) | 9,548 | 431 | |||||||||
Veritone, Inc. (a) | 3,553 | 53 | |||||||||
Verra Mobility Corp. (a) | 20,119 | 207 | |||||||||
ViaSat, Inc. (a) | 8,569 | 329 | |||||||||
Viavi Solutions, Inc. (a) | 32,966 | 420 | |||||||||
VirnetX Holding Corp. (b) | 10,006 | 65 | |||||||||
Virtusa Corp. (a) | 4,408 | 143 | |||||||||
Vishay Intertechnology, Inc. | 17,025 | 260 | |||||||||
Vishay Precision Group, Inc. (a) | 1,983 | 49 | |||||||||
Vislink Technologies, Inc. (a) (b) | 14,837 | 9 | |||||||||
VMware, Inc. Class A (a) (b) | 12,652 | 1,959 | |||||||||
Wayside Technology Group, Inc. | 571 | 15 | |||||||||
Westell Technologies, Inc. Class A (a) | 1,638 | 1 | |||||||||
WEX, Inc. (a) | 5,926 | 978 | |||||||||
WidePoint Corp. (a) | 14,097 | 10 | |||||||||
Wireless Telecom Group, Inc. (a) | 3,276 | 3 | |||||||||
Workday, Inc. Class A (a) | 15,411 | 2,888 | |||||||||
Workiva, Inc. (a) | 4,281 | 229 | |||||||||
Xperi Holding Corp. | 16,631 | 245 | |||||||||
Yext, Inc. (a) (b) | 13,825 | 230 | |||||||||
Zendesk, Inc. (a) | 15,750 | 1,394 | |||||||||
Zix Corp. (a) | 9,002 | 62 | |||||||||
Zoom Video Communications, Inc. Class A (a) | 3,795 | 962 | |||||||||
Zscaler, Inc. (a) (b) | 12,180 | 1,334 | |||||||||
Zuora, Inc. Class A (a) | 2,144 | 27 | |||||||||
138,140 | |||||||||||
Materials (3.7%): | |||||||||||
Advanced Emissions Solutions, Inc. | 2,923 | 14 | |||||||||
Advansix, Inc. (a) | 3,814 | 45 | |||||||||
Alcoa Corp. (a) | 29,697 | 334 | |||||||||
Allegheny Technologies, Inc. (a) | 17,033 | 174 | |||||||||
American Vanguard Corp. | 3,703 | 51 | |||||||||
Ampco-Pittsburgh Corp. (a) | 1,490 | 5 | |||||||||
AptarGroup, Inc. | 8,957 | 1,003 | |||||||||
Ashland Global Holdings, Inc. | 9,351 | 646 | |||||||||
Axalta Coating Systems Ltd. (a) | 35,602 | 803 | |||||||||
Balchem Corp. | 4,130 | 392 |
See notes to financial statements.
56
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Berry Global Group, Inc. (a) | 19,828 | $ | 879 | ||||||||
Boise Cascade Co. | 5,207 | 196 | |||||||||
Cabot Corp. | 8,732 | 324 | |||||||||
Carpenter Technology Corp. | 7,153 | 174 | |||||||||
Century Aluminum Co. (a) | 7,370 | 53 | |||||||||
Chase Corp. | 1,160 | 119 | |||||||||
Clearwater Paper Corp. (a) | 2,006 | 72 | |||||||||
Cleveland-Cliffs, Inc. (b) | 57,639 | 318 | |||||||||
Coeur Mining, Inc. (a) | 38,082 | 193 | |||||||||
Commercial Metals Co. | 18,017 | 368 | |||||||||
Compass Minerals International, Inc. | 4,789 | 233 | |||||||||
Core Molding Technologies, Inc. (a) | 1,201 | 5 | |||||||||
Crown Holdings, Inc. (a) | 20,153 | 1,313 | |||||||||
Eagle Materials, Inc. | 6,437 | 453 | |||||||||
Ferro Corp. (a) | 11,062 | 132 | |||||||||
Flotek Industries, Inc. (a) | 10,539 | 13 | |||||||||
Forterra, Inc. (a) | 3,394 | 38 | |||||||||
Friedman Industries, Inc. | 1,177 | 6 | |||||||||
Futurefuel Corp. | 3,751 | 45 | |||||||||
GCP Applied Technologies, Inc. (a) | 11,035 | 205 | |||||||||
General Moly, Inc. (a) | 15,660 | 3 | |||||||||
Golden Minerals Co. (a) | 14,655 | 6 | |||||||||
Graphic Packaging Holding Co. | 44,616 | 624 | |||||||||
Greif, Inc. Class A | 3,340 | 115 | |||||||||
H.B. Fuller Co. | 7,001 | 312 | |||||||||
Hawkins, Inc. | 1,336 | 57 | |||||||||
Haynes International, Inc. | 1,436 | 34 | |||||||||
Hecla Mining Co. | 82,270 | 269 | |||||||||
Huntsman Corp. | 33,002 | 593 | |||||||||
Ingevity Corp. (a) | 6,166 | 324 | |||||||||
Innospec, Inc. | 3,098 | 239 | |||||||||
Intrepid Potash, Inc. (a) | 14,370 | 14 | |||||||||
Kaiser Aluminum Corp. | 2,151 | 158 | |||||||||
Koppers Holdings, Inc. (a) | 2,857 | 54 | |||||||||
Kraton Corp. (a) | 4,606 | 80 | |||||||||
Kronos Worldwide, Inc. | 3,690 | 38 | |||||||||
Livent Corp. (a) | 17,943 | 111 | |||||||||
Louisiana-Pacific Corp. | 16,791 | 431 | |||||||||
LSB Industries, Inc. (a) | 3,448 | 4 | |||||||||
Marrone Bio Innovations, Inc. (a) | 21,063 | 25 | |||||||||
Materion Corp. | 2,902 | 178 | |||||||||
Mayville Engineering Co., Inc. (a) | 1,201 | 9 | |||||||||
Minerals Technologies, Inc. | 4,645 | 218 | |||||||||
Myers Industries, Inc. | 4,751 | 69 | |||||||||
Nanophase Technologies Corp. (a) | 3,143 | 1 | |||||||||
Neenah, Inc. | 2,231 | 110 | |||||||||
NewMarket Corp. | 1,121 | 449 | |||||||||
Northern Technologies International Corp. | 1,330 | 11 | |||||||||
O-I Glass, Inc. | 20,797 | 187 | |||||||||
Olin Corp. | 20,171 | 232 |
See notes to financial statements.
57
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Olympic Steel, Inc. | 1,386 | $ | 16 | ||||||||
P.H. Glatfelter Co. | 6,407 | 103 | |||||||||
Paramount Gold Nevada Corp. (a) | 3,456 | 4 | |||||||||
PolyOne Corp. | 13,677 | 359 | |||||||||
PQ Group Holdings, Inc. (a) | 7,119 | 94 | |||||||||
Quaker Chemical Corp. (b) | 1,135 | 211 | |||||||||
Ramaco Resources, Inc. (a) | 1,868 | 4 | |||||||||
Rare Element Resources Ltd. (a) | 8,918 | 8 | |||||||||
Rayonier Advanced Materials, Inc. (a) | 9,358 | 26 | |||||||||
Reliance Steel & Aluminum Co. | 9,737 | 924 | |||||||||
Royal Gold, Inc. | 8,821 | 1,097 | |||||||||
RPM International, Inc. | 18,289 | 1,374 | |||||||||
Ryerson Holding Corp. (a) | 2,885 | 16 | |||||||||
Schnitzer Steel Industries, Inc. | 3,781 | 67 | |||||||||
Schweitzer-Mauduit International, Inc. | 3,776 | 126 | |||||||||
Sensient Technologies Corp. | 5,626 | 293 | |||||||||
Silgan Holdings, Inc. | 11,372 | 368 | |||||||||
Silver Bull Resources, Inc. (a) | 34,571 | 2 | |||||||||
Solitario Zinc Corp. (a) | 9,088 | 3 | |||||||||
Sonoco Products Co. | 15,183 | 794 | |||||||||
Southern Copper Corp. | 14,299 | 569 | |||||||||
Steel Dynamics, Inc. | 32,183 | 840 | |||||||||
Stepan Co. | 2,948 | 286 | |||||||||
Summit Materials, Inc. Class A (a) | 15,926 | 256 | |||||||||
SunCoke Energy, Inc. | 11,968 | 35 | |||||||||
Synalloy Corp. (a) | 1,310 | 10 | |||||||||
The Chemours Co. | 21,261 | 326 | |||||||||
The Scotts Miracle-Gro Co. | 5,785 | 778 | |||||||||
Timberline Resources Corp. (a) | 5,289 | — | (e) | ||||||||
TimkenSteel Corp. (a) | 5,444 | 21 | |||||||||
Trecora Resources (a) | 3,741 | 23 | |||||||||
Tredegar Corp. | 4,452 | 69 | |||||||||
Trinseo SA | 3,794 | 84 | |||||||||
U.S. Antimony Corp. (a) | 9,287 | 5 | |||||||||
U.S. Concrete, Inc. (a) | 2,075 | 51 | |||||||||
U.S. Gold Corp. (a) | 346 | 2 | |||||||||
UFP Technologies, Inc. (a) | 1,120 | 49 | |||||||||
United States Lime & Minerals, Inc. | 313 | 26 | |||||||||
United States Steel Corp. (b) | 34,843 | 252 | |||||||||
Universal Stainless & Alloy Products, Inc. (a) | 1,407 | 12 | |||||||||
Valhi, Inc. | 428 | 4 | |||||||||
Valvoline, Inc. | 26,445 | 511 | |||||||||
Verso Corp. Class A | 5,069 | 61 | |||||||||
Vista Gold Corp. (a) | 16,117 | 14 | |||||||||
W.R. Grace & Co. | 10,458 | 531 | |||||||||
Warrior Met Coal, Inc. | 7,485 | 115 | |||||||||
Westlake Chemical Corp. | 6,011 | 322 | |||||||||
Worthington Industries, Inc. | 5,692 | 212 | |||||||||
24,914 |
See notes to financial statements.
58
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Real Estate (8.5%): | |||||||||||
Acadia Realty Trust | 14,475 | $ | 188 | ||||||||
Agree Realty Corp. | 7,334 | 482 | |||||||||
Alexander & Baldwin, Inc. | 10,455 | 127 | |||||||||
Alexander's, Inc. | 455 | 110 | |||||||||
Alpine Income Property Trust, Inc. | 812 | 13 | |||||||||
American Assets Trust, Inc. | 10,099 | 281 | |||||||||
American Campus Communities, Inc. | 23,137 | 809 | |||||||||
American Finance Trust, Inc. | 8,941 | 71 | |||||||||
American Homes 4 Rent Class A | 43,931 | 1,182 | |||||||||
American Realty Investors, Inc. (a) | 349 | 3 | |||||||||
Americold Realty Trust | 31,991 | 1,161 | |||||||||
Apple Hospitality REIT, Inc. | 37,531 | 363 | |||||||||
Armada Hoffler Properties, Inc. | 7,978 | 79 | |||||||||
Ashford Hospitality Trust, Inc. | 16,459 | 12 | |||||||||
Bluerock Residential Growth REIT, Inc. | 3,786 | 31 | |||||||||
Braemar Hotels & Resorts, Inc. | 4,737 | 14 | |||||||||
Brandywine Realty Trust | 28,667 | 312 | |||||||||
Brixmor Property Group, Inc. | 49,845 | 639 | |||||||||
BRT Apartments Corp. | 2,226 | 24 | |||||||||
Camden Property Trust | 16,373 | 1,494 | |||||||||
CareTrust REIT, Inc. | 12,069 | 207 | |||||||||
CatchMark Timber Trust, Inc. Class A | 7,213 | 64 | |||||||||
CBL & Associates Properties, Inc. (a) (b) | 27,113 | 7 | |||||||||
Cedar Realty Trust, Inc. | 15,019 | 15 | |||||||||
Chatham Lodging Trust | 7,896 | 48 | |||||||||
CIM Commercial Trust Corp. | 1,645 | 18 | |||||||||
Clipper Realty, Inc. | 2,217 | 18 | |||||||||
Colony Capital, Inc. (b) | 76,981 | 185 | |||||||||
Columbia Property Trust, Inc. | 19,237 | 253 | |||||||||
Community Healthcare Trust, Inc. | 3,019 | 123 | |||||||||
Condor Hospitality Trust, Inc. | 969 | 4 | |||||||||
CoreCivic, Inc. | 17,901 | 168 | |||||||||
CorEnergy Infrastructure Trust, Inc. | 2,158 | 20 | |||||||||
Corepoint Lodging, Inc. | 8,898 | 37 | |||||||||
CoreSite Realty Corp. | 4,589 | 556 | |||||||||
Corporate Office Properties Trust | 18,860 | 478 | |||||||||
Cousins Properties, Inc. | 24,975 | 745 | |||||||||
CTO Realty Growth, Inc. | 665 | 26 | |||||||||
CubeSmart | 32,550 | 879 | |||||||||
CyrusOne, Inc. | 19,369 | 1,409 | |||||||||
DiamondRock Hospitality Co. | 33,501 | 185 | |||||||||
Diversified Healthcare Trust | 39,999 | 177 | |||||||||
Douglas Emmett, Inc. | 29,487 | 904 | |||||||||
Easterly Government Properties, Inc. | 12,630 | 292 | |||||||||
EastGroup Properties, Inc. | 6,566 | 779 | |||||||||
Empire State Realty Trust, Inc. | 17,996 | 126 | |||||||||
EPR Properties (b) | 11,724 | 388 | |||||||||
Equity Commonwealth | 20,429 | 658 | |||||||||
Equity LifeStyle Properties, Inc. | 30,626 | 1,914 |
See notes to financial statements.
59
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Essential Properties Realty Trust, Inc. (b) | 14,230 | $ | 211 | ||||||||
eXp World Holdings, Inc. (a) (b) | 5,044 | 86 | |||||||||
Farmland Partners, Inc. (b) | 3,867 | 26 | |||||||||
First Industrial Realty Trust, Inc. | 21,388 | 822 | |||||||||
Forestar Group, Inc. (a) | 2,827 | 43 | |||||||||
Four Corners Property Trust, Inc. | 9,222 | 225 | |||||||||
Franklin Street Properties Corp. | 18,036 | 92 | |||||||||
Front Yard Residential Corp. | 7,915 | 69 | |||||||||
FRP Holdings, Inc. Class A (a) | 973 | 39 | |||||||||
Gaming and Leisure Properties, Inc. | 32,224 | 1,115 | |||||||||
Getty Realty Corp. | 5,219 | 155 | |||||||||
Gladstone Commercial Corp. | 5,307 | 100 | |||||||||
Gladstone Land Corp. | 2,979 | 47 | |||||||||
Global Medical REIT, Inc. | 6,054 | 69 | |||||||||
Global Net Lease, Inc. | 15,042 | 252 | |||||||||
Griffin Industrial Realty, Inc. | 552 | 30 | |||||||||
Healthcare Realty Trust, Inc. | 22,687 | 665 | |||||||||
Healthcare Trust of America, Inc. Class A | 36,735 | 974 | |||||||||
Hersha Hospitality Trust | 6,509 | 37 | |||||||||
Highwoods Properties, Inc. | 17,467 | 652 | |||||||||
Hudson Pacific Properties, Inc. | 23,971 | 603 | |||||||||
Independence Realty Trust, Inc. | 13,535 | 156 | |||||||||
Industrial Logistics Properties Trust | 10,960 | 225 | |||||||||
Innovative Industrial Properties, Inc. (b) | 3,130 | 276 | |||||||||
Investors Real Estate Trust | 2,045 | 144 | |||||||||
Invitation Homes, Inc. | 85,944 | 2,365 | |||||||||
iStar, Inc. | 9,131 | 112 | |||||||||
JBG SMITH Properties | 20,441 | 604 | |||||||||
Jernigan Capital, Inc. | 3,325 | 45 | |||||||||
Jones Lang LaSalle, Inc. | 7,118 | 737 | |||||||||
Kennedy-Wilson Holdings, Inc. | 21,955 | 334 | |||||||||
Kilroy Realty Corp. | 17,994 | 1,056 | |||||||||
Kite Realty Group Trust (b) | 14,143 | 163 | |||||||||
Lamar Advertising Co. Class A | 9,995 | 667 | |||||||||
Lexington Realty Trust (b) | 36,396 | 384 | |||||||||
Life Storage, Inc. | 7,887 | 749 | |||||||||
LTC Properties, Inc. (b) | 5,539 | 209 | |||||||||
Mack Cali Realty Corp. | 14,319 | 219 | |||||||||
Marcus & Millichap, Inc. (a) | 4,028 | 116 | |||||||||
Maui Land & Pineapple Co., Inc. (a) | 1,237 | 14 | |||||||||
Medalist Diversified REIT, Inc. | 607 | 1 | |||||||||
Medical Properties Trust, Inc. | 79,951 | 1,503 | |||||||||
Monmouth Real Estate Investment Corp. | 16,458 | 238 | |||||||||
National Health Investors, Inc. | 7,507 | 456 | |||||||||
National Retail Properties, Inc. | 25,733 | 913 | |||||||||
National Storage Affiliates Trust | 11,457 | 328 | |||||||||
New Senior Investment Group, Inc. | 12,123 | 44 | |||||||||
Newmark Group, Inc. Class A | 25,172 | 122 | |||||||||
NexPoint Residential Trust, Inc. | 3,758 | 133 | |||||||||
Office Properties Income Trust | 8,104 | 210 |
See notes to financial statements.
60
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Omega Healthcare Investors, Inc. | 38,151 | $ | 1,134 | ||||||||
One Liberty Properties, Inc. | 2,878 | 51 | |||||||||
Outfront Media, Inc. | 22,087 | 313 | |||||||||
Paramount Group, Inc. | 29,455 | 227 | |||||||||
Park Hotels & Resorts, Inc. | 35,651 | 353 | |||||||||
Pebblebrook Hotel Trust | 21,985 | 300 | |||||||||
Pennsylvania Real Estate Invesment Trust (b) | 12,068 | 16 | |||||||||
Physicians Realty Trust | 31,333 | 549 | |||||||||
Piedmont Office Realty Trust, Inc. Class A | 18,631 | 309 | |||||||||
Plymouth Industrial REIT, Inc. | 2,494 | 32 | |||||||||
Postal Realty Trust, Inc. Class A | 753 | 12 | |||||||||
PotlatchDeltic Corp. | 10,019 | 381 | |||||||||
Power REIT (a) | 235 | 7 | |||||||||
Preferred Apartment Communities, Inc. Class A | 7,440 | 57 | |||||||||
PS Business Parks, Inc. | 3,420 | 453 | |||||||||
QTS Realty Trust, Inc. Class A (b) | 6,296 | 404 | |||||||||
Rafael Holdings, Inc. Class B (a) | 1,808 | 26 | |||||||||
Rayonier, Inc. | 16,046 | 398 | |||||||||
RE/MAX Holdings, Inc. | 2,012 | 63 | |||||||||
Redfin Corp. (a) (b) | 16,558 | 695 | |||||||||
Retail Opportunity Investments Corp. | 19,564 | 222 | |||||||||
Retail Properties of America, Inc. | 36,002 | 264 | |||||||||
Retail Value, Inc. | 2,765 | 34 | |||||||||
Rexford Industrial Realty, Inc. | 19,390 | 803 | |||||||||
RLJ Lodging Trust | 27,761 | 262 | |||||||||
RPT Realty | 13,549 | 94 | |||||||||
Ryman Hospitality Properties, Inc. | 9,242 | 320 | |||||||||
Sabra Health Care REIT, Inc. | 34,563 | 499 | |||||||||
Safehold, Inc. (b) | 2,488 | 143 | |||||||||
Saul Centers, Inc. | 2,223 | 72 | |||||||||
Seritage Growth Properties Class A (a) (b) | 2,988 | 34 | |||||||||
Service Properties Trust | 27,671 | 196 | |||||||||
SITE Centers Corp. | 26,956 | 218 | |||||||||
Sotherly Hotels, Inc. | 2,269 | 6 | |||||||||
Spirit Realty Capital, Inc. | 15,578 | 543 | |||||||||
STAG Industrial, Inc. | 25,005 | 733 | |||||||||
STORE Capital Corp. | 34,945 | 832 | |||||||||
Summit Hotel Properties, Inc. | 17,757 | 105 | |||||||||
Sun Communities, Inc. | 16,524 | 2,242 | |||||||||
Sunstone Hotel Investors, Inc. | 34,082 | 278 | |||||||||
Tanger Factory Outlet Centers, Inc. (b) | 15,716 | 112 | |||||||||
Taubman Centers, Inc. | 10,359 | 391 | |||||||||
Tejon Ranch Co. (a) | 4,189 | 60 | |||||||||
Terreno Realty Corp. | 10,700 | 563 | |||||||||
The GEO Group, Inc. | 18,161 | 215 | |||||||||
The Howard Hughes Corp. (a) | 6,743 | 350 | |||||||||
The InterGroup Corp. (a) | 151 | 4 | |||||||||
The Macerich Co. (b) | 18,847 | 169 | |||||||||
The RMR Group, Inc. Class A | 1,212 | 36 | |||||||||
The St. Joe Co. (a) | 3,764 | 73 |
See notes to financial statements.
61
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
UMH Properties, Inc. | 5,746 | $ | 74 | ||||||||
Uniti Group, Inc. | 26,112 | 244 | |||||||||
Universal Health Realty Income Trust | 2,175 | 173 | |||||||||
Urban Edge Properties | 19,595 | 233 | |||||||||
Urstadt Biddle Properties, Inc. Class A | 6,669 | 79 | |||||||||
VEREIT, Inc. | 172,170 | 1,107 | |||||||||
VICI Properties, Inc. | 85,246 | 1,721 | |||||||||
W.P. Carey, Inc. | 28,989 | 1,961 | |||||||||
Washington Prime Group, Inc. (b) | 31,504 | 26 | |||||||||
Washington Real Estate Investment Trust | 13,841 | 307 | |||||||||
Weingarten Realty Investors | 21,540 | 408 | |||||||||
Wheeler Real Estate Investment Trust, Inc. (a) | 930 | 2 | |||||||||
Whitestone REIT | 5,668 | 41 | |||||||||
Xenia Hotels & Resorts, Inc. | 16,025 | 150 | |||||||||
59,092 | |||||||||||
Utilities (2.4%): | |||||||||||
ALLETE, Inc. | 7,749 | 423 | |||||||||
American States Water Co. | 5,334 | 419 | |||||||||
Artesian Resources Corp. Class A | 1,409 | 51 | |||||||||
Atlantic Power Corp. (a) | 12,666 | 25 | |||||||||
Avangrid, Inc. (b) | 9,352 | 393 | |||||||||
Avista Corp. | 9,391 | 342 | |||||||||
Black Hills Corp. | 9,284 | 526 | |||||||||
Cadiz, Inc. (a) | 4,037 | 41 | |||||||||
California Water Service Group | 7,045 | 336 | |||||||||
Chesapeake Utilities Corp. | 2,183 | 183 | |||||||||
El Paso Electric Co. | 5,897 | 395 | |||||||||
Essential Utilities, Inc. | 34,609 | 1,463 | |||||||||
Genie Energy Ltd. Class B | 3,248 | 24 | |||||||||
Global Water Resources, Inc. | 1,516 | 16 | |||||||||
Hawaiian Electric Industries, Inc. | 16,883 | 609 | |||||||||
IDACORP, Inc. | 7,465 | 652 | |||||||||
MDU Resources Group, Inc. | 30,681 | 680 | |||||||||
MGE Energy, Inc. | 5,715 | 369 | |||||||||
Middlesex Water Co. | 2,433 | 163 | |||||||||
National Fuel Gas Co. | 13,826 | 580 | |||||||||
New Jersey Resources Corp. | 14,006 | 457 | |||||||||
Northwest Natural Holding Co. | 4,414 | 246 | |||||||||
NorthWestern Corp. | 7,386 | 403 | |||||||||
OGE Energy Corp. (b) | 29,617 | 899 | |||||||||
ONE Gas, Inc. | 7,288 | 562 | |||||||||
Ormat Technologies, Inc. (b) | 5,749 | 365 | |||||||||
Otter Tail Corp. (c) | 5,776 | 224 | |||||||||
PG&E Corp. (a) (b) | 83,734 | 743 | |||||||||
PNM Resources, Inc. | 10,714 | 412 | |||||||||
Portland General Electric Co. (c) | 13,993 | 585 | |||||||||
Pure Cycle Corp. (a) | 4,010 | 37 | |||||||||
RGC Resources, Inc. | 1,273 | 31 | |||||||||
SJW Group | 3,548 | 220 | |||||||||
South Jersey Industries, Inc. (b) | 12,438 | 311 | |||||||||
Southwest Gas Holdings, Inc. | 7,507 | 518 | |||||||||
Spark Energy, Inc. Class A | 1,307 | 9 |
See notes to financial statements.
62
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Spire, Inc. | 7,754 | $ | 510 | ||||||||
Sunnova Energy International, Inc. (a) (b) | 5,511 | 94 | |||||||||
TerraForm Power, Inc. Class A | 14,474 | 267 | |||||||||
The York Water Co. | 2,059 | 99 | |||||||||
UGI Corp. | 32,217 | 1,024 | |||||||||
Unitil Corp. (c) | 2,340 | 105 | |||||||||
Vistra Corp. | 76,400 | 1,423 | |||||||||
17,234 | |||||||||||
Total Common Stocks (Cost $449,058) | 682,571 | ||||||||||
Rights (0.0%) (h) | |||||||||||
Consumer Discretionary (0.0%): (h) | |||||||||||
HG Holdings, Inc. (a) (f) (g) | 2,421 | — | (e) | ||||||||
Health Care (0.0%): (h) | |||||||||||
Achillion Pharmaceuticals (a) (d) (g) | 22,837 | 11 | |||||||||
Alder Biopharmaceuticals, Inc. (a) (d) (g) | 13,300 | 12 | |||||||||
Biolase, Inc. (a) (d) (g) | 7,370 | — | (e) | ||||||||
Contra Oncomed Pharmaceuticals Class B (a) (d) (g) | 3,414 | — | (e) | ||||||||
Elanco Animal Health, Inc. (a) (d) (g) | 8,052 | — | (e) | ||||||||
Oncternal Therapeutics, Inc. (a) (d) (g) | 254 | — | (e) | ||||||||
Progenics Pharmaceuticals, Inc. (a) (d) (g) | 10,103 | 2 | |||||||||
Qualigen Therapeutics, Inc. (a) (d) (g) | 7,487 | — | (e) | ||||||||
Seelos Therapeutics, Inc. (a) (d) (g) | 41 | — | (e) | ||||||||
Stemline Therapeutics, Inc. (a) (d) (g) | 5,762 | 2 | |||||||||
27 | |||||||||||
Total Rights (Cost $3) | 27 | ||||||||||
Warrants (0.0%) (h) | |||||||||||
Health Care (0.0%): (h) | |||||||||||
Galectin Therapeutics, Inc. Class B (d) (g) | 7,552 | — | (e) | ||||||||
Total Warrants (Cost $—) | — | (e) | |||||||||
Mutual Funds (0.0%) (h) | |||||||||||
180 Degree Capital Corp. | 4,394 | 7 | |||||||||
OFS Credit Co., Inc. | 302 | 3 | |||||||||
Total Mutual Funds (Cost $14) | 10 | ||||||||||
Collateral for Securities Loaned^ (8.6%) | |||||||||||
Fidelity Investments Money Market Government Portfolio I shares, 0.05% (i) | 20,467,913 | 20,468 | |||||||||
Goldman Sachs Financial Square Government Fund Institutional Shares, 0.15% (i) | 22,739,775 | 22,740 | |||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (i) | 2,815,852 | 2,816 | |||||||||
Invesco Government & Agency Portfolio Institutional Shares, 0.09% (i) | 13,192,157 | 13,192 | |||||||||
Total Collateral for Securities Loaned (Cost $59,216) | 59,216 | ||||||||||
Total Investments (Cost $508,291) — 107.9% | 741,824 | ||||||||||
Liabilities in excess of other assets — (7.9)% | (54,423 | ) | |||||||||
NET ASSETS — 100.00% | $ | 687,401 |
See notes to financial statements.
63
USAA Mutual Funds Trust USAA Extended Market Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) All or a portion of this security has been segregated as collateral for derivative instruments.
(d) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.0% of the Fund's net assets as of June 30, 2020. This security is classified as Level 3 within the fair value hierarchy. (See Note 2)
(e) Rounds to less than $1 thousand.
(f) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.1% of the Fund's net assets as of June 30, 2020. (See Note 2)
(g) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, illiquid securities were less than 0.05% of the Fund's net assets.
(h) Amount represents less than 0.05% of net assets.
(i) Rate disclosed is the daily yield on June 30, 2020.
(j) Affiliated holding (See note 8)
(k) Issuer is in bankruptcy on June 30, 2020.
PLC — Public Limited Company
REIT — Real Estate Investment Trust
Futures Contracts Purchased
(Amounts not in thousands)
Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
E-Mini Index Futures | 62 | 9/18/20 | $ | 4,387,357 | $ | 4,456,560 | $ | 69,203 | |||||||||||||||
Total unrealized appreciation | $ | 69,203 | |||||||||||||||||||||
Total unrealized depreciation | — | ||||||||||||||||||||||
Total net unrealized appreciation (depreciation) | $ | 69,203 |
See notes to financial statements.
64
USAA Mutual Funds Trust | Statement of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA Extended Market Index Fund | |||||||
Assets: | |||||||
Affiliated investments, at value (Cost $44) | $ | 35 | |||||
Unaffiliated investments, at value (Cost $508,247) | 741,789 | (a) | |||||
Cash and cash equivalents | 2,924 | ||||||
Deposits with brokers for futures contracts | 1,509 | ||||||
Receivables: | |||||||
Interest and dividends | 787 | ||||||
Capital shares issued | 37 | ||||||
Investments sold | 85 | ||||||
Variation margin on open futures contracts | 45 | ||||||
Prepaid expenses | 14 | ||||||
Total Assets | 747,225 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 59,216 | ||||||
Investments purchased | 55 | ||||||
Capital shares redeemed | 331 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 56 | ||||||
Administration fees | 85 | ||||||
Custodian fees | 28 | ||||||
Transfer agent fees | 1 | ||||||
Compliance fees | 1 | ||||||
Trustees' fees | 1 | ||||||
Other accrued expenses | 50 | ||||||
Total Liabilities | 59,824 | ||||||
Net Assets: | |||||||
Capital | 443,573 | ||||||
Total distributable earnings/(loss) | 243,828 | ||||||
Net Assets | $ | 687,401 | |||||
Shares (unlimited number of shares authorized with no par value): | 36,715 | ||||||
Net asset value, offering and redemption price per share: (b) | $ | 18.72 |
(a) Includes $57,518 of securities on loan.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
65
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA Extended Market Index Fund | |||||||
Investment Income: | |||||||
Dividends | $ | 5,318 | |||||
Interest | 15 | ||||||
Securities lending (net of fees) | 340 | ||||||
Foreign tax withholding | (3 | ) | |||||
Total Income | 5,670 | ||||||
Expenses: | |||||||
Investment advisory fees | 339 | ||||||
Administration fees | 508 | ||||||
Sub-Administration fees | 13 | ||||||
Custodian fees | 20 | ||||||
Transfer agent fees | 273 | ||||||
Trustees' fees | 23 | ||||||
Compliance fees | 2 | ||||||
Legal and audit fees | 37 | ||||||
State registration and filing fees | 16 | ||||||
Interfund lending fees | — | (a) | |||||
Other expenses | 54 | ||||||
Total Expenses | 1,285 | ||||||
Net Investment Income (Loss) | 4,385 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from sales of affiliated funds | (1 | ) | |||||
Net realized gains (losses) from unaffiliated investment securities | 2,384 | ||||||
Net realized gains (losses) from futures contracts | 784 | ||||||
Net change in unrealized appreciation/depreciation on affiliated funds | (9 | ) | |||||
Net change in unrealized appreciation/depreciation on investment securities | (62,147 | ) | |||||
Net change in unrealized appreciation/depreciation on futures contracts | 8 | ||||||
Net realized/unrealized gains (losses) on investments | (58,981 | ) | |||||
Change in net assets resulting from operations | $ | (54,596 | ) |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
66
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Extended Market Index Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 4,385 | $ | 7,976 | |||||||
Net realized gains (losses) from investments | 3,167 | 9,961 | |||||||||
Net change in unrealized appreciation/depreciation on investments | (62,148 | ) | 161,215 | ||||||||
Change in net assets resulting from operations | (54,596 | ) | 179,152 | ||||||||
Change in net assets resulting from distributions to shareholders | — | (24,534 | ) | ||||||||
Change in net assets resulting from capital transactions | (46,667 | ) | (22,360 | ) | |||||||
Change in net assets | (101,263 | ) | 132,258 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 788,664 | 656,406 | |||||||||
End of period | $ | 687,401 | $ | 788,664 | |||||||
Capital Transactions: | |||||||||||
Proceeds from shares issued | $ | 30,446 | $ | 45,950 | |||||||
Distributions reinvested | — | (a) | 23,860 | ||||||||
Cost of shares redeemed | (77,113 | ) | (92,170 | ) | |||||||
Change in net assets resulting from capital transactions | $ | (46,667 | ) | $ | (22,360 | ) | |||||
Share Transactions: | |||||||||||
Issued | 1,812 | 2,434 | |||||||||
Reinvested | — | (a) | 1,189 | ||||||||
Redeemed | (4,517 | ) | (4,867 | ) | |||||||
Change in Shares | (2,705 | ) | (1,244 | ) |
(a) Rounds to less than 1 thousand.
See notes to financial statements.
67
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
USAA Extended Market Index Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 20.01 | 0.11 | (c) | (1.40 | ) | (1.29 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 16.14 | 0.20 | (c) | 4.31 | 4.51 | (0.26 | ) | (0.38 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 18.98 | 0.17 | (1.96 | ) | (1.79 | ) | (0.17 | ) | (0.88 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 17.34 | 0.18 | 2.88 | 3.06 | (0.18 | ) | (1.24 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 16.06 | 0.18 | 2.33 | 2.51 | (0.18 | ) | (1.05 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 18.02 | 0.14 | (0.81 | ) | (0.67 | ) | (0.15 | ) | (1.14 | ) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year
(b) Annualized for periods less than one year.
(c) Per share net investment income (loss) has been calculated using the average daily shares method.
(d) Prior to February 24, 2018, the Fund was a feeder fund in a master-feeder structure investing in Master Extended Market Index Series ("the Series") before converting to a stand-alone fund. Expenses include expenses allocated to the Fund by the Series prior to the conversion.
(e) Reflects the period of February 24, 2018 to December 31, 2018, after the Fund converted to a stand-alone fund.
(f) Represents the portfolio turnover of the Master Extended Market Index Series.
(g) Prior to May 1, 2015, USAA Asset Management Company, the former investment adviser to the Fund, voluntarily agreed to limit the annual expenses of the Fund to 0.50% of the Fund's average daily net assets.
See notes to financial statements.
68
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b) | Net Investment Income (Loss)(b) | Gross Expenses(b) | Net Assets, End of Period (000's) | Portfolio Turnover(a) | ||||||||||||||||||||||||||||
USAA Extended Market Index Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 18.72 | (6.45 | )% | 0.38 | % | 1.30 | % | 0.38 | % | $ | 687,401 | 12 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (0.64 | ) | $ | 20.01 | 27.94 | % | 0.41 | % | 1.06 | % | 0.41 | % | $ | 788,664 | 24 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (1.05 | ) | $ | 16.14 | (9.70 | )% | 0.43 | %(d) | 0.90 | %(d) | 0.43 | %(d) | $ | 656,406 | 12 | %(e) | |||||||||||||||||||
Year Ended December 31, 2017 | (1.42 | ) | $ | 18.98 | 17.72 | % | 0.44 | % | 0.93 | % | 0.44 | % | $ | 765,211 | 11 | %(f) | |||||||||||||||||||
Year Ended December 31, 2016 | (1.23 | ) | $ | 17.34 | 15.48 | % | 0.48 | %(g) | 1.14 | % | 0.48 | %(g) | $ | 671,703 | 13 | %(f) | |||||||||||||||||||
Year Ended December 31, 2015 | (1.29 | ) | $ | 16.06 | (3.76 | )% | 0.48 | % | 0.86 | % | 0.48 | % | $ | 619,624 | 14 | %(f) |
See notes to financial statements.
69
USAA Mutual Funds Trust | Notes to Financial Statements June 30, 2020 |
(Unaudited)
1. Organization:
USAA Mutual Funds Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 47 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value.
The accompanying financial statements are those of USAA Extended Market Index Fund (the "Fund"). The Fund is classified as diversified under the 1940 Act.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.
Investment Valuation:
The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
The Adviser has established the Pricing and Liquidity Committee (the "Committee"), and subject to Trust's Board of Trustees (the "Board") oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
70
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Investments in open-end investment companies are valued at net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt securities of United States ("U.S.") issuers, along with corporate and municipal securities, including short-term investments maturing in 60 days or less, may be valued using evaluated bid or the last sales price to price securities by dealers or an independent pricing service approved by the Board. These valuations are typically categorized as Level 2 in the fair value hierarchy.
In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stock | $ | 681,792 | $ | 775 | $ | 4 | $ | 682,571 | |||||||||||
Rights | — | 1 | 26 | 27 | |||||||||||||||
Warrants | — | — | — | (a) | — | ||||||||||||||
Mutual Funds | 10 | — | — | 10 | |||||||||||||||
Collateral for Securities Loaned | 59,216 | — | — | 59,216 | |||||||||||||||
Total | $ | 741,018 | $ | 776 | $ | 30 | $ | 741,824 | |||||||||||
Other Financial Investments^: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Futures Contracts | 69 | — | — | 69 | |||||||||||||||
Total | $ | 69 | $ | — | $ | — | $ | 69 |
(a) Amount is less than $1 thousand.
^ Futures Contracts are valued at the unrealized appreciation (depreciation) on the investment.
For the six months ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
Real Estate Investment Trusts ("REITs"):
The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.
Investment Companies:
The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
71
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Derivative Instruments:
Futures Contracts:
The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is reflected on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.
During the period ended June 30, 2020, the Fund held futures contracts primarily for the strategy of gaining exposure to a particular asset class or securities market.
Summary of Derivative Instruments:
The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of June 30, 2020 (amounts in thousands):
Assets | |||||||
Variation Margin Receivable on Open Futures Contracts* | |||||||
Equity Risk Exposure: | $ | 69 |
* Includes cumulative appreciation/depreciation of futures contracts as reported on the Schedule of Portfolio Investments. Only current day's variation margin for futures contracts are reported within the Statement of Assets and Liabilities.
The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2020 (amounts in thousands):
Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations | Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations | ||||||||||
Net Realized Gains (Losses) from Futures Contracts | Net Change in Unrealized Appreciation/Depreciation on Futures Contracts | ||||||||||
Equity Risk Exposure: | $ | 784 | $ | 8 |
72
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The underlying face value of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Withholding taxes on interest, dividends and gains as a result of certain investments in ADRs by the Fund has been provided for in accordance with each investment's applicable country's tax rules and rates.
Securities Lending:
The Fund, through a securities lending agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income, net of income retained by Citibank. Borrowers are required to secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are cured the next business day once the shortfall exceeds $100 thousand. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments, primarily open-end investment companies. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Fund's agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed on the Fund's Schedule of Portfolio of Investments and Financial Statements while non-cash collateral is not included. The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of June 30, 2020:
Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
$ | 57,518 | $ | — | $ | 59,216 |
Federal Income Taxes:
It is the Fund's policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.
Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
73
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Allocations:
Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
3. Purchases and Sales:
Cost of purchases and proceeds from sales/maturities of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2020, were as follows for the Fund (amounts in thousands):
Excluding U.S. Government Securities | |||||||||||
Purchases | Sales | ||||||||||
$ | 79,076 | $ | 120,216 |
There were no purchases and sales of U.S. government securities during the six months ended June 30, 2020.
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC. Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annualized rate of 0.10% of the Fund's average daily net assets. The amount incurred and paid to VCM for the six months ended June 30, 2020, are reflected on the Statement of Operations as Investment Advisory fees.
The Trust relies on an exemptive order granted to VCM and its affiliated funds by the SEC in March 2019 permitting the use of a "manager-of-managers" structure for certain funds. Prior to that date, the Trust relied on a similar exemptive order granted by the SEC to the Trust and its affiliated persons. Under a manager-of-managers structure, the investment adviser may select (with approval of the Board and without shareholder approval) one or more subadvisers to manage the day-to-day investment of a fund's assets. For the six months ended June 30, 2020, the Fund had no subadvisers.
Administration and Servicing Fees:
VCM serves as the Fund's administrator and fund accountant. Under the Fund Administration, Servicing and Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.15% of average daily net assets of the Fund. Amounts incurred for the six months ended June 30, 2020, are reflected on the Statement of Operations as Administration fees.
The Fund (as part of the Trust) has entered into an agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. Funds in the Trust, Victory Variable Insurance Funds, Victory Portfolios, and Victory Portfolios II (collectively, the "Victory Funds Complex") in the aggregate, compensates the Adviser for these services. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Compliance fees.
74
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for reasonable out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Funds under the Fund Administration, Servicing, and Accounting Agreement. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Sub-Administration fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), provides transfer agency services to the Fund. VCTA, an affiliate of the Adviser, provides transfer agent services to the Fund based on an annual charge of $23 per shareholder account plus out-of-pocket expenses. VCTA pays a portion of these fees to certain intermediaries for the administration and servicing of accounts that are held with such intermediaries. The amount incurred and paid to VCTA for the six months ended June 30, 2020, are reflected on the Statement of Operations as Transfer Agent fees.
FIS Investor Services LLC serves as sub-transfer agent and dividend disbursing agent for the Fund pursuant to a Sub-Transfer Agent agreement between VCTA and FIS Investor Services LLC.VCTA provides FIS Investor Services LLC a fee for providing these services.
Distributor/Underwriting Services:
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Advisers, Inc.
Other Fees:
Citibank serves as the Fund's custodian.
K&L Gates LLP provides legal services to the Trust.
The Adviser has entered into an expense limitation agreement with the Fund until at least June 30, 2021. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by the Fund in any fiscal year exceed the expense limit for the Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures, which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limit (excluding voluntary waivers) is 0.43%.
Under this expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. As of June 30, 2020, there are no amounts available to be repaid to the Adviser.
The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2020.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, Administrator, Sub-Administrator, Sub-Fund Accountant, and Legal.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
75
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region. Geopolitical and other risks, including war, terrorism, trade disputes, political or economic dysfunction within some nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as the coronavirus (or COVID-19), may result in, among other things, closing borders, disruptions to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer activity, as well as general concern and uncertainty. The impact may be short-term or may last for extended periods.
The COVID-19 pandemic, which has spread rapidly across the world, has led and will continue to lead for an unknown period of time to disruptions in local, regional, national and global markets and economies. Among other things, the outbreak has resulted in, and until fully resolved is likely to continue to result in, among other things (1) government imposition of various forms of "stay-at-home" orders and the closing of "non-essential" businesses, resulting in significant disruption to the businesses of many issuers as well as lay-offs of employees; (2) increased requests by issuers of debt instruments for amendments and waivers of agreements to avoid default and increased defaults; (3) volatility and disruption of markets, including greater volatility in pricing and spreads; and (4) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general.
Overall stock market risks may affect the value of the Fund. Domestic and international factors such as political events, war, trade disputes, interest rate levels and other fiscal and monetary policy changes, pandemics and other public health crises, and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. The impact of these and other factors may be short-term or may last for extended periods.
The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general economic conditions. A company's earnings or dividends may not increase as expected due to poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military confrontations, war, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.
The Fund invests in small- and mid-capitalization companies, which may be more vulnerable than larger companies to adverse business or economic conditions. Securities of small- and mid-capitalization companies may be less liquid and more volatile than securities of larger companies or the market in general and, therefore, may involve greater risk than investing in securities of larger companies.
6. Borrowing and Interfund Lending:
Line of Credit:
For the six months ended June 30, 2020, the Victory Funds Complex participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date of June 28, 2021. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs. For the six months ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee.
76
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Interest charged to the Fund, if any, during the period is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other Fund in the Victory Funds Complex relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period is reflected on the Statement of Operations under Income on Interfund lending.
The average borrowing and lending for the days outstanding and average interest rate for the Fund during the six months ended June 30, 2020 were as follows (amounts in thousands):
Borrower or Lender | Amount Outstanding at June 30, 2020 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||||||
Borrower | $ | — | $ | 1,215 | 1 | 0.66 | % | $ | 1,215 |
*For the six months ended June 30, 2020, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.
The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.
The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2020.
During the most recent tax year ended December 31, 2019 the Fund had no capital loss carryforwards, for federal income tax purposes.
8. Affiliated Securities:
An affiliated security is a security in which the Fund has ownership of at least 5% of the security's outstanding voting shares or an investment company managed by VCM. The Fund does not invest in affiliated underlying funds for the purpose of exercising management or control. These underlying funds are noted as affiliated on the Fund's Schedule of Portfolio Investments. The affiliated underlying
77
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
fund's annual or semiannual reports may be viewed at usaa.com. Transactions in affiliated securities during the six months ended June 30, 2020 were as follows (amount in thousands):
Fair Value 12/31/19 | Purchases at Cost | Proceeds from Sales | Net Realized Gains (Losses) | Net Realized Gains Distributions from Affiliated Underlying Funds | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/20 | Dividend Income | ||||||||||||||||||||||||||||
Victory Capital Holdings, Inc. | $ | — | $ | 47 | $ | (2 | ) | $ | (1 | ) | $ | — | $ | (9 | ) | $ | 35 | $ | — |
78
USAA Mutual Funds Trust | Supplemental Information June 30, 2020 |
(Unaudited)
Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800) 539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at www.sec.gov.
Expense Examples
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020.
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||
$ | 1,000.00 | $ | 935.50 | $ | 1,022.97 | $ | 1.83 | $ | 1.91 | 0.38 | % |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
79
USAA Mutual Funds Trust | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The USAA Mutual Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the Investment Company Act of 1940, as amended. The LRMP is reasonably designed to assess and manage the Fund's liquidity risk, taking into consideration the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The USAA Mutual Funds' Board of Trustees approved the appointment of the Fund's investment adviser, Victory Capital Management Inc. ("Victory Capital"), as the administrator of the LRMP. At an in-person meeting held on February 26, 2020, Victory Capital provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
Victory Capital manages liquidity risks associated with the Fund's investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of the Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, Victory Capital has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by Victory Capital. Victory Capital reviews the preliminary liquidity classifications, and, when appropriate, considers other information including input from the Fund's portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from Victory Capital concluded that the Fund did not experience any significant liquidity challenges during the covered period, and the Fund's LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Victory Capital to oversee and manage liquidity risk and ensure the Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in the Fund. During the review period, the Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Fund has not adopted a Highly Liquid Investment Minimum. The Fund's investments were below the limitation on illiquid investments during the review period. Additionally, Victory Capital indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
80
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
P.O. Box 182593
Columbus, Ohio 43218-2593
Visit our website at: | Call | ||||||
vcm.com | (800) 235-8396 |
37757-0820
JUNE 30, 2020
Semi Annual Report
USAA Global Managed Volatility Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all funds held with the USAA Mutual Funds or your financial intermediary.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds. USAA Mutual Funds are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Financial Statements | |||||||
Schedule of Portfolio Investments | 4 | ||||||
Statement of Assets and Liabilities | 19 | ||||||
Statement of Operations | 20 | ||||||
Statements of Changes in Net Assets | 21 | ||||||
Financial Highlights | 22 | ||||||
Notes to Financial Statements | 24 | ||||||
Supplemental Information | 35 | ||||||
Proxy Voting and Portfolio Holdings Information | 35 | ||||||
Expense Example | 35 | ||||||
Liquidity Risk Management Program | 36 | ||||||
Privacy Policy (inside back cover) |
This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by Victory Capital Management Inc. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund.
IRA DISTRIBUTION WITHHOLDING DISCLOSURE
We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state's tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election, or change or revoke a prior withholding election, call (800) 235-8396.
If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution.
For more specific information, please consult your tax adviser.
1
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective seeks to attain long-term capital appreciation while attempting to reduce volatility during unfavorable market conditions.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
iShares Edge MSCI Min Vol EAFE ETF | 14.4 | % | |||||
iShares Edge MSCI USA Quality Factor ETF | 4.9 | % | |||||
iShares Edge MSCI Min Vol Emerging Markets ETF | 4.2 | % | |||||
iShares Core S&P 500 ETF | 3.5 | % | |||||
iShares Edge MSCI USA Momentum Factor ETF | 3.5 | % | |||||
Schwab Fundamental International Large Co. Index ETF | 2.9 | % | |||||
Schwab Fundamental U.S. Large Company Index ETF | 2.3 | % | |||||
Schwab Fundamental Emerging Markets Large Co. Index ETF | 2.2 | % | |||||
Invesco FTSE RAFI Developed Markets ex-US ETF | 2.0 | % | |||||
Schwab Fundamental International Small Co. Index ETF | 1.9 | % |
*Does not include purchased options, written options, futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
USAA Mutual Funds Trust USAA Global Managed Volatility Fund (continued) | June 30, 2020 |
(Unaudited)
Asset Allocation*:
June 30, 2020
(% of Net Assets)
*Does not include purchased options, written options, futures, and short-term investments purchased with cash collateral from securities loaned.
Percentages are of the net assets of the Fund and may not equal 100%.
3
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Common Stocks (50.4%) | |||||||||||
Australia (0.6%): | |||||||||||
Consumer Staples (0.3%): | |||||||||||
Coles Group Ltd. | 52,678 | $ | 626 | ||||||||
Wesfarmers Ltd. | 41,137 | 1,279 | |||||||||
Woolworths Group Ltd. | 34,520 | 889 | |||||||||
2,794 | |||||||||||
Financials (0.1%): | |||||||||||
Westpac Banking Corp. | 50,365 | 631 | |||||||||
Materials (0.2%): | |||||||||||
BHP Group Ltd. | 51,994 | 1,294 | |||||||||
Utilities (0.0%): (a) | |||||||||||
AGL Energy Ltd. | 28,379 | 336 | |||||||||
5,055 | |||||||||||
Austria (0.0%): (a) | |||||||||||
Energy (0.0%): (a) | |||||||||||
OMV AG (b) | 6,562 | 221 | |||||||||
Belgium (0.1%): | |||||||||||
Health Care (0.1%): | |||||||||||
UCB SA | 4,682 | 543 | |||||||||
Bermuda (0.4%): | |||||||||||
Financials (0.4%): | |||||||||||
Everest Re Group Ltd. | 13,264 | 2,735 | |||||||||
RenaissanceRe Holdings Ltd. | 5,107 | 873 | |||||||||
3,608 | |||||||||||
Brazil (0.2%): | |||||||||||
Financials (0.0%): (a) | |||||||||||
Banco do Brasil SA | 29,600 | 175 | |||||||||
Industrials (0.1%): | |||||||||||
WEG SA | 37,300 | 347 | |||||||||
Materials (0.1%): | |||||||||||
Vale SA | 99,700 | 1,026 | |||||||||
1,548 | |||||||||||
Canada (0.4%): | |||||||||||
Consumer Discretionary (0.1%): | |||||||||||
Magna International, Inc. | 12,907 | 575 | |||||||||
Restaurant Brands International, Inc. | 9,467 | 515 | |||||||||
1,090 |
See notes to financial statements.
4
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Financials (0.3%): | |||||||||||
Sun Life Financial, Inc. | 26,106 | $ | 960 | ||||||||
The Toronto-Dominion Bank | 36,636 | 1,635 | |||||||||
2,595 | |||||||||||
3,685 | |||||||||||
China (0.8%): | |||||||||||
Communication Services (0.1%): | |||||||||||
NetEase, Inc., ADR | 2,708 | 1,163 | |||||||||
Consumer Discretionary (0.2%): | |||||||||||
ANTA Sports Products Ltd. | 48,000 | 427 | |||||||||
Li Ning Co. Ltd. | 88,500 | 283 | |||||||||
New Oriental Education & Technology Group, Inc., ADR (b) | 6,334 | 825 | |||||||||
1,535 | |||||||||||
Energy (0.0%): (a) | |||||||||||
China Shenhua Energy Co. Ltd. Class H | 150,000 | 233 | |||||||||
Financials (0.4%): | |||||||||||
China Merchants Bank Co. Ltd. Class H | 171,000 | 793 | |||||||||
Industrial & Commercial Bank of China Ltd. Class H | 1,803,000 | 1,090 | |||||||||
PICC Property & Casualty Co. Ltd. Class H | 308,000 | 256 | |||||||||
Ping An Insurance Group Co. of China Ltd. | 121,500 | 1,211 | |||||||||
3,350 | |||||||||||
Industrials (0.0%): (a) | |||||||||||
Country Garden Services Holdings Co. Ltd. | 54,000 | 252 | |||||||||
Materials (0.1%): | |||||||||||
Anhui Conch Cement Co. Ltd. Class H | 54,000 | 366 | |||||||||
China National Building Material Co. Ltd. Class H | 170,000 | 182 | |||||||||
548 | |||||||||||
Utilities (0.0%): (a) | |||||||||||
China Resources Gas Group Ltd. | 38,000 | 186 | |||||||||
7,267 | |||||||||||
Denmark (0.2%): | |||||||||||
Consumer Staples (0.1%): | |||||||||||
Carlsberg A/S Class B | 4,766 | 632 | |||||||||
Health Care (0.1%): | |||||||||||
Novo Nordisk A/S Class B | 14,455 | 942 | |||||||||
Industrials (0.0%): (a) | |||||||||||
Vestas Wind Systems A/S | 5,381 | 551 | |||||||||
2,125 | |||||||||||
Finland (0.3%): | |||||||||||
Energy (0.1%): | |||||||||||
Neste Oyj | 18,291 | 718 | |||||||||
Industrials (0.1%): | |||||||||||
Kone Oyj Class B | 13,636 | 941 |
See notes to financial statements.
5
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Materials (0.1%): | |||||||||||
Stora Enso Oyj Class R | 25,920 | $ | 310 | ||||||||
UPM-Kymmene Oyj | 21,236 | 615 | |||||||||
925 | |||||||||||
2,584 | |||||||||||
France (0.8%): | |||||||||||
Communication Services (0.0%): (a) | |||||||||||
Publicis Groupe SA | 9,642 | 313 | |||||||||
Consumer Discretionary (0.2%): | |||||||||||
Cie Generale des Etablissements Michelin SCA (b) | 2,023 | 211 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 2,277 | 1,005 | |||||||||
Peugeot SA (b) | 24,391 | 400 | |||||||||
1,616 | |||||||||||
Energy (0.1%): | |||||||||||
TOTAL SA | 30,497 | 1,176 | |||||||||
Financials (0.1%): | |||||||||||
AXA SA (b) | 26,635 | 561 | |||||||||
Credit Agricole SA (b) | 32,457 | 308 | |||||||||
869 | |||||||||||
Health Care (0.1%): | |||||||||||
Sanofi | 8,071 | 823 | |||||||||
Industrials (0.1%): | |||||||||||
Cie de Saint-Gobain | 14,473 | 522 | |||||||||
Schneider Electric SE | 8,194 | 911 | |||||||||
1,433 | |||||||||||
Materials (0.1%): | |||||||||||
Air Liquide SA | 6,327 | 915 | |||||||||
Utilities (0.1%): | |||||||||||
Veolia Environnement SA | 24,011 | 542 | |||||||||
7,687 | |||||||||||
Germany (0.1%): | |||||||||||
Financials (0.1%): | |||||||||||
Deutsche Boerse AG | 3,338 | 604 | |||||||||
India (0.1%): | |||||||||||
Information Technology (0.1%): | |||||||||||
Infosys Ltd. | 68,814 | 669 | |||||||||
Indonesia (0.1%): | |||||||||||
Financials (0.1%): | |||||||||||
PT Bank Rakyat Indonesia (Persero) Tbk | 2,449,100 | 526 | |||||||||
Ireland (0.9%): | |||||||||||
Communication Services (0.0%): (a) | |||||||||||
WPP PLC | 55,990 | 436 |
See notes to financial statements.
6
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Industrials (0.3%): | |||||||||||
Allegion PLC | 5,738 | $ | 587 | ||||||||
Eaton Corp. PLC | 15,363 | 1,344 | |||||||||
Experian PLC | 18,865 | 662 | |||||||||
2,593 | |||||||||||
Information Technology (0.6%): | |||||||||||
Accenture PLC Class A | 22,519 | 4,835 | |||||||||
Seagate Technology PLC | 10,503 | 509 | |||||||||
5,344 | |||||||||||
8,373 | |||||||||||
Italy (0.2%): | |||||||||||
Energy (0.0%): (a) | |||||||||||
Snam SpA | 44,873 | 219 | |||||||||
Financials (0.1%): | |||||||||||
FinecoBank Banca Fineco SpA (b) | 26,283 | 356 | |||||||||
Intesa Sanpaolo SpA | 127,764 | 245 | |||||||||
601 | |||||||||||
Health Care (0.0%): (a) | |||||||||||
Recordati SpA | 4,364 | 218 | |||||||||
Utilities (0.1%): | |||||||||||
Enel SpA | 89,271 | 772 | |||||||||
1,810 | |||||||||||
Japan (1.6%): | |||||||||||
Communication Services (0.2%): | |||||||||||
KDDI Corp. | 25,400 | 758 | |||||||||
Nippon Telegraph & Telephone Corp. | 19,700 | 459 | |||||||||
NTT DOCOMO, Inc. | 21,100 | 560 | |||||||||
1,777 | |||||||||||
Consumer Discretionary (0.2%): | |||||||||||
Sekisui House Ltd. | 27,400 | 523 | |||||||||
Sony Corp. | 14,700 | 1,015 | |||||||||
Subaru Corp. | 12,400 | 260 | |||||||||
Suzuki Motor Corp. | 12,300 | 420 | |||||||||
2,218 | |||||||||||
Consumer Staples (0.1%): | |||||||||||
Asahi Group Holdings Ltd. | 10,500 | 369 | |||||||||
Seven & i Holdings Co. Ltd. | 6,000 | 196 | |||||||||
565 | |||||||||||
Financials (0.2%): | |||||||||||
MS&AD Insurance Group Holdings, Inc. | 18,300 | 504 | |||||||||
Nomura Holdings, Inc. | 138,100 | 620 | |||||||||
Tokio Marine Holdings, Inc. | 11,300 | 495 | |||||||||
1,619 |
See notes to financial statements.
7
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Health Care (0.3%): | |||||||||||
Astellas Pharma, Inc. | 53,200 | $ | 888 | ||||||||
Daiichi Sankyo Co. Ltd. | 13,100 | 1,072 | |||||||||
Shionogi & Co. Ltd. | 12,400 | 778 | |||||||||
2,738 | |||||||||||
Industrials (0.3%): | |||||||||||
ITOCHU Corp. | 32,600 | 706 | |||||||||
MonotaRO Co. Ltd. | 5,700 | 229 | |||||||||
Obayashi Corp. | 29,200 | 275 | |||||||||
Secom Co. Ltd. | 6,100 | 535 | |||||||||
Taisei Corp. | 8,900 | 324 | |||||||||
West Japan Railway Co. | 6,000 | 337 | |||||||||
2,406 | |||||||||||
Information Technology (0.2%): | |||||||||||
FUJIFILM Holdings Corp. | 12,700 | 544 | |||||||||
Hitachi Ltd. | 15,900 | 505 | |||||||||
Nomura Research Institute Ltd. | 8,800 | 240 | |||||||||
Otsuka Corp. | 4,800 | 254 | |||||||||
Tokyo Electron Ltd. | 2,500 | 617 | |||||||||
2,160 | |||||||||||
Materials (0.1%): | |||||||||||
Nitto Denko Corp. | 7,100 | 403 | |||||||||
Oji Holdings Corp. | 37,500 | 175 | |||||||||
Shin-Etsu Chemical Co. Ltd. | 4,600 | 540 | |||||||||
1,118 | |||||||||||
Utilities (0.0%): (a) | |||||||||||
The Kansai Electric Power Co., Inc. | 25,500 | 247 | |||||||||
14,848 | |||||||||||
Korea, Republic Of (0.4%): | |||||||||||
Communication Services (0.1%): | |||||||||||
NCSoft Corp. | 710 | 528 | |||||||||
Financials (0.0%): (a) | |||||||||||
Shinhan Financial Group Co. Ltd. | 18,766 | 454 | |||||||||
Information Technology (0.3%): | |||||||||||
Samsung Electronics Co. Ltd. | 39,291 | 1,739 | |||||||||
SK Hynix, Inc. | 15,673 | 1,119 | |||||||||
2,858 | |||||||||||
3,840 | |||||||||||
Mexico (0.2%): | |||||||||||
Communication Services (0.1%): | |||||||||||
America Movil SAB de CV Class L | 1,491,875 | 958 | |||||||||
Consumer Staples (0.1%): | |||||||||||
Wal-Mart de Mexico SAB de CV | 232,208 | 557 | |||||||||
1,515 |
See notes to financial statements.
8
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Netherlands (0.4%): | |||||||||||
Consumer Staples (0.1%): | |||||||||||
Koninklijke Ahold Delhaize NV | 30,345 | $ | 827 | ||||||||
Financials (0.0%): (a) | |||||||||||
EXOR NV | 4,786 | 275 | |||||||||
Industrials (0.1%): | |||||||||||
Wolters Kluwer NV | 10,413 | 814 | |||||||||
Information Technology (0.1%): | |||||||||||
NXP Semiconductors NV | 4,875 | 556 | |||||||||
Materials (0.1%): | |||||||||||
LyondellBasell Industries NV Class A | 11,848 | 778 | |||||||||
3,250 | |||||||||||
New Zealand (0.1%): | |||||||||||
Communication Services (0.0%): (a) | |||||||||||
Spark New Zealand Ltd. | 80,904 | 239 | |||||||||
Health Care (0.1%): | |||||||||||
Fisher & Paykel Healthcare Corp. Ltd. | 15,822 | 365 | |||||||||
604 | |||||||||||
Norway (0.0%): (a) | |||||||||||
Communication Services (0.0%): (a) | |||||||||||
Telenor ASA | 27,261 | 398 | |||||||||
Russian Federation (0.3%): | |||||||||||
Energy (0.2%): | |||||||||||
LUKOIL PJSC | 17,683 | 1,319 | |||||||||
Tatneft PJSC | 67,875 | 531 | |||||||||
1,850 | |||||||||||
Financials (0.0%): (a) | |||||||||||
Sberbank of Russia PJSC | 192,150 | 549 | |||||||||
Materials (0.1%): | |||||||||||
MMC Norilsk Nickel PJSC | 2,817 | 743 | |||||||||
3,142 | |||||||||||
Spain (0.1%): | |||||||||||
Communication Services (0.1%): | |||||||||||
Telefonica SA | 150,150 | 718 | |||||||||
Financials (0.0%): (a) | |||||||||||
Banco Bilbao Vizcaya Argentaria SA | 85,292 | 294 | |||||||||
Utilities (0.0%): (a) | |||||||||||
Endesa SA | 8,908 | 221 | |||||||||
1,233 | |||||||||||
Sweden (0.4%): | |||||||||||
Financials (0.1%): | |||||||||||
Svenska Handelsbanken AB Class A (b) | 52,750 | 501 |
See notes to financial statements.
9
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Industrials (0.3%): | |||||||||||
Atlas Copco AB Class A | 23,026 | $ | 981 | ||||||||
Sandvik AB (b) | 50,280 | 947 | |||||||||
Skanska AB Class B (b) | 15,149 | 309 | |||||||||
Volvo AB Class B | 31,355 | 494 | |||||||||
2,731 | |||||||||||
Materials (0.0%): (a) | |||||||||||
Boliden AB | 12,181 | 279 | |||||||||
3,511 | |||||||||||
Switzerland (0.8%): | |||||||||||
Communication Services (0.1%): | |||||||||||
Swisscom AG Registered Shares | 1,154 | 605 | |||||||||
Consumer Discretionary (0.1%): | |||||||||||
Garmin Ltd. | 9,491 | 925 | |||||||||
Consumer Staples (0.1%): | |||||||||||
Nestle SA Registered Shares | 11,798 | 1,309 | |||||||||
Financials (0.1%): | |||||||||||
Zurich Insurance Group AG | 2,650 | 939 | |||||||||
Health Care (0.3%): | |||||||||||
Novartis AG Registered Shares | 13,102 | 1,142 | |||||||||
Roche Holding AG | 3,354 | 1,162 | |||||||||
2,304 | |||||||||||
Information Technology (0.1%): | |||||||||||
TE Connectivity Ltd. | 16,033 | 1,308 | |||||||||
1,308 | |||||||||||
7,390 | |||||||||||
Taiwan (0.5%): | |||||||||||
Consumer Staples (0.1%): | |||||||||||
Uni-President Enterprises Corp. | 171,000 | 415 | |||||||||
Financials (0.1%): | |||||||||||
Mega Financial Holding Co. Ltd. | 477,000 | 501 | |||||||||
Yuanta Financial Holding Co. Ltd. | 433,000 | 258 | |||||||||
759 | |||||||||||
Information Technology (0.3%): | |||||||||||
MediaTek, Inc. | 67,000 | 1,325 | |||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 160,000 | 1,709 | |||||||||
3,034 | |||||||||||
4,208 | |||||||||||
United Kingdom (0.9%): | |||||||||||
Consumer Discretionary (0.1%): | |||||||||||
Aptiv PLC | 3,798 | 296 | |||||||||
Compass Group PLC | 21,144 | 291 | |||||||||
587 |
See notes to financial statements.
10
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Consumer Staples (0.2%): | |||||||||||
Diageo PLC | 21,050 | $ | 699 | ||||||||
Imperial Brands PLC | 30,956 | 589 | |||||||||
Unilever NV | 16,106 | 859 | |||||||||
2,147 | |||||||||||
Energy (0.1%): | |||||||||||
Royal Dutch Shell PLC Class A | 53,199 | 852 | |||||||||
Health Care (0.2%): | |||||||||||
AstraZeneca PLC | 8,791 | 915 | |||||||||
GlaxoSmithKline PLC (c) | 47,101 | 951 | |||||||||
1,866 | |||||||||||
Industrials (0.1%): | |||||||||||
RELX PLC | 29,418 | 681 | |||||||||
Materials (0.1%): | |||||||||||
Rio Tinto PLC | 19,075 | 1,073 | |||||||||
Utilities (0.1%): | |||||||||||
National Grid PLC | 30,128 | 368 | |||||||||
United Utilities Group PLC | 30,725 | 345 | |||||||||
713 | |||||||||||
7,919 | |||||||||||
United States (39.5%): | |||||||||||
Communication Services (4.8%): | |||||||||||
Activision Blizzard, Inc. | 16,552 | 1,256 | |||||||||
Alphabet, Inc. Class C (b) | 4,113 | 5,814 | |||||||||
AT&T, Inc. | 145,425 | 4,396 | |||||||||
Charter Communications, Inc. Class A (b) | 1,871 | 954 | |||||||||
Comcast Corp. Class A | 59,802 | 2,331 | |||||||||
Discovery, Inc. Class A (b) (d) | 28,703 | 606 | |||||||||
Electronic Arts, Inc. (b) | 27,445 | 3,624 | |||||||||
Facebook, Inc. Class A (b) | 9,250 | 2,101 | |||||||||
Fox Corp. Class A | 45,302 | 1,215 | |||||||||
Liberty Media Corp-Liberty SiriusXM Class C (b) | 48,256 | 1,663 | |||||||||
Omnicom Group, Inc. | 39,489 | 2,156 | |||||||||
Sirius XM Holdings, Inc. | 381,718 | 2,241 | |||||||||
Take-Two Interactive Software, Inc. (b) | 22,307 | 3,113 | |||||||||
The Interpublic Group of Co., Inc. | 38,540 | 661 | |||||||||
T-Mobile U.S., Inc. (b) | 20,124 | 2,096 | |||||||||
Verizon Communications, Inc. | 167,555 | 9,237 | |||||||||
43,464 | |||||||||||
Consumer Discretionary (5.1%): | |||||||||||
Amazon.com, Inc. (b) | 2,377 | 6,558 | |||||||||
AutoZone, Inc. (b) | 5,802 | 6,545 | |||||||||
Best Buy Co., Inc. | 18,507 | 1,615 | |||||||||
Booking Holdings, Inc. (b) | 664 | 1,057 | |||||||||
Darden Restaurants, Inc. | 12,059 | 914 | |||||||||
Dollar General Corp. | 24,325 | 4,634 |
See notes to financial statements.
11
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Domino's Pizza, Inc. | 14,991 | $ | 5,538 | ||||||||
eBay, Inc. | 47,779 | 2,506 | |||||||||
Ford Motor Co. | 113,520 | 690 | |||||||||
Hasbro, Inc. | 5,593 | 419 | |||||||||
Lowe's Cos., Inc. | 10,462 | 1,414 | |||||||||
Lululemon Athletica, Inc. (b) | 1,021 | 319 | |||||||||
McDonald's Corp. | 4,101 | 757 | |||||||||
Nike, Inc. Class B | 9,588 | 940 | |||||||||
Norwegian Cruise Line Holdings Ltd. (b) (d) | 11,799 | 194 | |||||||||
NVR, Inc. (b) | 643 | 2,095 | |||||||||
Ralph Lauren Corp. | 7,443 | 540 | |||||||||
Ross Stores, Inc. | 10,910 | 930 | |||||||||
Starbucks Corp. | 10,490 | 772 | |||||||||
Target Corp. (c) | 22,242 | 2,667 | |||||||||
The Home Depot, Inc. | 8,603 | 2,155 | |||||||||
The TJX Cos., Inc. | 27,067 | 1,369 | |||||||||
Tractor Supply Co. | 7,046 | 929 | |||||||||
45,557 | |||||||||||
Consumer Staples (4.3%): | |||||||||||
Altria Group, Inc. | 48,336 | 1,897 | |||||||||
Campbell Soup Co. | 13,663 | 678 | |||||||||
Church & Dwight Co., Inc. | 24,330 | 1,881 | |||||||||
General Mills, Inc. | 43,033 | 2,653 | |||||||||
Kellogg Co. | 14,884 | 983 | |||||||||
Kimberly-Clark Corp. | 18,149 | 2,565 | |||||||||
PepsiCo, Inc. | 12,158 | 1,608 | |||||||||
Philip Morris International, Inc. | 22,373 | 1,568 | |||||||||
The Clorox Co. | 15,136 | 3,320 | |||||||||
The Hershey Co. | 26,384 | 3,420 | |||||||||
The J.M. Smucker Co. | 18,931 | 2,003 | |||||||||
The Kroger Co. | 76,578 | 2,592 | |||||||||
The Procter & Gamble Co. | 65,823 | 7,871 | |||||||||
Walgreens Boots Alliance, Inc. | 19,187 | 813 | |||||||||
Walmart, Inc. | 42,527 | 5,094 | |||||||||
38,946 | |||||||||||
Energy (1.4%): | |||||||||||
Cabot Oil & Gas Corp. | 48,701 | 837 | |||||||||
Chevron Corp. | 42,172 | 3,763 | |||||||||
ConocoPhillips | 38,892 | 1,634 | |||||||||
Continental Resources, Inc. (d) | 19,556 | 343 | |||||||||
Devon Energy Corp. | 60,356 | 684 | |||||||||
EOG Resources, Inc. | 8,647 | 438 | |||||||||
Exxon Mobil Corp. | 28,482 | 1,274 | |||||||||
Kinder Morgan, Inc. | 45,769 | 694 | |||||||||
ONEOK, Inc. | 20,700 | 688 | |||||||||
Phillips 66 | 18,646 | 1,340 | |||||||||
Plains GP Holdings LP Class A (d) | 35,924 | 320 | |||||||||
Valero Energy Corp. | 11,444 | 673 | |||||||||
12,688 |
See notes to financial statements.
12
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Financials (3.2%): | |||||||||||
Aflac, Inc. | 88,102 | $ | 3,174 | ||||||||
Ally Financial, Inc. | 13,563 | 269 | |||||||||
Ameriprise Financial, Inc. | 5,628 | 844 | |||||||||
Bank of America Corp. | 64,881 | 1,541 | |||||||||
Fidelity National Financial, Inc. | 64,232 | 1,969 | |||||||||
Huntington Bancshares, Inc. | 56,837 | 514 | |||||||||
M&T Bank Corp. | 10,586 | 1,101 | |||||||||
MetLife, Inc. | 24,998 | 913 | |||||||||
Principal Financial Group, Inc. | 10,818 | 449 | |||||||||
Regions Financial Corp. | 42,850 | 477 | |||||||||
S&P Global, Inc. | 5,062 | 1,668 | |||||||||
SEI Investments Co. | 31,252 | 1,718 | |||||||||
Synchrony Financial | 25,374 | 562 | |||||||||
T. Rowe Price Group, Inc. | 10,295 | 1,271 | |||||||||
The Allstate Corp. | 37,986 | 3,684 | |||||||||
The Bank of New York Mellon Corp. | 31,476 | 1,217 | |||||||||
The PNC Financial Services Group, Inc. | 21,930 | 2,307 | |||||||||
The Progressive Corp. | 7,597 | 609 | |||||||||
The Travelers Cos., Inc. | 8,990 | 1,025 | |||||||||
U.S. Bancorp | 40,085 | 1,476 | |||||||||
Wells Fargo & Co. | 33,915 | 868 | |||||||||
Zions Bancorp NA | 24,101 | 820 | |||||||||
28,476 | |||||||||||
Health Care (5.6%): | |||||||||||
AbbVie, Inc. | 22,101 | 2,170 | |||||||||
AmerisourceBergen Corp. | 12,019 | 1,211 | |||||||||
Amgen, Inc. | 10,715 | 2,527 | |||||||||
Baxter International, Inc. | 7,827 | 674 | |||||||||
Biogen, Inc. (b) | 3,185 | 852 | |||||||||
Bristol-Myers Squibb Co. | 39,729 | 2,336 | |||||||||
Cardinal Health, Inc. | 11,366 | 593 | |||||||||
Cerner Corp. | 11,328 | 777 | |||||||||
CVS Health Corp. | 11,946 | 776 | |||||||||
Eli Lilly & Co. | 21,791 | 3,578 | |||||||||
Gilead Sciences, Inc. (c) | 32,938 | 2,534 | |||||||||
Henry Schein, Inc. (b) | 18,842 | 1,100 | |||||||||
Humana, Inc. | 1,653 | 641 | |||||||||
Jazz Pharmaceuticals PLC (b) | 8,233 | 908 | |||||||||
Johnson & Johnson (c) | 45,619 | 6,415 | |||||||||
Laboratory Corp. of America Holdings (b) | 3,496 | 581 | |||||||||
McKesson Corp. | 6,699 | 1,028 | |||||||||
Medtronic PLC | 26,297 | 2,411 | |||||||||
Merck & Co., Inc. | 86,677 | 6,703 | |||||||||
Pfizer, Inc. | 60,766 | 1,987 | |||||||||
Quest Diagnostics, Inc. | 14,054 | 1,602 | |||||||||
Regeneron Pharmaceuticals, Inc. (b) | 2,019 | 1,259 | |||||||||
Thermo Fisher Scientific, Inc. | 2,028 | 735 | |||||||||
UnitedHealth Group, Inc. | 12,190 | 3,595 |
See notes to financial statements.
13
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Universal Health Services, Inc. Class B | 13,065 | $ | 1,214 | ||||||||
Zoetis, Inc. | 12,482 | 1,711 | |||||||||
49,918 | |||||||||||
Industrials (2.0%): | |||||||||||
AO Smith Corp. | 53,023 | 2,498 | |||||||||
Carrier Global Corp. | 74,167 | 1,648 | |||||||||
Cummins, Inc. | 6,270 | 1,086 | |||||||||
Dover Corp. (d) | 6,453 | 623 | |||||||||
Expeditors International of Washington, Inc. | 6,355 | 483 | |||||||||
General Dynamics Corp. | 4,114 | 615 | |||||||||
HD Supply Holdings, Inc. (b) | 77,358 | 2,680 | |||||||||
Huntington Ingalls Industries, Inc. | 5,424 | 946 | |||||||||
Illinois Tool Works, Inc. | 2,822 | 493 | |||||||||
Ingersoll Rand, Inc. (b) (c) (d) | 6,887 | 194 | |||||||||
L3Harris Technologies, Inc. | 4,645 | 788 | |||||||||
Lockheed Martin Corp. | 4,386 | 1,601 | |||||||||
Masco Corp. | 12,620 | 634 | |||||||||
Northrop Grumman Corp. | 1,954 | 601 | |||||||||
Trane Technologies PLC | 7,805 | 695 | |||||||||
United Rentals, Inc. (b) | 3,338 | 498 | |||||||||
Waste Management, Inc. | 17,176 | 1,819 | |||||||||
XPO Logistics, Inc. (b) (d) | 4,091 | 316 | |||||||||
18,218 | |||||||||||
Information Technology (9.7%): | |||||||||||
Adobe, Inc. (b) | 2,603 | 1,133 | |||||||||
Akamai Technologies, Inc. (b) | 5,416 | 580 | |||||||||
Amphenol Corp. Class A | 16,676 | 1,598 | |||||||||
Apple, Inc. | 27,704 | 10,106 | |||||||||
Applied Materials, Inc. | 21,197 | 1,281 | |||||||||
Arrow Electronics, Inc. (b) | 9,183 | 631 | |||||||||
Automatic Data Processing, Inc. | 16,521 | 2,460 | |||||||||
Booz Allen Hamilton Holdings Corp. | 28,242 | 2,197 | |||||||||
Broadridge Financial Solutions, Inc. | 18,460 | 2,330 | |||||||||
Cadence Design Systems, Inc. (b) | 12,464 | 1,196 | |||||||||
CDW Corp. | 6,382 | 741 | |||||||||
Cisco Systems, Inc. | 79,635 | 3,714 | |||||||||
Citrix Systems, Inc. | 38,494 | 5,694 | |||||||||
Cognizant Technology Solutions Corp. Class A | 41,358 | 2,350 | |||||||||
Corning, Inc. | 18,466 | 478 | |||||||||
Dell Technologies, Inc. Class C (b) | 12,677 | 697 | |||||||||
F5 Networks, Inc. (b) | 5,527 | 771 | |||||||||
Intel Corp. | 51,155 | 3,061 | |||||||||
International Business Machines Corp. | 27,047 | 3,266 | |||||||||
Intuit, Inc. | 4,503 | 1,334 | |||||||||
Jack Henry & Associates, Inc. | 20,151 | 3,708 | |||||||||
Juniper Networks, Inc. | 63,029 | 1,441 | |||||||||
KLA Corp. | 3,552 | 691 | |||||||||
Lam Research Corp. | 3,880 | 1,255 | |||||||||
Maxim Integrated Products, Inc. | 9,810 | 595 |
See notes to financial statements.
14
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Micron Technology, Inc. (b) | 15,354 | $ | 791 | ||||||||
Microsoft Corp. (c) | 44,518 | 9,060 | |||||||||
NortonLifeLock, Inc. | 128,023 | 2,539 | |||||||||
NVIDIA Corp. | 4,493 | 1,707 | |||||||||
Oracle Corp. | 80,567 | 4,453 | |||||||||
Qorvo, Inc. (b) | 4,691 | 519 | |||||||||
QUALCOMM, Inc. | 18,967 | 1,730 | |||||||||
Teradyne, Inc. | 7,444 | 629 | |||||||||
Texas Instruments, Inc. | 19,281 | 2,448 | |||||||||
The Western Union Co. | 217,634 | 4,705 | |||||||||
VeriSign, Inc. (b) | 6,799 | 1,406 | |||||||||
Visa, Inc. Class A | 12,063 | 2,330 | |||||||||
VMware, Inc. Class A (b) (d) | 7,009 | 1,085 | |||||||||
Western Digital Corp. | 5,898 | 260 | |||||||||
86,970 | |||||||||||
Materials (0.9%): | |||||||||||
Air Products & Chemicals, Inc. | 17,655 | 4,263 | |||||||||
Celanese Corp. | 12,344 | 1,066 | |||||||||
Eastman Chemical Co. | 6,040 | 421 | |||||||||
International Paper Co. | 16,547 | 583 | |||||||||
Steel Dynamics, Inc. | 74,685 | 1,948 | |||||||||
8,281 | |||||||||||
Real Estate (0.9%): | |||||||||||
American Tower Corp. | 5,538 | 1,432 | |||||||||
Crown Castle International Corp. | 2,205 | 369 | |||||||||
Equinix, Inc. | 473 | 332 | |||||||||
Equity LifeStyle Properties, Inc. | 9,083 | 567 | |||||||||
Equity Residential | 13,289 | 782 | |||||||||
Extra Space Storage, Inc. | 7,970 | 736 | |||||||||
Healthpeak Properties, Inc. | 22,861 | 630 | |||||||||
Prologis, Inc. | 2,969 | 277 | |||||||||
Public Storage | 4,866 | 934 | |||||||||
SBA Communications Corp. | 988 | 294 | |||||||||
Simon Property Group, Inc. | 5,082 | 348 | |||||||||
Ventas, Inc. | 13,564 | 497 | |||||||||
VEREIT, Inc. | 60,099 | 386 | |||||||||
W.P. Carey, Inc. | 7,566 | 512 | |||||||||
Welltower, Inc. | 3,021 | 156 | |||||||||
8,252 | |||||||||||
Utilities (1.6%): | |||||||||||
American Electric Power Co., Inc. (c) | 16,010 | 1,275 | |||||||||
CMS Energy Corp. | 51,794 | 3,026 | |||||||||
Consolidated Edison, Inc. (c) | 8,008 | 576 | |||||||||
DTE Energy Co. | 24,621 | 2,647 | |||||||||
Duke Energy Corp. (c) | 1,811 | 145 | |||||||||
Exelon Corp. | 36,711 | 1,332 | |||||||||
Pinnacle West Capital Corp. | 27,063 | 1,983 | |||||||||
The Southern Co. (c) | 13,549 | 703 |
See notes to financial statements.
15
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
WEC Energy Group, Inc. (c) | 8,924 | $ | 782 | ||||||||
Xcel Energy, Inc. (c) | 23,294 | 1,456 | |||||||||
13,925 | |||||||||||
354,695 | |||||||||||
Total Common Stocks (Cost $444,323) | 452,858 | ||||||||||
Preferred Stocks (0.3%) | |||||||||||
Brazil (0.2%): | |||||||||||
Financials (0.2%): | |||||||||||
Banco Bradesco SA | 196,770 | 749 | |||||||||
Itau Unibanco Holding SA | 215,000 | 1,007 | |||||||||
1,756 | |||||||||||
Germany (0.1%): | |||||||||||
Consumer Discretionary (0.1%): | |||||||||||
Volkswagen AG (b) | 6,726 | 1,022 | |||||||||
Total Preferred Stocks (Cost $3,402) | 2,778 | ||||||||||
Rights (0.0%) (a) | |||||||||||
Spain (0.0%): (a) | |||||||||||
Communication Services (0.0%): (a) | |||||||||||
Telefonica SA Expires 7/16/20 (b) | 149,774 | 30 | |||||||||
United States (0.0%): (a) | |||||||||||
Communication Services (0.0%): (a) | |||||||||||
T-Mobile U.S., Inc. Expires 7/28/20 (b) | 20,100 | 3 | |||||||||
Total Rights (Cost $32) | 33 | ||||||||||
Exchange-Traded Funds (47.6%) | |||||||||||
United States (47.6%): | |||||||||||
Goldman Sachs ActiveBeta Emerging Markets Equity ETF | 53,613 | 1,624 | |||||||||
Invesco FTSE RAFI Developed Markets ex-US ETF | 516,273 | 17,868 | |||||||||
Invesco FTSE RAFI Emerging Markets ETF | 639,231 | 11,052 | |||||||||
Invesco FTSE RAFI US 1000 ETF (d) | 58,332 | 6,318 | |||||||||
iShares Core MSCI EAFE ETF | 7,796 | 446 | |||||||||
iShares Core S&P 500 ETF | 101,663 | 31,484 | |||||||||
iShares Edge MSCI International Quality Factor ETF (d) | 15,555 | 457 | |||||||||
iShares Edge MSCI Min Vol EAFE ETF | 1,963,224 | 129,691 | |||||||||
iShares Edge MSCI Min Vol Emerging Markets ETF (d) | 725,326 | 37,717 | |||||||||
iShares Edge MSCI USA Momentum Factor ETF (d) | 238,086 | 31,189 | |||||||||
iShares Edge MSCI USA Quality Factor ETF | 461,910 | 44,306 | |||||||||
iShares Edge MSCI USA Value Factor ETF (d) | 108,917 | 7,872 | |||||||||
JPMorgan Diversified Return Emerging Markets Equity ETF | 60,700 | 2,790 | |||||||||
JPMorgan US Quality Factor ETF | 203,794 | 6,201 | |||||||||
KraneShares Bosera MSCI China A ETF | 177,000 | 6,006 | |||||||||
Schwab Fundamental Emerging Markets Large Co. Index ETF (d) | 853,728 | 19,986 | |||||||||
Schwab Fundamental International Large Co. Index ETF | 1,091,464 | 25,911 | |||||||||
Schwab Fundamental International Small Co. Index ETF (d) | 605,362 | 16,672 |
See notes to financial statements.
16
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Schwab Fundamental U.S. Large Company Index ETF | 567,499 | $ | 20,907 | ||||||||
Vanguard FTSE Developed Markets ETF | 224,427 | 8,706 | |||||||||
427,203 | |||||||||||
Total Exchange-Traded Funds (Cost $414,146) | 427,203 | ||||||||||
Affiliated Exchange-Traded Funds (1.2%) | |||||||||||
United States (1.2%): | |||||||||||
VictoryShares International Volatility Wtd ETF, 2.16% | 137,362 | 4,767 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF, 0.32% (c) | 54,300 | 2,061 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF, 1.66% | 98,503 | 3,793 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $12,686) | 10,621 | ||||||||||
Purchased Options (0.0%) (a) | |||||||||||
Total Purchased Options (Cost $239) | 137 | ||||||||||
Collateral for Securities Loaned^ (2.4%) | |||||||||||
United States (2.4%): | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (e) | 21,828,965 | 21,829 | |||||||||
Total Collateral for Securities Loaned (Cost $21,829) | 21,829 | ||||||||||
Total Investments (Cost $896,657) — 101.9% | 915,459 | ||||||||||
Liabilities in excess of other assets — (1.9)% | (17,367 | ) | |||||||||
NET ASSETS — 100.00% | $ | 898,092 |
At June 30, 2020 the Fund's investments in foreign securities were 22.1% of net assets.
^ Purchased with cash collateral from securities on loan.
(a) Amount represents less than 0.05% of net assets.
(b) Non-income producing security.
(c) All or a portion of this security has been designated as collateral for derivative instruments.
(d) All or a portion of this security is on loan.
(e) Rate disclosed is the daily yield on June 30, 2020.
ADR — American Depositary Receipt
ETF — Exchange-Traded Fund
LP — Limited Partnership
PLC — Public Limited Company
See notes to financial statements.
17
USAA Mutual Funds Trust USAA Global Managed Volatility Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Unaudited)
Purchased Options
Exchange-traded options
(Amounts not in thousands)
Put/ Call | Strike Price | Contracts | Expiration Date | Value | |||||||||||||||||||
S&P 500 Index Option | Put | 2,550 | USD | 40 | 9/18/20 | $ | 137,000 | ||||||||||||||||
Total (Cost $239,200) |
See notes to financial statements.
18
USAA Mutual Funds Trust | Statement of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA Global Managed Volatility Fund | |||||||
Assets: | |||||||
Affiliated investments, at value (Cost $12,686) | $ | 10,621 | |||||
Unaffiliated investments, at value (Cost $883,971) | 904,838 | (a) | |||||
Foreign currency, at value (Cost $102) | 102 | ||||||
Cash and cash equivalents | 4,332 | ||||||
Deposits with brokers for futures contracts | 26 | ||||||
Receivables: | |||||||
Interest and dividends | 647 | ||||||
Capital shares issued | 1 | ||||||
Reclaims | 55 | ||||||
From Adviser | 206 | ||||||
Prepaid expenses | 26 | ||||||
Total Assets | 920,854 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 21,829 | ||||||
Investments purchased | 300 | ||||||
Capital shares redeemed | 7 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 445 | ||||||
Administration fees | 38 | ||||||
Transfer agent fees | 40 | ||||||
Compliance fees | 1 | ||||||
Trustees' fees | 10 | ||||||
Other accrued expenses | 92 | ||||||
Total Liabilities | 22,762 | ||||||
Net Assets: | |||||||
Capital | 869,758 | ||||||
Total distributable earnings/(loss) | 28,334 | ||||||
Net Assets | $ | 898,092 | |||||
Net Assets | |||||||
Fund Shares | $ | 9,664 | |||||
Institutional Shares | 888,428 | ||||||
Total | $ | 898,092 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 978 | ||||||
Institutional Shares | 88,641 | ||||||
Total | 89,619 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Fund Shares | $ | 9.89 | |||||
Institutional Shares | $ | 10.02 |
(a) Includes $21,384 of securities on loan.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
19
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA Global Managed Volatility Fund | |||||||
Investment Income: | |||||||
Interest | $ | 18 | |||||
Income distributions from affiliated funds | 76 | ||||||
Unaffiliated dividend | 10,823 | ||||||
Securities lending (net of fees) | 70 | ||||||
Foreign tax withholding | (215 | ) | |||||
Total Income | 10,772 | ||||||
Expenses: | |||||||
Investment advisory fees | 2,706 | ||||||
Administration fees — Fund Shares | 8 | ||||||
Administration fees — Institutional Shares | 223 | ||||||
Sub-Administration fees | 35 | ||||||
Custodian fees | 48 | ||||||
Transfer agent fees — Fund Shares | 7 | ||||||
Transfer agent fees — Institutional Shares | 223 | ||||||
Trustees' fees | 23 | ||||||
Compliance fees | 3 | ||||||
Legal and audit fees | 48 | ||||||
State registration and filing fees | 21 | ||||||
Other expenses | 22 | ||||||
Total Expenses | 3,367 | ||||||
Expenses waived/reimbursed by Adviser | (203 | ) | |||||
Net Expenses | 3,164 | ||||||
Net Investment Income (Loss) | 7,608 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from unaffiliated investment securities and foreign currency translations | (3,632 | ) | |||||
Net realized gains (losses) on written options | 4,833 | ||||||
Net change in unrealized appreciation/depreciation on unaffiliated investment securities | (104,650 | ) | |||||
Net change in unrealized appreciation/depreciation on affiliated funds | (1,824 | ) | |||||
Net change in unrealized appreciation/depreciation on written options | (102 | ) | |||||
Net realized/unrealized gains (losses) on investments | (105,375 | ) | |||||
Change in net assets resulting from operations | $ | (97,767 | ) |
See notes to financial statements.
20
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Global Managed Volatility Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 7,608 | $ | 20,040 | |||||||
Net realized gains (losses) from investments | 1,201 | 22,591 | |||||||||
Net change in unrealized appreciation/depreciation on investments | (106,576 | ) | 154,580 | ||||||||
Change in net assets resulting from operations | (97,767 | ) | 197,211 | ||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | — | (479 | ) | ||||||||
Institutional Shares | — | (40,997 | ) | ||||||||
Change in net assets resulting from distributions to shareholders | — | (41,476 | ) | ||||||||
Change in net assets resulting from capital transactions | (21,332 | ) | (70,983 | ) | |||||||
Change in net assets | (119,099 | ) | 84,752 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 1,017,191 | 932,439 | |||||||||
End of period | $ | 898,092 | $ | 1,017,191 | |||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 1,151 | $ | 2,369 | |||||||
Distributions reinvested | — | 478 | |||||||||
Cost of shares redeemed | (2,189 | ) | (2,838 | ) | |||||||
Total Fund Shares | $ | (1,038 | ) | $ | 9 | ||||||
Institutional Shares | |||||||||||
Proceeds from shares issued | $ | 7,424 | $ | 4,308 | |||||||
Distributions reinvested | — | 40,997 | |||||||||
Cost of shares redeemed | (27,718 | ) | (116,297 | ) | |||||||
Total Institutional Shares | $ | (20,294 | ) | $ | (70,992 | ) | |||||
Change in net assets resulting from capital transactions | $ | (21,332 | ) | $ | (70,983 | ) | |||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 119 | 224 | |||||||||
Reinvested | — | 43 | |||||||||
Redeemed | (228 | ) | (269 | ) | |||||||
Total Fund Shares | (109 | ) | (2 | ) | |||||||
Institutional Shares | |||||||||||
Issued | 843 | 425 | |||||||||
Reinvested | — | 3,672 | |||||||||
Redeemed | (2,712 | ) | (10,721 | ) | |||||||
Total Institutional Shares | (1,869 | ) | (6,624 | ) | |||||||
Change in Shares | (1,978 | ) | (6,626 | ) |
See notes to financial statements.
21
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
USAA Global Managed Vol Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 10.97 | 0.07 | (e) | (1.15 | ) | (1.08 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 9.39 | 0.19 | (e) | 1.85 | 2.04 | (0.22 | ) | (0.24 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 10.73 | 0.25 | (1.18 | ) | (0.93 | ) | (0.15 | ) | (0.26 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 9.03 | 0.13 | (e) | 1.76 | 1.89 | (0.14 | ) | (0.05 | ) | |||||||||||||||||
Year Ended December 31, 2016 | $ | 8.59 | 0.13 | (e) | 0.42 | 0.55 | (0.11 | ) | — | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 8.97 | 0.10 | (e) | (0.40 | ) | (0.30 | ) | (0.08 | ) | — | ||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 11.11 | 0.08 | (e) | (1.17 | ) | (1.09 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 9.49 | 0.21 | (e) | 1.88 | 2.09 | (0.23 | ) | (0.24 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 10.84 | 0.16 | (1.08 | ) | (0.92 | ) | (0.17 | ) | (0.26 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 9.12 | 0.18 | (e) | 1.76 | 1.94 | (0.17 | ) | (0.05 | ) | |||||||||||||||||
Year Ended December 31, 2016 | $ | 8.69 | 0.16 | (e) | 0.40 | 0.56 | (0.13 | ) | — | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 9.08 | 0.14 | (e) | (0.44 | ) | (0.30 | ) | (0.09 | ) | — |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 5 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) The expense ratios exclude the impact of expenses paid by each underlying fund.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(e) Per share net investment income (loss) has been calculated using the average daily shares method.
See notes to financial statements.
22
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b)(c) | Net Investment Income (Loss)(b) | Gross Expenses(b)(c) | Net Assets, End of Period (000's) | Portfolio Turnover(a)(d) | ||||||||||||||||||||||||||||
USAA Global Managed Vol Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 9.89 | (9.85 | )% | 0.90 | % | 1.45 | % | 1.15 | % | $ | 9,664 | 25 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (0.46 | ) | $ | 10.97 | 21.69 | % | 0.90 | % | 1.81 | % | 1.09 | % | $ | 11,921 | 53 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.41 | ) | $ | 9.39 | (8.78 | )% | 0.90 | % | 1.57 | % | 1.18 | % | $ | 10,229 | 35 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.19 | ) | $ | 10.73 | 20.95 | % | 0.90 | % | 1.30 | % | 1.09 | % | $ | 11,284 | 48 | %(f) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.11 | ) | $ | 9.03 | 6.39 | % | 0.89 | % | 1.48 | % | 1.13 | % | $ | 13,964 | 9 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.08 | ) | $ | 8.59 | (3.28 | )% | 0.90 | %(g) | 1.14 | % | 1.15 | % | $ | 15,911 | 16 | % | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 10.02 | (9.81 | )% | 0.70 | % | 1.69 | % | 0.74 | % | $ | 888,428 | 25 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (0.47 | ) | $ | 11.11 | 21.97 | % | 0.70 | % | 1.97 | % | 0.75 | % | $ | 1,005,270 | 53 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.43 | ) | $ | 9.49 | (8.61 | )% | 0.70 | % | 1.87 | % | 0.74 | % | $ | 922,210 | 35 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.22 | ) | $ | 10.84 | 21.24 | % | 0.72 | %(h) | 1.79 | % | 0.76 | % | $ | 824,189 | 48 | %(f) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.13 | ) | $ | 9.12 | 6.46 | % | 0.78 | % | 1.85 | % | 0.81 | % | $ | 295,644 | 9 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.09 | ) | $ | 8.69 | (3.27 | )% | 0.80 | % | 1.61 | % | 0.88 | % | $ | 189,078 | 16 | % |
(f) Reflects increase trading activity due to large shareholder inflows.
(g) Prior to May 1, 2015, USAA Asset Management Company, the former investment adviser to the Fund ("AMCO"), voluntarily agreed to limit the annual expenses of the Fund Shares to 0.90% of the Fund Shares' average daily net assets.
(h) Prior to May 1, 2017, AMCO voluntarily agreed to limit the annual expenses of the Institutional Shares to 0.70% of the Institutional Shares' average daily net assets.
See notes to financial statements.
23
USAA Mutual Funds Trust | Notes to Financial Statements June 30, 2020 |
1. Organization:
USAA Mutual Funds Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 47 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value.
The accompanying financial statements are those of USAA Global Managed Volatility Fund (the "Fund"). The Fund offers two classes of shares: Fund Shares and Institutional Shares. The Fund is classified as diversified under the 1940 Act.
Each class of shares of the Fund has substantially identical rights and privileges except with respect to fees paid under distribution plans, expenses allocable exclusively to each class of shares, voting rights on matters solely affecting a single class of shares, and the exchange privilege of each class of shares.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.
Investment Valuation:
The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
The Adviser has established the Pricing and Liquidity Committee (the "Committee"), and subject to Trust's Board of Trustees (the "Board") oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or
24
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Investments in open-end investment companies are valued at net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.
Options are valued by a pricing service at the National Best Bid/Offer (NBBO) composite price, which is derived from the best available bid and ask price in all participating options exchanges determined to most closely reflect market value of the options at the time of computation of the Fund's NAV. These valuations typically are categorized as Level 1 in the fair value hierarchy.
Debt securities of United States ("U.S.") issuers, along with corporate and municipal securities, including short-term investments maturing in 60 days or less, may be valued using evaluated bid or the last sales price to price securities by dealers or an independent pricing service approved by the Board. These valuations are typically categorized as Level 2 in the fair value hierarchy.
In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.
In accordance with procedures adopted by the Board, fair value pricing may be used if events materially affecting the value of foreign securities occur between the time the exchange on which they are traded closes and the time the Fund's NAV is calculated. The Fund uses a systematic valuation model, provided daily by an independent third party to fair value its international equity securities. These valuations are considered as Level 2 in the fair value hierarchy.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stock | $ | 378,176 | $ | 74,682 | $ | — | $ | 452,858 | |||||||||||
Preferred Stocks | 1,756 | 1,022 | — | 2,778 | |||||||||||||||
Rights | 33 | — | — | 33 | |||||||||||||||
Exchange-Traded Funds | 427,203 | — | — | 427,203 | |||||||||||||||
Affiliated Exchange-Traded Funds | 10,621 | — | — | 10,621 | |||||||||||||||
Purchased Options | 137 | — | — | 137 | |||||||||||||||
Collateral for Securities Loaned | 21,829 | — | — | 21,829 | |||||||||||||||
Total | $ | 839,755 | $ | 75,704 | $ | — | $ | 915,459 |
For the six months ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
Real Estate Investment Trusts ("REITs"):
The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income producing real estate or real
25
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.
Investment Companies:
Exchange-Traded Funds:
The Fund may invest in ETFs, the shares of which are bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. The Fund may purchase shares of an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity of an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.
Open-End Funds:
The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
Securities Purchased on a Delayed-Delivery or When-Issued Basis:
The Fund may purchase securities on a delayed-delivery or when-issued basis. Delivery and payment for securities that have been purchased by the Fund on a delayed-delivery or when-issued basis or for delayed draws on loans can take place a month or more after the trade date. At the time the Fund makes the commitment to purchase a security on a delayed-delivery or when-issued basis, the Fund records the transaction and reflects the value of the security in determining NAV. No interest accrues to the Fund until the transaction settles and payment takes place. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for delayed-delivery or when-issued securities. If the Fund owns delayed-delivery or when-issued securities, these values are included in Payable for investments purchased on the accompanying Statement of Assets and Liabilities and the segregated assets are identified in the Schedule of Portfolio Investments.
Foreign Exchange Currency Contracts:
The Fund may enter into foreign exchange currency contracts to convert U.S. dollars to and from various foreign currencies. A foreign exchange currency contract is an obligation by the Fund to purchase or sell a specific currency at a future date at a price (in U.S. dollars) set at the time of the contract. The Fund does not engage in "cross-currency" foreign exchange contracts (i.e., contracts to purchase or sell one foreign currency in exchange for another foreign currency). The Fund's foreign exchange currency contracts might be considered spot contracts (typically a contract of one week or less) or forward contracts (typically a contract term over one week). A spot contract is entered into for purposes of hedging against foreign currency fluctuations relating to a specific portfolio transaction, such as the delay between a security transaction trade date and settlement date. Forward contracts are entered into for purposes of hedging portfolio holdings or concentrations of such holdings. Each foreign exchange currency contract is adjusted daily by the prevailing spot or forward rate of the underlying currency, and any appreciation or depreciation is recorded for financial statement purposes as unrealized until the contract settlement date, at which time the Fund records realized gains or losses equal to the difference between the value of a contract at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a foreign exchange currency contract or if the value of the foreign currency changes unfavorably. In addition, the use of foreign exchange currency contracts does not eliminate fluctuations
26
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
in the underlying prices of the securities. As of June 30, 2020, the Fund had no open forward foreign exchange currency contracts.
Derivative Instruments:
The Fund may buy, sell, and enter into certain types of derivatives, including, but not limited to, futures contracts, options, and options on futures contracts, under circumstances in which such instruments are expected by the portfolio manager to aid in achieving the Fund's investment objective. The Fund also may use derivatives in circumstances where the portfolio manager believes they offer an economical means of gaining exposure to a particular asset class or securities market or to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the market. With exchange-listed futures contracts and options, counterparty credit risk to the Fund is limited to the exchange's clearinghouse which, as counterparty to all exchange-traded futures contracts and options, guarantees the transactions against default from the actual counterparty to the transaction. The Fund's derivative agreements held at June 30, 2020, did not include master netting provisions.
Futures Contracts:
The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is reflected on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.
The Fund held no futures contracts during the period ended June 30, 2020.
Options:
The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may use options on underlying instruments, namely, equity securities, ETFs, and equity indexes, to gain exposure to, or hedge against, changes in the value of equity securities, ETFs, or equity indexes. A call option gives the purchaser the right to buy, and the writer the obligation to sell, the underlying instrument at a specified price during a specified period. Conversely, a put option gives the purchaser the right to sell, and the writer the obligation to buy, the underlying instrument at a specified price during a specified period. The purchaser of the option pays a premium to the writer of the option.
Premiums paid for purchased options are included on the Fund's Statement of Assets and Liabilities as an investment. If a purchased option expires unexercised, the premium paid is recognized as a realized loss. If a purchased call option on a security is exercised, the cost of the security acquired includes the
27
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
exercise price and the premium paid. If a purchased put option on a security is exercised, the realized gain or loss on the security sold is determined from the exercise price, the original cost of the security, and the premium paid. The risk associated with purchasing a call or put option is limited to the premium paid.
Premiums received from writing options are included on the Fund's Statement of Assets and Liabilities as a liability. If a written option expires unexercised, the premium received is recognized as a realized gain. If a written call option on a security is exercised, the realized gain or loss on the security sold is determined from the exercise price, the original cost of the security, and the premium received. If a written put option on a security is exercised, the cost of the security acquired is the exercise price paid less the premium received. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.
In an attempt to reduce the Fund's volatility over time, the Fund may implement a strategy that involves purchasing and selling options on indexes or ETFs that represent the Fund's exposure against a highly correlated stock portfolio. The combination of the diversified stock portfolio with index or ETF options is designed to provide the Fund with consistent returns over a wide range of equity market environments. This strategy may not fully protect the Fund against declines in the portfolio's value, and the Fund could experience a loss. Options on ETFs are similar to options on individual securities in that the holder of the ETF call (or put) has the right to receive (or sell) shares of the underlying ETF at the strike price on or before exercise date. Options on securities indexes are different from options on individual securities in that the holder of the index option has the right to receive an amount of cash equal to the difference between the exercise price and the settlement value of the underlying index as defined by the exchange. If an index option is exercised, the realized gain or loss is determined by the exercise price, the settlement value, and the premium amount paid or received.
Summary of Derivative Instruments:
The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2020 (amounts in thousands):
Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations | Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations | ||||||||||
Net Realized Gains (Losses) from Written Options | Net Change in Unrealized Appreciation/Depreciation on Written Options | ||||||||||
Equity Risk Exposure: | $ | 4,833 | $ | (102 | ) |
All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The underlying face value of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.
The Fund did not hold futures contracts during the six months ended June 30, 2020.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
28
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
Securities Lending:
The Fund, through a securities lending agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income, net of income retained by Citibank. Borrowers are required to secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are cured the next business day once the shortfall exceeds $100 thousand. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments, primarily open-end investment companies. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Fund's agreement with Citibank does not include master netting provisions. Non- cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed on the Fund's Schedule of Portfolio Investments and Financial Statements while non-cash collateral is not included. The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of June 30, 2020:
Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
$ | 21,384 | $ | — | $ | 21,829 |
Foreign Currency Translations:
The accounting records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities of the Fund denominated in a foreign currency are translated into U.S. dollars at current exchange rates. Purchases and sales of securities, income receipts, and expense payments are translated into U.S. dollars at the exchange rates on the date of the transactions. The Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are disclosed as net change in unrealized appreciation/depreciation on investments and foreign currency translations on the Statement of Operations. Any realized gains or losses from these fluctuations, including foreign currency arising from in-kind redemptions, are disclosed as net realized gains or losses from investment transactions and foreign currency translations on the Statement of Operations.
Foreign Taxes:
The Fund may be subject to foreign taxes related to foreign income received (a portion of which may be reclaimable), capital gains on the sale of securities, and certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which the Fund invests.
Federal Income Taxes:
It is the Fund's policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to
29
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.
Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which include the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
Allocations:
Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
Income, expenses (other than class-specific expenses such as transfer agent fees, state registration fees, and printing fees), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets on the date income is earned or expenses and realized and unrealized gains and losses are incurred.
3. Purchases and Sales:
Cost of purchases and proceeds from sales/maturities of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2020, were as follows for the Fund (amounts in thousands):
Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 229,556 | $ | 235,027 |
There were no purchases and sales of U.S. government securities during the six months ended June 30, 2020.
4. Affiliated Fund Ownership:
The Fund offers its shares for investment by other USAA Mutual Funds. The fund-of-funds do not invest in the underlying funds for the purpose of exercising management or control, and the affiliated fund- of-funds' annual and semiannual reports may be viewed at usaa.com. As of June 30, 2020, certain fund-of funds owned total outstanding shares of the Fund:
Affiliated USAA Fund | Ownership % | ||||||
Target Income Fund | 3.4 | ||||||
Target 2020 Fund | 5.6 | ||||||
Target 2030 Fund | 26.3 | ||||||
Target 2040 Fund | 37.1 | ||||||
Target 2050 Fund | 23.2 | ||||||
Target 2060 Fund | 3.2 |
5. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC. Under the terms of the Investment Advisory Agreement, the Adviser is entitled
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USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
to receive fees accrued daily and paid monthly at an annual rate of 0.60% of the Fund's average daily net assets. The amounts incurred and paid to VCM during the six months ended June 30, 2020, are reflected on the Statement of Operations as Investment Advisory fees.
In addition, the Fund invests in affiliated USAA exchange-traded fund(s) ("affiliated ETFs"). The Fund's Adviser fee is reimbursed by VCM to the extent of the indirect Adviser fee incurred through the Fund's proportional investment in the affiliated ETF(s). For the period from January 1, 2020 through June 30, 2020, the Fund's Adviser fee was reimbursed by VCM in an amount of $17 thousand, of which $3 thousand is receivable from VCM.
The Trust relies on an exemptive order granted to VCM and its affiliated funds by the SEC in March 2019 permitting the use of a "manager-of-managers" structure for certain funds. Prior to that date, the Trust relied on a similar exemptive order granted by the SEC to the Trust and its affiliated persons. Under a manager-of-managers structure, the investment adviser may select (with approval of the Board and without shareholder approval) one or more subadvisers to manage the day-to-day investment of a fund's assets. For the six months ended June 30, 2020, the Fund had no subadvisers.
Administration and Servicing Fees:
VCM serves as the Fund's administrator and fund accountant. Under the Fund Administration, Servicing and Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.15% of average daily net assets for the Fund Shares and 0.05% of average daily net assets of the Institutional Shares. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Administration fees.
The Fund (as part of the Trust) has entered into an agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. Funds in the Trust, Victory Variable Insurance Funds, Victory Portfolios, and Victory Portfolios II (collectively, the "Victory Funds Complex") in the aggregate, compensate the Adviser for these services. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Compliance fees.
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub- Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for reasonable out-of -pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund under the Fund Administration, Servicing, and Accounting Agreement. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Sub-Administration fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), provides transfer agency services to the Fund. VCTA, an affiliate of the Adviser, provides transfer agent services to the Fund based on an annual charge of $23 per shareholder account plus out-of-pocket expenses. VCTA pays a portion of these fees to certain intermediaries for the administration and servicing of accounts that are held with such intermediaries. Transfer agent's fees for Institutional Shares are paid monthly based on a fee accrued daily at an annualized rate of 0.05% of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA during the six months ended June 30, 2020, are reflected on the Statement of Operations as Transfer Agent fees.
FIS Investor Services LLC serves as sub-transfer agent and dividend disbursing agent for the Fund pursuant to a Sub-Transfer Agent agreement between VCTA and FIS Investor Services LLC. VCTA provides FIS Investor Services LLC a fee for providing these services.
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USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
Distributor/Underwriting Services:
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Adviser, Inc.
Other Fees:
Citibank serves as the Fund's custodian.
K&L Gates LLP provides legal services to the Trust.
The Adviser has entered into an expense limitation agreement with the Fund until at least June 30, 2021. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by certain classes of the Fund in any fiscal year exceed the expense limit for such classes of the Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures, which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limits (excluding voluntary waivers) are 0.90% and 0.70% for Fund Shares and Institutional Shares, respectively.
Under this expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. As of June 30, 2020, the following amounts are available to be repaid to the Adviser (amounts in thousands).
Expires 12/31/22 | Expires 12/31/23 | Total | |||||||||
$ | 249 | $ | 203 | $ | 452 |
The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2020.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, Administrator, Sub-Administrator, Sub-Fund Accountant, and Legal.
6. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region. Geopolitical and other risks, including war, terrorism, trade disputes, political or economic dysfunction within some nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as the coronavirus (or COVID-19), may result in, among other things, closing borders, disruptions to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer activity, as well as general concern and uncertainty. The impact may be short-term or may last for extended periods.
The COVID-19 pandemic, which has spread rapidly across the world, has led and will continue to lead for an unknown period of time to disruptions in local, regional, national and global markets and economies. Among other things, the outbreak has resulted in, and until fully resolved is likely to continue
32
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
to result in, among other things (1) government imposition of various forms of "stay-at-home" orders and the closing of "non-essential" businesses, resulting in significant disruption to the businesses of many issuers as well as lay-offs of employees; (2) increased requests by issuers of debt instruments for amendments and waivers of agreements to avoid default and increased defaults; (3) volatility and disruption of markets, including greater volatility in pricing and spreads; and (4) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general.
The Fund focuses on stocks and ETFs that emphasize certain investment factors such as momentum, value, and quality, or that could lower volatility in the Fund's returns. The Fund uses quantitative analysis to allocate exposure to individual factors in an attempt to limit the amount of risk any individual factor contributes to the Fund and to reduce the Fund's volatility. The Fund will adjust its investments among asset classes and factor exposures to take advantage of opportunities and to manage risk. The Fund may engage in active and frequent trading of portfolio holdings.
In an attempt to reduce the Fund's volatility over time, the Fund may implement an option-based risk management strategy. This strategy involves purchasing and selling options on component indices or corresponding ETFs. This option strategy may not fully protect the Fund against declines in the value of its portfolio, and the Fund could experience a loss. The Fund also invests in other derivatives, including equity futures. Futures typically are used as a liquid and economical means of managing tactical allocations to asset classes or factors.
Diversification in the Fund's portfolio, combined with the use of call and put options, is designed to provide the Fund with fairly consistent returns over a wide range of market environments.
7. Borrowing and Interfund Lending:
Line of Credit:
For the six months ended June 30, 2020, the Victory Funds Complex participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date in 2021. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs. For the six months ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. For the year ended June 30, 2020, Citibank earned approximately $450 thousand in commitment fees from the combined Victory Funds Complex and USAA Mutual Funds Complex. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee. Interest charged to the Fund, if any, during the period are reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other Fund in the Victory Funds Complex relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period are reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by
33
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
the Fund, if any, during the period are reflected on the Statement of Operations under Income on interfund lending.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
8. Federal Income Tax Information:
The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.
The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.
The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2020.
During the most recent tax year ended December 31, 2019 the Fund had no capital loss carryforwards, for federal income tax purposes.
9. Affiliated Securities:
An affiliated security is a security in which the Fund has ownership of at least 5% of the security's outstanding voting shares or an investment company managed by VCM. The Fund does not invest in affiliated underlying funds for the purpose of exercising management or control. These underlying funds are noted as affiliated in the Fund's Schedule of Portfolio Investments. The affiliated underlying fund's annual or semiannual reports may be viewed at usaa.com. Transactions in affiliated securities during the six months ended June 30, 2020 were as follows (amount in thousands):
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Net Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Net Realized in Gains Distributions from Affiliated Underlying Funds | Dividend Income | ||||||||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | $ | 5,466 | $ | — | $ | — | $ | — | $ | (699 | ) | $ | 4,767 | $ | — | $ | 41 | ||||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 2,437 | — | — | — | (376 | ) | 2,061 | — | 3 | ||||||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 4,542 | — | — | — | (749 | ) | 3,793 | — | 32 | ||||||||||||||||||||||||||
$ | 12,445 | $ | — | $ | — | $ | — | $ | (1,824 | ) | $ | 10,621 | $ | — | $ | 76 |
34
USAA Mutual Funds Trust | Supplemental Information June 30, 2020 |
(Unaudited)
Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800) 539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at www.sec.gov.
Expense Examples
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020.
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 901.50 | $ | 1,020.39 | $ | 4.25 | $ | 4.52 | 0.90 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 901.90 | 1,021.38 | 3.31 | 3.52 | 0.70 | % |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
35
USAA Mutual Funds Trust | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The USAA Mutual Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the 1940 Act. The LRMP is reasonably designed to assess and manage the Fund's liquidity risk, taking into consideration the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The USAA Mutual Funds' Board of Trustees approved the appointment of the Fund's investment adviser, Victory Capital, as the administrator of the LRMP. At an in-person meeting held on February 26, 2020, Victory Capital provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
Victory Capital manages liquidity risks associated with the Fund's investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of the Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, Victory Capital has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by Victory Capital. Victory Capital reviews the preliminary liquidity classifications, and, when appropriate, considers other information including input from the Fund's portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from Victory Capital concluded that the Fund did not experience any significant liquidity challenges during the covered period, and the Fund's LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Victory Capital to oversee and manage liquidity risk and ensure the Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in the Fund. During the review period, the Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Fund has not adopted a Highly Liquid Investment Minimum. The Fund's investments were below the limitation on illiquid investments during the review period. Additionally, Victory Capital indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
36
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
P.O. Box 182593
Columbus, Ohio 43218-2593
Visit our website at: | Call | ||||||
vcm.com | (800) 235-8396 |
88395-0820
JUNE 30, 2020
Semi Annual Report
USAA Nasdaq-100 Index Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all funds held with the USAA Mutual Funds or your financial intermediary.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds. USAA Mutual Funds are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Financial Statements | |||||||
Schedule of Portfolio Investments | 4 | ||||||
Statement of Assets and Liabilities | 8 | ||||||
Statement of Operations | 9 | ||||||
Statements of Changes in Net Assets | 10 | ||||||
Financial Highlights | 14 | ||||||
Notes to Financial Statements | 16 | ||||||
Supplemental Information | 25 | ||||||
Proxy Voting and Portfolio Holdings Information | 25 | ||||||
Expense Examples | 25 | ||||||
Liquidity Risk Management Program | 26 | ||||||
Privacy Policy (inside back cover) |
This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by Victory Capital Management Inc. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund.
IRA DISTRIBUTION WITHHOLDING DISCLOSURE
We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state's tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election, or change or revoke a prior withholding election, call (800) 235-8396.
If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution.
For more specific information, please consult your tax adviser.
1
USAA Mutual Funds Trust USAA Nasdaq-100 Index Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective seeks to match, before fees and expenses, the performance of the stocks composing the Nasdaq-100 Index.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
Apple, Inc. | 12.0 | % | |||||
Microsoft Corp. | 11.7 | % | |||||
Amazon.com, Inc. | 10.5 | % | |||||
Facebook, Inc., Class A | 4.1 | % | |||||
Alphabet, Inc., Class A | 3.7 | % | |||||
Alphabet, Inc., Class C | 3.6 | % | |||||
Intel Corp. | 2.5 | % | |||||
NVIDIA Corp. | 2.3 | % | |||||
Adobe, Inc. | 2.0 | % | |||||
PayPal Holdings, Inc. | 2.0 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
USAA Mutual Funds Trust USAA Nasdaq-100 Index Fund | June 30, 2020 |
(Unaudited)
Sector Allocation:
June 30, 2020
(% of Net Assets)
*Does not include futures, money market instrument and short-term investments purchased with cash collateral from securities loaned.
Percentages are of the net assets of the Fund and may not equal 100%
3
USAA Mutual Funds Trust USAA Nasdaq-100 Index Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Common Stocks (99.6%) | |||||||||||
Communication Services (19.6%): | |||||||||||
Activision Blizzard, Inc. | 220,222 | $ | 16,715 | ||||||||
Alphabet, Inc. Class A (a) | 77,138 | 109,386 | |||||||||
Alphabet, Inc. Class C (a) | 75,323 | 106,477 | |||||||||
Baidu, Inc., ADR (a) | 78,607 | 9,424 | |||||||||
Charter Communications, Inc. Class A (a) | 59,010 | 30,097 | |||||||||
Comcast Corp. Class A | 1,301,838 | 50,746 | |||||||||
Electronic Arts, Inc. (a) | 82,513 | 10,896 | |||||||||
Facebook, Inc. Class A (a) | 538,780 | 122,341 | |||||||||
Fox Corp. Class A | 97,935 | 2,627 | |||||||||
Fox Corp. Class B | 74,622 | 2,003 | |||||||||
Liberty Global PLC Class A (a) | 52,093 | 1,139 | |||||||||
Liberty Global PLC Class C (a) | 117,631 | 2,530 | |||||||||
NetEase, Inc., ADR | 21,173 | 9,091 | |||||||||
Netflix, Inc. (a) | 125,706 | 57,201 | |||||||||
Sirius XM Holdings, Inc. (b) | 1,251,650 | 7,347 | |||||||||
Take-Two Interactive Software, Inc. (a) | 32,567 | 4,545 | |||||||||
T-Mobile U.S., Inc. (a) | 353,209 | 36,787 | |||||||||
579,352 | |||||||||||
Communications Equipment (1.9%): | |||||||||||
Cisco Systems, Inc. | 1,206,826 | 56,286 | |||||||||
Consumer Discretionary (17.0%): | |||||||||||
Amazon.com, Inc. (a) | 111,759 | 308,323 | |||||||||
Booking Holdings, Inc. (a) | 11,699 | 18,629 | |||||||||
Dollar Tree, Inc. (a) | 67,806 | 6,284 | |||||||||
eBay, Inc. | 200,841 | 10,534 | |||||||||
Expedia Group, Inc. | 38,717 | 3,183 | |||||||||
JD.com, Inc., ADR (a) | 265,333 | 15,968 | |||||||||
Lululemon Athletica, Inc. (a) | 35,532 | 11,086 | |||||||||
Marriott International, Inc. Class A | 92,680 | 7,945 | |||||||||
Mercadolibre, Inc. (a) | 14,208 | 14,006 | |||||||||
O'Reilly Automotive, Inc. (a) | 21,215 | 8,946 | |||||||||
Ross Stores, Inc. | 101,578 | 8,658 | |||||||||
Starbucks Corp. | 333,926 | 24,574 | |||||||||
Tesla, Inc. (a) | 52,983 | 57,212 | |||||||||
Trip.com Group Ltd., ADR (a) | 149,478 | 3,874 | |||||||||
Ulta Beauty, Inc. (a) | 16,095 | 3,274 | |||||||||
502,496 | |||||||||||
Consumer Staples (4.9%): | |||||||||||
Costco Wholesale Corp. | 126,213 | 38,269 | |||||||||
Mondelez International, Inc. Class A | 408,001 | 20,861 | |||||||||
Monster Beverage Corp. (a) | 150,504 | 10,433 | |||||||||
PepsiCo, Inc. | 396,578 | 52,452 | |||||||||
The Kraft Heinz Co. | 349,227 | 11,137 | |||||||||
Walgreens Boots Alliance, Inc. | 250,729 | 10,628 | |||||||||
143,780 |
See notes to financial statements.
4
USAA Mutual Funds Trust USAA Nasdaq-100 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Electronic Equipment, Instruments & Components (0.2%): | |||||||||||
CDW Corp. | 40,678 | $ | 4,726 | ||||||||
Health Care (7.2%): | |||||||||||
Alexion Pharmaceuticals, Inc. (a) | 63,117 | 7,084 | |||||||||
Align Technology, Inc. (a) | 22,512 | 6,178 | |||||||||
Amgen, Inc. | 168,134 | 39,656 | |||||||||
Biogen, Inc. (a) | 46,643 | 12,479 | |||||||||
BioMarin Pharmaceutical, Inc. (a) | 51,687 | 6,375 | |||||||||
Cerner Corp. | 86,990 | 5,963 | |||||||||
DexCom, Inc. (a) | 26,394 | 10,700 | |||||||||
Gilead Sciences, Inc. (c) | 358,528 | 27,585 | |||||||||
IDEXX Laboratories, Inc. (a) | 24,276 | 8,015 | |||||||||
Illumina, Inc. (a) | 42,016 | 15,561 | |||||||||
Incyte Corp. (a) | 62,130 | 6,460 | |||||||||
Intuitive Surgical, Inc. (a) | 33,332 | 18,994 | |||||||||
Regeneron Pharmaceuticals, Inc. (a) | 28,830 | 17,980 | |||||||||
Seattle Genetics, Inc. (a) | 49,476 | 8,407 | |||||||||
Vertex Pharmaceuticals, Inc. (a) | 74,107 | 21,514 | |||||||||
212,951 | |||||||||||
Industrials (2.0%): | |||||||||||
Cintas Corp. | 29,740 | 7,922 | |||||||||
Copart, Inc. (a) | 67,105 | 5,588 | |||||||||
CoStar Group, Inc. (a) (c) | 11,152 | 7,926 | |||||||||
CSX Corp. | 218,787 | 15,258 | |||||||||
Fastenal Co. | 163,724 | 7,014 | |||||||||
PACCAR, Inc. | 98,816 | 7,396 | |||||||||
Verisk Analytics, Inc. | 46,377 | 7,893 | |||||||||
58,997 | |||||||||||
IT Services (4.0%): | |||||||||||
Automatic Data Processing, Inc. | 122,839 | 18,289 | |||||||||
Cognizant Technology Solutions Corp. Class A | 154,510 | 8,779 | |||||||||
Fiserv, Inc. (a) | 191,353 | 18,680 | |||||||||
Paychex, Inc. | 102,529 | 7,767 | |||||||||
PayPal Holdings, Inc. (a) | 335,601 | 58,472 | |||||||||
VeriSign, Inc. (a) | 33,024 | 6,830 | |||||||||
118,817 | |||||||||||
Semiconductors & Semiconductor Equipment (12.4%): | |||||||||||
Advanced Micro Devices, Inc. (a) | 334,752 | 17,611 | |||||||||
Analog Devices, Inc. | 105,304 | 12,914 | |||||||||
Applied Materials, Inc. | 261,950 | 15,835 | |||||||||
ASML Holding NV, NYS | 21,970 | 8,086 | |||||||||
Broadcom, Inc. | 114,269 | 36,064 | |||||||||
Intel Corp. | 1,210,171 | 72,404 | |||||||||
KLA Corp. | 44,316 | 8,619 | |||||||||
Lam Research Corp. | 41,491 | 13,421 | |||||||||
Maxim Integrated Products, Inc. | 76,207 | 4,619 | |||||||||
Microchip Technology, Inc. | 70,121 | 7,384 | |||||||||
Micron Technology, Inc. (a) | 317,887 | 16,378 |
See notes to financial statements.
5
USAA Mutual Funds Trust USAA Nasdaq-100 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
NVIDIA Corp. | 175,781 | $ | 66,781 | ||||||||
NXP Semiconductors NV | 79,754 | 9,095 | |||||||||
QUALCOMM, Inc. | 321,529 | 29,327 | |||||||||
Skyworks Solutions, Inc. | 47,685 | 6,097 | |||||||||
Texas Instruments, Inc. | 262,320 | 33,307 | |||||||||
Xilinx, Inc. | 69,501 | 6,838 | |||||||||
364,780 | |||||||||||
Software (17.5%): | |||||||||||
Adobe, Inc. (a) | 137,709 | 59,946 | |||||||||
ANSYS, Inc. (a) | 24,465 | 7,137 | |||||||||
Autodesk, Inc. (a) | 62,648 | 14,985 | |||||||||
Cadence Design Systems, Inc. (a) | 79,798 | 7,657 | |||||||||
Check Point Software Technologies Ltd. (a) | 40,869 | 4,391 | |||||||||
Citrix Systems, Inc. | 35,285 | 5,219 | |||||||||
DocuSign, Inc. (a) | 52,342 | 9,014 | |||||||||
Intuit, Inc. | 74,534 | 22,076 | |||||||||
Microsoft Corp. (c) | 1,699,198 | 345,804 | |||||||||
Splunk, Inc. (a) | 45,399 | 9,021 | |||||||||
Synopsys, Inc. (a) | 43,099 | 8,404 | |||||||||
Workday, Inc. Class A (a) | 49,733 | 9,318 | |||||||||
Zoom Video Communications, Inc. Class A (a) (b) | 47,891 | 12,142 | |||||||||
515,114 | |||||||||||
Technology Hardware, Storage & Peripherals (12.2%): | |||||||||||
Apple, Inc. | 971,181 | 354,287 | |||||||||
NetApp, Inc. | 63,217 | 2,805 | |||||||||
Western Digital Corp. | 85,661 | 3,782 | |||||||||
360,874 | |||||||||||
Utilities (0.7%): | |||||||||||
Exelon Corp. | 278,507 | 10,107 | |||||||||
Xcel Energy, Inc. (c) | 150,105 | 9,382 | |||||||||
19,489 | |||||||||||
Total Common Stocks (Cost $1,187,848) | 2,937,662 | ||||||||||
Rights (0.0%) (d) | |||||||||||
Communication Services (0.0%): (d) | |||||||||||
T-Mobile U.S., Inc. Expires 7/28/20 (a) | 353,881 | 59 | |||||||||
Total Rights (Cost $—) | 59 | ||||||||||
Collateral for Securities Loaned^ (0.4%) | |||||||||||
HSBC U.S. Government Money Market Fund, I Shares, 0.11% (e) | 12,393,785 | 12,394 | |||||||||
Invesco Government & Agency Portfolio Institutional Shares, 0.09% (e) | 435,215 | 435 | |||||||||
Total Collateral for Securities Loaned (Cost $12,829) | 12,829 | ||||||||||
Total Investments (Cost $1,200,677) — 100.0% | 2,950,550 | ||||||||||
Liabilities in excess of other assets — 0.0% | (1,292 | ) | |||||||||
NET ASSETS — 100.00% | $ | 2,949,258 |
See notes to financial statements.
6
USAA Mutual Funds Trust USAA Nasdaq-100 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Unaudited)
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) All or a portion of this security has been segregated as collateral for derivative instruments.
(d) Amount represents less than 0.05% of net assets.
(e) Rate disclosed is the daily yield on June 30, 2020.
ADR — American Depositary Receipt
NYS — New York Registered Shares
PLC — Public Limited Company
Futures Contracts Purchased
(Amounts not in thousands)
Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
NASDAQ 100 E-Mini Futures | 60 | 9/18/20 | $ | 11,896,805 | $ | 12,176,700 | $ | 279,895 | |||||||||||||||
Total unrealized appreciation | $ | 279,895 | |||||||||||||||||||||
Total unrealized depreciation | — | ||||||||||||||||||||||
Total net unrealized appreciation (depreciation) | $ | 279,895 |
See notes to financial statements.
7
USAA Mutual Funds Trust | Statement of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA Nasdaq-100 Index Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $1,200,677) | $ | 2,950,550 | (a) | ||||
Cash and cash equivalents | 9,346 | ||||||
Deposits with brokers for futures contracts | 2,816 | ||||||
Receivables: | |||||||
Interest and dividends | 687 | ||||||
Capital shares issued | 1,954 | ||||||
Variation margin on open futures contracts | 219 | ||||||
From Adviser | — | (b) | |||||
Prepaid expenses | 295 | ||||||
Total Assets | 2,965,867 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 12,829 | ||||||
Capital shares redeemed | 2,722 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 470 | ||||||
Administration fees | 350 | ||||||
Custodian fees | 23 | ||||||
Transfer agent fees | 115 | ||||||
Compliance fees | 2 | ||||||
Trustees' fees | — | (b) | |||||
12b-1 fees | — | (b) | |||||
Other accrued expenses | 98 | ||||||
Total Liabilities | 16,609 | ||||||
Net Assets: | |||||||
Capital | 1,181,888 | ||||||
Total distributable earnings/(loss) | 1,767,370 | ||||||
Net Assets | $ | 2,949,258 | |||||
Net Assets | |||||||
Fund Shares | $ | 2,922,949 | |||||
Institutional Shares | 19 | ||||||
Class A shares | 19 | ||||||
Class C shares | 19 | ||||||
Class R6 Shares | 26,252 | ||||||
Total | $ | 2,949,258 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 102,877 | ||||||
Institutional Shares | 1 | ||||||
Class A shares | 1 | ||||||
Class C shares | 1 | ||||||
Class R6 Shares | 923 | ||||||
Total | 103,803 | ||||||
Net asset value, offering and redemption price per share: (c) | |||||||
Fund Shares | $ | 28.41 | |||||
Institutional Shares | 28.41 | ||||||
Class A shares | 28.41 | ||||||
Class C shares (d) | 28.41 | ||||||
Class R6 Shares | 28.43 | ||||||
Maximum Sales Charge — Class A | 2.25 | % | |||||
Maximum offering price (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share — Class A shares | $ | 29.06 |
(a) Includes $12,770 of securities on loan.
(b) Rounds to less than $1 thousand.
(c) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
(d) Redemption price per share varies by the length of time shares are held.
See notes to financial statements.
8
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA Nasdaq-100 Index Fund | |||||||
Investment Income: | |||||||
Dividends | $ | 12,933 | |||||
Interest | 58 | ||||||
Securities lending (net of fees) | 21 | ||||||
Foreign tax withholding | (9 | ) | |||||
Total Income | 13,003 | ||||||
Expenses*: | |||||||
Investment advisory fees | 2,552 | ||||||
Administration fees — Fund Shares | 1,898 | ||||||
Administration fees — Institutional Shares | — | (a) | |||||
Administration fees — Class A shares | — | (a) | |||||
Administration fees — Class C shares | — | (a) | |||||
Administration fees — R6 Shares | 5 | ||||||
Sub-Administration fees | 11 | ||||||
12b-1 fees — Class A shares | — | (a) | |||||
12b-1 fees — Class C shares | — | (a) | |||||
Custodian fees | 55 | ||||||
Transfer agent fees — Fund Shares | 815 | ||||||
Transfer agent fees — Class R6 Shares | 1 | ||||||
Trustees' fees | 23 | ||||||
Compliance fees | 7 | ||||||
Legal and audit fees | 39 | ||||||
State registration and filing fees | 51 | ||||||
Other expenses | 170 | ||||||
Total Expenses | 5,627 | ||||||
Expenses waived/reimbursed by Adviser | — | (a) | |||||
Net Expenses | 5,627 | ||||||
Net Investment Income (Loss) | 7,376 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | (22,098 | ) | |||||
Net realized gains (losses) from futures contracts | 2,221 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | 427,687 | ||||||
Net change in unrealized appreciation/depreciation on futures contracts | (158 | ) | |||||
Net realized/unrealized gains (losses) on investments | 407,652 | ||||||
Change in net assets resulting from operations | $ | 415,028 |
* Class A, Class C and Institutional Shares activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
(a) Rounds to less than $1 thousand.
See notes to financial statements.
9
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Nasdaq-100 Index Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 7,376 | $ | 13,488 | |||||||
Net realized gains (losses) from investments | (19,877 | ) | 48,976 | ||||||||
Net change in unrealized appreciation/depreciation on investments | 427,529 | 625,270 | |||||||||
Change in net assets resulting from operations | 415,028 | 687,734 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | — | (a) | (21,297 | ) | |||||||
Class R6 Shares | — | (172 | ) | ||||||||
Change in net assets resulting from distributions to shareholders | — | (a) | (21,469 | ) | |||||||
Change in net assets resulting from capital transactions | 72,691 | 31,933 | |||||||||
Change in net assets | 487,719 | 698,198 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 2,461,539 | 1,763,341 | |||||||||
End of period | $ | 2,949,258 | $ | 2,461,539 |
(a) Rounds to less than $1 thousand.
(continues on next page)
See notes to financial statements.
10
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
USAA Nasdaq-100 Index Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 601,190 | $ | 415,059 | |||||||
Distributions reinvested | — | (a) | 20,918 | ||||||||
Cost of shares redeemed | (532,277 | ) | (405,319 | ) | |||||||
Total Fund Shares | $ | 68,913 | $ | 30,658 | |||||||
Institutional Shares (b) | |||||||||||
Proceeds from shares issued | $ | 18 | $ | — | |||||||
Total Institutional Shares | $ | 18 | $ | — | |||||||
Class A shares (c) | |||||||||||
Proceeds from shares issued | $ | 18 | $ | — | |||||||
Total Class A shares | $ | 18 | $ | — | |||||||
Class C shares (d) | |||||||||||
Proceeds from shares issued | $ | 18 | $ | — | |||||||
Total Class C shares | $ | 18 | $ | — | |||||||
Class R6 Shares | |||||||||||
Proceeds from shares issued | $ | 8,198 | $ | 6,125 | |||||||
Distributions reinvested | — | 99 | |||||||||
Cost of shares redeemed | (4,474 | ) | (4,949 | ) | |||||||
Total Class R6 Shares | $ | 3,724 | $ | 1,275 | |||||||
Change in net assets resulting from capital transactions | $ | 72,691 | $ | 31,933 |
(a) Rounds to less than $1 thousand.
(b) Institutional Shares activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
(c) Class A activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
(d) Class C activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
(continues on next page)
See notes to financial statements.
11
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands) (continued)
USAA Nasdaq-100 Index Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 24,541 | 19,540 | |||||||||
Reinvested | — | (a) | 861 | ||||||||
Redeemed | (21,987 | ) | (19,046 | ) | |||||||
Total Fund Shares | 2,554 | 1,355 | |||||||||
Institutional Shares (b) | |||||||||||
Issued | 1 | — | |||||||||
Total Institutional Shares | 1 | — | |||||||||
Class A shares (c) | |||||||||||
Issued | 1 | — | |||||||||
Total Class A shares | 1 | — | |||||||||
Class C shares (d) | |||||||||||
Issued | 1 | — | |||||||||
Total Class C shares | 1 | — | |||||||||
Class R6 Shares | |||||||||||
Issued | 323 | 287 | |||||||||
Reinvested | — | 4 | |||||||||
Redeemed | (175 | ) | (232 | ) | |||||||
Total Class R6 Shares | 148 | 59 | |||||||||
Change in Shares | 2,705 | 1,414 |
(a) Rounds to less than 1 thousand.
(b) Institutional Shares activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
(c) Class A activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
(d) Class C activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
See notes to financial statements.
12
This page is intentionally left blank.
13
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains From Investments | ||||||||||||||||||||||
USAA Nasdaq-100 Index Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 24.35 | 0.07 | (d) | 3.99 | 4.06 | — | — | |||||||||||||||||||
Year Ended December 31, 2019 | $ | 17.69 | 0.13 | (d) | 6.74 | 6.87 | (0.13 | ) | (0.08 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 17.89 | 0.11 | (0.18 | ) | (0.07 | ) | (0.12 | ) | (0.01 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 13.79 | 0.07 | 4.38 | 4.45 | (0.08 | ) | (0.27 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 12.99 | 0.09 | 0.78 | 0.87 | (0.07 | ) | — | |||||||||||||||||||
Year Ended December 31, 2015 | $ | 12.23 | 0.08 | 1.04 | 1.12 | (0.08 | ) | (0.28 | ) | ||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
June 29, 2020 (e) through June 30, 2020 | $ | 27.86 | — | (d)(f) | 0.55 | 0.55 | — | — | |||||||||||||||||||
Class A shares | |||||||||||||||||||||||||||
June 29, 2020 (e) through June 30, 2020 | $ | 27.86 | — | (d)(f) | 0.55 | 0.55 | — | — | |||||||||||||||||||
Class C shares | |||||||||||||||||||||||||||
June 29, 2020 (e) through June 30, 2020 | $ | 27.86 | — | (d)(f) | 0.55 | 0.55 | — | — | |||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 24.35 | 0.09 | (d) | 3.99 | 4.08 | — | — | |||||||||||||||||||
Year Ended December 31, 2019 | $ | 17.68 | 0.15 | (d) | 6.74 | 6.89 | (0.14 | ) | (0.08 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 17.89 | 0.12 | (0.18 | ) | (0.06 | ) | (0.14 | ) | (0.01 | ) | ||||||||||||||||
March 1, 2017 (e) through December 31, 2017 | $ | 15.31 | 0.08 | 2.87 | 2.95 | (0.10 | ) | (0.27 | ) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
See notes to financial statements.
14
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return (excludes sales charge)*(a) | Net Expenses^(b) | Net Investment Income (Loss)(b) | Gross Expenses(b) | Net Assets, End of Period (000's) | Portfolio Turnover(a)(c) | ||||||||||||||||||||||||||||
USAA Nasdaq-100 Index Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 28.41 | 16.67 | % | 0.44 | % | 0.58 | % | 0.44 | % | $ | 2,922,949 | 6 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (0.21 | ) | $ | 24.35 | 38.86 | % | 0.48 | % | 0.63 | % | 0.48 | % | $ | 2,442,662 | 9 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.13 | ) | $ | 17.69 | (0.44 | )% | 0.48 | % | 0.64 | % | 0.48 | % | $ | 1,750,674 | 5 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.35 | ) | $ | 17.89 | 32.29 | % | 0.51 | % | 0.60 | % | 0.51 | % | $ | 1,623,579 | 5 | % | |||||||||||||||||||
Year Ended December 31, 2016 | (0.07 | ) | $ | 13.79 | 6.68 | % | 0.53 | % | 0.77 | % | 0.53 | % | $ | 1,078,319 | 4 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.36 | ) | $ | 12.99 | 9.09 | % | 0.57 | % | 0.62 | % | 0.57 | % | $ | 935,004 | 10 | % | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
June 29, 2020 (e) through June 30, 2020 | — | $ | 28.41 | 1.97 | % | 0.44 | % | 3.28 | % | 100.13 | % | $ | 19 | 6 | % | ||||||||||||||||||||
Class A shares | |||||||||||||||||||||||||||||||||||
June 29, 2020 (e) through June 30, 2020 | — | $ | 28.41 | 1.97 | % | 0.70 | % | 3.04 | % | 94.69 | % | $ | 19 | 6 | % | ||||||||||||||||||||
Class C shares | |||||||||||||||||||||||||||||||||||
June 29, 2020 (e) through June 30, 2020 | — | $ | 28.41 | 1.97 | % | 1.45 | % | 2.30 | % | 96.38 | % | $ | 19 | 6 | % | ||||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 28.43 | 16.76 | % | 0.33 | % | 0.69 | % | 0.33 | % | $ | 26,252 | 6 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (0.22 | ) | $ | 24.35 | 38.99 | % | 0.39 | % | 0.71 | % | 0.42 | % | $ | 18,877 | 9 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.15 | ) | $ | 17.68 | (0.38 | )% | 0.40 | % | 0.72 | % | 0.45 | % | $ | 12,667 | 5 | % | |||||||||||||||||||
March 1, 2017 (e) through December 31, 2017 | (0.37 | ) | $ | 17.89 | 19.27 | % | 0.40 | % | 0.66 | % | 1.01 | % | $ | 5,860 | 5 | % |
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
(e) Commencement of operations.
(f) Amount is less than $0.005 per share.
See notes to financial statements.
15
USAA Mutual Funds Trust | Notes to Financial Statements June 30, 2020 |
1. Organization:
USAA Mutual Funds Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 47 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value.
The accompanying financial statements are those of USAA Nasdaq-100 Index Fund (the "Fund"). The Fund offers five classes of shares: Fund Shares, Institutional Shares, Class A shares, Class C shares, and R6 Shares. The Fund is classified as non- diversified under the 1940 Act. The Institutional Shares, Class A, and Class C were effective June 29, 2020.
Each class of shares of the Fund has substantially identical rights and privileges except with respect to sales charges, fees paid under distribution plans, expenses allocable exclusively to each class of shares, voting rights on matters solely affecting a single class of shares, and the exchange privilege of each class of shares.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.
Investment Valuation:
The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
The Adviser has established the Pricing and Liquidity Committee (the "Committee"), and subject to Trust's Board of Trustees (the "Board") oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.
16
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Investments in open-end investment companies are valued at net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt securities of United States ("U.S.") issuers, along with corporate and municipal securities, including short-term investments maturing in 60 days or less, may be valued using evaluated bid or the last sales price to price securities by dealers or an independent pricing service approved by the Board. These valuations are typically categorized as Level 2 in the fair value hierarchy.
In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 2,937,662 | $ | — | $ | — | $ | 2,937,662 | |||||||||||
Rights | 59 | — | — | 59 | |||||||||||||||
Collateral for Securities Loaned | 12,829 | — | — | 12,829 | |||||||||||||||
Total | $ | 2,950,550 | $ | — | $ | — | $ | 2,950,550 | |||||||||||
Other Financial Investments^: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Futures Contracts | 280 | — | — | 280 | |||||||||||||||
Total | $ | 280 | $ | — | $ | — | $ | 280 |
^ Futures Contracts are valued at the unrealized appreciation (depreciation) on the investment.
For the six months ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
Real Estate Investment Trusts ("REITs"):
The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.
17
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
Investment Companies:
The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
Derivative Instruments:
Futures Contracts:
The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is reflected on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.
During the period ended June 30, 2020, the Fund held futures contracts primarily for the strategy of gaining exposure to a particular asset class or securities market.
Summary of Derivative Instruments:
The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of June 30, 2020 (amounts in thousands):
Assets | |||||||
Variation Margin Receivable on Open Futures Contracts* | |||||||
Equity Risk Exposure: | $ | 280 |
* Includes cumulative appreciation/depreciation of futures contracts as reported on the Schedule of Portfolio Investments. Only current day's variation margin for futures contracts are reported within the Statement of Assets and Liabilities.
18
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2020 (amounts in thousands):
Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations | Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations | ||||||||||
Net Realized Gains (Losses) from Futures Contracts | Net Change in Unrealized Appreciation/Depreciation on Futures Contracts | ||||||||||
Equity Risk Exposure | $ | 2,221 | $ | (158 | ) |
All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The underlying face value of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Withholding taxes on interest, dividends and gains as a result of certain investments in ADRs by the Fund has been provided for in accordance with each investment's applicable country's tax rules and rates.
Securities Lending:
The Fund, through a securities lending agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income, net of income retained by Citibank. Borrowers are required to secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are cured the next business day once the shortfall exceeds $100 thousand. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments, primarily open-end investment companies. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Fund's agreement with Citibank does not include master netting provisions. Non- cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed on the Fund's Schedule of Portfolio Investments and Financial Statements while non-cash collateral is not included.
19
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of June 30, 2020:
Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
$ | 12,770 | $ | — | $ | 12,829 |
Federal Income Taxes:
It is the Fund's policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.
Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which include the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
Allocations:
Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
Income, expenses (other than class-specific expenses such as transfer agent fees, state registration fees, and printing fees), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets on the date income is earned or expenses and realized and unrealized gains and losses are incurred.
3. Purchases and Sales:
Cost of purchases and proceeds from sales/maturities of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2020, were as follows for the Fund (amounts in thousands):
Excluding U.S. Government Securities | |||||||||||
Purchases | Sales | ||||||||||
$ | 248,516 | $ | 164,797 |
There were no purchases and sales of U.S. government securities during the six months ended June 30, 2020.
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC. Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annual rate of 0.20% of the Fund's average daily net assets. The amounts incurred and paid to VCM during the six months ended June 30, 2020, are reflected on the Statement of Operations as Investment Advisory fees.
20
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
The Trust relies on an exemptive order granted to VCM and its affiliated funds by the SEC in March 2019 permitting the use of a "manager-of-managers" structure for certain funds. Prior to that date, the Trust relied on a similar exemptive order granted by the SEC to the Trust and its affiliated persons. Under a manager-of-managers structure, the investment adviser may select (with approval of the Board and without shareholder approval) one or more subadvisers to manage the day-to-day investment of a fund's assets. Victory Capital's internal investment team, Victory Solutions, manages the Fund's assets. For the six months ended June 30, 2020, the Fund had no subadvisers.
Administration and Servicing Fees:
VCM serves as the Fund's administrator and fund accountant. Under the Fund Administration, Servicing and Accounting Agreement, VCM is paid for its services an annual fee at a rate of 0.15%, 0.10%, 0.15%, 0.15% and 0.05% of average daily net assets of the Fund Shares, Institutional Shares, Class A shares, Class C shares and Class R6 Shares, respectively. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Administration fees.
The Fund (as part of the Trust) has entered into an agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. Funds in the Trust, Victory Variable Insurance Funds, Victory Portfolios, and Victory Portfolios II (collectively, the "Victory Funds Complex") in the aggregate, compensate the Adviser for these services. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Compliance fees.
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub- Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for reasonable out-of- pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund under the Fund Administration, Servicing, and Accounting Agreement. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Sub-Administration fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), provides transfer agency services to the Fund. VCTA, an affiliate of the Adviser, provides transfer agent services to the Fund based on an annual charge of $23 per shareholder account plus out-of-pocket expenses. VCTA pays a portion of these fees to certain intermediaries for the administration and servicing of accounts that are held with such intermediaries. Transfer agent's fees for Intuitional Shares, Class A shares, Class C shares and R6 Shares are paid monthly based on a fee accrued daily at an annualized rate of 0.10%, 0.10%, 0.10% and 0.01% of the Shares' average daily net assets, respectively, plus out-of-pocket expenses. Amounts incurred and paid to VCTA during the six months ended June 30, 2020, are reflected on the Statement of Operations as Transfer Agent fees.
FIS Investor Services LLC serves as sub-transfer agent and dividend disbursing agent for the Fund pursuant to a Sub-Transfer Agent agreement between VCTA and FIS Investor Services LLC. VCTA provides FIS Investor Services LLC a fee for providing these services.
Distribution and Service 12b-1 Fees:
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Advisers, Inc.
21
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
Pursuant to the Distribution and Service Plans adopted in accordance with Rule 12b-1 under the 1940 Act, the Distributor may receive a monthly distribution and service fee, at an annual rate of up to 0.25% and 1.00% of the average daily net assets of the Class A shares and Class C shares, respectively. These amounts incurred and paid to the Distributor are reflected on the Statement of Operations as 12b-1 fees.
Class A shares are offered and sold with the imposition of a maximum initial sales charge of up to 2.25% of the offering price of the Fund. A contingent deferred sales charge of up to 1.00% may be imposed on redemptions of Class A shares purchased without an initial sales charge if shares are redeemed within 18 months of purchase.
Other Fees:
Citibank serves as the Fund's custodian.
K&L Gates LLP provides legal services to the Trust.
The Distributor is entitled to receive commissions on sales of the Class A shares and of the Fund. For the six months ended June 30, 2020, the Distributor did not receive commissions earned on sales of Class A shares of the Fund.
The Adviser has entered into an expense limitation agreement with the Fund until at least June 30, 2021. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by certain classes of the Fund in any fiscal year exceed the expense limit for such classes of the Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures, which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limits (excluding voluntary waivers) were 0.48%, 0.44%, 0.70%, 1.45%, and 0.40% for Fund Shares, Institutional Shares, Class A shares, Class C shares, and R6 Shares, respectively.
Under this expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. As of June 30, 2020, less than $1 thousand is available to be repaid to the Adviser.
The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2020.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, Administrator, Sub-Administrator, Sub-Fund Accountant, and Legal.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region. Geopolitical and other risks, including war, terrorism, trade disputes, political or economic dysfunction within some nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as the coronavirus (or COVID-19), may result in, among other things, closing borders, disruptions to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer
22
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
activity, as well as general concern and uncertainty. The impact may be short-term or may last for extended periods.
The COVID-19 pandemic, which has spread rapidly across the world, has led and will continue to lead for an unknown period of time to disruptions in local, regional, national and global markets and economies. Among other things, the outbreak has resulted in, and until fully resolved is likely to continue to result in, among other things (1) government imposition of various forms of "stay-at-home" orders and the closing of "non-essential" businesses, resulting in significant disruption to the businesses of many issuers as well as lay-offs of employees; (2) increased requests by issuers of debt instruments for amendments and waivers of agreements to avoid default and increased defaults; (3) volatility and disruption of markets, including greater volatility in pricing and spreads; and (4) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general.
Overall stock market risks may affect the value of the Fund. Domestic and international factors such as political events, war, trade disputes, interest rate levels and other fiscal and monetary policy changes, pandemics and other public health crises, and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. The impact of these and other factors may be short-term or may last for extended periods.
The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general economic conditions. A company's earnings or dividends may not increase as expected due to poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military confrontations, war, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.
Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market.
6. Borrowing and Interfund Lending:
Line of Credit:
For the six months ended June 30, 2020, the Victory Funds Complex participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date of June 28, 2021. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs. For the six months ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee. Interest charged to the Fund, if any, during the period are reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other Fund in the Victory Funds Complex relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period are reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by
23
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
the Fund, if any, during the period are reflected on the Statement of Operations under Income on interfund lending.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
7. Federal Income Tax Information:
The Fund intends to distribute any net investment income annually. Distributable net realized gains, if any, are declared and paid at least annually.
The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.
The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2020.
During the most recent tax year ended December 31, 2019, the Fund had no capital loss carryforwards, for federal income tax purposes.
24
USAA Mutual Funds Trust | Supplemental Information June 30, 2020 |
(Unaudited)
Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800) 539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at www.sec.gov.
Expense Examples
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases; and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020 (unless noted otherwise).
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,166.70 | $ | 1,022.68 | $ | 2.37 | $ | 2.21 | 0.44 | % | |||||||||||||||
Institutional Shares** | 1,000.00 | 1,019.70 | 1,022.68 | 0.01 | 2.21 | 0.44 | % | ||||||||||||||||||||
Class A shares* | 1,000.00 | 1,019.70 | 1,021.38 | 0.02 | 3.52 | 0.70 | % | ||||||||||||||||||||
Class C shares** | 1,000.00 | 1,019.70 | 1,017.65 | 0.04 | 7.27 | 1.45 | % | ||||||||||||||||||||
Class R6 Shares | 1,000.00 | 1,167.60 | 1,023.22 | 1.78 | 1.66 | 0.33 | % |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
** Actual Expenses Paid are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 1/366 to reflect the stub period from commencement of operations June 29, 2020 through June 30, 2020.
25
USAA Mutual Funds Trust | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The USAA Mutual Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the 1940 Act. The LRMP is reasonably designed to assess and manage the Fund's liquidity risk, taking into consideration the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The USAA Mutual Funds' Board of Trustees approved the appointment of the Fund's investment adviser, Victory Capital, as the administrator of the LRMP. At an in-person meeting held on February 26, 2020, Victory Capital provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
Victory Capital manages liquidity risks associated with the Fund's investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of the Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, Victory Capital has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by Victory Capital. Victory Capital reviews the preliminary liquidity classifications, and, when appropriate, considers other information including input from the Fund's portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from Victory Capital concluded that the Fund did not experience any significant liquidity challenges during the covered period, and the Fund's LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Victory Capital to oversee and manage liquidity risk and ensure the Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in the Fund. During the review period, the Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Fund has not adopted a Highly Liquid Investment Minimum. The Fund's investments were below the limitation on illiquid investments during the review period. Additionally, Victory Capital indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
26
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
P.O. Box 182593
Columbus, Ohio 43218-2593
Visit our website at: | Call | ||||||
vcm.com | (800) 235-8396 |
37758-0820
JUNE 30, 2020
Semi Annual Report
USAA 500 Index Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all funds held with the USAA Mutual Funds or your financial intermediary.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds. USAA Mutual Funds are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Financial Statements | |||||||
Schedule of Portfolio Investments | 4 | ||||||
Statement of Assets and Liabilities | 16 | ||||||
Statement of Operations | 17 | ||||||
Statements of Changes in Net Assets | 18 | ||||||
Financial Highlights | 20 | ||||||
Notes to Financial Statements | 22 | ||||||
Supplemental Information | 31 | ||||||
Proxy Voting and Portfolio Holdings Information | 31 | ||||||
Expense Examples | 31 | ||||||
Liquidity Risk Management Program | 32 | ||||||
Privacy Policy (inside back cover) |
This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by Victory Capital Management Inc. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund.
IRA DISTRIBUTION WITHHOLDING DISCLOSURE
We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state's tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election, or change or revoke a prior withholding election, call (800) 235-8396.
If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution.
For more specific information, please consult your tax adviser.
1
USAA Mutual Funds Trust USAA 500 Index Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective seeks to match, before fees and expenses, the performance of the stocks composing the Victory US Large Cap 500 Index.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
Apple, Inc. | 6.1 | % | |||||
Microsoft Corp. | 5.9 | % | |||||
Amazon.com, Inc. | 4.8 | % | |||||
Alphabet, Inc. Class C | 3.4 | % | |||||
Facebook, Inc. | 2.0 | % | |||||
Berkshire Hathaway, Inc. Class B | 1.5 | % | |||||
Johnson & Johnson | 1.4 | % | |||||
Visa, Inc. Class A | 1.3 | % | |||||
The Procter & Gamble Co. | 1.1 | % | |||||
JPMorgan Chase & Co. | 1.1 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
USAA Mutual Funds Trust USAA 500 Index Fund (continued) | June 30, 2020 |
(Unaudited)
Sector Allocation*:
June 30, 2020
(% of Net Assets)
*Does not include futures, money market instrument and short-term investments purchased with cash collateral from securities loaned.
Percentages are of the net assets of the Fund and may not equal 100%
3
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Common Stocks (99.6%) | |||||||||||
Communication Services (10.8%): | |||||||||||
Activision Blizzard, Inc. | 192,342 | $ | 14,599 | ||||||||
Alphabet, Inc. Class C (a) | 181,193 | 256,136 | |||||||||
Altice USA, Inc. Class A (a) | 22,506 | 507 | |||||||||
AT&T, Inc. | 2,138,902 | 64,659 | |||||||||
CenturyLink, Inc. | 291,318 | 2,922 | |||||||||
Charter Communications, Inc. Class A (a) | 55,504 | 28,309 | |||||||||
Comcast Corp. Class A | 1,312,437 | 51,159 | |||||||||
Discovery, Inc. Class A (a) (b) | 38,427 | 811 | |||||||||
DISH Network Corp. Class A (a) | 66,253 | 2,286 | |||||||||
Electronic Arts, Inc. (a) | 85,751 | 11,324 | |||||||||
Facebook, Inc. Class A (a) | 666,227 | 151,280 | |||||||||
Fox Corp. Class A | 93,479 | 2,507 | |||||||||
Liberty Broadband Corp. Class A (a) | 50,015 | 6,111 | |||||||||
Liberty Media Corp-Liberty SiriusXM Class A (a) | 82,261 | 2,840 | |||||||||
Live Nation Entertainment, Inc. (a) (b) | 46,935 | 2,081 | |||||||||
Match Group, Inc. (a) (b) | 19,331 | 6,252 | |||||||||
Match Group, Inc. (a) (b) | 9,877 | 1,057 | |||||||||
Netflix, Inc. (a) | 119,520 | 54,386 | |||||||||
Omnicom Group, Inc. | 63,650 | 3,475 | |||||||||
Pinterest, Inc. Class A (a) | 25,945 | 575 | |||||||||
Sirius XM Holdings, Inc. (b) | 387,460 | 2,274 | |||||||||
Snap, Inc. Class A (a) | 281,642 | 6,616 | |||||||||
Take-Two Interactive Software, Inc. (a) | 34,205 | 4,774 | |||||||||
The Walt Disney Co. | 485,158 | 54,100 | |||||||||
T-Mobile U.S., Inc. (a) | 124,959 | 13,015 | |||||||||
Twitter, Inc. (a) | 230,584 | 6,869 | |||||||||
Verizon Communications, Inc. | 1,216,061 | 67,042 | |||||||||
ViacomCBS, Inc. Class B (b) | 153,620 | 3,582 | |||||||||
Zillow Group, Inc. Class C (a) (b) | 26,913 | 1,551 | |||||||||
823,099 | |||||||||||
Communications Equipment (1.0%): | |||||||||||
Arista Networks, Inc. (a) | 18,659 | 3,919 | |||||||||
Cisco Systems, Inc. | 1,267,520 | 59,117 | |||||||||
Motorola Solutions, Inc. | 49,979 | 7,004 | |||||||||
Palo Alto Networks, Inc. (a) (c) | 28,044 | 6,441 | |||||||||
76,481 | |||||||||||
Consumer Discretionary (11.3%): | |||||||||||
Advance Auto Parts, Inc. | 20,307 | 2,893 | |||||||||
Amazon.com, Inc. (a) | 133,970 | 369,599 | |||||||||
AutoZone, Inc. (a) | 6,935 | 7,823 | |||||||||
Best Buy Co., Inc. | 61,219 | 5,343 | |||||||||
Booking Holdings, Inc. (a) | 12,158 | 19,360 | |||||||||
Bright Horizons Family Solutions, Inc. (a) | 16,773 | 1,966 | |||||||||
Burlington Stores, Inc. (a) | 17,062 | 3,360 | |||||||||
CarMax, Inc. (a) (b) | 42,684 | 3,822 | |||||||||
Carnival Corp. (b) | 149,706 | 2,458 |
See notes to financial statements.
4
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Carvana Co. (a) | 3,133 | $ | 377 | ||||||||
Chewy, Inc. Class A (a) (b) | 15,227 | 680 | |||||||||
Chipotle Mexican Grill, Inc. (a) | 8,285 | 8,719 | |||||||||
D.R. Horton, Inc. | 101,092 | 5,606 | |||||||||
Darden Restaurants, Inc. | 36,527 | 2,768 | |||||||||
Dollar General Corp. | 67,612 | 12,881 | |||||||||
Dollar Tree, Inc. (a) | 61,471 | 5,697 | |||||||||
Domino's Pizza, Inc. | 10,013 | 3,699 | |||||||||
eBay, Inc. | 208,721 | 10,947 | |||||||||
Expedia Group, Inc. | 39,650 | 3,259 | |||||||||
Ford Motor Co. | 1,156,193 | 7,030 | |||||||||
General Motors Co. Class C | 366,294 | 9,267 | |||||||||
Genuine Parts Co. | 42,851 | 3,726 | |||||||||
Hasbro, Inc. | 36,801 | 2,758 | |||||||||
Hilton Worldwide Holdings, Inc. | 70,091 | 5,148 | |||||||||
Las Vegas Sands Corp. (c) | 103,774 | 4,726 | |||||||||
Lennar Corp. Class A | 77,947 | 4,803 | |||||||||
Lowe's Cos., Inc. | 219,492 | 29,658 | |||||||||
Marriott International, Inc. Class A | 82,996 | 7,115 | |||||||||
McDonald's Corp. | 204,416 | 37,709 | |||||||||
MGM Resorts International | 143,387 | 2,409 | |||||||||
Nike, Inc. Class B | 378,367 | 37,099 | |||||||||
NVR, Inc. (a) | 1,082 | 3,526 | |||||||||
O'Reilly Automotive, Inc. (a) | 22,282 | 9,396 | |||||||||
PulteGroup, Inc. | 79,650 | 2,710 | |||||||||
Roku, Inc. (a) | 5,722 | 667 | |||||||||
Ross Stores, Inc. | 96,579 | 8,232 | |||||||||
Royal Caribbean Cruises Ltd. (b) | 50,285 | 2,529 | |||||||||
Starbucks Corp. | 343,278 | 25,262 | |||||||||
Target Corp. (c) | 150,103 | 18,002 | |||||||||
Tesla, Inc. (a) | 40,441 | 43,669 | |||||||||
The Home Depot, Inc. | 322,869 | 80,882 | |||||||||
The TJX Cos., Inc. | 359,599 | 18,181 | |||||||||
Tiffany & Co. | 34,507 | 4,208 | |||||||||
Tractor Supply Co. | 34,346 | 4,526 | |||||||||
Ulta Beauty, Inc. (a) | 16,905 | 3,439 | |||||||||
VF Corp. | 101,987 | 6,215 | |||||||||
Wynn Resorts Ltd. | 25,224 | 1,879 | |||||||||
Yum! Brands, Inc. | 76,088 | 6,613 | |||||||||
862,641 | |||||||||||
Consumer Staples (7.1%): | |||||||||||
Altria Group, Inc. | 557,876 | 21,897 | |||||||||
Archer-Daniels-Midland Co. | 159,737 | 6,374 | |||||||||
Brown-Forman Corp. Class B | 78,567 | 5,002 | |||||||||
Campbell Soup Co. | 63,974 | 3,175 | |||||||||
Church & Dwight Co., Inc. | 68,377 | 5,286 | |||||||||
Colgate-Palmolive Co. | 249,007 | 18,242 | |||||||||
Conagra Brands, Inc. | 132,366 | 4,655 | |||||||||
Constellation Brands, Inc. Class A | 49,968 | 8,742 | |||||||||
Costco Wholesale Corp. | 128,358 | 38,919 |
See notes to financial statements.
5
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
General Mills, Inc. | 180,046 | $ | 11,100 | ||||||||
Hormel Foods Corp. (b) | 88,560 | 4,275 | |||||||||
Kellogg Co. | 81,212 | 5,365 | |||||||||
Keurig Dr Pepper, Inc. | 97,824 | 2,778 | |||||||||
Kimberly-Clark Corp. | 102,231 | 14,450 | |||||||||
Lamb Weston Holdings, Inc. | 38,764 | 2,478 | |||||||||
McCormick & Co., Inc. | 29,398 | 5,274 | |||||||||
Molson Coors Beverage Co. Class B | 40,379 | 1,387 | |||||||||
Mondelez International, Inc. Class A | 419,499 | 21,449 | |||||||||
Monster Beverage Corp. (a) | 151,417 | 10,496 | |||||||||
PepsiCo, Inc. | 416,523 | 55,089 | |||||||||
Philip Morris International, Inc. | 462,525 | 32,405 | |||||||||
Sysco Corp. | 149,177 | 8,154 | |||||||||
The Clorox Co. | 37,407 | 8,206 | |||||||||
The Coca-Cola Co. | 1,235,026 | 55,181 | |||||||||
The Estee Lauder Cos., Inc. Class A | 60,292 | 11,376 | |||||||||
The Hershey Co. | 42,067 | 5,453 | |||||||||
The J.M. Smucker Co. | 33,873 | 3,584 | |||||||||
The Kraft Heinz Co. | 204,630 | 6,526 | |||||||||
The Kroger Co. | 208,683 | 7,064 | |||||||||
The Procter & Gamble Co. | 727,534 | 86,991 | |||||||||
Tyson Foods, Inc. Class A | 73,679 | 4,399 | |||||||||
Walgreens Boots Alliance, Inc. | 216,215 | 9,165 | |||||||||
Walmart, Inc. | 447,720 | 53,628 | |||||||||
538,565 | |||||||||||
Electronic Equipment, Instruments & Components (0.4%): | |||||||||||
Amphenol Corp. Class A | 77,606 | 7,435 | |||||||||
CDW Corp. | 42,723 | 4,964 | |||||||||
Corning, Inc. | 228,434 | 5,916 | |||||||||
Keysight Technologies, Inc. (a) | 51,420 | 5,182 | |||||||||
Trimble, Inc. (a) | 64,718 | 2,795 | |||||||||
Zebra Technologies Corp. (a) | 14,931 | 3,822 | |||||||||
30,114 | |||||||||||
Energy (2.7%): | |||||||||||
Apache Corp. | 113,302 | 1,530 | |||||||||
Baker Hughes Co. | 202,278 | 3,113 | |||||||||
Cheniere Energy, Inc. (a) | 75,682 | 3,657 | |||||||||
Chevron Corp. | 560,461 | 50,010 | |||||||||
Concho Resources, Inc. | 41,024 | 2,113 | |||||||||
ConocoPhillips | 318,550 | 13,386 | |||||||||
Diamondback Energy, Inc. | 36,903 | 1,543 | |||||||||
EOG Resources, Inc. | 150,818 | 7,641 | |||||||||
Exxon Mobil Corp. | 1,229,213 | 54,970 | |||||||||
Halliburton Co. | 263,356 | 3,418 | |||||||||
Hess Corp. (b) | 76,675 | 3,973 | |||||||||
Kinder Morgan, Inc. | 636,014 | 9,648 | |||||||||
Marathon Petroleum Corp. | 195,206 | 7,297 | |||||||||
Occidental Petroleum Corp. | 270,183 | 4,944 | |||||||||
ONEOK, Inc. | 121,638 | 4,041 |
See notes to financial statements.
6
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Phillips 66 | 131,088 | $ | 9,425 | ||||||||
Pioneer Natural Resources Co. | 46,366 | 4,530 | |||||||||
Schlumberger Ltd. | 407,846 | 7,500 | |||||||||
The Williams Cos., Inc. | 360,364 | 6,854 | |||||||||
Valero Energy Corp. | 121,102 | 7,123 | |||||||||
206,716 | |||||||||||
Financials (10.1%): | |||||||||||
Aflac, Inc. | 197,255 | 7,107 | |||||||||
AGNC Investment Corp. | 160,847 | 2,075 | |||||||||
Alleghany Corp. | 4,115 | 2,013 | |||||||||
Ally Financial, Inc. | 107,303 | 2,128 | |||||||||
American Express Co. | 206,038 | 19,615 | |||||||||
American International Group, Inc. | 250,392 | 7,807 | |||||||||
Ameriprise Financial, Inc. | 36,339 | 5,452 | |||||||||
Annaly Capital Management, Inc. | 411,328 | 2,698 | |||||||||
Arch Capital Group Ltd. (a) | 99,983 | 2,865 | |||||||||
Arthur J. Gallagher & Co. | 56,324 | 5,491 | |||||||||
Bank of America Corp. | 2,439,903 | 57,948 | |||||||||
Berkshire Hathaway, Inc. Class B (a) | 652,700 | 116,513 | |||||||||
BlackRock, Inc. Class A | 38,022 | 20,687 | |||||||||
Brown & Brown, Inc. | 68,957 | 2,811 | |||||||||
Capital One Financial Corp. | 135,244 | 8,465 | |||||||||
Cboe Global Markets, Inc. | 30,164 | 2,814 | |||||||||
Cincinnati Financial Corp. | 45,117 | 2,889 | |||||||||
Citigroup, Inc. | 611,795 | 31,263 | |||||||||
Citizens Financial Group, Inc. | 126,722 | 3,198 | |||||||||
CME Group, Inc. | 84,985 | 13,813 | |||||||||
CNA Financial Corp. | 9,433 | 303 | |||||||||
Discover Financial Services | 86,143 | 4,315 | |||||||||
E*TRADE Financial Corp. | 62,166 | 3,092 | |||||||||
Equitable Holdings, Inc. | 98,237 | 1,895 | |||||||||
Everest Re Group Ltd. | 9,603 | 1,980 | |||||||||
FactSet Research Systems, Inc. | 10,771 | 3,538 | |||||||||
Fidelity National Financial, Inc. | 84,094 | 2,578 | |||||||||
Fifth Third Bancorp | 197,966 | 3,817 | |||||||||
First Republic Bank | 50,879 | 5,393 | |||||||||
Franklin Resources, Inc. (b) | 90,779 | 1,904 | |||||||||
Globe Life, Inc. | 29,934 | 2,222 | |||||||||
Huntington Bancshares, Inc. | 298,055 | 2,693 | |||||||||
Intercontinental Exchange, Inc. | 164,274 | 15,047 | |||||||||
JPMorgan Chase & Co. | 895,450 | 84,226 | |||||||||
KeyCorp | 289,731 | 3,529 | |||||||||
Loews Corp. | 72,923 | 2,501 | |||||||||
M&T Bank Corp. | 36,480 | 3,793 | |||||||||
Markel Corp. (a) | 4,135 | 3,817 | |||||||||
MarketAxess Holdings, Inc. | 10,542 | 5,281 | |||||||||
Marsh & McLennan Cos., Inc. | 140,269 | 15,061 | |||||||||
MetLife, Inc. | 243,776 | 8,903 | |||||||||
Moody's Corp. | 51,547 | 14,161 | |||||||||
Morgan Stanley | 378,406 | 18,277 |
See notes to financial statements.
7
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
MSCI, Inc. | 24,178 | $ | 8,071 | ||||||||
Nasdaq, Inc. | 33,700 | 4,026 | |||||||||
Northern Trust Corp. | 62,457 | 4,955 | |||||||||
Principal Financial Group, Inc. (b) | 70,964 | 2,948 | |||||||||
Prudential Financial, Inc. | 118,578 | 7,221 | |||||||||
Raymond James Financial, Inc. | 38,971 | 2,682 | |||||||||
Regions Financial Corp. | 288,093 | 3,204 | |||||||||
S&P Global, Inc. | 70,034 | 23,075 | |||||||||
State Street Corp. | 98,983 | 6,290 | |||||||||
SVB Financial Group (a) | 13,836 | 2,982 | |||||||||
Synchrony Financial | 151,249 | 3,352 | |||||||||
T. Rowe Price Group, Inc. | 67,590 | 8,347 | |||||||||
TD Ameritrade Holding Corp. | 87,174 | 3,171 | |||||||||
The Allstate Corp. | 94,297 | 9,146 | |||||||||
The Bank of New York Mellon Corp. | 254,615 | 9,841 | |||||||||
The Blackstone Group, Inc. Class A | 201,095 | 11,394 | |||||||||
The Charles Schwab Corp. | 366,136 | 12,353 | |||||||||
The Goldman Sachs Group, Inc. | 103,234 | 20,401 | |||||||||
The Hartford Financial Services Group, Inc. | 106,361 | 4,100 | |||||||||
The PNC Financial Services Group, Inc. | 127,362 | 13,400 | |||||||||
The Progressive Corp. | 175,705 | 14,076 | |||||||||
The Travelers Cos., Inc. | 75,901 | 8,657 | |||||||||
Tradeweb Markets, Inc. Class A | 12,849 | 747 | |||||||||
Truist Financial Corp. | 404,506 | 15,189 | |||||||||
U.S. Bancorp | 428,384 | 15,773 | |||||||||
W.R. Berkley Corp. | 37,839 | 2,168 | |||||||||
Wells Fargo & Co. | 1,191,939 | 30,514 | |||||||||
774,061 | |||||||||||
Health Care (14.0%): | |||||||||||
Abbott Laboratories | 531,002 | 48,549 | |||||||||
AbbVie, Inc. | 523,481 | 51,395 | |||||||||
Agilent Technologies, Inc. | 89,767 | 7,933 | |||||||||
Alexion Pharmaceuticals, Inc. (a) | 62,803 | 7,049 | |||||||||
Align Technology, Inc. (a) | 21,902 | 6,011 | |||||||||
Alnylam Pharmaceuticals, Inc. (a) | 24,672 | 3,654 | |||||||||
AmerisourceBergen Corp. | 46,278 | 4,663 | |||||||||
Amgen, Inc. | 165,437 | 39,020 | |||||||||
Anthem, Inc. | 75,684 | 19,903 | |||||||||
Baxter International, Inc. | 152,751 | 13,152 | |||||||||
Becton, Dickinson & Co. | 84,244 | 20,157 | |||||||||
Biogen, Inc. (a) | 43,316 | 11,589 | |||||||||
BioMarin Pharmaceutical, Inc. (a) | 41,715 | 5,145 | |||||||||
Bio-Rad Laboratories, Inc. Class A (a) | 5,715 | 2,580 | |||||||||
Boston Scientific Corp. (a) | 384,705 | 13,507 | |||||||||
Bristol-Myers Squibb Co. | 679,252 | 39,940 | |||||||||
Cardinal Health, Inc. | 87,653 | 4,575 | |||||||||
Centene Corp. (a) | 144,572 | 9,188 | |||||||||
Cerner Corp. | 91,364 | 6,263 | |||||||||
Cigna Corp. | 101,439 | 19,035 | |||||||||
CVS Health Corp. | 371,733 | 24,151 |
See notes to financial statements.
8
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Danaher Corp. | 196,606 | $ | 34,766 | ||||||||
DaVita, Inc. (a) | 26,557 | 2,102 | |||||||||
DENTSPLY SIRONA, Inc. | 61,614 | 2,715 | |||||||||
DexCom, Inc. (a) | 25,083 | 10,169 | |||||||||
Edwards Lifesciences Corp. (a) | 186,021 | 12,856 | |||||||||
Elanco Animal Health, Inc. (a) | 100,815 | 2,162 | |||||||||
Eli Lilly & Co. | 266,130 | 43,693 | |||||||||
Exact Sciences Corp. (a) | 40,221 | 3,497 | |||||||||
Gilead Sciences, Inc. (c) | 344,849 | 26,533 | |||||||||
HCA Healthcare, Inc. | 77,881 | 7,559 | |||||||||
Hologic, Inc. (a) | 62,826 | 3,581 | |||||||||
Humana, Inc. | 35,928 | 13,931 | |||||||||
IDEXX Laboratories, Inc. (a) | 23,886 | 7,886 | |||||||||
Illumina, Inc. (a) | 38,555 | 14,279 | |||||||||
Incyte Corp. (a) | 57,699 | 5,999 | |||||||||
Insulet Corp. (a) | 13,933 | 2,707 | |||||||||
Intuitive Surgical, Inc. (a) | 31,323 | 17,849 | |||||||||
IQVIA Holdings, Inc. (a) | 56,723 | 8,048 | |||||||||
Johnson & Johnson (c) | 765,921 | 107,711 | |||||||||
Laboratory Corp. of America Holdings (a) | 29,179 | 4,847 | |||||||||
McKesson Corp. | 48,588 | 7,454 | |||||||||
Merck & Co., Inc. | 757,727 | 58,595 | |||||||||
Mettler-Toledo International, Inc. (a) | 6,195 | 4,990 | |||||||||
PerkinElmer, Inc. | 27,102 | 2,658 | |||||||||
Pfizer, Inc. | 1,667,543 | 54,529 | |||||||||
Quest Diagnostics, Inc. | 39,723 | 4,527 | |||||||||
Regeneron Pharmaceuticals, Inc. (a) | 20,267 | 12,640 | |||||||||
ResMed, Inc. | 40,686 | 7,812 | |||||||||
Seattle Genetics, Inc. (a) | 45,948 | 7,807 | |||||||||
Stryker Corp. | 103,198 | 18,595 | |||||||||
Teleflex, Inc. | 12,176 | 4,432 | |||||||||
The Cooper Cos., Inc. | 14,493 | 4,111 | |||||||||
Thermo Fisher Scientific, Inc. | 116,067 | 42,056 | |||||||||
UnitedHealth Group, Inc. | 266,719 | 78,669 | |||||||||
Universal Health Services, Inc. Class B | 23,616 | 2,194 | |||||||||
Varian Medical Systems, Inc. (a) | 26,975 | 3,305 | |||||||||
Veeva Systems, Inc. Class A (a) | 30,840 | 7,229 | |||||||||
Vertex Pharmaceuticals, Inc. (a) | 63,906 | 18,553 | |||||||||
Waters Corp. (a) | 16,824 | 3,035 | |||||||||
West Pharmaceutical Services, Inc. | 19,537 | 4,438 | |||||||||
Zimmer Biomet Holdings, Inc. | 62,081 | 7,410 | |||||||||
Zoetis, Inc. | 142,576 | 19,539 | |||||||||
1,064,927 | |||||||||||
Industrials (7.7%): | |||||||||||
3M Co. | 172,672 | 26,935 | |||||||||
AMETEK, Inc. | 64,525 | 5,767 | |||||||||
C.H. Robinson Worldwide, Inc. (b) | 39,559 | 3,128 | |||||||||
Caterpillar, Inc. | 157,347 | 19,904 | |||||||||
Cintas Corp. | 28,605 | 7,619 | |||||||||
Copart, Inc. (a) | 68,254 | 5,683 |
See notes to financial statements.
9
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
CoStar Group, Inc. (a) (c) | 11,069 | $ | 7,866 | ||||||||
CSX Corp. | 208,021 | 14,507 | |||||||||
Cummins, Inc. | 43,821 | 7,592 | |||||||||
Deere & Co. | 88,976 | 13,983 | |||||||||
Delta Air Lines, Inc. | 179,380 | 5,032 | |||||||||
Dover Corp. | 40,483 | 3,909 | |||||||||
Eaton Corp. PLC | 120,079 | 10,505 | |||||||||
Emerson Electric Co. | 173,696 | 10,774 | |||||||||
Equifax, Inc. | 31,069 | 5,340 | |||||||||
Expeditors International of Washington, Inc. | 49,435 | 3,759 | |||||||||
Fastenal Co. | 170,148 | 7,289 | |||||||||
FedEx Corp. | 71,822 | 10,071 | |||||||||
Fortive Corp. | 85,156 | 5,762 | |||||||||
General Dynamics Corp. | 70,706 | 10,568 | |||||||||
General Electric Co. | 2,349,444 | 16,047 | |||||||||
HEICO Corp. Class A | 20,439 | 1,660 | |||||||||
Honeywell International, Inc. | 206,257 | 29,823 | |||||||||
Howmet Aerospace, Inc. (a) | 130,917 | 2,075 | |||||||||
IDEX Corp. | 20,965 | 3,313 | |||||||||
Illinois Tool Works, Inc. | 84,858 | 14,837 | |||||||||
J.B. Hunt Transport Services, Inc. | 22,661 | 2,727 | |||||||||
Jacobs Engineering Group, Inc. | 38,645 | 3,277 | |||||||||
Johnson Controls International PLC | 271,560 | 9,271 | |||||||||
Kansas City Southern | 28,225 | 4,214 | |||||||||
L3Harris Technologies, Inc. | 64,121 | 10,879 | |||||||||
Lockheed Martin Corp. | 83,300 | 30,398 | |||||||||
Lyft, Inc. Class A (a) | 10,665 | 352 | |||||||||
Masco Corp. | 79,179 | 3,976 | |||||||||
Norfolk Southern Corp. | 75,285 | 13,218 | |||||||||
Northrop Grumman Corp. | 47,410 | 14,576 | |||||||||
Old Dominion Freight Line, Inc. | 31,681 | 5,373 | |||||||||
PACCAR, Inc. | 103,786 | 7,768 | |||||||||
Parker-Hannifin Corp. | 38,085 | 6,980 | |||||||||
Raytheon Technologies Corp. | 450,388 | 27,753 | |||||||||
Republic Services, Inc. (c) | 60,351 | 4,952 | |||||||||
Rockwell Automation, Inc. | 34,404 | 7,328 | |||||||||
Rollins, Inc. | 49,715 | 2,107 | |||||||||
Roper Technologies, Inc. | 28,371 | 11,015 | |||||||||
Southwest Airlines Co. | 163,895 | 5,602 | |||||||||
Stanley Black & Decker, Inc. | 47,909 | 6,678 | |||||||||
Teledyne Technologies, Inc. (a) | 9,616 | 2,990 | |||||||||
Textron, Inc. | 56,786 | 1,869 | |||||||||
The Boeing Co. | 169,409 | 31,053 | |||||||||
TransDigm Group, Inc. | 13,669 | 6,042 | |||||||||
TransUnion | 49,780 | 4,333 | |||||||||
Uber Technologies, Inc. (a) | 476,703 | 14,816 | |||||||||
Union Pacific Corp. | 197,271 | 33,353 | |||||||||
United Airlines Holdings, Inc. (a) | 80,763 | 2,795 | |||||||||
United Parcel Service, Inc. Class B | 201,609 | 22,415 | |||||||||
United Rentals, Inc. (a) | 21,401 | 3,190 |
See notes to financial statements.
10
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Verisk Analytics, Inc. | 48,710 | $ | 8,290 | ||||||||
W.W. Grainger, Inc. | 15,375 | 4,830 | |||||||||
Waste Management, Inc. | 126,691 | 13,418 | |||||||||
Westinghouse Air Brake Technologies Corp. | 53,516 | 3,081 | |||||||||
Xylem, Inc. | 54,010 | 3,508 | |||||||||
588,175 | |||||||||||
IT Services (5.5%): | |||||||||||
Akamai Technologies, Inc. (a) | 48,714 | 5,217 | |||||||||
Automatic Data Processing, Inc. | 129,017 | 19,209 | |||||||||
Black Knight, Inc. (a) | 30,319 | 2,200 | |||||||||
Booz Allen Hamilton Holdings Corp. (b) | 36,178 | 2,814 | |||||||||
Broadridge Financial Solutions, Inc. | 34,105 | 4,304 | |||||||||
Cognizant Technology Solutions Corp. Class A | 158,864 | 9,027 | |||||||||
EPAM Systems, Inc. (a) | 16,527 | 4,165 | |||||||||
Fidelity National Information Services, Inc. | 181,567 | 24,346 | |||||||||
Fiserv, Inc. (a) | 156,551 | 15,282 | |||||||||
FleetCor Technologies, Inc. (a) | 21,185 | 5,329 | |||||||||
Gartner, Inc. (a) | 26,488 | 3,214 | |||||||||
Global Payments, Inc. | 76,558 | 12,986 | |||||||||
GoDaddy, Inc. Class A (a) | 19,472 | 1,428 | |||||||||
International Business Machines Corp. | 260,931 | 31,513 | |||||||||
Jack Henry & Associates, Inc. | 20,579 | 3,787 | |||||||||
Leidos Holdings, Inc. | 41,295 | 3,868 | |||||||||
Mastercard, Inc. Class A | 269,602 | 79,721 | |||||||||
Okta, Inc. (a) | 11,025 | 2,208 | |||||||||
Paychex, Inc. | 94,083 | 7,127 | |||||||||
PayPal Holdings, Inc. (a) | 348,769 | 60,766 | |||||||||
Square, Inc. Class A (a) | 70,805 | 7,430 | |||||||||
The Western Union Co. | 107,771 | 2,330 | |||||||||
Twilio, Inc. Class A (a) | 22,571 | 4,953 | |||||||||
VeriSign, Inc. (a) | 30,668 | 6,343 | |||||||||
Visa, Inc. Class A (b) | 528,159 | 102,024 | |||||||||
421,591 | |||||||||||
Materials (1.8%): | |||||||||||
Air Products & Chemicals, Inc. | 65,602 | 15,840 | |||||||||
Avery Dennison Corp. | 22,912 | 2,614 | |||||||||
Ball Corp. | 89,623 | 6,228 | |||||||||
Celanese Corp. | 32,877 | 2,839 | |||||||||
Corteva, Inc. | 224,658 | 6,018 | |||||||||
Crown Holdings, Inc. (a) | 37,876 | 2,467 | |||||||||
Dow, Inc. | 222,365 | 9,064 | |||||||||
DuPont de Nemours, Inc. | 217,965 | 11,580 | |||||||||
Ecolab, Inc. | 79,657 | 15,848 | |||||||||
FMC Corp. | 34,360 | 3,423 | |||||||||
Freeport-McMoRan, Inc. | 431,289 | 4,990 | |||||||||
International Flavors & Fragrances, Inc. (b) | 25,999 | 3,184 | |||||||||
International Paper Co. | 109,296 | 3,848 | |||||||||
Martin Marietta Materials, Inc. | 18,685 | 3,860 | |||||||||
Newmont Corp. | 235,861 | 14,562 |
See notes to financial statements.
11
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Nucor Corp. | 80,884 | $ | 3,349 | ||||||||
PPG Industries, Inc. | 68,587 | 7,274 | |||||||||
Southern Copper Corp. | 26,871 | 1,069 | |||||||||
The Sherwin-Williams Co. | 26,110 | 15,088 | |||||||||
Vulcan Materials Co. | 38,501 | 4,460 | |||||||||
137,605 | |||||||||||
Real Estate (3.2%): | |||||||||||
Alexandria Real Estate Equities, Inc. | 37,485 | 6,082 | |||||||||
American Tower Corp. | 133,079 | 34,406 | |||||||||
AvalonBay Communities, Inc. | 44,471 | 6,877 | |||||||||
Boston Properties, Inc. | 45,168 | 4,082 | |||||||||
Camden Property Trust | 30,772 | 2,807 | |||||||||
CBRE Group, Inc. Class A (a) | 99,557 | 4,502 | |||||||||
Crown Castle International Corp. | 125,107 | 20,937 | |||||||||
Digital Realty Trust, Inc. | 84,786 | 12,049 | |||||||||
Duke Realty Corp. | 116,408 | 4,120 | |||||||||
Equinix, Inc. | 27,970 | 19,643 | |||||||||
Equity LifeStyle Properties, Inc. | 57,558 | 3,596 | |||||||||
Equity Residential | 110,535 | 6,502 | |||||||||
Essex Property Trust, Inc. | 20,672 | 4,737 | |||||||||
Extra Space Storage, Inc. | 40,791 | 3,768 | |||||||||
Gaming and Leisure Properties, Inc. | 60,565 | 2,096 | |||||||||
Healthpeak Properties, Inc. | 170,092 | 4,688 | |||||||||
Host Hotels & Resorts, Inc. | 222,765 | 2,404 | |||||||||
Invitation Homes, Inc. | 161,519 | 4,447 | |||||||||
Medical Properties Trust, Inc. | 150,256 | 2,825 | |||||||||
Mid-America Apartment Communities, Inc. | 36,135 | 4,144 | |||||||||
Prologis, Inc. | 233,389 | 21,782 | |||||||||
Public Storage | 49,711 | 9,539 | |||||||||
Realty Income Corp. | 100,922 | 6,005 | |||||||||
Regency Centers Corp. | 50,386 | 2,312 | |||||||||
SBA Communications Corp. | 33,157 | 9,878 | |||||||||
Simon Property Group, Inc. | 96,618 | 6,607 | |||||||||
Sun Communities, Inc. | 31,053 | 4,213 | |||||||||
UDR, Inc. | 93,183 | 3,483 | |||||||||
Ventas, Inc. | 117,890 | 4,317 | |||||||||
VEREIT, Inc. | 323,567 | 2,080 | |||||||||
VICI Properties, Inc. | 160,205 | 3,235 | |||||||||
Vornado Realty Trust | 54,957 | 2,100 | |||||||||
W.P. Carey, Inc. | 54,479 | 3,685 | |||||||||
Welltower, Inc. | 131,922 | 6,827 | |||||||||
Weyerhaeuser Co. | 209,861 | 4,713 | |||||||||
245,488 | |||||||||||
Semiconductors & Semiconductor Equipment (4.7%): | |||||||||||
Advanced Micro Devices, Inc. (a) | 351,588 | 18,497 | |||||||||
Analog Devices, Inc. | 101,286 | 12,422 | |||||||||
Applied Materials, Inc. | 257,748 | 15,581 | |||||||||
Broadcom, Inc. | 93,486 | 29,505 | |||||||||
Intel Corp. | 1,271,033 | 76,046 |
See notes to financial statements.
12
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
KLA Corp. | 40,176 | $ | 7,813 | ||||||||
Lam Research Corp. | 40,366 | 13,057 | |||||||||
Marvell Technology Group Ltd. | 153,470 | 5,381 | |||||||||
Maxim Integrated Products, Inc. | 69,087 | 4,187 | |||||||||
Microchip Technology, Inc. (b) | 68,997 | 7,266 | |||||||||
Micron Technology, Inc. (a) | 333,875 | 17,201 | |||||||||
NVIDIA Corp. | 178,791 | 67,924 | |||||||||
Qorvo, Inc. (a) | 31,180 | 3,446 | |||||||||
QUALCOMM, Inc. | 337,700 | 30,802 | |||||||||
Skyworks Solutions, Inc. | 46,920 | 5,999 | |||||||||
Teradyne, Inc. | 47,668 | 4,028 | |||||||||
Texas Instruments, Inc. | 275,512 | 34,982 | |||||||||
Xilinx, Inc. | 68,386 | 6,729 | |||||||||
360,866 | |||||||||||
Software (9.9%): | |||||||||||
Adobe, Inc. (a) | 141,590 | 61,635 | |||||||||
ANSYS, Inc. (a) | 25,695 | 7,496 | |||||||||
Autodesk, Inc. (a) | 60,950 | 14,579 | |||||||||
Cadence Design Systems, Inc. (a) | 82,929 | 7,958 | |||||||||
Ceridian HCM Holding, Inc. (a) | 18,330 | 1,453 | |||||||||
Citrix Systems, Inc. | 35,499 | 5,251 | |||||||||
Coupa Software, Inc. (a) | 18,321 | 5,076 | |||||||||
Crowdstrike Holdings, Inc. Class A (a) | 6,143 | 616 | |||||||||
Datadog, Inc. Class A (a) | 7,568 | 658 | |||||||||
DocuSign, Inc. (a) | 50,924 | 8,770 | |||||||||
Fair Isaac Corp. (a) | 8,340 | 3,486 | |||||||||
Fortinet, Inc. (a) | 42,908 | 5,890 | |||||||||
Intuit, Inc. | 70,866 | 20,990 | |||||||||
Microsoft Corp. (c) | 2,204,634 | 448,665 | |||||||||
NortonLifeLock, Inc. | 154,489 | 3,063 | |||||||||
Oracle Corp. | 637,774 | 35,250 | |||||||||
Paycom Software, Inc. (a) | 14,337 | 4,441 | |||||||||
RingCentral, Inc. Class A (a) | 19,710 | 5,617 | |||||||||
Salesforce.com, Inc. (a) | 256,242 | 48,002 | |||||||||
ServiceNow, Inc. (a) (c) | 54,838 | 22,213 | |||||||||
Slack Technologies, Inc. Class A (a) (b) | 85,501 | 2,658 | |||||||||
Splunk, Inc. (a) | 42,672 | 8,479 | |||||||||
SS&C Technologies Holdings, Inc. | 71,358 | 4,030 | |||||||||
Synopsys, Inc. (a) | 40,978 | 7,991 | |||||||||
The Trade Desk, Inc. Class A (a) | 9,024 | 3,668 | |||||||||
Tyler Technologies, Inc. (a) | 11,308 | 3,922 | |||||||||
VMware, Inc. Class A (a) (b) | 23,776 | 3,682 | |||||||||
Workday, Inc. Class A (a) | 28,961 | 5,426 | |||||||||
Zoom Video Communications, Inc. Class A (a) | 7,131 | 1,808 | |||||||||
752,773 | |||||||||||
Technology Hardware, Storage & Peripherals (6.4%): | |||||||||||
Apple, Inc. | 1,287,457 | 469,664 | |||||||||
Dell Technologies, Inc. Class C (a) | 65,547 | 3,601 | |||||||||
Hewlett Packard Enterprise Co. | 361,321 | 3,516 |
See notes to financial statements.
13
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
HP, Inc. | 415,657 | $ | 7,245 | ||||||||
NetApp, Inc. | 48,225 | 2,140 | |||||||||
Western Digital Corp. | 88,075 | 3,888 | |||||||||
490,054 | |||||||||||
Utilities (3.0%): | |||||||||||
Alliant Energy Corp. | 73,323 | 3,508 | |||||||||
Ameren Corp. | 70,215 | 4,940 | |||||||||
American Electric Power Co., Inc. (c) | 147,206 | 11,723 | |||||||||
American Water Works Co., Inc. | 54,343 | 6,992 | |||||||||
Atmos Energy Corp. | 35,945 | 3,579 | |||||||||
Avangrid, Inc. (b) | 17,576 | 738 | |||||||||
CenterPoint Energy, Inc. | 148,024 | 2,764 | |||||||||
CMS Energy Corp. | 79,592 | 4,650 | |||||||||
Consolidated Edison, Inc. (c) | 98,185 | 7,062 | |||||||||
Dominion Energy, Inc. | 251,940 | 20,453 | |||||||||
DTE Energy Co. | 50,518 | 5,431 | |||||||||
Duke Energy Corp. (c) | 220,600 | 17,624 | |||||||||
Edison International | 100,320 | 5,448 | |||||||||
Entergy Corp. | 59,455 | 5,577 | |||||||||
Essential Utilities, Inc. | 65,043 | 2,747 | |||||||||
Evergy, Inc. (c) | 67,350 | 3,993 | |||||||||
Eversource Energy (c) | 99,936 | 8,322 | |||||||||
Exelon Corp. | 292,514 | 10,615 | |||||||||
FirstEnergy Corp. | 160,921 | 6,241 | |||||||||
NextEra Energy, Inc. (c) | 145,385 | 34,917 | |||||||||
NiSource, Inc. | 95,561 | 2,173 | |||||||||
Pinnacle West Capital Corp. | 32,348 | 2,371 | |||||||||
PPL Corp. | 228,351 | 5,901 | |||||||||
Public Service Enterprise Group, Inc. | 150,189 | 7,383 | |||||||||
Sempra Energy | 73,027 | 8,561 | |||||||||
The AES Corp. | 174,390 | 2,527 | |||||||||
The Southern Co. (c) | 316,995 | 16,436 | |||||||||
Vistra Corp. | 143,582 | 2,674 | |||||||||
WEC Energy Group, Inc. (c) | 92,699 | 8,125 | |||||||||
Xcel Energy, Inc. (c) | 136,081 | 8,505 | |||||||||
231,980 | |||||||||||
Total Common Stocks (Cost $3,076,401) | 7,605,136 | ||||||||||
Rights (0.0%) (d) | |||||||||||
Communication Services (0.0%): (d) | |||||||||||
T-Mobile U.S., Inc. Expires 7/28/20 (a) | 125,296 | 21 | |||||||||
Total Rights (Cost $0) | 21 |
See notes to financial statements.
14
USAA Mutual Funds Trust USAA 500 Index Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Collateral for Securities Loaned^ (0.7%) | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (e) | 56,345,664 | $ | 56,346 | ||||||||
Total Collateral for Securities Loaned (Cost $56,346) | 56,346 | ||||||||||
Total Investments (Cost $3,132,747) — 100.3% | 7,661,503 | ||||||||||
Liabilities in excess of other assets — (0.3)% | (20,847 | ) | |||||||||
NET ASSETS — 100.00% | $ | 7,640,656 |
^ Purchased with cash collateral from securities on loan.
(a) Non-income producing security.
(b) All or a portion of this security is on loan.
(c) All or a portion of this security has been segregated as collateral for derivative instruments.
(d) Amount represents less than 0.05% of net assets.
(e) Rate disclosed is the daily yield on June 30, 2020.
PLC — Public Limited Company
Futures Contracts Purchased
(Amounts not in thousands)
Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
E-Mini S&P 500 Futures | 216 | 9/18/20 | $ | 32,696,367 | $ | 33,374,160 | $ | 677,793 | |||||||||||||||
Total unrealized appreciation | $ | 677,793 | |||||||||||||||||||||
Total unrealized depreciation | — | ||||||||||||||||||||||
Total net unrealized appreciation (depreciation) | $ | 677,793 |
See notes to financial statements.
15
USAA Mutual Funds Trust | Statement of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA 500 Index Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $3,132,747) | $ | 7,661,503 | (a) | ||||
Cash and cash equivalents | 9,430 | ||||||
Deposits with brokers for futures contracts | 3,701 | ||||||
Receivables: | |||||||
Interest and dividends | 5,795 | ||||||
Capital shares issued | 3,914 | ||||||
Investments sold | 20,076 | ||||||
Variation margin on open futures contracts | 510 | ||||||
From Adviser | 237 | ||||||
Prepaid expenses | 97 | ||||||
Total Assets | 7,705,263 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 56,346 | ||||||
Capital shares redeemed | 6,758 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 629 | ||||||
Administration fees | 377 | ||||||
Custodian fees | 36 | ||||||
Transfer agent fees | 288 | ||||||
Compliance fees | 6 | ||||||
Other accrued expenses | 167 | ||||||
Total Liabilities | 64,607 | ||||||
Net Assets: | |||||||
Capital | 3,057,434 | ||||||
Total distributable earnings/(loss) | 4,583,222 | ||||||
Net Assets | $ | 7,640,656 | |||||
Net Assets | |||||||
Member Shares | $ | 3,411,800 | |||||
Reward Shares | 4,228,856 | ||||||
Total | $ | 7,640,656 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Member Shares | 79,731 | ||||||
Reward Shares | 98,775 | ||||||
Total | 178,506 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Member Shares | $ | 42.79 | |||||
Reward Shares | 42.81 |
(a) Includes $55,522 of securities on loan.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
16
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA 500 Index Fund | |||||||
Investment Income: | |||||||
Dividends | $ | 74,064 | |||||
Interest | 97 | ||||||
Securities lending (net of fees) | 131 | ||||||
Total Income | 74,292 | ||||||
Expenses: | |||||||
Investment advisory fees | 3,750 | ||||||
Administration fees — Member Shares | 987 | ||||||
Administration fees — Reward Shares | 1,263 | ||||||
Sub-Administration fees | 14 | ||||||
Custodian fees | 163 | ||||||
Transfer agent fees — Member Shares | 1,383 | ||||||
Transfer agent fees — Reward Shares | 183 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 25 | ||||||
Legal and audit fees | 40 | ||||||
State registration and filing fees | 108 | ||||||
Interfund lending fees | — | (a) | |||||
Other expenses | 206 | ||||||
Total Expenses | 8,146 | ||||||
Expenses waived/reimbursed by Adviser | (880 | ) | |||||
Net Expenses | 7,266 | ||||||
Net Investment Income (Loss) | 67,026 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 39,136 | ||||||
Net realized gains (losses) from futures contracts | (1,472 | ) | |||||
Net change in unrealized appreciation/depreciation on investment securities | (266,313 | ) | |||||
Net change in unrealized appreciation/depreciation on futures contracts | (137 | ) | |||||
Net realized/unrealized gains (losses) on investments | (228,786 | ) | |||||
Change in net assets resulting from operations | $ | (161,760 | ) |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
17
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA 500 Index Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 67,026 | $ | 135,019 | |||||||
Net realized gains (losses) from investments | 37,664 | 283,821 | |||||||||
Net change in unrealized appreciation/depreciation on investments | (266,450 | ) | 1,594,175 | ||||||||
Change in net assets resulting from operations | (161,760 | ) | 2,013,015 | ||||||||
Distributions to Shareholders: | |||||||||||
Member Shares | (27,334 | ) | (136,678 | ) | |||||||
Reward Shares | (36,683 | ) | (262,717 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (64,017 | ) | (399,395 | ) | |||||||
Change in net assets resulting from capital transactions | (283,126 | ) | (28,801 | ) | |||||||
Change in net assets | (508,903 | ) | 1,584,819 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 8,149,559 | 6,564,740 | |||||||||
End of period | $ | 7,640,656 | $ | 8,149,559 | |||||||
Capital Transactions: | |||||||||||
Member Shares | |||||||||||
Proceeds from shares issued | $ | 469,339 | $ | 521,545 | |||||||
Distributions reinvested | 26,966 | 174,935 | |||||||||
Cost of shares redeemed | (603,456 | ) | (779,152 | ) | |||||||
Total Member Shares | $ | (107,151 | ) | $ | (82,672 | ) | |||||
Reward Shares | |||||||||||
Proceeds from shares issued | $ | 336,162 | $ | 519,941 | |||||||
Distributions reinvested | 34,881 | 212,589 | |||||||||
Cost of shares redeemed | (547,018 | ) | (678,659 | ) | |||||||
Total Reward Shares | $ | (175,975 | ) | $ | 53,871 | ||||||
Change in net assets resulting from capital transactions | $ | (283,126 | ) | $ | (28,801 | ) | |||||
Share Transactions: | |||||||||||
Member Shares | |||||||||||
Issued | 11,710 | 12,769 | |||||||||
Reinvested | 719 | 4,088 | |||||||||
Redeemed | (14,720 | ) | (18,810 | ) | |||||||
Total Member Shares | (2,291 | ) | (1,953 | ) | |||||||
Reward Shares | |||||||||||
Issued | 8,090 | 12,496 | |||||||||
Reinvested | 931 | 4,967 | |||||||||
Redeemed | (13,675 | ) | (16,390 | ) | |||||||
Total Reward Shares | (4,654 | ) | 1,073 | ||||||||
Change in Shares | (6,945 | ) | (880 | ) |
See notes to financial statements.
18
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19
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
USAA 500 Index Fund | |||||||||||||||||||||||||||
Member Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 43.93 | 0.35 | (d) | (1.15 | ) | (0.80 | ) | (0.34 | ) | — | ||||||||||||||||
Year Ended December 31, 2019 | $ | 35.22 | 0.71 | (d) | 10.19 | 10.90 | (0.72 | ) | (1.47 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 38.00 | 0.68 | (2.40 | ) | (1.72 | ) | (0.66 | ) | (0.40 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 31.81 | 0.59 | 6.21 | 6.80 | (0.59 | ) | (0.02 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 29.18 | 0.58 | 2.80 | 3.38 | (0.61 | ) | (0.14 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 29.41 | 0.56 | (0.24 | ) | 0.32 | (0.52 | ) | (0.03 | ) | |||||||||||||||||
Reward Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 43.95 | 0.38 | (d) | (1.16 | ) | (0.78 | ) | (0.36 | ) | — | ||||||||||||||||
Year Ended December 31, 2019 | $ | 35.24 | 0.75 | (d) | 10.19 | 10.94 | (0.76 | ) | (1.47 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 38.01 | 0.71 | (2.38 | ) | (1.67 | ) | (0.70 | ) | (0.40 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 31.82 | 0.61 | 6.22 | 6.83 | (0.62 | ) | (0.02 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 29.19 | 0.60 | 2.81 | 3.41 | (0.64 | ) | (0.14 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 29.42 | 0.59 | (0.24 | ) | 0.35 | (0.55 | ) | (0.03 | ) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 5 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
See notes to financial statements.
20
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b) | Net Investment Income (Loss)(b) | Gross Expenses(b) | Net Assets, End of Period (000's) | Portfolio Turnover(a)(c) | ||||||||||||||||||||||||||||
USAA 500 Index Fund | |||||||||||||||||||||||||||||||||||
Member Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | (0.34 | ) | $ | 42.79 | (1.70 | )% | 0.25 | % | 1.73 | % | 0.26 | % | $ | 3,411,800 | 2 | % | |||||||||||||||||||
Year Ended December 31, 2019 | (2.19 | ) | $ | 43.93 | 31.19 | % | 0.25 | % | 1.73 | % | 0.26 | % | $ | 3,603,465 | 13 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (1.06 | ) | $ | 35.22 | (4.65 | )% | 0.25 | % | 1.75 | % | 0.26 | % | $ | 2,957,995 | 4 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.61 | ) | $ | 38.00 | 21.53 | % | 0.25 | % | 1.71 | % | 0.27 | % | $ | 3,285,829 | 3 | % | |||||||||||||||||||
Year Ended December 31, 2016 | (0.75 | ) | $ | 31.81 | 11.70 | % | 0.25 | % | 1.95 | % | 0.28 | % | $ | 2,962,450 | 4 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.55 | ) | $ | 29.18 | 1.13 | % | 0.25 | % | 1.88 | % | 0.28 | % | $ | 2,777,361 | 4 | % | |||||||||||||||||||
Reward Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | (0.36 | ) | $ | 42.81 | (1.65 | )% | 0.15 | % | 1.83 | % | 0.18 | % | $ | 4,228,856 | 2 | % | |||||||||||||||||||
Year Ended December 31, 2019 | (2.23 | ) | $ | 43.95 | 31.29 | % | 0.15 | % | 1.83 | % | 0.18 | % | $ | 4,546,094 | 13 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (1.10 | ) | $ | 35.24 | (4.53 | )% | 0.15 | % | 1.85 | % | 0.18 | % | $ | 3,606,745 | 4 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.64 | ) | $ | 38.01 | 21.64 | % | 0.15 | % | 1.81 | % | 0.18 | % | $ | 3,636,257 | 3 | % | |||||||||||||||||||
Year Ended December 31, 2016 | (0.78 | ) | $ | 31.82 | 11.79 | % | 0.15 | % | 2.04 | % | 0.18 | % | $ | 3,010,831 | 4 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.58 | ) | $ | 29.19 | 1.23 | % | 0.15 | % | 1.99 | % | 0.18 | % | $ | 2,613,832 | 4 | % |
See notes to financial statements.
21
USAA Mutual Funds Trust | Notes to Financial Statements June 30, 2020 |
(Unaudited)
1. Organization:
USAA Mutual Funds Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 47 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value.
The accompanying financial statements are those of USAA 500 Index Fund (the "Fund"). The Fund offers two classes of shares: Member Shares and Reward Shares. The Fund is classified as diversified under the 1940 Act.
Each class of shares of the Fund has substantially identical rights and privileges except with respect to fees paid under distribution plans, expenses allocable exclusively to each class of shares, voting rights on matters solely affecting a single class of shares, and the exchange privilege of each class of shares.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.
Investment Valuation:
The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
The Adviser has established the Pricing and Liquidity Committee (the "Committee"), and subject to Trust's Board of Trustees (the "Board") oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or
22
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Investments in open-end investment companies are valued at net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or an exchange on which they are traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.
In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 7,605,136 | $ | — | $ | — | $ | 7,605,136 | |||||||||||
Rights | 21 | — | — | 21 | |||||||||||||||
Collateral for Securities Loaned | 56,346 | — | — | 56,346 | |||||||||||||||
Total | $ | 7,661,503 | $ | — | $ | — | $ | 7,661,503 | |||||||||||
Other Financial Investments^: | |||||||||||||||||||
Assets: | |||||||||||||||||||
Futures Contracts | 678 | — | — | 678 | |||||||||||||||
Total | $ | 678 | $ | — | $ | — | $ | 678 |
^ Futures Contracts are valued at the unrealized appreciation (depreciation) on the investment.
For the six months ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
Real Estate Investment Trusts ("REITs"):
The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.
Investment Companies:
The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
23
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Derivative Instruments:
Futures Contracts:
The Fund may enter into contracts for the future delivery of securities or foreign currencies and futures contracts based on a specific security, class of securities, foreign currency or an index, and purchase or sell options on any such futures contracts. A futures contract on a securities index is an agreement obligating either party to pay, and entitling the other party to receive, while the contract is outstanding, cash payments based on the level of a specified securities index. No physical delivery of the underlying asset is made. The Fund may enter into futures contracts in an effort to hedge against market risks. The acquisition of put and call options on futures contracts will give the Fund the right (but not the obligation), for a specified price, to sell or to purchase the underlying futures contract, upon exercise of the option, at any time during the option period. Futures transactions involve brokerage costs and require the Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A good faith margin deposit, known as initial margin, of cash or government securities with a broker or custodian is required to initiate and maintain open positions in futures contracts. Subsequent payments, known as variation margin, are made or received by the Fund based on the change in the market value of the position and are recorded as unrealized appreciation or depreciation until the contract is closed out, at which time the gain or loss is realized. The Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if the Fund had not entered into any futures transactions. In addition, the value of the Fund's futures positions may not prove to be perfectly or even highly correlated with the value of its portfolio securities or foreign currencies, limiting the Fund's ability to hedge effectively against interest rate, exchange rate and/or market risk and giving rise to additional risks. There is no assurance of liquidity in the secondary market for purposes of closing out futures positions. The collateral held by the Fund is reflected on the Statement of Assets and Liabilities under Deposit with broker for futures contracts.
During the period ended June 30, 2020, the Fund held futures contracts primarily for the strategy of gaining exposure to a particular asset class or securities market. The Fund held futures contacts at June 30, 2020 for trading purposes.
Summary of Derivative Instruments:
The following table summarizes the fair values of derivative instruments on the Statement of Assets and Liabilities, categorized by risk exposure, as of June 30, 2020 (amounts in thousands):
Assets | |||||||
Variation Margin Receivable on Open Futures Contracts* | |||||||
Equity Risk Exposure: | $ | 678 |
* Includes cumulative appreciation/depreciation of futures contracts as reported on the Schedule of Portfolio Investments. Only current day's variation margin for futures contracts are reported within the Statement of Assets and Liabilities.
The following table presents the effect of derivative instruments on the Statement of Operations, categorized by risk exposure, for the six months ended June 30, 2020 (amounts in thousands):
Net Realized Gains (Losses) on Derivatives Recognized as a Result from Operations | Net Change in Unrealized Appreciation/Depreciation on Derivatives Recognized as a Result of Operations | ||||||||||
Net Realized Gains (Losses) from Futures Contracts | Net Change in Unrealized Appreciation/Depreciation on Futures Contracts | ||||||||||
Equity Risk Exposure: | $ | (1,472 | ) | $ | (137 | ) |
24
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
All open derivative positions at period end are reflected on the Fund's Schedule of Portfolio Investments. The underlying face value of open derivative positions relative to the Fund's net assets at period end is generally representative of the notional amount of open positions to net assets throughout the period.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Securities Lending:
The Fund, through a securities lending agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income, net of income retained by Citibank. Borrowers are required to secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are cured the next business day once the shortfall exceeds $100 thousand. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments, primarily open-end investment companies. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Fund's agreement with Citibank does not include master netting provisions. Non- cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed on the Fund's Schedule of Portfolio Investments and Financial Statements while non-cash collateral is not included. The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of June 30, 2020.
Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
$ | 55,522 | $ | — | $ | 56,346 |
Federal Income Taxes:
It is the Fund's policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.
Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
25
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Allocations:
Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
Income, expenses (other than class-specific expenses such as transfer agent fees, state registration fees, and printing fees), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets on the date income is earned or expenses and realized and unrealized gains and losses are incurred.
3. Purchases and Sales:
Cost of purchases and proceeds from sales/maturities of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2020, were as follows for the Fund (amounts in thousands):
Excluding U.S. Government Securities | |||||||||||
Purchases | Sales | ||||||||||
$ | 181,531 | $ | 433,089 |
There were no purchases and sales of U.S. government securities during the six months ended June 30, 2020.
4. Affiliated Fund Ownership:
The Fund offers its shares for investment by other USAA Mutual Funds. The fund-of-funds do not invest in the underlying funds for the purpose of exercising management or control, and the affiliated fund of-funds' annual and semiannual reports may be viewed at usaa.com. As of June 30, 2020, certain fund-of -funds owned total outstanding shares of the Fund:
Affiliated USAA Fund | Ownership % | ||||||
Cornerstone Conservative Fund | 0.1 | ||||||
Cornerstone Equity Fund | 0.3 |
5. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC. Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees accrued daily and paid monthly at an annual rate of 0.10% of the Fund's average daily net assets. The amounts incurred and paid to VCM during the six months ended June 30, 2020, are reflected on the Statement of Operations as Investment Advisory fees.
The Trust relies on an exemptive order granted to VCM and its affiliated funds by the SEC in March 2019 permitting the use of a "manager-of-managers" structure for certain funds. Prior to that date, the Trust relied on a similar exemptive order granted by the SC to the Trust and its affiliated persons. Under a manager-of-managers structure, the investment adviser may select (with approval of the Board and without shareholder approval) one or more subadvisers to manage the day-to-day investment of a fund's assets.
26
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Victory Capital's internal investment team, Victory Solutions, manages the Fund's assets. During the six months ended June 30, 2020, the Fund had no subadvisers.
Administration and Servicing Fees:
VCM serves as the Fund's administrator and fund accountant. Under the Fund Administration, Servicing and Accounting Agreement, VCM is paid for its services an annualized fee at a rate of 0.06% of average daily net assets of the Fund. Amounts incurred for the six months ended June 30, 2020, are reflected on the Statement of Operations as Administration fees.
The Fund (as part of the Trust) has entered into an agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. Funds in the Trust, Victory Variable Insurance Funds, Victory Portfolios, and Victory Portfolios II (collectively, the "Victory Funds Complex") in the aggregate, compensate the Adviser for these services. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Compliance fees.
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub- Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for reasonable out-of- pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund, under the Fund Administration, Servicing, and Accounting Agreement. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Sub-Administration fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), provides transfer agency services to the Fund. VCTA, an affiliate of the Adviser, provides transfer agent services to the Fund based on an annual charge of $23 per shareholder account plus out-of-pocket expenses. VCTA pays a portion of these fees to certain intermediaries for the administration and servicing of accounts that are held with such intermediaries. Amounts incurred and paid to VCTA during the six months ended June 30, 2020, are reflected on the Statement of Operations as Transfer Agent fees.
FIS Investor Services LLC serves as sub-transfer agent and dividend disbursing agent for the Fund pursuant to a Sub-Transfer Agent agreement between VCTA and FIS Investor Services LLC. VCTA provides FIS Investor Services LLC a fee for providing these services.
Distributor/Underwriting Services:
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Adviser, Inc.
Other Fees:
Citibank serves as the Fund's custodian.
K&L Gates LLP provides legal services to the Trust.
The Adviser has entered into an expense limitation agreement with the Fund until at least June 30, 2021. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by certain classes of the Fund in any fiscal year exceed the expense limit for such classes of the Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures, which are capitalized
27
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limits (excluding voluntary waivers) are 0.25% and 0.15% for Member Shares and Reward Shares, respectively.
Under this expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. As of June 30, 2020, the following amounts are available to be repaid to the Adviser (amounts in thousands).
Expires 12/31/22 | Expires 12/31/23 | Total | |||||||||
$ | 862 | $ | 880 | $ | 1,742 |
The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2020.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, Administrator, Sub-Administrator, Sub-Fund Accountant, and Legal.
6. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region. Geopolitical and other risks, including war, terrorism, trade disputes, political or economic dysfunction within some nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as the coronavirus (or COVID-19), may result in, among other things, closing borders, disruptions to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer activity, as well as general concern and uncertainty. The impact may be short-term or may last for extended periods.
The COVID-19 pandemic, which has spread rapidly across the world, has led and will continue to lead for an unknown period of time to disruptions in local, regional, national and global markets and economies. Among other things, the outbreak has resulted in, and until fully resolved is likely to continue to result in, among other things (1) government imposition of various forms of "stay-at-home" orders and the closing of "non-essential" businesses, resulting in significant disruption to the businesses of many issuers as well as lay-offs of employees; (2) increased requests by issuers of debt instruments for amendments and waivers of agreements to avoid default and increased defaults; (3) volatility and disruption of markets, including greater volatility in pricing and spreads; and (4) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general.
Overall stock market risks may affect the value of the Fund. Domestic and international factors such as political events, war, trade disputes, interest rate levels and other fiscal and monetary policy changes, pandemics and other public health crises, and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. The impact of these and other factors may be short-term or may last for extended periods.
The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general economic conditions. A company's earnings or dividends may not increase as expected due to poor management decisions, competitive pressures, breakthroughs
28
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military confrontations, war, terrorism, public health crises, or other events, conditions, and factors. Price changes may be temporary or last for extended periods.
The Fund invests in large-capitalization companies. Such investments may go in and out of favor based on market and economic conditions and may underperform other market segments. Some large-capitalization companies may be unable to respond quickly to new competitive challenges and attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. As such, returns on investments in stocks of large-capitalization companies could trail the returns on investments in stocks of small- and mid-capitalization companies.
7. Borrowing and Interfund Lending:
Line of Credit:
For the six months ended June 30, 2020, the Victory Funds Complex participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date of June 28, 2021. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs. For the six months ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee. Interest charged to the Fund, if any during the period are reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other Fund in the Victory Funds Complex relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period are reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period is reflected on the Statement of Operations under Income on interfund lending.
The average borrowing for the days outstanding and average interest rate for the Fund during the Six months ended June 30, 2020 were as follows:
Borrower or Lender | Amount Outstanding at June 30, 2020 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||
Borrower | $ | — | $ | 1,971 | 1 | 0.83 | % | 1,971 |
* For the six months ended June 30, 2020, based on the number of days borrowings were outstanding.
29
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
8. Federal Income Tax Information:
The Fund intends to declare daily and distribute any net investment income quarterly. Distributable net realized gains, if any, are declared and paid at least annually.
The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.
The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2020.
During the most recent tax year ended December 31, 2019 the Fund had no capital loss carryforwards, for federal income tax purposes.
30
USAA Mutual Funds Trust | Supplemental Information June 30, 2020 |
(Unaudited)
Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800) 539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at www.sec.gov.
Expense Examples
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including account maintenance fees, and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020.
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Member Shares | $ | 1,000.00 | $ | 983.00 | $ | 1,023.62 | $ | 1.23 | $ | 1.26 | 0.25 | % | |||||||||||||||
Reward Shares | 1,000.00 | 983.50 | 1,024.12 | 0.74 | 0.75 | 0.15 | % |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
31
USAA Mutual Funds Trust | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The USAA Mutual Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the 1940 Act. The LRMP is reasonably designed to assess and manage the Fund's liquidity risk, taking into consideration the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The USAA Mutual Funds' Board of Trustees approved the appointment of the Fund's investment adviser, Victory Capital, as the administrator of the LRMP. At an in-person meeting held on February 26, 2020, Victory Capital provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
Victory Capital manages liquidity risks associated with the Fund's investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of the Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, Victory Capital has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by Victory Capital. Victory Capital reviews the preliminary liquidity classifications, and, when appropriate, considers other information including input from the Fund's portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from Victory Capital concluded that the Fund did not experience any significant liquidity challenges during the covered period, and the Fund's LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Victory Capital to oversee and manage liquidity risk and ensure the Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in the Fund. During the review period, the Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Fund has not adopted a Highly Liquid Investment Minimum. The Fund's investments were below the limitation on illiquid investments during the review period. Additionally, Victory Capital indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
32
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
P.O. Box 182593
Columbus, Ohio 43218-2593
Visit our website at: | Call | ||||||
vcm.com | (800) 235-8396 |
28651-0820
JUNE 30, 2020
Semi Annual Report
USAA Target Retirement Income Fund
USAA Target Retirement 2020 Fund
USAA Target Retirement 2030 Fund
USAA Target Retirement 2040 Fund
USAA Target Retirement 2050 Fund
USAA Target Retirement 2060 Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all funds held with the USAA Mutual Funds or your financial intermediary.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds. USAA Mutual Funds are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Financial Statements | |||||||
Schedule of Portfolio Investments | 8 | ||||||
Statements of Assets and Liabilities | 14 | ||||||
Statements of Operations | 16 | ||||||
Statements of Changes in Net Assets | 18 | ||||||
Financial Highlights | 20 | ||||||
Notes to Financial Statements | 26 | ||||||
Supplemental Information | 45 | ||||||
Expense Examples | 45 | ||||||
Proxy Voting and Portfolio Holdings Information | 45 | ||||||
Liquidity Risk Management Program | 46 | ||||||
Privacy Policy (inside back cover) |
This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by Victory Capital Management Inc. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund.
IRA DISTRIBUTION WITHHOLDING DISCLOSURE
We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state's tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election, or change or revoke a prior withholding election, call (800) 235-8396.
If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution.
For more specific information, please consult your tax adviser.
1
USAA Mutual Funds Trust USAA Target Retirement Income Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective is to seek capital appreciation over the long term and also considers the potential for current income.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
USAA Government Securities Fund Institutional Shares | 27.5 | % | |||||
USAA Income Fund Institutional Shares | 15.7 | % | |||||
USAA Short-Term Bond Fund Institutional Shares | 14.7 | % | |||||
USAA Global Managed Volatility Fund Institutional Shares | 9.8 | % | |||||
USAA Target Managed Allocation Fund | 5.2 | % | |||||
Victory Market Neutral Income Fund Class I | 3.9 | % | |||||
USAA High Income Fund Institutional Shares | 3.7 | % | |||||
VictoryShares USAA MSCI USA Value Momentum ETF | 2.2 | % | |||||
Victory RS International Fund Class R6 | 2.2 | % | |||||
VictoryShares USAA MSCI International Value Momentum ETF | 1.6 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
USAA Mutual Funds Trust USAA Target Retirement 2020 Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective is to seek capital appreciation over the long term and also considers the potential for current income.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
USAA Government Securities Fund Institutional Shares | 27.7 | % | |||||
USAA Income Fund Institutional Shares | 15.2 | % | |||||
USAA Short-Term Bond Fund Institutional Shares | 14.5 | % | |||||
USAA Global Managed Volatility Fund Institutional Shares | 9.6 | % | |||||
USAA Target Managed Allocation Fund | 5.3 | % | |||||
Victory Market Neutral Income Fund Class I | 3.7 | % | |||||
USAA High Income Fund Institutional Shares | 3.6 | % | |||||
VictoryShares USAA MSCI USA Value Momentum ETF | 2.2 | % | |||||
Victory RS International Fund Class R6 | 1.9 | % | |||||
VictoryShares USAA MSCI International Value Momentum ETF | 1.6 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
3
USAA Mutual Funds Trust USAA Target Retirement 2030 Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective is to seek capital appreciation over the long term and also considers the potential for current income.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
USAA Global Managed Volatility Fund Institutional Shares | 19.0 | % | |||||
USAA Government Securities Fund Institutional Shares | 15.8 | % | |||||
USAA Target Managed Allocation Fund | 10.0 | % | |||||
USAA Income Fund Institutional Shares | 7.5 | % | |||||
VictoryShares USAA MSCI USA Value Momentum ETF | 4.7 | % | |||||
USAA Short-Term Bond Fund Institutional Shares | 4.7 | % | |||||
USAA High Income Fund Institutional Shares | 4.2 | % | |||||
USAA Growth Fund Institutional Shares | 3.4 | % | |||||
VictoryShares USAA MSCI International Value Momentum ETF | 3.3 | % | |||||
Victory RS International Fund Class R6 | 3.3 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
4
USAA Mutual Funds Trust USAA Target Retirement 2040 Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective is to seek capital appreciation over the long term and also considers the potential for current income.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
USAA Global Managed Volatility Fund Institutional Shares | 24.1 | % | |||||
USAA Target Managed Allocation Fund | 12.4 | % | |||||
USAA Government Securities Fund Institutional Shares | 8.2 | % | |||||
VictoryShares USAA MSCI USA Value Momentum ETF | 6.3 | % | |||||
USAA Growth Fund Institutional Shares | 4.3 | % | |||||
Victory RS International Fund Class R6 | 4.2 | % | |||||
VictoryShares USAA MSCI International Value Momentum ETF | 3.9 | % | |||||
USAA Income Fund Institutional Shares | 3.6 | % | |||||
Victory Integrity Mid-Cap Value Fund Class R6 | 3.6 | % | |||||
USAA High Income Fund Institutional Shares | 3.5 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
5
USAA Mutual Funds Trust USAA Target Retirement 2050 Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective is to seek capital appreciation over the long term and also considers the potential for current income.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
USAA Global Managed Volatility Fund Institutional Shares | 26.1 | % | |||||
USAA Target Managed Allocation Fund | 14.0 | % | |||||
VictoryShares USAA MSCI USA Value Momentum ETF | 7.0 | % | |||||
USAA Growth Fund Institutional Shares | 5.0 | % | |||||
Victory RS International Fund Class R6 | 4.8 | % | |||||
VictoryShares USAA MSCI International Value Momentum ETF | 4.5 | % | |||||
Victory Integrity Mid-Cap Value Fund Class R6 | 3.9 | % | |||||
USAA Government Securities Fund Institutional Shares | 3.6 | % | |||||
VictoryShares Dividend Accelerator ETF | 3.5 | % | |||||
Victory Trivalent International Core Equity Fund Class R6 | 3.3 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
6
USAA Mutual Funds Trust USAA Target Retirement 2060 Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective is to seek capital appreciation over the long term and also considers the potential for current income.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
USAA Global Managed Volatility Fund Institutional Shares | 26.5 | % | |||||
USAA Target Managed Allocation Fund | 13.8 | % | |||||
VictoryShares USAA MSCI USA Value Momentum ETF | 7.0 | % | |||||
Victory RS International Fund Class R6 | 5.2 | % | |||||
VictoryShares USAA MSCI International Value Momentum ETF | 4.5 | % | |||||
USAA Growth Fund Institutional Shares | 4.5 | % | |||||
Victory Integrity Mid-Cap Value Fund Class R6 | 3.9 | % | |||||
VictoryShares Dividend Accelerator ETF | 3.8 | % | |||||
USAA Government Securities Fund Institutional Shares | 3.4 | % | |||||
Victory Trivalent International Core Equity Fund Class R6 | 3.4 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
7
USAA Mutual Funds Trust USAA Target Retirement Income Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Affiliated Exchange-Traded Funds (10.7%) | |||||||||||
VictoryShares Dividend Accelerator ETF | 128,670 | $ | 4,267 | ||||||||
VictoryShares Emerging Market Volatility Wtd ETF (a) | 57,190 | 1,272 | |||||||||
VictoryShares International High Div Volatility Wtd ETF | 56,126 | 1,419 | |||||||||
VictoryShares International Volatility Wtd ETF | 57,833 | 2,007 | |||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 59,913 | 3,029 | |||||||||
VictoryShares U.S. Multi-Factor Minimum Volatility ETF | 77,905 | 2,395 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 96,550 | 3,664 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 131,566 | 5,065 | |||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 62,796 | 2,861 | |||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 150,663 | 6,830 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $35,686) | 32,809 | ||||||||||
Affiliated Mutual Funds (89.1%) | |||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 3,014,848 | 30,209 | |||||||||
USAA Government Securities Fund Institutional Shares | 8,296,252 | 84,954 | |||||||||
USAA Growth Fund Institutional Shares | 142,232 | 4,112 | |||||||||
USAA High Income Fund Institutional Shares | 1,601,024 | 11,399 | |||||||||
USAA Income Fund Institutional Shares | 3,542,537 | 48,462 | |||||||||
USAA Income Stock Fund Institutional Shares | 295,988 | 4,452 | |||||||||
USAA Precious Metals and Minerals Fund Institutional Shares (b) | 62,924 | 1,338 | |||||||||
USAA Short-Term Bond Fund Institutional Shares | 4,911,990 | 45,288 | |||||||||
USAA Small Cap Stock Fund Institutional Shares | 234,718 | 3,410 | |||||||||
USAA Target Managed Allocation Fund | 1,531,887 | 15,932 | |||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 175,600 | 2,716 | |||||||||
Victory Market Neutral Income Fund Class I | 1,209,437 | 11,889 | |||||||||
Victory RS International Fund Class R6 | 693,184 | 6,641 | |||||||||
Victory Trivalent International Core Equity Fund Class R6 | 617,257 | 4,055 | |||||||||
Total Affiliated Mutual Funds (Cost $258,072) | 274,857 | ||||||||||
Collateral for Securities Loaned^ (0.1%) | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (c) | 425,500 | 426 | |||||||||
Total Collateral for Securities Loaned (Cost $426) | 426 | ||||||||||
Total Investments (Cost $294,184) — 99.9% | 308,092 | ||||||||||
Other assets in excess of liabilities — 0.1% | 428 | ||||||||||
NET ASSETS — 100.00% | $ | 308,520 |
At June 30, 2020 the Fund's investments in foreign securities were 18.5% of net assets.
^ Purchased with cash collateral from securities on loan.
(a) All or a portion of this security is on loan.
(b) Non-income producing security.
(c) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
See notes to financial statements.
8
USAA Mutual Funds Trust USAA Target Retirement 2020 Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Affiliated Exchange-Traded Funds (11.5%) | |||||||||||
VictoryShares Dividend Accelerator ETF | 211,264 | $ | 7,006 | ||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 110,675 | 2,461 | |||||||||
VictoryShares International High Div Volatility Wtd ETF | 85,388 | 2,159 | |||||||||
VictoryShares International Volatility Wtd ETF | 117,231 | 4,069 | |||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 62,947 | 3,182 | |||||||||
VictoryShares U.S. Multi-Factor Minimum Volatility ETF | 192,162 | 5,907 | |||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 14,443 | 530 | |||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 81,494 | 4,388 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 154,975 | 5,882 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 225,011 | 8,663 | |||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 94,460 | 4,303 | |||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 258,940 | 11,739 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $64,572) | 60,289 | ||||||||||
Affiliated Mutual Funds (88.2%) | |||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 5,053,920 | 50,640 | |||||||||
USAA Government Securities Fund Institutional Shares | 14,242,367 | 145,842 | |||||||||
USAA Growth Fund Institutional Shares | 281,757 | 8,146 | |||||||||
USAA High Income Fund Institutional Shares | 2,656,436 | 18,914 | |||||||||
USAA Income Fund Institutional Shares | 5,842,664 | 79,928 | |||||||||
USAA Income Stock Fund Institutional Shares | 381,654 | 5,740 | |||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | 33 | — | (a) | ||||||||
USAA Precious Metals and Minerals Fund Institutional Shares (b) | 110,440 | 2,349 | |||||||||
USAA Short-Term Bond Fund Institutional Shares | 8,272,977 | 76,277 | |||||||||
USAA Small Cap Stock Fund Institutional Shares | 394,376 | 5,730 | |||||||||
USAA Target Managed Allocation Fund | 2,672,770 | 27,797 | |||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 392,942 | 6,079 | |||||||||
Victory Market Neutral Income Fund Class I | 1,980,686 | 19,470 | |||||||||
Victory RS International Fund Class R6 | 1,052,598 | 10,084 | |||||||||
Victory Trivalent International Core Equity Fund Class R6 | 1,018,461 | 6,691 | |||||||||
Total Affiliated Mutual Funds (Cost $427,734) | 463,687 | ||||||||||
Total Investments (Cost $492,306) — 99.7% | 523,976 | ||||||||||
Other assets in excess of liabilities — 0.3% | 1,598 | ||||||||||
NET ASSETS — 100.00% | $ | 525,574 |
At June 30, 2020 the Fund's investments in foreign securities were 18.1% of net assets.
(a) Amount is less than $1 thousand.
(b) Non-income producing security.
ETF — Exchange-Traded Fund
See notes to financial statements.
9
USAA Mutual Funds Trust USAA Target Retirement 2030 Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Affiliated Exchange-Traded Funds (20.9%) | |||||||||||
VictoryShares Dividend Accelerator ETF (a) | 964,695 | $ | 31,989 | ||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 357,356 | 7,946 | |||||||||
VictoryShares International High Div Volatility Wtd ETF | 408,197 | 10,323 | |||||||||
VictoryShares International Volatility Wtd ETF | 431,793 | 14,985 | |||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 387,304 | 19,579 | |||||||||
VictoryShares U.S. Multi-Factor Minimum Volatility ETF | 854,198 | 26,257 | |||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 46,492 | 1,707 | |||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 251,337 | 13,533 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 467,213 | 17,733 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 1,063,518 | 40,948 | |||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 336,942 | 15,349 | |||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 1,293,160 | 58,625 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $288,295) | 258,974 | ||||||||||
Affiliated Mutual Funds (78.8%) | |||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 23,592,860 | 236,400 | |||||||||
USAA Government Securities Fund Institutional Shares | 19,182,559 | 196,429 | |||||||||
USAA Growth Fund Institutional Shares | 1,464,216 | 42,330 | |||||||||
USAA High Income Fund Institutional Shares | 7,378,993 | 52,538 | |||||||||
USAA Income Fund Institutional Shares | 6,830,999 | 93,448 | |||||||||
USAA Income Stock Fund Institutional Shares | 1,601,368 | 24,085 | |||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | 44 | — | (b) | ||||||||
USAA Precious Metals and Minerals Fund Institutional Shares (c) | 249,586 | 5,309 | |||||||||
USAA Short-Term Bond Fund Institutional Shares | 6,259,472 | 57,712 | |||||||||
USAA Small Cap Stock Fund Institutional Shares | 1,364,763 | 19,830 | |||||||||
USAA Target Managed Allocation Fund | 11,931,084 | 124,083 | |||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 2,359,470 | 36,501 | |||||||||
Victory Market Neutral Income Fund Class I | 2,192,012 | 21,549 | |||||||||
Victory RS International Fund Class R6 | 4,216,094 | 40,390 | |||||||||
Victory Trivalent International Core Equity Fund Class R6 | 4,256,121 | 27,963 | |||||||||
Total Affiliated Mutual Funds (Cost $912,124) | 978,567 | ||||||||||
Collateral for Securities Loaned^ (0.0%) (d) | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (e) | 187,000 | 187 | |||||||||
Total Collateral for Securities Loaned (Cost $187) | 187 | ||||||||||
Total Investments (Cost $1,200,606) — 99.7% | 1,237,728 | ||||||||||
Other assets in excess of liabilities — 0.3% | 3,326 | ||||||||||
NET ASSETS — 100.00% | $ | 1,241,054 |
At June 30, 2020 the Fund's investments in foreign securities were 33.2% of net assets.
^ Purchased with cash collateral from securities on loan.
(b) Amount is less than $1 thousand.
(c) Non-income producing security.
(d) Amount represents less than 0.05% of net assets.
(e) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
See notes to financial statements.
10
USAA Mutual Funds Trust USAA Target Retirement 2040 Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Affiliated Exchange-Traded Funds (26.0%) | |||||||||||
VictoryShares Dividend Accelerator ETF | 1,288,160 | $ | 42,715 | ||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 605,450 | 13,463 | |||||||||
VictoryShares International High Div Volatility Wtd ETF | 616,336 | 15,586 | |||||||||
VictoryShares International Volatility Wtd ETF | 606,805 | 21,059 | |||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 697,256 | 35,248 | |||||||||
VictoryShares U.S. Multi-Factor Minimum Volatility ETF | 1,180,229 | 36,278 | |||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 73,442 | 2,697 | |||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 130,870 | 7,047 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 616,229 | 23,388 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 1,386,443 | 53,381 | |||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 458,387 | 20,881 | |||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 1,934,746 | 87,711 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $409,390) | 359,454 | ||||||||||
Affiliated Mutual Funds (73.8%) | |||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 33,262,939 | 333,295 | |||||||||
USAA Government Securities Fund Institutional Shares | 11,007,322 | 112,715 | |||||||||
USAA Growth Fund Institutional Shares | 2,061,824 | 59,607 | |||||||||
USAA High Income Fund Institutional Shares | 6,732,774 | 47,937 | |||||||||
USAA Income Fund Institutional Shares | 3,663,079 | 50,111 | |||||||||
USAA Income Stock Fund Institutional Shares | 2,394,600 | 36,015 | |||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | 32 | — | (a) | ||||||||
USAA Precious Metals and Minerals Fund Institutional Shares (b) | 277,582 | 5,904 | |||||||||
USAA Short-Term Bond Fund Institutional Shares | 2,297,161 | 21,180 | |||||||||
USAA Small Cap Stock Fund Institutional Shares | 1,487,465 | 21,613 | |||||||||
USAA Target Managed Allocation Fund | 16,513,845 | 171,744 | |||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 3,205,995 | 49,597 | |||||||||
Victory Market Neutral Income Fund Class I | 1,354,682 | 13,317 | |||||||||
Victory RS International Fund Class R6 | 6,126,344 | 58,690 | |||||||||
Victory Trivalent International Core Equity Fund Class R6 | 5,995,254 | 39,389 | |||||||||
Total Affiliated Mutual Funds (Cost $954,867) | 1,021,114 | ||||||||||
Total Investments (Cost $1,364,257) — 99.8% | 1,380,568 | ||||||||||
Other assets in excess of liabilities — 0.2% | 2,158 | ||||||||||
NET ASSETS — 100.00% | $ | 1,382,726 |
At June 30, 2020 the Fund's investments in foreign securities were 41.9% of net assets.
(a) Amount is less than $1 thousand.
(b) Non-income producing security.
ETF — Exchange-Traded Fund
See notes to financial statements.
11
USAA Mutual Funds Trust USAA Target Retirement 2050 Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Affiliated Exchange-Traded Funds (28.4%) | |||||||||||
VictoryShares Dividend Accelerator ETF | 839,626 | $ | 27,842 | ||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 390,952 | 8,693 | |||||||||
VictoryShares International High Div Volatility Wtd ETF | 342,991 | 8,674 | |||||||||
VictoryShares International Volatility Wtd ETF (a) | 392,881 | 13,635 | |||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 457,233 | 23,114 | |||||||||
VictoryShares U.S. Multi-Factor Minimum Volatility ETF | 704,349 | 21,650 | |||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 40,255 | 1,478 | |||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 19,425 | 1,046 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 437,570 | 16,608 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 925,868 | 35,648 | |||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 298,137 | 13,581 | |||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 1,225,153 | 55,542 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $258,003) | 227,511 | ||||||||||
Affiliated Mutual Funds (71.3%) | |||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 20,836,279 | 208,779 | |||||||||
USAA Government Securities Fund Institutional Shares | 2,824,808 | 28,926 | |||||||||
USAA Growth Fund Institutional Shares | 1,384,486 | 40,025 | |||||||||
USAA High Income Fund Institutional Shares | 2,544,615 | 18,118 | |||||||||
USAA Income Fund Institutional Shares | 1,124,236 | 15,380 | |||||||||
USAA Income Stock Fund Institutional Shares | 1,520,466 | 22,868 | |||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | 25 | — | (b) | ||||||||
USAA Precious Metals and Minerals Fund Institutional Shares (c) | 155,949 | 3,317 | |||||||||
USAA Short-Term Bond Fund Institutional Shares | 297,743 | 2,745 | |||||||||
USAA Small Cap Stock Fund Institutional Shares | 1,074,876 | 15,618 | |||||||||
USAA Target Managed Allocation Fund | 10,751,998 | 111,821 | |||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 2,007,729 | 31,060 | |||||||||
Victory Market Neutral Income Fund Class I | 636,442 | 6,256 | |||||||||
Victory RS International Fund Class R6 | 4,040,575 | 38,709 | |||||||||
Victory Trivalent International Core Equity Fund Class R6 | 3,962,789 | 26,036 | |||||||||
Total Affiliated Mutual Funds (Cost $535,016) | 569,658 | ||||||||||
Collateral for Securities Loaned^ (0.4%) | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (d) | 2,695,550 | 2,696 | |||||||||
Invesco Government & Agency Portfolio Institutional Shares, 0.09% (d) | 105,400 | 105 | |||||||||
Total Collateral for Securities Loaned (Cost $2,801) | 2,801 | ||||||||||
Total Investments (Cost $795,820) — 100.1% | 799,970 | ||||||||||
Liabilities in excess of other assets — (0.1)% | (974 | ) | |||||||||
NET ASSETS — 100.00% | $ | 798,996 |
At June 30, 2020 the Fund's investments in foreign securities were 46.4% of net assets.
^ Purchased with cash collateral from securities on loan.
(a) All or a portion of this security is on loan.
(b) Rounds to less than $1 thousand.
(c) Non-income producing security.
(d) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
See notes to financial statements.
12
USAA Mutual Funds Trust USAA Target Retirement 2060 Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Affiliated Exchange-Traded Funds (29.1%) | |||||||||||
VictoryShares Dividend Accelerator ETF | 123,285 | $ | 4,088 | ||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 56,588 | 1,258 | |||||||||
VictoryShares International High Div Volatility Wtd ETF | 44,883 | 1,135 | |||||||||
VictoryShares International Volatility Wtd ETF (a) | 65,981 | 2,290 | |||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 59,017 | 2,984 | |||||||||
VictoryShares U.S. Multi-Factor Minimum Volatility ETF | 99,047 | 3,045 | |||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 6,319 | 232 | |||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 62,817 | 2,384 | |||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 127,793 | 4,920 | |||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 38,220 | 1,741 | |||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 166,806 | 7,562 | |||||||||
Total Affiliated Exchange-Traded Funds (Cost $35,516) | 31,639 | ||||||||||
Affiliated Mutual Funds (70.9%) | |||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 2,880,849 | 28,866 | |||||||||
USAA Government Securities Fund Institutional Shares | 363,733 | 3,725 | |||||||||
USAA Growth Fund Institutional Shares | 169,327 | 4,895 | |||||||||
USAA High Income Fund Institutional Shares | 409,620 | 2,917 | |||||||||
USAA Income Fund Institutional Shares | 140,524 | 1,922 | |||||||||
USAA Income Stock Fund Institutional Shares | 242,422 | 3,646 | |||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | 2 | — | (b) | ||||||||
USAA Precious Metals and Minerals Fund Institutional Shares (c) | 19,382 | 412 | |||||||||
USAA Short-Term Bond Fund Institutional Shares | 110 | 1 | |||||||||
USAA Small Cap Stock Fund Institutional Shares | 145,724 | 2,117 | |||||||||
USAA Target Managed Allocation Fund | 1,446,888 | 15,048 | |||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 273,442 | 4,230 | |||||||||
Victory RS International Fund Class R6 | 589,235 | 5,645 | |||||||||
Victory Trivalent International Core Equity Fund Class R6 | 561,535 | 3,689 | |||||||||
Total Affiliated Mutual Funds (Cost $76,409) | 77,113 | ||||||||||
Collateral for Securities Loaned^ (0.0%) (d) | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (e) | 17,750 | 18 | |||||||||
Total Collateral for Securities Loaned (Cost $18) | 18 | ||||||||||
Total Investments (Cost $111,943) — 100.0% | 108,770 | ||||||||||
Other assets in excess of liabilities — 0.0% | 32 | ||||||||||
NET ASSETS — 100.00% | $ | 108,802 |
At June 30, 2020 the Fund's investments in foreign securities were 47.7% of net assets.
^ Purchased with cash collateral from securities on loan.
(a) All or a portion of this security is on loan.
(b) Amount is less than $1 thousand.
(c) Non-income producing security.
(d) Amount represents less than 0.05% of net assets.
(e) Rate disclosed is the daily yield on June 30, 2020.
ETF — Exchange-Traded Fund
See notes to financial statements.
13
USAA Mutual Funds Trust | Statements of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA Target Retirement Income Fund | USAA Target Retirement 2020 Fund | USAA Target Retirement 2030 Fund | |||||||||||||
ASSETS: | |||||||||||||||
Affiliated investments, at value (Cost $293,758, $492,306 and $1,200,419) | $ | 307,666 | $ | 523,976 | $ | 1,237,541 | |||||||||
Unaffiliated investments, at value (Cost $426, $— and $187) | 426 | (a) | — | 187 | (b) | ||||||||||
Cash and cash equivalents | 785 | 1,428 | 2,785 | ||||||||||||
Receivables: | |||||||||||||||
Interest | — | (c) | — | (c) | — | (c) | |||||||||
Distributions from affiliated funds | 281 | 478 | 522 | ||||||||||||
Capital shares issued | 10 | 88 | 971 | ||||||||||||
Prepaid expenses | 16 | 14 | 13 | ||||||||||||
Total Assets | 309,184 | 525,984 | 1,242,019 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payables: | |||||||||||||||
Collateral received on loaned securities | 426 | — | 187 | ||||||||||||
Capital shares redeemed | 200 | 365 | 720 | ||||||||||||
To Adviser | — | 2 | — | ||||||||||||
Accrued expenses and other payables: | |||||||||||||||
Custodian fees | 1 | 1 | — | (c) | |||||||||||
Compliance fees | — | (c) | — | (c) | 1 | ||||||||||
Trustees' fees | 1 | 1 | 1 | ||||||||||||
Other accrued expenses | 36 | 41 | 56 | ||||||||||||
Total Liabilities | 664 | 410 | 965 | ||||||||||||
NET ASSETS: | |||||||||||||||
Capital | 292,368 | 479,129 | 1,168,296 | ||||||||||||
Total distributable earnings/(loss) | 16,152 | 46,445 | 72,758 | ||||||||||||
Net Assets | $ | 308,520 | $ | 525,574 | $ | 1,241,054 | |||||||||
Shares (unlimited number of shares authorized with no par value): | |||||||||||||||
27,753 | 45,232 | 104,124 | |||||||||||||
Net asset value, offering and redemption price per share: (d) | |||||||||||||||
$ | 11.12 | $ | 11.62 | $ | 11.92 |
(a) Includes $411 of securities on loan.
(b) Includes $182 of securities on loan.
(c) Rounds to less than $1 thousand.
(d) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
14
USAA Mutual Funds Trust | Statements of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA Target Retirement 2040 Fund | USAA Target Retirement 2050 Fund | USAA Target Retirement 2060 Fund | |||||||||||||
ASSETS: | |||||||||||||||
Affiliated investments, at value (Cost $1,364,257, $793,019 and $111,925) | $ | 1,380,568 | $ | 797,169 | $ | 108,752 | |||||||||
Unaffiliated investments, at value (Cost $—, $2,801 and $18) | — | 2,801 | (a) | 18 | (b) | ||||||||||
Cash and cash equivalents | 2,532 | 2,310 | 177 | ||||||||||||
Receivables: | |||||||||||||||
Interest | — | (c) | 1 | — | (c) | ||||||||||
Distributions from affiliated funds | 273 | 73 | 9 | ||||||||||||
Capital shares issued | 130 | 144 | 39 | ||||||||||||
From Adviser | — | — | 13 | ||||||||||||
Prepaid expenses | 20 | 15 | 13 | ||||||||||||
Total Assets | 1,383,523 | 802,513 | 109,021 | ||||||||||||
LIABILITIES: | |||||||||||||||
Payables: | |||||||||||||||
Collateral received on loaned securities | — | 2,801 | 18 | ||||||||||||
Capital shares redeemed | 730 | 661 | 154 | ||||||||||||
To Adviser | 4 | — | — | ||||||||||||
Accrued expenses and other payables: | |||||||||||||||
Custodian fees | 1 | 5 | 6 | ||||||||||||
Compliance fees | 1 | 1 | — | (c) | |||||||||||
Trustees' fees | 1 | 1 | 6 | ||||||||||||
Other accrued expenses | 60 | 48 | 35 | ||||||||||||
Total Liabilities | 797 | 3,517 | 219 | ||||||||||||
NET ASSETS: | |||||||||||||||
Capital | 1,309,024 | 753,748 | 107,669 | ||||||||||||
Total distributable earnings/(loss) | 73,702 | 45,248 | 1,133 | ||||||||||||
Net Assets | $ | 1,382,726 | $ | 798,996 | $ | 108,802 | |||||||||
Shares (unlimited number of shares authorized with no par value): | |||||||||||||||
118,170 | 67,127 | 9,402 | |||||||||||||
Net asset value, offering and redemption price per share: (d) | |||||||||||||||
$ | 11.70 | $ | 11.90 | $ | 11.57 |
(a) Includes $2,738 of securities on loan.
(b) Includes $17 of securities on loan.
(c) Rounds to less than $1 thousand.
(d) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
15
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA Target Retirement Income Fund | USAA Target Retirement 2020 Fund | USAA Target Retirement 2030 Fund | |||||||||||||
Investment Income: | |||||||||||||||
Interest | $ | 3 | $ | 2 | $ | 12 | |||||||||
Income distributions from affiliated funds | 3,201 | 5,444 | 8,363 | ||||||||||||
Securities lending (net of fees) | — | (a) | 2 | 5 | |||||||||||
Total Income | 3,204 | 5,448 | 8,380 | ||||||||||||
Expenses: | |||||||||||||||
Sub-Administration fees | 8 | 8 | 8 | ||||||||||||
Custodian fees | 6 | 8 | 12 | ||||||||||||
Trustees' fees | 23 | 23 | 23 | ||||||||||||
Compliance fees | 1 | 2 | 4 | ||||||||||||
Legal and audit fees | 24 | 26 | 25 | ||||||||||||
Printing | 9 | 9 | 25 | ||||||||||||
State registration and filing fees | 18 | 19 | 25 | ||||||||||||
Interfund lending fees | — | (a) | — | (a) | — | ||||||||||
Other expenses | 7 | 8 | 17 | ||||||||||||
Total Expenses | 96 | 103 | 139 | ||||||||||||
Net Expenses | 96 | 103 | 139 | ||||||||||||
Net Investment Income (Loss) | 3,108 | 5,345 | 8,241 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||||||||||
Net realized gains (losses) from sales of affiliated funds | (808 | ) | 1,565 | (4,215 | ) | ||||||||||
Net change in unrealized appreciation/ depreciation on affiliated funds | (3,032 | ) | (7,791 | ) | (68,335 | ) | |||||||||
Net realized/unrealized gains (losses) on investments | (3,840 | ) | (6,226 | ) | (72,550 | ) | |||||||||
Change in net assets resulting from operations | $ | (732 | ) | $ | (881 | ) | $ | (64,309 | ) |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
16
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA Target Retirement 2040 Fund | USAA Target Retirement 2050 Fund | USAA Target Retirement 2060 Fund | |||||||||||||
Investment Income: | |||||||||||||||
Interest | $ | 14 | $ | 10 | $ | 3 | |||||||||
Income distributions from affiliated funds | 6,916 | 3,293 | 442 | ||||||||||||
Securities lending (net of fees) | 2 | 2 | — | (a) | |||||||||||
Total Income | 6,932 | 3,305 | 445 | ||||||||||||
Expenses: | |||||||||||||||
Sub-Administration fees | 8 | 8 | 8 | ||||||||||||
Custodian fees | 13 | 11 | 9 | ||||||||||||
Trustees' fees | 23 | 23 | 23 | ||||||||||||
Compliance fees | 5 | 3 | — | (a) | |||||||||||
Legal and audit fees | 26 | 27 | 32 | ||||||||||||
Printing | 26 | 16 | 10 | ||||||||||||
State registration and filing fees | 30 | 23 | 14 | ||||||||||||
Other expenses | 20 | 12 | 4 | ||||||||||||
Total Expenses | 151 | 123 | 100 | ||||||||||||
Expenses waived/reimbursed by Adviser | (12 | ) | — | (47 | ) | ||||||||||
Net Expenses | 139 | 123 | 53 | ||||||||||||
Net Investment Income (Loss) | 6,793 | 3,182 | 392 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||||||||||
Net realized gains (losses) from sales of affiliated funds | (3,758 | ) | 961 | 164 | |||||||||||
Net change in unrealized appreciation/ depreciation on affiliated funds | (113,718 | ) | (70,818 | ) | (9,415 | ) | |||||||||
Net realized/unrealized gains (losses) on investments | (117,476 | ) | (69,857 | ) | (9,251 | ) | |||||||||
Change in net assets resulting from operations | $ | (110,683 | ) | $ | (66,675 | ) | $ | (8,859 | ) |
(a) Rounds to less than $1 thousand.
See notes to financial statements.
17
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Target Retirement Income Fund | USAA Target Retirement 2020 Fund | USAA Target Retirement 2030 Fund | |||||||||||||||||||||||||
Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | ||||||||||||||||||||||
From Investments: | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 3,108 | $ | 9,118 | $ | 5,345 | $ | 14,505 | $ | 8,241 | $ | 32,864 | |||||||||||||||
Net realized gains (losses) from investments | (808 | ) | 12,036 | 1,565 | 40,715 | (4,215 | ) | 104,810 | |||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments | (3,032 | ) | 15,252 | (7,791 | ) | 19,408 | (68,335 | ) | 65,221 | ||||||||||||||||||
Change in net assets resulting from operations | (732 | ) | 36,406 | (881 | ) | 74,628 | (64,309 | ) | 202,895 | ||||||||||||||||||
Change in net assets resulting from distributions to shareholders | (3,053 | ) | (20,806 | ) | — | (57,178 | ) | — | (143,003 | ) | |||||||||||||||||
Change in net assets resulting from capital transactions | (25,328 | ) | 3,237 | (55,016 | ) | 9,867 | (62,980 | ) | 124,887 | ||||||||||||||||||
Change in net assets | (29,113 | ) | 18,837 | (55,897 | ) | 27,317 | (127,289 | ) | 184,779 | ||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 337,633 | 318,796 | 581,471 | 554,154 | 1,368,343 | 1,183,564 | |||||||||||||||||||||
End of period | $ | 308,520 | $ | 337,633 | $ | 525,574 | $ | 581,471 | $ | 1,241,054 | $ | 1,368,343 | |||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 18,341 | $ | 41,829 | $ | 20,820 | $ | 47,372 | $ | 57,647 | $ | 119,955 | |||||||||||||||
Distributions reinvested | 3,023 | 20,602 | — | 56,837 | — | 142,769 | |||||||||||||||||||||
Cost of shares redeemed | (46,692 | ) | (59,194 | ) | (75,836 | ) | (94,342 | ) | (120,627 | ) | (137,837 | ) | |||||||||||||||
Change in net assets resulting from capital transactions | $ | (25,328 | ) | $ | 3,237 | $ | (55,016 | ) | $ | 9,867 | $ | (62,980 | ) | $ | 124,887 | ||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Issued | 1,668 | 3,693 | 1,840 | 3,891 | 4,900 | 9,245 | |||||||||||||||||||||
Reinvested | 282 | 1,823 | — | 4,825 | — | 11,294 | |||||||||||||||||||||
Redeemed | (4,301 | ) | (5,234 | ) | (6,727 | ) | (7,742 | ) | (10,481 | ) | (10,584 | ) | |||||||||||||||
Change in Shares | (2,351 | ) | 282 | (4,887 | ) | 974 | (5,581 | ) | 9,955 |
See notes to financial statements.
18
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Target Retirement 2040 Fund | USAA Target Retirement 2050 Fund | USAA Target Retirement 2060 Fund | |||||||||||||||||||||||||
Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | ||||||||||||||||||||||
From Investments: | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 6,793 | $ | 35,111 | $ | 3,182 | $ | 19,342 | $ | 392 | $ | 2,432 | |||||||||||||||
Net realized gains (losses) from investments | (3,758 | ) | 145,673 | 961 | 83,380 | 164 | 4,793 | ||||||||||||||||||||
Net change in unrealized appreciation/depreciation on investments | (113,718 | ) | 73,975 | (70,818 | ) | 47,604 | (9,415 | ) | 11,491 | ||||||||||||||||||
Change in net assets resulting from operations | (110,683 | ) | 254,759 | (66,675 | ) | 150,326 | (8,859 | ) | 18,716 | ||||||||||||||||||
Change in net assets resulting from distributions to shareholders | — | (178,743 | ) | — | (95,648 | ) | — | (6,542 | ) | ||||||||||||||||||
Change in net assets resulting from capital transactions | (58,143 | ) | 165,208 | (27,359 | ) | 96,903 | 1,168 | 16,916 | |||||||||||||||||||
Change in net assets | (168,826 | ) | 241,224 | (94,034 | ) | 151,581 | (7,691 | ) | 29,090 | ||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 1,551,552 | 1,310,328 | 893,030 | 741,449 | 116,493 | 87,403 | |||||||||||||||||||||
End of period | $ | 1,382,726 | $ | 1,551,552 | $ | 798,996 | $ | 893,030 | $ | 108,802 | $ | 116,493 | |||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Proceeds from shares issued | $ | 65,826 | $ | 129,343 | $ | 49,207 | $ | 89,371 | $ | 14,720 | $ | 27,519 | |||||||||||||||
Distributions reinvested | — | 178,580 | — | 95,564 | — | 6,537 | |||||||||||||||||||||
Cost of shares redeemed | (123,969 | ) | (142,715 | ) | (76,566 | ) | (88,032 | ) | (13,552 | ) | (17,140 | ) | |||||||||||||||
Change in net assets resulting from capital transactions | $ | (58,143 | ) | $ | 165,208 | $ | (27,359 | ) | $ | 96,903 | $ | 1,168 | $ | 16,916 | |||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Issued | 5,717 | 9,869 | 4,236 | 6,769 | 1,309 | 2,255 | |||||||||||||||||||||
Reinvested | — | 14,024 | — | 7,358 | — | 517 | |||||||||||||||||||||
Redeemed | (10,930 | ) | (10,874 | ) | (6,640 | ) | (6,635 | ) | (1,202 | ) | (1,390 | ) | |||||||||||||||
Change in Shares | (5,213 | ) | 13,019 | (2,404 | ) | 7,492 | 107 | 1,382 |
See notes to financial statements.
19
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains From Investments | ||||||||||||||||||||||
USAA Target Retirement Income Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 11.22 | 0.11 | (d) | (0.10 | ) | 0.01 | (0.11 | ) | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 10.69 | 0.31 | (d) | 0.93 | 1.24 | (0.31 | ) | (0.40 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 11.69 | 0.29 | (0.64 | ) | (0.35 | ) | (0.29 | ) | (0.36 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 11.41 | 0.28 | 0.70 | 0.98 | (0.28 | ) | (0.42 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 11.09 | 0.28 | 0.42 | 0.70 | (0.28 | ) | (0.10 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 11.82 | 0.28 | (0.50 | ) | (0.22 | ) | (0.28 | ) | (0.23 | ) | ||||||||||||||||
USAA Target Retirement 2020 Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 11.60 | 0.11 | (d) | (0.09 | ) | 0.02 | — | — | ||||||||||||||||||
Year Ended December 31, 2019 | $ | 11.28 | 0.31 | (d) | 1.25 | 1.56 | (0.30 | ) | (0.94 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 12.86 | 0.30 | (0.92 | ) | (0.62 | ) | (0.30 | ) | (0.66 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 12.28 | 0.30 | 1.25 | 1.55 | (0.30 | ) | (0.67 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 11.85 | 0.30 | 0.60 | 0.90 | (0.38 | ) | (0.09 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 12.56 | 0.30 | (0.60 | ) | (0.30 | ) | (0.21 | ) | (0.20 | ) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) The expense ratios exclude the impact of expenses paid to each underlying fund.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
(e) Overall increase in purchases and sales of securities.
See notes to financial statements.
20
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b)(c) | Net Investment Income (Loss)(b) | Gross Expenses(b)(c) | Net Assets, End of Period (000's) | Portfolio Turnover(a) | ||||||||||||||||||||||||||||
USAA Target Retirement Income Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | (0.11 | ) | $ | 11.12 | 0.11 | % | 0.06 | % | 1.96 | % | 0.06 | % | $ | 308,520 | 8 | % | |||||||||||||||||||
Year Ended December 31, 2019 | (0.71 | ) | $ | 11.22 | 11.72 | % | 0.07 | % | 2.75 | % | 0.07 | % | $ | 337,633 | 16 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.65 | ) | $ | 10.69 | (3.01 | )% | 0.07 | % | 2.53 | % | 0.07 | % | $ | 318,796 | 29 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.70 | ) | $ | 11.69 | 8.66 | % | 0.07 | % | 2.44 | % | 0.07 | % | $ | 349,866 | 41 | %(e) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.38 | ) | $ | 11.41 | 6.36 | % | 0.07 | % | 2.41 | % | 0.07 | % | $ | 317,856 | 14 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.51 | ) | $ | 11.09 | (1.95 | )% | 0.06 | % | 2.36 | % | 0.06 | % | $ | 330,809 | 35 | % | |||||||||||||||||||
USAA Target Retirement 2020 Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 11.62 | 0.17 | % | 0.04 | % | 1.98 | % | 0.04 | % | $ | 525,574 | 9 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (1.24 | ) | $ | 11.60 | 13.83 | % | 0.04 | % | 2.51 | % | 0.04 | % | $ | 581,471 | 28 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.96 | ) | $ | 11.28 | (4.85 | )% | 0.04 | % | 2.41 | % | 0.04 | % | $ | 554,154 | 34 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.97 | ) | $ | 12.86 | 12.71 | % | 0.04 | % | 2.33 | % | 0.04 | % | $ | 617,583 | 39 | %(e) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.47 | ) | $ | 12.28 | 7.57 | % | 0.04 | % | 2.33 | % | 0.04 | % | $ | 570,796 | 11 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.41 | ) | $ | 11.85 | (2.40 | )% | 0.04 | % | 2.31 | % | 0.04 | % | $ | 583,926 | 30 | % |
See notes to financial statements.
21
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains From Investments | ||||||||||||||||||||||
USAA Target Retirement 2030 Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 12.47 | 0.08 | (d) | (0.63 | ) | (0.55 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 11.87 | 0.33 | (d) | 1.70 | 2.03 | (0.31 | ) | (1.12 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 13.84 | 0.30 | (1.25 | ) | (0.95 | ) | (0.30 | ) | (0.72 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 12.89 | 0.30 | 1.77 | 2.07 | (0.32 | ) | (0.80 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 12.34 | 0.30 | 0.77 | 1.07 | (0.48 | ) | (0.04 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 13.05 | 0.27 | (0.63 | ) | (0.36 | ) | (0.08 | ) | (0.27 | ) | ||||||||||||||||
USAA Target Retirement 2040 Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 12.58 | 0.06 | (d) | (0.94 | ) | (0.88 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 11.87 | 0.32 | (d) | 1.99 | 2.31 | (0.29 | ) | (1.31 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 14.25 | 0.27 | (1.46 | ) | (1.19 | ) | (0.28 | ) | (0.91 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 12.82 | 0.29 | 2.07 | 2.36 | (0.29 | ) | (0.64 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 12.23 | 0.26 | 0.83 | 1.09 | (0.48 | ) | (0.02 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 12.89 | 0.23 | (0.58 | ) | (0.35 | ) | — | (f) | (0.31 | ) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) The expense ratios exclude the impact of expenses paid to each underlying fund.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
(e) Overall increase in purchases and sales of securities.
(f) Amount is less than $0.005.
(g) Overall decrease in purchases and sales of securities.
See notes to financial statements.
22
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b)(c) | Net Investment Income (Loss)(b) | Gross Expenses(b)(c) | Net Assets, End of Period (000's) | Portfolio Turnover(a) | ||||||||||||||||||||||||||||
USAA Target Retirement 2030 Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 11.92 | (4.41 | )% | 0.02 | % | 1.32 | % | 0.02 | % | $ | 1,241,054 | 7 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (1.43 | ) | $ | 12.47 | 17.13 | % | 0.03 | % | 2.53 | % | 0.03 | % | $ | 1,368,343 | 24 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (1.02 | ) | $ | 11.87 | (6.99 | )% | 0.03 | % | 2.25 | % | 0.03 | % | $ | 1,183,564 | 36 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (1.12 | ) | $ | 13.84 | 16.12 | % | 0.03 | % | 2.29 | % | 0.03 | % | $ | 1,286,393 | 32 | % | |||||||||||||||||||
Year Ended December 31, 2016 | (0.52 | ) | $ | 12.89 | 8.70 | % | 0.03 | % | 2.22 | % | 0.03 | % | $ | 1,098,440 | 8 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.35 | ) | $ | 12.34 | (2.81 | )% | 0.03 | % | 2.08 | % | 0.03 | % | $ | 1,060,971 | 32 | % | |||||||||||||||||||
USAA Target Retirement 2040 Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 11.70 | (7.00 | )% | 0.02 | % | 0.97 | % | 0.02 | % | $ | 1,382,726 | 5 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (1.60 | ) | $ | 12.58 | 19.57 | % | 0.02 | % | 2.41 | % | 0.02 | % | $ | 1,551,552 | 29 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (1.19 | ) | $ | 11.87 | (8.53 | )% | 0.02 | % | 2.08 | % | 0.02 | % | $ | 1,310,328 | 35 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.93 | ) | $ | 14.25 | 18.46 | % | 0.03 | % | 2.15 | % | 0.03 | % | $ | 1,424,068 | 32 | % | |||||||||||||||||||
Year Ended December 31, 2016 | (0.50 | ) | $ | 12.82 | 8.97 | % | 0.03 | % | 1.99 | % | 0.03 | % | $ | 1,195,926 | 9 | %(g) | |||||||||||||||||||
Year Ended December 31, 2015 | (0.31 | ) | $ | 12.23 | (2.71 | )% | 0.03 | % | 1.78 | % | 0.03 | % | $ | 1,128,269 | 35 | % |
See notes to financial statements.
23
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains From Investments | ||||||||||||||||||||||
USAA Target Retirement 2050 Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 12.84 | 0.05 | (d) | (0.99 | ) | (0.94 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 11.95 | 0.31 | (d) | 2.09 | 2.40 | (0.28 | ) | (1.23 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 14.45 | 0.26 | (1.54 | ) | (1.28 | ) | (0.26 | ) | (0.96 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 12.78 | 0.27 | 2.20 | 2.47 | (0.28 | ) | (0.52 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 12.18 | 0.23 | 0.87 | 1.10 | (0.42 | ) | (0.08 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 12.81 | 0.20 | (0.52 | ) | (0.32 | ) | — | (f) | (0.31 | ) | ||||||||||||||||
USAA Target Retirement 2060 Fund | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 12.53 | 0.04 | (d) | (1.00 | ) | (0.96 | ) | — | — | |||||||||||||||||
Year Ended December 31, 2019 | $ | 11.05 | 0.28 | (d) | 1.94 | 2.22 | (0.27 | ) | (0.47 | ) | |||||||||||||||||
Year Ended December 31, 2018 | $ | 12.74 | 0.23 | (1.39 | ) | (1.16 | ) | (0.23 | ) | (0.30 | ) | ||||||||||||||||
Year Ended December 31, 2017 | $ | 11.07 | 0.22 | 1.93 | 2.15 | (0.22 | ) | (0.26 | ) | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 10.48 | 0.15 | 0.77 | 0.92 | (0.30 | ) | (0.03 | ) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 10.93 | 0.18 | (d) | (0.45 | ) | (0.27 | ) | (0.01 | ) | (0.17 | ) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) The expense ratios exclude the impact of expenses paid to each underlying fund.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
(e) Overall increase in purchases and sales of securities.
(f) Amount is less than $0.005.
(g) Overall decrease in purchases and sales of securities.
See notes to financial statements.
24
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b)(c) | Net Investment Income (Loss)(b) | Gross Expenses(b)(c) | Net Assets, End of Period (000's) | Portfolio Turnover(a) | ||||||||||||||||||||||||||||
USAA Target Retirement 2050 Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 11.90 | (7.32 | )% | 0.03 | % | 0.79 | % | 0.03 | % | $ | 798,996 | 7 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (1.51 | ) | $ | 12.84 | 20.16 | % | 0.04 | % | 2.32 | % | 0.04 | % | $ | 893,030 | 30 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (1.22 | ) | $ | 11.95 | (9.02 | )% | 0.04 | % | 1.96 | % | 0.04 | % | $ | 741,449 | 36 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.80 | ) | $ | 14.45 | 19.39 | % | 0.04 | % | 2.00 | % | 0.04 | % | $ | 804,921 | 30 | % | |||||||||||||||||||
Year Ended December 31, 2016 | (0.50 | ) | $ | 12.78 | 9.02 | % | 0.05 | % | 1.87 | % | 0.05 | % | $ | 659,642 | 6 | %(g) | |||||||||||||||||||
Year Ended December 31, 2015 | (0.31 | ) | $ | 12.18 | (2.48 | )% | 0.04 | % | 1.58 | % | 0.04 | % | $ | 603,281 | 39 | % | |||||||||||||||||||
USAA Target Retirement 2060 Fund | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | — | $ | 11.57 | (7.66 | )% | 0.10 | % | 0.73 | % | 0.19 | % | $ | 108,802 | 10 | % | ||||||||||||||||||||
Year Ended December 31, 2019 | (0.74 | ) | $ | 12.53 | 20.09 | % | 0.10 | % | 2.30 | % | 0.22 | % | $ | 116,493 | 29 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.53 | ) | $ | 11.05 | (9.18 | )% | 0.10 | % | 2.00 | % | 0.23 | % | $ | 87,403 | 36 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.48 | ) | $ | 12.74 | 19.51 | % | 0.10 | % | 1.95 | % | 0.29 | % | $ | 77,599 | 37 | %(e) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.33 | ) | $ | 11.07 | 8.80 | % | 0.10 | % | 1.85 | % | 0.41 | % | $ | 53,142 | 4 | %(g) | |||||||||||||||||||
Year Ended December 31, 2015 | (0.18 | ) | $ | 10.48 | (2.47 | )% | 0.10 | % | 1.64 | % | 0.51 | % | $ | 37,963 | 35 | % |
See notes to financial statements.
25
USAA Mutual Funds Trust | Notes to Financial Statements June 30, 2020 |
(Unaudited)
1. Organization:
USAA Mutual Funds Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 47 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value. Each Fund is classified as diversified under the 1940 Act.
The accompanying financial statements are those of the following six Funds (collectively, the "Funds" and individually, a "Fund"):
Funds (Legal Name) | Funds (Short Name) | ||||||
USAA Target Retirement Income Fund | Target Income Fund | ||||||
USAA Target Retirement 2020 Fund | Target 2020 Fund | ||||||
USAA Target Retirement 2030 Fund | Target 2030 Fund | ||||||
USAA Target Retirement 2040 Fund | Target 2040 Fund | ||||||
USAA Target Retirement 2050 Fund | Target 2050 Fund | ||||||
USAA Target Retirement 2060 Fund | Target 2060 Fund |
Each Fund is a "fund of funds" in that it invests in a selection of affiliated mutual funds and exchange- traded funds managed by the Funds' Adviser, Victory Capital Management Inc., an affiliate of the Fund.
Each Fund may rely on certain Securities and Exchange Commission ("SEC") exemptive orders or rules that permit funds meeting various conditions to invest in an exchange-traded fund (ETF) in amounts exceeding limits set forth in the Investment Company Act of 1940, as amended, that would otherwise be applicable.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Funds follow the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.
Investment Valuation:
The Funds record investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds' investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
26
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
The Adviser has established the Pricing and Liquidity Committee (the "Committee"), and subject to Trust's Board of Trustees (the "Board") oversight, the Committee administers and oversees the Funds' valuation policies and procedures, which are approved by the Board.
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Investments in the underlying affiliated Funds and other open-end investment companies, other than ETFs, are valued at their net asset value ("NAV") at the end of each business day and are categorized in Level 1 of the fair value hierarchy.
The underlying affiliated Funds have specific valuation procedures. In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed on the Schedule of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Target Income Fund | |||||||||||||||||||
Affiliated Exchange-Traded Funds | $ | 32,809 | $ | — | $ | — | $ | 32,809 | |||||||||||
Affiliated Munds Funds | 274,857 | — | — | 274,857 | |||||||||||||||
Collateral for Securities Loaned | 426 | — | — | 426 | |||||||||||||||
Total | $ | 308,092 | $ | — | $ | — | $ | 308,092 | |||||||||||
Target 2020 Fund | |||||||||||||||||||
Affiliated Exchange-Traded Funds | $ | 60,289 | $ | — | $ | — | $ | 60,289 | |||||||||||
Affiliated Munds Funds | 463,687 | — | — | 463,687 | |||||||||||||||
Total | $ | 523,976 | $ | — | $ | — | $ | 523,976 | |||||||||||
Target 2030 Fund | |||||||||||||||||||
Affiliated Exchange-Traded Funds | $ | 258,974 | $ | — | $ | — | $ | 258,974 | |||||||||||
Affiliated Munds Funds | 978,567 | — | — | 978,567 | |||||||||||||||
Collateral for Securities Loaned | 187 | — | — | 187 | |||||||||||||||
Total | $ | 1,237,728 | $ | — | $ | — | $ | 1,237,728 |
27
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Target 2040 Fund | |||||||||||||||||||
Affiliated Exchange-Traded Funds | $ | 359,454 | $ | — | $ | — | $ | 359,454 | |||||||||||
Affiliated Munds Funds | 1,021,114 | — | — | 1,021,114 | |||||||||||||||
Total | $ | 1,380,568 | $ | — | $ | — | $ | 1,380,568 | |||||||||||
Target 2050 Fund | |||||||||||||||||||
Affiliated Exchange-Traded Funds | $ | 227,511 | $ | — | $ | — | $ | 227,511 | |||||||||||
Affiliated Munds Funds | 569,658 | — | — | 569,658 | |||||||||||||||
Collateral for Securities Loaned | 2,801 | — | — | 2,801 | |||||||||||||||
Total | $ | 799,970 | $ | — | $ | — | $ | 799,970 | |||||||||||
Target 2060 Fund | |||||||||||||||||||
Affiliated Exchange-Traded Funds | $ | 31,639 | $ | — | $ | — | $ | 31,639 | |||||||||||
Affiliated Munds Funds | 77,113 | — | — | 77,113 | |||||||||||||||
Collateral for Securities Loaned | 18 | — | — | 18 | |||||||||||||||
Total | $ | 108,770 | $ | — | $ | — | $ | 108,770 |
For the six months ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
Investment Companies:
Exchange-Traded Funds:
The Funds may invest in ETFs, the shares of which are bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. The Funds may purchase shares of an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity of an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.
Open-End Funds:
The Funds may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Dividend income and capital gain distributions from the underlying USAA Mutual Funds are recorded on the ex-dividend date. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
28
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Securities Lending:
The Funds, through a securities lending agreement with Citibank, N.A. ("Citibank"), may lend securities to qualified financial institutions, such as certain broker-dealers, to earn additional income, net of income retained by Citibank. Borrowers are required to secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are cured the next business day once the shortfall exceeds $100 thousand. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments, primarily open-end investment companies. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five business days. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Funds' agreement with Citibank does not include master netting provisions. Non- cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed on each Fund's Schedule of Portfolio of Investments and Financial Statements while non-cash collateral is not included. The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of June 30, 2020:
Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||||||
Target Income Fund | $ | 411 | $ | — | $ | 426 | |||||||||
Target 2030 Fund | 182 | — | 187 | ||||||||||||
Target 2050 Fund | 2,738 | — | 2,801 | ||||||||||||
Target 2060 Fund | 17 | — | 18 |
Federal Income Taxes:
It is each Fund's policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.
Management of the Funds have reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which includes the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
Allocations:
Expenses directly attributable to the Funds are charged to the Funds, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
29
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
3. Purchases and Sales:
Cost of purchases and proceeds from sales/maturities of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2020, were as follows (amounts in thousands):
Excluding U.S. Government Securities | |||||||||||
Purchases | Sales | ||||||||||
Target Income Fund | $ | 26,266 | $ | 52,010 | |||||||
Target 2020 Fund | 46,663 | 97,138 | |||||||||
Target 2030 Fund | 89,800 | 141,938 | |||||||||
Target 2040 Fund | 75,219 | 121,890 | |||||||||
Target 2050 Fund | 56,708 | 78,661 | |||||||||
Target 2060 Fund | 13,251 | 10,459 |
There were no purchases and sales of U.S. government securities during the six months ended June 30, 2020.
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the SEC. The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC. The Adviser does not receive any fees from the Funds for these services.
Administration and Servicing Fees:
VCM serves as the Funds' administrator and fund accountant under a Fund Administration, Servicing and Accounting Agreement, VCM does not receive any fees from the Funds for these services.
The Funds (as part of the Trust) have entered into an agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration, and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. Funds in the Trust, Victory Variable Insurance Funds, Victory Portfolios, and Victory Portfolios II (collectively, the "Victory Funds Complex") in the aggregate, compensate the Adviser for these services. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Compliance fees.
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Funds pursuant to a Sub-Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Funds reimburse VCM and Citi for reasonable out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Funds under the Fund Administration, Servicing, and Accounting Agreement. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Sub-Administration fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), provides transfer agency services to the Funds. VCTA does not receive any fees from the Funds for these services.
FIS Investor Services LLC serves as sub-transfer agent and dividend disbursing agent for the Funds pursuant to a Sub-Transfer Agent Agreement between VCTA and FIS Investor Services LLC. VCTA provides FIS Investor Services LLC a fee for providing these services.
30
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Distributor/Underwriting Services:
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Funds pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Advisers, Inc.
Other Fees:
Citibank serves as the Funds' custodian.
K&L Gates LLP provides legal services to the Trust.
The Adviser has entered into an expense limitation agreement with the Funds until at least June 30, 2021 (and until at least July 31, 2021 with respect to the Target Income Fund and Target 2020 Fund). Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred in any fiscal year exceed the expense limit for each respective Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures, which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limits (excluding voluntary waivers) are as follows:
In effect July 1, 2019 until June 30, 2021 | |||||||
Target Income Fund | 0.07 | %(a) | |||||
Target 2020 Fund | 0.04 | %(a) | |||||
Target 2030 Fund | 0.03 | % | |||||
Target 2040 Fund | 0.02 | % | |||||
Target 2050 Fund | 0.04 | % | |||||
Target 2060 Fund | 0.10 | % |
(a) In effect until July 31, 2021.
Under this expense limitation agreement, the Funds have agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. As of June 30, 2020, the following amounts are available to be repaid to the Adviser (amounts in thousands):
Expires 12/31/22 | Expires 12/31/23 | Total | |||||||||||||
Target 2030 Fund | $ | 1 | $ | — | $ | 1 | |||||||||
Target 2040 Fund | 1 | 12 | 13 | ||||||||||||
Target 2060 Fund | 54 | 47 | 101 |
The Adviser, may voluntarily waive or reimburse additional fees to assist the Funds in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Funds are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for six months ended June 30, 2020.
Certain officers and/or interested trustees of the Funds are also officers and/or employees of the Adviser, Administrator, Sub-Administrator, Sub-Fund Accountant, and Legal.
5. Risks:
The Funds may be subject to other risks in addition to these identified risks.
Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region.
31
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Geopolitical and other risks, including war, terrorism, trade disputes, political or economic dysfunction within some nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as the coronavirus (or COVID-19), may result in, among other things, closing borders, disruptions to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer activity, as well as general concern and uncertainty. The impact may be short-term or may last for extended periods.
The COVID-19 pandemic, which has spread rapidly across the world, has led and will continue to lead for an unknown period of time to disruptions in local, regional, national and global markets and economies. Among other things, the outbreak has resulted in, and until fully resolved is likely to continue to result in, among other things (1) government imposition of various forms of "stay-at-home" orders and the closing of "non-essential" businesses, resulting in significant disruption to the businesses of many issuers as well as lay-offs of employees; (2) increased requests by issuers of debt instruments for amendments and waivers of agreements to avoid default and increased defaults; (3) volatility and disruption of markets, including greater volatility in pricing and spreads; and (4) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general.
The risks of each Fund directly correspond to the risks of the underlying affiliated funds in which each Fund invests. By investing in the underlying affiliated funds, the Fund has exposure to the risk of many different areas of the market. The degree to which the risks described below apply to the Fund varies according to the Fund's asset allocation. For instance, the more the Fund is allocated to stock funds, the greater the risk associated with equity securities. The Funds are also subject to asset allocation risk (i.e., the risk that allocations will not produce the intended results) and to management risk (i.e., the risk that the selection of underlying affiliated funds will not produce the intended results).
In managing a Fund that invests in underlying affiliated funds, the Adviser may have conflicts of interest in allocating the Fund's assets among the various underlying affiliated funds. This is because the fees payable by some of the underlying affiliated funds to the Adviser and/or its affiliates are higher than the fees payable by other underlying affiliated funds, and because the Adviser also manages and administers the underlying affiliated funds.
Overall stock market risks may affect the value of each Fund. Domestic and international factors such as political events, war, trade disputes, interest rate levels and other fiscal and monetary policy changes, pandemics and other public health crises, and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. The impact of these and other factors may be short-term or may last for extended periods.
6. Borrowing and Interfund Lending:
Line of Credit:
For the six months ended June 30, 2020, the Victory Funds Complex participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date of June 28, 2021. Under the agreement with Citibank, the Victory Funds Complex and USAA Mutual Funds Complex, combined, may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or emergency cash needs. For the six months ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is presented on the Statements of Operations under Line of credit fees.
32
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
The Funds had no borrowings with Citibank during the six months ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Funds to directly lend and borrow money to or from any other Fund in the Victory Funds Complex relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any, during the period are reflected on the Statements of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the six months ended June 30, 2020, are reflected on the Statements of Operations under Income on interfund lending.
The average borrowing and lending for the days outstanding and average interest rate for each Fund during the six months ended June 30, 2020 were as follows (amounts in thousands):
Borrower or Lender | Amount Outstanding at June 30, 2020 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||||||
Target Income Fund | Borrower | $ | — | $ | 930 | 3 | 0.64 | % | $ | 930 | |||||||||||||||||
Target 2020 Fund | Borrower | — | 1,672 | 3 | 2.15 | % | 1,909 |
* For the six months ended June 30, 2020, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
Distributions of net investment income, if any, are made quarterly by Target Income Fund and annually by each of the other Funds. Distributable net realized gains, if any, are declared and paid at least annually by each Fund. The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Funds may be reclassified as an offset to capital on the accompanying Statements of Assets and Liabilities.
The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2020.
During the most recent tax year ended December 31, 2019. the Funds had no capital loss carryforwards, for federal income tax purposes.
8. Affiliated Securities:
An affiliated security is a security in which the Fund has ownership of at least 5% of the security's outstanding voting shares or an investment company managed by VCM. The Funds do not invest in affiliated underlying funds for the purpose of exercising management or control. These underlying funds are noted as affiliated on each Fund's Schedule of Portfolio Investments. The affiliated underlying
33
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
fund's annual or semiannual reports may be viewed at usaa.com. Transactions in affiliated securities during the six months ended June 30, 2020 were as follows (amount in thousands):
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
Target Income | |||||||||||||||||||||||||||||||
VictoryShares Dividend Accelerator ETF | $ | 3,224 | $ | 1,024 | $ | — | $ | — | $ | 19 | $ | 4,267 | $ | 24 | |||||||||||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 1,518 | — | — | — | (246 | ) | 1,272 | 9 | |||||||||||||||||||||||
VictoryShares International High Div Volatility Wtd ETF | 1,906 | — | — | — | (487 | ) | 1,419 | 20 | |||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | 1,902 | 294 | — | — | (189 | ) | 2,007 | 17 | |||||||||||||||||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 1,417 | 2,203 | (618 | ) | (88 | ) | 115 | 3,029 | 20 | ||||||||||||||||||||||
VictoryShares U.S. Multi- Factor Minimum Volatility ETF | 2,577 | — | — | — | (182 | ) | 2,395 | 23 | |||||||||||||||||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 432 | — | (320 | ) | (85 | ) | (27 | ) | — | 6 | |||||||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 3,920 | 299 | — | — | (555 | ) | 3,664 | 6 | |||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 6,177 | 578 | (1,000 | ) | (163 | ) | (527 | ) | 5,065 | 42 | |||||||||||||||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 2,089 | 1,023 | (305 | ) | (69 | ) | 123 | 2,861 | 10 | ||||||||||||||||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 8,083 | 586 | (773 | ) | (142 | ) | (924 | ) | 6,830 | 52 | |||||||||||||||||||||
USAA Capital Growth Fund Institutional Shares | 951 | — | (958 | ) | 10 | (3 | ) | — | — | ||||||||||||||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 33,193 | 1,467 | (1,496 | ) | (96 | ) | (2,859 | ) | 30,209 | — | |||||||||||||||||||||
USAA Government Securities Fund Institutional Shares | 98,362 | 953 | (17,690 | ) | 277 | 3,052 | 84,954 | 1,126 | |||||||||||||||||||||||
USAA Growth Fund Institutional Shares | 4,072 | — | (333 | ) | (39 | ) | 412 | 4,112 | — | ||||||||||||||||||||||
USAA High Income Fund Institutional Shares | 6,518 | 7,217 | (2,103 | ) | (143 | ) | (90 | ) | 11,399 | 218 |
34
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
USAA Income Fund Institutional Shares | $ | 63,981 | $ | 748 | $ | (17,045 | ) | $ | 252 | $ | 526 | $ | 48,462 | $ | 747 | ||||||||||||||||
USAA Income Stock Fund Institutional Shares | 2,101 | 2,279 | — | — | 72 | 4,452 | 59 | ||||||||||||||||||||||||
USAA Precious Metals and Minerals Fund Institutional Shares | 1,070 | — | — | — | 268 | 1,338 | — | ||||||||||||||||||||||||
USAA Short-Term Bond Fund Institutional Shares | 47,454 | 769 | (2,772 | ) | (107 | ) | (56 | ) | 45,288 | 672 | |||||||||||||||||||||
USAA Small Cap Stock Fund Institutional Shares | 2,596 | 1,027 | (314 | ) | (77 | ) | 178 | 3,410 | — | ||||||||||||||||||||||
USAA Target Managed Allocation Fund | 17,755 | 1,730 | (3,076 | ) | (151 | ) | (326 | ) | 15,932 | — | |||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 3,185 | 1,020 | (621 | ) | (181 | ) | (687 | ) | 2,716 | — | |||||||||||||||||||||
Victory Market Neutral Income Fund Class I | 13,756 | 149 | (2,270 | ) | 23 | 231 | 11,889 | 150 | |||||||||||||||||||||||
Victory RS International Fund Class R6 | 4,949 | 2,286 | (158 | ) | (16 | ) | (420 | ) | 6,641 | — | |||||||||||||||||||||
Victory Trivalent International Core Equity Fund Class R6 | 4,062 | 614 | (158 | ) | (13 | ) | (450 | ) | 4,055 | — | |||||||||||||||||||||
$ | 337,250 | $ | 26,266 | $ | (52,010 | ) | $ | (808 | ) | $ | (3,032 | ) | $ | 307,666 | $ | 3,201 | |||||||||||||||
Target 2020 | |||||||||||||||||||||||||||||||
VictoryShares Dividend Accelerator ETF | $ | 9,044 | $ | 980 | $ | (2,870 | ) | $ | 156 | $ | (304 | ) | $ | 7,006 | $ | 41 | |||||||||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 2,710 | 232 | — | — | (481 | ) | 2,461 | 18 | |||||||||||||||||||||||
VictoryShares International High Div Volatility Wtd ETF | 2,900 | — | — | — | (741 | ) | 2,159 | 30 | |||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | 3,209 | 984 | — | — | (124 | ) | 4,069 | 34 | |||||||||||||||||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 34 | 2,510 | — | — | 638 | 3,182 | 13 | ||||||||||||||||||||||||
VictoryShares U.S. Multi- Factor Minimum Volatility ETF | 8,625 | — | (2,232 | ) | 67 | (553 | ) | 5,907 | 63 | ||||||||||||||||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 1,382 | — | (521 | ) | (139 | ) | (192 | ) | 530 | 20 |
35
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | $ | 1,654 | $ | 2,600 | $ | — | $ | — | $ | 134 | $ | 4,388 | $ | 46 | |||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 5,903 | 762 | — | — | (783 | ) | 5,882 | 9 | |||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 8,884 | 980 | — | — | (1,201 | ) | 8,663 | 72 | |||||||||||||||||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 2,893 | 1,735 | (519 | ) | (103 | ) | 297 | 4,303 | 14 | ||||||||||||||||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 12,962 | 996 | (529 | ) | (78 | ) | (1,612 | ) | 11,739 | 84 | |||||||||||||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 62,832 | 2,722 | (10,228 | ) | 1,214 | (5,900 | ) | 50,640 | — | ||||||||||||||||||||||
USAA Government Securities Fund Institutional Shares | 162,802 | 4,913 | (27,483 | ) | 433 | 5,177 | 145,842 | 1,930 | |||||||||||||||||||||||
USAA Growth Fund Institutional Shares | 9,418 | — | (2,172 | ) | 96 | 804 | 8,146 | — | |||||||||||||||||||||||
USAA High Income Fund Institutional Shares | 14,501 | 11,869 | (6,857 | ) | 493 | (1,092 | ) | 18,914 | 369 | ||||||||||||||||||||||
USAA Income Fund Institutional Shares | 107,231 | 1,248 | (29,761 | ) | (405 | ) | 1,615 | 79,928 | 1,248 | ||||||||||||||||||||||
USAA Income Stock Fund Institutional Shares | 6,595 | 1,610 | (1,992 | ) | (23 | ) | (450 | ) | 5,740 | 79 | |||||||||||||||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | — | * | — | — | — | — | — | * | — | ||||||||||||||||||||||
USAA Precious Metals and Minerals Fund Institutional Shares | 1,879 | — | — | — | 470 | 2,349 | — | ||||||||||||||||||||||||
USAA Short-Term Bond Fund Institutional Shares | 77,548 | 3,934 | (4,924 | ) | (217 | ) | (64 | ) | 76,277 | 1,129 | |||||||||||||||||||||
USAA Small Cap Stock Fund Institutional Shares | 4,551 | 1,251 | — | — | (72 | ) | 5,730 | — | |||||||||||||||||||||||
USAA Target Managed Allocation Fund | 32,224 | 2,450 | (5,992 | ) | 297 | (1,182 | ) | 27,797 | — | ||||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 8,951 | — | (1,058 | ) | (226 | ) | (1,588 | ) | 6,079 | — |
36
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
Victory Market Neutral Income Fund Class I | $ | 18,810 | $ | 245 | $ | — | $ | — | $ | 415 | $ | 19,470 | $ | 245 | |||||||||||||||||
Victory RS International Fund Class R6 | 7,455 | 3,088 | — | — | (459 | ) | 10,084 | — | |||||||||||||||||||||||
Victory Trivalent International Core Equity Fund Class R6 | 5,680 | 1,554 | — | — | (543 | ) | 6,691 | — | |||||||||||||||||||||||
$ | 580,677 | $ | 46,663 | $ | (97,138 | ) | $ | 1,565 | $ | (7,791 | ) | $ | 523,976 | $ | 5,444 | ||||||||||||||||
Target 2030 | |||||||||||||||||||||||||||||||
VictoryShares Dividend Accelerator ETF | $ | 32,985 | $ | 1,056 | $ | — | $ | — | $ | (2,052 | ) | $ | 31,989 | $ | 197 | ||||||||||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 8,809 | 690 | — | — | (1,553 | ) | 7,946 | 57 | |||||||||||||||||||||||
VictoryShares International High Div Volatility Wtd ETF | 13,863 | — | — | — | (3,540 | ) | 10,323 | 145 | |||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | 14,941 | 1,651 | — | — | (1,607 | ) | 14,985 | 129 | |||||||||||||||||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 6,620 | 12,838 | — | — | 121 | 19,579 | 108 | ||||||||||||||||||||||||
VictoryShares U.S. Multi- Factor Minimum Volatility ETF | 29,581 | — | (1,208 | ) | (55 | ) | (2,061 | ) | 26,257 | 259 | |||||||||||||||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 4,665 | — | (1,836 | ) | (490 | ) | (632 | ) | 1,707 | 68 | |||||||||||||||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 5,662 | 7,483 | — | — | 388 | 13,533 | 143 | ||||||||||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 19,391 | 1,125 | — | — | (2,783 | ) | 17,733 | 28 | |||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 45,099 | 2,723 | — | — | (6,874 | ) | 40,948 | 341 | |||||||||||||||||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 12,423 | 5,404 | (2,475 | ) | (484 | ) | 481 | 15,349 | 54 | ||||||||||||||||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 67,376 | 3,214 | (2,490 | ) | (450 | ) | (9,025 | ) | 58,625 | 424 | |||||||||||||||||||||
USAA Capital Growth Fund Institutional Shares | 16,107 | — | (16,308 | ) | 228 | (27 | ) | — | — |
37
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
USAA Global Managed Volatility Fund Institutional Shares | $ | 274,675 | $ | — | $ | (11,106 | ) | $ | (1,485 | ) | $ | (25,684 | ) | $ | 236,400 | $ | — | ||||||||||||||
USAA Government Securities Fund Institutional Shares | 216,385 | 5,825 | (33,038 | ) | 701 | 6,556 | 196,429 | 2,485 | |||||||||||||||||||||||
USAA Growth Fund Institutional Shares | 44,728 | — | (6,692 | ) | 79 | 4,215 | 42,330 | — | |||||||||||||||||||||||
USAA High Income Fund Institutional Shares | 28,545 | 26,765 | (1,034 | ) | (316 | ) | (1,422 | ) | 52,538 | 1,016 | |||||||||||||||||||||
USAA Income Fund Institutional Shares | 129,899 | 3,957 | (41,215 | ) | (10 | ) | 817 | 93,448 | 1,457 | ||||||||||||||||||||||
USAA Income Stock Fund Institutional Shares | 23,572 | 3,696 | — | — | (3,183 | ) | 24,085 | 353 | |||||||||||||||||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | — | * | — | — | — | — | — | * | — | ||||||||||||||||||||||
USAA Precious Metals and Minerals Fund Institutional Shares | 4,245 | — | — | — | 1,064 | 5,309 | — | ||||||||||||||||||||||||
USAA Short-Term Bond Fund Institutional Shares | 54,205 | 3,565 | — | — | (58 | ) | 57,712 | 828 | |||||||||||||||||||||||
USAA Small Cap Stock Fund Institutional Shares | 16,884 | 5,401 | (2,508 | ) | (134 | ) | 187 | 19,830 | — | ||||||||||||||||||||||
USAA Target Managed Allocation Fund | 148,235 | — | (16,817 | ) | (1,851 | ) | (5,484 | ) | 124,083 | — | |||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 45,679 | — | — | — | (9,178 | ) | 36,501 | — | |||||||||||||||||||||||
Victory Market Neutral Income Fund Class I | 26,028 | 273 | (5,211 | ) | 52 | 407 | 21,549 | 271 | |||||||||||||||||||||||
Victory RS International Fund Class R6 | 41,475 | 2,905 | — | — | (3,990 | ) | 40,390 | — | |||||||||||||||||||||||
Victory Trivalent International Core Equity Fund Class R6 | 30,152 | 1,229 | — | — | (3,418 | ) | 27,963 | — | |||||||||||||||||||||||
$ | 1,362,229 | $ | 89,800 | $ | (141,938 | ) | $ | (4,215 | ) | $ | (68,335 | ) | $ | 1,237,541 | $ | 8,363 |
38
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
Target 2040 | |||||||||||||||||||||||||||||||
VictoryShares Dividend Accelerator ETF | $ | 44,510 | $ | 1,221 | $ | — | $ | — | $ | (3,016 | ) | $ | 42,715 | $ | 264 | ||||||||||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 14,838 | 1,258 | — | — | (2,633 | ) | 13,463 | 96 | |||||||||||||||||||||||
VictoryShares International High Div Volatility Wtd ETF | 20,931 | — | — | — | (5,345 | ) | 15,586 | 219 | |||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | 20,889 | 2,506 | — | — | (2,336 | ) | 21,059 | 181 | |||||||||||||||||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 33,818 | 8,690 | (2,777 | ) | (384 | ) | (4,099 | ) | 35,248 | 254 | |||||||||||||||||||||
VictoryShares U.S. Multi- Factor Minimum Volatility ETF | 39,042 | — | — | — | (2,764 | ) | 36,278 | 341 | |||||||||||||||||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 6,212 | — | (2,043 | ) | (545 | ) | (927 | ) | 2,697 | 90 | |||||||||||||||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 3,963 | 2,863 | — | — | 221 | 7,047 | 75 | ||||||||||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 25,944 | 1,221 | — | — | (3,777 | ) | 23,388 | 37 | |||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 60,534 | 2,474 | — | — | (9,627 | ) | 53,381 | 444 | |||||||||||||||||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 20,198 | 4,070 | (1,402 | ) | (263 | ) | (1,722 | ) | 20,881 | 71 | |||||||||||||||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 97,092 | 4,805 | — | — | (14,186 | ) | 87,711 | 610 | |||||||||||||||||||||||
USAA Capital Growth Fund Institutional Shares | 15,897 | — | (16,089 | ) | 284 | (92 | ) | — | — | ||||||||||||||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 374,988 | — | (4,775 | ) | (729 | ) | (36,189 | ) | 333,295 | — | |||||||||||||||||||||
USAA Government Securities Fund Institutional Shares | 139,872 | 1,347 | (33,224 | ) | 1,342 | 3,378 | 112,715 | 1,575 | |||||||||||||||||||||||
USAA Growth Fund Institutional Shares | 61,801 | — | (8,214 | ) | 73 | 5,947 | 59,607 | — |
39
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
USAA High Income Fund Institutional Shares | $ | 22,202 | $ | 27,859 | $ | (1,106 | ) | $ | (338 | ) | $ | (680 | ) | $ | 47,937 | $ | 859 | ||||||||||||||
USAA Income Fund Institutional Shares | 74,931 | 824 | (26,082 | ) | 280 | 158 | 50,111 | 824 | |||||||||||||||||||||||
USAA Income Stock Fund Institutional Shares | 33,377 | 7,349 | — | — | (4,711 | ) | 36,015 | 503 | |||||||||||||||||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | — | * | — | — | — | — | — | * | — | ||||||||||||||||||||||
USAA Precious Metals and Minerals Fund Institutional Shares | 4,722 | — | — | — | 1,182 | 5,904 | — | ||||||||||||||||||||||||
USAA Short-Term Bond Fund Institutional Shares | 20,948 | 251 | — | — | (19 | ) | 21,180 | 306 | |||||||||||||||||||||||
USAA Small Cap Stock Fund Institutional Shares | 25,496 | 3,483 | (5,673 | ) | (430 | ) | (1,263 | ) | 21,613 | — | |||||||||||||||||||||
USAA Target Managed Allocation Fund | 199,630 | — | (17,153 | ) | (3,082 | ) | (7,651 | ) | 171,744 | — | |||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 62,068 | — | — | — | (12,471 | ) | 49,597 | — | |||||||||||||||||||||||
Victory Market Neutral Income Fund Class I | 16,217 | 168 | (3,352 | ) | 34 | 250 | 13,317 | 167 | |||||||||||||||||||||||
Victory RS International Fund Class R6 | 60,941 | 4,146 | — | — | (6,397 | ) | 58,690 | — | |||||||||||||||||||||||
Victory Trivalent International Core Equity Fund Class R6 | 43,654 | 684 | — | — | (4,949 | ) | 39,389 | — | |||||||||||||||||||||||
$ | 1,544,715 | $ | 75,219 | $ | (121,890 | ) | $ | (3,758 | ) | $ | (113,718 | ) | $ | 1,380,568 | $ | 6,916 | |||||||||||||||
Target 2050 | |||||||||||||||||||||||||||||||
VictoryShares Dividend Accelerator ETF | $ | 27,160 | $ | 2,341 | $ | — | $ | — | $ | (1,659 | ) | $ | 27,842 | $ | 170 | ||||||||||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 9,126 | 1,108 | — | — | (1,541 | ) | 8,693 | 56 | |||||||||||||||||||||||
VictoryShares International High Div Volatility Wtd ETF | 11,648 | — | — | — | (2,974 | ) | 8,674 | 122 | |||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | 13,757 | 1,888 | — | — | (2,010 | ) | 13,635 | 119 | |||||||||||||||||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 23,973 | 1,865 | — | — | (2,724 | ) | 23,114 | 154 | |||||||||||||||||||||||
VictoryShares U.S. Multi- Factor Minimum Volatility ETF | 23,300 | — | — | — | (1,650 | ) | 21,650 | 204 |
40
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | $ | 4,015 | $ | — | $ | (1,571 | ) | $ | (485 | ) | $ | (481 | ) | $ | 1,478 | $ | 58 | ||||||||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF | 1,009 | — | — | — | 37 | 1,046 | 11 | ||||||||||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 17,668 | 1,416 | — | — | (2,476 | ) | 16,608 | 26 | |||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 36,824 | 4,429 | — | — | (5,605 | ) | 35,648 | 296 | |||||||||||||||||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 13,331 | 2,294 | (784 | ) | (177 | ) | (1,083 | ) | 13,581 | 46 | |||||||||||||||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | 59,856 | 4,116 | — | — | (8,430 | ) | 55,542 | 382 | |||||||||||||||||||||||
USAA Capital Growth Fund Institutional Shares | 9,036 | — | (9,144 | ) | 164 | (56 | ) | — | — | ||||||||||||||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 229,717 | 1,414 | — | — | (22,352 | ) | 208,779 | — | |||||||||||||||||||||||
USAA Government Securities Fund Institutional Shares | 65,668 | 594 | (39,416 | ) | 2,376 | (296 | ) | 28,926 | 666 | ||||||||||||||||||||||
USAA Growth Fund Institutional Shares | 37,704 | — | (1,477 | ) | (230 | ) | 4,028 | 40,025 | — | ||||||||||||||||||||||
USAA High Income Fund Institutional Shares | 1,145 | 16,205 | — | — | 768 | 18,118 | 205 | ||||||||||||||||||||||||
USAA Income Fund Institutional Shares | 32,893 | 321 | (17,558 | ) | 28 | (304 | ) | 15,380 | 320 | ||||||||||||||||||||||
USAA Income Stock Fund Institutional Shares | 20,076 | 5,114 | — | — | (2,322 | ) | 22,868 | 315 | |||||||||||||||||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | — | * | — | — | — | — | — | * | — | ||||||||||||||||||||||
USAA Precious Metals and Minerals Fund Institutional Shares | 2,653 | — | — | — | 664 | 3,317 | — | ||||||||||||||||||||||||
USAA Short-Term Bond Fund Institutional Shares | 6,348 | 57 | (3,503 | ) | (87 | ) | (70 | ) | 2,745 | 64 |
41
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
USAA Small Cap Stock Fund Institutional Shares | $ | 15,018 | $ | 2,306 | $ | (811 | ) | $ | (172 | ) | $ | (723 | ) | $ | 15,618 | $ | — | ||||||||||||||
USAA Target Managed Allocation Fund | 120,696 | — | (3,125 | ) | (469 | ) | (5,281 | ) | 111,821 | — | |||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 38,870 | — | — | — | (7,810 | ) | 31,060 | — | |||||||||||||||||||||||
Victory Market Neutral Income Fund Class I | 7,317 | 77 | (1,272 | ) | 13 | 121 | 6,256 | 79 | |||||||||||||||||||||||
Victory RS International Fund Class R6 | 35,278 | 7,368 | — | — | (3,937 | ) | 38,709 | — | |||||||||||||||||||||||
Victory Trivalent International Core Equity Fund Class R6 | 25,523 | 3,165 | — | — | (2,652 | ) | 26,036 | — | |||||||||||||||||||||||
$ | 889,609 | $ | 56,078 | $ | (78,661 | ) | $ | 961 | $ | (70,818 | ) | $ | 797,169 | $ | 3,293 | ||||||||||||||||
Target 2060 | |||||||||||||||||||||||||||||||
VictoryShares Dividend Accelerator ETF | $ | 3,477 | $ | 785 | $ | — | $ | — | $ | (174 | ) | $ | 4,088 | $ | 24 | ||||||||||||||||
VictoryShares Emerging Market Volatility Wtd ETF | 1,309 | 162 | — | — | (213 | ) | 1,258 | 8 | |||||||||||||||||||||||
VictoryShares International High Div Volatility Wtd ETF | 1,524 | — | — | — | (389 | ) | 1,135 | 16 | |||||||||||||||||||||||
VictoryShares International Volatility Wtd ETF | 1,855 | 716 | — | — | (281 | ) | 2,290 | 20 | |||||||||||||||||||||||
VictoryShares U.S. 500 Volatility Wtd ETF | 3,092 | 413 | (219 | ) | (29 | ) | (273 | ) | 2,984 | 21 | |||||||||||||||||||||
VictoryShares U.S. Multi- Factor Minimum Volatility ETF | 3,276 | 1 | — | — | (232 | ) | 3,045 | 29 | |||||||||||||||||||||||
VictoryShares U.S. Small Cap High Div Volatility Wtd ETF | 587 | (1 | ) | (214 | ) | (57 | ) | (83 | ) | 232 | 9 | ||||||||||||||||||||
VictoryShares USAA MSCI Emerging Markets Value Momentum ETF | 2,409 | 275 | — | — | (300 | ) | 2,384 | 4 | |||||||||||||||||||||||
VictoryShares USAA MSCI International Value Momentum ETF | 5,337 | 446 | — | — | (863 | ) | 4,920 | 41 | |||||||||||||||||||||||
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF | 1,696 | 315 | (107 | ) | (24 | ) | (139 | ) | 1,741 | 6 |
42
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
Fair Value 12/31/2019 | Purchases at Cost | Proceeds from Sales | Realized Gains (Losses) | Net Change in Unrealized Appreciation/ Depreciation | Fair Value 6/30/2020 | Dividend Income | |||||||||||||||||||||||||
VictoryShares USAA MSCI USA Value Momentum ETF | $ | 7,764 | $ | 845 | $ | — | $ | — | $ | (1,047 | ) | $ | 7,562 | $ | 51 | ||||||||||||||||
USAA Capital Growth Fund Institutional Shares | 1,387 | (1 | ) | (1,404 | ) | 25 | (7 | ) | — | — | |||||||||||||||||||||
USAA Intermediate-Term Bond Fund Institutional Shares | — | * | — | — | — | — | — | * | — | ||||||||||||||||||||||
USAA Global Managed Volatility Fund Institutional Shares | 30,165 | 1,819 | (111 | ) | (15 | ) | (2,992 | ) | 28,866 | — | |||||||||||||||||||||
USAA Government Securities Fund Institutional Shares | 8,716 | 79 | (5,347 | ) | 291 | (14 | ) | 3,725 | 84 | ||||||||||||||||||||||
USAA Growth Fund Institutional Shares | 4,630 | 1 | (197 | ) | (31 | ) | 492 | 4,895 | — | ||||||||||||||||||||||
USAA High Income Fund Institutional Shares | 2 | 3,039 | (274 | ) | 13 | 137 | 2,917 | 38 | |||||||||||||||||||||||
USAA Income Fund Institutional Shares | 4,161 | 43 | (2,282 | ) | 42 | (42 | ) | 1,922 | 44 | ||||||||||||||||||||||
USAA Income Stock Fund Institutional Shares | 2,362 | 1,644 | — | — | (360 | ) | 3,646 | 47 | |||||||||||||||||||||||
USAA Precious Metals and Minerals Fund Institutional Shares | 330 | (1 | ) | — | — | 83 | 412 | — | |||||||||||||||||||||||
USAA Short-Term Bond Fund Institutional Shares | 1 | — | — | — | — | 1 | — | ||||||||||||||||||||||||
USAA Small Cap Stock Fund Institutional Shares | 2,055 | 313 | (111 | ) | (27 | ) | (113 | ) | 2,117 | — | |||||||||||||||||||||
USAA Target Managed Allocation Fund | 15,641 | 149 | — | — | (742 | ) | 15,048 | — | |||||||||||||||||||||||
Victory Integrity Mid-Cap Value Fund Class R6 | 5,432 | — | (109 | ) | (25 | ) | (1,068 | ) | 4,230 | — | |||||||||||||||||||||
Victory Market Neutral Income Fund Class I | 84 | — | (84 | ) | 1 | (1 | ) | — | — | ||||||||||||||||||||||
Victory RS International Fund Class R6 | 4,748 | 1,338 | — | — | (441 | ) | 5,645 | — | |||||||||||||||||||||||
Victory Trivalent International Core Equity Fund Class R6 | 3,171 | 871 | — | — | (353 | ) | 3,689 | — | |||||||||||||||||||||||
$ | 115,211 | $ | 13,251 | $ | (10,459 | ) | $ | 164 | $ | (9,415 | ) | $ | 108,752 | $ | 442 |
* Rounds to less than $1 thousand.
43
USAA Mutual Funds Trust | Notes to Financial Statements — continued June 30, 2020 |
(Unaudited)
9. Subsequent Events:
On June 11, 2020, the Board of the Trust approved a Plan of Reorganization and Termination pursuant to which the USAA Target Retirement 2020 Fund will be reorganized with and into the USAA Target Retirement Income Fund in what is expected to be a tax-free reorganization (the "Reorganization"). The Funds have the same investment objectives, substantially the same principal investment strategies, and the same principal risks. The Reorganization is expected to occur on or about September 26, 2020.
Effective July 20, 2020, the USAA Target Retirement 2020 Fund closed to new investors. Existing shareholders may continue to make additional investments into existing accounts after that date. However, the USAA Target Retirement 2020 Fund will stop accepting purchase requests from existing accounts shortly before the Reorganization is scheduled to occur.
44
USAA Mutual Funds Trust | Supplemental Information June 30, 2020 |
(Unaudited)
Expense Examples
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020.
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Target Income Fund | $ | 1,000.00 | $ | 1,001.10 | $ | 1,024.57 | $ | 0.30 | $ | 0.30 | 0.06 | % | |||||||||||||||
Target 2020 Fund | 1,000.00 | 1,001.70 | 1,024.66 | 0.20 | 0.20 | 0.04 | % | ||||||||||||||||||||
Target 2030 Fund | 1,000.00 | 955.90 | 1,024.76 | 0.10 | 0.10 | 0.02 | % | ||||||||||||||||||||
Target 2040 Fund | 1,000.00 | 930.00 | 1,024.76 | 0.10 | 0.10 | 0.02 | % | ||||||||||||||||||||
Target 2050 Fund | 1,000.00 | 926.80 | 1,024.71 | 0.14 | 0.15 | 0.03 | % | ||||||||||||||||||||
Target 2060 Fund | 1,000.00 | 923.40 | 1,024.37 | 0.48 | 0.50 | 0.10 | % |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800) 539-3863. The information is also included in the Funds' Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Funds voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at www.sec.gov.
45
USAA Mutual Funds Trust | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The USAA Mutual Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the 1940 Act. The LRMP is reasonably designed to assess and manage the Fund's liquidity risk, taking into consideration the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The USAA Mutual Funds' Board of Trustees approved the appointment of the Fund's investment adviser, Victory Capital, as the administrator of the LRMP. At an in-person meeting held on February 26, 2020, Victory Capital provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
Victory Capital manages liquidity risks associated with the Fund's investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of the Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, Victory Capital has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by Victory Capital. Victory Capital reviews the preliminary liquidity classifications, and, when appropriate, considers other information including input from the Fund's portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from Victory Capital concluded that the Fund did not experience any significant liquidity challenges during the covered period, and the Fund's LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Victory Capital to oversee and manage liquidity risk and ensure the Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in the Fund. During the review period, the Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Fund has not adopted a Highly Liquid Investment Minimum. The Fund's investments were below the limitation on illiquid investments during the review period. Additionally, Victory Capital indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
46
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
15935 La Cantera Pkwy
Building Two
San Antonio, Texas 78256
Visit our website at: | Call | ||||||
vcm.com | (800) 235-8396 |
88219-0820
JUNE 30, 2020
Semi Annual Report
USAA Ultra Short-Term Bond Fund
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on VictoryFunds.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by notifying your financial intermediary directly, or if you are a direct investor, by calling (800) 235-8396 or logging on to usaa.com. Effective on or about November 6, 2020, a shareholder who has an account directly with the Fund will need to submit their request via email to TA.Processing@FISGlobal.com. Your election to receive reports in paper will apply to all funds held with the USAA Mutual Funds or your financial intermediary.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds. USAA Mutual Funds are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Financial Statements | |||||||
Schedule of Portfolio Investments | 4 | ||||||
Statement of Assets and Liabilities | 14 | ||||||
Statement of Operations | 15 | ||||||
Statements of Changes in Net Assets | 16 | ||||||
Financial Highlights | 18 | ||||||
Notes to Financial Statements | 22 | ||||||
Supplemental Information | 31 | ||||||
Proxy Voting and Portfolio Holdings Information | 31 | ||||||
Expense Examples | 31 | ||||||
Liquidity Risk Management Program | 32 | ||||||
Privacy Policy (inside back cover) |
This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by Victory Capital Management Inc. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund.
IRA DISTRIBUTION WITHHOLDING DISCLOSURE
We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state's tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election, or change or revoke a prior withholding election, call (800) 235-8396.
If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution.
For more specific information, please consult your tax adviser.
1
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | June 30, 2020 |
(Unaudited)
Investment Objective & Portfolio Holdings:
The Fund's investment objective seeks to provide high current income consistent with preservation of principal.
Top 10 Holdings*
June 30, 2020
(% of Net Assets)
Capital One NA | 1.2 | % | |||||
GLP Capital LP, Term Loan A1 | 1.1 | % | |||||
Western Midstream Operating LP | 1.1 | % | |||||
FMC Corp. | 1.1 | % | |||||
Cooperatieve Rabobank UA | 1.1 | % | |||||
Western Digital Corp. | 1.0 | % | |||||
Air Canada Pass Through Trust | 1.0 | % | |||||
First Investors Auto Owner Trust | 1.0 | % | |||||
BBVA Bancomer SA | 0.9 | % | |||||
Royal Bank of Scotland Group PLC | 0.9 | % |
*Does not include futures, money market instruments and short-term investments purchased with cash collateral from securities loaned.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund (continued) | June 30, 2020 |
(Unaudited)
Portfolio Ratings Mix*
June 30, 2020
(% of Net Assets)
This chart reflects the highest long-term rating from a Nationally Recognized Statistical Rating Organization (NRSRO), with the four highest long-term credit ratings labeled, in descending order of credit quality, AAA, AA, A, and BBB. These categories represent investment-grade quality. NRSRO ratings are shown because they provide independent analysis of the credit quality of the Fund's investments. Victory Capital Management, Inc. ("Adviser") also performs its own fundamental credit analysis of each security. As part of its fundamental credit analysis, the Adviser considers various criteria, including industry specific actions, peer comparisons, payment ranking, and structure specific characteristics. Any of the Fund's securities that are not rated by an NRSRO appear in the chart above as "Unrated," but these securities are analyzed and monitored by the Adviser on an ongoing basis. Government securities that are issued or guaranteed as to principal and interest by the U.S. government and pre-refunded and escrowed-to-maturity municipal bonds that are not rated are treated as AAA for credit quality purposes.
** Less than 0.05%
3
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Asset-Backed Securities (12.9%) | |||||||||||
ARI Fleet Lease Trust, Series 2017-A Class A3, 2.28%, 4/15/26, Callable 10/15/20 @ 100 (a) | $ | 1,000 | $ | 1,004 | |||||||
ARI Fleet Lease Trust, Series 2017-A Class A2, 1.91%, 4/15/26, Callable 10/15/20 @ 100 (a) | 4 | 4 | |||||||||
Avis Budget Rental Car Funding AESOP LLC, Series 2016-1A Class C, 4.94%, 6/20/22 (a) | 2,000 | 1,972 | |||||||||
Bank of The West Auto Trust, Series 2019-1 Class A2, 2.40%, 10/17/22, Callable 7/15/23 @ 100 (a) | 561 | 565 | |||||||||
Bank of The West Auto Trust, Series 2019-1 Class A3, 2.43%, 4/15/24, Callable 7/15/23 @ 100 (a) | 1,000 | 1,024 | |||||||||
Bank of The West Auto Trust, Series 2019-1 Class C, 2.90%, 4/15/25, Callable 7/15/23 @ 100 (a) | 1,000 | 1,015 | |||||||||
BCC Funding Corp. XVI LLC, Series 2019-1A Class A2, 2.46%, 8/20/24, Callable 6/20/23 @ 100 (a) | 1,000 | 1,001 | |||||||||
Canadian Pacer Auto Receivables Trust, Series 2018-1A Class C, 3.82%, 4/19/24, Callable 5/19/21 @ 100 (a) | 1,500 | 1,529 | |||||||||
CarMax Auto Owner Trust, Series 2020-2 Class A2B, 1.48% (LIBOR03M+130bps), 1/17/23, Callable 11/15/23 @ 100 (b) | 500 | 505 | |||||||||
Credit Acceptance Auto Loan Trust, Series 2018-1A Class B, 3.60%, 4/15/27, Callable 6/15/21 @ 100 (a) | 1,000 | 1,021 | |||||||||
Credit Acceptance Auto Loan Trust, Series 2017-3A Class A, 2.65%, 6/15/26 (a) | 260 | 262 | |||||||||
Dell Equipment Finance Trust, Series 2017-2 Class D, 3.27%, 10/23/23, Callable 8/22/20 @ 100 (a) | 350 | 350 | |||||||||
Drive Auto Receivables Trust, Series 2018-1 Class D, 3.81%, 5/15/24, Callable 3/15/22 @ 100 | 1,190 | 1,207 | |||||||||
Drive Auto Receivables Trust, Series 2018-2 Class D, 4.14%, 8/15/24, Callable 7/15/22 @ 100 | 2,000 | 2,049 | |||||||||
Exeter Automobile Receivables Trust, Series 2019-4A Class A, 2.18%, 1/17/23, Callable 9/15/23 @ 100 (a) | 466 | 468 | |||||||||
Exeter Automobile Receivables Trust, Series 2020-1A Class C, 2.49%, 1/15/25, Callable 12/15/23 @ 100 (a) | 682 | 682 | |||||||||
Exeter Automobile Receivables Trust, Series 2018-3A Class B, 3.46%, 10/17/22, Callable 11/15/22 @ 100 (a) | 420 | 420 | |||||||||
First Investors Auto Owner Trust, Series 2016-2A Class D, 3.35%, 11/15/22, Callable 5/15/21 @ 100 (a) | 2,250 | 2,277 | |||||||||
Flagship Credit Auto Trust, Series 2016-1 Class C, 6.22%, 6/15/22, Callable 12/15/20 @ 100 (a) | 1,891 | 1,923 | |||||||||
GreatAmerica Leasing Receivables Funding LLC, Series 2017-1 Class A4, 2.36%, 1/20/23, Callable 12/20/20 @ 100 (a) | 497 | 499 | |||||||||
Hertz Vehicle Financing LP, Series 2019-1A Class B, 4.10%, 3/25/23 (a) | 500 | 482 | |||||||||
HPEFS Equipment Trust, Series 2019-1A Class B, 2.32%, 9/20/29, Callable 7/20/22 @ 100 (a) | 500 | 509 | |||||||||
Hyundai Auto Receivables Trust, Series 2018-A Class B, 3.14%, 6/17/24, Callable 6/15/22 @ 100 | 1,000 | 1,034 | |||||||||
Kubota Credit Owner Trust, Series 2020-1A Class A2, 1.92%, 12/15/22, Callable 10/15/23 @ 100 (a) | 500 | 506 | |||||||||
Master Credit Card Trust, Series 2019-2A Class C, 2.83%, 7/21/21 (a) | 500 | 503 | |||||||||
NP SPE II LLC, Series 2019-2A Class A1, 2.86%, 11/19/49 (a) | 2,039 | 2,033 |
See notes to financial statements.
4
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
NP SPE II LLC, Series 2017-1A Class A1, 3.37%, 10/21/47, Callable 10/20/27 @ 100 (a) | $ | 220 | $ | 218 | |||||||
OSCAR US Funding Trust LLC, Series 2018-1A Class A3, 3.23%, 5/10/22 (a) | 1,115 | 1,124 | |||||||||
OSCAR US Funding Trust LLC, Series 2018-2A Class A2A, 3.15%, 8/10/21 (a) | 50 | 50 | |||||||||
Santander Drive Auto Receivables Trust, Series 2018-5 Class C, 3.81%, 12/16/24, Callable 8/15/22 @ 100 | 1,000 | 1,014 | |||||||||
Santander Drive Auto Receivables Trust, Series 2020-1 Class A2A, 2.07%, 1/17/23, Callable 2/15/25 @ 100 (c) | 500 | 504 | |||||||||
SCF Equipment Leasing LLC, Series 2017-2A Class A, 3.41%, 12/20/23, Callable 7/20/20 @ 100 (a) | 755 | 757 | |||||||||
SCF Equipment Leasing LLC, Series 2019-1A Class B, 3.49%, 1/20/26, Callable 7/20/20 @ 100 (a) | 1,000 | 1,015 | |||||||||
SCF Equipment Leasing LLC, Series 2019-1A Class A1, 3.04%, 3/20/23, Callable 7/20/20 @ 100 (a) | 627 | 627 | |||||||||
Total Asset-Backed Securities (Cost $30,080) | 30,153 | ||||||||||
Collateralized Mortgage Obligations (13.3%) | |||||||||||
Austin Fairmont Hotel Trust, Series 2019-FAIR Class B, 1.43% (LIBOR01M+125bps), 9/15/32 (a) (b) | 1,000 | 937 | |||||||||
Austin Fairmont Hotel Trust, Series 2019-FAIR Class C, 1.63% (LIBOR01M+145bps), 9/15/32 (a) (b) | 1,000 | 933 | |||||||||
BBCMS Mortgage Trust, Series 2019-BWAY Class B, 1.49% (LIBOR01M+131bps), 11/25/34 (a) (b) | 1,000 | 941 | |||||||||
BX Commercial Mortgage Trust, Series 2020-BXLP Class C, 1.30% (LIBOR01M+112bps), 12/15/29 (a) (b) | 1,000 | 973 | |||||||||
BX Commercial Mortgage Trust, Series 2019-XL Class C, 1.43% (LIBOR01M+125bps), 10/15/36 (a) (b) | 955 | 933 | |||||||||
CIFC Funding Ltd., Series 2015-5A Class A1R, 1.85% (LIBOR03M+86bps), 10/25/27, Callable 7/25/20 @ 100 (a) (b) | 2,000 | 1,960 | |||||||||
CIFC Funding Ltd., Series 2012-2RA Class A1, 1.94% (LIBOR03M+80bps), 1/20/28, Callable 7/20/20 @ 100 (a) (b) | 990 | 970 | |||||||||
COMM Mortgage Trust, Series 2020-CBM Class C, 3.40%, 11/13/39 (a) | 500 | 471 | |||||||||
COMM Mortgage Trust, Series 2019-521F Class B, 1.28% (LIBOR01M+110bps), 6/15/34 (a) (b) | 1,500 | 1,436 | |||||||||
COSMO Mortgage Trust, Series 2017-CSMO Class C, 1.68% (LIBOR01M+150bps), 11/15/36 (a) (b) | 1,500 | 1,406 | |||||||||
FREMF Mortgage Trust, Series 2017-K724 Class B, 3.60%, 11/25/23 (a) (d) | 1,000 | 1,032 | |||||||||
GS Mortgage Securities Trust, Series 2011-GC3 Class X, 0.81%, 3/10/44 (a) (d) (e) | 18,075 | 31 | |||||||||
Holmes Master Issuer PLC, Series 2018-1A Class A2, 1.58% (LIBOR03M+36bps), 10/15/54, Callable 10/15/20 @ 100 (a) (b) | 743 | 743 | |||||||||
Hospitality Mortgage Trust, Series 2019-HIT Class B, 1.53% (LIBOR01M+135bps), 11/15/36 (a) (b) | 1,229 | 1,140 | |||||||||
Hospitality Mortgage Trust, Series 19-HIT Class A, 1.18% (LIBOR01M+100bps), 11/15/36 (a) (b) | 861 | 813 | |||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13 Class B, 4.21%, 1/15/46 (d) | 2,000 | 2,038 | |||||||||
JPMBB Commercial Mortgage Securities Trust, Series 2014-C19 Class XA, 0.90%, 4/15/47 (d) (e) | 5,872 | 105 | |||||||||
KNDL Mortgage Trust, Series 2019-KNSQ Class B, 1.13% (LIBOR01M+95bps), 5/15/36 (a) (b) | 1,000 | 974 |
See notes to financial statements.
5
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Madison Park Funding Ltd., Series 2013-11A Class AR, 2.20% (LIBOR03M+116bps), 7/23/29, Callable 7/23/20 @ 100 (a) (b) | $ | 2,000 | $ | 1,957 | |||||||
Magnetite Ltd., Series 2019-21A Class A, 2.42% (LIBOR03M+128bps), 4/20/30, Callable 7/20/20 @ 100 (a) (b) | 1,500 | 1,476 | |||||||||
Morgan Stanley Capital I Trust, Series 2019-NUGS Class B, 2.80% (LIBOR01M+130bps), 12/15/21 (a) (b) | 1,154 | 1,116 | |||||||||
Morgan Stanley Capital I Trust, Series 2017-CLS Class A, 0.88% (LIBOR01M+70bps), 11/15/34 (a) (b) | 2,000 | 1,986 | |||||||||
Palmer Square Loan Funding Ltd., Series 2019-4A Class A1, 1.92% (LIBOR03M+90bps), 10/24/27, Callable 10/24/20 @ 100 (a) (b) | 868 | 859 | |||||||||
Palmer Square Loan Funding Ltd., Series 2018-5A Class A1, 1.99% (LIBOR03M+85bps), 1/20/27, Callable 7/20/20 @ 100 (a) (b) | 656 | 644 | |||||||||
Palmer Square Loan Funding Ltd., Series 2018-2A Class A2, 2.27% (LIBOR03M+105bps), 7/15/26, Callable 7/15/20 @ 100 (a) (b) | 500 | 482 | |||||||||
Palmer Square Loan Funding Ltd., Series 2018-2A Class A1, 1.87% (LIBOR03M+65bps), 7/15/26, Callable 7/15/20 @ 100 (a) (b) | 675 | 664 | |||||||||
Sound Point CLO VIII-R Ltd., Series 2015-1RA Class A, 2.58% (LIBOR03M+136bps), 4/15/30, Callable 7/15/20 @ 100 (a) (b) | 1,500 | 1,465 | |||||||||
Sound Point CLO X Ltd., Series 2015-3A Class AR, 2.03% (LIBOR03M+89bps), 1/20/28, Callable 7/20/20 @ 100 (a) (b) | 967 | 955 | |||||||||
Tryon Park CLO Ltd., Series 2013-1A Class A1SR, 2.11% (LIBOR03M+89bps), 4/15/29, Callable 7/15/20 @ 100 (a) (b) | 1,610 | 1,581 | |||||||||
Total Collateralized Mortgage Obligations (Cost $31,825) | 31,021 | ||||||||||
Senior Secured Loans (2.4%) | |||||||||||
Boyd Gaming Corp., Term Loan A1, 3.25% (LIBOR01W+275bps), 9/15/21 (b) | 706 | 698 | |||||||||
GLP Capital LP, Term Loan A1, 1.68% (LIBOR01M+150bps), 4/28/21 (b) | 2,566 | 2,540 | |||||||||
Western Digital Corp., 2/27/23 (b) (f) (m) | 2,500 | 2,427 | |||||||||
Total Senior Secured Loans (Cost $5,765) | 5,665 | ||||||||||
Corporate Bonds (35.9%) | |||||||||||
Communication Services (1.2%): | |||||||||||
AMC Networks, Inc., 4.75%, 12/15/22, Callable 8/6/20 @ 100.79 | 668 | 670 | |||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital, 2.34% (LIBOR03M+165bps), 2/1/24, Callable 1/1/24 @ 100 (b) | 2,000 | 2,006 | |||||||||
2,676 | |||||||||||
Consumer Discretionary (4.1%): | |||||||||||
Association of American Medical Colleges, 2.12%, 10/1/24 | 1,000 | 1,005 | |||||||||
Daimler Finance North America LLC | |||||||||||
0.81% (LIBOR03M+45bps), 2/22/21 (a) (b) | 1,390 | 1,384 | |||||||||
1.29% (LIBOR03M+90bps), 2/15/22 (a) (b) | 1,000 | 987 | |||||||||
General Motors Co., 1.27% (LIBOR03M+80bps), 8/7/20 (b) | 2,000 | 1,998 | |||||||||
Howard University | |||||||||||
2.74%, 10/1/22 | 600 | 621 | |||||||||
2.80%, 10/1/23 | 250 | 262 | |||||||||
International Game Technology PLC, 6.25%, 2/15/22, Callable 8/15/21 @ 100 (a) | 924 | 933 |
See notes to financial statements.
6
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Nissan Motor Acceptance Corp. 2.55%, 3/8/21 (a) | $ | 1,000 | $ | 993 | |||||||
1.00% (LIBOR03M+69bps), 9/28/22 (a) (b) | 500 | 465 | |||||||||
Volkswagen Group of America Finance LLC, 1.16% (LIBOR03M+86bps), 9/24/21 (a) (b) | 1,000 | 989 | |||||||||
9,637 | |||||||||||
Consumer Staples (1.2%): | |||||||||||
JBS USA LUX SA/JBS USA Finance, Inc., 5.88%, 7/15/24, Callable 8/6/20 @ 101.96 (a) | 1,000 | 1,014 | |||||||||
Smithfield Foods, Inc., 2.65%, 10/3/21, Callable 9/3/21 @ 100 (a) | 1,815 | 1,793 | |||||||||
2,807 | |||||||||||
Energy (9.3%): | |||||||||||
Antero Resources Corp., 5.13%, 12/1/22, Callable 8/6/20 @ 100 | 1,000 | 722 | |||||||||
Buckeye Partners LP, 4.15%, 7/1/23, Callable 4/1/23 @ 100 | 2,000 | 1,948 | |||||||||
DCP Midstream Operating, LP, 3.88%, 3/15/23, Callable 12/15/22 @ 100 | 2,000 | 1,940 | |||||||||
Enable Midstream Partners LP, 3.90%, 5/15/24, Callable 2/15/24 @ 100 | 1,000 | 980 | |||||||||
EQM Midstream Partners LP, 4.00%, 8/1/24, Callable 5/1/24 @ 100 | 1,000 | 948 | |||||||||
Kinder Morgan, Inc., 6.50%, 9/15/20 | 500 | 506 | |||||||||
Marathon Petroleum Corp. | |||||||||||
3.40%, 12/15/20, Callable 11/15/20 @ 100 (c) | 397 | 401 | |||||||||
4.75%, 12/15/23, Callable 10/15/23 @ 100 (g) | 750 | 823 | |||||||||
Midwest Connector Capital Co. LLC, 3.63%, 4/1/22, Callable 3/1/22 @ 100 (a) | 1,000 | 1,025 | |||||||||
MPLX LP, 1.41% (LIBOR03M+110bps), 9/9/22, Callable 9/9/20 @ 100 (b) | 2,000 | 1,970 | |||||||||
NGPL PipeCo LLC, 4.38%, 8/15/22, Callable 5/15/22 @ 100 (a) | 1,370 | 1,412 | |||||||||
NuStar Logistics LP, 4.80%, 9/1/20 | 2,000 | 1,997 | |||||||||
Occidental Petroleum Corp., 1.84% (LIBOR03M+145bps), 8/15/22, Callable 8/15/20 @ 100 (b) | 2,000 | 1,818 | |||||||||
Plains All American Pipeline LP/PAA Finance Corp., 2.85%, 1/31/23, Callable 10/31/22 @ 100 (c) | 970 | 981 | |||||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.25%, 5/1/23, Callable 8/6/20 @ 100.88 | 1,140 | 1,118 | |||||||||
Texas Eastern Transmission LP, 4.13%, 12/1/20, Callable 9/1/20 @ 100 (a) (c) | 651 | 654 | |||||||||
Western Midstream Operating LP, 4.00%, 7/1/22, Callable 4/1/22 @ 100 | 2,535 | 2,528 | |||||||||
21,771 | |||||||||||
Financials (13.4%): | |||||||||||
AIG Global Funding | |||||||||||
2.15%, 7/2/20 (a) | 490 | 490 | |||||||||
1.75% (LIBOR03M+65bps), 1/22/21 (a) (b) | 467 | 468 | |||||||||
Ally Financial, Inc., 4.63%, 5/19/22 | 1,000 | 1,041 | |||||||||
Ares Capital Corp., 3.50%, 2/10/23, Callable 1/10/23 @ 100 | 2,000 | 2,009 | |||||||||
Assurant, Inc., 1.53% (LIBOR03M+125bps), 3/26/21, Callable 7/22/20 @ 100 (b) | 500 | 499 | |||||||||
Athene Global Funding, 3.00%, 7/1/22 (a) | 1,000 | 1,024 | |||||||||
Bank of America Corp., 1.12% (LIBOR03M+79bps), 3/5/24, Callable 3/5/23 @ 100 (b) | 2,000 | 1,993 | |||||||||
BBVA USA, 1.04% (LIBOR03M+73bps), 6/11/21, Callable 5/11/21 @ 100 (b) | 825 | 822 | |||||||||
BMW US Capital LLC, 1.84% (LIBOR03M+53bps), 4/14/22 (a) (b) | 1,000 | 986 | |||||||||
Capital One NA, 1.27% (LIBOR03M+82bps), 8/8/22, Callable 7/8/22 @ 100 (b) | 2,800 | 2,789 | |||||||||
CIT Group, Inc., 4.13%, 3/9/21, Callable 2/9/21 @ 100 | 1,000 | 999 |
See notes to financial statements.
7
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Citigroup, Inc., 1.68% (LIBOR03M+69bps), 10/27/22, Callable 9/27/22 @ 100 (b) | $ | 885 | $ | 879 | |||||||
DAE Funding LLC 4.50%, 8/1/22, Callable 8/6/20 @ 101.13 (a) | 1,000 | 956 | |||||||||
5.75%, 11/15/23, Callable 11/15/20 @ 102.88 (a) | 1,000 | 961 | |||||||||
Ford Motor Credit Co. LLC | |||||||||||
0.99% (LIBOR03M+43bps), 11/2/20 (b) | 500 | 482 | |||||||||
2.19% (LIBOR03M+88bps), 10/12/21 (b) | 930 | 877 | |||||||||
3.10%, 5/4/23 (c) | 1,000 | 947 | |||||||||
FS KKR Capital Corp. 4.75%, 5/15/22, Callable 4/15/22 @ 100 | 1,000 | 993 | |||||||||
4.13%, 2/1/25, Callable 1/1/25 @ 100 | 1,000 | 966 | |||||||||
Hyundai Capital America, 2.75%, 9/18/20 (a) | 1,000 | 1,002 | |||||||||
Infinity Property & Casualty Corp., 5.00%, 9/19/22 | 1,000 | 1,059 | |||||||||
Main Street Capital Corp. 4.50%, 12/1/22 | 1,000 | 1,003 | |||||||||
5.20%, 5/1/24 | 1,000 | 1,026 | |||||||||
Manufactures & Traders Trust Co., 0.99% (LIBOR03M+64bps), 12/1/21, Callable 8/6/20 @ 100 (b) (c) | 2,000 | 1,992 | |||||||||
Protective Life Global Funding 2.70%, 11/25/20 (a) | 535 | 540 | |||||||||
0.83% (LIBOR03M+52bps), 6/28/21 (a) (b) | 1,000 | 1,001 | |||||||||
SunTrust Bank, 0.98% (LIBOR03M+59bps), 5/17/22, Callable 4/17/22 @ 100 (b) | 1,000 | 1,003 | |||||||||
Synovus Bank, 2.29% (SOFR+95bps), 2/10/23, Callable 2/10/22 @ 100 (b) | 478 | 482 | |||||||||
The Goldman Sachs Group, Inc., 1.54% (LIBOR03M+78bps), 10/31/22, Callable 10/31/21 @ 100 (b) | 1,000 | 999 | |||||||||
Wells Fargo Bank NA, 0.97% (LIBOR03M+66bps), 9/9/22, Callable 9/9/21 @ 100 (b) | 1,000 | 1,002 | |||||||||
31,290 | |||||||||||
Industrials (3.5%): | |||||||||||
American Airlines Pass Through Trust 5.63%, 7/15/22 (a) | 874 | 770 | |||||||||
4.38%, 12/15/25 (a) | 1,028 | 705 | |||||||||
CNH Industrial Capital LLC, 4.38%, 11/6/20 | 656 | 661 | |||||||||
L3Harris Technologies, Inc., 1.06% (LIBOR03M+75bps), 3/10/23 (b) | 1,500 | 1,486 | |||||||||
Spirit AeroSystems, Inc., 3.95%, 6/15/23, Callable 5/15/23 @ 100 | 513 | 434 | |||||||||
Spirit Airlines Pass Through Trust, 4.45%, 10/1/25 | 1,686 | 1,261 | |||||||||
United Airlines Pass Through Trust, 4.63%, 3/3/24 | 845 | 737 | |||||||||
Wabtec Corp., 1.61% (LIBOR03M+105bps), 9/15/21 (b) | 2,083 | 2,083 | |||||||||
8,137 | |||||||||||
Materials (0.9%): | |||||||||||
Albemarle Corp., 1.44% (LIBOR03M+105bps), 11/15/22, Callable 11/15/20 @ 100 (a) (b) | 636 | 608 | |||||||||
Carpenter Technology Corp., 5.20%, 7/15/21, Callable 4/15/21 @ 100 | 1,500 | 1,507 | |||||||||
2,115 |
See notes to financial statements.
8
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Real Estate (1.3%): | |||||||||||
CoreCivic, Inc., 5.00%, 10/15/22, Callable 7/15/22 @ 100 | $ | 1,000 | $ | 980 | |||||||
Lexington Realty Trust, 4.25%, 6/15/23, Callable 3/15/23 @ 100 | 1,000 | 1,000 | |||||||||
Office Properties Income Trust, 4.15%, 2/1/22, Callable 12/1/21 @ 100 | 1,169 | 1,161 | |||||||||
3,141 | |||||||||||
Utilities (1.0%): | |||||||||||
Puget Energy, Inc., 5.63%, 7/15/22, Callable 4/15/22 @ 100 | 733 | 783 | |||||||||
Southern Power Co., 2.75%, 9/20/23, Callable 7/20/23 @ 100 | 1,500 | 1,573 | |||||||||
2,356 | |||||||||||
Total Corporate Bonds (Cost $86,137) | 83,930 | ||||||||||
Yankee Dollar (25.0%) | |||||||||||
Communication Services (0.7%): | |||||||||||
Pearson Funding Four PLC, 3.75%, 5/8/22 (a) | 1,622 | 1,677 | |||||||||
Consumer Staples (0.4%): | |||||||||||
Reckitt Benckiser Treasury Services PLC, 0.86% (LIBOR03M+56bps), 6/24/22 (a) (b) | 1,000 | 999 | |||||||||
Energy (1.2%): | |||||||||||
Aker BP ASA, 4.75%, 6/15/24, Callable 6/15/21 @ 102.38 (a) | 1,690 | 1,702 | |||||||||
Petroleos Mexicanos, 3.50%, 1/30/23 (c) | 1,000 | 949 | |||||||||
2,651 | |||||||||||
Financials (17.3%): | |||||||||||
ABN AMRO Bank NV, 1.55% (LIBOR03M+41bps), 1/19/21 (a) (b) | 1,000 | 1,002 | |||||||||
ANZ New Zealand International Ltd., 1.90% (LIBOR03M+101bps), 7/28/21 (a) (b) | 800 | 805 | |||||||||
Australia & New Zealand Banking Group Ltd., 0.85% (LIBOR03M+46bps), 5/17/21 (b) | 1,250 | 1,254 | |||||||||
Banco Santander SA 1.45% (LIBOR03M+109bps), 2/23/23 (b) | 1,000 | 991 | |||||||||
2.43% (LIBOR03M+112bps), 4/12/23 (b) | 1,000 | 986 | |||||||||
Bank of Montreal, 0.76%(SOFR+68bps), 3/10/23, MTN (b) | 1,000 | 993 | |||||||||
Barclays PLC, 1.82% (LIBOR03M+143bps), 2/15/23, Callable 2/15/22 @ 100 (b) | 1,000 | 998 | |||||||||
BBVA Bancomer SA, 6.50%, 3/10/21 (a) | 2,149 | 2,206 | |||||||||
Canadian Imperial Bank of Commerce, 0.87% (LIBOR03M+32bps), 2/2/21 (b) | 1,000 | 1,001 | |||||||||
Commonwealth Bank of Australia, 1.14% (LIBOR03M+83bps), 9/6/21 (a) (b) (c) | 2,000 | 2,016 | |||||||||
Cooperatieve Rabobank UA, 1.79% (LIBOR03M+48bps), 1/10/23 (b) | 2,500 | 2,499 | |||||||||
Credit Agricole SA, 2.04% (LIBOR03M+102bps), 4/24/23 (a) (b) | 2,000 | 1,997 | |||||||||
Credit Suisse Group Funding Guernsey Ltd., 3.43% (LIBOR03M+229bps), 4/16/21 (b) | 700 | 710 | |||||||||
Deutsche Bank AG 2.28% (LIBOR03M+97bps), 7/13/20 (b) | 2,000 | 2,000 | |||||||||
1.60% (LIBOR03M+123bps), 2/27/23 (b) | 816 | 785 | |||||||||
ING Bank NV, 1.27% (LIBOR03M+88bps), 8/15/21 (a) (b) | 2,000 | 2,010 | |||||||||
Lloyds Bank PLC, 3.30%, 5/7/21 | 1,000 | 1,022 | |||||||||
National Australia Bank Ltd. 1.27% (LIBOR03M+71bps), 11/4/21 (a) (b) | 1,000 | 1,006 | |||||||||
1.91% (LIBOR03M+60bps), 4/12/23 (a) (b) | 1,000 | 1,004 |
See notes to financial statements.
9
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Nordea Bank Abp, 1.30% (LIBOR03M+94bps), 8/30/23 (a) (b) | $ | 1,000 | $ | 992 | |||||||
Royal Bank of Scotland Group PLC, 6.13%, 12/15/22 | 2,000 | 2,181 | |||||||||
Santander UK PLC, 0.97% (LIBOR03M+62bps), 6/1/21 (b) | 2,000 | 2,005 | |||||||||
Skandinaviska Enskilda Banken AB, 0.96% (LIBOR03M+65bps), 12/12/22 (a) (b) | 2,000 | 2,008 | |||||||||
Standard Chartered PLC, 2.29% (LIBOR03M+115bps), 1/20/23, Callable 1/20/22 @ 100 (a) (b) | 2,000 | 1,999 | |||||||||
Sumitomo Mitsui Financial Group, Inc., 2.09% (LIBOR03M+78bps), 7/12/22 (b) | 1,000 | 1,000 | |||||||||
Svenska Handelsbanken AB, 1.46% (LIBOR03M+115bps), 3/30/21 (b) | 1,500 | 1,511 | |||||||||
Swedbank AB, 1.01% (LIBOR03M+70bps), 3/14/22 (a) (b) | 500 | 501 | |||||||||
UBS Group Funding Switzerland AG, 1.34% (LIBOR03M+95bps), 8/15/23, Callable 8/15/22 @ 100 (a) (b) | 2,000 | 2,001 | |||||||||
Westpac Banking Corp., 1.23% (LIBOR03M+85bps), 8/19/21 (b) | 1,000 | 1,006 | |||||||||
40,489 | |||||||||||
Industrials (3.2%): | |||||||||||
Aercap Ireland Capital DAC/Aercap Global Aviation Trust 5.00%, 10/1/21 | 1,000 | 1,011 | |||||||||
4.45%, 12/16/21, Callable 11/16/21 @ 100 | 1,000 | 1,010 | |||||||||
Air Canada Pass Through Trust, 5.38%, 11/15/22 (a) | 2,521 | 2,281 | |||||||||
Aircastle Ltd., 4.40%, 9/25/23, Callable 8/25/23 @ 100 | 2,000 | 1,919 | |||||||||
Avolon Holdings Funding Ltd. 5.13%, 10/1/23, Callable 9/1/23 @ 100 (a) | 500 | 462 | |||||||||
2.88%, 2/15/25, Callable 1/15/25 @ 100 (a) | 1,000 | 842 | |||||||||
7,525 | |||||||||||
Materials (1.5%): | |||||||||||
Braskem Netherlands Finance BV, 3.50%, 1/10/23, Callable 12/10/22 @ 100 (a) | 1,000 | 1,020 | |||||||||
Methanex Corp., 5.25%, 3/1/22 | 1,085 | 1,076 | |||||||||
Teck Resources Ltd., 4.50%, 1/15/21, Callable 10/15/20 @ 100 | 1,424 | 1,430 | |||||||||
3,526 | |||||||||||
Utilities (0.7%): | |||||||||||
PPL WEM Ltd./Western Power Distribution Ltd., 5.38%, 5/1/21, Callable 2/1/21 @ 100 (a) | 1,582 | 1,620 | |||||||||
Total Yankee Dollar (Cost $59,066) | 58,487 | ||||||||||
Municipal Bonds (7.1%) | |||||||||||
Arizona (0.5%): | |||||||||||
City of Phoenix Civic Improvement Corp. Revenue, Series C, 2.20%, 7/1/23 | 1,000 | 1,021 | |||||||||
California (0.3%): | |||||||||||
County of Riverside Revenue, 2.17%, 2/15/21 | 750 | 753 | |||||||||
Michigan (0.4%): | |||||||||||
Michigan Finance Authority Revenue, 2.14%, 12/1/22 | 1,000 | 1,014 | |||||||||
Mississippi (0.6%): | |||||||||||
Mississippi Business Finance Corp. Revenue, 0.45%, 12/1/27, Continuously Callable @100 (h) | 1,300 | 1,300 |
See notes to financial statements.
10
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
New Jersey (0.9%): | |||||||||||
New Jersey Economic Development Authority Revenue Series NNN, 2.61%, 6/15/22 | $ | 500 | $ | 492 | |||||||
Series NNN, 2.78%, 6/15/23 | 408 | 389 | |||||||||
Series NNN, 2.88%, 6/15/24 | 322 | 315 | |||||||||
New Jersey Transportation Trust Fund Authority Revenue, 2.55%, 6/15/23 | 850 | 864 | |||||||||
2,060 | |||||||||||
Ohio (0.4%): | |||||||||||
Buckeye Tobacco Settlement Financing Authority Revenue, Series A-1, 1.63%, 6/1/22 | 1,000 | 1,003 | |||||||||
Oregon (0.4%): | |||||||||||
Port of Morrow Revenue, 0.75%, 2/1/27, Continuously Callable @100 (h) | 1,000 | 1,000 | |||||||||
Pennsylvania (1.1%): | |||||||||||
Delaware County IDA Revenue, 0.29%, 9/1/45, Continuously Callable @100 (h) | 2,000 | 2,000 | |||||||||
State Public School Building Authority Revenue, 2.62%, 4/1/23 | 450 | 452 | |||||||||
2,452 | |||||||||||
South Dakota (0.4%): | |||||||||||
South Dakota Health & Educational Facilities Authority Revenue, Series B, 2.18%, 7/1/21 | 1,000 | 1,011 | |||||||||
Texas (2.1%): | |||||||||||
Central Texas Turnpike System Revenue, Series B, 1.98%, 8/15/42, (Put Date 8/15/22) (i) | 1,000 | 995 | |||||||||
Port of Port Arthur Navigation District Revenue 0.65%, 4/1/33, Callable 8/3/20 @ 100 (NBGA — BASF S.E.) (h) | 1,500 | 1,500 | |||||||||
1.95%, 11/1/40, Continuously Callable @100 (h) | 1,000 | 1,000 | |||||||||
Series B, 0.90%, 4/1/40, Continuously Callable @100 (h) | 1,500 | 1,500 | |||||||||
4,995 | |||||||||||
Total Municipal Bonds (Cost $16,580) | 16,609 | ||||||||||
U.S. Treasury Obligations (0.7%) | |||||||||||
U.S. Treasury Bills 0.13%, 7/28/20 (j) | 500 | 500 | |||||||||
0.14%, 10/6/20 (j) | 1,000 | 999 | |||||||||
Total U.S. Treasury Obligations (Cost $1,499) | 1,499 | ||||||||||
Commercial Paper (2.8%) | |||||||||||
Alliant Energy Corp., 0.27%, 7/1/20 (a) (j) | 1,000 | 1,000 | |||||||||
CSLB Holdings, Inc., 0.27%, 7/1/20 (a) (j) | 1,000 | 1,000 | |||||||||
FMC Corp., 0.41%, 7/1/20 (a) (j) | 2,500 | 2,500 | |||||||||
Glencore Funding LLC, 0.60%, 7/8/20 (a) (j) | 1,100 | 1,100 | |||||||||
Hannover Funding Co. LLC, 0.32%, 7/1/20 (a) (j) | 1,000 | 1,000 | |||||||||
Total Commercial Paper (Cost $6,600) | 6,600 |
See notes to financial statements.
11
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Collateral for Securities Loaned^ (0.0%) (k) | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.11% (l) | 92,250 | $ | 92 | ||||||||
Total Collateral for Securities Loaned (Cost $92) | 92 | ||||||||||
Total Investments (Cost $237,644) — 100.1% | 234,056 | ||||||||||
Liabilities in excess of other assets — (0.1)% | (205 | ) | |||||||||
NET ASSETS — 100.00% | $ | 233,851 |
^ Purchased with cash collateral from securities on loan.
(a) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid based upon procedures approved by the Board of Trustees. As of June 30, 2020, the fair value of these securities was $104,028 (thousands) and amounted to 44.5% of net assets.
(b) Variable or Floating-Rate Security. Rate disclosed is as of June 30, 2020.
(c) All or a portion of this security has been segregated as collateral for securities purchased on a when-issued basis.
(d) The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate disclosed is the rate in effect at June 30, 2020.
(e) Interest-only security.
(f) Security purchased on a when-issued basis.
(g) All or a portion of this security is on loan.
(h) Variable Rate Demand Notes that provide the rights to sell the security at face value on either that day or within the rate-reset period. The interest rate is reset on the put date at a stipulated daily, weekly, monthly, quarterly, or other specified time interval to reflect current market conditions. These securities do not indicate a reference rate and spread in their description.
(i) Put Bond.
(j) Rate represents the effective yield at June 30, 2020.
(k) Amount represents less than 0.05% of net assets.
(l) Rate disclosed is the daily yield on June 30, 2020.
(m) The rates for this senior secured loan will be known on settlement date of the loan, subsequent to this report date. Senior secured loans have rates that will fluctuate over time in line with prevailing interest rates.
bps — Basis points
IDA — Industrial Development Authority
LIBOR — London InterBank Offered Rate
LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of June 30, 2020, based on the last reset date of the security
See notes to financial statements.
12
USAA Mutual Funds Trust USAA Ultra Short-Term Bond Fund | Schedule of Portfolio Investments — continued June 30, 2020 |
(Unaudited)
LIBOR01W — 1 Week US Dollar LIBOR, rate disclosed as of June 30, 2020, based on the last reset date of the security
LIBOR03M — 3 Month US Dollar LIBOR, rate disclosed as of June 30, 2020, based on the last reset date of the security
LLC — Limited Liability Company
LP — Limited Partnership
MTN — Medium Term Note
PLC — Public Limited Company
SOFR — Secured Overnight Financing Rate
Credit Enhancements — Adds the financial strength of the provider of the enhancement to support the issuer's ability to repay the principal and interest payments when due. The enhancement may be provided by a high-quality bank, insurance company or other corporation, or a collateral trust. The enhancements do not guarantee the market values of the securities.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from one of the following: Florida General Obligation, Municipal Securities Purchase, Inc., Texas Permanent School Fund, or Utah General Obligation.
See notes to financial statements.
13
USAA Mutual Funds Trust | Statement of Assets and Liabilities June 30, 2020 |
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
USAA Ultra Short-Term Bond Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $237,644) | $ | 234,056 | (a) | ||||
Cash and cash equivalents | 4,203 | ||||||
Receivables: | |||||||
Interest and dividends | 1,206 | ||||||
Capital shares issued | 60 | ||||||
From Adviser | 3 | ||||||
Prepaid expenses | 23 | ||||||
Total assets | 239,551 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 92 | ||||||
Distributions | 17 | ||||||
Investments purchased | 4,479 | ||||||
Capital shares redeemed | 965 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 47 | ||||||
Administration fees | 28 | ||||||
Custodian fees | 3 | ||||||
Transfer agent fees | 9 | ||||||
Compliance fees | — | (b) | |||||
Trustees' fees | 1 | ||||||
12b-1 fees | — | (b) | |||||
Other accrued expenses | 59 | ||||||
Total liabilities | 5,700 | ||||||
Net Assets: | |||||||
Capital | 240,724 | ||||||
Total distributable earnings/(loss) | (6,873 | ) | |||||
Net Assets | $ | 233,851 | |||||
Net Assets | |||||||
Fund Shares | $ | 217,071 | |||||
Institutional Shares | 9,942 | ||||||
Class A shares | 18 | ||||||
Class R6 Shares | 6,820 | ||||||
Total | $ | 233,851 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 21,919 | ||||||
Institutional Shares | 1,004 | ||||||
Class A shares | 2 | ||||||
Class R6 Shares | 689 | ||||||
Total | 23,614 | ||||||
Net asset value, offering and redemption price per share: (c) | |||||||
Fund Shares | $ | 9.90 | |||||
Institutional Shares | 9.90 | ||||||
Class A shares | 9.91 | ||||||
Class R6 Shares | 9.90 |
(a) Includes $90 of securities on loan.
(b) Rounds to less than $1 thousand.
(c) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
14
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended June 30, 2020 |
(Amounts in Thousands) (Unaudited)
USAA Ultra Short-Term Bond Fund | |||||||
Investment Income: | |||||||
Dividends | $ | 64 | |||||
Interest | 3,814 | ||||||
Securities lending (net of fees) | 1 | ||||||
Total Income | 3,879 | ||||||
Expenses: | |||||||
Investment advisory fees | 311 | ||||||
Administration fees — Fund Shares | 182 | ||||||
Administration fees — Institutional Shares | 5 | ||||||
Administration fees — Class A shares (b) | — | (a) | |||||
Administration fees — R6 Shares | 2 | ||||||
Sub-Administration fees | 10 | ||||||
12b-1 fees — Class A shares (b) | — | (a) | |||||
Custodian fees | 13 | ||||||
Transfer agent fees — Fund Shares | 100 | ||||||
Transfer agent fees — Institutional Shares | 5 | ||||||
Transfer agent fees — Class A shares (b) | — | (a) | |||||
Transfer agent fees — Class R6 Shares | — | (a) | |||||
Trustees' fees | 23 | ||||||
Compliance fees | 1 | ||||||
Legal and audit fees | 33 | ||||||
State registration and filing fees | 36 | ||||||
Interfund lending fees | — | (a) | |||||
Other expenses | 29 | ||||||
Total Expenses | 750 | ||||||
Expenses waived/reimbursed by Adviser | (10 | ) | |||||
Net Expenses | 740 | ||||||
Net Investment Income (Loss) | 3,139 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | (529 | ) | |||||
Net change in unrealized appreciation/depreciation on investment securities | (5,068 | ) | |||||
Net realized/unrealized gains (losses) on investments | (5,597 | ) | |||||
Change in net assets resulting from operations | $ | (2,458 | ) |
(a) Rounds to less than $1 thousand.
(b) Class A activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
See notes to financial statements.
15
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Ultra Short-Term Bond Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 3,139 | $ | 8,031 | |||||||
Net realized gains (losses) from investments | (529 | ) | 1,015 | ||||||||
Net change in unrealized appreciation/depreciation on investments | (5,068 | ) | 3,778 | ||||||||
Change in net assets resulting from operations | (2,458 | ) | 12,824 | ||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (2,941 | ) | (7,510 | ) | |||||||
Institutional Shares | (130 | ) | (341 | ) | |||||||
Class A shares (b) | — | (a) | — | ||||||||
Class R6 Shares | (84 | ) | (153 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (3,155 | ) | (8,004 | ) | |||||||
Change in net assets resulting from capital transactions | (52,064 | ) | (10,474 | ) | |||||||
Change in net assets | (57,677 | ) | (5,654 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 291,528 | 297,182 | |||||||||
End of period | $ | 233,851 | $ | 291,528 | |||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 30,771 | $ | 83,733 | |||||||
Distributions reinvested | 2,837 | 7,296 | |||||||||
Cost of shares redeemed | (86,578 | ) | (104,187 | ) | |||||||
Total Fund Shares | $ | (52,970 | ) | $ | (13,158 | ) | |||||
Institutional Shares | |||||||||||
Proceeds from shares issued | $ | 13,642 | $ | 15,518 | |||||||
Distributions reinvested | 125 | 334 | |||||||||
Cost of shares redeemed | (13,277 | ) | (14,624 | ) | |||||||
Total Institutional Shares | $ | 490 | $ | 1,228 | |||||||
Class A shares (b) | |||||||||||
Proceeds from shares issued | $ | 18 | $ | — | |||||||
Distributions reinvested | — | (a) | — | ||||||||
Total Class A shares | $ | 18 | $ | — | |||||||
Class R6 Shares | |||||||||||
Proceeds from shares issued | $ | 2,788 | $ | 2,228 | |||||||
Distributions reinvested | 20 | 8 | |||||||||
Cost of shares redeemed | (2,410 | ) | (780 | ) | |||||||
Total Class R6 Shares | $ | 398 | $ | 1,456 | |||||||
Change in net assets resulting from capital transactions | $ | (52,064 | ) | $ | (10,474 | ) |
(a) Rounds to less than $1 thousand.
(continues on next page)
See notes to financial statements.
16
USAA Mutual Funds Trust | Statements of Changes in Net Assets |
(Amounts in Thousands)
USAA Ultra Short-Term Bond Fund | |||||||||||
Six Months Ended June 30, 2020 (unaudited) | Year Ended December 31, 2019 | ||||||||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 3,095 | 8,379 | |||||||||
Reinvested | 289 | 729 | |||||||||
Redeemed | (8,846 | ) | (10,424 | ) | |||||||
Total Fund Shares | (5,462 | ) | (1,316 | ) | |||||||
Institutional Shares | |||||||||||
Issued | 1,382 | 1,554 | |||||||||
Reinvested | 13 | 33 | |||||||||
Redeemed | (1,370 | ) | (1,461 | ) | |||||||
Total Institutional Shares | 25 | 126 | |||||||||
Class A shares (b) | |||||||||||
Issued | 2 | — | |||||||||
Reinvested | — | (a) | — | ||||||||
Total Class A shares | 2 | — | |||||||||
Class R6 Shares | |||||||||||
Issued | 285 | 223 | |||||||||
Reinvested | 2 | 1 | |||||||||
Redeemed | (248 | ) | (78 | ) | |||||||
Total Class R6 Shares | 39 | 146 | |||||||||
Change in Shares | (5,396 | ) | (1,044 | ) |
(a) Rounds to less than 1 thousand.
(b) Class A activity is for the period June 29, 2020 (commencement of operations) to June 30, 2020.
See notes to financial statements.
17
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
USAA Ultra Short-Term Bond Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 10.05 | 0.12 | (d) | (0.15 | ) | (0.03 | ) | (0.12 | ) | — | ||||||||||||||||
Year Ended December 31, 2019 | $ | 9.89 | 0.27 | (d) | 0.16 | 0.43 | (0.27 | ) | — | ||||||||||||||||||
Year Ended December 31, 2018 | $ | 9.97 | 0.22 | (0.08 | ) | 0.14 | (0.22 | ) | — | ||||||||||||||||||
Year Ended December 31, 2017 | $ | 9.98 | 0.16 | (0.01 | ) | 0.15 | (0.16 | ) | — | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 9.94 | 0.13 | 0.04 | 0.17 | (0.13 | ) | — | (f) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 10.07 | 0.13 | (0.13 | ) | — | (f) | (0.13 | ) | — | (f) | ||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 10.05 | 0.12 | (d) | (0.15 | ) | (0.03 | ) | (0.12 | ) | — | ||||||||||||||||
Year Ended December 31, 2019 | $ | 9.89 | 0.27 | (d) | 0.16 | 0.43 | (0.27 | ) | — | ||||||||||||||||||
Year Ended December 31, 2018 | $ | 9.97 | 0.22 | (0.08 | ) | 0.14 | (0.22 | ) | — | ||||||||||||||||||
Year Ended December 31, 2017 | $ | 9.98 | 0.15 | (0.01 | ) | 0.14 | (0.15 | ) | — | ||||||||||||||||||
Year Ended December 31, 2016 | $ | 9.94 | 0.13 | 0.04 | 0.17 | (0.13 | ) | — | (f) | ||||||||||||||||||
Year Ended December 31, 2015 | $ | 10.07 | 0.13 | (0.13 | ) | — | (f) | (0.13 | ) | — | (f) |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
(e) Reflects increased trading activity due to large shareholder outflows.
(f) Amount is less than $0.005.
(g) Effective May 1, 2017, USAA Asset Management Company, the former investment adviser to the Fund ("AMCO"), voluntarily agreed to limit the annual expenses of the Institutional Shares to 0.55% of the Institutional Shares' average daily net assets.
See notes to financial statements.
18
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b) | Net Investment Income (Loss)(b) | Gross Expenses(b) | Net Assets, End of Period (000's) | Portfolio Turnover(a)(c) | ||||||||||||||||||||||||||||
USAA Ultra Short-Term Bond Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | (0.12 | ) | $ | 9.90 | (0.30 | )% | 0.58 | % | 2.42 | % | 0.58 | % | $ | 217,071 | 20 | % | |||||||||||||||||||
Year Ended December 31, 2019 | (0.27 | ) | $ | 10.05 | 4.37 | % | 0.61 | % | 2.69 | % | 0.61 | % | $ | 275,168 | 59 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.22 | ) | $ | 9.89 | 1.40 | % | 0.60 | % | 2.19 | % | 0.60 | % | $ | 283,769 | 48 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.16 | ) | $ | 9.97 | 1.51 | % | 0.58 | % | 1.60 | % | 0.58 | % | $ | 330,442 | 58 | %(e) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.13 | ) | $ | 9.98 | 1.73 | % | 0.61 | % | 1.30 | % | 0.61 | % | $ | 372,155 | 28 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.13 | ) | $ | 9.94 | 0.01 | % | 0.59 | % | 1.28 | % | 0.59 | % | $ | 426,994 | 20 | % | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | (0.12 | ) | $ | 9.90 | (0.28 | )% | 0.55 | % | 2.45 | % | 0.66 | % | $ | 9,942 | 20 | % | |||||||||||||||||||
Year Ended December 31, 2019 | (0.27 | ) | $ | 10.05 | 4.43 | % | 0.55 | % | 2.75 | % | 0.64 | % | $ | 9,842 | 59 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.22 | ) | $ | 9.89 | 1.45 | % | 0.55 | % | 2.25 | % | 0.77 | % | $ | 8,433 | 48 | % | |||||||||||||||||||
Year Ended December 31, 2017 | (0.15 | ) | $ | 9.97 | 1.44 | % | 0.64 | %(g) | 1.51 | % | 0.75 | % | $ | 7,115 | 58 | %(e) | |||||||||||||||||||
Year Ended December 31, 2016 | (0.13 | ) | $ | 9.98 | 1.69 | % | 0.66 | % | 1.25 | % | 0.66 | % | $ | 18,710 | 28 | % | |||||||||||||||||||
Year Ended December 31, 2015 | (0.13 | ) | $ | 9.94 | 0.04 | % | 0.57 | % | 1.32 | % | 0.57 | % | $ | 22,454 | 20 | % |
(continues on next page)
See notes to financial statements.
19
USAA Mutual Funds Trust | Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities | Distributions to Shareholders From | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains from Investments | ||||||||||||||||||||||
USAA Ultra Short-Term Bond Fund | |||||||||||||||||||||||||||
Class A shares | |||||||||||||||||||||||||||
June 29, 2020 (g) through June 30, 2020 | $ | 9.90 | — | (f) | 0.01 | 0.01 | — | (f) | — | ||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | $ | 10.05 | 0.13 | (d) | (0.15 | ) | (0.02 | ) | (0.13 | ) | — | ||||||||||||||||
Year Ended December 31, 2019 | $ | 9.88 | 0.29 | (d) | 0.17 | 0.46 | (0.29 | ) | — | ||||||||||||||||||
Year Ended December 31, 2018 | $ | 9.97 | 0.24 | (0.09 | ) | 0.15 | (0.24 | ) | — | ||||||||||||||||||
March 1, 2017 (g) through December 31, 2017 | $ | 9.98 | 0.15 | (0.01 | ) | 0.14 | (0.15 | ) | — |
* Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return.
^ The net expense ratio may not correlate to the applicable expense limits in place during the period since the current contractual expense limitation is applied for a two year period beginning July 1, 2019 and in effect through June 30, 2021, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 4 of the accompanying Notes to Financial Statements.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(d) Per share net investment income (loss) has been calculated using the average daily shares method.
(e) Reflects increased trading activity due to large shareholder outflows.
(f) Amount is less than $0.005.
(g) Commencement of operations.
See notes to financial statements.
20
USAA Mutual Funds Trust | Financial Highlights — continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
Total Distributions | Net Asset Value, End of Period | Total Return*(a) | Net Expenses^(b) | Net Investment Income (Loss)(b) | Gross Expenses(b) | Net Assets, End of Period (000's) | Portfolio Turnover(a)(c) | ||||||||||||||||||||||||||||
USAA Ultra Short-Term Bond Fund | |||||||||||||||||||||||||||||||||||
Class A shares | |||||||||||||||||||||||||||||||||||
June 29, 2020 (g) through June 30, 2020 | — | (f) | $ | 9.91 | 0.11 | % | 0.85 | % | 1.68 | % | 112.47 | % | $ | 18 | 20 | % | |||||||||||||||||||
Class R6 Shares | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 (unaudited) | (0.13 | ) | $ | 9.90 | (0.20 | )% | 0.39 | % | 2.59 | % | 0.52 | % | $ | 6,820 | 20 | % | |||||||||||||||||||
Year Ended December 31, 2019 | (0.29 | ) | $ | 10.05 | 4.70 | % | 0.39 | % | 2.92 | % | 0.80 | % | $ | 6,518 | 59 | % | |||||||||||||||||||
Year Ended December 31, 2018 | (0.24 | ) | $ | 9.88 | 1.51 | % | 0.39 | % | 2.41 | % | 0.69 | % | $ | 4,980 | 48 | % | |||||||||||||||||||
March 1, 2017 (g) through December 31, 2017 | (0.15 | ) | $ | 9.97 | 1.42 | % | 0.39 | % | 1.81 | % | 1.05 | % | $ | 5,091 | 58 | %(e) |
See notes to financial statements.
21
USAA Mutual Funds Trust | Notes to Financial Statements June 30, 2020 |
(Unaudited)
1. Organization:
USAA Mutual Funds Trust (the "Trust") is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company. The Trust is comprised of 47 funds and is authorized to issue an unlimited number of shares, which are units of beneficial interest with no par value.
The accompanying financial statements are those of USAA Ultra Short-Term Bond Fund (the "Fund"). The Fund offers four classes of shares: Fund Shares, Institutional Shares, Class A shares, (effective June 29, 2020) and R6 Shares. The Fund is classified as diversified under the 1940 Act.
Each class of shares of the Fund has substantially identical rights and privileges except with respect to fees paid under distribution plans, expenses allocable exclusively to each class of shares, voting rights on matters solely affecting a single class of shares, and the exchange privilege of each class of shares.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund follows the specialized accounting and reporting requirements under GAAP that are applicable to investment companies under Accounting Standards Codification Topic 946.
Investment Valuation:
The Fund records investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Fund's investments are summarized in the three broad levels listed below:
• Level 1 — quoted prices in active markets for identical securities
• Level 2 — other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The inputs or methodologies used for valuation techniques are not necessarily an indication of the risk associated with entering into those investments.
The Adviser has established the Pricing and Liquidity Committee (the "Committee") and, subject to Trust's Board of Trustees (the "Board") oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.
Portfolio securities listed or traded on securities exchanges, including exchange-traded funds ("ETFs"), American Depositary Receipts ("ADRs") and Rights, are valued at the closing price on the exchange or
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system where the security is principally traded, if available, or at the Nasdaq Official Closing Price. If there have been no sales for that day on the exchange or system, then a security is valued at the last available bid quotation on the exchange or system where the security is principally traded. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Investments in open-end investment companies are valued at net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt securities of United States ("U.S.") issuers, along with corporate and municipal securities, including short-term investments maturing in 60 days or less, may be valued using evaluated bid or the last sales price to price securities by dealers or an independent pricing service approved by the Board. These valuations are typically categorized as Level 2 in the fair value hierarchy.
In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. These valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy, based on the observability of inputs used to determine the fair value. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause the Fund's NAV to be more reliable than it otherwise would be.
A summary of the valuations as of June 30, 2020, based upon the three levels defined above, is included in the table below while the breakdown, by category, of investments is disclosed in the Schedule of Portfolio Investments (amounts in thousands):
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Asset-Backed Securities | $ | — | $ | 30,153 | $ | — | $ | 30,153 | |||||||||||
Collateralized Mortgage Obligations | — | 31,021 | — | 31,021 | |||||||||||||||
Senior Secured Loans | — | 5,665 | — | 5,665 | |||||||||||||||
Corporate Bonds | — | 83,930 | — | 83,930 | |||||||||||||||
Yankee Dollar | — | 58,487 | — | 58,487 | |||||||||||||||
Municipal Bonds | — | 16,609 | — | 16,609 | |||||||||||||||
U.S. Treasury Obliations | — | 1,499 | — | 1,499 | |||||||||||||||
Commercial Paper | — | 6,600 | — | 6,600 | |||||||||||||||
Collateral for Securities Loaned | 92 | — | — | 92 | |||||||||||||||
Total | $ | 92 | $ | 233,964 | $ | — | $ | 234,056 |
For the six months ended June 30, 2020, there were no transfers in or out of the Level 3 fair value hierarchy.
Real Estate Investment Trusts ("REITs"):
The Fund may invest in REITs, which report information on the source of their distributions annually. REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate related loans or interests (such as mortgages). Certain distributions received from REITs during the year are recorded as realized gains or return of capital as estimated by the Fund or when such information becomes known.
Investment Companies:
The Fund may invest in portfolios of open-end investment companies. These investment companies value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value by the methods established by the board of directors of the underlying funds.
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Securities Purchased on a Delayed-Delivery or When-Issued Basis:
The Fund may purchase securities on a delayed-delivery or when-issued basis. Delivery and payment for securities that have been purchased by the Fund on a delayed-delivery or when-issued basis or for delayed draws on loans can take place a month or more after the trade date. At the time the Fund makes the commitment to purchase a security on a delayed-delivery or when-issued basis, the Fund records the transaction and reflects the value of the security in determining NAV. No interest accrues to the Fund until the transaction settles and payment takes place. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for delayed-delivery or when-issued securities. If the Fund owns delayed-delivery or when-issued securities, these values are included in Payable for investments purchased on the accompanying Statement of Assets and Liabilities and the segregated assets are identified in the Schedule of Portfolio Investments.
Mortgage and Asset-Backed Securities:
The values of some mortgage-related or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Fund to a lower rate of return upon reinvestment of principal. The values of mortgage and asset-backed securities depend in part on the credit quality and adequacy of the underlying assets or collateral and may fluctuate in response to the market's perception of these factors as well as current and future repayment rates. Some mortgage-backed securities are backed by the full faith and credit of the U.S. government (e.g., mortgage-backed securities issued by the Government National Mortgage Association, commonly known as "Ginnie Mae"), while other mortgage-backed securities (e.g., mortgage- backed securities issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, commonly known as "Fannie Mae" and "Freddie Mac", respectively), are backed only by the credit of the government entity issuing them. In addition, some mortgage-backed securities are issued by private entities and, as such, are not guaranteed by the U.S. government or any agency or instrumentality of the U.S. government.
Investment Transactions and Related Income:
Changes in holdings of investments are accounted for no later than one business day following the trade date. For financial reporting purposes, however, investment transactions are accounted for on trade date on the last business day of the reporting period. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts, where applicable, the amortization of premiums or accretion of discount. Gains or losses realized on sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Securities Lending:
The Fund, through a securities lending agreement with Citibank, N.A. ("Citibank"), may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income, net of income retained by Citibank. Borrowers are required to secure their loans for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non-U.S. securities loaned, marked-to-market daily. Any collateral shortfalls associated with increases in the valuation of the securities loaned are cured the next business day once the shortfall exceeds $100 thousand. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments, primarily open-end investment companies. Collateral requirements are determined daily based on the value of the Fund's securities on loan as of the end of the prior business day. During the time portfolio securities are on loan, the borrower will pay the Fund any dividends or interest paid on such securities plus any fee negotiated between the parties to the lending agreement. The Fund also earns a return from the collateral. The Fund pays Citibank various fees in connection with the investment of cash collateral and fees based on the investment income received from securities lending activities. Securities lending income (net of these fees) is disclosed on the Statement of Operations. Loans are terminable upon demand and the borrower must return the loaned securities within the lesser of one standard settlement period or five
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business days. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Fund's agreement with Citibank does not include master netting provisions. Non- cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed on the Fund's Schedule of Portfolio Investments and Financial Statements while non-cash collateral is not included. The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of June 30, 2020:
Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
$ | 90 | $ | — | $ | 92 |
Federal Income Taxes:
It is the Fund's policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes is required in the financial statements. The Fund has a tax year end of December 31.
Management of the Fund has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax years, which include the current fiscal tax year end). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
Allocations:
Expenses directly attributable to the Fund are charged to the Fund, while expenses that are attributable to more than one fund in the Trust, or jointly with an affiliated trust, are allocated among the respective funds in the Trust and/or affiliated trust based upon net assets or another appropriate basis.
Income, expenses (other than class-specific expenses such as transfer agent fees, state registration fees, and printing fees), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets on the date income is earned or expenses and realized and unrealized gains and losses are incurred.
Cross-Trade Transactions:
Pursuant to Rule 17a-7 under the 1940 Act, the Fund may engage in cross-trades, which are securities transactions with affiliated investment companies and advisory accounts managed by the Adviser and any applicable sub-adviser. Any such purchase or sale transaction must be effected without brokerage commission or other remuneration, except for customary transfer fees. The transaction must be effected at the current market price, which is either the security's last sale price on an exchange or, if there are no transactions in the security that day, at the average of the highest bid and lowest asked price. For the six months ended June 30, 2020, the Fund engaged in the following securities transactions with affiliated funds, which resulted in the following net realized gains (losses) (amounts in thousands):
Purchases | Sales | Net Realized Gains (Losses) | |||||||||
$ | 2,500 | $ | 5,350 | $ | — | (a) |
(a) Rounds to less than $1 thousand.
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3. Purchases and Sales:
Cost of purchases and proceeds from sales/maturities of securities (excluding securities maturing less than one year from acquisition) for the six months ended June 30, 2020, were as follows for the Fund (amounts in thousands):
Purchases (excluding U.S. Government Securities) | Sales (excluding U.S. Government Securities) | Purchases of U.S. Government Securities | Sales of U.S. Government Securities | ||||||||||||
$ | 50,815 | $ | 93,058 | $ | — | $ | 1,008 |
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Funds by Victory Capital Management Inc. ("VCM" or the "Adviser"), a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is a wholly owned indirect subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly-owned direct subsidiary of Victory Capital Operating, LLC. Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive a base fee and a performance adjustment. The Fund's base fee is accrued daily and paid monthly at an annual rate of 0.24% of average daily net assets. The amount incurred and paid to VCM for the six months ended June 30, 2020, are reflected on the Statement of Operations as Investment Advisory fees.
No performance adjustments will be made for periods beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter will be utilized in calculating future performance adjustments.
The performance adjustment for each share class was accrued daily and calculated monthly by comparing the Fund's performance to that of the Lipper Ultra Short Obligations Funds Index. The Lipper Ultra Short Obligations Funds Index, which measures the performance of funds tracked by Lipper that invest at least 65% of their assets in investment grade debt issues, or better, and maintain a portfolio dollar-weighted average maturity between 91 days and 365 days.
The performance period for each share class consists of the current month plus the previous 35 months (or the number of months beginning July 1, 2019, if fewer). The following table is utilized to determine the extent of the performance adjustment:
Over/Under Performance Relative to Index (in basis points)(a) | Annual Adjustment Rate (in basis points)(a) | ||||||
+/- 20 to 50 | +/- 4 | ||||||
+/- 51 to 100 | +/- 5 | ||||||
+/- 101 and greater | +/- 6 |
(a) Based on the difference between average annual performance of the relevant share class of the Fund and its relevant index, rounded to the nearest basis point. Average daily net assets of the share class are calculated over a rolling 36-month period.
Each class' annual performance adjustment rate is multiplied by the average daily net assets of each respective class over the entire performance period, which is then multiplied by a fraction, the numerator of which is the number of days in the month and the denominator of which is 365 (366 in leap years). The resulting amount is then added to (in the case of overperformance), or subtracted from (in the case of underperformance) the base fee.
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Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper Ultra Short Obligations Funds Index over that period, even if the class has overall negative returns during the performance period.
The Trust relies on an exemptive order granted to VCM and its affiliated funds by the SEC in March 2019 permitting the use of a "manager-of-managers" structure for certain funds. Prior to that date, the Trust relied on a similar exemptive order granted by the SEC to the Trust and its affiliated persons. Under a manager-of-managers structure, the investment adviser may select (with approval of the Board and without shareholder approval) one or more subadvisers to manage the day-to-day investment of a fund's assets. For the six months ended June 30, 2020, the Fund had no subadvisers.
Administration and Servicing Fees:
VCM serves as the Fund's administrator and fund accountant. Under the Fund Administration, Servicing and Accounting Agreement, VCM is paid for its services an annualized fee at a rate of 0.15% of average daily net assets for the Fund Shares, Institutional Shares, Class A shares, and 0.05% of average daily net assets of the R6 Shares. Amounts incurred and paid for the six months ended June 30, 2020, are reflected on the Statement of Operations as Administration fees.
The Fund (as part of the Trust) has entered into an agreement to provide compliance services with the Adviser, pursuant to which the Adviser furnishes its compliance personnel, including the services of the Chief Compliance Officer ("CCO"), and other resources reasonably necessary to provide the Trust with compliance oversight services related to the design, administration and oversight of a compliance program for the Trust in accordance with Rule 38a-1 under the 1940 Act. The CCO is an employee of the Adviser, which pays the compensation of the CCO and support staff. Funds in the Trust, Victory Variable Insurance Funds, Victory Portfolios, and Victory Portfolios II (collectively, the "Victory Funds Complex") in the aggregate, compensate the Adviser for these services. Amounts incurred for the six months ended June 30, 2020, are reflected on the Statement of Operations as Compliance fees.
Citi Fund Services Ohio, Inc. ("Citi"), an affiliate of Citibank, acts as sub-administrator and sub-fund accountant to the Fund pursuant to a Sub- Administration and Sub-Fund Accounting Services Agreement between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for reasonable out-of- pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund under the Fund Administration, Servicing, and Accounting Agreement. Amounts incurred during the six months ended June 30, 2020, are reflected on the Statement of Operations as Sub-Administration fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), provides transfer agency services to the Fund. VCTA, an affiliate of the Adviser, provides transfer agent services to the Fund based on an annual charge of $25.5 per shareholder account plus out-of-pocket expenses. VCTA pays a portion of these fees to certain intermediaries for the administration and servicing of accounts that are held with such intermediaries. Transfer agent's fees for Institutional Shares, Class A shares, and R6 Shares are paid monthly based on a fee accrued daily at an annualized rate of 0.10%, 0.10%, and 0.01% of average daily net assets, respectively, plus out-of-pocket expenses. Amounts incurred and paid during the six months ended June 30, 2020 are reflected on the Statement of Operations as Transfer Agent fees.
FIS Investor Services LLC serves as sub-transfer agent and dividend disbursing agent for the Fund pursuant to a Sub-Transfer Agent Agreement between VCTA and FIS Investor Services LLC. VCTA provides FIS Investor Services LLC a fee for providing these services.
Distributor/Underwriting Services:
Victory Capital Services, Inc. (the "Distributor"), an affiliate of the Adviser, serves as distributor for the continuous offering of the shares of the Fund pursuant to a Distribution Agreement between the Distributor and the Trust. Effective June 30, 2020, the Distributor's name was changed from Victory Capital Advisers, Inc.
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Pursuant to the Distribution and Service Plans adopted in accordance with Rule 12b-1 under the 1940 Act, the Distributor may receive a monthly distribution and service fee, at an annual rate of up to 0.25% of the average daily net assets of the Class A shares. These amounts incurred and paid to the Distributor are reflected on the Statement of Operations as 12b-1 fees.
Other Fees:
Citibank serves as the Fund's custodian.
K&L Gates LLP provides legal services to the Trust.
The Adviser has entered into an expense limitation agreement with the Fund until at least June 30, 2021. Under the terms of the agreement, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by certain classes of the Fund in any fiscal year exceed the expense limit for such classes of the Fund. Such excess amounts will be the liability of the Adviser. Interest, taxes, brokerage commissions, other expenditures, which are capitalized in accordance with GAAP, and other extraordinary expenses not incurred in the ordinary course of the Fund's business are excluded from the expense limits. As of June 30, 2020, the expense limits (excluding voluntary waivers) were 0.60%, 0.55%, 0.85%, and 0.39% for Fund Shares, Institutional Shares, Class A shares, and R6 Shares, respectively.
Under this expense limitation agreement, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the lesser of any operating expense limits in effect at the time of: (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. As of June 30, 2020, the following amounts are available to be repaid to the Adviser (amounts in thousands):
Expires 12/31/22 | Expires 12/31/23 | Total | |||||||||
$ | 27 | $ | 10 | $ | 37 |
The Adviser, may voluntarily waive or reimburse additional fees to assist the Fund in maintaining competitive expense ratios. Voluntary waivers and reimbursements applicable to the Fund are not available to be recouped at a future time. There were no voluntary waivers or reimbursements for the six months ended June 30, 2020.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, Administrator, Sub-Administrator, Sub-Fund Accountant, and Legal.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Global economies and financial markets are increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely affect issuers in another country or region. Geopolitical and other risks, including war, terrorism, trade disputes, political or economic dysfunction within some nations, public health crises and related geopolitical events, as well as environmental disasters such as earthquakes, fires, and floods, may add to instability in world economies and markets generally. Changes in trade policies and international trade agreements could affect the economies of many countries in unpredictable ways. Epidemics and/or pandemics, such as the coronavirus (or COVID-19), may result in, among other things, closing borders, disruptions to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and consumer activity, as well as general concern and uncertainty. The impact may be short-term or may last for extended periods.
The COVID-19 pandemic, which has spread rapidly across the world, has led and will continue to lead for an unknown period of time to disruptions in local, regional, national and global markets and economies. Among other things, the outbreak has resulted in, and until fully resolved is likely to continue to result in, among other things (1) government imposition of various forms of "stay-at-home" orders and the closing of "non-essential" businesses, resulting in significant disruption to the businesses of
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many issuers as well as lay-offs of employees; (2) increased requests by issuers of debt instruments for amendments and waivers of agreements to avoid default and increased defaults; (3) volatility and disruption of markets, including greater volatility in pricing and spreads; and (4) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general.
The fixed-income securities in the Fund's portfolio are subject to credit risk, which is the possibility that an issuer of a fixed-income security will fail to make timely interest and/or principal payments on its securities or that negative market perceptions of the issuer's ability to make such payments will cause the price of that security to decline. The Fund accepts some credit risk as a recognized means to enhance an investor's return. All fixed-income securities, varying from the highest quality to the very speculative, have some degree of credit risk.
The value of a debt security or other income-producing security changes in response to various factors, including, for example, market-related factors (such as changes in interest rates or changes in the risk appetite of investors generally) and changes in the actual or perceived ability of the issuer (or of issuers generally) to meet its (or their) obligations.
The Fund is actively managed, and the investment techniques and risk analyses used by the Fund's portfolio managers may not produce the desired results.
Many debt securities, derivatives and other financial instruments, including some of the Fund's investments, use the London Interbank Offered Rate ("LIBOR") as the reference or benchmark rate for variable interest rate calculations. However, the use of LIBOR started to come under pressure following manipulation allegations in 2012. Despite increased regulation and other corrective actions since that time, concerns have arisen regarding its viability as a benchmark, due largely to reduced activity in the financial markets that it measures. In June 2017, the Alternative Reference Rates Committee, a group of large U.S. banks working with the Federal Reserve, announced its selection of a new Secured Overnight Funding Rate ("SOFR"), which is intended to be a broad measure of secured overnight U.S. Treasury repo rates, as an appropriate replacement for LIBOR. The Federal Reserve Bank of New York began publishing the SOFR in 2018, expecting that it could be used on a voluntary basis in new instruments and transactions. Bank working groups and regulators in other countries have suggested other alternatives for their markets, including the Sterling Overnight Interbank Average Rate ("SONIA") in England. In July 2017, the Financial Conduct Authority (the "FCA"), the United Kingdom financial regulatory body, announced that after 2021 it will cease its active encouragement of UK banks to provide the quotations needed to sustain LIBOR. That announcement suggests that LIBOR may cease to be published after that time. The roughly three-year period until the end of 2021 is expected to be enough time for market participants to transition to the use of a different benchmark for both new and existing securities and transactions. Various financial industry groups have begun planning for that transition, but there are obstacles to converting certain longer-term securities and transactions to a new benchmark. Transition planning is at an early stage, and neither the effect of the transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets that currently rely on the LIBOR to determine interest rates. It could also lead to a reduction in the value of some LIBOR-based investments and reduce the effectiveness of new hedges placed against existing LIBOR-based instruments. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur before the end of 2021.
6. Borrowing and Interfund Lending:
Line of Credit:
For the six months ended June 30, 2020, the Victory Funds Complex participated in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2020 with a termination date of June 28, 2021. Under the agreement with Citibank, the Victory Funds Complex may borrow up to $600 million, of which $300 million is committed and $300 million is uncommitted. $40 million of the Line of Credit is reserved for use by the Victory Floating Rate Fund (herein, the "Fund"), another series of the Victory Funds Complex, with that Fund paying the related commitment fees for that amount. The purpose of the agreement is to meet temporary or
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emergency cash needs. For the six months ended June 30, 2020, Citibank received an annual commitment fee of 0.15% on $300 million for providing the Line of Credit. Each fund in the Victory Funds Complex pays a pro-rata portion of the commitment fees plus any interest (one month LIBOR plus one percent) on amounts borrowed. Effective June 29, 2020, under an amended Line of Credit agreement, Citibank will also receive an annual upfront fee of 0.10% on the $300 million committed line of credit. Each fund in the Victory Funds Complex will pay a pro-rata portion of the upfront fee. Interest charged to the Fund, if any, during the period are reflected on the Statement of Operations under line of credit fees.
The Fund had no borrowings with Citibank during the six months ended June 30, 2020.
Interfund Lending:
The Trust and Adviser rely on an exemptive order granted by the SEC in March 2017 (the "Order"), permitting the establishment and operation of an Interfund Lending Facility (the "Facility"). The Facility allows the Fund to directly lend and borrow money to or from any other Fund in the Victory Fund Complex relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are allowed for temporary or emergency purposes. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. As a Borrower, interest charged to the Fund, if any during the period is reflected on the Statement of Operations under Interfund lending fees. As a Lender, interest earned by the Fund, if any, during the period is reflected on the Statement of Operations under Income on Interfund lending.
The average borrowing and lending for the days outstanding and average interest rate for the Fund during the six months ended June 30, 2020 were as follows (amounts in thousands):
Borrower or Lender | Amount Outstanding at June 30, 2020 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||
Borrower | $ | — | $ | 4,541 | 1 | 0.89 | % | 4,541 |
* For the six months ended June 30, 2020, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
The Fund intends to declare daily and distribute any net investment income monthly. Distributable net realized gains, if any, are declared and paid at least annually.
The amounts of dividends from net investment income and distributions from net realized gains (collectively, distributions to shareholders) are determined in accordance with federal income tax regulations, which may differ from GAAP. To the extent these "book/tax" differences are permanent in nature (e.g., net operating loss and distribution reclassification), such amounts are reclassified within the components of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash sales) do not require reclassification. To the extent dividends and distributions exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Net investment losses incurred by the Fund may be reclassified as an offset to capital on the accompanying Statement of Assets and Liabilities.
The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) will be determined at the end of the current tax year ending December 31, 2020.
At December 31, 2019, the Fund had net capital loss carryforwards as shown in the table below (amounts in thousands). It is unlikely that the Board will authorize a distribution of capital gains realized in the future until the capital loss carryforwards have been used.
Short-Term Amount | Long-Term Amount | Total | |||||||||
$ | 2,069 | $ | 698 | $ | 2,767 |
For the most recent tax year ended December 31, 2019, the Fund utilized capital loss carryforwards of $1,015 thousand, to offset capital gains.
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USAA Mutual Funds Trust | Supplemental Information June 30, 2020 |
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Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (800) 539-3863. The information is also included in the Fund's Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Fund voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
Availability of Schedules of Portfolio Investments:
The Trust files a complete list of Schedules of Portfolio Investments with the SEC for the first and third quarter of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's website at www.sec.gov.
Expense Examples
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 through June 30, 2020 (unless noted otherwise).
The Actual Expense figures in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Actual Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
The Hypothetical Expense figures in the table below provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
Please note the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. If these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/20 | Actual Ending Account Value 6/30/20 | Hypothetical Ending Account Value 6/30/20 | Actual Expenses Paid During Period 1/1/20- 6/30/20* | Hypothetical Expenses Paid During Period 1/1/20- 6/30/20* | Annualized Expense Ratio During Period 1/1/20- 6/30/20 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 997.00 | $ | 1,021.98 | $ | 2.88 | $ | 2.92 | 0.58 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 997.20 | 1,022.13 | 2.73 | 2.77 | 0.55 | % | ||||||||||||||||||||
Class A shares** | 1,000.00 | 1001.10 | 1,020.64 | 0.02 | 4.27 | 0.85 | % | ||||||||||||||||||||
Class R6 Shares | 1,000.00 | 998.00 | 1,022.92 | 1.94 | 1.96 | 0.39 | % |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 182/366 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
** Actual Expenses Paid are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 1/366 to reflect the stub period from commencement of operations June 29, 2020 through June 30, 2020.
31
USAA Mutual Funds Trust | Supplemental Information — continued June 30, 2020 |
(Unaudited)
Liquidity Risk Management Program:
The USAA Mutual Funds have adopted and implemented a written liquidity risk management program (the "LRMP") as required by Rule 22e-4 under the 1940 Act. The LRMP is reasonably designed to assess and manage the Fund's liquidity risk, taking into consideration the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed market conditions; its short and long-term cash flow projections; and its cash holdings and access to other liquidity management tools such as available funding sources including the Victory Funds Complex Interfund Lending Facility and Line of Credit (discussed in the Notes to Financial Statements). The USAA Mutual Funds' Board of Trustees approved the appointment of the Fund's investment adviser, Victory Capital, as the administrator of the LRMP. At an in-person meeting held on February 26, 2020, Victory Capital provided an oral and written report to the Trustees on the operation and effectiveness of the LRMP during the previous year.
Victory Capital manages liquidity risks associated with the Fund's investments by monitoring, among other things, cash and cash equivalents, any use of derivatives, the concentration of investments, the appropriateness of the Fund's investment strategy, and by classifying every fund investment as either highly liquid, moderately liquid, less liquid or illiquid on at least a monthly basis. To assist with the classification of Fund investments, Victory Capital has retained a third-party provider of liquidity evaluation services. This provider determines preliminary liquidity classifications for all portfolio holdings based upon portfolio-level data and certain assumptions provided by Victory Capital. Victory Capital reviews the preliminary liquidity classifications, and, when appropriate, considers other information including input from the Fund's portfolio managers (including the portfolio managers employed by any investment sub-advisers) in determining final liquidity classifications.
The report from Victory Capital concluded that the Fund did not experience any significant liquidity challenges during the covered period, and the Fund's LRMP is reasonably designed to assess and manage its liquidity risk. The report also concluded that the LRMP continues to operate adequately and effectively to enable Victory Capital to oversee and manage liquidity risk and ensure the Fund is able to meet redemption requests without significant dilution to the remaining investors' interest in the Fund. During the review period, the Fund's portfolio consisted primarily of highly liquid investments, which are defined as cash and any investments reasonably expected to be converted to cash in current market conditions in three business days or less without significantly changing the market value of the investment. Therefore, the Fund has not adopted a Highly Liquid Investment Minimum. The Fund's investments were below the limitation on illiquid investments during the review period. Additionally, Victory Capital indicated that no events occurred that would require the filing of Form N-LIQUID and recommended no material changes to the LRMP.
32
Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
P.O. Box 182593
Columbus, Ohio 43218-2593
Visit our website at: | Call | ||||||
vcm.com | (800 | ) 235-8396 |
94422-0820
Item 2. Code of Ethics.
Not applicable – only for annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable – only for annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable – only for annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a)(1) Not applicable.
(a)(2) Not applicable.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) Not applicable.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | USAA Mutual Fund Trust |
By (Signature and Title)* | /s/ James K. De Vries | |
James K. De Vries, Principal Financial Officer |
Date | September 3, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Christopher K. Dyer | |
Christopher K. Dyer, Principal Executive Officer |
Date | September 3, 2020 |
By (Signature and Title)* | /s/ James K. De Vries | |
James K. De Vries, Principal Financial Officer |
Date | September 3, 2020 |