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, 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: March 31
Date of reporting period: September 30, 2021
Item 1. Reports to Stockholders.
September 30, 2021
Semi Annual Report
USAA Global Equity Income Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 11 | ||||||
Statement of Operations | 12 | ||||||
Statements of Changes in Net Assets | 13 | ||||||
Financial Highlights | 14 | ||||||
Notes to Financial Statements | 16 | ||||||
Supplemental Information | 25 | ||||||
Proxy Voting and Portfolio Holdings Information | 25 | ||||||
Expense Examples | 25 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Global Equity Income Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks total return with an emphasis on current income.
Sector Allocation*
September 30, 2021
(% of Net Assets)
* Does not include futures contracts, money market instruments, 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%.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Common Stocks (99.2%) | |||||||||||
Australia (0.8%): | |||||||||||
Energy (0.1%): | |||||||||||
Washington H Soul Pattinson & Co. Ltd. (a) | 3,210 | $ | 89 | ||||||||
Financials (0.4%): | |||||||||||
ASX Ltd. | 4,306 | 249 | |||||||||
Materials (0.3%): | |||||||||||
Evolution Mining Ltd. | 70,468 | 178 | |||||||||
516 | |||||||||||
Austria (0.1%): | |||||||||||
Energy (0.1%): | |||||||||||
OMV AG | 1,357 | 82 | |||||||||
Belgium (0.4%): | |||||||||||
Communication Services (0.3%): | |||||||||||
Telenet Group Holding NV | 4,803 | 183 | |||||||||
Consumer Staples (0.1%): | |||||||||||
Etablissements Franz Colruyt NV | 1,235 | 63 | |||||||||
246 | |||||||||||
Canada (5.5%): | |||||||||||
Consumer Discretionary (0.6%): | |||||||||||
Dollarama, Inc. | 3,899 | 169 | |||||||||
Magna International, Inc. | 2,945 | 222 | |||||||||
391 | |||||||||||
Consumer Staples (0.1%): | |||||||||||
Metro, Inc. | 1,399 | 68 | |||||||||
Energy (0.8%): | |||||||||||
Canadian Natural Resources Ltd. | 10,141 | 371 | |||||||||
Parkland Corp. | 4,259 | 119 | |||||||||
490 | |||||||||||
Financials (3.3%): | |||||||||||
Bank of Montreal | 5,065 | 506 | |||||||||
Manulife Financial Corp. | 13,254 | 255 | |||||||||
Power Corp. of Canada | 9,948 | 328 | |||||||||
Sun Life Financial, Inc. | 6,426 | 331 | |||||||||
The Bank of Nova Scotia | 4,500 | 277 | |||||||||
The Toronto-Dominion Bank | 5,611 | 371 | |||||||||
2,068 | |||||||||||
Industrials (0.2%): | |||||||||||
Thomson Reuters Corp. | 855 | 95 | |||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Information Technology (0.5%): | |||||||||||
Constellation Software, Inc. | 178 | $ | 292 | ||||||||
3,404 | |||||||||||
Denmark (1.1%): | |||||||||||
Health Care (0.9%): | |||||||||||
Coloplast A/S Class B | 1,254 | 196 | |||||||||
Novo Nordisk A/S Class B | 3,439 | 331 | |||||||||
527 | |||||||||||
Industrials (0.2%): | |||||||||||
AP Moller — Maersk A/S Class B | 55 | 149 | |||||||||
676 | |||||||||||
Finland (0.7%): | |||||||||||
Communication Services (0.1%): | |||||||||||
Elisa Oyj | 1,132 | 70 | |||||||||
Utilities (0.6%): | |||||||||||
Fortum Oyj | 11,424 | 347 | |||||||||
417 | |||||||||||
France (0.5%): | |||||||||||
Consumer Staples (0.5%): | |||||||||||
L'Oreal SA | 780 | 323 | |||||||||
Germany (1.5%): | |||||||||||
Consumer Discretionary (0.2%): | |||||||||||
Volkswagen AG Preference Shares | 398 | 89 | |||||||||
Financials (1.1%): | |||||||||||
Allianz SE Registered Shares | 2,734 | 613 | |||||||||
Deutsche Boerse AG | 366 | 59 | |||||||||
672 | |||||||||||
Industrials (0.1%): | |||||||||||
Deutsche Post AG Registered Shares | 1,063 | 67 | |||||||||
Information Technology (0.1%): | |||||||||||
SAP SE | 603 | 81 | |||||||||
909 | |||||||||||
Hong Kong (0.9%): | |||||||||||
Consumer Discretionary (0.1%): | |||||||||||
Xinyi Glass Holdings Ltd. | 26,000 | 77 | |||||||||
Financials (0.3%): | |||||||||||
Hong Kong Exchanges and Clearing Ltd. | 2,600 | 160 | |||||||||
Industrials (0.2%): | |||||||||||
Jardine Matheson Holdings Ltd. | 2,000 | 106 | |||||||||
Utilities (0.3%): | |||||||||||
Power Assets Holdings Ltd. | 37,000 | 217 | |||||||||
560 | |||||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Ireland (1.9%): | |||||||||||
Health Care (0.1%): | |||||||||||
STERIS PLC | 353 | $ | 72 | ||||||||
Industrials (0.6%): | |||||||||||
Eaton Corp. PLC | 1,889 | 282 | |||||||||
Trane Technologies PLC | 728 | 126 | |||||||||
408 | |||||||||||
Information Technology (1.2%): | |||||||||||
Seagate Technology Holdings PLC | 8,852 | 730 | |||||||||
1,210 | |||||||||||
Italy (0.5%): | |||||||||||
Utilities (0.5%): | |||||||||||
Enel SpA | 25,013 | 192 | |||||||||
Terna — Rete Elettrica Nazionale | 19,120 | 136 | |||||||||
328 | |||||||||||
Japan (7.7%): | |||||||||||
Communication Services (2.2%): | |||||||||||
Kakaku.com, Inc. | 2,700 | 87 | |||||||||
KDDI Corp. | 14,700 | 484 | |||||||||
Nintendo Co. Ltd. | 800 | 382 | |||||||||
Nippon Telegraph & Telephone Corp. | 16,400 | 455 | |||||||||
1,408 | |||||||||||
Consumer Discretionary (1.6%): | |||||||||||
Bridgestone Corp. | 5,100 | 241 | |||||||||
Iida Group Holdings Co. Ltd. | 7,500 | 193 | |||||||||
Sony Group Corp. | 1,500 | 167 | |||||||||
Toyota Motor Corp. | 21,500 | 383 | |||||||||
984 | |||||||||||
Consumer Staples (0.5%): | |||||||||||
Seven & i Holdings Co. Ltd. | 6,400 | 291 | |||||||||
Energy (0.5%): | |||||||||||
ENEOS Holdings, Inc. | 80,400 | 327 | |||||||||
Financials (1.0%): | |||||||||||
ORIX Corp. | 9,100 | 170 | |||||||||
Resona Holdings, Inc. | 29,800 | 119 | |||||||||
Sumitomo Mitsui Financial Group, Inc. | 10,000 | 352 | |||||||||
641 | |||||||||||
Health Care (0.3%): | |||||||||||
Hoya Corp. | 1,100 | 172 | |||||||||
Industrials (0.7%): | |||||||||||
ITOCHU Corp. | 10,600 | 309 | |||||||||
Mitsubishi Corp. | 4,100 | 129 | |||||||||
438 | |||||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Information Technology (0.7%): | |||||||||||
Fujitsu Ltd. | 1,100 | $ | 199 | ||||||||
Nomura Research Institute Ltd. | 3,100 | 114 | |||||||||
Seiko Epson Corp. | 5,100 | 103 | |||||||||
416 | |||||||||||
Materials (0.2%): | |||||||||||
Asahi Kasei Corp. | 13,300 | 142 | |||||||||
4,819 | |||||||||||
Netherlands (2.8%): | |||||||||||
Communication Services (0.3%): | |||||||||||
Koninklijke KPN NV | 56,389 | 177 | |||||||||
Consumer Staples (0.8%): | |||||||||||
Koninklijke Ahold Delhaize NV | 14,985 | 499 | |||||||||
Industrials (0.5%): | |||||||||||
Wolters Kluwer NV | 3,057 | 324 | |||||||||
Information Technology (0.8%): | |||||||||||
| ASML Holding NV | 625 | 467 | |||||||||
Materials (0.4%): | |||||||||||
LyondellBasell Industries NV Class A | 2,763 | 259 | |||||||||
1,726 | |||||||||||
Singapore (0.7%): | |||||||||||
Financials (0.7%): | |||||||||||
DBS Group Holdings Ltd. | 3,400 | 76 | |||||||||
Oversea-Chinese Banking Corp. Ltd. | 7,000 | 59 | |||||||||
Singapore Exchange Ltd. | 26,400 | 193 | |||||||||
United Overseas Bank Ltd. | 6,400 | 121 | |||||||||
449 | |||||||||||
Spain (1.3%): | |||||||||||
Energy (0.3%): | |||||||||||
Enagas SA | 6,585 | 146 | |||||||||
Utilities (1.0%): | |||||||||||
Endesa SA | 9,299 | 188 | |||||||||
Iberdrola SA | 9,493 | 95 | |||||||||
Red Electrica Corp. SA | 17,395 | 349 | |||||||||
632 | |||||||||||
778 | |||||||||||
Sweden (0.3%): | |||||||||||
Consumer Discretionary (0.3%): | |||||||||||
Husqvarna AB Class B | 16,012 | 191 | |||||||||
Switzerland (6.0%): | |||||||||||
Consumer Discretionary (0.5%): | |||||||||||
Garmin Ltd. | 1,881 | 292 | |||||||||
Consumer Staples (0.8%): | |||||||||||
Nestle SA Registered Shares | 4,121 | 497 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Financials (0.8%): | |||||||||||
Partners Group Holding AG | 96 | $ | 150 | ||||||||
Zurich Insurance Group AG | 843 | 345 | |||||||||
495 | |||||||||||
Health Care (1.8%): | |||||||||||
Novartis AG Registered Shares | 8,016 | 657 | |||||||||
Roche Holding AG | 1,375 | 502 | |||||||||
1,159 | |||||||||||
Industrials (1.4%): | |||||||||||
ABB Ltd. Registered Shares | 6,186 | 207 | |||||||||
Geberit AG Registered Shares | 660 | 485 | |||||||||
SGS SA Registered Shares | 58 | 169 | |||||||||
861 | |||||||||||
Materials (0.7%): | |||||||||||
EMS-Chemie Holding AG | 77 | 73 | |||||||||
Givaudan SA Registered Shares | 50 | 228 | |||||||||
Holcim Ltd. | 2,542 | 122 | |||||||||
423 | |||||||||||
3,727 | |||||||||||
United Kingdom (2.8%): | |||||||||||
Consumer Staples (1.0%): | |||||||||||
British American Tobacco PLC | 18,338 | 641 | |||||||||
Financials (0.5%): | |||||||||||
Admiral Group PLC | 4,108 | 172 | |||||||||
Aon PLC Class A | 448 | 128 | |||||||||
300 | |||||||||||
Industrials (0.6%): | |||||||||||
Ferguson PLC | 626 | 87 | |||||||||
Intertek Group PLC | 1,012 | 68 | |||||||||
RELX PLC | 8,774 | 252 | |||||||||
407 | |||||||||||
Information Technology (0.2%): | |||||||||||
The Sage Group PLC | 13,234 | 126 | |||||||||
Materials (0.5%): | |||||||||||
Rio Tinto PLC | 4,333 | 284 | |||||||||
1,758 | |||||||||||
United States (63.7%): | |||||||||||
Communication Services (3.4%): | |||||||||||
Activision Blizzard, Inc. | 866 | 67 | |||||||||
Comcast Corp. Class A | 4,505 | 252 | |||||||||
Omnicom Group, Inc. | 10,072 | 730 | |||||||||
The Interpublic Group of Cos., Inc. | 5,500 | 202 | |||||||||
Verizon Communications, Inc. | 15,776 | 852 | |||||||||
2,103 | |||||||||||
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Consumer Discretionary (5.7%): | |||||||||||
Best Buy Co., Inc. | 5,806 | $ | 614 | ||||||||
D.R. Horton, Inc. | 1,235 | 104 | |||||||||
Genuine Parts Co. | 3,457 | 419 | |||||||||
Lowe's Cos., Inc. | 1,693 | 343 | |||||||||
McDonald's Corp. | 930 | 224 | |||||||||
Starbucks Corp. | 1,909 | 211 | |||||||||
Target Corp. | 3,227 | 738 | |||||||||
The Home Depot, Inc. | 2,478 | 813 | |||||||||
Tractor Supply Co. | 428 | 87 | |||||||||
3,553 | |||||||||||
Consumer Staples (5.5%): | |||||||||||
Bunge Ltd. | 1,054 | 86 | |||||||||
Campbell Soup Co. | 3,100 | 130 | |||||||||
Colgate-Palmolive Co. | 3,883 | 293 | |||||||||
General Mills, Inc. | 5,218 | 312 | |||||||||
Kimberly-Clark Corp. | 745 | 99 | |||||||||
Philip Morris International, Inc. | 7,934 | 752 | |||||||||
The Clorox Co. | 2,101 | 348 | |||||||||
The Hershey Co. | 1,176 | 199 | |||||||||
The Kroger Co. | 9,494 | 384 | |||||||||
The Procter & Gamble Co. | 2,262 | 316 | |||||||||
Tyson Foods, Inc. Class A | 3,679 | 290 | |||||||||
Walgreens Boots Alliance, Inc. | 3,693 | 174 | |||||||||
Walmart, Inc. | 459 | 64 | |||||||||
| 3,447 | ||||||||||
Energy (1.1%): | |||||||||||
Cabot Oil & Gas Corp. | 5,215 | 114 | |||||||||
ConocoPhillips | 3,135 | 212 | |||||||||
EOG Resources, Inc. | 4,204 | 337 | |||||||||
663 | |||||||||||
Financials (10.0%): | |||||||||||
Aflac, Inc. | 3,700 | 193 | |||||||||
Ameriprise Financial, Inc. | 1,893 | 500 | |||||||||
Citizens Financial Group, Inc. | 3,500 | 164 | |||||||||
Comerica, Inc. | 1,389 | 112 | |||||||||
Erie Indemnity Co. Class A | 884 | 158 | |||||||||
Fifth Third Bancorp | 5,000 | 212 | |||||||||
Huntington Bancshares, Inc. | 17,386 | 269 | |||||||||
KeyCorp | 26,225 | 567 | |||||||||
M&T Bank Corp. | 2,577 | 385 | |||||||||
MetLife, Inc. | 6,854 | 423 | |||||||||
Morgan Stanley | 1,774 | 172 | |||||||||
MSCI, Inc. | 554 | 337 | |||||||||
Regions Financial Corp. | 9,856 | 210 | |||||||||
S&P Global, Inc. | 868 | 369 | |||||||||
T. Rowe Price Group, Inc. | 4,032 | 793 | |||||||||
The Allstate Corp. | 3,932 | 500 | |||||||||
The Goldman Sachs Group, Inc. | 703 | 266 | |||||||||
The PNC Financial Services Group, Inc. | 1,394 | 273 | |||||||||
The Progressive Corp. | 2,287 | 207 | |||||||||
The Travelers Cos., Inc. | 1,000 | 152 | |||||||||
6,262 | |||||||||||
See notes to financial statements.
8
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Health Care (8.2%): | |||||||||||
Abbott Laboratories | 2,500 | $ | 295 | ||||||||
AmerisourceBergen Corp. | 550 | 66 | |||||||||
Amgen, Inc. | 3,112 | 662 | |||||||||
Anthem, Inc. | 784 | 292 | |||||||||
Bristol-Myers Squibb Co. | 3,256 | 193 | |||||||||
Cardinal Health, Inc. | 2,964 | 147 | |||||||||
CVS Health Corp. | 791 | 67 | |||||||||
Danaher Corp. | 534 | 163 | |||||||||
Eli Lilly & Co. | 2,095 | 484 | |||||||||
Johnson & Johnson | 4,762 | 769 | |||||||||
Medtronic PLC | 1,251 | 157 | |||||||||
Pfizer, Inc. | 12,305 | 529 | |||||||||
Quest Diagnostics, Inc. | 945 | 137 | |||||||||
Stryker Corp. | 460 | 121 | |||||||||
Thermo Fisher Scientific, Inc. | 258 | 147 | |||||||||
UnitedHealth Group, Inc. | 2,293 | 896 | |||||||||
5,125 | |||||||||||
Industrials (7.6%): | |||||||||||
3M Co. | 3,247 | 570 | |||||||||
C.H. Robinson Worldwide, Inc. | 858 | 75 | |||||||||
Cummins, Inc. | 1,955 | 439 | |||||||||
Fastenal Co. | 5,169 | 267 | |||||||||
FedEx Corp. | 326 | 72 | |||||||||
Honeywell International, Inc. | 956 | 203 | |||||||||
Illinois Tool Works, Inc. | 1,208 | 250 | |||||||||
Lockheed Martin Corp. | 1,372 | 473 | |||||||||
Norfolk Southern Corp. | 419 | 100 | |||||||||
Northrop Grumman Corp. | 334 | 120 | |||||||||
PACCAR, Inc. | 3,754 | 296 | |||||||||
Parker-Hannifin Corp. | 215 | 60 | |||||||||
Republic Services, Inc. | 668 | 80 | |||||||||
Robert Half International, Inc. | 4,014 | 403 | |||||||||
Rockwell Automation, Inc. | 1,409 | 414 | |||||||||
Snap-on, Inc. | 700 | 146 | |||||||||
Union Pacific Corp. | 824 | 162 | |||||||||
United Parcel Service, Inc. Class B | 1,961 | 357 | |||||||||
W.W. Grainger, Inc. | 384 | 151 | |||||||||
Waste Management, Inc. | 482 | 72 | |||||||||
4,710 | |||||||||||
Information Technology (16.2%): | |||||||||||
Apple, Inc. | 14,897 | 2,108 | |||||||||
Applied Materials, Inc. | 2,366 | 304 | |||||||||
Broadcom, Inc. | 804 | 390 | |||||||||
Cisco Systems, Inc. | 11,744 | 639 | |||||||||
HP, Inc. | 6,763 | 185 | |||||||||
Intel Corp. | 7,444 | 397 | |||||||||
Intuit, Inc. | 430 | 232 | |||||||||
Juniper Networks, Inc. | 4,700 | 129 | |||||||||
See notes to financial statements.
9
| USAA Mutual Funds Trust USAA Global Equity Income Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Lam Research Corp. | 147 | $ | 84 | ||||||||
Mastercard, Inc. Class A | 412 | 143 | |||||||||
Microsoft Corp. | 8,222 | 2,318 | |||||||||
NetApp, Inc. | 9,071 | 814 | |||||||||
NVIDIA Corp. | 1,388 | 287 | |||||||||
Oracle Corp. | 5,220 | 455 | |||||||||
Paychex, Inc. | 2,331 | 262 | |||||||||
QUALCOMM, Inc. | 1,633 | 211 | |||||||||
Texas Instruments, Inc. | 5,160 | 992 | |||||||||
Visa, Inc. Class A | 758 | 169 | |||||||||
10,119 | |||||||||||
Materials (3.1%): | |||||||||||
Air Products & Chemicals, Inc. | 307 | 79 | |||||||||
Celanese Corp. | 1,096 | 165 | |||||||||
International Paper Co. | 6,618 | 370 | |||||||||
Nucor Corp. | 2,812 | 277 | |||||||||
Packaging Corp. of America | 3,352 | 461 | |||||||||
PPG Industries, Inc. | 1,600 | 229 | |||||||||
RPM International, Inc. | 1,083 | 84 | |||||||||
Steel Dynamics, Inc. | 1,455 | 85 | |||||||||
The Sherwin-Williams Co. | 747 | 209 | |||||||||
1,959 | |||||||||||
Utilities (2.9%): | |||||||||||
American Electric Power Co., Inc. | 1,400 | 114 | |||||||||
Duke Energy Corp. | 4,073 | 397 | |||||||||
Exelon Corp. | 4,236 | 205 | |||||||||
NRG Energy, Inc. | 8,439 | 345 | |||||||||
OGE Energy Corp. | 6,617 | 218 | |||||||||
UGI Corp. | 12,979 | 553 | |||||||||
1,832 | |||||||||||
39,773 | |||||||||||
Total Common Stocks (Cost $47,052) | 61,892 | ||||||||||
Collateral for Securities Loaned^ (0.2%) | |||||||||||
United States (0.2%): | |||||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.03% (b) | 93,467 | 93 | |||||||||
Total Collateral for Securities Loaned (Cost $93) | 93 | ||||||||||
Total Investments (Cost $47,145) — 99.4% | 61,985 | ||||||||||
Other assets in excess of liabilities — 0.6% | 405 | ||||||||||
NET ASSETS — 100.00% | $ | 62,390 | |||||||||
^ Purchased with cash collateral from securities on loan.
(a) All or a portion of this security is on loan.
(b) Rate disclosed is the daily yield on September 30, 2021.
PLC — Public Limited Company
See notes to financial statements.
10
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Global Equity Income Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $47,145) | $ | 61,985 | (a) | ||||
Foreign currency, at value (Cost $9) | 9 | ||||||
Cash | 298 | ||||||
Receivables: | |||||||
Interest and dividends | 148 | ||||||
Capital shares issued | 1 | ||||||
Reclaims | 126 | ||||||
From Adviser | 18 | ||||||
Prepaid expenses | 13 | ||||||
Total Assets | 62,598 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 93 | ||||||
Capital shares redeemed | 18 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 28 | ||||||
Administration fees | 8 | ||||||
Custodian fees | 4 | ||||||
Transfer agent fees | 12 | ||||||
Compliance fees | — | (b) | |||||
Trustees' fees | 1 | ||||||
Other accrued expenses | 44 | ||||||
Total Liabilities | 208 | ||||||
Net Assets: | |||||||
Capital | 42,626 | ||||||
Total accumulated earnings/(loss) | 19,764 | ||||||
Net Assets | $ | 62,390 | |||||
Net Assets | |||||||
Fund Shares | $ | 62,368 | |||||
Institutional Shares | 22 | ||||||
Total | $ | 62,390 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 4,987 | ||||||
Institutional Shares | 2 | ||||||
Total | 4,989 | ||||||
Net asset value, offering and redemption price per share: (c) | |||||||
Fund Shares | $ | 12.51 | |||||
Institutional Shares | $ | 12.21 | |||||
(a) Includes $88 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.
11
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Global Equity Income Fund | |||||||
Investment Income: | |||||||
Dividends | $ | 944 | |||||
Securities lending (net of fees) | 1 | ||||||
Foreign tax withholding | (48 | ) | |||||
Total Income | 897 | ||||||
Expenses: | |||||||
Investment advisory fees | 181 | ||||||
Administration fees — Fund Shares | 49 | ||||||
Administration fees — Institutional Shares | — | (a) | |||||
Sub-Administration fees | 11 | ||||||
Custodian fees | 12 | ||||||
Transfer agent fees — Fund Shares | 44 | ||||||
Transfer agent fees — Institutional Shares | — | (a) | |||||
Trustees' fees | 24 | ||||||
Compliance fees | — | (a) | |||||
Legal and audit fees | 28 | ||||||
State registration and filing fees | 14 | ||||||
Interfund lending fees | — | (a) | |||||
Interest fees | — | (a) | |||||
Other expenses | 25 | ||||||
Total Expenses | 388 | ||||||
Expenses waived/reimbursed by Adviser | (40 | ) | |||||
Net Expenses | 348 | ||||||
Net Investment Income (Loss) | 549 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
| Net realized gains (losses) from investment securities and foreign currency translations | 5,529 | ||||||
| Net change in unrealized appreciation/depreciation on investment securities and foreign currency transactions | (2,384 | ) | |||||
Net realized/unrealized gains (losses) on investments | 3,145 | ||||||
Change in net assets resulting from operations | $ | 3,694 | |||||
(a) Rounds to less than $1 thousand.
See notes to financial statements.
12
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
USAA Global Equity Income Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 549 | $ | 1,215 | |||||||
Net realized gains (losses) from investments | 5,529 | (359 | ) | ||||||||
| Net change in unrealized appreciation/depreciation on investments | (2,384 | ) | 25,890 | ||||||||
Change in net assets resulting from operations | 3,694 | 26,746 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (669 | ) | (1,102 | ) | |||||||
Institutional Shares | — | (89 | ) | ||||||||
Change in net assets resulting from distributions to shareholders | (669 | ) | (1,191 | ) | |||||||
Change in net assets resulting from capital transactions | (16,347 | ) | (14,549 | ) | |||||||
Change in net assets | (13,322 | ) | 11,006 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 75,712 | 64,706 | |||||||||
End of period | $ | 62,390 | $ | 75,712 | |||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 2,433 | $ | 5,174 | |||||||
Distributions reinvested | 667 | 921 | |||||||||
Cost of shares redeemed | (13,206 | ) | (20,644 | ) | |||||||
Total Fund Shares | $ | (10,106 | ) | $ | (14,549 | ) | |||||
Institutional Shares | |||||||||||
Proceeds from shares issued | $ | 22 | $ | — | |||||||
Cost of shares redeemed | (6,263 | ) | — | ||||||||
Total Institutional Shares | $ | (6,241 | ) | $ | — | ||||||
Change in net assets resulting from capital transactions | $ | (16,347 | ) | $ | (14,549 | ) | |||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 191 | 499 | |||||||||
Reinvested | 53 | 90 | |||||||||
Redeemed | (1,049 | ) | (1,981 | ) | |||||||
Total Fund Shares | (805 | ) | (1,392 | ) | |||||||
Institutional Shares | |||||||||||
Issued | 2 | — | |||||||||
Redeemed | (500 | ) | — | ||||||||
Total Institutional Shares | (498 | ) | — | ||||||||
Change in Shares | (1,303 | ) | (1,392 | ) | |||||||
See notes to financial statements.
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 Global Equity Income Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 12.03 | 0.11 | (d) | 0.50 | 0.61 | (0.13 | ) | — | ||||||||||||||||||
| Year Ended March 31: 2021 | $ | 8.42 | 0.17 | (d) | 3.61 | 3.78 | (0.17 | ) | — | ||||||||||||||||||
| 2020 | $ | 10.51 | 0.24 | (d) | (1.57 | ) | (1.33 | ) | (0.22 | ) | (0.54 | ) | |||||||||||||||
| 2019 | $ | 10.88 | 0.27 | 0.06 | 0.33 | (0.27 | ) | (0.43 | ) | ||||||||||||||||||
| 2018 | $ | 10.42 | 0.23 | 0.54 | 0.77 | (0.23 | ) | (0.08 | ) | ||||||||||||||||||
| 2017 | $ | 9.39 | 0.21 | 1.03 | 1.24 | (0.21 | ) | — | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 12.04 | 0.08 | (d) | 0.09 | 0.17 | — | — | |||||||||||||||||||
| Year Ended March 31: 2021 | $ | 8.43 | 0.18 | (d) | 3.61 | 3.79 | (0.18 | ) | — | ||||||||||||||||||
| 2020 | $ | 10.52 | 0.25 | (d) | (1.56 | ) | (1.31 | ) | (0.24 | ) | (0.54 | ) | |||||||||||||||
| 2019 | $ | 10.89 | 0.27 | 0.07 | 0.34 | (0.28 | ) | (0.43 | ) | ||||||||||||||||||
| 2018 | $ | 10.43 | 0.23 | 0.54 | 0.77 | (0.23 | ) | (0.08 | ) | ||||||||||||||||||
| 2017 | $ | 9.39 | 0.23 | 1.02 | 1.25 | (0.21 | ) | — | |||||||||||||||||||
* 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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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 a return to normal trading levels after a prior year transition or asset allocation shift.
(f) Reflects increased trading activity due to current year transition or asset allocation shift.
(g) Prior to August 1, 2018, USAA Asset Management Company ("AMCO") (previous investment Adviser) voluntarily agreed to limit the annual expenses of the Fund Shares to 1.20% of the Fund Shares' average daily net assets.
(h) Prior to August 1, 2018, AMCO voluntarily agreed to limit the annual expenses of the Institutional Shares to 1.10% of the Institutional Shares' average daily net assets.
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*(a) | Net Expenses**^(b) | Net Investment Income (Loss)(b) | Gross Expenses(b) | Net Assets, End of Period (000's) | Portfolio Turnover(a)(c) | ||||||||||||||||||||||||||||
USAA Global Equity Income Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | (0.13 | ) | $ | 12.51 | 5.09 | % | 1.04 | % | 1.65 | % | 1.15 | % | $ | 62,368 | 10 | % | |||||||||||||||||||
| Year Ended March 31: 2021 | (0.17 | ) | $ | 12.03 | 45.23 | % | 1.03 | % | 1.65 | % | 1.18 | % | $ | 69,690 | 46 | %(e) | |||||||||||||||||||
| 2020 | (0.76 | ) | $ | 8.42 | (14.02 | )% | 1.00 | % | 2.30 | % | 1.14 | % | $ | 60,491 | 109 | %(f) | |||||||||||||||||||
| 2019 | (0.70 | ) | $ | 10.51 | 3.43 | % | 1.03 | %(g) | 2.56 | % | 1.10 | % | $ | 75,086 | 15 | % | |||||||||||||||||||
| 2018 | (0.31 | ) | $ | 10.88 | 7.41 | % | 1.05 | % | 2.17 | % | 1.05 | % | $ | 96,101 | 22 | % | |||||||||||||||||||
| 2017 | (0.21 | ) | $ | 10.42 | 13.33 | % | 1.20 | % | 2.28 | % | 1.26 | % | $ | 85,830 | 22 | % | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 12.21 | 1.41 | % | 1.05 | % | 1.34 | % | 2.47 | % | $ | 22 | 10 | % | ||||||||||||||||||||
| Year Ended March 31: 2021 | (0.18 | ) | $ | 12.04 | 45.32 | % | 0.93 | % | 1.74 | % | 1.25 | % | $ | 6,022 | 46 | %(e) | |||||||||||||||||||
| 2020 | (0.78 | ) | $ | 8.43 | (13.90 | )% | 0.90 | % | 2.40 | % | 1.51 | % | $ | 4,215 | 109 | %(f) | |||||||||||||||||||
| 2019 | (0.71 | ) | $ | 10.52 | 3.47 | % | 0.97 | %(h) | 2.58 | % | 1.22 | % | $ | 5,261 | 15 | % | |||||||||||||||||||
| 2018 | (0.31 | ) | $ | 10.89 | 7.35 | % | 1.10 | % | 2.14 | % | 1.29 | % | $ | 5,447 | 22 | % | |||||||||||||||||||
| 2017 | (0.21 | ) | $ | 10.43 | 13.49 | % | 1.10 | % | 2.40 | % | 1.55 | % | $ | 5,214 | 22 | % | |||||||||||||||||||
See notes to financial statements.
15
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Global Equity Income 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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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 September 30, 2021 | ||||||
(Unaudited)
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 their net asset value ("NAV"). 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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. The valuations are considered as Level 2 in the fair value hierarchy.
A summary of the valuations as of September 30, 2021, 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 | $ | 45,067 | $ | 16,825 | $ | — | $ | 61,892 | |||||||||||
Collateral for Securities Loaned | 93 | — | — | 93 | |||||||||||||||
Total | $ | 45,160 | $ | 16,825 | $ | — | $ | 61,985 | |||||||||||
For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the 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:
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.
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
17
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 in the underlying prices of the securities. As of September 30, 2021, the Fund had no open forward foreign exchange currency contracts.
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 or 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 discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.
Withholding taxes on interest, dividends and gains as a result of certain investments in ADRs by the Fund have 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 Securities and Exchange Commission ("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.
18
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
The following table (amounts in thousands) is a summary of the Fund's securities lending transactions as of September 30, 2021.
| Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
| $ | 88 | $ | — | $ | 93 | ||||||
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 investment securities 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 (losses) from investment securities 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 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 March 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.
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 an 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.
19
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
| Purchases | Sales | ||||||
| $ | 6,648 | $ | 23,228 | ||||
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC. The Adviser is an indirect wholly owned 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 annualized rate of 0.50% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper Global Equity Income Funds Index. The Lipper Global Equity Income Funds Index tracks the total return performance of the largest funds within the Lipper Global Equity Income Funds category.
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) | ||||||
| +/- 100 to 400 | +/- 4 | ||||||
| +/- 401 to 700 | +/- 5 | ||||||
| +/- 701 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
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
20
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper Global Equity Income Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $14 and $1 for Fund Shares and Institutional Shares, in thousands, respectively. Performance adjustments were 0.04% and 0.15% for Fund Shares and Institutional Shares, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.15% and 0.10%, which is based on the Fund's average daily net assets of the Fund Shares and Institutional Shares, respectively. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares 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 the Institutional Shares are paid monthly based on a fee accrued daily at an annualized rate of 0.10% of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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.
21
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 Fund pursuant to a Distribution Agreement between the Distributor and the Trust, and receives no fee or other compensation for these services.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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. Acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 1.00% and 0.90% for Fund Shares and Institutional Shares, respectively.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2023 | Expires 2024 | Expires 2025 | Total | ||||||||||||
$ | 93 | $ | 117 | $ | 40 | $ | 250 | ||||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Market Risk — 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.
22
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Equity Risk — 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 Securities Risk — 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:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
23
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
The average borrowing or lending for the days outstanding and average interest rate for the Fund that utilized the Facility during the six months ended September 30, 2021, were as follows (amounts in thousands):
| Borrower or Lender | Amount Outstanding at September 30, 2021 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||
| Borrower | $ | — | $ | 3,888 | 1 | 0.57 | % | $ | 3,888 | ||||||||||||||
* For the six months ended September 30, 2021, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
The Fund intends to 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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 697 | $ | — | $ | 697 | ||||||
24
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,050.90 | $ | 1,019.85 | $ | 5.35 | $ | 5.27 | 1.04 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,014.10 | 1,019.80 | 5.30 | 5.32 | 1.05 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
25
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 | ||||||
98352-1121
September 30, 2021
Semi Annual Report
USAA California Bond Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 11 | ||||||
Statement of Operations | 12 | ||||||
Statements of Changes in Net Assets | 13 | ||||||
Financial Highlights | 16 | ||||||
Notes to Financial Statements | 18 | ||||||
Supplemental Information | 27 | ||||||
Proxy Voting and Portfolio Holdings Information | 27 | ||||||
Expense Examples | 27 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA California Bond Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide California investors with a high level of current interest income that is exempt from federal and California state income taxes.
Top 10 Industries
September 30, 2021
(% of Net Assets)
General Obligation | 23.2 | % | |||||
Hospital | 17.0 | % | |||||
Special Assessment/Tax/Fee | 10.4 | % | |||||
Water/Sewer Utility | 8.7 | % | |||||
Appropriated Debt | 8.0 | % | |||||
Toll Road | 5.9 | % | |||||
Nursing/CCRC | 4.4 | % | |||||
Real Estate Tax/Fee | 4.3 | % | |||||
Education | 4.1 | % | |||||
Multifamily Housing | 3.8 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Municipal Bonds (99.1%) | |||||||||||
California (96.0%): | |||||||||||
| Abag Finance Authority for Nonprofit Corp. Revenue, 5.00%, 7/1/42, Pre-refunded 7/1/22 @100 | $ | 1,500 | $ | 1,554 | |||||||
| Abag Finance Authority for Nonprofit Corp. Revenue (NBGA — California Health Insurance Construction Loan Insurance Program), 5.00%, 1/1/33, Continuously Callable @101 | 4,235 | 4,515 | |||||||||
| Adelanto Public Utility Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 7/1/39, Continuously Callable @100 | 2,000 | 2,417 | |||||||||
| Alameda Corridor Transportation Authority Revenue, Series B, 5.00%, 10/1/37, Continuously Callable @100 | 2,000 | 2,335 | |||||||||
| Albany Unified School District, GO Series B, 5.00%, 8/1/43, Continuously Callable @100 | 2,000 | 2,384 | |||||||||
Series B, 4.00%, 8/1/46, Continuously Callable @100 | 1,500 | 1,680 | |||||||||
| Anaheim Public Financing Authority Revenue, Series A, 5.00%, 5/1/46, Continuously Callable @100 | 1,500 | 1,624 | |||||||||
| Bay Area Toll Authority Revenue 1.30% (MUNIPSA+125bps), 4/1/36, (Put Date 4/1/27) (a) (b) | 15,000 | 15,328 | |||||||||
Series H, 5.00%, 4/1/49, Continuously Callable @100 | 4,000 | 5,014 | |||||||||
| Burbank Unified School District, GO 8/1/33, Continuously Callable @100 (c) | 3,085 | 3,477 | |||||||||
8/1/34, Continuously Callable @100 (d) | 3,000 | 3,380 | |||||||||
| California Community Housing Agency Revenue, Series A, 5.00%, 8/1/50, Continuously Callable @100 (e) | 2,000 | 2,286 | |||||||||
| California County Tobacco Securitization Agency Revenue 1.38%, 6/1/30 | 20 | 20 | |||||||||
4.00%, 6/1/49, Continuously Callable @100 | 500 | 576 | |||||||||
Series A, 4.00%, 6/1/49, Continuously Callable @100 | 500 | 577 | |||||||||
Series A, 4.00%, 6/1/49, Continuously Callable @100 | 1,000 | 1,152 | |||||||||
| California Educational Facilities Authority Revenue 5.00%, 10/1/43, Continuously Callable @100 | 2,000 | 2,444 | |||||||||
5.00%, 10/1/48, Continuously Callable @100 | 2,000 | 2,425 | |||||||||
5.00%, 10/1/49, Continuously Callable @100 | 3,100 | 3,605 | |||||||||
Series A, 5.00%, 10/1/37, Continuously Callable @100 | 1,000 | 1,164 | |||||||||
| California Enterprise Development Authority Revenue 4.00%, 11/1/49, Continuously Callable @100 | 1,900 | 2,145 | |||||||||
4.00%, 11/1/50, Continuously Callable @100 | 680 | 768 | |||||||||
| California Health Facilities Financing Authority Revenue 4.00%, 3/1/39, Continuously Callable @100 | 7,375 | 8,181 | |||||||||
4.00%, 10/1/47, Continuously Callable @100 | 10,000 | 11,124 | |||||||||
Series A, 5.00%, 7/1/33, Continuously Callable @100 | 5,000 | 5,394 | |||||||||
Series A, 5.00%, 11/15/39, Continuously Callable @100 | 2,100 | 2,215 | |||||||||
Series A, 5.00%, 8/15/42, Continuously Callable @100 | 1,000 | 1,180 | |||||||||
Series A, 4.00%, 4/1/45, Continuously Callable @100 | 2,500 | 2,876 | |||||||||
Series A, 4.00%, 4/1/49, Continuously Callable @100 | 1,000 | 1,150 | |||||||||
Series A, 4.00%, 8/15/50, Continuously Callable @100 | 2,000 | 2,304 | |||||||||
Series A-2, 5.00%, 11/1/47 | 10,000 | 14,756 | |||||||||
Series B, 4.00%, 11/15/41, Continuously Callable @100 | 14,000 | 15,745 | |||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| California Health Facilities Financing Authority Revenue (NBGA — California Health Insurance Construction Loan Insurance Program) 5.00%, 7/1/39, Continuously Callable @100 | $ | 1,050 | $ | 1,196 | |||||||
5.00%, 6/1/42, Continuously Callable @100 | 7,805 | 8,035 | |||||||||
5.00%, 7/1/44, Continuously Callable @100 | 2,300 | 2,608 | |||||||||
| California Infrastructure & Economic Development Bank Revenue 0.40% (MUNIPSA+35bps), 8/1/47, (Put Date 8/1/24) (a) (b) | 2,250 | 2,253 | |||||||||
4.00%, 7/1/50, Continuously Callable @100 | 4,000 | 4,550 | |||||||||
| California Municipal Finance Authority Revenue 4.00%, 1/1/38, Continuously Callable @100 | 250 | 294 | |||||||||
4.00%, 1/1/39, Continuously Callable @100 | 450 | 529 | |||||||||
4.00%, 5/15/39, Continuously Callable @100 | 500 | 596 | |||||||||
4.00%, 1/1/40, Continuously Callable @100 | 440 | 516 | |||||||||
4.00%, 5/15/40, Continuously Callable @100 | 550 | 653 | |||||||||
4.00%, 1/1/41, Continuously Callable @100 | 400 | 468 | |||||||||
4.00%, 5/15/41, Continuously Callable @100 | 550 | 653 | |||||||||
5.00%, 6/1/43, Continuously Callable @100 | 2,500 | 3,082 | |||||||||
4.00%, 5/15/46, Continuously Callable @100 | 1,000 | 1,174 | |||||||||
4.00%, 10/1/49, Continuously Callable @100 | 2,500 | 2,882 | |||||||||
4.00%, 10/1/51, Continuously Callable @100 | 1,150 | 1,335 | |||||||||
Series A, 5.00%, 2/1/37, Continuously Callable @100 | 750 | 899 | |||||||||
Series A, 5.00%, 2/1/42, Continuously Callable @100 | 1,000 | 1,190 | |||||||||
Series A, 4.00%, 10/1/44, Continuously Callable @100 | 2,000 | 2,199 | |||||||||
Series A, 5.00%, 2/1/47, Continuously Callable @100 | 1,000 | 1,186 | |||||||||
Series A, 5.00%, 7/1/47, Continuously Callable @100 | 1,000 | 1,179 | |||||||||
Series A, 5.00%, 6/1/50, Continuously Callable @100 | 1,000 | 1,131 | |||||||||
| California Municipal Finance Authority Revenue (NBGA — California Health Insurance Construction Loan Insurance Program) 4.13%, 5/15/39, Continuously Callable @100 | 1,900 | 2,103 | |||||||||
4.13%, 5/15/46, Continuously Callable @100 | 2,100 | 2,275 | |||||||||
Series B, 5.00%, 5/15/47, Continuously Callable @102 | 2,500 | 2,827 | |||||||||
| California Pollution Control Financing Authority Revenue 5.00%, 7/1/39, Continuously Callable @100 (e) | 6,000 | 7,235 | |||||||||
5.00%, 11/21/45, Continuously Callable @100 (e) | 2,000 | 2,386 | |||||||||
| California Public Finance Authority Revenue 5.00%, 10/15/37, Continuously Callable @100 | 1,000 | 1,170 | |||||||||
5.00%, 10/15/47, Continuously Callable @100 | 3,000 | 3,427 | |||||||||
Series B, 4.00%, 10/15/51, (Put Date 10/15/31) (a) (b) | 685 | 819 | |||||||||
| California School Finance Authority Revenue 5.00%, 8/1/41, Continuously Callable @100 (e) | 1,600 | 1,824 | |||||||||
5.00%, 8/1/41, Pre-refunded 8/1/25 @100 (e) | 150 | 176 | |||||||||
5.00%, 8/1/46, Pre-refunded 8/1/25 @100 (e) | 200 | 235 | |||||||||
5.00%, 8/1/46, Continuously Callable @100 (e) | 2,050 | 2,302 | |||||||||
Series A, 5.00%, 7/1/47, Continuously Callable @100 (e) | 1,370 | 1,611 | |||||||||
Series A, 5.00%, 7/1/49, Continuously Callable @100 (e) | 1,000 | 1,202 | |||||||||
Series A, 5.00%, 7/1/54, Continuously Callable @100 (e) | 2,150 | 2,566 | |||||||||
| California State Public Works Board Revenue, Series B, 4.00%, 5/1/46, Continuously Callable @100 | 3,000 | 3,533 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| California Statewide Communities Development Authority Revenue 5.00%, 5/15/24 | $ | 1,300 | $ | 1,450 | |||||||
5.00%, 5/15/40, Continuously Callable @100 | 2,750 | 3,204 | |||||||||
5.00%, 5/15/42, Continuously Callable @100 | 1,500 | 1,538 | |||||||||
5.00%, 11/1/43, Pre-refunded 11/1/24 @100 | 500 | 572 | |||||||||
5.00%, 10/1/46, Continuously Callable @100 | 2,750 | 3,258 | |||||||||
5.00%, 5/15/47, Continuously Callable @100 | 1,500 | 1,538 | |||||||||
5.00%, 5/15/47, Continuously Callable @100 | 1,000 | 1,184 | |||||||||
5.00%, 1/1/48, Continuously Callable @100 | 1,995 | 2,344 | |||||||||
5.00%, 7/1/48, Continuously Callable @100 | 4,000 | 4,771 | |||||||||
5.00%, 5/15/50, Continuously Callable @100 | 1,000 | 1,181 | |||||||||
4.00%, 4/1/51, Continuously Callable @100 | 3,750 | 4,299 | |||||||||
Series A, 5.00%, 5/15/25 | 2,180 | 2,516 | |||||||||
Series A, 4.00%, 4/1/40, Continuously Callable @100 | 650 | 755 | |||||||||
Series A, 4.00%, 4/1/45, Continuously Callable @100 | 1,500 | 1,718 | |||||||||
Series A, 4.00%, 8/15/51, Continuously Callable @100 | 3,000 | 3,270 | |||||||||
Series A, 5.00%, 12/1/53, Continuously Callable @100 | 1,000 | 1,220 | |||||||||
Series A, 5.00%, 12/1/57, Continuously Callable @100 | 2,500 | 3,056 | |||||||||
| California Statewide Communities Development Authority Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8052, 0.46%, 4/1/52, Callable 11/12/21 @100 (e) (f) | 4,600 | 4,600 | |||||||||
| California Statewide Communities Development Authority Revenue (NBGA — California Health Insurance Construction Loan Insurance Program) 4.00%, 11/1/46, Continuously Callable @100 | 4,000 | 4,313 | |||||||||
Series S, 5.00%, 8/1/44, Pre-refunded 8/1/22 @102 | 2,400 | 2,543 | |||||||||
| Centinela Valley Union High School District, GO, Series B, 4.00%, 8/1/50, Continuously Callable @100 | 9,500 | 10,556 | |||||||||
| Chino Valley Unified School District, GO, Series B, 4.00%, 8/1/45, Continuously Callable @100 | 1,000 | 1,172 | |||||||||
| City & County of San Francisco CA Community Facilities District Special Tax Series 2021, 4.00%, 9/1/41, Continuously Callable @103 | 850 | 956 | |||||||||
Series 2021, 4.00%, 9/1/46, Continuously Callable @103 | 1,000 | 1,119 | |||||||||
Series 2021, 4.00%, 9/1/51, Continuously Callable @103 | 1,000 | 1,117 | |||||||||
City & County of San Francisco Revenue (LIQ — Deutsche Bank A.G.) | |||||||||||
| Series DBE-8059, 0.46%, 12/1/52, Callable 12/1/21 @100 (e) (f) | 6,000 | 6,000 | |||||||||
| Series DBE-8072, 0.46%, 1/1/52, Callable 10/18/21 @100 (e) (f) | 2,000 | 2,000 | |||||||||
| City of Atwater Wastewater Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 5/1/43, Continuously Callable @100 | 1,300 | 1,535 | |||||||||
City of Fillmore Wastewater Revenue, 5.00%, 5/1/47, Continuously Callable @100 | 2,000 | 2,386 | |||||||||
| City of Tulare Sewer Revenue (INS — Assured Guaranty Municipal Corp.) 4.00%, 11/15/41, Continuously Callable @100 | 5,710 | 6,288 | |||||||||
4.00%, 11/15/44, Continuously Callable @100 | 5,000 | 5,493 | |||||||||
| City of Upland Certificate of Participation 4.00%, 1/1/42, Continuously Callable @100 | 3,000 | 3,313 | |||||||||
5.00%, 1/1/47, Continuously Callable @100 | 2,000 | 2,337 | |||||||||
| Corona-Norco Unified School District Special Tax, 5.00%, 9/1/32, Pre-refunded 9/1/23 @100 | 1,350 | 1,473 | |||||||||
| County of Sacramento Airport System Revenue 4.00%, 7/1/40, Continuously Callable @100 | 4,000 | 4,709 | |||||||||
Series B, 5.00%, 7/1/41, Continuously Callable @100 | 1,100 | 1,301 | |||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| East Bay Municipal Utility District Wastewater System Revenue, Series A-2, 5.00%, 6/1/38 | $ | 9,000 | $ | 13,300 | |||||||
| Elk Grove Finance Authority Special Tax (INS — Build America Mutual Assurance Co.), 5.00%, 9/1/38, Continuously Callable @100 | 1,500 | 1,736 | |||||||||
| Foothill-Eastern Transportation Corridor Agency Revenue, Series B-2, 3.50%, 1/15/53, Continuously Callable @100 (a) | 1,500 | 1,617 | |||||||||
| Foothill-Eastern Transportation Corridor Agency Revenue (INS — Assured Guaranty Municipal Corp.) 1/15/34 (g) | 15,000 | 11,504 | |||||||||
1/15/35 (g) | 7,500 | 5,593 | |||||||||
| Fresno Joint Powers Financing Authority Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 4.00%, 4/1/46, Continuously Callable @100 | 1,225 | 1,423 | |||||||||
| Golden State Tobacco Securitization Corp. Revenue, Series A, 5.00%, 6/1/35, Continuously Callable @100 | 5,500 | 6,644 | |||||||||
| Grass Valley School District, GO (INS — Build America Mutual Assurance Co.), 5.00%, 8/1/45, Continuously Callable @100 | 2,400 | 2,839 | |||||||||
| Hanford Joint Union High School District Certificate of Participation (INS — Assured Guaranty Municipal Corp.), 4.00%, 6/1/40, Continuously Callable @100 | 2,640 | 2,939 | |||||||||
| Hayward Unified School District, GO (INS — Build America Mutual Assurance Co.), Series A, 5.00%, 8/1/44, Continuously Callable @100 | 3,000 | 3,691 | |||||||||
| Indio Redevelopment Agency Successor Agency Tax Allocation, Series A, 5.25%, 8/15/31, Continuously Callable @100 | 2,940 | 2,951 | |||||||||
| Inglewood Unified School District, GO (INS — Build America Mutual Assurance Co.) Series B, 5.00%, 8/1/38, Continuously Callable @100 | 750 | 883 | |||||||||
Series C, 4.00%, 8/1/36, Continuously Callable @100 | 220 | 250 | |||||||||
Series C, 4.00%, 8/1/37, Continuously Callable @100 | 450 | 511 | |||||||||
Series C, 4.00%, 8/1/39, Continuously Callable @100 | 450 | 510 | |||||||||
| Irvine Unified School District Special Tax 5.00%, 9/1/45, Continuously Callable @100 | 1,000 | 1,192 | |||||||||
5.00%, 9/1/49, Continuously Callable @100 | 2,000 | 2,371 | |||||||||
Series A, 4.00%, 9/1/39, Continuously Callable @100 | 1,020 | 1,205 | |||||||||
Series A, 4.00%, 9/1/50, Continuously Callable @100 | 1,800 | 2,078 | |||||||||
Series B, 5.00%, 9/1/42, Continuously Callable @100 | 1,000 | 1,195 | |||||||||
Series B, 5.00%, 9/1/47, Continuously Callable @100 | 1,000 | 1,188 | |||||||||
Series C, 5.00%, 9/1/42, Continuously Callable @100 | 1,000 | 1,195 | |||||||||
Series C, 5.00%, 9/1/47, Continuously Callable @100 | 525 | 624 | |||||||||
Series D, 5.00%, 9/1/49, Continuously Callable @100 | 1,000 | 1,186 | |||||||||
| Irvine Unified School District Special Tax (INS — Build America Mutual Assurance Co.), 5.00%, 9/1/56, Continuously Callable @100 | 6,000 | 7,166 | |||||||||
| Jurupa Public Financing Authority Special Tax, Series A, 5.00%, 9/1/42, Continuously Callable @100 | 1,000 | 1,110 | |||||||||
| Local Public Schools Funding Authority School Improvement District No. 2016-1, GO (INS — Build America Mutual Assurance Co.), Series A, 4.00%, 8/1/52, Continuously Callable @100 | 1,500 | 1,677 | |||||||||
Long Beach Bond Finance Authority Revenue, Series A, 5.00%, 11/15/35 | 3,875 | 5,293 | |||||||||
| Los Angeles County Facilities, Inc. Revenue, 5.00%, 12/1/51, Continuously Callable @100 | 4,000 | 4,880 | |||||||||
| Los Angeles County Public Works Financing Authority Revenue Series A, 5.00%, 12/1/44, Continuously Callable @100 | 2,000 | 2,247 | |||||||||
Series D, 5.00%, 12/1/45, Continuously Callable @100 | 6,000 | 6,934 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| March Joint Powers Redevelopment Agency Successor Agency Tax Allocation (INS — Build America Mutual Assurance Co.), 4.00%, 8/1/41, Continuously Callable @100 | $ | 5,790 | $ | 6,461 | |||||||
| Middle Fork Project Finance Authority Revenue 5.00%, 4/1/33, Continuously Callable @100 | 2,205 | 2,776 | |||||||||
5.00%, 4/1/35, Continuously Callable @100 | 225 | 282 | |||||||||
5.00%, 4/1/36, Continuously Callable @100 | 1,830 | 2,283 | |||||||||
| Monrovia Financing Authority Revenue, 5.00%, 12/1/45, Continuously Callable @100 | 3,435 | 3,994 | |||||||||
| Monrovia Financing Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 12/1/45, Continuously Callable @100 | 2,345 | 2,714 | |||||||||
| Moreno Valley Unified School District, GO (INS — Assured Guaranty Municipal Corp.), Series B, 5.00%, 8/1/47, Continuously Callable @100 | 6,500 | 8,000 | |||||||||
| Mountain View School District/Los Angeles County, GO (INS — Build America Mutual Assurance Co.), Series B, 5.00%, 8/1/48, Continuously Callable @100 | 3,315 | 3,902 | |||||||||
| Mountain View Shoreline Regional Park Community Tax Allocation, Series A, 5.63%, 8/1/35, Continuously Callable @100 | 2,000 | 2,008 | |||||||||
| Norwalk Redevelopment Agency Tax Allocation (INS — National Public Finance Guarantee Corp.) Series A, 5.00%, 10/1/30, Continuously Callable @100 | 5,000 | 5,018 | |||||||||
Series A, 5.00%, 10/1/35, Continuously Callable @100 | 3,500 | 3,512 | |||||||||
| Norwalk-La Mirada Unified School District, GO (INS — Assured Guaranty Municipal Corp.), Series C, 8/1/30 (g) | 7,500 | 6,558 | |||||||||
| Ontario International Airport Authority Revenue, Series A, 4.00%, 5/15/51, Continuously Callable @100 | 1,695 | 1,961 | |||||||||
| Palomar Health, GO (INS — Assured Guaranty Municipal Corp.), Series A, 8/1/31 (g) | 12,230 | 10,236 | |||||||||
Palomar Health, GO (INS — National Public Finance Guarantee Corp.), 8/1/26 (g) | 5,500 | 5,163 | |||||||||
| Perris Union High School District, GO (INS — Assured Guaranty Corp.), Series A, 4.00%, 9/1/48, Continuously Callable @100 | 5,000 | 5,759 | |||||||||
| Pittsburg Successor Agency Redevelopment Agency Tax Allocation (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 9/1/29, Continuously Callable @100 | 2,000 | 2,397 | |||||||||
| Pomona Unified School District, GO (INS — Build America Mutual Assurance Co.), Series F, 5.00%, 8/1/39, Continuously Callable @100 | 1,500 | 1,679 | |||||||||
| Poway Unified School District Special Tax (INS — Assured Guaranty Municipal Corp.), 4.00%, 9/1/50, Continuously Callable @100 | 4,750 | 5,451 | |||||||||
| Regents of the University of California Medical Center Pooled Revenue, Series L, 4.00%, 5/15/44, Continuously Callable @100 | 2,000 | 2,212 | |||||||||
| Rio Elementary School District, GO (INS — Assured Guaranty Municipal Corp.), Series B, 4.00%, 8/1/45, Continuously Callable @100 | 2,800 | 3,129 | |||||||||
| Riverside County Public Financing Authority Tax Allocation (INS — Build America Mutual Assurance Co.) 4.00%, 10/1/36, Continuously Callable @100 | 1,250 | 1,387 | |||||||||
4.00%, 10/1/37, Continuously Callable @100 | 1,625 | 1,798 | |||||||||
| Riverside County Redevelopment Successor Agency Tax Allocation (INS — Build America Mutual Assurance Co.), 4.00%, 10/1/37, Continuously Callable @100 | 2,000 | 2,219 | |||||||||
| Riverside County Transportation Commission Revenue, Series A, 5.25%, 6/1/39, Pre-refunded 6/1/23 @ 100 | 2,000 | 2,167 | |||||||||
| RNR School Financing Authority Special Tax (INS — Build America Mutual Assurance Co.), Series A, 5.00%, 9/1/41, Continuously Callable @100 | 2,000 | 2,349 | |||||||||
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Sacramento Area Flood Control Agency Special Assessment, 5.00%, 10/1/44, Continuously Callable @100 | $ | 2,000 | $ | 2,237 | |||||||
| Sacramento City Unified School District, GO, 4.00%, 8/1/49, Continuously Callable @100 | 4,000 | 4,618 | |||||||||
| Sacramento City Unified School District, GO (INS — Build America Mutual Assurance Co.), Series S, 5.00%, 7/1/38, Continuously Callable @100 | 1,020 | 1,098 | |||||||||
| San Bruno Park Elementary School District, GO, Series A, 5.00%, 8/1/48, Continuously Callable @100 | 3,000 | 3,533 | |||||||||
| San Diego County Regional Airport Authority Revenue Series A, 4.00%, 7/1/38, Continuously Callable @100 | 2,000 | 2,348 | |||||||||
Series A, 5.00%, 7/1/47, Continuously Callable @100 | 1,500 | 1,791 | |||||||||
Series A, 5.00%, 7/1/49, Continuously Callable @100 | 2,000 | 2,457 | |||||||||
| San Diego Public Facilities Financing Authority Revenue Series A, 5.00%, 10/15/44, Continuously Callable @100 | 2,500 | 2,881 | |||||||||
Series A, 4.00%, 10/15/50, Continuously Callable @100 | 3,000 | 3,489 | |||||||||
| San Jose Financing Authority Revenue, Series A, 5.00%, 6/1/39, Pre-refunded 6/1/23 @100 | 10,000 | 10,795 | |||||||||
| San Leandro Unified School District, GO (INS — Build America Mutual Assurance Co.), Series B, 5.00%, 8/1/43, Continuously Callable @100 | 2,750 | 3,401 | |||||||||
| San Luis & Delta Mendota Water Authority Revenue (INS — Build America Mutual Assurance Co.), Series A, 5.00%, 3/1/38, Pre-refunded 3/1/23 @100 | 1,500 | 1,601 | |||||||||
| San Ramon Redevelopment Agency Successor Agency Tax Allocation (INS — Build America Mutual Assurance Co.), Series A, 5.00%, 2/1/38, Continuously Callable @100 | 5,000 | 5,681 | |||||||||
| Santa Clarita Community College District, GO, 4.00%, 8/1/46, Continuously Callable @100 | 5,250 | 5,883 | |||||||||
| Santa Cruz County Redevelopment Agency Tax Allocation (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 9/1/35, Continuously Callable @100 | 6,000 | 6,961 | |||||||||
| Santa Rosa High School District, GO (INS — Assured Guaranty Municipal Corp.), Series C, 5.00%, 8/1/43, Continuously Callable @100 | 1,000 | 1,192 | |||||||||
| State of California, GO 5.25%, 2/1/30, Continuously Callable @100 | 4,000 | 4,065 | |||||||||
5.00%, 2/1/43, Continuously Callable @100 | 3,000 | 3,177 | |||||||||
4.00%, 10/1/44, Continuously Callable @100 | 1,000 | 1,162 | |||||||||
5.00%, 9/1/45, Continuously Callable @100 | 2,500 | 2,943 | |||||||||
5.00%, 8/1/46, Continuously Callable @100 | 9,500 | 11,181 | |||||||||
5.00%, 11/1/47, Continuously Callable @100 | 7,000 | 8,620 | |||||||||
| Stockton Public Financing Authority Revenue 4.00%, 3/1/40, Continuously Callable @100 | 920 | 1,015 | |||||||||
5.00%, 3/1/47, Continuously Callable @100 | 2,760 | 3,232 | |||||||||
| Tahoe-Truckee Unified School District Certificate of Participation (INS — Build America Mutual Assurance Co.), 4.00%, 6/1/43, Continuously Callable @100 | 1,000 | 1,111 | |||||||||
| Temecula Valley Unified School District Financing Authority Special Tax (INS — Build America Mutual Assurance Co.), 5.00%, 9/1/40, Continuously Callable @100 | 1,575 | 1,787 | |||||||||
| Temecula Valley Unified School District, GO (INS — Assured Guaranty Municipal Corp.), Series B, 4.00%, 8/1/45, Continuously Callable @100 | 7,500 | 8,301 | |||||||||
| Tobacco Securitization Authority of Southern California Revenue 5.00%, 6/1/48, Continuously Callable @100 | 980 | 1,184 | |||||||||
5.00%, 6/1/48, Continuously Callable @100 | 1,000 | 1,226 | |||||||||
See notes to financial statements.
8
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Transbay Joint Powers Authority Tax Allocation Series A, 5.00%, 10/1/49, Continuously Callable @100 | $ | 800 | $ | 987 | |||||||
Series B, 2.40%, 10/1/49, Continuously Callable @100 | 1,365 | 1,401 | |||||||||
| Tulare Local Health Care District, GO (INS — Build America Mutual Assurance Co.) 4.00%, 8/1/35, Continuously Callable @100 | 650 | 765 | |||||||||
4.00%, 8/1/39, Continuously Callable @100 | 1,900 | 2,209 | |||||||||
| Vacaville Unified School District, GO, Series D, 4.00%, 8/1/45, Continuously Callable @100 | 1,850 | 2,134 | |||||||||
| Val Verde Unified School District Certificate of Participation (INS — Build America Mutual Assurance Co.) Series A, 5.00%, 8/1/34, Continuously Callable @100 | 1,105 | 1,278 | |||||||||
Series A, 5.00%, 8/1/35, Continuously Callable @100 | 1,530 | 1,767 | |||||||||
| Val Verde Unified School District, GO (INS — Assured Guaranty Municipal Corp.), Series C, 4.00%, 8/1/45, Continuously Callable @100 | 4,475 | 5,000 | |||||||||
| Val Verde Unified School District, GO (INS — Build America Mutual Assurance Co.), Series B, 5.00%, 8/1/44, Continuously Callable @100 | 4,000 | 4,602 | |||||||||
| Victor Valley Union High School District, GO (INS — Assured Guaranty Municipal Corp.), Series B, 4.00%, 8/1/37, Continuously Callable @100 | 5,000 | 5,678 | |||||||||
| Washington Township Health Care District Revenue Series A, 4.00%, 7/1/35, Continuously Callable @100 | 600 | 695 | |||||||||
Series A, 5.00%, 7/1/42, Continuously Callable @100 | 1,000 | 1,174 | |||||||||
| Western Placer Unified School District Certificate of Participation (INS — Assured Guaranty Municipal Corp.), 4.00%, 8/1/41, Continuously Callable @100 | 6,000 | 6,677 | |||||||||
637,863 | |||||||||||
Guam (2.5%): | |||||||||||
| Guam Government Waterworks Authority Revenue 5.50%, 7/1/43, Pre-refunded 7/1/23 @100 | 4,000 | 4,367 | |||||||||
5.00%, 1/1/46, Continuously Callable @100 | 7,000 | 7,829 | |||||||||
| Guam Power Authority Revenue Series A, 5.00%, 10/1/34, Continuously Callable @100 | 1,000 | 1,038 | |||||||||
Series A, 5.00%, 10/1/40, Continuously Callable @100 | 2,800 | 3,218 | |||||||||
16,452 | |||||||||||
Virgin Islands (0.6%): | |||||||||||
| Virgin Islands Public Finance Authority Revenue 5.00%, 9/1/33, Continuously Callable @100 (e) | 3,000 | 3,343 | |||||||||
Series A, 4.00%, 10/1/22 | 625 | 623 | |||||||||
3,966 | |||||||||||
Total Municipal Bonds (Cost $608,016) | 658,281 | ||||||||||
Total Investments (Cost $608,016) — 99.1% | 658,281 | ||||||||||
Other assets in excess of liabilities — 0.9% | 5,720 | ||||||||||
NET ASSETS — 100.00% | $ | 664,001 | |||||||||
(a) Variable or Floating-Rate Security. Rate disclosed is as of September 30, 2021.
(b) Put Bond.
(c) Stepped-coupon security converts to coupon form on 8/1/23 with a rate of 4.30%.
(d) Stepped-coupon security converts to coupon form on 8/1/23 with a rate of 4.35%.
See notes to financial statements.
9
| USAA Mutual Funds Trust USAA California Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
(e) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $37,766 (thousands) and amounted to 5.7% of net assets.
(f) 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.
(g) Zero-coupon bond.
bps — Basis points
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
MUNIPSA — Municipal Swap Index
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.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
10
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA California Bond Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $608,016) | $ | 658,281 | |||||
Cash | 35 | ||||||
Receivables: | |||||||
Interest | 6,434 | ||||||
Capital shares issued | 24 | ||||||
From Adviser | 24 | ||||||
Prepaid expenses | 2 | ||||||
Total Assets | 664,800 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | 179 | ||||||
Capital shares redeemed | 263 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 200 | ||||||
Administration fees | 83 | ||||||
Transfer agent fees | 17 | ||||||
Compliance fees | — | (a) | |||||
Trustees' fees | — | (a) | |||||
| 12b-1 fees | — | (a) | |||||
Other accrued expenses | 57 | ||||||
Total Liabilities | 799 | ||||||
Net Assets: | |||||||
Capital | 618,241 | ||||||
Total accumulated earnings/(loss) | 45,760 | ||||||
Net Assets | $ | 664,001 | |||||
Net Assets | |||||||
Fund Shares | $ | 662,085 | |||||
Institutional Shares | 617 | ||||||
Class A | 1,299 | ||||||
Total | $ | 664,001 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 57,294 | ||||||
Institutional Shares | 53 | ||||||
Class A | 113 | ||||||
Total | 57,460 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Fund Shares | $ | 11.56 | |||||
Institutional Shares | $ | 11.55 | |||||
Class A | $ | 11.54 | |||||
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 | $ | 11.81 | |||||
(a) Rounds to less than $1 thousand.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
11
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA California Bond Fund | |||||||
Investment Income: | |||||||
Interest | $ | 9,717 | |||||
Total Income | 9,717 | ||||||
Expenses: | |||||||
Investment advisory fees | 1,128 | ||||||
Administration fees — Fund Shares | 502 | ||||||
Administration fees — Institutional Shares | — | (a) | |||||
Administration fees — Class A | 2 | ||||||
Sub-Administration fees | 11 | ||||||
| 12b-1 fees — Class A | 3 | ||||||
Custodian fees | 6 | ||||||
Transfer agent fees — Fund Shares | 64 | ||||||
Transfer agent fees — Institutional Shares | — | (a) | |||||
Transfer agent fees — Class A | 1 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 2 | ||||||
Legal and audit fees | 27 | ||||||
State registration and filing fees | 1 | ||||||
Other expenses | 53 | ||||||
Total Expenses | 1,824 | ||||||
Expenses waived/reimbursed by Adviser | (1 | ) | |||||
Net Expenses | 1,823 | ||||||
Net Investment Income (Loss) | 7,894 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | (37 | ) | |||||
Net change in unrealized appreciation/depreciation on investment securities | 4,109 | ||||||
Net realized/unrealized gains (losses) on investments | 4,072 | ||||||
Change in net assets resulting from operations | $ | 11,966 | |||||
(a) Rounds to less than $1 thousand.
See notes to financial statements.
12
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
USAA California Bond Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 7,894 | $ | 16,045 | |||||||
Net realized gains (losses) from investments | (37 | ) | (447 | ) | |||||||
| Net change in unrealized appreciation/depreciation on investments | 4,109 | 19,043 | |||||||||
Change in net assets resulting from operations | 11,966 | 34,641 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (7,861 | ) | (15,912 | ) | |||||||
Institutional Shares (a) | (9 | ) | (13 | ) | |||||||
Class A | (22 | ) | (142 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (7,892 | ) | (16,067 | ) | |||||||
Change in net assets resulting from capital transactions | (3,715 | ) | (39,098 | ) | |||||||
Change in net assets | 359 | (20,524 | ) | ||||||||
Net Assets: | |||||||||||
Beginning of period | 663,642 | 684,166 | |||||||||
End of period | $ | 664,001 | $ | 663,642 | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
(continues on next page)
See notes to financial statements.
13
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands) (continued)
USAA California Bond Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 20,435 | $ | 45,712 | |||||||
Distributions reinvested | 6,763 | 13,309 | |||||||||
Cost of shares redeemed | (25,059 | ) | (99,256 | ) | |||||||
Total Fund Shares | $ | 2,139 | $ | (40,235 | ) | ||||||
Institutional Shares (a) | |||||||||||
Proceeds from shares issued | $ | 32 | $ | 1,751 | |||||||
Distributions reinvested | 8 | 11 | |||||||||
Cost of shares redeemed | (342 | ) | (847 | ) | |||||||
Total Institutional Shares | $ | (302 | ) | $ | 915 | ||||||
Class A | |||||||||||
Proceeds from shares issued | $ | 14 | $ | 6,931 | |||||||
Distributions reinvested | 19 | 17 | |||||||||
Cost of shares redeemed | (5,585 | ) | (6,726 | ) | |||||||
Total Class A | $ | (5,552 | ) | $ | 222 | ||||||
Change in net assets resulting from capital transactions | $ | (3,715 | ) | $ | (39,098 | ) | |||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 1,755 | 3,996 | |||||||||
Reinvested | 581 | 1,164 | |||||||||
Redeemed | (2,151 | ) | (8,723 | ) | |||||||
Total Fund Shares | 185 | (3,563 | ) | ||||||||
Institutional Shares (a) | |||||||||||
Issued | 3 | 152 | |||||||||
Reinvested | 1 | 1 | |||||||||
Redeemed | (30 | ) | (74 | ) | |||||||
Total Institutional Shares | (26 | ) | 79 | ||||||||
Class A | |||||||||||
Issued | 1 | 610 | |||||||||
Reinvested | 2 | 2 | |||||||||
Redeemed | (481 | ) | (593 | ) | |||||||
Total Class A | (478 | ) | 19 | ||||||||
Change in Shares | (319 | ) | (3,465 | ) | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
See notes to financial statements.
14
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15
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 | Total Distributions | ||||||||||||||||||||||
USAA California Bond Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 11.49 | 0.14 | (e) | 0.07 | 0.21 | (0.14 | ) | (0.14 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 11.17 | 0.27 | (e) | 0.32 | 0.59 | (0.27 | ) | (0.27 | ) | |||||||||||||||||
2020 | $ | 11.07 | 0.30 | (e) | 0.10 | 0.40 | (0.30 | ) | (0.30 | ) | |||||||||||||||||
2019 | $ | 10.92 | 0.34 | 0.15 | 0.49 | (0.34 | ) | (0.34 | ) | ||||||||||||||||||
2018 | $ | 10.92 | 0.37 | — | (f) | 0.37 | (0.37 | ) | (0.37 | ) | |||||||||||||||||
2017 | $ | 11.29 | 0.37 | (0.37 | ) | — | (f) | (0.37 | ) | (0.37 | ) | ||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 11.48 | 0.14 | (e) | 0.07 | 0.21 | (0.14 | ) | (0.14 | ) | |||||||||||||||||
| June 29, 2020 (g) through March 31, 2021 | $ | 11.35 | 0.21 | (e) | 0.13 | 0.34 | (0.21 | ) | (0.21 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 11.47 | 0.12 | (e) | 0.07 | 0.19 | (0.12 | ) | (0.12 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 11.16 | 0.25 | (e) | 0.31 | 0.56 | (0.25 | ) | (0.25 | ) | |||||||||||||||||
2020 | $ | 11.06 | 0.27 | (e) | 0.10 | 0.37 | (0.27 | ) | (0.27 | ) | |||||||||||||||||
2019 | $ | 10.91 | 0.32 | 0.15 | 0.47 | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
2018 | $ | 10.91 | 0.34 | — | (f) | 0.34 | (0.34 | ) | (0.34 | ) | |||||||||||||||||
2017 | $ | 11.28 | 0.35 | (0.37 | ) | (0.02 | ) | (0.35 | ) | (0.35 | ) | ||||||||||||||||
* 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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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.
See notes to financial statements.
16
USAA Mutual Funds Trust | Financial Highlights — continued | ||||||
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
| Redemption Fees Added to Beneficial Interest | Net Asset Value, End of Period | Total Return (Excludes Sales Charge)*(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 California Bond Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | — | $ | 11.56 | 1.80 | % | 0.54 | % | 2.35 | % | 0.54 | % | $ | 662,085 | 5 | % | ||||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | — | $ | 11.49 | 5.36 | % | 0.56 | % | 2.40 | % | 0.56 | % | $ | 655,948 | 32 | % | ||||||||||||||||||||
2020 | — | $ | 11.17 | 3.62 | % | 0.53 | % | 2.66 | % | 0.53 | % | $ | 677,785 | 33 | % | ||||||||||||||||||||
2019 | — | $ | 11.07 | 4.61 | % | 0.52 | % | 3.15 | % | 0.52 | % | $ | 691,391 | 18 | % | ||||||||||||||||||||
2018 | — | $ | 10.92 | 3.37 | % | 0.51 | % | 3.32 | % | 0.51 | % | $ | 674,498 | 6 | % | ||||||||||||||||||||
2017 | — | $ | 10.92 | 0.01 | % | 0.51 | % | 3.34 | % | 0.51 | % | $ | 669,435 | 26 | % | ||||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | — | $ | 11.55 | 1.83 | % | 0.50 | % | 2.40 | % | 0.59 | % | $ | 617 | 5 | % | ||||||||||||||||||||
| June 29, 2020 (g) through March 31, 2021 | — | $ | 11.48 | 3.01 | % | 0.50 | % | 2.44 | % | 0.94 | % | $ | 911 | 32 | % | ||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | — | $ | 11.54 | 1.69 | % | 0.78 | % | 2.13 | % | 0.85 | % | $ | 1,299 | 5 | % | ||||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | — | $ | 11.47 | 5.01 | % | 0.81 | % | 2.15 | % | 0.88 | % | $ | 6,783 | 32 | % | ||||||||||||||||||||
2020 | — | $ | 11.16 | 3.36 | % | 0.78 | % | 2.41 | % | 0.78 | % | $ | 6,381 | 33 | % | ||||||||||||||||||||
2019 | — | $ | 11.06 | 4.37 | % | 0.76 | % | 2.92 | % | �� | 0.76 | % | $ | 7,005 | 18 | % | |||||||||||||||||||
2018 | — | $ | 10.91 | 3.12 | % | 0.75 | % | 3.08 | % | 0.75 | % | $ | 6,985 | 6 | % | ||||||||||||||||||||
2017 | — | (f) | $ | 10.91 | (0.24 | )% | 0.75 | % | 3.09 | % | 0.75 | % | $ | 7,083 | 26 | % | |||||||||||||||||||
(b) Annualized for periods less than one year.
(c) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
(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.
(f) Amount is less than $0.005 per share.
(g) Commencement of operations.
See notes to financial statements.
17
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA California Bond Fund (the "Fund"). The Fund offers three classes of shares: Fund Shares, Institutional Shares, and Class A. 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 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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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.
18
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 net asset value ("NAV") to be more reliable than it otherwise would be.
A summary of the valuations as of September 30, 2021, 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 | ||||||||||||||||
Municipal Bonds | $ | — | $ | 658,281 | $ | — | $ | 658,281 | |||||||||||
Total | $ | — | $ | 658,281 | $ | — | $ | 658,281 | |||||||||||
For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 March 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.
19
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 an 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, printing fees, and 12b-1 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 September 30, 2021, 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) | |||||||||
| $ | 3,800 | $ | 31,600 | $ | — | ||||||
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||||||
Purchases | Sales | ||||||||||
$ | 37,252 | $ | 34,538 | ||||||||
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned 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 annualized rate of 0.50% of the first $50 million of the Fund's average daily net assets, 0.40% of that portion of the Fund's average daily net assets over $50 million but not over $100 million, and 0.30% of that portion of the Fund's average daily net assets over $100 million. Amounts incurred and paid to VCM for the
20
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper California Municipal Debt Funds Index. The Lipper California Municipal Debt Funds Index tracks the total return performance of the largest funds within the Lipper California Municipal Debt Funds category.
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) | ||||||
| +/- 20 to 50 | +/- 4 | ||||||
| +/- 51 to 100 | +/- 5 | ||||||
| +/- 101 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper California Municipal Debt Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $45, less than $1, and less than $(1) for Fund Shares, Institutional Shares, and Class A, in thousands, respectively. Performance adjustments were 0.01%, less than 0.01% and (0.02)% for Fund Shares, Institutional Shares, and Class A, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and
21
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
paid monthly at an annualized rate of 0.15%, 0.10%, and 0.15%, which is based on the Fund's average daily net assets of the Fund Shares, Institutional Shares, and Class A, respectively. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares based on an annual charge of $25.50 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 and Class A are paid monthly based on a fee accrued daily at an annualized rate of 0.10% and 0.10%, respectively, of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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.
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 Class A. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activity primarily intended to result in the sale of Class A. Amounts incurred and paid to the Distributor for the six months ended September 30, 2021, are reflected on the Statement of Operations as 12b-1 fees.
In addition, the Distributor is entitled to receive commissions on sales of Class A. For the six months ended September 30, 2021, the Distributor received approximately less than $1 thousand from commissions earned on sales of Class A.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
22
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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, 2023. 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. Acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 0.54%, 0.50%, and 0.80% for Fund Shares, Institutional Shares, and Class A, respectively.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2024 | Expires 2025 | Total | |||||||||
| $ | 7 | $ | 1 | $ | 8 | ||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
State-Specific Risk — Because the Fund invests primarily in California tax-exempt securities, the Fund is more susceptible to adverse economic, political, and regulatory changes affecting tax-exempt securities issuers in California, such as changes to state laws and policies, economic issues that affect critical industries, large employers, or weakened real estate prices, and existing debt levels and state budget priorities. In addition, the economic affects regarding COVID-19 may exacerbate some or all of these risks. The Fund's performance will be affected by the fiscal and economic health of California and its municipalities and their ability to issue and repay debt. The Fund is more vulnerable to unfavorable developments in California than are funds that invest in municipal securities of multiple states.
Debt Securities 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.
Other factors that may affect the value of debt securities include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the
23
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.
Credit Risk — 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.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
LIBOR Discontinuation Risk — 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. 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. For U.S. dollar LIBOR, however, the relevant date may be deferred to June 30, 2023, for the most common tenors (overnight and one, three, six, and 12 months). As to those tenors, the LIBOR administrator has published a consultation regarding its intention to cease publication of U.S. dollar LIBOR as of June 30, 2023, (instead of December 31, 2021, as previously expected), apparently based on continued rate submissions from banks. It is expected that there will 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. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, or any particular currency and tenor, will continue to be published until any particular date, and it appears highly likely that LIBOR will be discontinued or modified after December 31, 2021, or June 30, 2023, depending on the currency and tenor. 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.
24
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
6. Borrowing and Interfund Lending:
Line of Credit:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The Fund did not utilize or participate in the Facility during the six months ended September 30, 2021.
7. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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.
25
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 530 | $ | 3,902 | $ | 4,432 | ||||||
26
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,018.00 | $ | 1,022.36 | $ | 2.73 | $ | 2.74 | 0.54 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,018.30 | 1,022.56 | 2.53 | 2.54 | 0.50 | % | ||||||||||||||||||||
Class A | 1,000.00 | 1,016.90 | 1,021.16 | 3.94 | 3.95 | 0.78 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
27
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 | ||||||
39600-1121
September 30, 2021
Semi Annual Report
USAA New York Bond Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 9 | ||||||
Statement of Operations | 10 | ||||||
Statements of Changes in Net Assets | 11 | ||||||
Financial Highlights | 14 | ||||||
Notes to Financial Statements | 16 | ||||||
Supplemental Information | 25 | ||||||
Proxy Voting and Portfolio Holdings Information | 25 | ||||||
Expense Examples | 25 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA New York Bond Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide New York investors with a high level of current interest income that is exempt from federal income tax and New York State and New York City personal income taxes.
Top 10 Industries
September 30, 2021
(% of Net Assets)
Education | 24.2 | % | |||||
Special Assessment/Tax/Fee | 19.9 | % | |||||
Hospital | 13.6 | % | |||||
General Obligation | 8.6 | % | |||||
Buildings | 5.4 | % | |||||
Escrowed Bonds | 4.5 | % | |||||
Multifamily Housing | 3.9 | % | |||||
Nursing/CCRC | 3.5 | % | |||||
Electric/Gas Utility | 2.9 | % | |||||
Health Miscellaneous | 2.0 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA New York Bond Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares or Principal Amount | Value | |||||||||
Other Equity Interests (0.1%) | |||||||||||
Utilities (0.1%): | |||||||||||
CMS Liquidating Trust (a) (b) (h) | 200 | $ | 200 | ||||||||
Total Other Equity Interests (Cost $499) | 200 | ||||||||||
Municipal Bonds (98.7%) | |||||||||||
New York (93.9%): | |||||||||||
| Albany Capital Resource Corp. Revenue, 5.00%, 6/1/49, Continuously Callable @100 | $ | 1,500 | 1,679 | ||||||||
| Albany County Airport Authority Revenue, Series A, 5.00%, 12/15/48, Continuously Callable @100 | 1,000 | 1,209 | |||||||||
| Brookhaven Local Development Corp. Revenue 5.25%, 11/1/36, Continuously Callable @100 | 1,500 | 1,783 | |||||||||
4.00%, 10/1/45, Continuously Callable @100 | 1,000 | 1,148 | |||||||||
Series B, 4.00%, 11/1/55, Continuously Callable @102 | 1,000 | 1,076 | |||||||||
| Buffalo & Erie County Industrial Land Development Corp. Revenue 5.00%, 6/1/35, Continuously Callable @103 | 1,000 | 1,129 | |||||||||
5.00%, 7/1/40, Continuously Callable @100 | 2,000 | 2,283 | |||||||||
5.00%, 8/1/52, Continuously Callable @100 | 1,000 | 1,112 | |||||||||
| Build NYC Resource Corp. Revenue 5.00%, 6/1/40, Continuously Callable @100 | 700 | 790 | |||||||||
5.00%, 8/1/40, Pre-refunded 8/1/25 @ 100 | 1,000 | 1,174 | |||||||||
5.00%, 7/1/41, Continuously Callable @100 | 500 | 576 | |||||||||
5.00%, 8/1/42, Pre-refunded 8/1/22 @ 100 | 1,500 | 1,560 | |||||||||
4.00%, 8/1/42, Continuously Callable @100 | 1,000 | 1,117 | |||||||||
5.50%, 4/1/43, Continuously Callable @100 | 1,000 | 1,066 | |||||||||
5.00%, 7/1/45, Continuously Callable @100 | 2,000 | 2,218 | |||||||||
5.00%, 11/1/47 | 2,000 | 2,969 | |||||||||
5.00%, 6/1/48, Continuously Callable @102 | 2,000 | 2,262 | |||||||||
4.00%, 7/1/49, Continuously Callable @100 | 500 | 566 | |||||||||
City of Elmira, GO, 5.00%, 7/1/35, Continuously Callable @100 | 1,575 | 1,972 | |||||||||
| City of New York, GO 0.13%, 10/1/46, Continuously Callable @100 (c) | 3,300 | 3,300 | |||||||||
Series 3, 0.13%, 4/1/42, Continuously Callable @100 (c) | 2,000 | 2,000 | |||||||||
Series D-1, 4.00%, 12/1/43, Continuously Callable @100 | 4,000 | 4,539 | |||||||||
| City of New York, GO (LOC — Mizuho Corporate Bank Ltd.), Series A-3, 0.08%, 10/1/40, Continuously Callable @100 (c) | 200 | 200 | |||||||||
| City of Newburgh, GO Series A, 5.00%, 6/15/23, Continuously Callable @100 | 825 | 852 | |||||||||
Series A, 5.00%, 6/15/24, Continuously Callable @100 | 870 | 899 | |||||||||
| City of Poughkeepsie, GO 2.50%, 4/29/22 | 800 | 806 | |||||||||
4.00%, 4/15/27 | 235 | 259 | |||||||||
4.00%, 4/15/28 | 125 | 139 | |||||||||
4.00%, 4/15/29 | 125 | 141 | |||||||||
4.00%, 4/15/30 | 135 | 153 | |||||||||
5.00%, 6/1/31, Continuously Callable @100 | 600 | 670 | |||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA New York Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| City of Yonkers, GO (INS — Assured Guaranty Municipal Corp.) Series A, 5.00%, 10/1/24, Continuously Callable @100 | $ | 1,000 | $ | 1,000 | |||||||
Series A, 3.00%, 7/1/25, Continuously Callable @100 | 665 | 696 | |||||||||
County of Nassau, GO, Series A, 5.00%, 1/1/38, Continuously Callable @100 | 1,000 | 1,165 | |||||||||
| County of Nassau, GO (INS — Assured Guaranty Municipal Corp.), Series C, 5.00%, 4/1/38, Continuously Callable @100 | 1,000 | 1,066 | |||||||||
County of Rockland, GO, Series B, 5.00%, 12/15/21 | 600 | 606 | |||||||||
| Dutchess County Local Development Corp. Revenue 5.00%, 7/1/46, Continuously Callable @100 | 600 | 682 | |||||||||
Series A, 5.00%, 7/1/44, Pre-refunded 7/1/24 @ 100 | 1,000 | 1,129 | |||||||||
Series A, 5.00%, 7/1/45, Continuously Callable @100 | 2,000 | 2,291 | |||||||||
Series B, 4.00%, 7/1/41, Continuously Callable @100 | 2,000 | 2,198 | |||||||||
Series B, 4.00%, 7/1/49, Continuously Callable @100 | 1,750 | 1,946 | |||||||||
| Hempstead Town Local Development Corp. Revenue 5.00%, 7/1/47, Continuously Callable @100 | 600 | 721 | |||||||||
5.00%, 7/1/48, Continuously Callable @100 | 300 | 349 | |||||||||
| Hudson Yards Infrastructure Corp. Revenue, Series A, 4.00%, 2/15/44, Continuously Callable @100 | 2,000 | 2,215 | |||||||||
| Jefferson County Civic Facility Development Corp. Revenue, 4.00%, 11/1/47, Continuously Callable @100 | 1,000 | 1,042 | |||||||||
| Long Island Power Authority Revenue Series A, 5.00%, 9/1/44, Continuously Callable @100 | 2,000 | 2,239 | |||||||||
Series B, 5.00%, 9/1/41, Continuously Callable @100 | 1,000 | 1,190 | |||||||||
| Metropolitan Transportation Authority Revenue 0.55% (MUNIPSA+50bps), 11/15/42, (Put Date 03/1/22) (d) (e) | 1,000 | 998 | |||||||||
Series A, 5.25%, 11/15/38, Pre-refunded 11/15/21 @ 100 | 1,500 | 1,508 | |||||||||
Series A-1, 5.25%, 11/15/56, Continuously Callable @100 | 1,000 | 1,151 | |||||||||
Series B, 4.00%, 11/15/50, Continuously Callable @100 | 1,000 | 1,093 | |||||||||
Series D-1, 5.00%, 11/15/34, Continuously Callable @100 | 3,000 | 3,462 | |||||||||
Series D-2, 0.50% (MUNIPSA+45bps), 11/15/44, (Put Date 11/15/22) (d) (e) | 2,000 | 1,992 | |||||||||
| Metropolitan Transportation Authority Revenue Bonds, Series D-3, 4.00%, 11/15/49, Continuously Callable @100 | 2,000 | 2,235 | |||||||||
| Monroe County Industrial Development Corp. Revenue 5.25%, 10/1/31, Pre-refunded 10/1/21 @ 100 | 500 | 500 | |||||||||
4.00%, 7/1/43, Continuously Callable @100 | 1,000 | 1,129 | |||||||||
5.00%, 12/1/46, Continuously Callable @100 | 1,000 | 1,168 | |||||||||
4.00%, 12/1/46, Continuously Callable @100 | 2,000 | 2,267 | |||||||||
4.00%, 10/1/47, Continuously Callable @100 | 1,000 | 1,096 | |||||||||
5.00%, 6/1/59, Continuously Callable @100 (f) | 1,000 | 1,157 | |||||||||
Series A, 5.00%, 12/1/37, Continuously Callable @100 | 1,000 | 1,054 | |||||||||
Series A, 5.00%, 12/1/42, Continuously Callable @100 | 2,000 | 2,103 | |||||||||
| Monroe County Industrial Development Corp. Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 1/15/38, Continuously Callable @100 | 500 | 540 | |||||||||
| Nassau County Local Economic Assistance Corp. Revenue, 5.00%, 7/1/37, Pre-refunded 7/1/22 @ 100 | 1,000 | 1,036 | |||||||||
| New York City Housing Development Corp. Revenue, Series K, 4.20%, 11/1/58, Continuously Callable @100 | 3,000 | 3,199 | |||||||||
| New York City Industrial Development Agency Revenue, 4.00%, 3/1/45, Continuously Callable @100 | 1,005 | 1,120 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA New York Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| New York City Industrial Development Agency Revenue (INS — Assured Guaranty Municipal Corp.), 2.25%, 10/1/29 | $ | 1,325 | $ | 1,354 | |||||||
| New York City Transitional Finance Authority Building Aid Revenue Series S, 5.00%, 7/15/43, Continuously Callable @100 | 1,250 | 1,416 | |||||||||
Series S, 4.00%, 7/15/45, Continuously Callable @100 | 2,000 | 2,297 | |||||||||
| New York City Transitional Finance Authority Future Tax Secured Revenue 4.00%, 8/1/41, Continuously Callable @100 | 1,000 | 1,142 | |||||||||
4.00%, 11/1/42, Continuously Callable @100 | 2,000 | 2,304 | |||||||||
Series B, 4.00%, 8/1/41, Continuously Callable @100 | 1,000 | 1,110 | |||||||||
Series B-1, 4.00%, 11/1/45, Continuously Callable @100 | 2,000 | 2,290 | |||||||||
| New York City Trust for Cultural Resources Revenue 5.00%, 8/1/43, Pre-refunded 8/1/23 @ 100 | 1,000 | 1,087 | |||||||||
4.00%, 7/1/46, Continuously Callable @100 | 1,000 | 1,078 | |||||||||
Series A, 4.00%, 12/1/35, Continuously Callable @100 | 1,000 | 1,191 | |||||||||
| New York Convention Center Development Corp. Revenue 5.00%, 11/15/45, Continuously Callable @100 | 500 | 572 | |||||||||
Series S, 11/15/37 (g) | 1,000 | 709 | |||||||||
| New York Convention Center Development Corp. Revenue (INS — Assured Guaranty Municipal Corp.), Series B, 2.76%, 11/15/48 | 2,000 | 952 | |||||||||
| New York Counties Tobacco Trust VI Revenue, 5.00%, 6/1/45, Continuously Callable @100 | 500 | 541 | |||||||||
| New York Liberty Development Corp. Revenue 5.25%, 10/1/35 | 2,500 | 3,514 | |||||||||
5.50%, 10/1/37 | 560 | 824 | |||||||||
5.00%, 11/15/44, Continuously Callable @100 (f) | 1,000 | 1,096 | |||||||||
2.80%, 9/15/69, Continuously Callable @100 | 3,000 | 3,063 | |||||||||
Series A, 2.20%, 11/15/33, Continuously Callable @100 | 1,000 | 997 | |||||||||
| New York State Dormitory Authority Revenue 5.00%, 7/1/34, Continuously Callable @100 | 500 | 559 | |||||||||
5.00%, 12/1/37, Continuously Callable @100 (f) | 1,300 | 1,535 | |||||||||
4.00%, 8/1/38, Continuously Callable @100 | 4,000 | 4,489 | |||||||||
5.00%, 7/1/42, Continuously Callable @100 | 250 | 257 | |||||||||
5.00%, 5/1/43, Continuously Callable @100 | 1,000 | 1,139 | |||||||||
5.75%, 7/1/43, Continuously Callable @100 | 1,000 | 1,079 | |||||||||
3.50%, 7/1/44, Continuously Callable @100 | 1,000 | 1,041 | |||||||||
4.00%, 7/1/45, Continuously Callable @100 | 2,000 | 2,238 | |||||||||
5.00%, 7/1/51, Continuously Callable @100 | 725 | 853 | |||||||||
Series A, 5.00%, 5/1/38, Continuously Callable @100 | 500 | 529 | |||||||||
Series A, 4.00%, 7/1/41, Continuously Callable @100 | 1,000 | 1,125 | |||||||||
Series A, 3.00%, 7/1/41, Continuously Callable @100 | 2,000 | 2,183 | |||||||||
Series A, 4.00%, 7/1/43, Continuously Callable @100 | 2,000 | 2,215 | |||||||||
Series A, 5.00%, 7/1/44, Continuously Callable @100 | 1,500 | 1,603 | |||||||||
Series A, 4.00%, 7/1/45, Continuously Callable @100 | 2,250 | 2,602 | |||||||||
Series A, 4.00%, 3/15/47, Continuously Callable @100 | 4,000 | 4,619 | |||||||||
Series A, 4.00%, 3/15/48, Continuously Callable @100 | 3,000 | 3,346 | |||||||||
Series A, 5.00%, 7/1/48, Continuously Callable @100 | 1,000 | 1,217 | |||||||||
Series A, 4.00%, 3/15/49, Continuously Callable @100 | 1,500 | 1,683 | |||||||||
Series A, 4.00%, 7/1/49, Continuously Callable @100 | 1,000 | 1,131 | |||||||||
Series A, 4.00%, 9/1/50, Continuously Callable @100 | 500 | 564 | |||||||||
Series A, 4.00%, 7/1/53, Continuously Callable @100 | 500 | 570 | |||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA New York Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A-1, 4.00%, 7/1/45, Continuously Callable @100 | $ | 3,000 | $ | 3,351 | |||||||
Series C, 4.00%, 7/1/47, Continuously Callable @100 | 1,000 | 1,123 | |||||||||
Series D, 5.00%, 5/1/39, Continuously Callable @100 | 500 | 513 | |||||||||
| New York State Dormitory Authority Revenue (INS — AMBAC Assurance Corp.) Series 1, 5.50%, 7/1/40 | 2,000 | 2,925 | |||||||||
Series A, 5.50%, 5/15/30 | 3,275 | 4,381 | |||||||||
| New York State Dormitory Authority Revenue (NBGA — State of New York Mortgage Agency), 5.00%, 6/1/33, Continuously Callable @100 | 2,320 | 2,328 | |||||||||
| New York State Dormitory Authority Revenue Bonds, 6.00%, 7/1/40, Continuously Callable @100 (b) (f) | 3,000 | 3,027 | |||||||||
| New York State Environmental Facilities Corp. Revenue, 4.00%, 8/15/46, Continuously Callable @100 | 1,000 | 1,124 | |||||||||
| New York State Housing Finance Agency Revenue (LIQ — Deutsche Bank A.G.), Series DBE-DBE-8073, 0.46%, 8/1/50, Continuously Callable @100 (c) (f) | 991 | 991 | |||||||||
| New York State Thruway Authority Revenue Series A, 4.00%, 1/1/56, Continuously Callable @100 | 1,000 | 1,079 | |||||||||
Series B, 4.00%, 1/1/53, Continuously Callable @100 | 1,000 | 1,137 | |||||||||
| New York State Urban Development Corp. Revenue, 5.00%, 3/15/42, Continuously Callable @100 | 3,000 | 3,687 | |||||||||
| Niagara Tobacco Asset Securitization Corp. Revenue, 5.25%, 5/15/40, Continuously Callable @100 | 750 | 818 | |||||||||
| Oneida County Local Development Corp. Revenue, 4.00%, 7/1/39, Continuously Callable @100 | 750 | 822 | |||||||||
| Onondaga Civic Development Corp. Revenue 4.00%, 7/1/40, Continuously Callable @100 | 300 | 338 | |||||||||
5.00%, 10/1/40, Continuously Callable @100 | 1,000 | 1,081 | |||||||||
5.00%, 7/1/42, Continuously Callable @100 | 1,000 | 1,029 | |||||||||
5.00%, 1/1/43, Continuously Callable @100 | 740 | 866 | |||||||||
| Onondaga County Trust for Cultural Resources Revenue 5.00%, 12/1/36, Pre-refunded 12/1/21 @ 100 | 1,000 | 1,008 | |||||||||
5.00%, 5/1/40, Continuously Callable @100 | 800 | 906 | |||||||||
| Southold Local Development Corp. Revenue, 5.00%, 12/1/45, Continuously Callable @100 | 1,000 | 1,101 | |||||||||
| St. Lawrence County Industrial Development Agency Revenue 4.00%, 7/1/43, Continuously Callable @100 | 500 | 553 | |||||||||
5.00%, 9/1/47, Continuously Callable @100 | 1,770 | 2,060 | |||||||||
| State of New York Mortgage Agency Revenue, Series 211, 3.80%, 10/1/48, Continuously Callable @100 | 1,860 | 1,975 | |||||||||
| Suffolk County Economic Development Corp. Revenue, Series C, 5.00%, 7/1/33, Continuously Callable @100 | 250 | 279 | |||||||||
| Suffolk Tobacco Asset Securitization Corp. Revenue, Series B, 5.00%, 6/1/32, Pre-refunded 6/1/22 @ 100 | 1,450 | 1,491 | |||||||||
| Tompkins County Development Corp. Revenue, 5.00%, 7/1/44, Continuously Callable @100 | 1,375 | 1,489 | |||||||||
Triborough Bridge & Tunnel Authority Revenue, Series B, 11/15/32 (g) | 1,000 | 817 | |||||||||
| TSASC, Inc. Revenue Bonds, Series A, 5.00%, 6/1/41, Continuously Callable @100 | 1,000 | 1,164 | |||||||||
| Westchester County Healthcare Corp. Revenue, Series B, 6.00%, 11/1/30, Continuously Callable @100 | 130 | 130 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA New York Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Westchester County Local Development Corp. Revenue 5.00%, 1/1/34, Continuously Callable @100 | $ | 1,500 | $ | 1,576 | |||||||
5.00%, 7/1/42, Continuously Callable @104 | 450 | 515 | |||||||||
5.00%, 11/1/46, Continuously Callable @100 | 1,000 | 1,125 | |||||||||
5.00%, 6/1/47, Continuously Callable @100 | 1,000 | 1,114 | |||||||||
| Westchester Tobacco Asset Securitization Revenue, Series B, 5.00%, 6/1/41, Continuously Callable @100 | 500 | 597 | |||||||||
203,624 | |||||||||||
Guam (4.1%): | |||||||||||
| Antonio B. Won Pat International Airport Authority Revenue (INS — Assured Guaranty Municipal Corp.), Series B, 5.75%, 10/1/43, Pre-refunded 10/1/23 @ 100 | 1,000 | 1,110 | |||||||||
| Guam Government Waterworks Authority Revenue 5.50%, 7/1/43, Pre-refunded 7/1/23 @ 100 | 1,000 | 1,092 | |||||||||
Series A, 5.00%, 7/1/29, Continuously Callable @100 | 1,000 | 1,098 | |||||||||
Series A, 5.00%, 7/1/35, Continuously Callable @100 | 500 | 547 | |||||||||
| Guam Power Authority Revenue, Series A, 5.00%, 10/1/37, Continuously Callable @100 | 1,165 | 1,346 | |||||||||
| Guam Power Authority Revenue (INS — Assured Guaranty Municipal Corp.) Series A, 5.00%, 10/1/30, Continuously Callable @100 | 1,000 | 1,045 | |||||||||
Series A, 5.00%, 10/1/39, Continuously Callable @100 | 500 | 559 | |||||||||
| Territory of Guam Revenue Series A, 5.00%, 12/1/46, Continuously Callable @100 | 500 | 562 | |||||||||
Series B, 5.00%, 1/1/37, Continuously Callable @100 | 500 | 506 | |||||||||
Series D, 5.00%, 11/15/39, Continuously Callable @100 | 1,000 | 1,123 | |||||||||
8,988 | |||||||||||
Puerto Rico (0.7%): | |||||||||||
| Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Revenue, 5.13%, 4/1/32, Continuously Callable @100 | 1,390 | 1,411 | |||||||||
Total Municipal Bonds (Cost $198,708) | 214,023 | ||||||||||
Total Investments (Cost $199,207) — 98.8% | 214,223 | ||||||||||
Other assets in excess of liabilities — 1.2% | 2,620 | ||||||||||
NET ASSETS — 100.00% | $ | 216,843 | |||||||||
(a) Non-income producing security.
(b) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of September 30, 2021, illiquid securities were 1.5% of net assets.
(c) 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.
(d) Put Bond.
(e) Variable or Floating-Rate Security. Rate disclosed is as of September 30, 2021.
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA New York Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
(f) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $7,806 (thousands) and amounted to 3.6% of net assets.
(g) Zero-coupon bond.
(h) This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements).
AMBAC — American Municipal Bond Assurance Corporation
bps — Basis points
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
LOC — Letter of Credit
MUNIPSA — Municipal Swap Index
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.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
LOC Principal and interest payments are guaranteed by a bank letter of credit or other bank credit agreement.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
8
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA New York Bond Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $199,207) | $ | 214,223 | |||||
Cash | 362 | ||||||
Receivables: | |||||||
Interest | 2,363 | ||||||
Capital shares issued | 191 | ||||||
From Adviser | 10 | ||||||
Prepaid expenses | — | (a) | |||||
Total Assets | 217,149 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | 72 | ||||||
Capital shares redeemed | 88 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 66 | ||||||
Administration fees | 27 | ||||||
Custodian fees | 1 | ||||||
Transfer agent fees | 8 | ||||||
Compliance fees | — | (a) | |||||
Trustees' fees | 1 | ||||||
| 12b-1 fees | — | (a) | |||||
Other accrued expenses | 43 | ||||||
Total Liabilities | 306 | ||||||
Net Assets: | |||||||
Capital | 205,328 | ||||||
Total accumulated earnings/(loss) | 11,515 | ||||||
Net Assets | $ | 216,843 | |||||
Net Assets | |||||||
Fund Shares | $ | 211,161 | |||||
Institutional Shares | 3,913 | ||||||
Class A | 1,769 | ||||||
Total | $ | 216,843 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 17,302 | ||||||
Institutional Shares | 321 | ||||||
Class A | 145 | ||||||
Total | 17,768 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Fund Shares | $ | 12.20 | |||||
Institutional Shares | $ | 12.20 | |||||
Class A | $ | 12.17 | |||||
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 | $ | 12.45 | |||||
(a) Rounds to less than $1 thousand.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
9
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA New York Bond Fund | |||||||
Investment Income: | |||||||
Interest | $ | 3,598 | |||||
Total Income | 3,598 | ||||||
Expenses: | |||||||
Investment advisory fees | 403 | ||||||
Administration fees — Fund Shares | 160 | ||||||
Administration fees — Institutional Shares | 2 | ||||||
Administration fees — Class A | 2 | ||||||
Sub-Administration fees | 11 | ||||||
| 12b-1 fees — Class A | 3 | ||||||
Custodian fees | 5 | ||||||
Transfer agent fees — Fund Shares | 27 | ||||||
Transfer agent fees — Institutional Shares | 2 | ||||||
Transfer agent fees — Class A | 1 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 1 | ||||||
Legal and audit fees | 27 | ||||||
State registration and filing fees | 1 | ||||||
Other expenses | 29 | ||||||
Total Expenses | 698 | ||||||
Expenses waived/reimbursed by Adviser | (2 | ) | |||||
Net Expenses | 696 | ||||||
Net Investment Income (Loss) | 2,902 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 26 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | 1,702 | ||||||
Net realized/unrealized gains (losses) on investments | 1,728 | ||||||
Change in net assets resulting from operations | $ | 4,630 | |||||
See notes to financial statements.
10
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
USAA New York Bond Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 2,902 | $ | 6,228 | |||||||
Net realized gains (losses) from investments | 26 | (460 | ) | ||||||||
| Net change in unrealized appreciation/depreciation on investments | 1,702 | 5,952 | |||||||||
Change in net assets resulting from operations | 4,630 | 11,720 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (2,831 | ) | (5,993 | ) | |||||||
Institutional Shares (a) | (49 | ) | (55 | ) | |||||||
Class A | (27 | ) | (172 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (2,907 | ) | (6,220 | ) | |||||||
Change in net assets resulting from capital transactions | (1,298 | ) | (13,646 | ) | |||||||
Change in net assets | 425 | (8,146 | ) | ||||||||
Net Assets: | |||||||||||
Beginning of period | 216,418 | 224,564 | |||||||||
End of period | $ | 216,843 | $ | 216,418 | |||||||
(a) Institutional Shares commenced operations on June 29, 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 New York Bond Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 8,067 | $ | 20,168 | |||||||
Distributions reinvested | 2,396 | 4,938 | |||||||||
Cost of shares redeemed | (8,020 | ) | (41,447 | ) | |||||||
Total Fund Shares | $ | 2,443 | $ | (16,341 | ) | ||||||
Institutional Shares (a) | |||||||||||
Proceeds from shares issued | $ | 1,194 | $ | 3,777 | |||||||
Distributions reinvested | 49 | 55 | |||||||||
Cost of shares redeemed | (303 | ) | (874 | ) | |||||||
Total Institutional Shares | $ | 940 | $ | 2,958 | |||||||
Class A | |||||||||||
Proceeds from shares issued | $ | 467 | $ | 6,686 | |||||||
Distributions reinvested | 25 | 46 | |||||||||
Cost of shares redeemed | (5,173 | ) | (6,995 | ) | |||||||
Total Class A | $ | (4,681 | ) | $ | (263 | ) | |||||
Change in net assets resulting from capital transactions | $ | (1,298 | ) | $ | (13,646 | ) | |||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 654 | 1,681 | |||||||||
Reinvested | 195 | 412 | |||||||||
Redeemed | (650 | ) | (3,474 | ) | |||||||
Total Fund Shares | 199 | (1,381 | ) | ||||||||
Institutional Shares (a) | |||||||||||
Issued | 98 | 312 | |||||||||
Reinvested | 4 | 5 | |||||||||
Redeemed | (25 | ) | (73 | ) | |||||||
Total Institutional Shares | 77 | 244 | |||||||||
Class A | |||||||||||
Issued | 37 | 561 | |||||||||
Reinvested | 2 | 4 | |||||||||
Redeemed | (422 | ) | (587 | ) | |||||||
Total Class A | (383 | ) | (22 | ) | |||||||
Change in Shares | (107 | ) | (1,159 | ) | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
See notes to financial statements.
12
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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 | Total Distributions | ||||||||||||||||||||||
USAA New York Bond Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.11 | 0.16 | (e) | 0.09 | 0.25 | (0.16 | ) | (0.16 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 11.80 | 0.34 | (e) | 0.31 | 0.65 | (0.34 | ) | (0.34 | ) | |||||||||||||||||
2020 | $ | 11.87 | 0.38 | (e) | (0.07 | ) | 0.31 | (0.38 | ) | (0.38 | ) | ||||||||||||||||
2019 | $ | 11.76 | 0.40 | 0.11 | 0.51 | (0.40 | ) | (0.40 | ) | ||||||||||||||||||
2018 | $ | 11.88 | 0.41 | (0.12 | ) | 0.29 | (0.41 | ) | (0.41 | ) | |||||||||||||||||
2017 | $ | 12.28 | 0.42 | (0.41 | ) | 0.01 | (0.41 | ) | (0.41 | ) | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.10 | 0.17 | (e) | 0.10 | 0.27 | (0.17 | ) | (0.17 | ) | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 11.94 | 0.26 | (e) | 0.16 | 0.42 | (0.26 | ) | (0.26 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.08 | 0.15 | (e) | 0.09 | 0.24 | (0.15 | ) | (0.15 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 11.77 | 0.32 | (e) | 0.31 | 0.63 | (0.32 | ) | (0.32 | ) | |||||||||||||||||
2020 | $ | 11.84 | 0.35 | (e) | (0.07 | ) | 0.28 | (0.35 | ) | (0.35 | ) | ||||||||||||||||
2019 | $ | 11.73 | 0.37 | 0.11 | 0.48 | (0.37 | ) | (0.37 | ) | ||||||||||||||||||
2018 | $ | 11.85 | 0.38 | (0.12 | ) | 0.26 | (0.38 | ) | (0.38 | ) | |||||||||||||||||
2017 | $ | 12.25 | 0.39 | (0.40 | ) | (0.01 | ) | (0.39 | ) | (0.39 | ) | ||||||||||||||||
* 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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
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 | ||||||||||||||||||||||||||||||
| Net Asset Value, End of Period | Total Return (Excludes Sales Charge)*(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 New York Bond Fund | |||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.20 | 2.10 | % | 0.63 | % | 2.65 | % | 0.63 | % | $ | 211,161 | 2 | % | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||
2021 | $ | 12.11 | 5.61 | % | 0.66 | % | 2.87 | % | 0.66 | % | $ | 207,085 | 19 | % | |||||||||||||||||
2020 | $ | 11.80 | 2.60 | % | 0.61 | % | 3.17 | % | 0.61 | % | $ | 218,096 | 18 | % | |||||||||||||||||
2019 | $ | 11.87 | 4.41 | % | 0.60 | % | 3.39 | % | 0.60 | % | $ | 226,973 | 15 | % | |||||||||||||||||
2018 | $ | 11.76 | 2.45 | % | 0.59 | % | 3.43 | % | 0.59 | % | $ | 216,090 | 6 | % | |||||||||||||||||
2017 | $ | 11.88 | 0.10 | % | 0.61 | % | 3.41 | % | 0.61 | % | $ | 208,513 | 10 | % | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.20 | 2.19 | % | 0.61 | % | 2.68 | % | 0.65 | % | $ | 3,913 | 2 | % | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 12.10 | 3.55 | % | 0.61 | % | 2.86 | % | 0.77 | % | $ | 2,958 | 19 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.17 | 1.99 | % | 0.86 | % | 2.51 | % | 0.94 | % | $ | 1,769 | 2 | % | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||
2021 | $ | 12.08 | 5.38 | % | 0.89 | % | 2.65 | % | 0.96 | % | $ | 6,375 | 19 | % | |||||||||||||||||
2020 | $ | 11.77 | 2.36 | % | 0.85 | % | 2.93 | % | 0.85 | % | $ | 6,468 | 18 | % | |||||||||||||||||
2019 | $ | 11.84 | 4.16 | % | 0.85 | % | 3.15 | % | 0.85 | % | $ | 6,295 | 15 | % | |||||||||||||||||
2018 | $ | 11.73 | 2.19 | % | 0.84 | % | 3.18 | % | 0.84 | % | $ | 5,971 | 6 | % | |||||||||||||||||
2017 | $ | 11.85 | (0.13 | )% | 0.83 | % | 3.19 | % | 0.83 | % | $ | 6,302 | 10 | % | |||||||||||||||||
(e) Per share net investment income (loss) has been calculated using the average daily shares method.
(f) Commencement of operations.
See notes to financial statements.
15
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA New York Bond Fund (the "Fund"). The Fund offers three classes of shares: Fund Shares, Institutional Shares, and Class A. 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 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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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 September 30, 2021 | ||||||
(Unaudited)
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.
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 net asset value ("NAV") to be more reliable than it otherwise would be.
A summary of the valuations as of September 30, 2021, 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 | ||||||||||||||||
Other Equity Interests | $ | — | $ | — | $ | 200 | $ | 200 | |||||||||||
Municipal Bonds | — | 214,023 | — | 214,023 | |||||||||||||||
Total | $ | — | $ | 214,023 | $ | 200 | $ | 214,223 | |||||||||||
As of September 30, 2021, there were no significant Level 3 holdings in the fair value hierarchy. For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 March 31.
17
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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.
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 an 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, printing fees, and 12b-1 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 September 30, 2021, 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) | |||||||||
| $ | 5,300 | $ | 3,300 | $ | — | ||||||
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 3,233 | $ | 7,851 | ||||
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.
18
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 annualized rate of 0.50% of the first $50 million of the Fund's average daily net assets, 0.40% of that portion of the Fund's average daily net assets over $50 million but not over $100 million, and 0.30% of that portion of the Fund's average daily net assets over $100 million. Amounts incurred and paid to VCM for the six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper New York Municipal Debt Funds Index. The Lipper New York Municipal Debt Funds Index tracks the total return performance of the largest funds within the Lipper New York Municipal Debt Funds category.
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) | ||||||
| +/- 20 to 50 | +/- 4 | ||||||
| +/- 51 to 100 | +/- 5 | ||||||
| +/- 101 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper New York Municipal Debt Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $0, less than $1, and less than $(1) for Fund Shares, Institutional Shares, and Class A, in thousands, respectively. Performance adjustments were 0.00%, less than 0.01% and (0.04)% for Fund Shares, Institutional Shares, and Class A, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, the Fund had no subadvisers.
19
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.15%, 0.10%, and 0.15%, which is based on the Fund's average daily net assets of the Fund Shares, Institutional Shares, and Class A, respectively. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares based on an annual charge of $25.50 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 and Class A are paid monthly based on a fee accrued daily at an annualized rate of 0.10% and 0.10%, respectively, of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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.
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 Class A. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activity primarily intended to result in the sale of Class A. Amounts incurred and paid to the Distributor for the six months ended September 30, 2021, are reflected on the Statement of Operations as 12b-1 fees.
In addition, the Distributor is entitled to receive commissions on sales of Class A. For the six months ended September 30, 2021, the Distributor did not receive any commissions.
20
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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. Acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 0.65%, 0.61%, and 0.90% for Fund Shares, Institutional Shares, and Class A, respectively.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2024 | Expires 2025 | Total | |||||||||
| $ | 7 | $ | 2 | $ | 9 | ||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
State-Specific Risk — Because the Fund invests primarily in New York tax-exempt securities, the Fund is more susceptible to adverse economic, political, and regulatory changes affecting tax-exempt securities issuers in New York to pay interest or repay principal, which may impact the Fund's performance. The Fund is more vulnerable to unfavorable developments in New York than are funds that invest in municipal securities of many states. While New York State's economy is broad, it does have concentrations in the financial services industry and may be sensitive to economic problems affecting that industry. Certain issuers of New York municipal bonds have experienced serious financial difficulties in the past, and reoccurrence of these difficulties may impair the ability of certain New York issuers to pay principal or interest on their obligations. The financial health of New York City affects that of New York State; and when New York City experiences financial difficulty, it may have an adverse affect on New York municipal bonds held by the Fund. The growth rate of New York State has at times been somewhat slower than the nation overall. The economic and financial condition of New York State also may be affected by various financial, social, economic, and political factors. In addition, the economic affects regarding COVID-19 may exacerbate some or all of these risks.
21
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Debt Securities 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.
Other factors that may affect the value of debt securities include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.
Credit Risk — 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.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors. Bond prices generally are linked to the prevailing market interest rates. In general, when interest rates rise, bond prices fall; conversely, when interest rates fall, bond prices rise. The price volatility of a bond also depends on its duration. Generally, the longer the duration of a bond, the greater is its sensitivity to interest rates. To compensate investors for this higher interest rate risk, bonds with longer durations generally offer higher yields than bonds with shorter durations. The ability of an issuer of a debt security to repay principal prior to a security's maturity can increase the security's sensitivity to interest rate changes.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
LIBOR Discontinuation Risk — 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. 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. For U.S. dollar LIBOR, however, the relevant date may be deferred to June 30, 2023, for the most common tenors (overnight and one, three, six, and 12 months). As to those tenors, the LIBOR administrator has published a consultation regarding its intention to cease publication of U.S. dollar LIBOR as of June 30, 2023, (instead of December 31, 2021, as previously expected), apparently based on continued rate submissions from banks. It is expected that there will 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. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, or any particular currency and
22
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
tenor, will continue to be published until any particular date, and it appears highly likely that LIBOR will be discontinued or modified after December 31, 2021, or June 30, 2023, depending on the currency and tenor. 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:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The Fund did not utilize or participate in the Facility during the six months ended September 30, 2021.
7. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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
23
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 1,220 | $ | 2,310 | $ | 3,530 | ||||||
24
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,021.00 | $ | 1,021.91 | $ | 3.19 | $ | 3.19 | 0.63 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,021.90 | 1,022.01 | 3.09 | 3.09 | 0.61 | % | ||||||||||||||||||||
Class A | 1,000.00 | 1,019.90 | 1,020.76 | 4.35 | 4.36 | 0.86 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
25
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 | ||||||
39608-1121
September 30, 2021
Semi Annual Report
USAA Virginia Bond Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 11 | ||||||
Statement of Operations | 12 | ||||||
Statements of Changes in Net Assets | 13 | ||||||
Financial Highlights | 16 | ||||||
Notes to Financial Statements | 18 | ||||||
Supplemental Information | 27 | ||||||
Proxy Voting and Portfolio Holdings Information | 27 | ||||||
Expense Examples | 27 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Virginia Bond Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide Virginia investors with a high level of current interest income that is exempt from federal and Virginia state income taxes.
Top 10 Industries
September 30, 2021
(% of Net Assets)
Hospital | 18.4 | % | |||||
Education | 15.5 | % | |||||
Appropriated Debt | 10.2 | % | |||||
Nursing/CCRC | 9.7 | % | |||||
Escrowed Bonds | 5.4 | % | |||||
Toll Road | 5.3 | % | |||||
Special Assessment/Tax/Fee | 4.7 | % | |||||
Water/Sewer Utility | 3.7 | % | |||||
General Obligation | 3.7 | % | |||||
Water | 3.3 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Municipal Bonds (101.2%) | |||||||||||
Virginia (92.2%): | |||||||||||
| Alexandria IDA Revenue, Series C, 4.00%, 1/1/46, Continuously Callable @ 100 (a) | $ | 2,400 | $ | 2,757 | |||||||
| Amherst IDA Revenue 5.00%, 9/1/26, Continuously Callable @ 100 | 1,345 | 1,345 | |||||||||
4.75%, 9/1/30, Continuously Callable @ 100 | 2,000 | 1,961 | |||||||||
| Arlington County IDA Revenue 5.00%, 2/15/43, Continuously Callable @ 100 | 1,775 | 2,147 | |||||||||
4.00%, 7/1/45, Continuously Callable @ 100 | 1,585 | 1,830 | |||||||||
Campbell County IDA Revenue, 4.00%, 6/1/44, Continuously Callable @ 100 | 4,600 | 5,313 | |||||||||
| Capital Region Airport Commission Revenue Series A, 4.00%, 7/1/36, Continuously Callable @ 100 | 700 | 786 | |||||||||
Series A, 4.00%, 7/1/38, Continuously Callable @ 100 | 750 | 838 | |||||||||
| Charles City County Economic Development Authority Revenue, Series A, 2.88%, 2/1/29, Continuously Callable @ 101 | 10,000 | 10,921 | |||||||||
| Chesapeake Bay Bridge & Tunnel District Revenue 5.50%, 7/1/25 | 5,000 | 5,679 | |||||||||
5.00%, 7/1/51, Continuously Callable @ 100 | 9,240 | 10,727 | |||||||||
| Chesapeake Bay Bridge & Tunnel District Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 7/1/41, Continuously Callable @ 100 | 5,000 | 5,926 | |||||||||
| Chesapeake Hospital Authority Revenue 4.00%, 7/1/39, Continuously Callable @ 100 | 1,000 | 1,148 | |||||||||
4.00%, 7/1/43, Continuously Callable @ 100 | 4,000 | 4,502 | |||||||||
| City of Chesapeake Expressway Toll Road Revenue 7/15/32, Continuously Callable @ 100 (b) | 6,520 | 7,165 | |||||||||
7/15/40, Continuously Callable @ 100 (i) | 3,000 | 3,317 | |||||||||
City of Lynchburg, GO, 4.00%, 6/1/44, Continuously Callable @ 100 | 5,000 | 5,411 | |||||||||
| City of Norfolk, GO Series A, 4.00%, 9/1/37, Continuously Callable @ 100 | 2,040 | 2,445 | |||||||||
Series A, 4.00%, 9/1/39, Continuously Callable @ 100 | 1,535 | 1,832 | |||||||||
| City of Norfolk, GO (LIQ — Bank of America Corp.), 0.05%, 8/1/37, Continuously Callable @ 100 (c) | 3,830 | 3,830 | |||||||||
| City of Portsmouth, GO 5.00%, 2/1/33, Pre-refunded 2/1/23 @ 100 | 880 | 936 | |||||||||
5.00%, 2/1/33, Pre-refunded 2/1/23 @ 100 | 120 | 128 | |||||||||
| City of Richmond Public Utility Revenue 4.00%, 1/15/40, Continuously Callable @ 100 | 6,000 | 6,708 | |||||||||
Series A, 5.00%, 1/15/38, Pre-refunded 1/15/23 @ 100 | 6,000 | 6,371 | |||||||||
Series A, 4.00%, 1/15/50, Continuously Callable @ 100 | 1,730 | 2,002 | |||||||||
| City of Richmond, GO Series D, 5.00%, 3/1/32 | 800 | 1,098 | |||||||||
Series D, 5.00%, 3/1/33 | 1,000 | 1,400 | |||||||||
| County of Fairfax VA Sewer Revenue Series A, 5.00%, 7/15/46, Continuously Callable @ 100 (d) | 10,000 | 12,930 | |||||||||
Series A, 4.00%, 7/15/51, Continuously Callable @ 100 (d) | 10,000 | 11,855 | |||||||||
| Fairfax County Economic Development Authority Revenue 5.00%, 4/1/47, Continuously Callable @ 100 | 4,000 | 4,783 | |||||||||
Series A, 5.00%, 10/1/29, Continuously Callable @ 100 | 2,000 | 2,269 | |||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A, 5.00%, 10/1/30, Continuously Callable @ 100 | $ | 2,000 | $ | 2,268 | |||||||
Series A, 5.00%, 10/1/31, Continuously Callable @ 100 | 2,000 | 2,266 | |||||||||
Series A, 5.00%, 10/1/32, Continuously Callable @ 100 | 1,500 | 1,698 | |||||||||
Series A, 5.00%, 12/1/32, Pre-refunded 12/1/23 @ 100 | 1,500 | 1,655 | |||||||||
Series A, 5.00%, 10/1/33, Continuously Callable @ 100 | 2,200 | 2,489 | |||||||||
Series A, 5.00%, 10/1/34, Continuously Callable @ 100 | 2,000 | 2,261 | |||||||||
Series A, 5.00%, 10/1/42, Continuously Callable @ 102 | 2,250 | 2,546 | |||||||||
Series A, 4.00%, 10/1/42, Continuously Callable @ 102 | 2,750 | 2,954 | |||||||||
Series A, 5.00%, 12/1/42, Pre-refunded 12/1/23 @ 100 | 2,800 | 3,089 | |||||||||
Series B, 5.00%, 10/1/35, Continuously Callable @ 100 | 2,620 | 3,218 | |||||||||
Series B, 5.00%, 10/1/36, Continuously Callable @ 100 | 2,000 | 2,448 | |||||||||
| Fairfax County Economic Development Authority Revenue (LIQ — Northern Trust Corp.), Series A, 0.05%, 12/1/33, Continuously Callable @ 100 (c) | 4,475 | 4,475 | |||||||||
| Fairfax County Economic Development Authority Revenue (LOC — SunTrust Bank), 0.06%, 6/1/37, Continuously Callable @ 100 (c) | 7,800 | 7,800 | |||||||||
| Fairfax County IDA Revenue 5.00%, 5/15/37, Continuously Callable @ 100 | 14,000 | 14,408 | |||||||||
4.00%, 5/15/42, Continuously Callable @ 100 | 1,000 | 1,022 | |||||||||
Series A, 4.00%, 5/15/44, Continuously Callable @ 100 | 6,900 | 7,407 | |||||||||
Series S, 4.00%, 5/15/48, Continuously Callable @ 100 | 1,500 | 1,718 | |||||||||
| Front Royal & Warren County IDA Revenue, 4.00%, 1/1/50, Continuously Callable @ 103 | 7,000 | 7,640 | |||||||||
| Greater Richmond Convention Center Authority Revenue, 5.00%, 6/15/32, Pre-refunded 6/15/25 @ 100 | 1,500 | 1,721 | |||||||||
| Hampton Roads Sanitation District Revenue, Series A, 5.00%, 8/1/43, Pre-refunded 8/1/26 @ 100 | 4,700 | 5,700 | |||||||||
| Hampton Roads Transportation Accountability Commission Revenue Series A, 4.00%, 7/1/50, Continuously Callable @ 100 | 5,000 | 5,820 | |||||||||
Series A, 5.00%, 7/1/52, Continuously Callable @ 100 (d) | 15,000 | 17,863 | |||||||||
| Hanover County Economic Development Authority Revenue 5.00%, 7/1/51, Continuously Callable @ 103 | 1,200 | 1,302 | |||||||||
Series A, 4.50%, 7/1/30, Continuously Callable @ 100 | 2,795 | 2,844 | |||||||||
Series A, 4.50%, 7/1/32, Continuously Callable @ 100 | 1,100 | 1,119 | |||||||||
Series A, 5.00%, 7/1/42, Continuously Callable @ 100 | 2,000 | 2,035 | |||||||||
| Henrico County Economic Development Authority Revenue 5.00%, 6/1/24, Continuously Callable @ 100 | 1,200 | 1,227 | |||||||||
4.25%, 6/1/26, Continuously Callable @ 100 | 140 | 142 | |||||||||
5.00%, 11/1/30, Pre-refunded 11/1/22 @ 100 | 2,105 | 2,214 | |||||||||
5.00%, 10/1/37, Continuously Callable @ 103 | 2,500 | 2,813 | |||||||||
4.00%, 10/1/40, Continuously Callable @ 103 | 500 | 562 | |||||||||
4.00%, 10/1/45, Continuously Callable @ 103 | 725 | 804 | |||||||||
4.00%, 10/1/50, Continuously Callable @ 103 | 1,500 | 1,653 | |||||||||
| James City County Economic Development Authority Revenue 4.00%, 6/1/47, Continuously Callable @ 103 | 1,000 | 1,081 | |||||||||
Series A, 4.00%, 12/1/35, Continuously Callable @ 103 (a) | 1,015 | 1,128 | |||||||||
Series A, 4.00%, 12/1/40, Continuously Callable @ 103 (a) | 1,155 | 1,268 | |||||||||
Series A, 4.00%, 12/1/50, Continuously Callable @ 103 (a) | 7,735 | 8,429 | |||||||||
| Lewistown Commerce Center Community Development Authority Tax Allocation 3.63%, 3/1/44, Continuously Callable @ 103 (e) | 1,431 | 1,174 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
6.05%, 3/1/44, Continuously Callable @ 103 | $ | 680 | $ | 561 | |||||||
Series C, 0.50%, 3/1/54, Continuously Callable @ 100 (e) | 2,340 | 426 | |||||||||
| Lexington IDA Revenue 4.00%, 1/1/31, Continuously Callable @ 102 | 750 | 824 | |||||||||
4.00%, 1/1/37, Continuously Callable @ 102 | 1,000 | 1,082 | |||||||||
5.00%, 1/1/43, Pre-refunded 1/1/22 @ 100 | 2,000 | 2,023 | |||||||||
5.00%, 1/1/48, Continuously Callable @ 100 | 1,000 | 1,214 | |||||||||
Series A, 5.00%, 1/1/42, Continuously Callable @ 103 | 1,000 | 1,066 | |||||||||
Series A, 5.00%, 1/1/48, Continuously Callable @ 103 | 1,250 | 1,330 | |||||||||
| Loudoun County Economic Development Authority Revenue 5.00%, 12/1/31, Continuously Callable @ 100 | 1,135 | 1,293 | |||||||||
5.00%, 12/1/32, Continuously Callable @ 100 | 800 | 911 | |||||||||
5.00%, 12/1/33, Continuously Callable @ 100 | 775 | 882 | |||||||||
5.00%, 12/1/34, Continuously Callable @ 100 | 805 | 915 | |||||||||
Series B, 0.04%, 2/15/38, Callable 11/1/21 @ 100 (c) | 8,545 | 8,545 | |||||||||
Series E, 0.06%, 2/15/38, Callable 11/1/21 @ 100 (c) | 7,255 | 7,255 | |||||||||
Series F, 0.06%, 2/15/38, Callable 11/1/21 @ 100 (c) | 6,810 | 6,810 | |||||||||
| Lynchburg Economic Development Authority Revenue 5.00%, 9/1/43, Continuously Callable @ 100 | 3,000 | 3,223 | |||||||||
Series A, 5.00%, 1/1/47, Continuously Callable @ 100 | 2,250 | 2,603 | |||||||||
| Lynchburg Economic Development Authority Revenue (LIQ — JPMorgan Chase & Co.), Series 2018-XL0075, 0.15%, 1/1/25 (c) (f) | 5,400 | 5,400 | |||||||||
| Lynchburg Economic Development Authority Revenue (LOC — Branch Banking & Trust Co.) Series B, 0.08%, 1/1/47, Continuously Callable @ 100 (c) | 6,400 | 6,400 | |||||||||
Series C, 0.12%, 1/1/47, Continuously Callable @ 100 (c) | 1,965 | 1,965 | |||||||||
| Manassas Park Economic Development Authority Revenue, 4.00%, 12/15/52, Continuously Callable @ 100 | 4,500 | 5,220 | |||||||||
| Marquis Community Development Authority of York County Virginia Tax Allocation, Series B, 1.13%, 9/1/41 (e) (j) | 3,532 | 1,699 | |||||||||
Marquis Community Development Authority Revenue, 1.50%, 9/1/45 (e) (f) (j) | 1,093 | 526 | |||||||||
| Marquis Community Development Authority Tax Allocation, Series C, 9/1/41 (e) (g) (j) | 5,389 | 248 | |||||||||
| Montgomery County Economic Development Authority Revenue Series A, 4.00%, 6/1/36, Continuously Callable @ 100 | 1,125 | 1,323 | |||||||||
Series A, 4.00%, 6/1/39, Continuously Callable @ 100 | 1,750 | 2,042 | |||||||||
Norfolk Airport Authority Revenue, 5.00%, 7/1/43, Continuously Callable @ 100 | 2,800 | 3,474 | |||||||||
| Norfolk Economic Development Authority Revenue 5.00%, 11/1/30, Pre-refunded 11/1/22 @ 100 | 1,000 | 1,052 | |||||||||
Series A, 0.07%, 11/1/34, Continuously Callable @ 100 (c) | 1,900 | 1,900 | |||||||||
Series B, 5.00%, 11/1/43, Continuously Callable @ 100 | 3,500 | 3,663 | |||||||||
Series B, 5.00%, 11/1/48, (Put Date 11/1/28) (h) | 1,600 | 2,030 | |||||||||
Series B, 4.00%, 11/1/48, Continuously Callable @ 100 | 1,100 | 1,230 | |||||||||
| Prince Edward County IDA Revenue 4.00%, 9/1/43, Continuously Callable @ 100 | 2,250 | 2,457 | |||||||||
5.00%, 9/1/48, Continuously Callable @ 100 | 2,055 | 2,398 | |||||||||
| Prince William County IDA Revenue 5.00%, 1/1/37, Continuously Callable @ 102 | 1,000 | 1,055 | |||||||||
5.00%, 1/1/46, Continuously Callable @ 102 | 4,000 | 4,176 | |||||||||
5.00%, 11/1/46, Pre-refunded 11/1/22 @ 100 | 10,000 | 10,515 | |||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Radford IDA Revenue (NBGA — Fannie Mae), 3.50%, 9/15/29, Continuously Callable @ 100 | $ | 4,000 | $ | 4,088 | |||||||
| Rappahannock Regional Jail Authority Revenue 5.00%, 10/1/34, Pre-refunded 10/1/25 @ 100 | 2,340 | 2,764 | |||||||||
5.00%, 10/1/35, Pre-refunded 10/1/25 @ 100 | 1,165 | 1,376 | |||||||||
| Roanoke Economic Development Authority Revenue 5.00%, 7/1/47 | 6,250 | 9,334 | |||||||||
4.00%, 7/1/51, Continuously Callable @ 100 | 5,000 | 5,762 | |||||||||
Series A, 5.00%, 9/1/36, Continuously Callable @ 100 | 1,640 | 1,979 | |||||||||
Series A, 5.00%, 9/1/43, Continuously Callable @ 100 | 4,060 | 4,829 | |||||||||
| Rockingham County Economic Development Authority Revenue 4.00%, 12/1/33, Continuously Callable @ 100 | 1,000 | 1,165 | |||||||||
5.00%, 12/1/39, Continuously Callable @ 100 | 4,180 | 5,123 | |||||||||
| Salem Economic Development Authority Revenue 4.00%, 4/1/38, Continuously Callable @ 100 | 250 | 285 | |||||||||
4.00%, 4/1/39, Continuously Callable @ 100 | 225 | 256 | |||||||||
4.00%, 4/1/40, Continuously Callable @ 100 | 250 | 284 | |||||||||
4.00%, 4/1/45, Continuously Callable @ 100 | 750 | 839 | |||||||||
5.00%, 4/1/49, Continuously Callable @ 100 | 910 | 1,087 | |||||||||
| Stafford County Economic Development Authority Revenue 5.00%, 6/15/36, Continuously Callable @ 100 | 5,900 | 6,970 | |||||||||
4.00%, 6/15/37, Continuously Callable @ 100 | 6,495 | 7,228 | |||||||||
| Tobacco Settlement Financing Corp. Revenue, Series B-1, 5.00%, 6/1/47, Continuously Callable @ 100 | 10,000 | 10,174 | |||||||||
| University of Virginia Revenue Series A, 5.00%, 6/1/37, Pre-refunded 6/1/23 @ 100 | 4,405 | 4,756 | |||||||||
Series A, 5.00%, 4/1/42, Continuously Callable @ 100 | 4,000 | 4,811 | |||||||||
Series A, 5.00%, 4/1/47, Continuously Callable @ 100 | 5,000 | 5,998 | |||||||||
Series A, 2.18%, 11/1/51, Continuously Callable @ 100 | 1,000 | 945 | |||||||||
Series A-1, 4.00%, 4/1/45, Continuously Callable @ 100 | 5,000 | 5,472 | |||||||||
Series B, 5.00%, 4/1/46, Continuously Callable @ 100 | 5,000 | 5,996 | |||||||||
| Upper Occoquan Sewage Authority Revenue, 4.00%, 7/1/39, Pre-refunded 7/1/25 @ 100 | 5,000 | 5,671 | |||||||||
| Virginia Beach Development Authority Revenue 5.00%, 9/1/40, Continuously Callable @ 103 | 3,250 | 3,722 | |||||||||
5.00%, 9/1/44, Continuously Callable @ 103 | 4,865 | 5,515 | |||||||||
4.00%, 9/1/48, Continuously Callable @ 103 | 3,755 | 4,037 | |||||||||
Series A, 5.00%, 5/1/29, Continuously Callable @ 100 | 1,795 | 2,009 | |||||||||
| Virginia College Building Authority Revenue 5.00%, 6/1/22 | 125 | 129 | |||||||||
5.00%, 6/1/23 | 125 | 134 | |||||||||
5.00%, 6/1/24 | 225 | 250 | |||||||||
5.00%, 6/1/25 | 250 | 287 | |||||||||
5.00%, 6/1/26 | 250 | 295 | |||||||||
5.00%, 6/1/27 | 275 | 332 | |||||||||
5.00%, 6/1/28 | 295 | 363 | |||||||||
5.00%, 6/1/29 | 300 | 376 | |||||||||
5.00%, 6/1/30 | 325 | 414 | |||||||||
5.00%, 2/1/31, Continuously Callable @ 100 | 10,000 | 12,492 | |||||||||
5.00%, 6/1/31 | 300 | 388 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
5.00%, 2/1/32, Continuously Callable @ 100 | $ | 4,000 | $ | 4,987 | |||||||
4.00%, 1/15/33, Continuously Callable @ 100 | 965 | 1,118 | |||||||||
4.00%, 1/15/35, Continuously Callable @ 100 | 545 | 627 | |||||||||
4.00%, 1/15/36, Continuously Callable @ 100 | 650 | 746 | |||||||||
4.00%, 6/1/36, Continuously Callable @ 100 | 925 | 1,080 | |||||||||
4.00%, 1/15/43, Continuously Callable @ 100 | 1,285 | 1,450 | |||||||||
4.00%, 6/1/46, Continuously Callable @ 100 | 1,000 | 1,152 | |||||||||
Series A, 5.00%, 9/1/31, Pre-refunded 9/1/24 @ 100 | 2,725 | 3,098 | |||||||||
Series A, 5.00%, 9/1/32, Pre-refunded 9/1/24 @ 100 | 5,615 | 6,383 | |||||||||
Series A, 5.00%, 9/1/33, Pre-refunded 9/1/24 @ 100 | 6,380 | 7,253 | |||||||||
Series A, 4.00%, 2/1/35, Continuously Callable @ 100 | 8,000 | 8,890 | |||||||||
Series A, 3.00%, 1/15/46, Continuously Callable @ 100 | 1,000 | 1,049 | |||||||||
Series A, 3.00%, 1/15/51, Continuously Callable @ 100 | 1,175 | 1,232 | |||||||||
| Virginia College Building Authority Revenue (LIQ — U.S. Bancorp), 0.04%, 8/1/34, Callable 11/3/21 @ 100 (c) | 2,200 | 2,200 | |||||||||
| Virginia College Building Authority Revenue (LIQ — Wells Fargo & Co.), 0.04%, 11/1/36, Continuously Callable @ 100 (c) | 4,660 | 4,660 | |||||||||
| Virginia Commonwealth Transportation Board Regional Fuels Tax Revenue, 4.00%, 5/15/46, Continuously Callable @ 100 | 5,195 | 6,156 | |||||||||
| Virginia Commonwealth Transportation Board Revenue 5.00%, 3/15/32, Continuously Callable @ 100 | 3,350 | 4,154 | |||||||||
5.00%, 9/15/32, Continuously Callable @ 100 | 9,190 | 11,390 | |||||||||
4.00%, 5/15/42, Continuously Callable @ 100 | 10,000 | 11,391 | |||||||||
Series A, 4.00%, 5/15/36, Continuously Callable @ 100 | 2,000 | 2,314 | |||||||||
| Virginia Commonwealth University Health System Authority Revenue, 5.00%, 7/1/46, Continuously Callable @ 100 | 5,500 | 6,601 | |||||||||
| Virginia Commonwealth University Revenue Series A, 4.00%, 11/1/37, Continuously Callable @ 100 | 750 | 871 | |||||||||
Series A, 5.00%, 11/1/38, Continuously Callable @ 100 | 350 | 434 | |||||||||
Series A, 4.00%, 5/1/48, Continuously Callable @ 100 | 2,475 | 2,798 | |||||||||
| Virginia Housing Development Authority Revenue Series B, 3.60%, 5/1/46, Continuously Callable @ 100 | 7,000 | 7,285 | |||||||||
Series E, 2.65%, 7/1/50, Continuously Callable @ 100 | 1,640 | 1,642 | |||||||||
Series I, 2.45%, 11/1/45, Continuously Callable @ 100 | 1,500 | 1,481 | |||||||||
| Virginia Public Building Authority Revenue, Series A, 4.00%, 8/1/30, Continuously Callable @ 100 | 4,000 | 4,704 | |||||||||
Virginia Public School Authority Revenue, 5.00%, 8/1/24 | 10,000 | 11,322 | |||||||||
| Virginia Resources Authority Revenue 5.00%, 11/1/32, Continuously Callable @ 100 | 55 | 60 | |||||||||
5.00%, 11/1/32, Pre-refunded 11/1/23 @ 100 | 975 | 1,072 | |||||||||
4.00%, 11/1/41, Pre-refunded 11/1/22 @ 100 | 7,310 | 7,612 | |||||||||
4.00%, 11/1/49, Continuously Callable @ 100 | 6,700 | 7,737 | |||||||||
Series A, 4.00%, 11/1/43, Continuously Callable @ 100 | 1,445 | 1,741 | |||||||||
Series A, 4.00%, 11/1/47, Continuously Callable @ 100 | 1,040 | 1,241 | |||||||||
| Virginia Small Business Financing Authority Revenue 4.00%, 11/1/39, Continuously Callable @ 100 | 2,550 | 2,975 | |||||||||
4.00%, 12/1/49, Continuously Callable @ 100 | 6,000 | 6,870 | |||||||||
4.00%, 12/1/51, Continuously Callable @ 103 | 4,000 | 4,409 | |||||||||
Series A, 4.00%, 1/1/45, Continuously Callable @ 103 | 3,000 | 3,392 | |||||||||
Series A, 4.00%, 1/1/51, Continuously Callable @ 103 | 13,265 | 14,862 | |||||||||
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Virginia Small Business Financing Authority Revenue (LOC — Bank of America Corp.), 0.08%, 7/1/30 (c) | $ | 1,650 | $ | 1,650 | |||||||
| Virginia Small Business Financing Authority Revenue (LOC — PNC Financial Services Group), Series A, 0.05%, 7/1/42, Continuously Callable @ 100 (c) | 9,025 | 9,025 | |||||||||
| Western Regional Jail Authority Revenue 5.00%, 12/1/35, Continuously Callable @ 100 | 1,540 | 1,844 | |||||||||
5.00%, 12/1/35, Pre-refunded 12/1/26 @ 100 | 1,545 | 1,879 | |||||||||
5.00%, 12/1/38, Continuously Callable @ 100 | 1,000 | 1,184 | |||||||||
5.00%, 12/1/38, Pre-refunded 12/1/26 @ 100 | 1,000 | 1,217 | |||||||||
| Winchester Economic Development Authority Revenue 5.00%, 1/1/44, Continuously Callable @ 100 | 3,250 | 3,761 | |||||||||
Series S, 5.00%, 1/1/44, Pre-refunded 1/1/24 @ 100 | 3,250 | 3,598 | |||||||||
Wise County IDA Revenue, Series A, 0.75%, 10/1/40, (Put Date 9/2/25) (h) | 2,500 | 2,513 | |||||||||
687,402 | |||||||||||
District of Columbia (2.8%): | |||||||||||
| Metropolitan Washington Airports Authority Dulles Toll Road Revenue 4.00%, 10/1/53, Continuously Callable @ 100 | 1,500 | 1,695 | |||||||||
5.00%, 10/1/53, Continuously Callable @ 100 | 4,000 | 4,083 | |||||||||
Series A, 5.00%, 10/1/44, Continuously Callable @ 100 | 1,500 | 1,842 | |||||||||
| Metropolitan Washington Airports Authority Dulles Toll Road Revenue (INS — Assured Guaranty Municipal Corp.), Series B, 10/1/30 (g) | 5,500 | 4,701 | |||||||||
| Washington Metropolitan Area Transit Authority Revenue 5.00%, 7/1/43, Continuously Callable @ 100 | 5,000 | 6,003 | |||||||||
Series A, 4.00%, 7/15/45, Continuously Callable @ 100 | 2,500 | 2,911 | |||||||||
21,235 | |||||||||||
Guam (6.2%): | |||||||||||
| Antonio B. Won Pat International Airport Authority Revenue (INS — Assured Guaranty Municipal Corp.), Series B, 5.75%, 10/1/43, Pre-refunded 10/1/23 @ 100 | 1,255 | 1,393 | |||||||||
| Guam Government Waterworks Authority Revenue 5.00%, 7/1/37, Continuously Callable @ 100 | 1,000 | 1,152 | |||||||||
5.00%, 7/1/40, Continuously Callable @ 100 | 3,250 | 3,734 | |||||||||
5.50%, 7/1/43, Pre-refunded 7/1/23 @ 100 | 4,000 | 4,367 | |||||||||
Series A, 5.00%, 7/1/35, Continuously Callable @ 100 | 2,850 | 3,118 | |||||||||
Series A, 5.00%, 1/1/50, Continuously Callable @ 100 | 1,000 | 1,190 | |||||||||
| Guam Power Authority Revenue Series A, 5.00%, 10/1/31, Continuously Callable @ 100 | 500 | 555 | |||||||||
Series A, 5.00%, 10/1/34, Continuously Callable @ 100 | 1,000 | 1,038 | |||||||||
Series A, 5.00%, 10/1/40, Continuously Callable @ 100 | 4,000 | 4,597 | |||||||||
| Guam Power Authority Revenue (INS — Assured Guaranty Municipal Corp.) Series A, 5.00%, 10/1/39, Continuously Callable @ 100 | 750 | 838 | |||||||||
Series A, 5.00%, 10/1/44, Continuously Callable @ 100 | 1,000 | 1,095 | |||||||||
| Port Authority of Guam Revenue, Series A, 5.00%, 7/1/48, Continuously Callable @ 100 | 1,500 | 1,750 | |||||||||
| Territory of Guam Revenue Series A, 5.00%, 11/1/27 | 200 | 241 | |||||||||
Series A, 5.00%, 11/1/28 | 250 | 307 | |||||||||
Series A, 5.00%, 11/1/29 | 250 | 313 | |||||||||
Series A, 5.00%, 11/1/30 | 250 | 319 | |||||||||
See notes to financial statements.
8
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A, 5.00%, 11/1/35, Continuously Callable @ 100 | $ | 1,000 | $ | 1,262 | |||||||
Series A, 5.00%, 11/1/40, Continuously Callable @ 100 | 1,000 | 1,239 | |||||||||
Series A, 5.00%, 12/1/46, Continuously Callable @ 100 | 1,250 | 1,405 | |||||||||
Series B-1, 5.00%, 1/1/42, Continuously Callable @ 100 | 1,500 | 1,517 | |||||||||
Series D, 5.00%, 11/15/39, Continuously Callable @ 100 | 2,000 | 2,247 | |||||||||
Series F, 5.00%, 1/1/31 (a) | 500 | 635 | |||||||||
Series F, 4.00%, 1/1/42, Continuously Callable @ 100 (a) | 1,000 | 1,119 | |||||||||
| Territory of Guam Revenue (LOC — Barclays Bank PLC), Series 2017-XF2510, 0.17%, 12/1/46, Callable 12/1/26 @ 100 (c) (f) | 10,870 | 10,870 | |||||||||
46,301 | |||||||||||
Total Municipal Bonds (Cost $719,691) | 754,938 | ||||||||||
Total Investments (Cost $719,691) — 101.2% | 754,938 | ||||||||||
Liabilities in excess of other assets — (1.2)% | (9,078 | ) | |||||||||
NET ASSETS — 100.00% | $ | 745,860 | |||||||||
(a) Security or portion of security purchased on a delayed-delivery and/or when-issued basis.
(b) Stepped-coupon security converts to coupon form on 7/15/23 with a rate of 4.75%.
(c) 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.
(d) All or a portion of this security has been segregated as collateral for securities purchased on a delayed-delivery and/or when-issued basis.
(e) Currently the issuer is in default with respect to interest and/or principal payments.
(f) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $16,796 (thousands) and amounted to 2.3% of net assets.
(g) Zero-coupon bond.
(h) Put Bond.
(i) Stepped-coupon security converts to coupon form on 7/15/23 with a rate of 4.88%.
(j) This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements).
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
IDA — Industrial Development Authority
LOC — Letter of Credit
PLC — Public Limited Company
See notes to financial statements.
9
| USAA Mutual Funds Trust USAA Virginia Bond Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
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.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
LOC Principal and interest payments are guaranteed by a bank letter of credit or other bank credit agreement.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
10
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Virginia Bond Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $719,691) | $ | 754,938 | |||||
Cash | 14 | ||||||
Receivables: | |||||||
Interest | 7,477 | ||||||
Capital shares issued | 151 | ||||||
From Adviser | 13 | ||||||
Prepaid expenses | 2 | ||||||
Total Assets | 762,595 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | 205 | ||||||
Investments purchased | 15,451 | ||||||
Capital shares redeemed | 695 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 197 | ||||||
Administration fees | 92 | ||||||
Custodian fees | 5 | ||||||
Transfer agent fees | 26 | ||||||
Compliance fees | — | (a) | |||||
Trustees' fees | — | (a) | |||||
| 12b-1 fees | 2 | ||||||
Other accrued expenses | 62 | ||||||
Total Liabilities | 16,735 | ||||||
Net Assets: | |||||||
Capital | 719,855 | ||||||
Total accumulated earnings/(loss) | 26,005 | ||||||
Net Assets | $ | 745,860 | |||||
Net Assets | |||||||
Fund Shares | $ | 713,549 | |||||
Institutional Shares | 13,215 | ||||||
Class A | 19,096 | ||||||
Total | $ | 745,860 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 61,320 | ||||||
Institutional Shares | 1,136 | ||||||
Class A | 1,642 | ||||||
Total | 64,098 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Fund Shares | $ | 11.64 | |||||
Institutional Shares | $ | 11.64 | |||||
Class A | $ | 11.63 | |||||
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 | $ | 11.90 | |||||
(a) Rounds to less than $1 thousand.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
11
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Virginia Bond Fund | |||||||
Investment Income: | |||||||
Interest | $ | 10,177 | |||||
Total Income | 10,177 | ||||||
Expenses: | |||||||
Investment advisory fees | 1,172 | ||||||
Administration fees — Fund Shares | 538 | ||||||
Administration fees — Institutional Shares | 6 | ||||||
Administration fees — Class A | 14 | ||||||
Sub-Administration fees | 11 | ||||||
| 12b-1 fees — Class A | 24 | ||||||
Custodian fees | 17 | ||||||
Transfer agent fees — Fund Shares | 90 | ||||||
Transfer agent fees — Institutional Shares | 6 | ||||||
Transfer agent fees — Class A | 10 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 2 | ||||||
Legal and audit fees | 27 | ||||||
State registration and filing fees | 1 | ||||||
Other expenses | 59 | ||||||
Total Expenses | 2,001 | ||||||
Expenses waived/reimbursed by Adviser | (9 | ) | |||||
Net Expenses | 1,992 | ||||||
Net Investment Income (Loss) | 8,185 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 124 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | 1,635 | ||||||
Net realized/unrealized gains (losses) on investments | 1,759 | ||||||
Change in net assets resulting from operations | $ | 9,944 | |||||
See notes to financial statements.
12
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
USAA Virginia Bond Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 8,185 | $ | 16,875 | |||||||
Net realized gains (losses) from investments | 124 | 137 | |||||||||
| Net change in unrealized appreciation/depreciation on investments | 1,635 | 21,658 | |||||||||
Change in net assets resulting from operations | 9,944 | 38,670 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (7,843 | ) | (16,365 | ) | |||||||
Institutional Shares (a) | (143 | ) | (132 | ) | |||||||
Class A | (187 | ) | (388 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (8,173 | ) | (16,885 | ) | |||||||
Change in net assets resulting from capital transactions | (123 | ) | 17,248 | ||||||||
Change in net assets | 1,648 | 39,033 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 744,212 | 705,179 | |||||||||
End of period | $ | 745,860 | $ | 744,212 | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
(continues on next page)
See notes to financial statements.
13
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands) (continued)
USAA Virginia Bond Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 26,455 | $ | 90,498 | |||||||
Distributions reinvested | 6,733 | 13,707 | |||||||||
Cost of shares redeemed | (34,420 | ) | (97,801 | ) | |||||||
Total Fund Shares | $ | (1,232 | ) | $ | 6,404 | ||||||
Institutional Shares (a) | |||||||||||
Proceeds from shares issued | $ | 1,382 | $ | 12,682 | |||||||
Distributions reinvested | 48 | 53 | |||||||||
Cost of shares redeemed | (341 | ) | (697 | ) | |||||||
Total Institutional Shares | $ | 1,089 | $ | 12,038 | |||||||
Class A | |||||||||||
Proceeds from shares issued | $ | 1,153 | $ | 22,363 | |||||||
Distributions reinvested | 179 | 375 | |||||||||
Cost of shares redeemed | (1,312 | ) | (23,932 | ) | |||||||
Total Class A | $ | 20 | $ | (1,194 | ) | ||||||
Change in net assets resulting from capital transactions | $ | (123 | ) | $ | 17,248 | ||||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 2,258 | 7,843 | |||||||||
Reinvested | 575 | 1,189 | |||||||||
Redeemed | (2,941 | ) | (8,490 | ) | |||||||
Total Fund Shares | (108 | ) | 542 | ||||||||
Institutional Shares (a) | |||||||||||
Issued | 118 | 1,098 | |||||||||
Reinvested | 4 | 5 | |||||||||
Redeemed | (29 | ) | (60 | ) | |||||||
Total Institutional Shares | 93 | 1,043 | |||||||||
Class A | |||||||||||
Issued | 99 | 1,949 | |||||||||
Reinvested | 15 | 33 | |||||||||
Redeemed | (112 | ) | (2,090 | ) | |||||||
Total Class A | 2 | (108 | ) | ||||||||
Change in Shares | (13 | ) | 1,477 | ||||||||
(a) Institutional Shares commenced operations on June 29, 2020.
See notes to financial statements.
14
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15
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 | Total Distributions | ||||||||||||||||||||||
USAA Virginia Bond Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 11.61 | 0.13 | (e) | 0.03 | 0.16 | (0.13 | ) | (0.13 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 11.26 | 0.27 | (e) | 0.35 | 0.62 | (0.27 | ) | (0.27 | ) | |||||||||||||||||
2020 | $ | 11.30 | 0.31 | (e) | (0.04 | ) | 0.27 | (0.31 | ) | (0.31 | ) | ||||||||||||||||
2019 | $ | 11.16 | 0.34 | 0.14 | 0.48 | (0.34 | ) | (0.34 | ) | ||||||||||||||||||
2018 | $ | 11.21 | 0.34 | (0.05 | ) | 0.29 | (0.34 | ) | (0.34 | ) | |||||||||||||||||
2017 | $ | 11.52 | 0.35 | (0.31 | ) | 0.04 | (0.35 | ) | (0.35 | ) | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 11.61 | 0.13 | (e) | 0.03 | 0.16 | (0.13 | ) | (0.13 | ) | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 11.46 | 0.20 | (e) | 0.15 | 0.35 | (0.20 | ) | (0.20 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 11.60 | 0.12 | (e) | 0.02 | 0.14 | (0.11 | ) | (0.11 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 11.25 | 0.24 | (e) | 0.35 | 0.59 | (0.24 | ) | (0.24 | ) | |||||||||||||||||
2020 | $ | 11.29 | 0.28 | (e) | (0.04 | ) | 0.24 | (0.28 | ) | (0.28 | ) | ||||||||||||||||
2019 | $ | 11.16 | 0.32 | 0.12 | 0.44 | (0.31 | ) | (0.31 | ) | ||||||||||||||||||
2018 | $ | 11.20 | 0.31 | (0.04 | ) | 0.27 | (0.31 | ) | (0.31 | ) | |||||||||||||||||
2017 | $ | 11.51 | 0.33 | (0.31 | ) | 0.02 | (0.33 | ) | (0.33 | ) | |||||||||||||||||
* 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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
See notes to financial statements.
16
USAA Mutual Funds Trust | Financial Highlights — continued | ||||||
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
| Redemption Fees Added to Beneficial Interests | Net Asset Value, End of Period | Total Return (Excludes Sales Charge)*(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 Virginia Bond Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | — | $ | 11.64 | 1.36 | % | 0.53 | % | 2.19 | % | 0.53 | % | $ | 713,549 | 5 | % | |||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | — | $ | 11.61 | 5.53 | % | 0.50 | % | 2.32 | % | 0.50 | % | $ | 713,075 | 28 | % | ||||||||||||||||||||
2020 | — | $ | 11.26 | 2.39 | % | 0.55 | % | 2.70 | % | 0.55 | % | $ | 685,508 | 24 | % | ||||||||||||||||||||
2019 | — | $ | 11.30 | 4.36 | % | 0.59 | % | 3.03 | % | 0.59 | % | $ | 672,191 | 9 | % | ||||||||||||||||||||
2018 | — | $ | 11.16 | 2.56 | % | 0.56 | % | 2.98 | % | 0.56 | % | $ | 666,772 | 11 | % | ||||||||||||||||||||
2017 | — | $ | 11.21 | 0.36 | % | 0.58 | % | 3.10 | % | 0.58 | % | $ | 658,452 | 13 | % | ||||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 11.64 | 1.38 | % | 0.50 | % | 2.21 | % | 0.56 | % | $ | 13,215 | 5 | % | ||||||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | — | $ | 11.61 | 3.04 | % | 0.49 | % | 2.26 | % | 0.58 | % | $ | 12,105 | 28 | % | ||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 11.63 | 1.25 | % | 0.76 | % | 1.96 | % | 0.82 | % | $ | 19,096 | 5 | % | ||||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | — | $ | 11.60 | 5.26 | % | 0.76 | % | 2.06 | % | 0.81 | % | $ | 19,032 | 28 | % | ||||||||||||||||||||
2020 | — | $ | 11.25 | 2.14 | % | 0.80 | % | 2.46 | % | 0.82 | % | $ | 19,671 | 24 | % | ||||||||||||||||||||
2019 | — | $ | 11.29 | 4.05 | % | 0.80 | % | 2.82 | % | 0.86 | % | $ | 19,439 | 9 | % | ||||||||||||||||||||
2018 | — | (g) | $ | 11.16 | 2.42 | % | 0.79 | %(h) | 2.76 | % | 0.81 | % | $ | 19,894 | 11 | % | |||||||||||||||||||
2017 | — | $ | 11.20 | 0.12 | % | 0.81 | % | 2.85 | % | 0.81 | % | $ | 25,496 | 13 | % | ||||||||||||||||||||
(e) Per share net investment income (loss) has been calculated using the average daily shares method.
(f) Commencement of operations.
(g) Amount is less than $0.005 per share.
(h) Effective October 12, 2017, USAA Asset Management Company ("AMCO") (previous Investment Adviser) voluntarily agreed to limit the annual expenses of Class A to 0.80% of Class A average daily net assets.
See notes to financial statements.
17
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Virginia Bond Fund (the "Fund"). The Fund offers three classes of shares: Fund Shares, Institutional Shares, and Class A. 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 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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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.
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USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 net asset value ("NAV") to be more reliable than it otherwise would be.
A summary of the valuations as of September 30, 2021, 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 | ||||||||||||||||
Municipal Bonds | $ | — | $ | 752,465 | $ | 2,473 | $ | 754,938 | |||||||||||
Total | $ | — | $ | 752,465 | $ | 2,473 | $ | 754,938 | |||||||||||
As of September 30, 2021, there were no significant Level 3 holdings in the fair value hierarchy. For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
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 on the Schedule of Portfolio Investments.
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
19
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 March 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.
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 an 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, printing fees, and 12b-1 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 September 30, 2021, 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) | |||||||||
| $ | 1,800 | $ | 900 | $ | — | ||||||
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 63,815 | $ | 34,173 | ||||
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USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned 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 annualized rate of 0.50% of the first $50 million of the Fund's average daily net assets, 0.40% of that portion of the Fund's average daily net assets over $50 million but not over $100 million, and 0.30% of that portion of the Fund's average daily net assets over $100 million. Amounts incurred and paid to VCM for the six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper Virginia Municipal Debt Funds Index. The Lipper Virginia Municipal Debt Funds Index tracks the total return performance of the largest funds within the Lipper Virginia Municipal Debt Funds category.
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) | ||||||
| +/- 20 to 50 | +/- 4 | ||||||
| +/- 51 to 100 | +/- 5 | ||||||
| +/- 101 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper Virginia Municipal Debt Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $(24), less than $(1), and $(4) for Fund Shares, Institutional Shares, and Class A, in thousands, respectively. Performance adjustments were less than (0.01)%, less than (0.01)%, and (0.04)% for Fund Shares, Institutional Shares,
21
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
and Class A, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.15%, 0.10%, and 0.15%, which is based on the Fund's average daily net assets of the Fund Shares, Institutional Shares, and Class A, respectively. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares based on an annual charge of $25.50 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 and Class A are paid monthly based on a fee accrued daily at an annualized rate of 0.10% and 0.10%, respectively, of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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.
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
22
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
0.25% of the average daily net assets of Class A. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activity primarily intended to result in the sale of Class A. Amounts incurred and paid to the Distributor for the six months ended September 30, 2021, are reflected on the Statement of Operations as 12b-1 fees.
In addition, the Distributor is entitled to receive commissions on sales of Class A. For the six months ended September 30, 2021, the Distributor received approximately less than $1 thousand from commissions earned on sales of Class A.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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. Acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 0.54%, 0.50%, and 0.80% for Fund Shares, Institutional Shares, and Class A, respectively.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2023 | Expires 2024 | Expires 2025 | Total | ||||||||||||
$ | 1 | $ | 15 | $ | 9 | $ | 25 | ||||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
State-Specific Risk — Because the Fund invests primarily in Virginia tax-exempt securities, the Fund is more susceptible to adverse economic, political, and regulatory changes affecting tax-exempt securities issuers in Virginia, such as changes to state laws and policies, economic issues that affect critical industries, large employers, or weakened real estate prices, and existing debt levels and state
23
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
budget priorities. In addition, the economic affects regarding COVID-19 may exacerbate some or all of these risks. The Fund's performance will be affected by the fiscal and economic health of Virginia and its municipalities and their ability to issue and repay debt. The Fund is more vulnerable to unfavorable developments in Virginia than are funds that invest in municipal securities of multiple states.
Debt Securities 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.
Other factors that may affect the value of debt securities include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.
Credit Risk — 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.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors. Bond prices generally are linked to the prevailing market interest rates. In general, when interest rates rise, bond prices fall; conversely, when interest rates fall, bond prices rise. The price volatility of a bond also depends on its duration. Generally, the longer the duration of a bond, the greater is its sensitivity to interest rates. To compensate investors for this higher interest rate risk, bonds with longer durations generally offer higher yields than bonds with shorter durations. The ability of an issuer of a debt security to repay principal prior to a security's maturity can increase the security's sensitivity to interest rate changes.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
LIBOR Discontinuation Risk — 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. 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. For U.S. dollar LIBOR, however, the relevant date may be deferred to June 30, 2023, for the most common tenors (overnight and one, three, six, and 12 months). As to those tenors, the LIBOR administrator has published a consultation regarding its intention to cease publication of U.S. dollar LIBOR as of June 30, 2023, (instead of December 31, 2021, as previously expected), apparently based on continued rate submissions from banks. It is
24
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
expected that there will 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. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, or any particular currency and tenor, will continue to be published until any particular date, and it appears highly likely that LIBOR will be discontinued or modified after December 31, 2021, or June 30, 2023, depending on the currency and tenor. 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:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The Fund did not utilize or participate in the Facility during the six months ended September 30, 2021.
25
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
7. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 945 | $ | 8,609 | $ | 9,554 | ||||||
26
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,013.60 | $ | 1,022.41 | $ | 2.68 | $ | 2.69 | 0.53 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,013.80 | 1,022.56 | 2.52 | 2.54 | 0.50 | % | ||||||||||||||||||||
Class A | 1,000.00 | 1,012.50 | 1,021.26 | 3.83 | 3.85 | 0.76 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
27
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 | ||||||
39604-1121
September 30, 2021
Semi Annual Report
USAA Tax Exempt Money Market Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 8 | ||||||
Statement of Operations | 9 | ||||||
Statements of Changes in Net Assets | 10 | ||||||
Financial Highlights | 12 | ||||||
Notes to Financial Statements | 14 | ||||||
Supplemental Information | 20 | ||||||
Proxy Voting and Portfolio Holdings Information | 20 | ||||||
Expense Example | 20 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Tax Exempt Money Market Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide investors with interest income that is exempt from federal income tax and has a further objective of preserving capital and maintaining liquidity.
Top 10 Industries
September 30, 2021
(% of Net Assets)
Education | 24.6 | % | |||||
Electric Utilities | 17.9 | % | |||||
Steel | 7.6 | % | |||||
Hospital | 7.2 | % | |||||
Nursing/CCRC | 6.8 | % | |||||
Community Service | 5.8 | % | |||||
Buildings | 5.2 | % | |||||
Oil & Gas Refining & Marketing | 4.6 | % | |||||
Pharmaceuticals | 3.9 | % | |||||
Agricultural Products | 3.8 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA Tax Exempt Money Market Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Municipal Bonds (97.0%) | |||||||||||
Alabama (5.8%): | |||||||||||
| Columbia Industrial Development Board Revenue, 0.11%, 12/1/37, Continuously Callable @100 (a) | $ | 10,000 | $ | 10,000 | |||||||
| Mobile County IDA Revenue (LOC — Swedbank AB), Series B, 0.09%, 7/1/40, Continuously Callable @100 (a) | 15,000 | 15,000 | |||||||||
| West Jefferson Industrial Development Board Revenue, 0.13%, 6/1/28, Continuously Callable @100 (a) | 5,190 | 5,190 | |||||||||
30,190 | |||||||||||
California (1.1%): | |||||||||||
| City of Los Angeles Certificate of Participation (LOC — U.S. Bancorp), Series A, 0.12%, 8/1/35, Continuously Callable @100 (a) | 5,885 | 5,885 | |||||||||
Florida (4.1%): | |||||||||||
County of Escambia Revenue, 0.09%, 7/1/22 (a) | 15,500 | 15,500 | |||||||||
County of St. Lucie Revenue, 0.06%, 9/1/28, Continuously Callable @100 (a) | 5,610 | 5,610 | |||||||||
21,110 | |||||||||||
Georgia (1.6%): | |||||||||||
| Appling County Development Authority Revenue 0.11%, 9/1/29, Continuously Callable @100 (a) | 800 | 800 | |||||||||
0.11%, 9/1/41, Continuously Callable @100 (a) | 5,100 | 5,100 | |||||||||
| The Burke County Development Authority Revenue, Series 1, 0.11%, 7/1/49, Continuously Callable @100 (a) | 2,175 | 2,175 | |||||||||
8,075 | |||||||||||
Illinois (5.6%): | |||||||||||
| Illinois Finance Authority Revenue (LOC — Huntington National Bank), 0.16%, 10/1/33, Continuously Callable @100 (a) | 1,765 | 1,765 | |||||||||
| Illinois State Educational Facilities Revenue (LOC — Huntington National Bank), Series A, 0.14%, 10/1/32, Continuously Callable @100 (a) | 14,165 | 14,165 | |||||||||
| Metropolitan Pier & Exposition Authority Revenue (LIQ — Barclays Bank PLC), Series 2015-XF1045, 0.09%, 6/15/52, Callable 6/15/22 @ 100 (a) (b) | 13,155 | 13,155 | |||||||||
29,085 | |||||||||||
Indiana (2.5%): | |||||||||||
| City of Berne Revenue (LOC — Federal Home Loan Bank of Indianapolis), 0.11%, 10/1/33, Continuously Callable @100 (a) | 4,505 | 4,505 | |||||||||
| City of Evansville Revenue (LOC — Fifth Third Bank), 0.07%, 1/1/25, Callable 10/15/21 @ 100 (a) | 1,905 | 1,905 | |||||||||
| Indiana Finance Authority Revenue (LOC — Federal Home Loan Bank of Indianapolis), 0.13%, 7/1/29, Continuously Callable @100 (a) | 6,210 | 6,210 | |||||||||
12,620 | |||||||||||
Iowa (3.8%): | |||||||||||
| Iowa Finance Authority Revenue 0.09%, 6/1/39, Continuously Callable @100 (a) | 12,600 | 12,600 | |||||||||
Series B, 0.09%, 9/1/36, Continuously Callable @100 (a) | 6,763 | 6,763 | |||||||||
19,363 | |||||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Tax Exempt Money Market Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Kansas (4.6%): | |||||||||||
| City of Burlington Revenue 0.12%, 9/1/35, Continuously Callable @100 (a) | $ | 8,250 | $ | 8,250 | |||||||
Series B, 0.12%, 9/1/35, Continuously Callable @100 (a) | 4,200 | 4,200 | |||||||||
City of St. Marys Revenue, 0.09%, 4/15/32, Continuously Callable @100 (a) | 11,500 | 11,500 | |||||||||
23,950 | |||||||||||
Kentucky (2.4%): | |||||||||||
| City of Georgetown Revenue (LOC — Fifth Third Bank), 0.07%, 11/15/29, Callable 10/15/21 @ 100 (a) | 10,820 | 10,820 | |||||||||
| Lexington-Fayette Urban County Government Revenue (LOC — Federal Home Loan Bank of Cincinnati), 0.19%, 12/1/27, Callable 10/14/21 @ 100 (a) | 1,635 | 1,635 | |||||||||
12,455 | |||||||||||
Louisiana (6.1%): | |||||||||||
| City of New Orleans Revenue (LOC — Capital One, N.A.), 0.23%, 8/1/24, Continuously Callable @100 (a) | 2,475 | 2,475 | |||||||||
| Parish of St. James Revenue Series A-1, 0.09%, 11/1/40, Continuously Callable @100 (a) | 1,485 | 1,485 | |||||||||
Series B-1, 0.09%, 11/1/40, Continuously Callable @100 (a) | 22,650 | 22,650 | |||||||||
| St. Tammany Corp. Revenue (LOC — Federal Home Loan Bank of Dallas), 0.08%, 3/1/33, Continuously Callable @100 (a) | 4,900 | 4,900 | |||||||||
31,510 | |||||||||||
Maryland (1.6%): | |||||||||||
| Town of Williamsport Revenue (LOC — Manufacturers & Traders Trust Co.), 0.15%, 11/1/37 (a) | 8,155 | 8,155 | |||||||||
Michigan (0.4%): | |||||||||||
| Michigan State Strategic Fund Revenue (LOC — Fifth Third Bank), 0.11%, 3/1/37, Continuously Callable @100 (a) | 2,100 | 2,100 | |||||||||
Mississippi (0.7%): | |||||||||||
| Mississippi Business Finance Corp. Revenue (LOC — Federal Home Loan Bank of Dallas), 0.08%, 3/1/33, Continuously Callable @100 (a) | 3,455 | 3,455 | |||||||||
Missouri (3.9%): | |||||||||||
| Jackson County IDA Revenue (LOC — Commerce Bank, N.A.), 0.08%, 7/1/25, Continuously Callable @100 (a) | 20,000 | 20,000 | |||||||||
Nebraska (2.7%): | |||||||||||
| County of Custer Revenue (LOC — U.S. Bancorp), 0.09%, 12/1/36, Callable 12/2/21 @ 100 (a) | 11,000 | 11,000 | |||||||||
| County of Washington Revenue, Series B, 0.08%, 12/1/40, Continuously Callable @100 (a) | 3,000 | 3,000 | |||||||||
14,000 | |||||||||||
New Hampshire (3.9%): | |||||||||||
| New Hampshire Business Finance Authority Revenue (LOC — Landesbank Hessen-Thuringen), 0.09%, 9/1/30, Continuously Callable @100 (a) | 19,990 | 19,990 | |||||||||
New Mexico (1.0%): | |||||||||||
| New Mexico Hospital Equipment Loan Council Revenue (LOC — Fifth Third Bank), 0.11%, 7/1/25, Continuously Callable @100 (a) | 5,000 | 5,000 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA Tax Exempt Money Market Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
New York (20.9%): | |||||||||||
Allegany-Limestone Central School District, GO, 1.00%, 6/23/22 | $ | 5,000 | $ | 5,027 | |||||||
Binghamton City School District, GO, 1.00%, 6/24/22 | 5,000 | 5,028 | |||||||||
| Build NYC Resource Corp. Revenue (LOC — Toronto-Dominion Bank), 0.22%, 12/1/45, Continuously Callable @100 (a) | 5,355 | 5,355 | |||||||||
Canandaigua City School District, GO, 1.00%, 6/23/22 | 6,000 | 6,036 | |||||||||
| County of Chautauqua Industrial Development Agency Revenue (LOC — Citizens Financial Group), Series A, 0.10%, 8/1/27, Continuously Callable @100 (a) | 1,365 | 1,365 | |||||||||
County of St. Lawrence, GO, 1.00%, 7/7/22 | 6,000 | 6,036 | |||||||||
Coxsackie-Athens Central School District, GO, 1.00%, 6/17/22 | 6,000 | 6,033 | |||||||||
DeRuyter Central School District, GO, Series A, 1.00%, 6/30/22 | 2,000 | 2,012 | |||||||||
Fillmore Central School District, GO, 1.00%, 6/23/22 | 5,000 | 5,027 | |||||||||
Greenport Union Free School District, GO, 2.00%, 6/28/22 | 5,000 | 5,066 | |||||||||
| Guilderland Industrial Development Agency Revenue (LOC — Key Bank, N.A.), Series A, 0.14%, 7/1/32, Continuously Callable @100 (a) | 2,705 | 2,705 | |||||||||
Lansing Central School District, GO, 1.00%, 6/28/22 | 4,817 | 4,846 | |||||||||
Lewiston-Porter Central School District, GO, Series A, 1.00%, 7/13/22 | 4,850 | 4,879 | |||||||||
Liverpool Central School District, GO, 1.00%, 9/23/22 | 4,048 | 4,081 | |||||||||
| New York City Capital Resources Corp. Revenue (LOC — Manufacturers & Traders Trust Co.), 0.27%, 12/1/40, Continuously Callable @100 (a) | 7,500 | 7,500 | |||||||||
| New York Liberty Development Corp. Revenue (LIQ — Royal Bank of Canada), Series 2016-ZF0464, 0.09%, 11/15/51 (a)(b) | 13,000 | 13,000 | |||||||||
| Oneida County Industrial Development Agency Revenue (LOC — Citizens Financial Group), 0.15%, 7/1/37, Continuously Callable @100 (a) | 1,570 | 1,570 | |||||||||
| Onondaga County Industrial Development Agency Revenue (LOC — Manufacturers & Traders Trust Co.), 0.15%, 12/1/31, Continuously Callable @100 (a) | 5,210 | 5,210 | |||||||||
| Ramapo Housing Authority Revenue (LOC — Manufacturers & Traders Trust Co.), 0.15%, 12/1/29, Continuously Callable @100 (a) | 8,285 | 8,285 | |||||||||
| St. Lawrence County Industrial Development Agency Revenue (LOC — Citizens Financial Group), 0.25%, 7/1/37 (a) | 1,795 | 1,795 | |||||||||
Walton Central School District, GO, 1.00%, 6/29/22 | 3,575 | 3,595 | |||||||||
West Genesee Central School District, GO, Series B, 1.00%, 6/29/22 | 4,300 | 4,325 | |||||||||
108,776 | |||||||||||
Ohio (0.4%): | |||||||||||
County of Hamilton Revenue (LOC — Fifth Third Bank), 0.07%, 12/1/24 (a) | 2,000 | 2,000 | |||||||||
Oklahoma (5.6%): | |||||||||||
| Edmond Economic Development Authority Revenue (LOC — Bank of Oklahoma, N.A.), Series A, 0.09%, 6/1/31, Callable 11/1/21 @ 100 (a) | 4,900 | 4,900 | |||||||||
| Garfield County Industrial Authority Revenue, Series A, 0.13%, 1/1/25, Callable 11/3/21 @ 100 (a) | 22,000 | 22,000 | |||||||||
| Muskogee Industrial Trust Revenue, Series A, 0.13%, 6/1/27, Continuously Callable @100 (a) | 2,000 | 2,000 | |||||||||
28,900 | |||||||||||
Rhode Island (0.7%): | |||||||||||
| Rhode Island Commerce Corp. Revenue (LOC — Citizens Financial Group), 0.12%, 3/1/38, Callable 11/1/21 @ 100 (a) | 3,405 | 3,405 | |||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA Tax Exempt Money Market Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Tennessee (6.3%): | |||||||||||
| Chattanooga Health Educational & Housing Facility Board Revenue, Series C, 0.09%, 5/1/39, Continuously Callable @100 (a) | $ | 24,200 | $ | 24,200 | |||||||
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue (LOC — Fifth Third Bank), 0.07%, 12/1/24, Callable 10/15/21 @ 100 (a) | 8,500 | 8,500 | |||||||||
32,700 | |||||||||||
Texas (7.7%): | |||||||||||
| Port of Arthur Navigation District Industrial Development Corp. Revenue, Series A, 0.07%, 12/1/40, Callable 11/1/21 @ 100 (a) | 16,000 | 16,000 | |||||||||
| Port of Port Arthur Navigation District Revenue Series A, 0.12%, 4/1/40, Continuously Callable @100 (a) | 7,350 | 7,350 | |||||||||
Series B, 0.12%, 4/1/40, Continuously Callable @100 (a) | 16,200 | 16,200 | |||||||||
39,550 | |||||||||||
Utah (2.0%): | |||||||||||
| Utah Housing Corp. Revenue (LIQ — Deutsche Bank A.G.), Series 2019-XF1081, 0.30%, 3/1/62, Callable 2/1/31 @ 100 (a)(b) | 10,000 | 10,000 | |||||||||
Washington (1.6%): | |||||||||||
| Washington Higher Education Facilities Authority Revenue, 0.08%, 10/1/31, Callable 11/3/21 @ 100 (a) | 8,025 | 8,025 | |||||||||
Total Municipal Bonds (Cost $500,299) | 500,299 | ||||||||||
Commercial Paper (2.9%) | |||||||||||
University of Texas System, 0.08%, 12/9/21 | 15,000 | 15,000 | |||||||||
Total Commercial Paper (Cost $15,000) | 15,000 | ||||||||||
Total Investments (Cost $515,299) — 99.9% | 515,299 | ||||||||||
Other assets in excess of liabilities — 0.1% | 693 | ||||||||||
NET ASSETS — 100.00% | $ | 515,992 | |||||||||
(a) 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.
(b) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $36,155 (thousands) and amounted to 7.0% of net assets.
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
IDA — Industrial Development Authority
LOC — Letter of Credit
PLC — Public Limited Company
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA Tax Exempt Money Market Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
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.
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
LOC Principal and interest payments are guaranteed by a bank letter of credit or other bank credit agreement.
See notes to financial statements.
7
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Tax Exempt Money Market Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $515,299) | $ | 515,299 | |||||
Cash | 309 | ||||||
Receivables: | |||||||
Interest | 181 | ||||||
Capital shares issued | 246 | ||||||
From Adviser | 434 | ||||||
Prepaid expenses | 25 | ||||||
Total Assets | 516,494 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | — | (a) | |||||
Capital shares redeemed | 214 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 120 | ||||||
Administration fees | 43 | ||||||
Custodian fees | 8 | ||||||
Transfer agent fees | 64 | ||||||
Compliance fees | — | (a) | |||||
Trustees' fees | — | (a) | |||||
Other accrued expenses | 53 | ||||||
Total Liabilities | 502 | ||||||
Net Assets: | |||||||
Capital | 515,989 | ||||||
Total accumulated earnings/(loss) | 3 | ||||||
Net Assets | $ | 515,992 | |||||
Shares (unlimited number of shares authorized with no par value): | 515,981 | ||||||
Net asset value, offering and redemption price per share: (b) | $ | 1.00 | |||||
(a) Rounds to less than $1 thousand.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
8
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Tax Exempt Money Market Fund | |||||||
Investment Income: | |||||||
Interest | $ | 407 | |||||
Total Income | 407 | ||||||
Expenses: | |||||||
Investment advisory fees | 758 | ||||||
Administration fees | 271 | ||||||
Sub-Administration fees | 6 | ||||||
Custodian fees | 9 | ||||||
Transfer agent fees | 406 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 2 | ||||||
Legal and audit fees | 25 | ||||||
State registration and filing fees | 26 | ||||||
Other expenses | 53 | ||||||
Total Expenses | 1,580 | ||||||
Expenses waived/reimbursed by Adviser | (1,200 | ) | |||||
Net Expenses | 380 | ||||||
Net Investment Income | 27 | ||||||
Realized Gains from Investments: | |||||||
Net realized gains from investment securities | 4 | ||||||
Net realized gains on investments | 4 | ||||||
Change in net assets resulting from operations | $ | 31 | |||||
See notes to financial statements.
9
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
| USAA Tax Exempt Money Market Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income | $ | 27 | $ | 767 | |||||||
Net realized gains from investments | 4 | — | |||||||||
Change in net assets resulting from operations | 31 | 767 | |||||||||
Change in net assets resulting from distributions to shareholders | (27 | ) | (988 | ) | |||||||
Change in net assets resulting from capital transactions | (46,027 | ) | (783,392 | ) | |||||||
Change in net assets | (46,023 | ) | (783,613 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 562,015 | 1,345,628 | |||||||||
End of period | $ | 515,992 | $ | 562,015 | |||||||
Capital Transactions: | |||||||||||
Proceeds from shares issued | $ | 56,664 | $ | 268,164 | |||||||
Distributions reinvested | 26 | 967 | |||||||||
Cost of shares redeemed | (102,717 | ) | (1,052,523 | ) | |||||||
Change in net assets resulting from capital transactions | $ | (46,027 | ) | $ | (783,392 | ) | |||||
Share Transactions: | |||||||||||
Issued | 56,664 | 268,164 | |||||||||
Reinvested | 26 | 967 | |||||||||
Redeemed | (102,717 | ) | (1,052,523 | ) | |||||||
Change in Shares | (46,027 | ) | (783,392 | ) | |||||||
See notes to financial statements.
10
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11
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 | Net Realized and Unrealized Gains on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains From Investments | ||||||||||||||||||||||
USAA Tax Exempt Money Market Fund | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 1.00 | — | (d)(e) | — | (e) | — | (e) | — | (e) | — | ||||||||||||||||
| Year Ended March 31: 2021 | $ | 1.00 | — | (d)(e) | — | — | (e) | — | (e) | — | (e) | ||||||||||||||||
2020 | $ | 1.00 | 0.01 | (d) | — | (e) | 0.01 | (0.01 | ) | — | |||||||||||||||||
2019 | $ | 1.00 | 0.01 | — | (e) | 0.01 | (0.01 | ) | — | ||||||||||||||||||
2018 | $ | 1.00 | 0.01 | — | (e) | 0.01 | (0.01 | ) | — | ||||||||||||||||||
2017 | $ | 1.00 | — | (e) | — | (e) | — | (e) | — | (e) | — | (e) | |||||||||||||||
* 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 period beginning July 1, 2019, and in effect through June 30, 2023, instead of coinciding with the Fund's fiscal year end. Details of the current contractual expense limitation in effect can be found in Note 3 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) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
(d) Per share net investment income has been calculated using the average daily shares method.
(e) Amount is less than $0.005 per share.
(f) Prior to August 1, 2017, USAA Asset Management Company ("AMCO") (previous Investment Adviser) voluntarily agreed, on a temporary basis, to reimburse management, administrative, or other fees to limit the Fund's expenses and attempt to prevent a negative yield.
See notes to financial statements.
12
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(b) | Gross Expenses(b)(c) | Net Assets, End of Period (000's) | |||||||||||||||||||||||||
USAA Tax Exempt Money Market Fund | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | — | (e) | $ | 1.00 | 0.01 | % | 0.14 | % | 0.01 | % | 0.58 | % | $ | 515,992 | |||||||||||||||||
| Year Ended March 31: 2021 | — | (e) | $ | 1.00 | 0.10 | % | 0.35 | % | 0.11 | % | 0.57 | % | $ | 562,015 | |||||||||||||||||
2020 | (0.01 | ) | $ | 1.00 | 1.05 | % | 0.56 | % | 1.04 | % | 0.56 | % | $ | 1,345,628 | |||||||||||||||||
2019 | (0.01 | ) | $ | 1.00 | 1.05 | % | 0.56 | % | 1.04 | % | 0.56 | % | $ | 1,598,214 | |||||||||||||||||
2018 | (0.01 | ) | $ | 1.00 | 0.51 | %(f) | 0.56 | %(f) | 0.50 | % | 0.56 | % | $ | 1,761,649 | |||||||||||||||||
2017 | — | (e) | $ | 1.00 | 0.23 | % | 0.54 | % | 0.11 | % | 0.58 | % | $ | 2,007,091 | |||||||||||||||||
See notes to financial statements.
13
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Tax Exempt Money Market Fund (the "Fund"). The Fund is classified as diversified under the 1940 Act.
The Fund operates as a retail money market fund in compliance with the requirements of Rule 2a-7 under the 1940 Act; and as a retail money market fund, shares of the Fund are available for sale only to accounts that are beneficially owned by natural persons.
The Fund has adopted policies and procedures permitting the Board of Trustees (the "Board") of the Fund to impose a liquidity fee or to temporarily suspend redemptions from the Fund (a "redemption gate") if the Fund's weekly liquid assets fall below specific thresholds, such as during times of market stress. The imposition of a liquidity fee would reduce the amount you would receive upon redemption of your shares of the Fund. The imposition of a redemption gate would temporarily delay your ability to redeem your investments in the Fund.
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 inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
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.)
14
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
• Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the Board's oversight, the Committee administers and oversees the Fund's valuation policies and procedures, which are approved by the Board.
All securities held in the Fund are short-term debt securities, which are valued pursuant to Rule 2a-7 under the 1940 Act. This method values a security at its purchase price, and thereafter, assumes a constant amortization to maturity of any premiums or discounts. Securities for which amortized cost valuations are considered unreliable or for whose values have been materially affected by a significant event are valued in good faith, at fair value, using methods determined by the Committee, under procedures to stabilize net assets and valuation procedures approved by the Board.
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 March 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.
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 an affiliated trust based upon net assets or another appropriate basis.
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
15
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
the six months ended September 30, 2021, 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) | |||||||||
| $ | 43,250 | $ | 31,700 | $ | — | ||||||
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
3. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned subsidiary of Victory Capital Holdings, Inc., a publicly traded Delaware corporation, and a wholly owned direct subsidiary of Victory Capital Operating, LLC.
The Fund's Investment Adviser fee is accrued daily and paid monthly at an annualized rate of 0.28% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the six months ended September 30, 2021, 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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.10%, which is based on the Fund's average daily net assets of the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
16
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. Transfer agent's fees for the Fund are paid monthly based on a fee accrued daily at an annualized rate of 0.15% of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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, and receives no fee or other compensation for these services.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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 the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, 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 September 30, 2021, the expense limit (excluding voluntary waivers) was 0.56%.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
In addition, the Adviser agreed to further reimburse fees in excess of the Fund's expense limit agreement of 0.56%. These voluntary reductions, to the extent necessary, are to maintain a certain minimum net yield of the Fund. Under this agreement to reimburse additional fees, 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, to the extent any repayments would not cause the Fund's net yield to fall below the Fund's minimum yield at the time of: (a) the original waiver or expense reimbursement; or (b) the expense limit in effect at the time of the extra waiver.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
Expires 2023 | Expires 2024 | Expires 2025 | Total | ||||||||||||
$ | 19 | $ | 1,557 | $ | 1,200 | $ | 2,776 | ||||||||
17
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
4. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Stable Net Asset Value Risk — You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Credit Risk — Credit risk is expected to be low for the Fund because it invests primarily in securities that are considered to be of high quality. However, there is the possibility that an issuer will fail to make timely interest and principal payments on its securities or that negative perceptions of the issuer's ability to make such payments will cause the price of that security to decline.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
5. Borrowing:
Line of Credit:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
18
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
6. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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 March 31, 2022.
As of the tax year ended March 31, 2021, the Fund had no capital loss carryforwards, for the federal income tax purposes.
19
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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 Fund makes available on VCM.com a complete list of portfolio holdings no sooner than 5 business days after the end of each month. Form N-MFP is available on the SEC's website at www.sec.gov.
Expense Example
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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||
| $ | 1,000.00 | $ | 1,000.10 | $ | 1,024.37 | $ | 0.70 | $ | 0.71 | 0.14 | % | ||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
20
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 | ||||||
39598-1121
September 30, 2021
Semi Annual Report
USAA Target Managed Allocation Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 5 | ||||||
Statement of Operations | 6 | ||||||
Statements of Changes in Net Assets | 7 | ||||||
Financial Highlights | 8 | ||||||
Notes to Financial Statements | 10 | ||||||
Supplemental Information | 19 | ||||||
Proxy Voting and Portfolio Holdings Information | 19 | ||||||
Expense Example | 19 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Target Managed Allocation Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to maximize total return primarily through capital appreciation.
Asset Allocation*:
September 30, 2021
(% of Net Assets)
* Does not include futures contracts, money market instruments, 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%.
2
| USAA Mutual Funds Trust USAA Target Managed Allocation Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares | Value | |||||||||
Exchange-Traded Funds (99.0%) | |||||||||||
iShares Core U.S. REIT ETF (a) (b) | 625,986 | $ | 36,714 | ||||||||
iShares MSCI Canada ETF | 2,771,357 | 100,600 | |||||||||
JPMorgan BetaBuilders Canada ETF (a) | 360,675 | 22,705 | |||||||||
JPMorgan BetaBuilders MSCI U.S. REIT ETF | 108,649 | 10,448 | |||||||||
U.S. Oil Fund LP (a) (c) | 404,444 | 21,258 | |||||||||
Vanguard FTSE All-World ex-U.S. ETF | 96,063 | 5,856 | |||||||||
Vanguard Real Estate ETF (a) | 410,625 | 41,793 | |||||||||
Vanguard S&P 500 ETF (b) | 364,743 | 143,855 | |||||||||
Vanguard Total Stock Market ETF (b) | 620,260 | 137,735 | |||||||||
Total Exchange-Traded Funds (Cost $505,488) | 520,964 | ||||||||||
Collateral for Securities Loaned^ (6.3%) | |||||||||||
Goldman Sachs Financial Square Government Fund Institutional Shares, 0.03% (d) | 1,715,302 | 1,715 | |||||||||
HSBC U.S. Government Money Market Fund I Shares, 0.03% (d) | 23,695,166 | 23,695 | |||||||||
| State Street Institutional U.S. Government Money Market Fund Institutional Shares, 0.03% (d) | 7,742,702 | 7,743 | |||||||||
Total Collateral for Securities Loaned (Cost $33,153) | 33,153 | ||||||||||
Total Investments (Cost $538,641) — 105.3% | 554,117 | ||||||||||
Liabilities in excess of other assets — (5.3)% | (28,096 | ) | |||||||||
NET ASSETS — 100.00% | $ | 526,021 | |||||||||
At September 30, 2021, the Fund's investments in foreign securities were 24.5% of net assets.
^ Purchased with cash collateral from securities on loan.
(a) All or a portion of this security is on loan.
(b) All or a portion of this security has been segregated as collateral for derivative instruments.
(c) Non-income producing security.
(d) Rate disclosed is the daily yield on September 30, 2021.
ETF — Exchange-Traded Fund
LP — Limited Partnership
REIT — Real Estate Investment Trust
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Target Managed Allocation Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
Futures Contracts Purchased | |||||||||||||||||||||||
(Amounts not in thousands) | |||||||||||||||||||||||
| Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||
E-Mini S&P 500 Futures | 443 | 12/17/21 | $ | 98,542,613 | $ | 95,195,163 | $ | (3,347,450 | ) | ||||||||||||||
| S&P/Toronto Stock Exchange 60 Index Futures | 205 | 12/16/21 | 39,716,275 | 38,724,021 | (954,867 | ) | |||||||||||||||||
Swiss Market Index Futures | 289 | 12/17/21 | 37,786,523 | 35,980,779 | (1,430,004 | ) | |||||||||||||||||
$ | (5,732,321 | ) | |||||||||||||||||||||
Futures Contracts Sold | |||||||||||||||||||||||
(Amounts not in thousands) | |||||||||||||||||||||||
| Number of Contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||
E-Mini Russell 2000 Index Futures | 466 | 12/17/21 | $ | 51,786,422 | $ | 51,278,640 | $ | 507,782 | |||||||||||||||
Euro Stoxx 50 Futures | 1,361 | 12/17/21 | 66,706,088 | 63,808,944 | 1,588,838 | ||||||||||||||||||
Tokyo Price Index Futures | 314 | 12/09/21 | 58,520,899 | 57,294,842 | 713,598 | ||||||||||||||||||
$ | 2,810,218 | ||||||||||||||||||||||
Total unrealized appreciation | $ | 2,810,218 | |||||||||||||||||||||
Total unrealized depreciation | (5,732,321 | ) | |||||||||||||||||||||
Total net unrealized appreciation (depreciation) | $ | (2,922,103 | ) | ||||||||||||||||||||
See notes to financial statements.
4
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Target Managed Allocation Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $538,641) | $ | 554,117 | (a) | ||||
Cash | 1,852 | ||||||
Deposit with brokers for futures contracts | 3,375 | ||||||
Receivables: | |||||||
Interest and dividends | 669 | ||||||
Variation margin on open futures contracts | 934 | ||||||
From Adviser | 4 | ||||||
Prepaid expenses | 1 | ||||||
Total Assets | 560,952 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Collateral received on loaned securities | 33,153 | ||||||
Variation margin on open futures contracts | 1,461 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 226 | ||||||
Administration fees | 23 | ||||||
Custodian fees | 3 | ||||||
Transfer agent fees | 23 | ||||||
Compliance fees | — | (b) | |||||
Trustees' fees | — | (b) | |||||
Other accrued expenses | 42 | ||||||
Total Liabilities | 34,931 | ||||||
Net Assets: | |||||||
Capital | 390,958 | ||||||
Total accumulated earnings/(loss) | 135,063 | ||||||
Net Assets | $ | 526,021 | |||||
Shares (unlimited number of shares authorized with no par value): | 41,315 | ||||||
Net asset value, offering and redemption price per share: (c) | $ | 12.73 | |||||
(a) Includes $32,113 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.
5
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Target Managed Allocation Fund | |||||||
Investment Income: | |||||||
Dividends | $ | 4,678 | |||||
Securities lending (net of fees) | 117 | ||||||
Total Income | 4,795 | ||||||
Expenses: | |||||||
Investment advisory fees | 1,377 | ||||||
Administration fees | 138 | ||||||
Sub-Administration fees | 10 | ||||||
Custodian fees | 12 | ||||||
Transfer agent fees | 138 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 2 | ||||||
Legal and audit fees | 22 | ||||||
State registration and filing fees | 1 | ||||||
Interfund lending fees | 2 | ||||||
Interest fees | 36 | ||||||
Other expenses | 34 | ||||||
Total Expenses | 1,796 | ||||||
Net Investment Income (Loss) | 2,999 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 66,054 | ||||||
Net realized gains (losses) from foreign currency transactions | 85 | ||||||
Net realized gains (losses) from futures contracts | 5,923 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | (47,052 | ) | |||||
| Net change in unrealized appreciation/depreciation on foreign currency translations | (234 | ) | |||||
Net change in unrealized appreciation/depreciation on futures contracts | (5,465 | ) | |||||
Net realized/unrealized gains (losses) on investments | 19,311 | ||||||
Change in net assets resulting from operations | $ | 22,310 | |||||
See notes to financial statements.
6
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
| USAA Target Managed Allocation Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 2,999 | $ | 4,877 | |||||||
Net realized gains (losses) from investments | 72,062 | 81,493 | |||||||||
| Net change in unrealized appreciation/depreciation on investments | (52,751 | ) | 96,986 | ||||||||
Change in net assets resulting from operations | 22,310 | 183,356 | |||||||||
Change in net assets resulting from distributions to shareholders | — | (30,747 | ) | ||||||||
Change in net assets resulting from capital transactions | (25,902 | ) | (69,612 | ) | |||||||
Change in net assets | (3,592 | ) | 82,997 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 529,613 | 446,616 | |||||||||
End of period | $ | 526,021 | $ | 529,613 | |||||||
Capital Transactions: | |||||||||||
Proceeds from shares issued | $ | — | $ | 1,065 | |||||||
Distributions reinvested | — | 30,747 | |||||||||
Cost of shares redeemed | (25,902 | ) | (101,424 | ) | |||||||
Change in net assets resulting from capital transactions | $ | (25,902 | ) | $ | (69,612 | ) | |||||
Share Transactions: | |||||||||||
Issued | — | 94 | |||||||||
Reinvested | — | 2,654 | |||||||||
Redeemed | (1,995 | ) | (9,179 | ) | |||||||
Change in Shares | (1,995 | ) | (6,431 | ) | |||||||
See notes to financial statements.
7
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 Managed Allocation Fund | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 12.23 | 0.07 | (c) | 0.43 | 0.50 | — | — | |||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 8.98 | 0.11 | (c) | 3.84 | 3.95 | (0.09 | ) | (0.61 | ) | |||||||||||||||||
2020 | $ | 10.26 | 0.20 | (c) | (0.96 | ) | (0.76 | ) | (0.22 | ) | (0.30 | ) | |||||||||||||||
2019 | $ | 11.22 | 0.17 | (0.10 | ) | 0.07 | (0.15 | ) | (0.88 | ) | |||||||||||||||||
2018 | $ | 10.46 | 0.16 | 0.73 | 0.89 | (0.13 | ) | — | (f) | ||||||||||||||||||
2017 | $ | 9.49 | 0.14 | 0.97 | 1.11 | (0.14 | ) | — | |||||||||||||||||||
* 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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) Per share net investment income (loss) has been calculated using the average daily shares method.
(d) Reflects overall decrease in purchases and sales of securities.
(e) Reflects an increase in trading activity due to asset allocation shifts.
(f) Amount is less than $0.005 per share.
(g) Prior to August 1, 2016, USAA Asset Management Company ("AMCO") (previous Investment Adviser) had voluntarily agreed to limit the annual expenses of the Fund to 0.70% of the Fund's average daily net assets.
See notes to financial statements.
8
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 Target Managed Allocation Fund | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | — | $ | 12.73 | 4.09 | % | 0.65 | % | 1.09 | % | 0.65 | % | $ | 526,021 | 95 | % | ||||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | (0.70 | ) | $ | 12.23 | 44.39 | % | 0.64 | % | 0.96 | % | 0.64 | % | $ | 529,613 | 202 | %(d) | |||||||||||||||||||
2020 | (0.52 | ) | $ | 8.98 | (8.20 | )% | 0.64 | % | 1.88 | % | 0.64 | % | $ | 446,616 | 298 | %(e) | |||||||||||||||||||
2019 | (1.03 | ) | $ | 10.26 | 1.32 | % | 0.65 | % | 1.83 | % | 0.65 | % | $ | 512,207 | 195 | %(e) | |||||||||||||||||||
2018 | (0.13 | ) | $ | 11.22 | 8.48 | % | 0.65 | % | 1.50 | % | 0.65 | % | $ | 487,599 | 75 | %(d) | |||||||||||||||||||
2017 | (0.14 | ) | $ | 10.46 | 11.72 | % | 0.64 | %(g) | 1.37 | % | 0.64 | % | $ | 462,794 | 125 | % | |||||||||||||||||||
See notes to financial statements.
9
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Target Managed Allocation Fund (the "Fund"). The Fund is classified as diversified under the 1940 Act.
The Fund is not offered for sale directly to the general public and is available currently for investment only to other USAA Mutual Funds participating in a fund-of-funds investment strategy or other persons or legal entities that the Fund may approve from time to time.
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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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
10
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 their net asset value ("NAV"). These valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. These valuations are typically categorized as Level 2 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 September 30, 2021, 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 | ||||||||||||||||
Exchange-Traded Funds | $ | 520,964 | $ | — | $ | — | $ | 520,964 | |||||||||||
Collateral for Securities Loaned | 33,153 | — | — | 33,153 | |||||||||||||||
Total | $ | 554,117 | $ | — | $ | — | $ | 554,117 | |||||||||||
Other Financial Investments* | |||||||||||||||||||
Assets: | |||||||||||||||||||
Futures Contracts | $ | 2,810 | $ | — | $ | — | $ | 2,810 | |||||||||||
Liabilities: | |||||||||||||||||||
Futures Contracts | $ | (5,732 | ) | $ | — | $ | — | $ | (5,732 | ) | |||||||||
Total | $ | (2,922 | ) | $ | — | $ | — | $ | (2,922 | ) | |||||||||
* Futures contracts are valued at the unrealized appreciation (depreciation) on the investment.
For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the 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.
11
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 often 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.
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 presented on the Statement of Assets and Liabilities under Deposit with brokers for futures contracts.
During the six months ended September 30, 2021, the Fund entered into futures contracts primarily for the strategy of hedging or other purposes, including but not limited to, providing liquidity and equitizing cash.
12
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021 (amounts in thousands):
Assets | Liabilities | ||||||||||
| Variation Margin Receivable on Open Futures Contracts* | Variation Margin Payable on Open Futures Contracts* | ||||||||||
Equity Risk Exposure | $ | 2,810 | $ | 5,732 | |||||||
* Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported on the Schedule of Portfolio Investments. Only current day's variation margin for futures contracts is 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 September 30, 2021 (amounts in thousands):
| Net Realized Gains (Losses) on Derivatives Recognized as a Result of 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 | $ | 5,923 | $ | (5,465 | ) | ||||||
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 or 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 discounts. Dividend income is recorded on the ex-dividend date. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 Securities and Exchange Commission ("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
13
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021.
| Value of Securities on Loan | Non-Cash Collateral | Cash Collateral | |||||||||
| $ | 32,113 | $ | — | $ | 33,153 | ||||||
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 investment securities 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 (losses) from investment securities 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 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 March 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.
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 an affiliated trust based upon net assets or another appropriate basis.
14
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 510,528 | $ | 533,874 | ||||
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 semi-annual reports may be viewed at vcm.com. As of September 30, 2021, certain fund-of-funds owned total outstanding shares of the Fund as follows:
Affiliated USAA Funds | Ownership % | ||||||
USAA Cornerstone Conservative Fund | 1.2 | % | |||||
USAA Cornerstone Equity Fund | 2.8 | % | |||||
USAA Target Retirement Income Fund | 8.0 | % | |||||
USAA Target Retirement 2030 Fund | 24.2 | % | |||||
USAA Target Retirement 2040 Fund | 36.2 | % | |||||
USAA Target Retirement 2050 Fund | 24.2 | % | |||||
USAA Target Retirement 2060 Fund | 3.4 | % | |||||
5. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the SEC. The Adviser is an indirect wholly owned 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 annualized rate of 0.50% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the six months ended September 30, 2021, 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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.05%, which is based on the Fund's average daily net assets of the Fund Shares. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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
15
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
between VCM and Citi. VCM pays Citi a fee for providing these services. The Fund reimburses VCM and Citi for out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. Transfer agent's fees for the Fund 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 for the six months ended September 30, 2021, 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 and receives no fee or other compensation for these services.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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 the Fund. Such excess amounts will be the liability of the Adviser. Acquired fund fees and expenses, 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 September 30, 2021, the expense limit (excluding voluntary waivers) was 0.65%.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment. As of September 30, 2021, there are no amounts available to be repaid to the Adviser.
16
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
6. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Portfolio Reallocation Risk — The frequent changes in the allocation of the Fund's portfolio holdings results in higher portfolio turnover. In purchasing and selling securities in order to reallocate the portfolio, the Fund will pay more brokerage commissions than it would without a reallocation policy. In addition, the Fund may have a higher proportion of capital gains and a potentially lower return than a fund that does not reallocate from time to time.
ETF Risk — ETFs, which generally are registered investment companies, incur their own management and other fees and expenses, such as trustees' fees, operating expenses, registration fees, and marketing expenses, a proportionate share of which will be borne indirectly by the Fund as a shareholder in an ETF. As a result, the Fund's investment in an ETF will cause the Fund to indirectly bear the fees and expenses of the ETF and, in turn, the Fund's performance may be lower than if the Fund were to invest directly in the underlying securities held by the ETF. For investments in affiliated ETFs, the Fund's management fee is reimbursed by the Adviser to the extent of the indirect management fee incurred through the Fund's investment in the affiliated ETFs. The Adviser may have conflicts of interest in allocating assets among affiliated and unaffiliated ETFs, because the Adviser also manages and administers the affiliated ETFs, and the Adviser and its affiliates receive other fees from the affiliated ETFs. In addition, the Fund also will be subject to the risks associated with the securities or other investments held by the ETFs.
Market Risk — Overall 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.
7. Borrowing and Interfund Lending:
Line of Credit:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
17
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The average borrowing or lending for the days outstanding and average interest rate for the Fund that utilized this Facility during the six months ended September 30, 2021, were as follows (amounts in thousands):
| Borrower or Lender | Amount Outstanding at September 30, 2021 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||
| Borrower | $ | — | $ | 23,411 | 6 | 0.56 | % | $ | 29,682 | ||||||||||||||
* For the six months ended September 30, 2021, based on the number of days borrowings were outstanding.
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 March 31, 2022.
As of the tax year ended March 31, 2021, the Fund had no capital loss carryforwards, for the federal income tax purposes.
18
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is available on the SEC's website at www.sec.gov.
Expense Example
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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21-9/30/21* | Hypothetical Expenses Paid During Period 4/1/21-9/30/21* | Annualized Expense Ratio During Period 4/1/21-9/30/21 | ||||||||||||||||||
| $ | 1,000.00 | $ | 1,040.90 | $ | 1,021.81 | $ | 3.33 | $ | 3.29 | 0.65 | % | ||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
19
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 | ||||||
98356-1121
September 30, 2021
Semi Annual Report
USAA Tax Exempt Long-Term Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 25 | ||||||
Statement of Operations | 26 | ||||||
Statements of Changes in Net Assets | 27 | ||||||
Financial Highlights | 30 | ||||||
Notes to Financial Statements | 32 | ||||||
Supplemental Information | 41 | ||||||
Proxy Voting and Portfolio Holdings Information | 41 | ||||||
Expense Examples | 41 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide investors with interest income that is exempt from federal income tax.
Top 10 Industries
September 30, 2021
(% of Net Assets)
Hospital | 18.1 | % | |||||
General Obligation | 13.2 | % | |||||
Education | 12.1 | % | |||||
Nursing/CCRC | 9.3 | % | |||||
Toll Road | 6.7 | % | |||||
Special Assessment/Tax/Fee | 6.7 | % | |||||
Water/Sewer Utility | 4.1 | % | |||||
Multifamily Housing | 3.7 | % | |||||
Electric/Gas Utility | 3.3 | % | |||||
Appropriated Debt | 3.0 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares or Principal Amount | Value | |||||||||
Common Stocks (0.0%) (a) | |||||||||||
Utilities (0.0%): | |||||||||||
Energy Harbor Corp. (b) | 2,456 | $ | 98 | ||||||||
Total Common Stocks (Cost $61) | 98 | ||||||||||
Municipal Bonds (99.5%) | |||||||||||
Alabama (1.0%): | |||||||||||
| Homewood Educational Building Authority Revenue, 5.00%, 12/1/47, Continuously Callable @100 | $ | 4,500 | 5,290 | ||||||||
| Montgomery Medical Clinic Board Revenue, 5.00%, 3/1/36, Continuously Callable @100 | 1,750 | 2,009 | |||||||||
The Lower Alabama Gas District Revenue, Series A, 5.00%, 9/1/46 | 11,500 | 16,604 | |||||||||
23,903 | |||||||||||
Alaska (0.0%): (a) | |||||||||||
| Northern Tobacco Securitization Corp. Revenue, Series A, 4.00%, 6/1/50, Continuously Callable @100 | 1,000 | 1,157 | |||||||||
Arizona (2.6%): | |||||||||||
| Apache County IDA Revenue, Series A, 4.50%, 3/1/30, Continuously Callable @100 | 5,000 | 5,086 | |||||||||
| Arizona Health Facilities Authority Revenue 5.00%, 2/1/42, Continuously Callable @100 | 6,000 | 6,060 | |||||||||
1.90% (MUNIPSA+185bps), 2/1/48, (Put Date 2/1/23) (c) (l) | 5,000 | 5,102 | |||||||||
| Arizona IDA Revenue 5.00%, 7/1/52, Continuously Callable @100 | 1,725 | 2,028 | |||||||||
Series A, 4.00%, 7/1/51, Continuously Callable @100 | 1,000 | 1,104 | |||||||||
| City of Phoenix Civic Improvement Corp. Revenue (INS — National Public Finance Guarantee Corp.) Series B, 5.50%, 7/1/29 | 1,000 | 1,294 | |||||||||
Series B, 5.50%, 7/1/30 | 1,500 | 1,975 | |||||||||
| Maricopa County IDA Revenue 5.00%, 7/1/47, Continuously Callable @100 | 1,600 | 1,813 | |||||||||
Series A, 4.00%, 7/1/56, Continuously Callable @100 | 1,000 | 1,138 | |||||||||
| Maricopa County Pollution Control Corp. Revenue, Series A, 0.11%, 6/1/43, Callable 11/1/21 @ 100 (d) | 4,300 | 4,300 | |||||||||
| Pinal County Electric District No. 3 Revenue, 4.00%, 7/1/41, Continuously Callable @100 | 10,000 | 11,073 | |||||||||
| Tempe Industrial Development Authority, 4.00%, 12/1/46, Continuously Callable @102 (e) | 2,500 | 2,725 | |||||||||
| The City of Phoenix IDA Revenue 5.00%, 7/1/41, Continuously Callable @100 | 1,200 | 1,352 | |||||||||
5.00%, 7/1/42, Continuously Callable @100 | 1,250 | 1,479 | |||||||||
5.00%, 7/1/44, Continuously Callable @100 | 6,000 | 6,574 | |||||||||
| The Pima County IDA Revenue 4.00%, 9/1/29, Continuously Callable @100 | 3,000 | 3,155 | |||||||||
5.00%, 6/15/52, Continuously Callable @100 (f) | 2,000 | 2,019 | |||||||||
| The Prima County IDA Revenue, Series A, 4.50%, 6/1/30, Continuously Callable @100 | 2,685 | 2,760 | |||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| The Yavapai County IDA Revenue, 4.00%, 8/1/43, Continuously Callable @100 | $ | 1,725 | $ | 1,956 | |||||||
62,993 | |||||||||||
Arkansas (0.2%): | |||||||||||
| Arkansas Development Finance Authority Revenue (INS — AMBAC Assurance Corp.) 7/1/28 (g) | 1,000 | 909 | |||||||||
7/1/29 (g) | 1,165 | 1,029 | |||||||||
7/1/30 (g) | 1,150 | 987 | |||||||||
7/1/36 (g) | 2,500 | 1,716 | |||||||||
4,641 | |||||||||||
California (6.6%): | |||||||||||
| California Health Facilities Financing Authority Revenue, 5.00%, 11/15/56, Continuously Callable @100 | 1,000 | 1,215 | |||||||||
| California Municipal Finance Authority Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8061, 0.46%, 1/1/60, Callable 1/1/37 @ 100 (d) (f) | 2,550 | 2,550 | |||||||||
| California State Public Works Board Revenue 5.00%, 6/1/31, Continuously Callable @100 | 2,950 | 3,180 | |||||||||
Series B, 5.00%, 10/1/30, Pre-refunded 10/1/21 @ 100 | 2,000 | 2,000 | |||||||||
Series B, 5.00%, 10/1/31, Pre-refunded 10/1/21 @ 100 | 1,110 | 1,110 | |||||||||
Series B, 5.00%, 10/1/39, Continuously Callable @100 | 3,500 | 3,943 | |||||||||
Series D, 5.00%, 12/1/29, Continuously Callable @100 | 2,500 | 2,519 | |||||||||
Series D, 5.00%, 12/1/31, Continuously Callable @100 | 2,000 | 2,016 | |||||||||
| California Statewide Communities Development Authority Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8052, 0.46%, 4/1/52, Callable 11/12/21 @ 100 (d) (f) | 3,245 | 3,245 | |||||||||
| Series DBE-8065, 0.46%, 11/1/52, Callable 12/13/21 @ 100 (d) (f) | 10,000 | 10,000 | |||||||||
| Cerritos Community College District, GO Series D, 8/1/31 (g) | 1,000 | 856 | |||||||||
Series D, 8/1/32 (g) | 2,500 | 2,083 | |||||||||
Series D, 8/1/33 (g) | 2,175 | 1,766 | |||||||||
Series D, 8/1/34 (g) | 1,000 | 790 | |||||||||
Series D, 8/1/35 (g) | 1,500 | 1,156 | |||||||||
Series D, 8/1/36 (g) | 2,200 | 1,654 | |||||||||
| City & County of San Francisco Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8059, 0.46%, 12/1/52, Callable 12/1/21 @ 100 (d) (f) | 13,000 | 13,000 | |||||||||
| Series DBE-8072, 0.46%, 1/1/52, Callable 10/18/21 @ 100 (d) (f) | 5,000 | 5,000 | |||||||||
| Coachella Valley Unified School District, GO (INS — Assured Guaranty Municipal Corp.), Series D, 8/1/41 (g) | 8,500 | 5,209 | |||||||||
| El Camino Community College District, GO Series C, 8/1/34 (g) | 3,000 | 2,349 | |||||||||
Series C, 8/1/38 (g) | 3,000 | 2,009 | |||||||||
| El Monte Union High School District, GO (INS — Assured Guaranty Municipal Corp.), 6/1/42 (g) | 10,000 | 5,817 | |||||||||
| Golden State Tobacco Securitization Corp. Revenue, Series A, 5.00%, 6/1/30, Pre-refunded 6/1/23 @ 100 | 2,000 | 2,158 | |||||||||
| Indio Redevelopment Agency Successor Agency Tax Allocation, Series A, 5.25%, 8/15/35, Continuously Callable @100 | 1,580 | 1,586 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Los Alamitos Unified School District Certificate of Participation 8/1/34, Continuously Callable @100 (h) | $ | 1,200 | $ | 1,388 | |||||||
8/1/42, Continuously Callable @100 (i) | 4,500 | 4,994 | |||||||||
| Paramount Unified School District, GO 8/1/34 (g) | 1,860 | 1,448 | |||||||||
8/1/35 (g) | 2,000 | 1,508 | |||||||||
8/1/36 (g) | 2,750 | 2,005 | |||||||||
8/1/37 (g) | 2,750 | 1,940 | |||||||||
| Sacramento City Schools Joint Powers Financing Authority Revenue (INS — Build America Mutual Assurance Co.) Series A, 5.00%, 3/1/36, Continuously Callable @100 | 2,560 | 2,801 | |||||||||
Series A, 5.00%, 3/1/40, Continuously Callable @100 | 2,000 | 2,178 | |||||||||
| San Diego Public Facilities Financing Authority Revenue, Series A, 5.00%, 10/15/44, Continuously Callable @100 | 2,500 | 2,881 | |||||||||
| San Ysidro School District, GO (INS — Assured Guaranty Municipal Corp.) Series G, 8/1/36 (g) | 13,605 | 9,969 | |||||||||
Series G, 8/1/37 (g) | 14,285 | 10,180 | |||||||||
| Santa Ana Unified School District Certificate of Participation (INS — Assured Guaranty Municipal Corp.), 4/1/29 (g) | 15,000 | 12,399 | |||||||||
| State of California, GO 5.25%, 4/1/35, Continuously Callable @100 | 8,000 | 8,197 | |||||||||
5.00%, 2/1/38, Continuously Callable @100 | 6,750 | 7,160 | |||||||||
5.00%, 10/1/47, Continuously Callable @100 | 5,000 | 5,824 | |||||||||
| Stockton Unified School District, GO (INS — Assured Guaranty Municipal Corp.), Series D, 8/1/34 (g) | 8,885 | 6,887 | |||||||||
158,970 | |||||||||||
Colorado (2.3%): | |||||||||||
| Colorado Educational & Cultural Facilities Authority Revenue 4.00%, 12/1/48, Continuously Callable @100 | 2,500 | 2,756 | |||||||||
5.00%, 4/1/53, Continuously Callable @100 | 750 | 881 | |||||||||
Series A, 5.25%, 4/1/43, Pre-refunded 4/1/23 @ 100 | 2,500 | 2,689 | |||||||||
| Colorado Health Facilities Authority Revenue 5.00%, 12/1/42, Pre-refunded 6/1/22 @ 100 | 5,000 | 5,160 | |||||||||
5.00%, 6/1/45, Pre-refunded 6/1/25 @ 100 | 6,000 | 7,007 | |||||||||
5.00%, 6/1/47, Pre-refunded 6/1/27 @ 100 | 1,250 | 1,538 | |||||||||
Series A, 4.00%, 8/1/49, Continuously Callable @100 | 2,500 | 2,821 | |||||||||
Series A, 4.00%, 9/1/50, Continuously Callable @100 | 1,500 | 1,681 | |||||||||
| Colorado Health Facilities Authority Revenue Bonds, 4.00%, 12/1/50, Continuously Callable @103 | 7,250 | 8,106 | |||||||||
| Denver Health & Hospital Authority Revenue, Series A, 4.00%, 12/1/40, Continuously Callable @100 | 750 | 855 | |||||||||
| E-470 Public Highway Authority Revenue (INS — National Public Finance Guarantee Corp.), Series B, 9/1/35, Continuously Callable @64 (g) | 10,000 | 5,858 | |||||||||
| Park Creek Metropolitan District Revenue 5.00%, 12/1/45, Continuously Callable @100 | 1,000 | 1,133 | |||||||||
5.00%, 12/1/46, Continuously Callable @100 | 2,500 | 2,827 | |||||||||
5.00%, 12/1/51, Continuously Callable @100 | 2,000 | 2,251 | |||||||||
| Rampart Range Metropolitan District No. 1 Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 12/1/47, Continuously Callable @100 | 4,000 | 4,772 | |||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Regional Transportation District Certificate of Participation, Series A, 5.00%, 6/1/44, Continuously Callable @100 | $ | 5,000 | $ | 5,346 | |||||||
| Southlands Metropolitan District No. 1, GO, Series A-1, 5.00%, 12/1/47, Continuously Callable @100 | 1,000 | 1,111 | |||||||||
56,792 | |||||||||||
Connecticut (0.9%): | |||||||||||
| Connecticut State Health & Educational Facilities Authority Revenue, Series A, 4.00%, 7/1/49, Continuously Callable @100 | 3,000 | 3,347 | |||||||||
Mashantucket Western Pequot Tribe Revenue, 7/1/31 (j) (n) | 59,890 | 8,984 | |||||||||
| State of Connecticut, GO Series A, 5.00%, 4/15/38, Continuously Callable @100 | 5,500 | 6,745 | |||||||||
Series A, 5.00%, 4/15/39, Continuously Callable @100 | 1,550 | 1,934 | |||||||||
21,010 | |||||||||||
District of Columbia (1.1%): | |||||||||||
| District of Columbia Housing Finance Agency Revenue (LIQ — Deutsche Bank A.G.), Series DBE-8070, 0.46%, 8/1/40, Callable 1/1/32 @ 105 (d) (f) | 7,500 | 7,500 | |||||||||
| District of Columbia Revenue 5.00%, 7/1/36, Pre-refunded 7/1/22 @ 100 | 1,305 | 1,351 | |||||||||
5.00%, 7/1/42, Pre-refunded 7/1/22 @ 100 | 1,500 | 1,552 | |||||||||
6.00%, 7/1/43, Pre-refunded 7/1/23 @ 100 | 1,700 | 1,868 | |||||||||
6.00%, 7/1/48, Pre-refunded 7/1/23 @ 100 | 1,450 | 1,593 | |||||||||
5.00%, 7/1/49, Continuously Callable @100 | 1,275 | 1,494 | |||||||||
5.00%, 7/1/54, Continuously Callable @100 | 1,140 | 1,329 | |||||||||
| Metropolitan Washington Airports Authority Dulles Toll Road Revenue, 5.00%, 10/1/53, Continuously Callable @100 | 10,000 | 10,206 | |||||||||
26,893 | |||||||||||
Florida (8.8%): | |||||||||||
| Alachua County Health Facilities Authority Revenue, 4.00%, 12/1/49, Continuously Callable @100 | 7,000 | 7,945 | |||||||||
| City of Atlantic Beach Revenue Series A, 5.00%, 11/15/53, Continuously Callable @103 | 2,000 | 2,284 | |||||||||
Series B, 5.63%, 11/15/43, Continuously Callable @100 | 7,000 | 7,638 | |||||||||
| City of Jacksonville Revenue 5.00%, 10/1/29, Continuously Callable @100 | 2,270 | 2,377 | |||||||||
4.00%, 11/1/45, Continuously Callable @100 | 2,500 | 2,810 | |||||||||
| City of Lakeland Revenue 5.00%, 9/1/37, Continuously Callable @100 | 500 | 519 | |||||||||
5.00%, 9/1/42, Continuously Callable @100 | 1,000 | 1,038 | |||||||||
| City of Pompano Beach Revenue Bonds, 4.00%, 9/1/50, Continuously Callable @103 | 8,000 | 8,641 | |||||||||
| County of Miami-Dade Florida Water & Sewer System Revenue 4.00%, 10/1/51, Continuously Callable @100 | 2,500 | 2,924 | |||||||||
4.00%, 10/1/51, Continuously Callable @100 | 15,430 | 18,067 | |||||||||
Series B, 4.00%, 10/1/49, Continuously Callable @100 | 22,000 | 25,217 | |||||||||
| County of Miami-Dade Rickenbacker Causeway Revenue, 5.00%, 10/1/43, Continuously Callable @100 | 1,750 | 1,959 | |||||||||
| County of Miami-Dade Seaport Department Revenue, Series A-2, 4.00%, 10/1/49, Continuously Callable @100 | 4,000 | 4,626 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| County of Polk Florida Utility System Revenue, 4.00%, 10/1/43, Continuously Callable @100 | $ | 2,000 | $ | 2,370 | |||||||
| Escambia County Health Facilities Authority Revenue 4.00%, 8/15/45, Continuously Callable @100 | 5,050 | 5,715 | |||||||||
4.00%, 8/15/50, Continuously Callable @100 | 6,265 | 6,978 | |||||||||
| Florida Development Finance Corp. Revenue 4.00%, 7/1/45, Continuously Callable @100 | 600 | 651 | |||||||||
4.00%, 7/1/55, Continuously Callable @100 | 500 | 537 | |||||||||
| Florida Development Finance Corp. Revenue Bonds, Series A, 5.00%, 6/15/55, Continuously Callable @100 (f) | 1,500 | 1,679 | |||||||||
| Florida Higher Educational Facilities Financial Authority Revenue 5.00%, 3/1/44, Continuously Callable @100 | 4,280 | 4,937 | |||||||||
4.00%, 10/1/44, Continuously Callable @100 | 1,400 | 1,519 | |||||||||
5.00%, 3/1/49, Continuously Callable @100 | 1,250 | 1,436 | |||||||||
4.00%, 10/1/49, Continuously Callable @100 | 1,150 | 1,247 | |||||||||
Series A, 5.00%, 4/1/32, Pre-refunded 4/1/22 @ 100 | 600 | 614 | |||||||||
Series A, 5.25%, 4/1/42, Pre-refunded 4/1/22 @ 100 | 1,500 | 1,539 | |||||||||
| Florida Municipal Loan Council Revenue (INS — Assured Guaranty Municipal Corp.), Series D, 5.25%, 10/1/33, Continuously Callable @100 | 2,500 | 2,509 | |||||||||
| Halifax Hospital Medical Center Revenue, 5.00%, 6/1/46, Continuously Callable @100 | 3,000 | 3,412 | |||||||||
| Lee County IDA Revenue 5.75%, 10/1/42, Pre-refunded 10/1/22 @ 100 | 4,000 | 4,221 | |||||||||
5.50%, 10/1/47, Pre-refunded 10/1/22 @ 102 | 5,000 | 5,364 | |||||||||
5.00%, 11/15/49, Continuously Callable @103 | 12,350 | 14,355 | |||||||||
| Lee Memorial Health System Revenue, Series A-1, 4.00%, 4/1/49, Continuously Callable @100 | 4,500 | 5,020 | |||||||||
| Miami Beach Health Facilities Authority Revenue, 4.00%, 11/15/51, Continuously Callable @100 | 2,500 | 2,836 | |||||||||
| Miami-Dade County Expressway Authority Revenue Series A, 5.00%, 7/1/39, Continuously Callable @100 | 5,000 | 5,565 | |||||||||
Series A, 5.00%, 7/1/40, Continuously Callable @100 | 5,000 | 5,017 | |||||||||
| Miami-Dade County Health Facilities Authority Revenue, 4.00%, 8/1/47, Continuously Callable @100 | 2,000 | 2,190 | |||||||||
| Orange County Health Facilities Authority Revenue, Series B, 4.00%, 10/1/45, Continuously Callable @100 | 1,500 | 1,640 | |||||||||
| Palm Beach County Educational Facilities Authority, 4.00%, 10/1/51, Continuously Callable @100 (e) | 2,070 | 2,285 | |||||||||
| Palm Beach County Health Facilities Authority Revenue 5.00%, 11/15/45, Continuously Callable @103 | 150 | 175 | |||||||||
5.00%, 5/15/47, Continuously Callable @100 | 5,000 | 5,656 | |||||||||
Series B, 5.00%, 11/15/42, Continuously Callable @103 | 1,000 | 1,213 | |||||||||
| Palm Beach County Solid Waste Authority Revenue 5.00%, 10/1/31, Pre-refunded 10/1/21 @ 100 | 155 | 155 | |||||||||
5.00%, 10/1/31, Continuously Callable @100 | 9,845 | 9,846 | |||||||||
| Pinellas County Educational Facilities Authority Revenue 5.00%, 10/1/27, Continuously Callable @100 | 1,000 | 1,044 | |||||||||
5.25%, 10/1/30, Continuously Callable @100 | 1,000 | 1,046 | |||||||||
6.00%, 10/1/41, Continuously Callable @100 | 3,650 | 3,664 | |||||||||
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Polk County IDA Revenue 5.00%, 1/1/49, Continuously Callable @103 | $ | 1,000 | $ | 1,112 | |||||||
5.00%, 1/1/55, Continuously Callable @103 | 1,000 | 1,108 | |||||||||
| Sarasota County Health Facilities Authority Revenue, 5.00%, 5/15/48, Continuously Callable @103 | 1,835 | 2,061 | |||||||||
St. Johns County IDA Revenue Bonds, 4.00%, 8/1/55, Continuously Callable @103 | 6,000 | 6,811 | |||||||||
Tampa Housing Authority Revenue, 4.85%, 7/1/36, Callable 11/1/21 @ 100 | 2,200 | 2,206 | |||||||||
| Tampa-Hillsborough County Expressway Authority Revenue, Series B, 5.00%, 7/1/42, Pre-refunded 7/1/22 @ 100 | 3,050 | 3,158 | |||||||||
| Volusia County Educational Facility Authority Revenue, Series B, 5.00%, 10/15/45, Pre-refunded 4/15/25 @ 100 | 2,000 | 2,324 | |||||||||
| Volusia County Educational Facility Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 10/15/29, Pre-refunded 10/15/21 @ 100 | 2,350 | 2,353 | |||||||||
213,613 | |||||||||||
Georgia (1.9%): | |||||||||||
| Crisp County Hospital Authority Revenue, 4.00%, 7/1/51, Continuously Callable @100 | 3,000 | 3,465 | |||||||||
| Gainesville & Hall County Hospital Authority Revenue, 4.00%, 2/15/45, Continuously Callable @100 | 15,000 | 17,015 | |||||||||
| Glynn-Brunswick Memorial Hospital Authority Revenue, 5.00%, 8/1/47, Continuously Callable @100 | 1,500 | 1,756 | |||||||||
Main Street Natural Gas, Inc. Revenue, Series A, 5.00%, 5/15/49 | 3,000 | 4,507 | |||||||||
| Municipal Electric Authority of Georgia Revenue, 4.00%, 1/1/51, Continuously Callable @100 | 1,100 | 1,238 | |||||||||
| Private Colleges & Universities Authority Revenue 4.00%, 6/1/45, Continuously Callable @100 | 1,700 | 1,942 | |||||||||
Series A, 5.00%, 10/1/32, Continuously Callable @100 | 1,600 | 1,600 | |||||||||
| The Burke County Development Authority Revenue, Series 1, 0.11%, 7/1/49, Continuously Callable @100 (d) | 200 | 200 | |||||||||
| The Burke County Development Authority Revenue Bonds (NBGA — Southern Co.), 0.11%, 11/1/52, Continuously Callable @100 (d) | 1,000 | 1,000 | |||||||||
| The Development Authority of Monroe County Revenue Bonds, 0.11%, 11/1/48, Continuously Callable @100 (d) | 700 | 700 | |||||||||
| Valdosta Housing Authority Revenue (LIQ — Deutsche Bank A.G.), Series 2020-XF1089, 0.30%, 4/1/60, Callable 4/1/35 @ 100 (d) (f) | 13,325 | 13,325 | |||||||||
46,748 | |||||||||||
Illinois (12.4%): | |||||||||||
| Bureau County Township High School District No. 502, GO (INS — Build America Mutual Assurance Co.) Series A, 5.00%, 12/1/38, Pre-refunded 12/1/27 @ 100 | 1,555 | 1,989 | |||||||||
Series A, 5.00%, 12/1/39, Pre-refunded 12/1/27 @ 100 | 1,400 | 1,791 | |||||||||
| Bureau County Township High School District No. 502, GO (INS-Build America Mutual Assurance Co.), Series A, 5.00%, 12/1/37, Pre-refunded 12/1/27 @ 100 | 1,530 | 1,957 | |||||||||
| Chicago Board of Education, GO, Series H, 5.00%, 12/1/36, Continuously Callable @100 | 5,000 | 5,920 | |||||||||
| Chicago Board of Education, GO (LIQ — Deutsche Bank A.G.), Series 2017-XM0188, 0.14%, 12/1/39, Callable 12/1/21 @ 100 (d) (f) | 4,000 | 4,000 | |||||||||
| Chicago Midway International Airport Revenue Series B, 5.00%, 1/1/41, Continuously Callable @100 | 2,500 | 2,936 | |||||||||
Series B, 5.00%, 1/1/46, Continuously Callable @100 | 3,500 | 4,070 | |||||||||
See notes to financial statements.
8
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Chicago O'Hare International Airport Revenue 5.75%, 1/1/43, Continuously Callable @100 | $ | 5,000 | $ | 5,279 | |||||||
Series C, 4.00%, 1/1/38, Continuously Callable @100 | 1,000 | 1,170 | |||||||||
Series C, 5.00%, 1/1/41, Continuously Callable @100 | 5,000 | 5,913 | |||||||||
| Chicago Park District, GO Series A, 5.00%, 1/1/40, Continuously Callable @100 | 3,000 | 3,421 | |||||||||
Series F-2, 5.00%, 1/1/40, Continuously Callable @100 | 1,125 | 1,391 | |||||||||
City of Chicago Special Assessment, 6.75%, 12/1/32, Continuously Callable @100 | 3,924 | 3,934 | |||||||||
| City of Chicago Wastewater Transmission Revenue 5.00%, 1/1/44, Continuously Callable @100 | 4,000 | 4,371 | |||||||||
Series C, 5.00%, 1/1/39, Continuously Callable @100 | 3,000 | 3,368 | |||||||||
| City of Chicago Wastewater Transmission Revenue Bonds, Series A, 5.00%, 1/1/47, Continuously Callable @100 | 3,000 | 3,519 | |||||||||
| City of Chicago Waterworks Revenue, 5.00%, 11/1/44, Continuously Callable @100 | 3,000 | 3,350 | |||||||||
| City of Springfield Electric Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 3/1/40, Continuously Callable @100 | 3,000 | 3,394 | |||||||||
| Cook County Community College District No. 508, GO (INS-Build America Mutual Assurance Co.), 5.00%, 12/1/47, Continuously Callable @100 | 9,500 | 11,310 | |||||||||
County of Cook Sales Tax Revenue, 5.00%, 11/15/38, Continuously Callable @100 | 7,750 | 9,339 | |||||||||
County of Will, GO, 4.00%, 11/15/47, Continuously Callable @100 | 2,000 | 2,296 | |||||||||
| Illinois Finance Authority Revenue 3.90%, 3/1/30, Continuously Callable @100 | 14,000 | 15,160 | |||||||||
5.50%, 4/1/32, Continuously Callable @100 | 7,065 | 7,081 | |||||||||
4.00%, 2/1/33, Continuously Callable @100 | 6,000 | 6,290 | |||||||||
5.00%, 5/15/37, Continuously Callable @100 | 700 | 796 | |||||||||
4.00%, 3/1/38, Continuously Callable @100 | 2,000 | 2,228 | |||||||||
4.00%, 2/15/41, Pre-refunded 2/15/27 @ 100 | 20 | 24 | |||||||||
5.00%, 8/1/42, Continuously Callable @100 | 750 | 867 | |||||||||
6.00%, 7/1/43, Continuously Callable @100 | 5,000 | 5,448 | |||||||||
5.00%, 1/1/44, Continuously Callable @100 | 10,000 | 12,007 | |||||||||
5.00%, 8/15/44, Continuously Callable @100 | 2,000 | 2,292 | |||||||||
4.00%, 12/1/46, Continuously Callable @100 | 4,500 | 4,937 | |||||||||
5.00%, 2/15/47, Continuously Callable @100 | 1,000 | 1,131 | |||||||||
5.00%, 5/15/47, Continuously Callable @100 | 1,155 | 1,304 | |||||||||
5.00%, 8/1/47, Continuously Callable @100 | 750 | 859 | |||||||||
5.00%, 12/1/47, Continuously Callable @100 | 2,000 | 2,301 | |||||||||
5.00%, 10/1/49, Continuously Callable @100 | 1,250 | 1,507 | |||||||||
5.00%, 2/15/50, Continuously Callable @100 | 500 | 563 | |||||||||
5.00%, 10/1/51, Continuously Callable @100 | 1,000 | 1,203 | |||||||||
4.00%, 10/1/55, Continuously Callable @100 | 2,000 | 2,229 | |||||||||
Series A, 4.00%, 7/1/38, Continuously Callable @100 | 5,000 | 5,586 | |||||||||
Series A, 4.00%, 10/1/40, Continuously Callable @100 | 12,395 | 13,891 | |||||||||
Series C, 4.00%, 2/15/41, Pre-refunded 2/15/27 @ 100 | 485 | 579 | |||||||||
Series C, 4.00%, 2/15/41, Continuously Callable @100 | 10,495 | 11,871 | |||||||||
| Illinois State Toll Highway Authority Revenue, Series A, 4.00%, 1/1/44, Continuously Callable @100 | 4,000 | 4,568 | |||||||||
| Metropolitan Pier & Exposition Authority Revenue, 5.00%, 6/15/42, Continuously Callable @100 | 2,000 | 2,456 | |||||||||
See notes to financial statements.
9
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Northern Illinois Municipal Power Agency Revenue, Series A, 4.00%, 12/1/41, Continuously Callable @100 | $ | 9,000 | $ | 10,029 | |||||||
| Northern Illinois University Revenue (INS — Build America Mutual Assurance Co.), Series B, 4.00%, 4/1/41, Continuously Callable @100 | 600 | 684 | |||||||||
| Regional Transportation Authority Revenue (INS — National Public Finance Guarantee Corp.), 6.50%, 7/1/30 (k) | 37,550 | 50,687 | |||||||||
| Sangamon County Water Reclamation District, GO Series A, 4.00%, 1/1/49, Continuously Callable @100 | 15,000 | 16,783 | |||||||||
Series A, 5.75%, 1/1/53, Continuously Callable @100 | 2,000 | 2,362 | |||||||||
| State of Illinois, GO 5.50%, 5/1/39, Continuously Callable @100 | 2,275 | 2,879 | |||||||||
Series A, 5.00%, 10/1/33, Continuously Callable @100 | 2,000 | 2,403 | |||||||||
| State of Illinois, GO (INS — Assured Guaranty Municipal Corp.) 4.00%, 2/1/31, Continuously Callable @100 | 1,000 | 1,118 | |||||||||
4.00%, 2/1/32, Continuously Callable @100 | 1,000 | 1,110 | |||||||||
Series A, 5.00%, 4/1/29, Continuously Callable @100 | 8,000 | 8,503 | |||||||||
| Village of Rosemont, GO (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 12/1/46, Continuously Callable @100 | 10,000 | 11,998 | |||||||||
300,452 | |||||||||||
Indiana (1.7%): | |||||||||||
| Evansville Redevelopment Authority Revenue (INS — Build America Mutual Assurance Co.) 4.00%, 2/1/38, Continuously Callable @100 | 5,540 | 6,166 | |||||||||
4.00%, 2/1/39, Continuously Callable @100 | 3,605 | 4,005 | |||||||||
| Indiana Finance Authority Revenue 5.00%, 2/1/40, Continuously Callable @100 | 1,495 | 1,635 | |||||||||
5.00%, 11/15/43, Continuously Callable @103 | 1,970 | 2,302 | |||||||||
5.00%, 10/1/44, Pre-refunded 10/1/23 @ 100 | 4,000 | 4,386 | |||||||||
5.00%, 11/15/48, Continuously Callable @103 | 3,895 | 4,515 | |||||||||
Series A, 5.00%, 6/1/39, Continuously Callable @100 | 5,000 | 5,053 | |||||||||
Series A, 5.50%, 4/1/46, Continuously Callable @100 | 5,000 | 5,562 | |||||||||
| Richmond Hospital Authority Revenue, 5.00%, 1/1/39, Continuously Callable @100 | 7,000 | 7,909 | |||||||||
41,533 | |||||||||||
Iowa (0.6%): | |||||||||||
| Iowa Finance Authority Revenue 2.88%, 5/15/49, Continuously Callable @100 | 1,180 | 1,180 | |||||||||
Series A, 5.00%, 5/15/43, Continuously Callable @100 | 6,235 | 7,221 | |||||||||
Series B, 5.00%, 2/15/48, Continuously Callable @100 | 4,000 | 4,892 | |||||||||
| Iowa Tobacco Settlement Authority Revenue, Series A-2, 4.00%, 6/1/49, Continuously Callable @100 | 1,000 | 1,152 | |||||||||
14,445 | |||||||||||
Kansas (0.5%): | |||||||||||
| City of Coffeyville Electric System Revenue (INS-National Public Finance Guarantee Corp.), Series B, 5.00%, 6/1/42, Pre-refunded 6/1/25 @ 100 (f) | 2,500 | 2,920 | |||||||||
City of Lawrence Revenue, 5.00%, 7/1/48, Continuously Callable @100 | 5,000 | 5,996 | |||||||||
See notes to financial statements.
10
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Wyandotte County-Kansas City Unified Government Utility System Revenue, Series A, 5.00%, 9/1/45, Continuously Callable @100 | $ | 2,000 | $ | 2,315 | |||||||
11,231 | |||||||||||
Kentucky (0.8%): | |||||||||||
City of Ashland Revenue, 5.00%, 2/1/40, Continuously Callable @100 | 1,000 | 1,149 | |||||||||
City of Hazard Revenue, 4.00%, 7/1/51, Continuously Callable @100 | 3,000 | 3,453 | |||||||||
| Kentucky Bond Development Corp. Revenue, 4.00%, 6/1/51, Continuously Callable @100 | 1,070 | 1,224 | |||||||||
| Kentucky Economic Development Finance Authority Revenue 5.00%, 5/15/46, Continuously Callable @100 | 5,500 | 5,766 | |||||||||
Series B, 5.00%, 8/15/41, Continuously Callable @100 | 3,000 | 3,605 | |||||||||
| Kentucky Economic Development Finance Authority Revenue (INS — Assured Guaranty Municipal Corp.) 4.00%, 12/1/41, Continuously Callable @100 | 500 | 572 | |||||||||
Series A, 5.00%, 12/1/45, Continuously Callable @100 | 2,000 | 2,430 | |||||||||
18,199 | |||||||||||
Louisiana (3.9%): | |||||||||||
| City of Shreveport Water & Sewer Revenue 5.00%, 12/1/40, Continuously Callable @100 | 1,000 | 1,150 | |||||||||
Series B, 5.00%, 12/1/41, Continuously Callable @100 | 5,500 | 6,430 | |||||||||
Series B, 4.00%, 12/1/49, Continuously Callable @100 | 1,000 | 1,120 | |||||||||
| City of Shreveport Water & Sewer Revenue (INS — Assured Guaranty Municipal Corp.), Series B, 5.00%, 12/1/41, Continuously Callable @100 | 2,100 | 2,530 | |||||||||
| City of Shreveport Water & Sewer Revenue (INS — Build America Mutual Assurance Co.), Series B, 4.00%, 12/1/37, Continuously Callable @100 | 1,100 | 1,246 | |||||||||
| Jefferson Sales Tax District Revenue, Series B, 4.00%, 12/1/42, Continuously Callable @100 | 7,000 | 8,137 | |||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority Revenue, 3.50%, 11/1/32, Continuously Callable @100 | 6,250 | 6,889 | |||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority Revenue (INS — Assured Guaranty Municipal Corp.) 5.00%, 10/1/39, Continuously Callable @100 | 1,685 | 2,035 | |||||||||
4.00%, 10/1/46, Continuously Callable @100 | 8,210 | 9,110 | |||||||||
5.00%, 10/1/48, Continuously Callable @100 | 5,000 | 5,966 | |||||||||
| Louisiana Public Facilities Authority Revenue 4.00%, 5/15/41, Continuously Callable @100 | 1,235 | 1,362 | |||||||||
4.00%, 5/15/41, Pre-refunded 5/15/26 @ 100 | 15 | 17 | |||||||||
5.00%, 11/1/45, Pre-refunded 11/1/25 @ 100 | 6,000 | 7,113 | |||||||||
5.00%, 5/15/46, Continuously Callable @100 | 5,000 | 5,919 | |||||||||
4.00%, 12/15/50, Continuously Callable @100 | 1,000 | 1,104 | |||||||||
5.00%, 7/1/52, Continuously Callable @100 | 400 | 468 | |||||||||
4.00%, 1/1/56, Continuously Callable @100 | 9,000 | 9,636 | |||||||||
5.00%, 7/1/57, Continuously Callable @100 | 2,000 | 2,332 | |||||||||
| Louisiana Public Facilities Authority Revenue (INS — Build America Mutual Assurance Co.), 5.25%, 6/1/51, Continuously Callable @100 | 5,000 | 5,655 | |||||||||
Parish of St. Charles Revenue, 4.00%, 12/1/40, (Put Date 6/1/22) (c) | 6,750 | 6,906 | |||||||||
| State of Louisiana Gasoline & Fuels Tax Revenue, Series C, 5.00%, 5/1/45, Continuously Callable @100 | 6,000 | 7,266 | |||||||||
See notes to financial statements.
11
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Tobacco Settlement Financing Corp. Revenue, Series A, 5.25%, 5/15/35, Continuously Callable @100 | $ | 1,500 | $ | 1,608 | |||||||
93,999 | |||||||||||
Maine (0.4%): | |||||||||||
| Maine Health & Higher Educational Facilities Authority Revenue, Series A, 4.00%, 7/1/46, Continuously Callable @100 | 9,000 | 9,555 | |||||||||
Massachusetts (1.5%): | |||||||||||
| Massachusetts Development Finance Agency Revenue 5.00%, 4/15/40, Continuously Callable @100 | 1,000 | 1,102 | |||||||||
5.00%, 7/1/46, Continuously Callable @100 | 4,000 | 4,599 | |||||||||
5.00%, 7/1/47, Continuously Callable @100 | 2,280 | 2,586 | |||||||||
4.00%, 7/1/51, Continuously Callable @100 | 1,000 | 1,131 | |||||||||
Series A, 5.50%, 7/1/44, Continuously Callable @100 | 2,000 | 2,032 | |||||||||
Series A, 4.00%, 10/1/46, Continuously Callable @100 | 3,370 | 3,648 | |||||||||
Series A, 4.00%, 6/1/49, Continuously Callable @100 | 1,000 | 1,118 | |||||||||
Series B, 4.00%, 7/1/50, Continuously Callable @100 | 975 | 1,111 | |||||||||
Series C, 4.00%, 10/1/45, Continuously Callable @100 | 1,250 | 1,443 | |||||||||
Series D, 5.00%, 7/1/44, Continuously Callable @100 | 3,000 | 3,350 | |||||||||
Series E, 4.00%, 7/1/38, Continuously Callable @100 | 1,000 | 1,094 | |||||||||
Series J2, 5.00%, 7/1/53, Continuously Callable @100 | 10,000 | 12,017 | |||||||||
35,231 | |||||||||||
Michigan (2.2%): | |||||||||||
County of Genesee, GO, Series B, 4.00%, 2/1/41, Continuously Callable @100 | 2,000 | 2,207 | |||||||||
| County of Genesee, GO (INS — Build America Mutual Assurance Co.), Series B, 5.00%, 2/1/46, Continuously Callable @100 | 2,900 | 3,360 | |||||||||
| Downriver Utility Wastewater Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 4/1/43, Continuously Callable @100 | 2,500 | 2,964 | |||||||||
| Flint Hospital Building Authority Revenue, 4.00%, 7/1/38, Continuously Callable @100 | 2,500 | 2,777 | |||||||||
| Jackson Public Schools, GO (NBGA — Michigan School Bond Qualification and Loan Program) 5.00%, 5/1/45, Continuously Callable @100 | 6,000 | 7,312 | |||||||||
5.00%, 5/1/48, Continuously Callable @100 | 3,000 | 3,655 | |||||||||
| Karegnondi Water Authority Revenue, 5.00%, 11/1/45, Continuously Callable @100 | 2,750 | 3,333 | |||||||||
| Livonia Public Schools, GO (INS — Assured Guaranty Municipal Corp.), 5.00%, 5/1/45, Continuously Callable @100 | 4,000 | 4,671 | |||||||||
| Michigan Finance Authority Revenue 5.00%, 11/1/43, Continuously Callable @100 | 1,000 | 1,223 | |||||||||
4.00%, 2/15/47, Continuously Callable @100 | 8,000 | 9,161 | |||||||||
4.00%, 9/1/50, Continuously Callable @100 | 1,000 | 1,103 | |||||||||
4.00%, 11/1/55, Continuously Callable @100 | 4,000 | 4,576 | |||||||||
Series A, 4.00%, 11/15/50, Continuously Callable @100 | 3,000 | 3,448 | |||||||||
| Michigan State Building Authority Revenue, 4.00%, 4/15/54, Continuously Callable @100 | 2,000 | 2,288 | |||||||||
52,078 | |||||||||||
Mississippi (0.1%): | |||||||||||
County of Warren Revenue, 5.38%, 12/1/35, Continuously Callable @100 | 3,000 | 3,023 | |||||||||
See notes to financial statements.
12
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Missouri (3.0%): | |||||||||||
| Cape Girardeau County IDA Revenue 5.00%, 3/1/36, Continuously Callable @100 | $ | 750 | $ | 854 | |||||||
Series A, 6.00%, 3/1/33, Continuously Callable @103 | 2,210 | 2,393 | |||||||||
Hannibal IDA Revenue, 5.00%, 10/1/47, Continuously Callable @100 | 3,000 | 3,534 | |||||||||
| Health & Educational Facilities Authority of the State of Missouri Revenue 4.00%, 8/1/36, Continuously Callable @100 | 440 | 508 | |||||||||
5.00%, 5/15/40, Continuously Callable @103 | 5,510 | 6,314 | |||||||||
4.00%, 8/1/41, Continuously Callable @100 | 410 | 466 | |||||||||
5.00%, 2/1/42, Continuously Callable @104 | 3,500 | 3,941 | |||||||||
4.00%, 2/1/48, Continuously Callable @100 | 10,000 | 10,988 | |||||||||
4.00%, 2/15/51, Continuously Callable @100 | 1,000 | 1,147 | |||||||||
Series A, 5.00%, 11/15/43, Continuously Callable @100 | 1,000 | 1,212 | |||||||||
Series A, 4.00%, 2/15/54, Continuously Callable @100 | 2,500 | 2,827 | |||||||||
| Missouri Development Finance Board Revenue 4.00%, 6/1/46, Continuously Callable @100 | 17,775 | 19,687 | |||||||||
4.00%, 3/1/51, Continuously Callable @100 | 2,000 | 2,221 | |||||||||
| St. Louis County IDA Revenue 5.88%, 9/1/43, Continuously Callable @100 | 5,000 | 5,294 | |||||||||
5.00%, 9/1/48, Continuously Callable @100 | 2,000 | 2,220 | |||||||||
| St. Louis Municipal Finance Corp. Revenue (INS — Assured Guaranty Municipal Corp.) 5.00%, 10/1/38, Continuously Callable @100 | 3,065 | 3,621 | |||||||||
5.00%, 10/1/49, Continuously Callable @100 | 3,000 | 3,631 | |||||||||
| Stoddard County IDA Revenue, Series B, 6.00%, 3/1/37, Continuously Callable @103 | 1,940 | 2,095 | |||||||||
72,953 | |||||||||||
Montana (0.2%): | |||||||||||
City of Forsyth Revenue, 3.90%, 3/1/31, Callable 3/1/23 @ 100 | 4,000 | 4,199 | |||||||||
| Montana Facility Finance Authority Revenue, Series A, 4.00%, 6/1/45, Continuously Callable @100 | 1,000 | 1,160 | |||||||||
5,359 | |||||||||||
Nebraska (0.6%): | |||||||||||
Central Plains Energy Project Revenue, Series A, 5.00%, 9/1/42 | 2,000 | 2,882 | |||||||||
| Douglas County Hospital Authority No. 3 Revenue, 5.00%, 11/1/48, Continuously Callable @100 | 3,400 | 3,883 | |||||||||
| Nebraska Educational Health Cultural & Social Services Finance Authority Revenue, 4.00%, 1/1/49, Continuously Callable @102 | 7,500 | 8,101 | |||||||||
14,866 | |||||||||||
Nevada (0.9%): | |||||||||||
City of Carson City Revenue, 5.00%, 9/1/47, Continuously Callable @100 | 2,775 | 3,297 | |||||||||
| Las Vegas Convention & Visitors Authority Revenue Series C, 4.00%, 7/1/41, Continuously Callable @100 | 4,400 | 4,853 | |||||||||
Series C, 4.00%, 7/1/46, Continuously Callable @100 | 12,140 | 13,300 | |||||||||
21,450 | |||||||||||
New Hampshire (0.1%): | |||||||||||
| New Hampshire Business Finance Authority Revenue, 4.00%, 1/1/51, Continuously Callable @103 | 2,500 | 2,701 | |||||||||
See notes to financial statements.
13
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
New Jersey (4.8%): | |||||||||||
| New Jersey Economic Development Authority Revenue 1.65% (MUNIPSA+160bps), 3/1/28, Callable 3/1/23 @ 100 (l) | $ | 20,000 | $ | 20,355 | |||||||
5.00%, 6/15/28, Continuously Callable @100 | 2,000 | 2,049 | |||||||||
5.00%, 6/15/40, Continuously Callable @100 | 8,125 | 8,941 | |||||||||
5.00%, 6/15/40, Pre-refunded 6/15/24 @ 100 | 1,875 | 2,111 | |||||||||
4.00%, 11/1/44, Continuously Callable @100 | 3,000 | 3,370 | |||||||||
4.00%, 6/15/49, Continuously Callable @100 | 4,000 | 4,508 | |||||||||
Series A, 5.00%, 6/15/47, Continuously Callable @100 | 3,000 | 3,575 | |||||||||
Series AAA, 5.00%, 6/15/41, Continuously Callable @100 | 4,000 | 4,728 | |||||||||
Series B, 5.00%, 6/15/43, Continuously Callable @100 | 3,500 | 4,249 | |||||||||
Series WW, 5.25%, 6/15/40, Continuously Callable @100 | 2,835 | 3,247 | |||||||||
Series WW, 5.25%, 6/15/40, Pre-refunded 6/15/25 @ 100 | 165 | 194 | |||||||||
| New Jersey Economic Development Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 6/1/42, Continuously Callable @100 | 1,200 | 1,421 | |||||||||
| New Jersey Educational Facilities Authority Revenue Series B, 5.00%, 9/1/36, Continuously Callable @100 | 5,000 | 5,934 | |||||||||
Series F, 5.00%, 7/1/47, Continuously Callable @100 | 3,000 | 3,357 | |||||||||
| New Jersey Health Care Facilities Financing Authority Revenue, 5.00%, 10/1/38, Continuously Callable @100 | 2,250 | 2,669 | |||||||||
| New Jersey Health Care Facilities Financing Authority Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 7/1/46, Continuously Callable @100 | 1,250 | 1,383 | |||||||||
| New Jersey Transportation Trust Fund Authority Revenue 5.25%, 6/15/43, Continuously Callable @100 | 4,000 | 4,981 | |||||||||
Series A, 5.00%, 12/15/36, Continuously Callable @100 | 2,125 | 2,607 | |||||||||
Series AA, 5.25%, 6/15/41, Continuously Callable @100 | 2,000 | 2,304 | |||||||||
Series AA, 4.00%, 6/15/50, Continuously Callable @100 | 3,000 | 3,426 | |||||||||
Series BB, 4.00%, 6/15/50, Continuously Callable @100 | 15,000 | 16,802 | |||||||||
| New Jersey Turnpike Authority Revenue, Series A, 4.00%, 1/1/51, Continuously Callable @100 | 1,000 | 1,160 | |||||||||
| South Jersey Transportation Authority Revenue, Series A, 4.00%, 11/1/50, Continuously Callable @100 | 7,000 | 7,945 | |||||||||
| Tobacco Settlement Financing Corp. Revenue, Series A, 5.25%, 6/1/46, Continuously Callable @100 | 3,000 | 3,611 | |||||||||
114,927 | |||||||||||
New Mexico (0.4%): | |||||||||||
| New Mexico Hospital Equipment Loan Council Revenue, Series LA, 5.00%, 7/1/49, Continuously Callable @102 | 8,625 | 9,679 | |||||||||
New York (2.3%): | |||||||||||
| Metropolitan Transportation Authority Revenue Series A, 11/15/32 (g) | 5,000 | 4,076 | |||||||||
Series A-2, 5.00%, 11/15/45, (Put Date 5/15/30) (c) | 5,490 | 6,985 | |||||||||
| New York Liberty Development Corp. Revenue 5.25%, 10/1/35 | 16,130 | 22,672 | |||||||||
2.80%, 9/15/69, Continuously Callable @100 | 1,500 | 1,532 | |||||||||
| New York State Dormitory Authority Revenue Series A, 4.00%, 3/15/47, Continuously Callable @100 | 5,000 | 5,773 | |||||||||
Series A, 4.00%, 9/1/50, Continuously Callable @100 | 3,000 | 3,386 | |||||||||
See notes to financial statements.
14
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| New York State Thruway Authority Revenue, Series A, 5.00%, 1/1/51, Continuously Callable @100 | $ | 2,000 | $ | 2,304 | |||||||
| Triborough Bridge & Tunnel Authority Revenue Series A, 11/15/31 (g) | 5,000 | 4,152 | |||||||||
Series A, 11/15/32 (g) | 3,000 | 2,412 | |||||||||
Series B, 11/15/32 (g) | 2,500 | 2,042 | |||||||||
TSASC, Inc. Revenue Bonds, Series A, 5.00%, 6/1/41, Continuously Callable @100 | 1,000 | 1,165 | |||||||||
56,499 | |||||||||||
North Carolina (0.2%): | |||||||||||
| North Carolina Medical Care Commission Revenue, 5.00%, 1/1/49, Continuously Callable @104 | 2,725 | 3,050 | |||||||||
| North Carolina Medical Care Commission Revenue Bonds, Series A, 4.00%, 10/1/50, Continuously Callable @103 | 1,000 | 1,107 | |||||||||
4,157 | |||||||||||
North Dakota (0.7%): | |||||||||||
City of Fargo Revenue, 6.25%, 11/1/31, Pre-refunded 11/1/21 @ 100 | 4,685 | 4,706 | |||||||||
City of Grand Forks Nd Revenue, 4.00%, 12/1/51, Continuously Callable @100 | 1,000 | 1,134 | |||||||||
County of Ward Revenue, Series C, 5.00%, 6/1/43, Continuously Callable @100 | 7,500 | 8,893 | |||||||||
| University of North Dakota Cerificate Participation, Series A, 4.00%, 6/1/51, Continuously Callable @100 | 1,500 | 1,700 | |||||||||
16,433 | |||||||||||
Ohio (2.5%): | |||||||||||
City of Centerville Revenue, 5.25%, 11/1/47, Continuously Callable @100 | 2,700 | 3,031 | |||||||||
| City of Cleveland Airport System Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 1/1/31, Pre-refunded 1/1/22 @ 100 | 1,000 | 1,012 | |||||||||
| City of Middleburg Heights Revenue, Series A, 4.00%, 8/1/47, Continuously Callable @100 | 2,000 | 2,263 | |||||||||
County of Cuyahoga Revenue, 4.75%, 2/15/47, Continuously Callable @100 | 9,000 | 10,388 | |||||||||
| County of Franklin Revenue Bonds, Series B, 5.00%, 7/1/45, Continuously Callable @103 | 5,000 | 5,830 | |||||||||
County of Hamilton Revenue, 5.00%, 1/1/51, Continuously Callable @100 | 2,500 | 2,702 | |||||||||
County of Lake Revenue, 5.63%, 8/15/29, Continuously Callable @100 | 320 | 321 | |||||||||
County of Lucas Revenue, 5.25%, 11/15/48, Continuously Callable @100 | 6,000 | 7,202 | |||||||||
| County of Montgomery Revenue 4.00%, 11/15/42, Continuously Callable @100 | 2,500 | 2,819 | |||||||||
4.00%, 11/15/45, Continuously Callable @100 | 2,000 | 2,241 | |||||||||
| County of Ross Revenue 5.00%, 12/1/44, Continuously Callable @100 | 3,100 | 3,812 | |||||||||
5.00%, 12/1/49, Continuously Callable @100 | 6,000 | 7,260 | |||||||||
Ohio Air Quality Development Authority Revenue, 8/1/30 (j) (m) | 6,000 | — | |||||||||
| Ohio Higher Educational Facility Commission Revenue, 5.25%, 1/1/48, Continuously Callable @104 | 1,000 | 1,032 | |||||||||
| Ohio Turnpike & Infrastructure Commission Revenue, 5.25%, 2/15/33, Continuously Callable @100 | 2,000 | 2,131 | |||||||||
| State of Ohio Revenue 4.00%, 11/15/40, Continuously Callable @100 | 655 | 751 | |||||||||
Series A, 4.00%, 1/15/50, Continuously Callable @100 | 7,000 | 7,733 | |||||||||
60,528 | |||||||||||
See notes to financial statements.
15
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Oklahoma (1.2%): | |||||||||||
| Comanche County Hospital Authority Revenue, Series A, 5.00%, 7/1/32, Continuously Callable @100 | $ | 4,200 | $ | 4,292 | |||||||
| Garfield County Industrial Authority Revenue, Series A, 0.13%, 1/1/25, Callable 11/3/21 @ 100 (d) (k) | 1,000 | 1,000 | |||||||||
| Norman Regional Hospital Authority Revenue, 4.00%, 9/1/45, Continuously Callable @100 | 4,250 | 4,765 | |||||||||
| Oklahoma Development Finance Authority Revenue, Series B, 5.50%, 8/15/57, Continuously Callable @100 | 4,250 | 5,182 | |||||||||
| Oklahoma Municipal Power Authority Revenue Series A, 4.00%, 1/1/47, Continuously Callable @100 | 1,000 | 1,170 | |||||||||
Series A, 4.00%, 1/1/47, Continuously Callable @100 | 10,000 | 11,008 | |||||||||
| Tulsa County Industrial Authority Revenue, 5.25%, 11/15/45, Continuously Callable @102 | 2,000 | 2,267 | |||||||||
29,684 | |||||||||||
Oregon (0.5%): | |||||||||||
City of Keizer Special Assessment, 5.20%, 6/1/31, Continuously Callable @100 | 810 | 813 | |||||||||
| Deschutes County Hospital Facilities Authority Revenue, 4.00%, 1/1/46, Continuously Callable @100 | 2,000 | 2,163 | |||||||||
| Medford Hospital Facilities Authority Revenue, Series A, 4.00%, 8/15/50, Continuously Callable @100 | 3,800 | 4,381 | |||||||||
| Oregon State Facilities Authority Revenue, 4.00%, 10/1/51, Continuously Callable @100 | 1,000 | 1,137 | |||||||||
| Salem Hospital Facility Authority Revenue, 5.00%, 5/15/53, Continuously Callable @102 | 1,000 | 1,140 | |||||||||
| Yamhill County Hospital Authority Revenue 5.00%, 11/15/51, Continuously Callable @102 | 1,180 | 1,257 | |||||||||
Series B-2, 2.13%, 11/15/27, Continuously Callable @100 | 1,000 | 978 | |||||||||
Series B-3, 1.75%, 11/15/26, Continuously Callable @100 | 1,000 | 985 | |||||||||
12,854 | |||||||||||
Pennsylvania (8.8%): | |||||||||||
| Adams County General Authority Revenue, 4.00%, 8/15/45, Continuously Callable @100 | 7,400 | 8,489 | |||||||||
| Allegheny County Hospital Development Authority Revenue, 5.00%, 4/1/47, Continuously Callable @100 | 6,500 | 7,800 | |||||||||
| Allegheny County Sanitary Authority Revenue, 5.00%, 6/1/43, Continuously Callable @100 | 3,170 | 3,855 | |||||||||
| Allentown Commercial & IDA Revenue, 6.25%, 7/1/47, Continuously Callable @100 (f) | 5,000 | 5,242 | |||||||||
| Altoona Area School District, GO (INS — Build America Mutual Assurance Co.), 5.00%, 12/1/45, Pre-refunded 12/1/25 @ 100 | 1,000 | 1,185 | |||||||||
| Altoona Area School District, GO (INS-Build America Mutual Assurance Co.), 5.00%, 12/1/48, Pre-refunded 12/1/25 @ 100 | 300 | 355 | |||||||||
| Armstrong School District, GO Series A, 4.00%, 3/15/38, Continuously Callable @100 | 1,000 | 1,158 | |||||||||
Series A, 4.00%, 3/15/41, Continuously Callable @100 | 2,250 | 2,595 | |||||||||
| Berks County IDA Revenue 5.00%, 5/15/48, Continuously Callable @102 | 1,000 | 1,114 | |||||||||
5.00%, 11/1/50, Continuously Callable @100 | 8,500 | 9,333 | |||||||||
See notes to financial statements.
16
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Bucks County IDA Revenue, 4.00%, 8/15/50, Continuously Callable @100 | $ | 3,000 | $ | 3,289 | |||||||
| Canon Mcmillan School District, GO 4.00%, 6/1/48, Continuously Callable @100 | 4,605 | 5,138 | |||||||||
4.00%, 6/1/50, Continuously Callable @100 | 6,065 | 6,698 | |||||||||
| Chester County IDA Revenue, Series A, 5.25%, 10/15/47, Continuously Callable @100 | 3,250 | 3,637 | |||||||||
| Commonwealth Financing Authority Revenue, 5.00%, 6/1/35, Continuously Callable @100 | 500 | 607 | |||||||||
| Commonwealth of Pennsylvania Certificate of Participation, Series A, 5.00%, 7/1/43, Continuously Callable @100 | 1,000 | 1,211 | |||||||||
County of Lehigh Revenue, 4.00%, 7/1/49, Continuously Callable @100 | 15,000 | 17,041 | |||||||||
Delaware County Authority Revenue, 5.00%, 10/1/39, Continuously Callable @100 | 2,250 | 2,691 | |||||||||
| Delaware River Joint Toll Bridge Commission Revenue, 5.00%, 7/1/47, Continuously Callable @100 | 5,000 | 6,005 | |||||||||
Lancaster IDA Revenue, 4.00%, 7/1/51, Continuously Callable @103 | 1,000 | 1,077 | |||||||||
| Montgomery County Higher Education & Health Authority Revenue 4.00%, 9/1/49, Continuously Callable @100 | 2,500 | 2,828 | |||||||||
4.00%, 9/1/51, Continuously Callable @100 | 3,500 | 3,957 | |||||||||
| Montgomery County IDA Revenue 5.00%, 12/1/48, Continuously Callable @102 | 2,000 | 2,270 | |||||||||
5.00%, 12/1/49, Continuously Callable @103 | 2,000 | 2,295 | |||||||||
| Northampton County General Purpose Authority Revenue 4.00%, 8/15/40, Continuously Callable @100 | 4,000 | 4,374 | |||||||||
5.00%, 8/15/48, Continuously Callable @100 | 2,440 | 2,891 | |||||||||
| Northeastern Pennsylvania Hospital & Education Authority Revenue 5.00%, 5/1/44, Continuously Callable @100 | 1,000 | 1,178 | |||||||||
5.00%, 5/1/49, Continuously Callable @100 | 1,350 | 1,564 | |||||||||
| Pennsylvania Economic Development Financing Authority Revenue 4.00%, 7/1/46, Continuously Callable @103 | 1,000 | 1,108 | |||||||||
Series A, 4.00%, 10/15/51, Continuously Callable @100 | 2,320 | 2,688 | |||||||||
| Pennsylvania Higher Educational Facilities Authority Revenue Series A, 5.25%, 7/15/33, Pre-refunded 7/15/23 @ 100 | 1,970 | 2,147 | |||||||||
Series A, 5.50%, 7/15/38, Pre-refunded 7/15/23 @ 100 | 2,750 | 3,009 | |||||||||
Series A, 4.00%, 7/15/51, Continuously Callable @100 | 2,250 | 2,564 | |||||||||
| Pennsylvania Turnpike Commission Revenue 5.00%, 12/1/37, Continuously Callable @100 | 1,000 | 1,214 | |||||||||
Series A, 4.00%, 12/1/49, Continuously Callable @100 | 5,000 | 5,630 | |||||||||
Series A-1, 5.00%, 12/1/46, Continuously Callable @100 | 3,000 | 3,453 | |||||||||
Series A-1, 5.00%, 12/1/47, Continuously Callable @100 | 4,000 | 4,824 | |||||||||
Series A-2, 5.00%, 12/1/33, Continuously Callable @100 | 1,250 | 1,555 | |||||||||
Series B, 5.00%, 6/1/39, Continuously Callable @100 | 8,000 | 9,432 | |||||||||
Series B, 5.00%, 12/1/43, Continuously Callable @100 | 5,000 | 6,124 | |||||||||
Series B, 5.25%, 12/1/44, Continuously Callable @100 | 10,000 | 11,324 | |||||||||
Series B, 4.00%, 12/1/51, Continuously Callable @100 | 1,500 | 1,731 | |||||||||
Series B, 4.00%, 12/1/51, Continuously Callable @100 | 9,000 | 10,438 | |||||||||
Series B-1, 5.00%, 6/1/42, Continuously Callable @100 | 4,000 | 4,775 | |||||||||
| Philadelphia School District, General Obligation Bonds, Series A, 5.00%, 9/1/44, Continuously Callable @100 | 10,000 | 12,303 | |||||||||
| Pittsburgh Water & Sewer Authority Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 9/1/44, Continuously Callable @100 | 5,000 | 6,291 | |||||||||
See notes to financial statements.
17
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Reading School District, GO (INS — Build America Mutual Assurance Co.), Series A, 4.00%, 4/1/44, Continuously Callable @100 | $ | 1,055 | $ | 1,227 | |||||||
| School District of Philadelphia, GO Series B, 5.00%, 9/1/43, Continuously Callable @100 | 2,500 | 3,044 | |||||||||
Series F, 5.00%, 9/1/37, Continuously Callable @100 | 1,000 | 1,188 | |||||||||
Series F, 5.00%, 9/1/38, Continuously Callable @100 | 2,000 | 2,359 | |||||||||
| Scranton School District, GO (INS — Build America Mutual Assurance Co.), Series E, 4.00%, 12/1/37, Continuously Callable @100 | 1,025 | 1,163 | |||||||||
| Wilkes-Barre Area School District, GO (INS — Build America Mutual Assurance Co.) 4.00%, 4/15/49, Continuously Callable @100 | 750 | 847 | |||||||||
5.00%, 4/15/59, Continuously Callable @100 | 3,000 | 3,629 | |||||||||
213,944 | |||||||||||
Puerto Rico (0.1%): | |||||||||||
| Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Authority Revenue, 5.38%, 4/1/42, Continuously Callable @100 | 2,000 | 2,028 | |||||||||
Rhode Island (0.1%): | |||||||||||
| Rhode Island Health & Educational Building Corp. Revenue, 6.00%, 9/1/33, Pre-refunded 9/1/23 @ 100 | 2,000 | 2,220 | |||||||||
| Rhode Island Housing & Mortgage Finance Corp. Revenue, Series 15-A, 6.85%, 10/1/24, Continuously Callable @100 | 180 | 181 | |||||||||
2,401 | |||||||||||
South Carolina (0.7%): | |||||||||||
| City of Rock Hill Combined Utility System Revenue, Series A, 4.00%, 1/1/49, Continuously Callable @100 | 2,500 | 2,796 | |||||||||
| Patriots Energy Group Revenue Series A, 4.00%, 6/1/46, Continuously Callable @100 | 1,000 | 1,149 | |||||||||
Series A, 4.00%, 6/1/51, Continuously Callable @100 | 1,000 | 1,147 | |||||||||
| South Carolina Jobs-Economic Development Authority Revenue 5.00%, 11/15/47, Continuously Callable @103 | 1,850 | 2,149 | |||||||||
5.00%, 4/1/54, Continuously Callable @103 | 1,000 | 1,132 | |||||||||
4.00%, 4/1/54, Continuously Callable @103 | 1,165 | 1,259 | |||||||||
| South Carolina Public Service Authority Revenue, Series E, 5.25%, 12/1/55, Continuously Callable @100 | 7,000 | 8,179 | |||||||||
17,811 | |||||||||||
South Dakota (0.0%): (a) | |||||||||||
| Educational Enhancement Funding Corp. Revenue, Series B, 5.00%, 6/1/27, Pre-refunded 6/1/23 @ 100 | 500 | 539 | |||||||||
Tennessee (0.6%): | |||||||||||
| Greeneville Health & Educational Facilities Board Revenue, 5.00%, 7/1/44, Continuously Callable @100 | 2,000 | 2,417 | |||||||||
| Johnson City Health & Educational Facilities Board Revenue, 5.00%, 8/15/42, Continuously Callable @100 | 2,000 | 2,075 | |||||||||
| Metropolitan Government Nashville & Davidson Country Health & Educational Facilities Board Revenue, 4.00%, 10/1/51, Continuously Callable @100 | 1,000 | 1,093 | |||||||||
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue 5.00%, 10/1/45, Continuously Callable @100 | 1,500 | 1,719 | |||||||||
5.00%, 7/1/46, Continuously Callable @100 | 4,000 | 4,680 | |||||||||
See notes to financial statements.
18
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Metropolitan Nashville Airport Authority Revenue, Series A, 4.00%, 7/1/54, Continuously Callable @100 | $ | 2,000 | $ | 2,302 | |||||||
14,286 | |||||||||||
Texas (17.4%): | |||||||||||
| Arlington Higher Education Finance Corp. Revenue (NBGA — Texas Permanent School Fund) 4.00%, 8/15/43, Continuously Callable @100 | 10,000 | 11,448 | |||||||||
Series A, 5.00%, 2/15/41, Continuously Callable @100 | 3,000 | 3,492 | |||||||||
Series A, 5.00%, 12/1/53, Continuously Callable @100 | 7,200 | 8,349 | |||||||||
| Arlington Higher Education Finance Corp. Revenue (NBGA — Texas Permanent School Fund), 4.00%, 8/15/44, Continuously Callable @100 | 2,170 | 2,473 | |||||||||
| Bexar County Health Facilities Development Corp. Revenue 5.00%, 7/15/42, Continuously Callable @105 | 600 | 666 | |||||||||
4.00%, 7/15/45, Continuously Callable @100 | 8,450 | 9,004 | |||||||||
| Central Texas Regional Mobility Authority Revenue 4.00%, 1/1/41, Continuously Callable @100 | 5,000 | 5,487 | |||||||||
5.00%, 1/1/42, Pre-refunded 1/1/23 @ 100 | 2,500 | 2,648 | |||||||||
Series A, 5.00%, 1/1/45, Continuously Callable @100 | 3,500 | 3,999 | |||||||||
| Central Texas Turnpike System Revenue Series A, 5.00%, 8/15/41, Pre-refunded 8/15/22 @ 100 | 3,850 | 4,009 | |||||||||
Series C, 5.00%, 8/15/42, Continuously Callable @100 | 6,500 | 7,260 | |||||||||
| Central Texas Turnpike System Revenue (INS — AMBAC Assurance Corp.), Series A, 8/15/30 (g) | 18,530 | 15,966 | |||||||||
| City of Arlington Special Tax (INS-Assured Guaranty Municipal Corp.), Series A, 5.00%, 2/15/48, Continuously Callable @100 | 7,500 | 9,033 | |||||||||
| City of Corpus Christi Utility System Revenue, 4.00%, 7/15/39, Continuously Callable @100 | 5,900 | 6,625 | |||||||||
| City of Garland Texas Electric Utility System Revenue, Series A, 4.00%, 3/1/51, Continuously Callable @100 | 1,000 | 1,153 | |||||||||
| City of Houston Hotel Occupancy Tax & Special Revenue, 5.00%, 9/1/40, Continuously Callable @100 | 3,715 | 4,137 | |||||||||
| City of Laredo Waterworks & Sewer System Revenue, 4.00%, 3/1/41, Continuously Callable @100 | 700 | 772 | |||||||||
| City of Lubbock Texas Electric Light & Power System Revenue, 4.00%, 4/15/51, Continuously Callable @100 | 11,000 | 12,552 | |||||||||
| Clifton Higher Education Finance Corp. Revenue 6.00%, 8/15/33, Continuously Callable @100 | 1,000 | 1,098 | |||||||||
6.00%, 8/15/43, Continuously Callable @100 | 2,750 | 3,003 | |||||||||
| Clifton Higher Education Finance Corp. Revenue (NBGA — Texas Permanent School Fund) 5.00%, 8/15/39, Continuously Callable @100 | 4,250 | 4,758 | |||||||||
4.00%, 8/15/44, Continuously Callable @100 | 11,000 | 12,583 | |||||||||
5.00%, 8/15/48, Continuously Callable @100 | 10,000 | 12,203 | |||||||||
| County of Bexar Revenue 4.00%, 8/15/44, Continuously Callable @100 | 500 | 564 | |||||||||
4.00%, 8/15/49, Continuously Callable @100 | 1,700 | 1,888 | |||||||||
Del Mar College District, GO, Series A, 5.00%, 8/15/48, Continuously Callable @100 | 6,500 | 7,619 | |||||||||
| Everman Independent School District, GO (NBGA — Texas Permanent School Fund), 4.00%, 2/15/50, Continuously Callable @100 | 4,500 | 5,214 | |||||||||
See notes to financial statements.
19
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Grand Parkway Transportation Corp. Revenue, 4.00%, 10/1/49, Continuously Callable @100 | $ | 2,000 | $ | 2,288 | |||||||
| Greater Texas Cultural Education Facilities Finance Corp. Revenue, 4.00%, 3/1/50, Continuously Callable @100 | 2,000 | 2,300 | |||||||||
| Harris County Cultural Education Facilities Finance Corp. Revenue, 5.00%, 6/1/38, Continuously Callable @100 | 6,100 | 6,375 | |||||||||
| Harris County Hospital District Revenue, 4.00%, 2/15/42, Continuously Callable @100 | 15,000 | 16,442 | |||||||||
| Houston Higher Education Finance Corp. Revenue, Series A, 5.00%, 9/1/42, Pre-refunded 9/1/22 @ 100 | 10,000 | 10,436 | |||||||||
| Karnes County Hospital District Revenue, 5.00%, 2/1/44, Continuously Callable @100 | 6,000 | 6,557 | |||||||||
| Kerrville Health Facilities Development Corp. Revenue, 5.00%, 8/15/35, Continuously Callable @100 | 1,900 | 2,194 | |||||||||
| Matagorda County Navigation District No. 1 Revenue 4.00%, 6/1/30, Continuously Callable @100 | 6,000 | 6,315 | |||||||||
4.00%, 6/1/30, Continuously Callable @100 | 9,615 | 10,120 | |||||||||
| Midlothian Independent School District, GO (NBGA — Texas Permanent School Fund), 5.00%, 2/15/47, Continuously Callable @100 | 15,000 | 17,835 | |||||||||
| New Hope Cultural Education Facilities Finance Corp. Revenue 5.00%, 4/1/48, Pre-refunded 4/1/26 @ 100 | 1,250 | 1,492 | |||||||||
4.00%, 11/1/55, Continuously Callable @103 | 1,250 | 1,401 | |||||||||
Series A, 2.25%, 7/1/47, Continuously Callable @100 (n) | 6,000 | 5,129 | |||||||||
| New Hope Cultural Education Facilities Finance Corp. Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 7/1/48, Continuously Callable @100 | 1,000 | 1,197 | |||||||||
| North Fort Bend Water Authority Revenue, 5.00%, 12/15/36, Continuously Callable @100 | 5,000 | 5,047 | |||||||||
| North Texas Tollway Authority Revenue 5.00%, 1/1/48, Continuously Callable @100 | 2,000 | 2,410 | |||||||||
5.00%, 1/1/50, Continuously Callable @100 | 1,750 | 2,102 | |||||||||
Series B, 9/1/37, Pre-refunded 9/1/31 @ 64.1040 (g) | 3,000 | 1,601 | |||||||||
Series B, 5.00%, 1/1/45, Continuously Callable @100 | 5,000 | 5,641 | |||||||||
| North Texas Tollway Authority Revenue (INS — National Public Finance Guarantee Corp.), Series B, 5.00%, 1/1/48, Continuously Callable @100 | 5,000 | 5,894 | |||||||||
| Port of Port Arthur Navigation District, Series A, 0.12%, 4/1/40, Continuously Callable @100 (d) | 1,115 | 1,115 | |||||||||
| Port of Port Arthur Navigation District Revenue, 0.11%, 11/1/40, Continuously Callable @100 (d) (k) | 21,000 | 21,000 | |||||||||
| Port of Port Arthur Navigation District Revenue Bonds Series B, 0.12%, 4/1/40, Continuously Callable @100 (d) | 3,060 | 3,060 | |||||||||
Series C, 0.13%, 4/1/40, Continuously Callable @100 (d) | 18,370 | 18,370 | |||||||||
| Princeton Independent School District, GO (NBGA — Texas Permanent School Fund), 5.00%, 2/15/48, Continuously Callable @100 | 7,000 | 8,563 | |||||||||
| Prosper Independent School District, GO (NBGA — Texas Permanent School Fund), 5.00%, 2/15/48, Continuously Callable @100 | 15,000 | 18,317 | |||||||||
| Red River Education Finance Corp. Revenue 4.00%, 6/1/41, Continuously Callable @100 | 2,000 | 2,177 | |||||||||
5.50%, 10/1/46, Continuously Callable @100 | 3,000 | 3,483 | |||||||||
| San Antonio Education Facilities Corp. Revenue, 4.00%, 4/1/54, Continuously Callable @100 | 1,000 | 1,111 | |||||||||
See notes to financial statements.
20
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Tarrant County Cultural Education Facilities Finance Corp. Revenue 11/15/27, Continuously Callable @100 (n) (o) | $ | 6,315 | $ | 3,093 | |||||||
| 11/15/37, Continuously Callable @100 (n) (o) | 4,000 | 1,983 | |||||||||
5.00%, 11/15/46, Continuously Callable @100 | 1,000 | 1,148 | |||||||||
Series A, 11/15/45, Continuously Callable @100 (n) | 4,500 | 3,596 | |||||||||
Series B, 11/15/36, Continuously Callable @100 (n) | 3,600 | 3,125 | |||||||||
Series B, 5.00%, 11/15/46, Continuously Callable @100 | 7,000 | 7,905 | |||||||||
Series B, 5.00%, 7/1/48, Continuously Callable @100 | 10,000 | 12,149 | |||||||||
Texas Municipal Gas Acquisition & Supply Corp. III Revenue, 5.00%, 12/15/32 | 2,000 | 2,696 | |||||||||
| Texas Transportation Commission Revenue, 5.00%, 8/1/57, Continuously Callable @100 | 5,000 | 5,736 | |||||||||
| Uptown Development Authority Tax Allocation 5.00%, 9/1/37, Continuously Callable @100 | 4,365 | 4,958 | |||||||||
5.00%, 9/1/40, Continuously Callable @100 | 2,490 | 2,821 | |||||||||
Series A, 5.00%, 9/1/39, Continuously Callable @100 | 1,645 | 1,901 | |||||||||
| Waco Educational Finance Corp. Revenue, 4.00%, 3/1/51, Continuously Callable @100 | 4,000 | 4,620 | |||||||||
| West Harris County Regional Water Authority Revenue 4.00%, 12/15/45, Continuously Callable @100 | 1,600 | 1,835 | |||||||||
4.00%, 12/15/49, Continuously Callable @100 | 3,945 | 4,502 | |||||||||
| Wood County Central Hospital District Revenue, 6.00%, 11/1/41, Pre-refunded 11/1/21 @ 100 | 4,770 | 4,791 | |||||||||
| Ysleta Independent School District, GO (NBGA — Texas Permanent School Fund), 4.00%, 8/15/52, Continuously Callable @100 | 5,000 | 5,744 | |||||||||
420,578 | |||||||||||
Utah (0.1%): | |||||||||||
| Military Installation Development Authority Revenue Bonds, Series A-1, 4.00%, 6/1/52, Continuously Callable @103 | 1,000 | 1,014 | |||||||||
| Utah Charter School Finance Authority Revenue, Series A, 4.00%, 10/15/51, Continuously Callable @100 | 1,550 | 1,787 | |||||||||
2,801 | |||||||||||
Vermont (0.2%): | |||||||||||
| Vermont Economic Development Authority Revenue Bonds, 4.00%, 5/1/45, Continuously Callable @103 (e) | 1,350 | 1,447 | |||||||||
| Vermont Educational & Health Buildings Financing Agency Revenue, 5.00%, 10/15/46, Continuously Callable @100 | 3,000 | 3,378 | |||||||||
4,825 | |||||||||||
Virginia (0.5%): | |||||||||||
| Alexandria IDA Revenue 5.00%, 10/1/45, Continuously Callable @100 | 2,600 | 2,920 | |||||||||
5.00%, 10/1/50, Continuously Callable @100 | 2,400 | 2,700 | |||||||||
| Lewistown Commerce Center Community Development Authority Tax Allocation 3.63%, 3/1/44, Continuously Callable @103 (n) | 3,486 | 2,858 | |||||||||
6.05%, 3/1/44, Continuously Callable @103 | 1,657 | 1,369 | |||||||||
Series C, 0.50%, 3/1/54, Continuously Callable @100 (n) | 5,697 | 1,037 | |||||||||
10,884 | |||||||||||
See notes to financial statements.
21
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Washington (1.2%): | |||||||||||
| King County Public Hospital District No. 1, GO, 5.00%, 12/1/43, Continuously Callable @100 | $ | 9,000 | $ | 11,042 | |||||||
| King County Public Hospital District No. 2, GO, Series A, 4.00%, 12/1/45, Continuously Callable @100 | 4,000 | 4,560 | |||||||||
| Washington Health Care Facilities Authority Revenue, 4.00%, 7/1/42, Continuously Callable @100 | 5,500 | 6,157 | |||||||||
| Washington Higher Education Facilities Authority Revenue, 4.00%, 5/1/50, Continuously Callable @100 | 1,250 | 1,414 | |||||||||
| Washington State Housing Finance Commission Revenue 5.00%, 1/1/43, Continuously Callable @102 (f) | 3,055 | 3,547 | |||||||||
Series A-1, 3.50%, 12/20/35 | 995 | 1,144 | |||||||||
27,864 | |||||||||||
West Virginia (0.1%): | |||||||||||
| West Virginia Hospital Finance Authority Revenue, 5.00%, 1/1/43, Continuously Callable @100 | 2,000 | 2,402 | |||||||||
Wisconsin (2.8%): | |||||||||||
| City of Kaukauna Electric System Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 12/15/35, Pre-refunded 12/15/22 @ 100 | 7,800 | 8,252 | |||||||||
| Public Finance Authority Revenue 5.25%, 5/15/42, Continuously Callable @102 (f) | 2,200 | 2,409 | |||||||||
5.00%, 7/1/44, Continuously Callable @100 | 6,000 | 7,254 | |||||||||
5.00%, 11/15/44, Continuously Callable @103 | 460 | 538 | |||||||||
4.00%, 1/1/45, Continuously Callable @100 | 1,500 | 1,703 | |||||||||
5.00%, 7/1/47, Continuously Callable @100 | 1,000 | 1,094 | |||||||||
5.00%, 6/15/49, Continuously Callable @100 | 1,480 | 1,721 | |||||||||
5.00%, 6/15/49, Continuously Callable @100 (f) | 520 | 564 | |||||||||
5.00%, 11/15/49, Continuously Callable @103 | 2,400 | 2,787 | |||||||||
4.00%, 2/1/51, Continuously Callable @100 | 1,500 | 1,691 | |||||||||
4.00%, 7/1/51, Continuously Callable @100 | 1,000 | 1,099 | |||||||||
5.00%, 7/1/52, Continuously Callable @100 | 1,000 | 1,087 | |||||||||
5.00%, 6/15/53, Continuously Callable @100 | 1,000 | 1,157 | |||||||||
5.00%, 6/15/54, Continuously Callable @100 (f) | 455 | 493 | |||||||||
Series A, 5.25%, 10/1/43, Continuously Callable @100 | 3,090 | 3,602 | |||||||||
Series A, 4.00%, 10/1/47, Continuously Callable @100 | 4,740 | 5,378 | |||||||||
Series A, 4.00%, 10/1/49, Continuously Callable @100 | 11,000 | 12,221 | |||||||||
Series A, 4.00%, 7/1/56, Continuously Callable @100 | 2,250 | 2,538 | |||||||||
| Public Finance Authority Revenue (INS — Assured Guaranty Municipal Corp.) 5.00%, 7/1/54, Continuously Callable @100 | 1,285 | 1,523 | |||||||||
5.00%, 7/1/58, Continuously Callable @100 | 1,500 | 1,778 | |||||||||
| Wisconsin Health & Educational Facilities Authority Revenue 5.00%, 7/1/49, Continuously Callable @100 | 1,000 | 1,158 | |||||||||
5.00%, 3/15/50, Continuously Callable @100 | 1,175 | 1,352 | |||||||||
Series A, 5.00%, 9/15/50, Continuously Callable @100 | 5,000 | 5,261 | |||||||||
Series B, 5.00%, 9/15/45, Continuously Callable @100 | 1,000 | 1,033 | |||||||||
67,693 | |||||||||||
Total Municipal Bonds (Cost $2,250,394) | 2,406,612 | ||||||||||
Total Investments (Cost $2,250,455) — 99.5% | 2,406,710 | ||||||||||
Other assets in excess of liabilities — 0.5% | 12,254 | ||||||||||
NET ASSETS — 100.00% | $ | 2,418,964 | |||||||||
See notes to financial statements.
22
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
(a) Amount represents less than 0.05% of net assets.
(b) Non-income producing security.
(c) Put Bond.
(d) 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.
(e) Security or portion of security purchased on a delayed-delivery and/or when-issued basis.
(f) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $77,493 (thousands) and amounted to 3.2% of net assets.
(g) Zero-coupon bond.
(h) Stepped-coupon security converts to coupon form on 8/1/24 with a rate of 5.95%.
(i) Stepped-coupon security converts to coupon form on 8/1/24 with a rate of 6.05%.
(j) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of September 30, 2021, illiquid securities were 0.4% of net assets.
(k) All or a portion of this security has been segregated as collateral for securities purchased on a delayed-delivery and/or when-issued basis.
(l) Variable or Floating-Rate Security. Rate disclosed is as of September 30, 2021.
(m) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.0% of net assets as of September 30, 2021. This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements).
(n) Currently the issuer is in default with respect to interest and/or principal payments.
(o) Security is in bankruptcy.
AMBAC — American Municipal Bond Assurance Corporation
bps — Basis points
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
IDA — Industrial Development Authority
MUNIPSA — Municipal Swap Index
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.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
See notes to financial statements.
23
| USAA Mutual Funds Trust USAA Tax Exempt Long-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
24
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Tax Exempt Long-Term Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $2,250,455) | $ | 2,406,710 | |||||
Cash | 94 | ||||||
Receivables: | |||||||
Interest and dividends | 24,802 | ||||||
Capital shares issued | 135 | ||||||
Prepaid expenses | 23 | ||||||
Total Assets | 2,431,764 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | 746 | ||||||
Investments purchased | 6,470 | ||||||
Capital shares redeemed | 4,507 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 574 | ||||||
Administration fees | 301 | ||||||
Custodian fees | 16 | ||||||
Transfer agent fees | 81 | ||||||
Compliance fees | 1 | ||||||
Trustees' fees | — | (a) | |||||
| 12b-1 fees | — | (a) | |||||
Other accrued expenses | 104 | ||||||
Total Liabilities | 12,800 | ||||||
Net Assets: | |||||||
Capital | 2,324,748 | ||||||
Total accumulated earnings/(loss) | 94,216 | ||||||
Net Assets | $ | 2,418,964 | |||||
Net Assets | |||||||
Fund Shares | $ | 2,409,515 | |||||
Institutional Shares | 6,080 | ||||||
Class A | 3,369 | ||||||
Total | $ | 2,418,964 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 174,071 | ||||||
Institutional Shares | 439 | ||||||
Class A | 244 | ||||||
Total | 174,754 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Fund Shares | $ | 13.84 | |||||
Institutional Shares | $ | 13.84 | |||||
Class A | $ | 13.82 | |||||
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 | $ | 14.14 | |||||
(a) Rounds to less than $1 thousand.
(b) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
25
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Tax Exempt Long-Term Fund | |||||||
Investment Income: | |||||||
Interest | $ | 38,587 | |||||
Total Income | 38,587 | ||||||
Expenses: | |||||||
Investment advisory fees | 3,519 | ||||||
Administration fees — Fund Shares | 1,834 | ||||||
Administration fees — Institutional Shares | 3 | ||||||
Administration fees — Class A | 3 | ||||||
Sub-Administration fees | 14 | ||||||
| 12b-1 fees — Class A | 5 | ||||||
Custodian fees | 48 | ||||||
Transfer agent fees — Fund Shares | 314 | ||||||
Transfer agent fees — Institutional Shares | 3 | ||||||
Transfer agent fees — Class A | 2 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 8 | ||||||
Legal and audit fees | 29 | ||||||
State registration and filing fees | 36 | ||||||
Interfund lending fees | — | (a) | |||||
Other expenses | 155 | ||||||
Recoupment of prior expenses waived/reimbursed by Adviser | 15 | ||||||
Total Expenses | 6,012 | ||||||
Expenses waived/reimbursed by Adviser | (22 | ) | |||||
Net Expenses | 5,990 | ||||||
Net Investment Income (Loss) | 32,597 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 296 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | 23,005 | ||||||
Net realized/unrealized gains (losses) on investments | 23,301 | ||||||
Change in net assets resulting from operations | $ | 55,898 | |||||
(a) Rounds to less than $1 thousand.
See notes to financial statements.
26
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
USAA Tax Exempt Long-Term Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 32,597 | $ | 75,115 | |||||||
Net realized gains (losses) from investments | 296 | (731 | ) | ||||||||
| Net change in unrealized appreciation/depreciation on investments | 23,005 | 87,771 | |||||||||
Change in net assets resulting from operations | 55,898 | 162,155 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (32,446 | ) | (74,812 | ) | |||||||
Institutional Shares (a) | (78 | ) | (88 | ) | |||||||
Class A | (52 | ) | (232 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (32,576 | ) | (75,132 | ) | |||||||
Change in net assets resulting from capital transactions | (22,535 | ) | (79,868 | ) | |||||||
Change in net assets | 787 | 7,155 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 2,418,177 | 2,411,022 | |||||||||
End of period | $ | 2,418,964 | $ | 2,418,177 | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
(continues on next page)
See notes to financial statements.
27
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands) (continued)
USAA Tax Exempt Long-Term Fund | |||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | Year Ended March 31, 2021 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 74,979 | $ | 184,740 | |||||||
Distributions reinvested | 27,432 | 62,179 | |||||||||
Cost of shares redeemed | (120,257 | ) | (332,780 | ) | |||||||
Total Fund Shares | $ | (17,846 | ) | $ | (85,861 | ) | |||||
Institutional Shares (a) | |||||||||||
Proceeds from shares issued | $ | 767 | $ | 6,625 | |||||||
Distributions reinvested | 62 | 75 | |||||||||
Cost of shares redeemed | (327 | ) | (1,210 | ) | |||||||
Total Institutional Shares | $ | 502 | $ | 5,490 | |||||||
Class A | |||||||||||
Proceeds from shares issued | $ | 107 | $ | 8,389 | |||||||
Distributions reinvested | 45 | 79 | |||||||||
Cost of shares redeemed | (5,343 | ) | (7,965 | ) | |||||||
Total Class A | $ | (5,191 | ) | $ | 503 | ||||||
Change in net assets resulting from capital transactions | $ | (22,535 | ) | $ | (79,868 | ) | |||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 5,374 | 13,640 | |||||||||
Reinvested | 1,968 | 4,599 | |||||||||
Redeemed | (8,624 | ) | (24,772 | ) | |||||||
Total Fund Shares | (1,282 | ) | (6,533 | ) | |||||||
Institutional Shares (a) | |||||||||||
Issued | 55 | 487 | |||||||||
Reinvested | 4 | 5 | |||||||||
Redeemed | (24 | ) | (88 | ) | |||||||
Total Institutional Shares | 35 | 404 | |||||||||
Class A | |||||||||||
Issued | 9 | 625 | |||||||||
Reinvested | 3 | 6 | |||||||||
Redeemed | (386 | ) | (595 | ) | |||||||
Total Class A | (374 | ) | 36 | ||||||||
Change in Shares | (1,621 | ) | (6,093 | ) | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
See notes to financial statements.
28
This page is intentionally left blank.
29
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 | Total Distributions | ||||||||||||||||||||||
USAA Tax Exempt Long-Term Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 13.71 | 0.19 | (e) | 0.13 | 0.32 | (0.19 | ) | (0.19 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 13.21 | 0.42 | (e) | 0.50 | 0.92 | (0.42 | ) | (0.42 | ) | |||||||||||||||||
2020 | $ | 13.28 | 0.45 | (e) | (0.07 | ) | 0.38 | (0.45 | ) | (0.45 | ) | ||||||||||||||||
2019 | $ | 13.21 | 0.49 | 0.07 | 0.56 | (0.49 | ) | (0.49 | ) | ||||||||||||||||||
2018 | $ | 13.25 | 0.51 | (0.03 | ) | 0.48 | (0.52 | ) | (0.52 | ) | |||||||||||||||||
2017 | $ | 13.73 | 0.54 | (0.48 | ) | 0.06 | (0.54 | ) | (0.54 | ) | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 13.71 | 0.19 | (e) | 0.13 | 0.32 | (0.19 | ) | (0.19 | ) | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 13.40 | 0.31 | (e) | 0.32 | 0.63 | (0.32 | ) | (0.32 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 13.69 | 0.17 | (e) | 0.13 | 0.30 | (0.17 | ) | (0.17 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 13.19 | 0.40 | (e) | 0.50 | 0.90 | (0.40 | ) | (0.40 | ) | |||||||||||||||||
2020 | $ | 13.26 | 0.43 | (e) | (0.08 | ) | 0.35 | (0.42 | ) | (0.42 | ) | ||||||||||||||||
2019 | $ | 13.19 | 0.46 | 0.08 | 0.54 | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
2018 | $ | 13.23 | 0.48 | (0.04 | ) | 0.44 | (0.48 | ) | (0.48 | ) | |||||||||||||||||
2017 | $ | 13.71 | 0.49 | (0.48 | ) | 0.01 | (0.49 | ) | (0.49 | ) | |||||||||||||||||
* 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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
See notes to financial statements.
30
USAA Mutual Funds Trust | Financial Highlights — continued | ||||||
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||
| Net Asset Value, End of Period | Total Return (Excludes Sales Charge)*(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 Tax Exempt Long-Term Fund | |||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 13.84 | 2.30 | % | 0.49 | % | 2.66 | % | 0.49 | % | $ | 2,409,515 | 4 | % | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||
2021 | $ | 13.71 | 7.00 | % | 0.47 | % | 3.13 | % | 0.48 | % | $ | 2,404,178 | 21 | % | |||||||||||||||||
2020 | $ | 13.21 | 2.74 | % | 0.48 | % | 3.36 | % | 0.48 | % | $ | 2,403,342 | 24 | % | |||||||||||||||||
2019 | $ | 13.28 | 4.39 | % | 0.48 | % | 3.73 | % | 0.48 | % | $ | 2,362,819 | 13 | % | |||||||||||||||||
2018 | $ | 13.21 | 3.62 | % | 0.47 | % | 3.83 | % | 0.47 | % | $ | 2,358,955 | 14 | % | |||||||||||||||||
2017 | $ | 13.25 | 0.41 | % | 0.48 | % | 3.97 | % | 0.48 | % | $ | 2,343,165 | 15 | % | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 13.84 | 2.33 | % | 0.44 | % | 2.70 | % | 0.81 | % | $ | 6,080 | 4 | % | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 13.71 | 4.71 | % | 0.44 | % | 3.03 | % | 0.98 | % | $ | 5,533 | 21 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 13.82 | 2.20 | % | 0.68 | % | 2.50 | % | 1.35 | % | $ | 3,369 | 4 | % | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||
2021 | $ | 13.69 | 6.80 | % | 0.67 | % | 2.94 | % | 1.08 | % | $ | 8,466 | 21 | % | |||||||||||||||||
2020 | $ | 13.19 | 2.53 | % | 0.70 | % | 3.15 | % | 1.01 | % | $ | 7,680 | 24 | % | |||||||||||||||||
2019 | $ | 13.26 | 4.16 | % | 0.70 | % | 3.51 | % | 0.94 | % | $ | 7,745 | 13 | % | |||||||||||||||||
2018 | $ | 13.19 | 3.36 | % | 0.74 | %(g) | 3.57 | % | 0.92 | % | $ | 8,577 | 14 | % | |||||||||||||||||
2017 | $ | 13.23 | 0.07 | % | 0.80 | % | 3.64 | % | 0.87 | % | $ | 10,976 | 15 | % | |||||||||||||||||
(e) Per share net investment income (loss) has been calculated using the average daily shares method.
(f) Commencement of operations.
(g) Prior to August 1, 2017, USAA Asset Management Company ("AMCO") (previous Investment Adviser) had voluntarily agreed to limit the annual expenses of Class A to 0.80% of Class A average daily net assets.
See notes to financial statements.
31
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Tax Exempt Long-Term Fund (the "Fund"). The Fund offers three classes of shares: Fund Shares, Institutional Shares and Class A. The Fund is classified as diversified under the 1940 Act.
The Board of Trustees of USAA Mutual Funds Trust approved the addition of Class Z for the Fund. This new share class became effective February 5, 2021, but has not yet been funded. Class Z is only available to participants in certain eligible separately managed accounts (also referred to as wrap fee programs) and other advisory clients of the Fund's Adviser or its affiliates that are subject to a separate contractual fee for investment management services. The Adviser has contractually agreed to waive its management fee and/or reimburse expenses so that the total annual operating expenses (excluding acquired fund fees and expenses, interest, taxes, brokerage commissions, capitalized expenses, and other extraordinary expenses) do not exceed 0.00% of the Fund's Class Z for an indefinite term.
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)
32
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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.
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 net asset value ("NAV") to be more reliable than it otherwise would be.
A summary of the valuations as of September 30, 2021, 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 | $ | 98 | $ | — | $ | — | $ | 98 | |||||||||||
Municipal Bonds | — | 2,406,612 | — | 2,406,612 | |||||||||||||||
Total | $ | 98 | $ | 2,406,612 | $ | — | $ | 2,406,710 | |||||||||||
As of September 30, 2021, there were no significant Level 3 holdings in the fair value hierarchy. For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
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 on the Schedule of Portfolio Investments.
33
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
Below-Investment-Grade Securities:
The Fund may invest in below-investment-grade securities (i.e. lower-quality, "junk" debt), which are subject to various risks. Lower-quality debt is considered to be speculative because it is less certain that the issuer will be able to pay interest or repay the principal than in the case of investment grade debt. These securities can involve a substantially greater risk of default than higher-rated securities, and their values can decline significantly over short periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about their issuers, the market and the economy in general, than higher-quality debt securities. The market for these securities can be less liquid, especially during periods of recession or general market decline.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 March 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.
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 an 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, printing fees, and 12b-1 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
34
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021, the Fund engaged in the following securities transactions with affiliated funds, which resulted in the following net realized gains (losses) (amounts in thousands):3
| Purchases | Sales | Net Realized Gains (Losses) | |||||||||
| $ | 32,300 | $ | 62,350 | $ | — | ||||||
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 133,050 | $ | 82,201 | ||||
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned 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 annualized rate of 0.28% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper General & Insured Municipal Debt Funds Index. The Lipper General & Insured Municipal Debt Funds Index tracks the total return performance of the largest funds within the Lipper General & Insured Municipal Debt Funds category.
35
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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) | ||||||
| +/- 20 to 50 | +/- 4 | ||||||
| +/- 51 to 100 | +/- 5 | ||||||
| +/- 101 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper General & Insured Municipal Debt Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $83, less than $1 and less than $(1) for Fund Shares, Institutional Shares and Class A, in thousands, respectively. Performance adjustments were less than 0.01%, less than 0.01%, and (0.01)% for Fund Shares, Institutional Shares, and Class A, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.15%, 0.10%, and 0.15%, which is based on the Fund's average daily net assets of the Fund Shares, Institutional Shares and Class A, respectively. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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
36
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares based on an annual charge of $25.50 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 and Class A are paid monthly based on a fee accrued daily at an annualized rate of 0.10% and 0.10%, respectively, of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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.
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 Class A. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activity primarily intended to result in the sale of Class A. Amounts incurred and paid to the Distributor for the six months ended September 30, 2021, are reflected on the Statement of Operations as 12b-1 fees.
In addition, the Distributor is entitled to receive commissions on sales of Class A. For the six months ended September 30, 2021, the Distributor received less than $1 thousand from commissions earned on sales of Class A.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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. Acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 0.48%, 0.44%, and 0.70% for Fund Shares, Institutional Shares, and Class A, respectively.
37
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2023 | Expires 2024 | Expires 2025 | Total | ||||||||||||
$ | 14 | $ | 70 | $ | 22 | $ | 106 | ||||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Debt Securities 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.
Other factors that may affect the value of debt securities include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.
Credit Risk — 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.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors. Bond prices generally are linked to the prevailing market interest rates. In general, when interest rates rise, bond prices fall; conversely, when interest rates fall, bond prices rise. The price volatility of a bond also depends on its duration. Generally, the longer the duration of a bond, the greater is its sensitivity to interest rates. To compensate investors for this higher interest rate risk, bonds with longer durations generally offer higher yields than bonds with shorter durations. The ability of an issuer of a debt security to repay principal prior to a security's maturity can increase the security's sensitivity to interest rate changes.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as
38
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
LIBOR Discontinuation Risk — 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. 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. For U.S. dollar LIBOR, however, the relevant date may be deferred to June 30, 2023, for the most common tenors (overnight and one, three, six, and 12 months). As to those tenors, the LIBOR administrator has published a consultation regarding its intention to cease publication of U.S. dollar LIBOR as of June 30, 2023, (instead of December 31, 2021, as previously expected), apparently based on continued rate submissions from banks. It is expected that there will 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. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, or any particular currency and tenor, will continue to be published until any particular date, and it appears highly likely that LIBOR will be discontinued or modified after December 31, 2021, or June 30, 2023, depending on the currency and tenor. 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:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
39
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The average borrowing or lending for the days outstanding and average interest rate for the Fund that utilized this Facility during the six months ended September 30, 2021, were as follows (amounts in thousands):
| Borrower or Lender | Amount Outstanding at September 30, 2021 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||||||
Borrower | $ | — | $ | 3,998 | 1 | 0.57 | % | $ | 3,998 | ||||||||||||||||||
* For the six months ended September 30, 2021, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 12,896 | $ | 49,384 | $ | 62,280 | ||||||
40
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,023.00 | $ | 1,022.61 | $ | 2.48 | $ | 2.48 | 0.49 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,023.30 | 1,022.86 | 2.23 | 2.23 | 0.44 | % | ||||||||||||||||||||
Class A | 1,000.00 | 1,022.00 | 1,021.66 | 3.45 | 3.45 | 0.68 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
41
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 | ||||||
39596-1121
September 30, 2021
Semi Annual Report
USAA Tax Exempt Intermediate-Term Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 41 | ||||||
Statement of Operations | 42 | ||||||
Statements of Changes in Net Assets | 43 | ||||||
Financial Highlights | 46 | ||||||
Notes to Financial Statements | 48 | ||||||
Supplemental Information | 57 | ||||||
Proxy Voting and Portfolio Holdings Information | 57 | ||||||
Expense Examples | 57 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund's investment objective seeks to provide investors with interest income that is exempt from federal income tax.
Top 10 Industries
September 30, 2021
(% of Net Assets)
Hospital | 18.5 | % | |||||
General Obligation | 12.0 | % | |||||
Special Assessment/Tax/Fee | 11.6 | % | |||||
Education | 8.0 | % | |||||
Toll Road | 7.0 | % | |||||
Appropriated Debt | 5.9 | % | |||||
Electric/Gas Utility | 5.5 | % | |||||
Nursing/CCRC | 3.9 | % | |||||
OIL & GAS REFINING & MARKETING | 3.1 | % | |||||
Airport/Port | 2.9 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares or Principal Amount | Value | |||||||||
Common Stocks (0.0%) (a) | |||||||||||
Utilities (0.0%): | |||||||||||
Energy Harbor Corp. (b) | 8,001 | $ | 320 | ||||||||
Total Common Stocks (Cost $199) | 320 | ||||||||||
Municipal Bonds (99.6%) | |||||||||||
Alabama (2.3%): | |||||||||||
| Columbia Industrial Development Board Revenue, Series C, 0.10%, 12/1/37, Continuously Callable @100 (c) | $ | 11,600 | 11,600 | ||||||||
| Infirmary Health System Special Care Facilities Financing Authority of Mobile Revenue, 5.00%, 2/1/36, Continuously Callable @100 | 8,000 | 9,320 | |||||||||
Lower Alabama Gas District Revenue | |||||||||||
Series A, 5.00%, 9/1/27 | 5,000 | 6,074 | |||||||||
Series A, 5.00%, 9/1/28 | 7,000 | 8,661 | |||||||||
Series A, 5.00%, 9/1/34 (d) | 35,000 | 46,450 | |||||||||
Montgomery Medical Clinic Board Revenue | |||||||||||
5.00%, 3/1/33, Continuously Callable @100 | 5,955 | 6,880 | |||||||||
5.00%, 3/1/36, Continuously Callable @100 | 1,750 | 2,009 | |||||||||
| Southeast Energy Authority A Cooperative District Revenue, Series B, 4.00%, 12/1/51, (Put Date 12/1/31) (e) | 18,000 | 21,800 | |||||||||
The Health Care Authority of the City of Huntsville Revenue | |||||||||||
Series B1, 4.00%, 6/1/39, Continuously Callable @100 | 2,000 | 2,336 | |||||||||
Series B1, 4.00%, 6/1/40, Continuously Callable @100 | 2,555 | 2,977 | |||||||||
118,107 | |||||||||||
Arizona (2.1%): | |||||||||||
| Apache County IDA Revenue, Series A, 4.50%, 3/1/30, Continuously Callable @100 | 20,310 | 20,661 | |||||||||
Arizona Health Facilities Authority Revenue | |||||||||||
5.00%, 2/1/27, Continuously Callable @100 | 6,000 | 6,092 | |||||||||
1.90% (MUNIPSA+185bps), 2/1/48, (Put Date 2/1/23) (e) (k) | 30,000 | 30,608 | |||||||||
Arizona IDA Revenue | |||||||||||
4.00%, 12/15/41, Continuously Callable @100 (f) | 500 | 543 | |||||||||
Series A, 4.00%, 7/1/41, Continuously Callable @100 | 750 | 857 | |||||||||
Series B, 4.00%, 7/1/41, Continuously Callable @100 | 600 | 656 | |||||||||
| City of Phoenix Civic Improvement Corp. Revenue (INS — National Public Finance Guarantee Corp.) | |||||||||||
5.50%, 7/1/24 | 3,270 | 3,698 | |||||||||
5.50%, 7/1/25 | 2,115 | 2,478 | |||||||||
Maricopa County IDA Revenue | |||||||||||
0.62% (MUNIPSA+57bps), 1/1/35, (Put Date 10/18/24) (e) (k) | 2,360 | 2,388 | |||||||||
5.00%, 7/1/39, Continuously Callable @100 (f) | 2,000 | 2,362 | |||||||||
Tempe IDA Revenue, Series A, 4.00%, 12/1/38, Continuously Callable @102 (g) | 2,690 | 2,955 | |||||||||
The City of Phoenix IDA Revenue | |||||||||||
3.75%, 7/1/24 | 3,465 | 3,642 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 11,100 | 12,238 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 1,675 | 1,896 | |||||||||
5.00%, 10/1/36, Continuously Callable @100 | 4,250 | 5,021 | |||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
The Pima County IDA Revenue | |||||||||||
4.13%, 6/15/29, Continuously Callable @100 (f) | $ | 4,900 | $ | 4,948 | |||||||
4.00%, 4/1/40, Continuously Callable @100 | 1,350 | 1,581 | |||||||||
4.00%, 4/1/41, Continuously Callable @100 | 1,690 | 1,972 | |||||||||
The Prima County IDA Revenue | |||||||||||
4.00%, 6/15/22 (f) | 250 | 254 | |||||||||
Series A, 4.50%, 6/1/30, Continuously Callable @100 | 2,680 | 2,754 | |||||||||
The Yavapai County IDA Revenue, 4.00%, 8/1/38, Continuously Callable @100 | 1,000 | 1,162 | |||||||||
108,766 | |||||||||||
Arkansas (0.8%): | |||||||||||
Arkansas Development Finance Authority Revenue | |||||||||||
5.00%, 9/1/37, Continuously Callable @100 | 1,000 | 1,241 | |||||||||
5.00%, 9/1/38, Continuously Callable @100 | 1,000 | 1,239 | |||||||||
5.00%, 9/1/39, Continuously Callable @100 | 1,000 | 1,236 | |||||||||
5.00%, 9/1/40, Continuously Callable @100 | 1,045 | 1,288 | |||||||||
1.60% (MUNIPSA+155bps), 9/1/44, (Put Date 9/1/22) (e) (k) | 29,000 | 29,367 | |||||||||
| University of Arkansas — Pulaski Technical College Revenue (INS — Build America Mutual Assurance Co.), 5.00%, 9/1/30, Continuously Callable @100 | 4,290 | 5,002 | |||||||||
39,373 | |||||||||||
California (5.6%): | |||||||||||
Anaheim Public Financing Authority Revenue | |||||||||||
Series A, 5.00%, 5/1/28, Continuously Callable @100 | 500 | 550 | |||||||||
Series A, 5.00%, 5/1/29, Continuously Callable @100 | 500 | 550 | |||||||||
Series A, 5.00%, 5/1/30, Continuously Callable @100 | 1,000 | 1,099 | |||||||||
Bay Area Toll Authority Revenue | |||||||||||
1.15% (MUNIPSA+110bps), 4/1/45, (Put Date 4/1/24) (e) (k) | 17,000 | 17,292 | |||||||||
0.95% (MUNIPSA+90bps), 4/1/45, (Put Date 5/1/23) (e) (k) | 10,000 | 10,117 | |||||||||
| California Health Facilities Financing Authority Revenue, 2.00%, 10/1/36, (Put Date 10/1/25) (e) | 8,500 | 8,989 | |||||||||
| California Municipal Finance Authority Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8061, 0.46%, 1/1/60, Callable 1/1/37 @ 100 (c) (f) | 5,125 | 5,125 | |||||||||
California School Finance Authority Revenue | |||||||||||
5.00%, 8/1/31, Pre-refunded 8/1/25 @ 100 (f) | 50 | 59 | |||||||||
5.00%, 8/1/31, Continuously Callable @100 (f) | 450 | 517 | |||||||||
5.00%, 8/1/36, Continuously Callable @100 (f) | 1,450 | 1,659 | |||||||||
5.00%, 8/1/36, Pre-refunded 8/1/25 @ 100 (f) | 150 | 176 | |||||||||
California State Public Works Board Revenue | |||||||||||
Series A, 5.00%, 3/1/25, Continuously Callable @100 | 1,250 | 1,334 | |||||||||
Series A, 5.00%, 3/1/26, Continuously Callable @100 | 1,365 | 1,457 | |||||||||
Series A, 5.00%, 4/1/28, Continuously Callable @100 | 10,000 | 10,237 | |||||||||
Series A, 5.00%, 4/1/29, Continuously Callable @100 | 5,000 | 5,119 | |||||||||
Series B, 5.00%, 10/1/31, Continuously Callable @100 | 11,465 | 13,006 | |||||||||
Series G, 5.00%, 11/1/23, Continuously Callable @100 | 1,185 | 1,246 | |||||||||
Series G, 5.00%, 11/1/24, Continuously Callable @100 | 2,000 | 2,104 | |||||||||
Series G, 5.00%, 11/1/28, Continuously Callable @100 | 7,000 | 7,362 | |||||||||
California State University Revenue | |||||||||||
5.00%, 11/1/29, Pre-refunded 11/1/24 @ 100 | 9,835 | 11,247 | |||||||||
5.00%, 11/1/29, Pre-refunded 11/1/24 @ 100 | 165 | 188 | |||||||||
Series A, 5.00%, 11/1/33, Continuously Callable @100 | 10,000 | 11,769 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
California Statewide Communities Development Authority Revenue | |||||||||||
5.13%, 5/15/31, Continuously Callable @100 | $ | 1,000 | $ | 1,003 | |||||||
5.00%, 5/15/32, Continuously Callable @100 | 1,250 | 1,477 | |||||||||
5.00%, 5/15/33, Continuously Callable @100 | 2,000 | 2,360 | |||||||||
5.00%, 5/15/34, Continuously Callable @100 | 1,250 | 1,474 | |||||||||
5.00%, 5/15/35, Continuously Callable @100 | 2,000 | 2,356 | |||||||||
| California Statewide Communities Development Authority Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8052, 0.46%, 4/1/52, Callable 11/12/21 @ 100 (c) (f) | 20,400 | 20,400 | |||||||||
Cerritos Community College District, GO | |||||||||||
Series D, 8/1/25 (h) | 1,510 | 1,475 | |||||||||
Series D, 8/1/27 (h) | 1,000 | 944 | |||||||||
Series D, 8/1/28 (h) | 1,000 | 925 | |||||||||
Chula Vista Municipal Financing Authority Special Tax | |||||||||||
Series B, 5.00%, 9/1/27, Continuously Callable @100 | 1,520 | 1,758 | |||||||||
Series B, 5.00%, 9/1/28, Continuously Callable @100 | 1,700 | 1,964 | |||||||||
Series B, 5.00%, 9/1/29, Continuously Callable @100 | 1,785 | 2,060 | |||||||||
Series B, 5.00%, 9/1/30, Continuously Callable @100 | 2,635 | 3,037 | |||||||||
Series B, 5.00%, 9/1/31, Continuously Callable @100 | 2,095 | 2,411 | |||||||||
City & County of San Francisco Revenue (LIQ — Deutsche Bank A.G.) | |||||||||||
Series DBE-8059, 0.46%, 12/1/52, Callable 12/1/21 @ 100 (c) (f) | 20,000 | 20,000 | |||||||||
Series DBE-8072, 0.46%, 1/1/52, Callable 10/18/21 @ 100 (c) (f) | 3,000 | 3,000 | |||||||||
City of Irvine Special Assessment, 5.00%, 9/2/29, Callable 9/2/23 @ 100 | 1,000 | 1,084 | |||||||||
| City of Los Angeles Revenue (LIQ — Deutsche Bank A.G.), Series DBE-8067, 0.46%, 10/1/58, Callable 10/18/21 @ 100 (c) (f) | 10,500 | 10,500 | |||||||||
| City of San Diego Tobacco Settlement Revenue Funding Corp. Revenue, Series C, 4.00%, 6/1/32, Continuously Callable @100 | 720 | 779 | |||||||||
City of Tulare Sewer Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 11/15/32, Continuously Callable @100 | 1,605 | 1,874 | |||||||||
5.00%, 11/15/33, Continuously Callable @100 | 1,570 | 1,832 | |||||||||
5.00%, 11/15/34, Continuously Callable @100 | 3,655 | 4,260 | |||||||||
5.00%, 11/15/35, Continuously Callable @100 | 2,340 | 2,725 | |||||||||
County of Los Angeles Certificate of Participation, 5.00%, 3/1/23 | 1,300 | 1,388 | |||||||||
El Camino Community College District, GO | |||||||||||
Series C, 8/1/26 (h) | 6,810 | 6,539 | |||||||||
Series C, 8/1/27 (h) | 7,665 | 7,223 | |||||||||
Series C, 8/1/28 (h) | 5,500 | 5,076 | |||||||||
| Foothill-Eastern Transportation Corridor Agency Revenue (INS — Assured Guaranty Municipal Corp.), 1/15/35 (h) | 5,500 | 4,102 | |||||||||
| Fresno Joint Powers Financing Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 4/1/32, Continuously Callable @100 | 1,000 | 1,215 | |||||||||
Series A, 5.00%, 4/1/35, Continuously Callable @100 | 1,000 | 1,212 | |||||||||
Series A, 5.00%, 4/1/36, Continuously Callable @100 | 420 | 509 | |||||||||
| Golden State Tobacco Securitization Corp. Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 6/1/25 (h) | 46,605 | 45,292 | |||||||||
| Pittsburg Successor Agency Redevelopment Agency Tax Allocation (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 9/1/27, Continuously Callable @100 | 3,500 | 4,206 | |||||||||
Series A, 5.00%, 9/1/28, Continuously Callable @100 | 2,640 | 3,168 | |||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Sacramento City Financing Authority Revenue (LIQ — Deutsche Bank A.G.), Series XG0100, 0.12%, 12/1/33 (c) (f) | $ | 4,400 | $ | 4,400 | |||||||
San Diego Public Facilities Financing Authority Revenue | |||||||||||
Series A, 5.00%, 10/15/33, Continuously Callable @100 | 1,635 | 1,902 | |||||||||
Series A, 5.00%, 10/15/34, Continuously Callable @100 | 1,000 | 1,162 | |||||||||
Series A, 5.00%, 10/15/35, Continuously Callable @100 | 1,250 | 1,452 | |||||||||
Series B, 5.00%, 10/15/30, Continuously Callable @100 | 775 | 904 | |||||||||
Series B, 5.00%, 10/15/31, Continuously Callable @100 | 1,000 | 1,166 | |||||||||
Series B, 5.00%, 10/15/32, Continuously Callable @100 | 1,000 | 1,165 | |||||||||
292,981 | |||||||||||
Colorado (2.1%): | |||||||||||
Adams & Arapahoe Joint School District 28J Aurora, GO, 12/1/22 (h) | 5,000 | 4,988 | |||||||||
Colorado Health Facilities Authority Revenue | |||||||||||
5.00%, 6/1/28, Pre-refunded 6/1/23 @ 100 | 2,750 | 2,969 | |||||||||
5.00%, 12/1/28, Continuously Callable @100 | 1,000 | 1,148 | |||||||||
5.00%, 12/1/29, Continuously Callable @100 | 1,500 | 1,721 | |||||||||
5.00%, 6/1/31, Pre-refunded 6/1/25 @ 100 | 2,310 | 2,698 | |||||||||
5.00%, 6/1/32, Pre-refunded 6/1/25 @ 100 | 2,000 | 2,336 | |||||||||
5.00%, 6/1/33, Pre-refunded 6/1/25 @ 100 | 2,470 | 2,885 | |||||||||
5.00%, 6/1/34, Pre-refunded 6/1/25 @ 100 | 6,385 | 7,457 | |||||||||
5.00%, 6/1/34, Pre-refunded 6/1/27 @ 100 | 4,455 | 5,479 | |||||||||
5.00%, 6/1/35, Pre-refunded 6/1/25 @ 100 | 3,385 | 3,953 | |||||||||
5.00%, 6/1/35, Pre-refunded 6/1/27 @ 100 | 2,000 | 2,460 | |||||||||
5.00%, 12/1/35, Continuously Callable @100 | 4,000 | 4,565 | |||||||||
5.00%, 6/1/36, Pre-refunded 6/1/27 @ 100 | 4,000 | 4,920 | |||||||||
Series A, 4.00%, 8/1/38, Continuously Callable @100 | 1,000 | 1,158 | |||||||||
Series A, 4.00%, 8/1/39, Continuously Callable @100 | 1,250 | 1,451 | |||||||||
Series A, 4.00%, 11/1/39, Continuously Callable @100 | 3,500 | 4,063 | |||||||||
Series A, 4.00%, 12/1/40, Continuously Callable @103 | 2,000 | 2,277 | |||||||||
Denver Health & Hospital Authority Revenue | |||||||||||
Series A, 5.00%, 12/1/34, Continuously Callable @100 (f) | 7,355 | 8,916 | |||||||||
Series A, 4.00%, 12/1/37, Continuously Callable @100 | 1,250 | 1,440 | |||||||||
Series A, 4.00%, 12/1/38, Continuously Callable @100 | 1,250 | 1,436 | |||||||||
Series A, 4.00%, 12/1/39, Continuously Callable @100 | 1,000 | 1,145 | |||||||||
Park Creek Metropolitan District Revenue | |||||||||||
5.00%, 12/1/32, Continuously Callable @100 | 1,250 | 1,442 | |||||||||
5.00%, 12/1/34, Continuously Callable @100 | 1,000 | 1,152 | |||||||||
Regional Transportation District Certificate of Participation | |||||||||||
Series A, 5.00%, 6/1/29, Continuously Callable @100 | 7,585 | 8,164 | |||||||||
Series A, 5.00%, 6/1/30, Continuously Callable @100 | 14,175 | 15,253 | |||||||||
Series A, 5.00%, 6/1/31, Continuously Callable @100 | 15,005 | 16,143 | |||||||||
111,619 | |||||||||||
Connecticut (3.9%): | |||||||||||
City of Bridgeport, GO | |||||||||||
Series B, 5.00%, 8/15/27 | 335 | 416 | |||||||||
Series B, 5.00%, 8/15/27 | 4,485 | 5,476 | |||||||||
Series B, 5.00%, 8/15/27 | 180 | 223 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
City of New Haven, GO | |||||||||||
Series A, 5.00%, 8/1/28 | $ | 1,000 | $ | 1,236 | |||||||
Series A, 5.50%, 8/1/30, Continuously Callable @100 | 1,000 | 1,264 | |||||||||
Series A, 5.50%, 8/1/32, Continuously Callable @100 | 1,200 | 1,507 | |||||||||
Series A, 5.50%, 8/1/36, Continuously Callable @100 | 1,810 | 2,251 | |||||||||
City of New Haven, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 8/15/30, Continuously Callable @100 | 1,000 | 1,193 | |||||||||
Series A, 5.00%, 8/15/32, Continuously Callable @100 | 1,000 | 1,190 | |||||||||
Series A, 5.00%, 8/15/33, Continuously Callable @100 | 1,000 | 1,188 | |||||||||
Series A, 5.00%, 8/15/34, Continuously Callable @100 | 1,350 | 1,602 | |||||||||
City of West Haven, GO | |||||||||||
4.00%, 9/15/36, Continuously Callable @100 | 1,500 | 1,731 | |||||||||
Series B, 5.00%, 11/1/32, Continuously Callable @100 | 400 | 476 | |||||||||
Series B, 5.00%, 11/1/37, Continuously Callable @100 | 350 | 413 | |||||||||
Connecticut State Health & Educational Facilities Authority Revenue | |||||||||||
5.00%, 7/1/32, Continuously Callable @100 | 1,950 | 2,327 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 725 | 860 | |||||||||
5.00%, 7/1/35, Continuously Callable @100 | 1,170 | 1,384 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 1,125 | 1,327 | |||||||||
5.00%, 7/1/37, Continuously Callable @100 | 1,275 | 1,501 | |||||||||
Series A, 5.00%, 7/1/33, Continuously Callable @100 | 2,000 | 2,455 | |||||||||
Series A, 4.00%, 7/1/38, Continuously Callable @100 | 7,000 | 7,961 | |||||||||
Series A, 4.00%, 7/1/38, Continuously Callable @100 | 2,000 | 2,309 | |||||||||
Series A, 4.00%, 7/1/39, Continuously Callable @100 | 2,000 | 2,296 | |||||||||
Series E, 5.00%, 7/1/34, Continuously Callable @100 | 10,000 | 11,201 | |||||||||
| Harbor Point Infrastructure Improvement District Tax Allocation, 5.00%, 4/1/30, Continuously Callable @100 (f) | 10,000 | 11,719 | |||||||||
Mashantucket Western Pequot Tribe Revenue, 7/1/31 (i) (m) | 8,475 | 1,271 | |||||||||
Metropolitan District, GO | |||||||||||
5.00%, 7/15/33, Continuously Callable @100 | 750 | 933 | |||||||||
5.00%, 7/15/34, Continuously Callable @100 | 1,000 | 1,239 | |||||||||
5.00%, 7/15/35, Continuously Callable @100 | 750 | 927 | |||||||||
5.00%, 7/15/36, Continuously Callable @100 | 1,000 | 1,236 | |||||||||
4.00%, 7/15/37, Continuously Callable @100 | 1,000 | 1,160 | |||||||||
State of Connecticut Special Tax Revenue | |||||||||||
5.00%, 1/1/34, Continuously Callable @100 | 20,000 | 24,714 | |||||||||
5.00%, 1/1/35, Continuously Callable @100 | 20,000 | 24,559 | |||||||||
Series B, 5.00%, 10/1/37, Continuously Callable @100 | 6,000 | 7,455 | |||||||||
Series B, 5.00%, 10/1/38, Continuously Callable @100 | 4,000 | 4,966 | |||||||||
State of Connecticut, GO | |||||||||||
Series A, 5.00%, 4/15/33, Continuously Callable @100 | 5,000 | 6,209 | |||||||||
Series A, 5.00%, 4/15/34, Continuously Callable @100 | 5,575 | 6,901 | |||||||||
Series A, 5.00%, 4/15/35, Continuously Callable @100 | 5,000 | 6,172 | |||||||||
Series A, 4.00%, 4/15/37, Continuously Callable @100 | 1,825 | 2,137 | |||||||||
Series C, 5.00%, 6/15/33, Continuously Callable @100 | 1,100 | 1,368 | |||||||||
Series C, 5.00%, 6/15/34, Continuously Callable @100 | 2,625 | 3,255 | |||||||||
Series C, 5.00%, 6/15/35, Continuously Callable @100 | 2,500 | 3,087 | |||||||||
Series E, 5.00%, 9/15/35, Continuously Callable @100 | 2,000 | 2,488 | |||||||||
Series E, 5.00%, 9/15/37, Continuously Callable @100 | 2,000 | 2,474 | |||||||||
Series G, 5.00%, 11/15/35, Continuously Callable @100 | 5,000 | 5,860 | |||||||||
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Town of Hamden, GO (INS — Build America Mutual Assurance Co.), Series A, 5.00%, 8/15/30, Continuously Callable @100 | $ | 1,200 | $ | 1,486 | |||||||
University of Connecticut Revenue | |||||||||||
Series A, 5.00%, 4/15/34, Continuously Callable @100 | 6,805 | 8,388 | |||||||||
Series A, 5.00%, 4/15/35, Continuously Callable @100 | 6,500 | 7,989 | |||||||||
Series A, 5.00%, 4/15/36, Continuously Callable @100 | 11,175 | 13,698 | |||||||||
205,478 | |||||||||||
District of Columbia (0.4%): | |||||||||||
| District of Columbia Housing Finance Agency Revenue (LIQ — Deutsche Bank A.G.), Series DBE-8069, 0.46%, 6/1/39, Callable 6/1/38 @ 101 (c) (f) | 10,000 | 10,000 | |||||||||
District of Columbia Revenue | |||||||||||
5.00%, 7/1/23 | 200 | 212 | |||||||||
6.00%, 7/1/33, Pre-refunded 7/1/23 @ 100 | 1,280 | 1,406 | |||||||||
5.00%, 7/1/39, Continuously Callable @100 | 800 | 970 | |||||||||
4.00%, 7/1/39, Continuously Callable @100 | 1,000 | 1,120 | |||||||||
Metropolitan Washington Airports Authority Dulles Toll Road Revenue | |||||||||||
4.00%, 10/1/35, Continuously Callable @100 | 1,000 | 1,165 | |||||||||
4.00%, 10/1/36, Continuously Callable @100 | 1,250 | 1,451 | |||||||||
4.00%, 10/1/37, Continuously Callable @100 | 1,500 | 1,735 | |||||||||
4.00%, 10/1/38, Continuously Callable @100 | 1,000 | 1,154 | |||||||||
Washington Convention & Sports Authority Revenue | |||||||||||
Series A, 4.00%, 10/1/38, Continuously Callable @100 | 1,250 | 1,479 | |||||||||
Series A, 4.00%, 10/1/39, Continuously Callable @100 | 500 | 591 | |||||||||
Series A, 4.00%, 10/1/40, Continuously Callable @100 | 750 | 883 | |||||||||
22,166 | |||||||||||
Florida (5.7%): | |||||||||||
City of Cape Coral Water & Sewer Revenue | |||||||||||
4.00%, 10/1/35, Continuously Callable @100 | 1,485 | 1,701 | |||||||||
4.00%, 10/1/36, Continuously Callable @100 | 1,400 | 1,602 | |||||||||
4.00%, 10/1/37, Continuously Callable @100 | 3,000 | 3,428 | |||||||||
City of Jacksonville Revenue, 5.00%, 10/1/28, Continuously Callable @100 | 3,500 | 3,665 | |||||||||
City of Pompano Beach Revenue | |||||||||||
3.50%, 9/1/35, Continuously Callable @103 | 3,345 | 3,625 | |||||||||
4.00%, 9/1/40, Continuously Callable @103 | 2,500 | 2,755 | |||||||||
City of Port St. Lucie Special Assessment | |||||||||||
4.00%, 7/1/31, Continuously Callable @100 | 3,195 | 3,650 | |||||||||
4.00%, 7/1/32, Continuously Callable @100 | 2,000 | 2,273 | |||||||||
4.00%, 7/1/33, Continuously Callable @100 | 2,785 | 3,136 | |||||||||
| City of Port St. Lucie Utility System Revenue, 4.00%, 9/1/31, Continuously Callable @100 | 1,000 | 1,152 | |||||||||
City of Tampa Revenue | |||||||||||
Series A, 3.07%, 9/1/36, Continuously Callable @80 | 700 | 444 | |||||||||
Series A, 3.09%, 9/1/37, Continuously Callable @77 | 700 | 430 | |||||||||
Series A, 3.21%, 9/1/38, Continuously Callable @74 | 850 | 496 | |||||||||
Series A, 3.28%, 9/1/39, Continuously Callable @71 | 700 | 391 | |||||||||
Series A, 3.34%, 9/1/40, Continuously Callable @67 | 850 | 454 | |||||||||
Series B, 4.00%, 7/1/38, Continuously Callable @100 | 350 | 408 | |||||||||
Series B, 4.00%, 7/1/39, Continuously Callable @100 | 700 | 814 | |||||||||
See notes to financial statements.
8
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Cityplace Community Development District Special Assessment (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5/1/33 (j) | $ | 3,470 | $ | 3,609 | |||||||
5/1/38, Continuously Callable @100 (n) | 7,900 | 8,679 | |||||||||
County of Escambia Revenue, 0.09%, 7/1/22 (c) (d) | 1,600 | 1,600 | |||||||||
County of Jackson Revenue, 0.09%, 7/1/22, Continuously Callable @100 (c) | 2,500 | 2,500 | |||||||||
County of Lee Airport Revenue, 5.00%, 10/1/33, Continuously Callable @100 | 4,000 | 4,659 | |||||||||
County of Lee Revenue | |||||||||||
5.00%, 10/1/23 | 2,500 | 2,736 | |||||||||
5.00%, 10/1/24 | 2,700 | 3,074 | |||||||||
County of Lee Tourist Development Tax Revenue | |||||||||||
Series B, 4.00%, 10/1/36, Continuously Callable @100 | 4,685 | 5,501 | |||||||||
Series B, 4.00%, 10/1/37, Continuously Callable @100 | 4,970 | 5,811 | |||||||||
Series B, 4.00%, 10/1/38, Continuously Callable @100 | 5,230 | 6,097 | |||||||||
County of Miami-Dade Florida Water & Sewer System Revenue | |||||||||||
4.00%, 10/1/41, Continuously Callable @100 | 1,500 | 1,785 | |||||||||
4.00%, 10/1/42, Continuously Callable @100 | 2,000 | 2,374 | |||||||||
| County of Miami-Dade Revenue, Series A, 5.00%, 10/1/25, Pre-refunded 10/1/22 @ 100 | 2,000 | 2,096 | |||||||||
County of Miami-Dade Seaport Department Revenue | |||||||||||
Series B-2, 4.00%, 10/1/41, Continuously Callable @100 | 10,000 | 11,790 | |||||||||
Series B-2, 4.00%, 10/1/43, Continuously Callable @100 | 15,340 | 18,051 | |||||||||
| County of St Lucie Sales Tax Revenue (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 10/1/28, Continuously Callable @100 | 7,370 | 8,043 | |||||||||
Escambia County Health Facilities Authority Revenue | |||||||||||
5.00%, 8/15/33, Continuously Callable @100 | 1,400 | 1,758 | |||||||||
5.00%, 8/15/35, Continuously Callable @100 | 1,290 | 1,610 | |||||||||
5.00%, 8/15/40, Continuously Callable @100 | 2,900 | 3,576 | |||||||||
Florida Development Finance Corp. Revenue | |||||||||||
4.00%, 11/15/37, Continuously Callable @100 | 2,000 | 2,392 | |||||||||
4.00%, 11/15/38, Continuously Callable @100 | 1,800 | 2,148 | |||||||||
4.00%, 11/15/39, Continuously Callable @100 | 1,500 | 1,781 | |||||||||
Series A, 5.00%, 6/15/35, Continuously Callable @100 (f) | 1,000 | 1,170 | |||||||||
Series A, 5.00%, 6/15/40, Continuously Callable @100 (f) | 1,650 | 1,910 | |||||||||
Florida Higher Educational Facilities Financial Authority Revenue | |||||||||||
5.00%, 10/1/35, Continuously Callable @100 | 1,250 | 1,473 | |||||||||
5.00%, 10/1/36, Continuously Callable @100 | 1,000 | 1,176 | |||||||||
4.00%, 10/1/37, Continuously Callable @100 | 1,000 | 1,090 | |||||||||
4.00%, 10/1/38, Continuously Callable @100 | 750 | 817 | |||||||||
5.00%, 3/1/39, Continuously Callable @100 | 7,055 | 8,158 | |||||||||
4.00%, 10/1/39, Continuously Callable @100 | 800 | 871 | |||||||||
Halifax Hospital Medical Center Revenue | |||||||||||
5.00%, 6/1/35, Continuously Callable @100 | 2,325 | 2,668 | |||||||||
5.00%, 6/1/36, Continuously Callable @100 | 2,750 | 3,244 | |||||||||
| Lake County School Board Certificate of Participation (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 6/1/29, Pre-refunded 6/1/24 @ 100 | 1,250 | 1,406 | |||||||||
Series A, 5.00%, 6/1/30, Pre-refunded 6/1/24 @ 100 | 2,225 | 2,504 | |||||||||
See notes to financial statements.
9
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Lee County IDA Revenue | |||||||||||
5.00%, 10/1/28, Pre-refunded 10/1/22 @ 100 | $ | 7,245 | $ | 7,592 | |||||||
5.00%, 11/15/39, Continuously Callable @103 | 1,500 | 1,789 | |||||||||
| Lee County School Board Certificate of Participation, Series A, 5.00%, 8/1/28, Continuously Callable @100 | 3,750 | 4,228 | |||||||||
| Lee Memorial Health System Revenue, Series A-1, 4.00%, 4/1/37, Continuously Callable @100 | 5,000 | 5,808 | |||||||||
| Miami Beach Health Facilities Authority Revenue, 5.00%, 11/15/29, Pre-refunded 11/15/22 @ 100 | 6,560 | 6,913 | |||||||||
Miami-Dade County Expressway Authority Revenue | |||||||||||
Series A, 5.00%, 7/1/28, Continuously Callable @100 | 10,000 | 10,349 | |||||||||
Series A, 5.00%, 7/1/29, Continuously Callable @100 | 7,000 | 7,245 | |||||||||
Series A, 5.00%, 7/1/29, Continuously Callable @100 | 1,000 | 1,122 | |||||||||
Series A, 5.00%, 7/1/30, Continuously Callable @100 | 1,610 | 1,804 | |||||||||
Series A, 5.00%, 7/1/31, Continuously Callable @100 | 1,255 | 1,405 | |||||||||
Series A, 5.00%, 7/1/32, Continuously Callable @100 | 2,000 | 2,238 | |||||||||
Series A, 5.00%, 7/1/33, Continuously Callable @100 | 2,000 | 2,236 | |||||||||
Series A, 5.00%, 7/1/34, Continuously Callable @100 | 2,000 | 2,234 | |||||||||
Series B, 5.00%, 7/1/30, Continuously Callable @100 | 2,000 | 2,241 | |||||||||
Series B, 5.00%, 7/1/31, Continuously Callable @100 | 2,000 | 2,240 | |||||||||
Miami-Dade County Health Facilities Authority Revenue | |||||||||||
5.00%, 8/1/27, Continuously Callable @100 | 4,750 | 5,155 | |||||||||
5.00%, 8/1/28, Continuously Callable @100 | 4,950 | 5,371 | |||||||||
5.00%, 8/1/29, Continuously Callable @100 | 5,250 | 5,695 | |||||||||
5.00%, 8/1/30, Continuously Callable @100 | 3,500 | 3,795 | |||||||||
5.00%, 8/1/31, Continuously Callable @100 | 5,780 | 6,264 | |||||||||
| Orange County Health Facilities Authority Revenue, Series A, 5.00%, 10/1/35, Continuously Callable @100 | 4,000 | 4,772 | |||||||||
| Osceola County School Board Certificate of Participation, Series A, 5.00%, 6/1/28, Continuously Callable @100 | 3,055 | 3,285 | |||||||||
| Palm Beach County Educational Facilities Authority Revenue, 4.00%, 10/1/41, Continuously Callable @100 (g) | 3,695 | 4,181 | |||||||||
Palm Beach County Health Facilities Authority Revenue | |||||||||||
5.00%, 11/15/23, Continuously Callable @100 | 7,595 | 7,801 | |||||||||
Series B, 4.00%, 11/15/41, Continuously Callable @103 | 250 | 285 | |||||||||
Pinellas County Educational Facilities Authority Revenue | |||||||||||
5.00%, 10/1/21 | 1,995 | 1,995 | |||||||||
4.00%, 10/1/22 | 1,080 | 1,117 | |||||||||
4.00%, 10/1/23, Continuously Callable @100 | 1,415 | 1,464 | |||||||||
5.38%, 10/1/26, Continuously Callable @100 | 2,045 | 2,052 | |||||||||
5.00%, 10/1/27, Continuously Callable @100 | 1,895 | 1,978 | |||||||||
6.50%, 10/1/31, Continuously Callable @100 | 2,615 | 2,627 | |||||||||
Pinellas County IDA Revenue, 5.00%, 7/1/29 | 900 | 1,035 | |||||||||
School District of Broward County Certificate of Participation | |||||||||||
Series A, 5.00%, 7/1/29, Continuously Callable @100 | 2,000 | 2,322 | |||||||||
Series A, 5.00%, 7/1/30, Continuously Callable @100 | 2,000 | 2,320 | |||||||||
| Southeast Overtown Park West Community Redevelopment Agency Tax Allocation, Series A-1, 5.00%, 3/1/30, Continuously Callable @100 (f) | 3,195 | 3,526 | |||||||||
St. Lucie County School Board Certificate of Participation | |||||||||||
Series A, 5.00%, 7/1/25, Continuously Callable @100 | 2,045 | 2,208 | |||||||||
Series A, 5.00%, 7/1/26, Continuously Callable @100 | 1,500 | 1,619 | |||||||||
See notes to financial statements.
10
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Volusia County Educational Facility Authority Revenue | |||||||||||
Series B, 5.00%, 10/15/28, Continuously Callable @100 | $ | 1,000 | $ | 1,152 | |||||||
Series B, 5.00%, 10/15/29, Continuously Callable @100 | 1,000 | 1,151 | |||||||||
Series B, 5.00%, 10/15/30, Continuously Callable @100 | 1,500 | 1,726 | |||||||||
Series B, 5.00%, 10/15/32, Continuously Callable @100 | 1,560 | 1,792 | |||||||||
294,713 | |||||||||||
Georgia (2.2%): | |||||||||||
| Appling County Development Authority Revenue, 0.11%, 9/1/29, Continuously Callable @100 (c) | 5,000 | 5,000 | |||||||||
| Appling County Development Authority Revenue Bonds, 0.11%, 9/1/41, Continuously Callable @100 (c) | 3,805 | 3,805 | |||||||||
| Cobb County Development Authority Revenue, Series A, 2.25%, 4/1/33, (Put Date 10/1/29) (e) | 4,975 | 5,324 | |||||||||
| Cobb County Housing Authority Revenue (LIQ — Deutsche Bank A.G.), Series DBE-8068, 0.46%, 10/1/59, Callable 10/1/35 @ 100 (c) (f) | 3,055 | 3,055 | |||||||||
| George L Smith II Congress Center Authority Revenue, 4.00%, 1/1/36, Continuously Callable @100 | 1,000 | 1,160 | |||||||||
Glynn-Brunswick Memorial Hospital Authority Revenue | |||||||||||
4.00%, 8/1/36, Continuously Callable @100 | 1,840 | 2,133 | |||||||||
4.00%, 8/1/37, Continuously Callable @100 | 1,500 | 1,727 | |||||||||
Main Street Natural Gas, Inc. Revenue | |||||||||||
4.00%, 8/1/48, (Put Date 12/1/23) (e) | 15,000 | 16,064 | |||||||||
Series A, 5.00%, 5/15/36 | 2,000 | 2,788 | |||||||||
Series A, 5.00%, 5/15/37 | 1,500 | 2,113 | |||||||||
Series A, 5.00%, 5/15/38 | 2,500 | 3,560 | |||||||||
Series C, 4.00%, 3/1/50, (Put Date 9/1/26) (e) | 27,500 | 31,534 | |||||||||
Series C, 4.00%, 5/1/52, (Put Date 12/1/28) (e) | 10,000 | 11,822 | |||||||||
Private Colleges & Universities Authority Revenue | |||||||||||
Series A, 5.25%, 10/1/27, Continuously Callable @100 | 3,000 | 3,000 | |||||||||
Series C, 5.25%, 10/1/27, Continuously Callable @100 | 2,000 | 2,097 | |||||||||
Savannah Hospital Authority Revenue, 4.00%, 7/1/39, Continuously Callable @100 | 2,500 | 2,879 | |||||||||
| The Burke County Development Authority Revenue, Series A, 1.50%, 1/1/40, (Put Date 2/3/25) (e) | 6,500 | 6,638 | |||||||||
The Development Authority of Monroe County Revenue | |||||||||||
0.11%, 4/1/32, Continuously Callable @100 (c) | 8,600 | 8,600 | |||||||||
0.09%, 6/1/49 (c) | 1,525 | 1,525 | |||||||||
| The Development Authority of Monroe County Revenue Bonds, 0.11%, 11/1/48, Continuously Callable @100 (c) | 1,400 | 1,400 | |||||||||
116,224 | |||||||||||
Guam (0.4%): | |||||||||||
Guam Government Waterworks Authority Revenue | |||||||||||
5.00%, 7/1/28, Continuously Callable @100 | 1,000 | 1,065 | |||||||||
5.25%, 7/1/33, Pre-refunded 7/1/23 @ 100 | 3,000 | 3,262 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 1,250 | 1,426 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 1,000 | 1,151 | |||||||||
Series A, 5.00%, 7/1/23 | 750 | 799 | |||||||||
Series A, 5.00%, 7/1/24 | 600 | 661 | |||||||||
Series A, 5.00%, 7/1/25, Continuously Callable @100 | 750 | 826 | |||||||||
Series A, 5.00%, 7/1/29, Continuously Callable @100 | 1,000 | 1,098 | |||||||||
See notes to financial statements.
11
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Guam Power Authority Revenue | |||||||||||
Series A, 5.00%, 10/1/29, Continuously Callable @100 | $ | 1,000 | $ | 1,111 | |||||||
Series A, 5.00%, 10/1/30, Continuously Callable @100 | 1,000 | 1,111 | |||||||||
Series A, 5.00%, 10/1/31, Continuously Callable @100 | 695 | 771 | |||||||||
Guam Power Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 10/1/27, Continuously Callable @100 | 1,000 | 1,046 | |||||||||
Series A, 5.00%, 10/1/30, Continuously Callable @100 | 1,000 | 1,045 | |||||||||
Series A, 5.00%, 10/1/32, Continuously Callable @100 | 1,000 | 1,125 | |||||||||
Territory of Guam Revenue | |||||||||||
Series A, 5.00%, 12/1/30, Continuously Callable @100 | 1,500 | 1,747 | |||||||||
Series A, 5.00%, 12/1/31, Continuously Callable @100 | 2,000 | 2,322 | |||||||||
20,566 | |||||||||||
Idaho (0.4%): | |||||||||||
Idaho Health Facilities Authority Revenue | |||||||||||
5.00%, 3/1/35, Continuously Callable @100 | 5,805 | 7,104 | |||||||||
5.00%, 3/1/36, Continuously Callable @100 | 4,085 | 4,988 | |||||||||
5.00%, 3/1/37, Continuously Callable @100 | 3,000 | 3,656 | |||||||||
Idaho Housing & Finance Association Revenue | |||||||||||
Series A, 4.00%, 7/15/38, Continuously Callable @100 | 1,750 | 2,085 | |||||||||
Series A, 4.00%, 7/15/39, Continuously Callable @100 | 1,750 | 2,080 | |||||||||
19,913 | |||||||||||
Illinois (13.8%): | |||||||||||
Champaign County Community Unit School District No. 4 Champaign, GO | |||||||||||
4.00%, 6/1/34, Continuously Callable @100 | 1,000 | 1,174 | |||||||||
4.00%, 6/1/35, Continuously Callable @100 | 1,290 | 1,509 | |||||||||
4.00%, 6/1/36, Continuously Callable @100 | 1,575 | 1,838 | |||||||||
Chicago Board of Education, GO | |||||||||||
Series A, 12/1/25 (h) | 1,600 | 1,523 | |||||||||
Series A, 12/1/26 (h) | 3,700 | 3,459 | |||||||||
Series A, 5.00%, 12/1/36, Continuously Callable @100 | 2,110 | 2,629 | |||||||||
Series A, 5.00%, 12/1/40, Continuously Callable @100 | 1,700 | 2,095 | |||||||||
Series B, 5.00%, 12/1/36, Continuously Callable @100 | 1,250 | 1,557 | |||||||||
Chicago Midway International Airport Revenue | |||||||||||
Series B, 5.00%, 1/1/27, Continuously Callable @100 | 6,525 | 6,923 | |||||||||
Series B, 5.00%, 1/1/29, Continuously Callable @100 | 11,750 | 13,004 | |||||||||
Series B, 5.00%, 1/1/30, Continuously Callable @100 | 5,175 | 5,724 | |||||||||
Series B, 5.00%, 1/1/31, Continuously Callable @100 | 8,910 | 9,848 | |||||||||
Series B, 5.00%, 1/1/32, Continuously Callable @100 | 6,000 | 6,627 | |||||||||
Series B, 5.25%, 1/1/33, Continuously Callable @100 | 1,635 | 1,738 | |||||||||
Series B, 4.00%, 1/1/34, Continuously Callable @100 | 3,500 | 3,988 | |||||||||
Series B, 4.00%, 1/1/35, Continuously Callable @100 | 3,000 | 3,415 | |||||||||
Chicago O'Hare International Airport Revenue | |||||||||||
5.00%, 1/1/33, Continuously Callable @100 | 11,560 | 13,151 | |||||||||
5.00%, 1/1/34, Continuously Callable @100 | 5,675 | 6,450 | |||||||||
Series A, 4.00%, 1/1/37, Continuously Callable @100 | 2,000 | 2,347 | |||||||||
Series A, 4.00%, 1/1/38, Continuously Callable @100 | 1,000 | 1,170 | |||||||||
Series B, 5.25%, 1/1/29, Continuously Callable @100 | 13,480 | 14,296 | |||||||||
See notes to financial statements.
12
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Chicago O'Hare International Airport Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 1/1/28, Continuously Callable @100 | $ | 3,620 | $ | 3,827 | |||||||
5.00%, 1/1/29, Continuously Callable @100 | 1,500 | 1,586 | |||||||||
5.13%, 1/1/30, Continuously Callable @100 | 2,150 | 2,275 | |||||||||
Chicago Park District, GO | |||||||||||
Series F-2, 4.00%, 1/1/34, Continuously Callable @100 | 1,200 | 1,407 | |||||||||
Series F-2, 4.00%, 1/1/36, Continuously Callable @100 | 1,300 | 1,512 | |||||||||
Series F-2, 5.00%, 1/1/37, Continuously Callable @100 | 2,000 | 2,489 | |||||||||
Series F-2, 4.00%, 1/1/38, Continuously Callable @100 | 1,750 | 2,015 | |||||||||
Series F-2, 5.00%, 1/1/39, Continuously Callable @100 | 1,500 | 1,857 | |||||||||
Series F-2, 5.00%, 1/1/40, Continuously Callable @100 | 1,125 | 1,391 | |||||||||
| Chicago Transit Authority Sales Tax Receipts Fund Revenue, Series A, 5.00%, 12/1/45, Continuously Callable @100 | 5,000 | 6,146 | |||||||||
City of Chicago Special Assessment, 6.63%, 12/1/22, Continuously Callable @100 | 1,241 | 1,245 | |||||||||
City of Chicago Wastewater Transmission Revenue | |||||||||||
5.00%, 1/1/31, Continuously Callable @100 | 1,000 | 1,088 | |||||||||
5.00%, 1/1/32, Continuously Callable @100 | 1,000 | 1,088 | |||||||||
Series B, 5.00%, 1/1/35, Continuously Callable @100 | 8,000 | 9,598 | |||||||||
Series C, 5.00%, 1/1/33, Continuously Callable @100 | 3,500 | 3,976 | |||||||||
Series C, 5.00%, 1/1/35, Continuously Callable @100 | 1,250 | 1,418 | |||||||||
| City of Chicago Wastewater Transmission Revenue Bonds, Series C, 5.00%, 1/1/34, Continuously Callable @100 | 1,000 | 1,135 | |||||||||
City of Chicago Waterworks Revenue | |||||||||||
5.00%, 11/1/28, Continuously Callable @100 | 1,500 | 1,795 | |||||||||
5.00%, 11/1/29, Continuously Callable @100 | 725 | 867 | |||||||||
5.00%, 11/1/30, Continuously Callable @100 | 2,000 | 2,389 | |||||||||
5.00%, 11/1/31, Continuously Callable @100 | 2,000 | 2,254 | |||||||||
5.00%, 11/1/33, Continuously Callable @100 | 2,000 | 2,250 | |||||||||
5.00%, 11/1/36, Continuously Callable @100 | 2,665 | 3,209 | |||||||||
Series A-1, 5.00%, 11/1/29, Continuously Callable @100 | 1,000 | 1,195 | |||||||||
Series A-1, 5.00%, 11/1/31, Continuously Callable @100 | 1,000 | 1,193 | |||||||||
City of Chicago Waterworks Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.25%, 11/1/34, Continuously Callable @100 | 2,105 | 2,633 | |||||||||
5.25%, 11/1/35, Continuously Callable @100 | 1,635 | 2,024 | |||||||||
Series 2017-2, 5.00%, 11/1/36, Continuously Callable @100 | 3,145 | 3,818 | |||||||||
Series 2017-2, 5.00%, 11/1/37, Continuously Callable @100 | 2,500 | 3,021 | |||||||||
City of Chicago, GO (INS — National Public Finance Guarantee Corp.), 1/1/23 (h) | 30,000 | 29,575 | |||||||||
| City of Springfield Electric Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 3/1/34, Continuously Callable @100 | 3,000 | 3,410 | |||||||||
City of Springfield, GO, 5.00%, 12/1/30, Continuously Callable @100 | 8,500 | 9,970 | |||||||||
County of Cook Sales Tax Revenue | |||||||||||
4.00%, 11/15/34, Continuously Callable @100 | 3,750 | 4,279 | |||||||||
5.00%, 11/15/35, Continuously Callable @100 | 7,000 | 8,491 | |||||||||
5.00%, 11/15/36, Continuously Callable @100 | 5,000 | 6,045 | |||||||||
County of Cook, GO | |||||||||||
5.00%, 11/15/34, Continuously Callable @100 | 2,000 | 2,391 | |||||||||
5.00%, 11/15/35, Continuously Callable @100 | 2,000 | 2,365 | |||||||||
Series A, 5.00%, 11/15/31, Continuously Callable @100 | 2,500 | 3,007 | |||||||||
See notes to financial statements.
13
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Illinois Educational Facilities Authority Revenue | |||||||||||
4.00%, 11/1/36, Continuously Callable @102 | $ | 9,750 | $ | 11,134 | |||||||
4.45%, 11/1/36, Continuously Callable @102 | 4,500 | 5,218 | |||||||||
3.90%, 11/1/36, Continuously Callable @102 | 2,220 | 2,538 | |||||||||
Illinois Finance Authority Revenue | |||||||||||
3.25%, 5/15/22 | 570 | 576 | |||||||||
5.00%, 2/15/27 (i) | 7,650 | 5,087 | |||||||||
5.40%, 4/1/27, Continuously Callable @100 | 1,435 | 1,437 | |||||||||
4.00%, 5/15/27 | 3,065 | 3,314 | |||||||||
5.50%, 7/1/28, Continuously Callable @100 | 8,250 | 8,981 | |||||||||
3.90%, 3/1/30, Continuously Callable @100 | 20,000 | 21,658 | |||||||||
5.00%, 5/15/30, Continuously Callable @100 | 1,000 | 1,136 | |||||||||
5.00%, 5/15/31, Continuously Callable @100 | 1,875 | 2,166 | |||||||||
5.00%, 8/15/32, Pre-refunded 8/15/26 @ 100 | 1,500 | 1,800 | |||||||||
5.00%, 8/15/33, Pre-refunded 8/15/26 @ 100 | 1,155 | 1,386 | |||||||||
5.00%, 8/15/34, Pre-refunded 8/15/26 @ 100 | 1,000 | 1,200 | |||||||||
5.00%, 12/1/34, Continuously Callable @100 | 3,500 | 4,145 | |||||||||
5.00%, 5/15/35, Continuously Callable @100 | 1,100 | 1,244 | |||||||||
5.00%, 8/15/35, Continuously Callable @100 | 4,000 | 4,648 | |||||||||
5.00%, 10/1/35, Continuously Callable @100 | 600 | 751 | |||||||||
4.00%, 12/1/35, Continuously Callable @100 | 5,000 | 5,553 | |||||||||
5.00%, 5/15/36, Continuously Callable @100 | 1,400 | 1,613 | |||||||||
4.00%, 12/1/36, Continuously Callable @100 | 3,000 | 3,332 | |||||||||
5.00%, 2/15/37, Continuously Callable @100 | 1,000 | 1,153 | |||||||||
5.00%, 10/1/37, Continuously Callable @100 | 700 | 871 | |||||||||
2.45%, 10/1/39, (Put Date 10/1/29) (e) | 14,000 | 15,029 | |||||||||
5.00%, 10/1/39, Continuously Callable @100 | 700 | 867 | |||||||||
4.00%, 10/1/40, Continuously Callable @100 | 1,000 | 1,143 | |||||||||
Series A, 4.50%, 5/15/25, Pre-refunded 5/15/22 @ 100 | 8,210 | 8,426 | |||||||||
Series A, 4.00%, 10/1/31, Continuously Callable @100 | 1,000 | 1,151 | |||||||||
Series A, 4.00%, 10/1/32, Continuously Callable @100 | 1,000 | 1,144 | |||||||||
Series A, 5.00%, 9/1/34, Pre-refunded 9/1/24 @ 100 | 3,385 | 3,847 | |||||||||
Series A, 4.00%, 10/1/34, Continuously Callable @100 | 1,000 | 1,134 | |||||||||
Series A, 5.00%, 11/15/34, Continuously Callable @100 | 3,700 | 4,311 | |||||||||
Series A, 5.00%, 11/15/35, Continuously Callable @100 | 3,000 | 3,492 | |||||||||
Series C, 4.00%, 2/15/36, Continuously Callable @100 | 18,000 | 20,529 | |||||||||
| Illinois Municipal Electric Agency Revenue, Series A, 4.00%, 2/1/33, Continuously Callable @100 | 14,650 | 16,446 | |||||||||
Illinois Sports Facilities Authority Revenue | |||||||||||
5.00%, 6/15/30, Continuously Callable @100 | 1,025 | 1,263 | |||||||||
5.25%, 6/15/30, Continuously Callable @100 | 3,000 | 3,296 | |||||||||
5.25%, 6/15/31, Continuously Callable @100 | 5,000 | 5,477 | |||||||||
5.25%, 6/15/32, Continuously Callable @100 | 5,000 | 5,461 | |||||||||
Illinois State Toll Highway Authority Revenue | |||||||||||
Series A, 5.00%, 12/1/32, Continuously Callable @100 | 5,000 | 5,878 | |||||||||
Series A, 5.00%, 1/1/34, Continuously Callable @100 | 5,870 | 6,791 | |||||||||
Series A, 5.00%, 1/1/35, Continuously Callable @100 | 5,600 | 6,473 | |||||||||
Series A, 5.00%, 1/1/36, Continuously Callable @100 | 7,000 | 8,086 | |||||||||
Kane Cook & DuPage Counties School District No. U-46 Elgin, GO | |||||||||||
Series D, 5.00%, 1/1/32, Continuously Callable @100 | 2,800 | 3,080 | |||||||||
Series D, 5.00%, 1/1/33, Continuously Callable @100 | 4,000 | 4,396 | |||||||||
See notes to financial statements.
14
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Kendall Kane & Will Counties Community Unit School District No. 308, GO | |||||||||||
5.00%, 2/1/35, Continuously Callable @100 | $ | 5,000 | $ | 5,846 | |||||||
5.00%, 2/1/36, Continuously Callable @100 | 6,000 | 7,006 | |||||||||
| Madison County Community Unit School District No. 7 Edwardsville, GO (INS — Build America Mutual Assurance Co.) | |||||||||||
5.00%, 12/1/28, Continuously Callable @100 | 1,210 | 1,415 | |||||||||
5.00%, 12/1/29, Continuously Callable @100 | 1,250 | 1,461 | |||||||||
| Madison-Macoupin Etc Counties Community College District No. 536, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 11/1/31, Continuously Callable @100 | 1,000 | 1,184 | |||||||||
Series A, 5.00%, 11/1/32, Continuously Callable @100 | 2,000 | 2,365 | |||||||||
Series A, 5.00%, 11/1/33, Continuously Callable @100 | 750 | 886 | |||||||||
| Metropolitan Pier & Exposition Authority Revenue, 5.00%, 6/15/42, Continuously Callable @100 | 2,000 | 2,456 | |||||||||
| Metropolitan Pier & Exposition Authority Revenue (INS — Assured Guaranty Municipal Corp.), 6/15/26 (h) | 5,000 | 4,652 | |||||||||
Northern Illinois Municipal Power Agency Revenue | |||||||||||
Series A, 4.00%, 12/1/31, Continuously Callable @100 | 1,800 | 2,081 | |||||||||
Series A, 4.00%, 12/1/32, Continuously Callable @100 | 2,100 | 2,416 | |||||||||
Series A, 4.00%, 12/1/33, Continuously Callable @100 | 4,000 | 4,578 | |||||||||
Series A, 4.00%, 12/1/35, Continuously Callable @100 | 5,000 | 5,680 | |||||||||
Northern Illinois University Revenue | |||||||||||
4.00%, 10/1/38, Continuously Callable @100 | 650 | 758 | |||||||||
4.00%, 10/1/40, Continuously Callable @100 | 400 | 465 | |||||||||
4.00%, 10/1/41, Continuously Callable @100 | 400 | 462 | |||||||||
4.00%, 10/1/43, Continuously Callable @100 | 700 | 809 | |||||||||
| Northern Illinois University Revenue (INS — Build America Mutual Assurance Co.), Series B, 4.00%, 4/1/39, Continuously Callable @100 | 1,375 | 1,581 | |||||||||
Regional Transportation Authority Revenue | |||||||||||
Series A, 4.00%, 7/1/34, Continuously Callable @100 | 23,160 | 26,751 | |||||||||
Series A, 4.00%, 7/1/35, Continuously Callable @100 | 11,650 | 13,423 | |||||||||
Sales Tax Securitization Corp. Revenue | |||||||||||
Series A, 4.00%, 1/1/38, Continuously Callable @100 | 6,310 | 7,356 | |||||||||
Series A, 4.00%, 1/1/39, Continuously Callable @100 | 500 | 582 | |||||||||
Sangamon County School District No. 186 Springfield, GO | |||||||||||
Series B, 5.00%, 2/1/24 | 2,660 | 2,948 | |||||||||
Series B, 5.00%, 2/1/24 | 1,040 | 1,152 | |||||||||
Series B, 5.00%, 2/1/25, Continuously Callable @100 | 5,765 | 6,383 | |||||||||
Series B, 5.00%, 2/1/25, Pre-refunded 2/1/24 @ 100 | 1,435 | 1,592 | |||||||||
| Sangamon County School District No. 186 Springfield, GO (INS — Build America Mutual Assurance Co.), Series B, 5.00%, 2/1/26, Continuously Callable @100 | 4,215 | 4,666 | |||||||||
State of Illinois, GO | |||||||||||
5.25%, 2/1/31, Continuously Callable @100 | 9,000 | 9,893 | |||||||||
Series A, 5.00%, 11/1/25 | 11,000 | 12,833 | |||||||||
Series B, 5.00%, 10/1/28 | 3,000 | 3,707 | |||||||||
Series B, 5.00%, 11/1/32, Continuously Callable @100 | 10,000 | 12,317 | |||||||||
Series C, 5.00%, 11/1/29, Continuously Callable @100 | 6,705 | 8,129 | |||||||||
Series D, 5.00%, 11/1/28, Continuously Callable @100 | 5,795 | 7,037 | |||||||||
State of Illinois, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
4.00%, 2/1/30, Continuously Callable @100 | 7,000 | 7,892 | |||||||||
Series A, 5.00%, 4/1/29, Continuously Callable @100 | 10,000 | 10,628 | |||||||||
See notes to financial statements.
15
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| State of Illinois, GO (INS — Build America Mutual Assurance Co.), Series D, 5.00%, 11/1/25 (d) | $ | 10,000 | $ | 11,582 | |||||||
| University of Illinois Revenue, Series A, 4.00%, 4/1/33, Continuously Callable @100 | 12,475 | 14,135 | |||||||||
Village of Bolingbrook, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 1/1/29, Continuously Callable @100 | 1,750 | 2,167 | |||||||||
Series A, 5.00%, 1/1/30, Continuously Callable @100 | 1,500 | 1,855 | |||||||||
Series A, 5.00%, 1/1/31, Continuously Callable @100 | 2,400 | 2,963 | |||||||||
Series A, 5.00%, 1/1/32, Continuously Callable @100 | 2,350 | 2,895 | |||||||||
Series A, 5.00%, 1/1/33, Continuously Callable @100 | 1,450 | 1,780 | |||||||||
Series A, 5.00%, 1/1/38, Continuously Callable @100 | 1,500 | 1,820 | |||||||||
| Village of Gilberts Special Tax (INS — Build America Mutual Assurance Co.), 5.00%, 3/1/30, Continuously Callable @100 | 5,221 | 5,944 | |||||||||
Village of Rosemont, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 12/1/25 | 2,010 | 2,359 | |||||||||
Series A, 5.00%, 12/1/26 | 2,110 | 2,543 | |||||||||
| Volo Village Special Service Area No. 3 & 6 Special Tax (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 3/1/34, Continuously Callable @100 | 2,997 | 3,393 | |||||||||
4.00%, 3/1/36, Continuously Callable @100 | 1,250 | 1,335 | |||||||||
| Will County Community High School District No. 210 Lincoln-Way, GO, 4.00%, 1/1/34, Continuously Callable @100 | 650 | 737 | |||||||||
| Williamson Jackson Etc Counties Community Unit School District No. 4, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 12/1/28, Continuously Callable @100 | 1,835 | 2,130 | |||||||||
5.00%, 12/1/29, Continuously Callable @100 | 1,925 | 2,232 | |||||||||
5.00%, 12/1/30, Continuously Callable @100 | 2,025 | 2,345 | |||||||||
5.00%, 12/1/34, Continuously Callable @100 | 6,000 | 6,916 | |||||||||
715,881 | |||||||||||
Indiana (1.5%): | |||||||||||
City of Rockport Revenue, Series A, 3.05%, 6/1/25 | 5,750 | 6,184 | |||||||||
Hammond Multi-School Building Corp. Revenue | |||||||||||
5.00%, 7/15/33, Continuously Callable @100 | 1,165 | 1,423 | |||||||||
5.00%, 7/15/34, Continuously Callable @100 | 1,000 | 1,222 | |||||||||
5.00%, 7/15/35, Continuously Callable @100 | 1,250 | 1,525 | |||||||||
5.00%, 7/15/38, Continuously Callable @100 | 3,000 | 3,644 | |||||||||
Indiana Bond Bank Revenue | |||||||||||
1/15/30, Continuously Callable @97 (h) | 740 | 642 | |||||||||
7/15/30, Continuously Callable @96 (h) | 750 | 643 | |||||||||
7/15/31, Continuously Callable @93 (h) | 1,490 | 1,238 | |||||||||
7/15/32, Continuously Callable @91 (h) | 1,400 | 1,120 | |||||||||
Indiana Finance Authority Revenue | |||||||||||
3.13%, 12/1/24 | 6,000 | 6,508 | |||||||||
1.40%, 8/1/29, Continuously Callable @100 | 7,000 | 6,874 | |||||||||
5.00%, 9/1/30, Continuously Callable @100 | 1,250 | 1,496 | |||||||||
5.00%, 9/1/31, Continuously Callable @100 | 1,500 | 1,794 | |||||||||
5.00%, 11/15/33, Continuously Callable @103 | 2,000 | 2,376 | |||||||||
4.00%, 7/1/36, Continuously Callable @100 | 3,660 | 4,152 | |||||||||
4.00%, 7/1/38, Continuously Callable @100 | 4,030 | 4,534 | |||||||||
5.00%, 11/15/38, Continuously Callable @103 | 3,000 | 3,548 | |||||||||
See notes to financial statements.
16
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
4.00%, 7/1/39, Continuously Callable @100 | $ | 3,605 | $ | 4,038 | |||||||
Series A, 5.00%, 5/1/24, Pre-refunded 5/1/23 @ 100 | 1,470 | 1,583 | |||||||||
Series A, 5.00%, 5/1/27, Pre-refunded 5/1/23 @ 100 | 1,200 | 1,292 | |||||||||
Series A, 5.00%, 6/1/32, Continuously Callable @100 | 10,500 | 10,648 | |||||||||
Series A, 4.00%, 11/15/41, Continuously Callable @103 | 4,000 | 4,605 | |||||||||
| Richmond Hospital Authority Revenue, 5.00%, 1/1/35, Continuously Callable @100 | 6,500 | 7,368 | |||||||||
78,457 | |||||||||||
Iowa (0.5%): | |||||||||||
City of Waverly Revenue, 2.50%, 12/31/22, Continuously Callable @100 | 2,000 | 2,033 | |||||||||
Iowa Finance Authority Revenue | |||||||||||
Series E, 4.00%, 8/15/35, Continuously Callable @100 | 5,425 | 6,044 | |||||||||
Series E, 4.00%, 8/15/36, Continuously Callable @100 | 15,105 | 16,757 | |||||||||
Iowa Tobacco Settlement Authority Revenue | |||||||||||
Series A-2, 4.00%, 6/1/38, Continuously Callable @100 | 270 | 320 | |||||||||
Series A-2, 4.00%, 6/1/39, Continuously Callable @100 | 300 | 355 | |||||||||
Series A-2, 4.00%, 6/1/40, Continuously Callable @100 | 200 | 236 | |||||||||
25,745 | |||||||||||
Kansas (0.3%): | |||||||||||
City of St. Marys Revenue, 0.09%, 4/15/32, Continuously Callable @100 (c) | 800 | 800 | |||||||||
City of Wichita Revenue | |||||||||||
4.20%, 9/1/27, Continuously Callable @100 | 2,025 | 2,044 | |||||||||
4.63%, 9/1/33, Continuously Callable @100 | 10,000 | 10,093 | |||||||||
12,937 | |||||||||||
Kentucky (3.4%): | |||||||||||
City of Ashland Revenue | |||||||||||
4.00%, 2/1/35, Continuously Callable @100 | 470 | 538 | |||||||||
4.00%, 2/1/36, Continuously Callable @100 | 2,410 | 2,621 | |||||||||
4.00%, 2/1/37, Continuously Callable @100 | 1,115 | 1,263 | |||||||||
County of Trimble Revenue, 3.75%, 6/1/33, Continuously Callable @100 | 15,000 | 16,852 | |||||||||
Kentucky Economic Development Finance Authority Revenue | |||||||||||
5.00%, 5/15/26 | 6,750 | 7,151 | |||||||||
5.00%, 5/15/31, Continuously Callable @100 | 7,205 | 7,723 | |||||||||
5.00%, 5/15/36, Continuously Callable @100 | 2,500 | 2,669 | |||||||||
Series B, 10/1/24 (h) | 6,130 | 5,929 | |||||||||
Series B-3, 1.45% (MUNIPSA+140bps), 2/1/46, (Put Date 2/1/25) (e) (k) | 20,000 | 20,320 | |||||||||
| Kentucky Municipal Power Agency Revenue, Series A, 3.45%, 9/1/42, (Put Date 3/1/26) (e) | 7,000 | 7,426 | |||||||||
Kentucky Public Energy Authority Revenue | |||||||||||
Series B, 4.00%, 1/1/49, (Put Date 1/1/25) (e) | 14,285 | 15,779 | |||||||||
Series C-1, 4.00%, 12/1/49, (Put Date 6/1/25) (e) | 20,000 | 22,315 | |||||||||
Series C-3, 1.10% (MUNIPSA+105bps), 12/1/49, (Put Date 6/1/25) (e) (k) | 20,000 | 20,537 | |||||||||
Kentucky State Property & Building Commission Revenue | |||||||||||
5.00%, 5/1/35, Continuously Callable @100 | 1,000 | 1,215 | |||||||||
5.00%, 5/1/36, Continuously Callable @100 | 1,000 | 1,215 | |||||||||
5.00%, 5/1/37, Continuously Callable @100 | 3,000 | 3,643 | |||||||||
Series A, 5.00%, 2/1/32, Continuously Callable @100 | 2,000 | 2,344 | |||||||||
Series A, 5.00%, 2/1/33, Continuously Callable @100 | 2,250 | 2,634 | |||||||||
See notes to financial statements.
17
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A, 4.00%, 11/1/35, Continuously Callable @100 | $ | 565 | $ | 653 | |||||||
Series A, 4.00%, 11/1/36, Continuously Callable @100 | 750 | 865 | |||||||||
Series A, 4.00%, 11/1/37, Continuously Callable @100 | 750 | 862 | |||||||||
Series A, 4.00%, 11/1/38, Continuously Callable @100 | 500 | 574 | |||||||||
Louisville/Jefferson County Metropolitan Government Revenue | |||||||||||
5.00%, 12/1/22, Pre-refunded 6/1/22 @ 100 | 3,830 | 3,951 | |||||||||
5.00%, 12/1/23, Pre-refunded 6/1/22 @ 100 | 2,760 | 2,847 | |||||||||
5.00%, 12/1/24, Pre-refunded 6/1/22 @ 100 | 7,160 | 7,386 | |||||||||
0.05%, 6/1/33, Callable 10/12/21 @ 100 (c) | 11,500 | 11,500 | |||||||||
1.75%, 2/1/35, (Put Date 7/1/26) (e) | 5,000 | 5,238 | |||||||||
176,050 | |||||||||||
Louisiana (3.6%): | |||||||||||
City of New Orleans Sewerage Service Revenue | |||||||||||
5.00%, 6/1/31, Pre-refunded 6/1/25 @ 100 | 700 | 818 | |||||||||
5.00%, 6/1/32, Pre-refunded 6/1/25 @ 100 | 1,150 | 1,344 | |||||||||
5.00%, 6/1/34, Pre-refunded 6/1/25 @ 100 | 1,500 | 1,754 | |||||||||
City of New Orleans Water System Revenue | |||||||||||
5.00%, 12/1/33, Pre-refunded 12/1/25 @ 100 | 1,500 | 1,784 | |||||||||
5.00%, 12/1/35, Pre-refunded 12/1/25 @ 100 | 1,500 | 1,783 | |||||||||
City of Shreveport Water & Sewer Revenue | |||||||||||
Series B, 5.00%, 12/1/31, Continuously Callable @100 | 5,330 | 6,048 | |||||||||
Series B, 5.00%, 12/1/32, Continuously Callable @100 | 5,125 | 5,810 | |||||||||
| City of Shreveport Water & Sewer Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 12/1/33, Continuously Callable @100 | 1,515 | 1,769 | |||||||||
5.00%, 12/1/34, Continuously Callable @100 | 1,500 | 1,749 | |||||||||
5.00%, 12/1/35, Continuously Callable @100 | 1,510 | 1,760 | |||||||||
| City of Shreveport Water & Sewer Revenue (INS — Build America Mutual Assurance Co.) | |||||||||||
Series C, 5.00%, 12/1/30, Continuously Callable @100 | 1,000 | 1,253 | |||||||||
Series C, 5.00%, 12/1/31, Continuously Callable @100 | 2,000 | 2,497 | |||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority Revenue, 3.50%, 11/1/32, Continuously Callable @100 | 18,750 | 20,668 | |||||||||
Louisiana Public Facilities Authority Revenue | |||||||||||
5.00%, 7/1/33, Continuously Callable @100 | 8,940 | 10,339 | |||||||||
5.00%, 7/1/33, Pre-refunded 7/1/25 @ 100 | 55 | 64 | |||||||||
5.00%, 5/15/34, Continuously Callable @100 | 2,225 | 2,627 | |||||||||
5.00%, 5/15/34, Pre-refunded 5/15/26 @ 100 | 25 | 30 | |||||||||
5.00%, 5/15/34, Continuously Callable @100 | 2,975 | 3,607 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 13,465 | 15,558 | |||||||||
5.00%, 7/1/34, Pre-refunded 7/1/25 @ 100 | 85 | 100 | |||||||||
4.00%, 5/15/35, Continuously Callable @100 | 3,465 | 3,877 | |||||||||
4.00%, 5/15/35, Pre-refunded 5/15/26 @ 100 | 35 | 41 | |||||||||
5.00%, 5/15/35, Continuously Callable @100 | 2,000 | 2,420 | |||||||||
4.00%, 5/15/36, Continuously Callable @100 | 1,485 | 1,655 | |||||||||
4.00%, 5/15/36, Pre-refunded 5/15/26 @ 100 | 15 | 17 | |||||||||
5.00%, 5/15/36, Continuously Callable @100 | 1,560 | 1,881 | |||||||||
4.00%, 10/1/36, Continuously Callable @100 | 1,625 | 1,945 | |||||||||
4.00%, 10/1/39, Continuously Callable @100 | 1,625 | 1,929 | |||||||||
4.00%, 10/1/40, Continuously Callable @100 | 1,400 | 1,656 | |||||||||
See notes to financial statements.
18
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A, 4.00%, 12/15/32, Continuously Callable @100 | $ | 2,735 | $ | 3,131 | |||||||
Series A, 4.00%, 12/15/33, Continuously Callable @100 | 3,095 | 3,523 | |||||||||
| Louisiana Public Facilities Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 6/1/36, Continuously Callable @100 | 2,000 | 2,286 | |||||||||
Louisiana State University & Agricultural & Mechanical College Revenue | |||||||||||
Series A, 4.00%, 7/1/31, Continuously Callable @100 | 1,000 | 1,146 | |||||||||
Series A, 4.00%, 7/1/32, Continuously Callable @100 | 1,000 | 1,142 | |||||||||
Series A, 4.00%, 7/1/33, Continuously Callable @100 | 1,000 | 1,135 | |||||||||
New Orleans Aviation Board Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 1/1/35, Continuously Callable @100 | 1,840 | 2,222 | |||||||||
5.00%, 1/1/36, Continuously Callable @100 | 1,250 | 1,510 | |||||||||
5.00%, 1/1/37, Continuously Callable @100 | 1,500 | 1,808 | |||||||||
5.00%, 10/1/37, Continuously Callable @100 | 2,000 | 2,483 | |||||||||
5.00%, 1/1/38, Continuously Callable @100 | 1,300 | 1,565 | |||||||||
Parish of St. Charles Revenue, 4.00%, 12/1/40, (Put Date 6/1/22) (e) | 16,750 | 17,136 | |||||||||
Parish of St. James Revenue | |||||||||||
Series A-1, 0.09%, 11/1/40, Continuously Callable @100 (c) | 22,500 | 22,500 | |||||||||
Series B-1, 0.09%, 11/1/40, Continuously Callable @100 (c) (d) | 6,400 | 6,400 | |||||||||
Parish of St. John the Baptist Revenue, 2.20%, 6/1/37, (Put Date 7/1/26) (e) | 6,750 | 7,053 | |||||||||
Tangipahoa Parish Hospital Service District No. 1 Revenue | |||||||||||
4.00%, 2/1/38, Continuously Callable @100 (g) | 2,375 | 2,733 | |||||||||
4.00%, 2/1/39, Continuously Callable @100 (g) | 2,330 | 2,675 | |||||||||
4.00%, 2/1/41, Continuously Callable @100 (g) | 1,500 | 1,718 | |||||||||
4.00%, 2/1/42, Continuously Callable @100 (g) | 1,500 | 1,717 | |||||||||
Tobacco Settlement Financing Corp. Revenue | |||||||||||
Series A, 5.00%, 5/15/23 | 5,000 | 5,376 | |||||||||
Series A, 5.25%, 5/15/31, Continuously Callable @100 | 3,615 | 3,623 | |||||||||
189,665 | |||||||||||
Maine (0.1%): | |||||||||||
Maine Health & Higher Educational Facilities Authority Revenue | |||||||||||
5.00%, 7/1/24, Pre-refunded 7/1/23 @ 100 | 1,635 | 1,771 | |||||||||
5.00%, 7/1/26, Pre-refunded 7/1/23 @ 100 | 1,000 | 1,084 | |||||||||
5.00%, 7/1/27, Pre-refunded 7/1/23 @ 100 | 1,000 | 1,083 | |||||||||
3,938 | |||||||||||
Maryland (1.1%): | |||||||||||
City of Gaithersburg Revenue | |||||||||||
5.00%, 1/1/33, Continuously Callable @104 | 3,000 | 3,382 | |||||||||
5.00%, 1/1/36, Continuously Callable @104 | 1,000 | 1,125 | |||||||||
| Howard County Housing Commission Revenue, Series A, 1.60%, 6/1/29, Continuously Callable @100 | 3,000 | 2,991 | |||||||||
Maryland Economic Development Corp. Revenue | |||||||||||
Series A, 5.00%, 6/1/30, Continuously Callable @100 | 1,250 | 1,531 | |||||||||
Series A, 5.00%, 6/1/31, Continuously Callable @100 | 1,000 | 1,219 | |||||||||
Series A, 5.00%, 6/1/32, Continuously Callable @100 | 1,000 | 1,214 | |||||||||
Series A, 5.00%, 6/1/35, Continuously Callable @100 | 2,000 | 2,401 | |||||||||
Maryland Health & Higher Educational Facilities Authority Revenue | |||||||||||
5.50%, 1/1/29, Continuously Callable @100 | 1,415 | 1,732 | |||||||||
5.50%, 1/1/30, Continuously Callable @100 | 1,750 | 2,139 | |||||||||
5.50%, 1/1/31, Continuously Callable @100 | 1,585 | 1,935 | |||||||||
See notes to financial statements.
19
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
5.00%, 7/1/31, Continuously Callable @100 | $ | 3,190 | $ | 3,736 | |||||||
5.00%, 7/1/32, Continuously Callable @100 | 6,505 | 7,570 | |||||||||
5.00%, 7/1/33, Continuously Callable @100 | 1,000 | 1,148 | |||||||||
5.00%, 7/1/33, Continuously Callable @100 | 3,600 | 4,161 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 2,500 | 2,870 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 2,200 | 2,527 | |||||||||
5.50%, 1/1/36, Continuously Callable @100 | 5,000 | 6,063 | |||||||||
4.00%, 1/1/38, Continuously Callable @100 | 865 | 986 | |||||||||
4.00%, 7/1/38, Continuously Callable @100 | 1,500 | 1,746 | |||||||||
4.00%, 7/1/39, Continuously Callable @100 | 1,585 | 1,841 | |||||||||
4.00%, 7/1/40, Continuously Callable @100 | 1,645 | 1,905 | |||||||||
Series A, 5.00%, 7/1/33, Continuously Callable @100 | 1,000 | 1,179 | |||||||||
Series A, 5.00%, 7/1/34, Continuously Callable @100 | 1,000 | 1,177 | |||||||||
Series A, 5.00%, 7/1/35, Continuously Callable @100 | 1,310 | 1,540 | |||||||||
Series A, 5.00%, 7/1/36, Continuously Callable @100 | 1,000 | 1,174 | |||||||||
59,292 | |||||||||||
Massachusetts (1.3%): | |||||||||||
| Massachusetts Clean Water Trust Revenue, Series 11, 4.75%, 8/1/25, Continuously Callable @100 | 110 | 110 | |||||||||
Massachusetts Development Finance Agency Revenue | |||||||||||
5.00%, 7/1/30, Continuously Callable @100 | 2,000 | 2,370 | |||||||||
5.00%, 7/1/31, Continuously Callable @100 | 1,675 | 1,982 | |||||||||
5.00%, 7/1/32, Continuously Callable @100 | 1,250 | 1,496 | |||||||||
4.00%, 10/1/32, Continuously Callable @105 (f) | 3,600 | 3,882 | |||||||||
5.00%, 4/15/33, Continuously Callable @100 | 2,155 | 2,433 | |||||||||
5.00%, 7/1/33, Continuously Callable @100 | 1,250 | 1,477 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 1,000 | 1,186 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 2,000 | 2,351 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 1,000 | 1,250 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 895 | 1,086 | |||||||||
5.00%, 7/1/37, Continuously Callable @100 | 800 | 998 | |||||||||
5.00%, 7/1/37, Continuously Callable @100 | 1,215 | 1,472 | |||||||||
5.00%, 10/1/37, Continuously Callable @105 (f) | 1,000 | 1,088 | |||||||||
5.00%, 7/1/38, Continuously Callable @100 | 600 | 747 | |||||||||
5.00%, 7/1/38, Continuously Callable @100 | 335 | 405 | |||||||||
4.00%, 7/1/46, Continuously Callable @100 | 1,000 | 1,144 | |||||||||
Series A, 5.00%, 7/1/22 | 1,480 | 1,532 | |||||||||
Series A, 5.00%, 7/1/27, Pre-refunded 7/1/22 @ 100 | 1,720 | 1,782 | |||||||||
Series A, 5.00%, 1/1/31, Continuously Callable @100 | 450 | 541 | |||||||||
Series A, 5.00%, 1/1/32, Continuously Callable @100 | 645 | 774 | |||||||||
Series A, 5.00%, 1/1/33, Continuously Callable @100 | 535 | 641 | |||||||||
Series A, 5.00%, 1/1/34, Continuously Callable @100 | 700 | 838 | |||||||||
Series A, 5.00%, 1/1/35, Continuously Callable @100 | 735 | 879 | |||||||||
Series A, 5.00%, 1/1/36, Continuously Callable @100 | 1,000 | 1,195 | |||||||||
Series A, 5.00%, 7/1/36, Continuously Callable @100 | 2,000 | 2,443 | |||||||||
Series A, 5.00%, 7/1/38, Continuously Callable @100 | 1,000 | 1,220 | |||||||||
Series A, 5.00%, 7/1/39, Continuously Callable @100 | 2,250 | 2,743 | |||||||||
Series E, 5.00%, 7/1/35, Continuously Callable @100 | 1,500 | 1,761 | |||||||||
Series E, 5.00%, 7/1/36, Continuously Callable @100 | 1,000 | 1,173 | |||||||||
See notes to financial statements.
20
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series G, 5.00%, 7/1/35, Continuously Callable @100 | $ | 200 | $ | 260 | |||||||
Series G, 5.00%, 7/1/36, Continuously Callable @100 | 200 | 259 | |||||||||
Series G, 5.00%, 7/1/37, Continuously Callable @100 | 400 | 517 | |||||||||
Series G, 5.00%, 7/1/38, Continuously Callable @100 | 300 | 387 | |||||||||
Series G, 5.00%, 7/1/39, Continuously Callable @100 | 350 | 451 | |||||||||
Series J2, 5.00%, 7/1/35, Continuously Callable @100 | 5,375 | 6,627 | |||||||||
Series J2, 5.00%, 7/1/36, Continuously Callable @100 | 4,415 | 5,431 | |||||||||
Series J2, 5.00%, 7/1/37, Continuously Callable @100 | 5,285 | 6,492 | |||||||||
Series J2, 5.00%, 7/1/38, Continuously Callable @100 | 5,000 | 6,135 | |||||||||
69,558 | |||||||||||
Michigan (1.9%): | |||||||||||
| Detroit Downtown Development Authority Tax Allocation (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 7/1/36, Continuously Callable @100 | 1,000 | 1,114 | |||||||||
Series A, 5.00%, 7/1/37, Continuously Callable @100 | 2,000 | 2,227 | |||||||||
Flint Hospital Building Authority Revenue | |||||||||||
4.00%, 7/1/32, Continuously Callable @100 | 2,525 | 2,864 | |||||||||
4.00%, 7/1/33, Continuously Callable @100 | 2,620 | 2,961 | |||||||||
4.00%, 7/1/34, Continuously Callable @100 | 2,730 | 3,074 | |||||||||
4.00%, 7/1/35, Continuously Callable @100 | 1,635 | 1,834 | |||||||||
4.00%, 7/1/38, Continuously Callable @100 | 1,855 | 2,061 | |||||||||
| Great Lakes Water Authority Water Supply System Revenue, Series D, 4.00%, 7/1/32, Continuously Callable @100 | 13,560 | 15,533 | |||||||||
| Kent Hospital Finance Authority Revenue, Series A, 5.00%, 11/15/29, Pre-refunded 11/15/21 @ 100 | 12,000 | 12,066 | |||||||||
Livonia Public Schools, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 5/1/32, Continuously Callable @100 | 2,775 | 3,287 | |||||||||
5.00%, 5/1/33, Continuously Callable @100 | 2,875 | 3,401 | |||||||||
5.00%, 5/1/34, Continuously Callable @100 | 2,965 | 3,504 | |||||||||
5.00%, 5/1/35, Continuously Callable @100 | 3,065 | 3,617 | |||||||||
5.00%, 5/1/36, Continuously Callable @100 | 2,770 | 3,266 | |||||||||
Michigan Finance Authority Revenue | |||||||||||
5.00%, 11/1/34, Continuously Callable @100 | 1,000 | 1,237 | |||||||||
5.00%, 11/1/35, Continuously Callable @100 | 1,000 | 1,235 | |||||||||
4.00%, 11/15/35, Continuously Callable @100 | 6,000 | 6,798 | |||||||||
5.00%, 11/1/36, Continuously Callable @100 | 1,000 | 1,232 | |||||||||
4.00%, 11/15/36, Continuously Callable @100 | 1,000 | 1,129 | |||||||||
5.00%, 11/1/37, Continuously Callable @100 | 1,250 | 1,539 | |||||||||
Series 2016, 5.00%, 12/1/34, Continuously Callable @100 | 8,200 | 9,778 | |||||||||
Series 2016, 5.00%, 12/1/35, Continuously Callable @100 | 4,600 | 5,480 | |||||||||
| Michigan Finance Authority Revenue (NBGA — Michigan School Bond Qualification and Loan Program) | |||||||||||
Series A, 5.00%, 5/1/24 | 2,000 | 2,240 | |||||||||
Series A, 5.00%, 5/1/25 | 1,700 | 1,974 | |||||||||
| Michigan State Building Authority Revenue, Series I-A, 5.00%, 10/15/29, Continuously Callable @100 | 3,000 | 3,286 | |||||||||
Summit Academy North Revenue, 4.00%, 11/1/41, Continuously Callable @103 | 2,870 | 3,072 | |||||||||
99,809 | |||||||||||
See notes to financial statements.
21
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Minnesota (0.2%): | |||||||||||
| City of Minneapolis Revenue, Series A, 5.00%, 11/15/36, Continuously Callable @100 | $ | 5,000 | $ | 6,151 | |||||||
Housing & Redevelopment Authority of The City of St Paul Minnesota Revenue | |||||||||||
5.00%, 11/15/29, Pre-refunded 11/15/25 @ 100 | 1,750 | 2,070 | |||||||||
5.00%, 11/15/30, Pre-refunded 11/15/25 @ 100 | 1,275 | 1,509 | |||||||||
9,730 | |||||||||||
Mississippi (0.5%): | |||||||||||
| Mississippi Business Finance Corp. Revenue, 3.20%, 9/1/28, Continuously Callable @100 | 6,000 | 6,313 | |||||||||
Mississippi Development Bank Revenue | |||||||||||
Series A, 5.00%, 4/1/28, Continuously Callable @100 | 575 | 614 | |||||||||
Series A, 5.00%, 4/1/28, Pre-refunded 4/1/23 @ 100 | 920 | 986 | |||||||||
| Mississippi Development Bank Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 9/1/30, Continuously Callable @100 | 6,410 | 6,648 | |||||||||
Mississippi Hospital Equipment & Facilities Authority Revenue | |||||||||||
4.00%, 1/1/36, Continuously Callable @100 | 2,240 | 2,626 | |||||||||
4.00%, 1/1/37, Continuously Callable @100 | 2,260 | 2,634 | |||||||||
4.00%, 1/1/39, Continuously Callable @100 | 1,850 | 2,134 | |||||||||
4.00%, 1/1/40, Continuously Callable @100 | 2,675 | 3,068 | |||||||||
25,023 | |||||||||||
Missouri (1.2%): | |||||||||||
Cape Girardeau County IDA Revenue | |||||||||||
5.00%, 3/1/32, Continuously Callable @100 | 500 | 575 | |||||||||
5.00%, 3/1/36, Continuously Callable @100 | 750 | 855 | |||||||||
4.00%, 3/1/41, Continuously Callable @100 | 750 | 845 | |||||||||
Series A, 5.00%, 6/1/25, Continuously Callable @100 | 1,780 | 1,837 | |||||||||
Series A, 5.00%, 6/1/27, Continuously Callable @100 | 2,555 | 2,636 | |||||||||
Series A, 6.00%, 3/1/33, Continuously Callable @103 | 2,215 | 2,398 | |||||||||
Health & Educational Facilities Authority of the State of Missouri Revenue | |||||||||||
5.00%, 2/1/29, Continuously Callable @104 | 1,000 | 1,135 | |||||||||
5.00%, 5/1/30, Continuously Callable @100 | 2,310 | 2,449 | |||||||||
5.00%, 5/15/32, Continuously Callable @103 | 1,555 | 1,793 | |||||||||
5.25%, 5/1/33, Continuously Callable @100 | 2,350 | 2,498 | |||||||||
5.00%, 2/1/34, Continuously Callable @104 | 2,000 | 2,263 | |||||||||
5.00%, 5/15/36, Continuously Callable @103 | 4,565 | 5,253 | |||||||||
Missouri Development Finance Board Revenue | |||||||||||
Series A, 5.00%, 6/1/30, Continuously Callable @100 | 1,000 | 1,073 | |||||||||
Series A, 5.00%, 6/1/31, Continuously Callable @100 | 4,215 | 4,522 | |||||||||
| Missouri State Environmental Improvement & Energy Resources Authority Revenue, Series A-R, 2.90%, 9/1/33, Continuously Callable @102 | 25,000 | 27,025 | |||||||||
St. Louis County IDA Revenue | |||||||||||
5.00%, 9/1/23 | 595 | 622 | |||||||||
5.50%, 9/1/33, Continuously Callable @100 | 2,750 | 2,913 | |||||||||
Stoddard County IDA Revenue, Series B, 6.00%, 3/1/37, Continuously Callable @103 | 1,935 | 2,090 | |||||||||
62,782 | |||||||||||
Montana (0.2%): | |||||||||||
City of Forsyth Revenue, 3.90%, 3/1/31, Callable 3/1/23 @ 100 | 8,500 | 8,923 | |||||||||
See notes to financial statements.
22
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Nebraska (0.3%): | |||||||||||
Central Plains Energy Project Revenue, Series A, 5.00%, 9/1/36 | $ | 3,550 | $ | 4,883 | |||||||
Douglas County Hospital Authority No. 3 Revenue | |||||||||||
5.00%, 11/1/28, Continuously Callable @100 | 1,250 | 1,467 | |||||||||
5.00%, 11/1/30, Continuously Callable @100 | 1,600 | 1,874 | |||||||||
| Nebraska Educational Health Cultural & Social Services Finance Authority Revenue | |||||||||||
4.00%, 1/1/35, Continuously Callable @102 | 795 | 883 | |||||||||
4.00%, 1/1/36, Continuously Callable @102 | 1,240 | 1,374 | |||||||||
4.00%, 1/1/37, Continuously Callable @102 | 1,000 | 1,104 | |||||||||
4.00%, 1/1/38, Continuously Callable @102 | 1,295 | 1,430 | |||||||||
4.00%, 1/1/39, Continuously Callable @102 | 1,800 | 1,984 | |||||||||
| Public Power Generation Agency Revenue, 5.00%, 1/1/37, Continuously Callable @100 | 2,400 | 2,835 | |||||||||
17,834 | |||||||||||
Nevada (1.6%): | |||||||||||
City of Carson City Revenue | |||||||||||
5.00%, 9/1/29, Continuously Callable @100 | 620 | 760 | |||||||||
5.00%, 9/1/31, Continuously Callable @100 | 1,000 | 1,225 | |||||||||
5.00%, 9/1/33, Continuously Callable @100 | 1,000 | 1,219 | |||||||||
5.00%, 9/1/37, Continuously Callable @100 | 1,950 | 2,350 | |||||||||
City of North Las Vegas, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
4.00%, 6/1/35, Continuously Callable @100 | 1,870 | 2,164 | |||||||||
4.00%, 6/1/37, Continuously Callable @100 | 7,345 | 8,458 | |||||||||
4.00%, 6/1/38, Continuously Callable @100 | 6,135 | 7,056 | |||||||||
City of Sparks Revenue | |||||||||||
Series A, 2.50%, 6/15/24 (f) | 700 | 710 | |||||||||
Series A, 2.75%, 6/15/28 (f) | 1,500 | 1,556 | |||||||||
County of Clark Department of Aviation Revenue | |||||||||||
5.00%, 7/1/26 | 3,660 | 4,400 | |||||||||
5.00%, 7/1/27 | 2,220 | 2,739 | |||||||||
Series A-2, 5.00%, 7/1/32, Continuously Callable @100 | 20,470 | 22,933 | |||||||||
Series A-2, 5.00%, 7/1/33, Continuously Callable @100 | 10,845 | 12,141 | |||||||||
Las Vegas Convention & Visitors Authority Revenue | |||||||||||
Series C, 4.00%, 7/1/33, Continuously Callable @100 | 2,000 | 2,251 | |||||||||
Series C, 4.00%, 7/1/34, Continuously Callable @100 | 4,560 | 5,107 | |||||||||
Series C, 4.00%, 7/1/35, Continuously Callable @100 | 5,075 | 5,660 | |||||||||
80,729 | |||||||||||
New Hampshire (0.3%): | |||||||||||
| New Hampshire Business Finance Authority Revenue, 4.00%, 1/1/41, Continuously Callable @103 | 2,250 | 2,464 | |||||||||
New Hampshire Health and Education Facilities Authority Act Revenue | |||||||||||
5.00%, 8/1/34, Continuously Callable @100 | 2,880 | 3,539 | |||||||||
5.00%, 8/1/35, Continuously Callable @100 | 2,700 | 3,307 | |||||||||
5.00%, 8/1/36, Continuously Callable @100 | 2,000 | 2,442 | |||||||||
5.00%, 8/1/37, Continuously Callable @100 | 1,500 | 1,829 | |||||||||
13,581 | |||||||||||
See notes to financial statements.
23
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
New Jersey (5.9%): | |||||||||||
| Casino Reinvestment Development Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 11/1/29, Continuously Callable @100 | $ | 1,000 | $ | 1,111 | |||||||
5.00%, 11/1/30, Continuously Callable @100 | 1,000 | 1,110 | |||||||||
City of Atlantic City, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series B, 5.00%, 3/1/32, Continuously Callable @100 | 1,660 | 2,002 | |||||||||
Series B, 5.00%, 3/1/37, Continuously Callable @100 | 1,250 | 1,480 | |||||||||
City of Atlantic City, GO (INS — Build America Mutual Assurance Co.) | |||||||||||
Series A, 5.00%, 3/1/32, Continuously Callable @100 | 630 | 760 | |||||||||
Series A, 5.00%, 3/1/37, Continuously Callable @100 | 750 | 895 | |||||||||
City of Bayonne, GO (INS — Build America Mutual Assurance Co.) | |||||||||||
5.00%, 7/1/34, Pre-refunded 7/1/26 @ 100 | 1,135 | 1,369 | |||||||||
5.00%, 7/1/35, Pre-refunded 7/1/26 @ 100 | 1,000 | 1,207 | |||||||||
| Essex County Improvement Authority Revenue, 4.00%, 6/15/38, Continuously Callable @100 | 550 | 635 | |||||||||
| New Brunswick Parking Authority Revenue (INS — Build America Mutual Assurance Co.) | |||||||||||
Series A, 5.00%, 9/1/35, Continuously Callable @100 | 1,455 | 1,744 | |||||||||
Series A, 5.00%, 9/1/36, Continuously Callable @100 | 2,000 | 2,395 | |||||||||
New Jersey Building Authority Revenue | |||||||||||
Series A, 4.00%, 6/15/30, Pre-refunded 6/15/26 @ 100 | 400 | 464 | |||||||||
Series A, 4.00%, 6/15/30, Continuously Callable @100 | 600 | 685 | |||||||||
New Jersey Economic Development Authority Revenue | |||||||||||
5.00%, 3/1/25, Continuously Callable @100 | 18,410 | 19,617 | |||||||||
5.00%, 6/15/26, Continuously Callable @100 | 2,500 | 2,573 | |||||||||
1.60% (MUNIPSA+155bps), 9/1/27, Callable 3/1/23 @ 100 (k) | 10,000 | 10,540 | |||||||||
1.65% (MUNIPSA+160bps), 3/1/28, Callable 3/1/23 @ 100 (k) | 10,000 | 10,177 | |||||||||
5.00%, 11/1/36, Continuously Callable @100 | 2,000 | 2,497 | |||||||||
4.00%, 11/1/38, Continuously Callable @100 | 1,500 | 1,719 | |||||||||
4.00%, 11/1/39, Continuously Callable @100 | 2,000 | 2,282 | |||||||||
Series A, 5.00%, 6/15/25 | 5,125 | 5,950 | |||||||||
Series A, 3.13%, 7/1/29, Continuously Callable @100 | 665 | 679 | |||||||||
Series A, 3.38%, 7/1/30, Continuously Callable @100 | 1,000 | 1,055 | |||||||||
Series B, 5.00%, 6/15/36, Continuously Callable @100 | 16,455 | 20,238 | |||||||||
Series B, 5.00%, 6/15/37, Continuously Callable @100 | 16,280 | 20,009 | |||||||||
Series WW, 5.25%, 6/15/33, Continuously Callable @100 | 9,000 | 10,439 | |||||||||
| New Jersey Economic Development Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 6/15/25, Continuously Callable @100 | 10,000 | 11,250 | |||||||||
New Jersey Educational Facilities Authority Revenue | |||||||||||
Series B, 5.50%, 9/1/28, Continuously Callable @100 | 5,740 | 7,009 | |||||||||
Series B, 5.50%, 9/1/29, Continuously Callable @100 | 4,000 | 4,879 | |||||||||
Series B, 5.50%, 9/1/30, Continuously Callable @100 | 3,000 | 3,655 | |||||||||
Series B, 5.50%, 9/1/31, Continuously Callable @100 | 4,590 | 5,585 | |||||||||
Series B, 5.50%, 9/1/32, Continuously Callable @100 | 8,075 | 9,814 | |||||||||
Series F, 4.00%, 7/1/33, Continuously Callable @100 | 150 | 170 | |||||||||
Series F, 4.00%, 7/1/33, Pre-refunded 7/1/26 @ 100 | 350 | 406 | |||||||||
Series F, 4.00%, 7/1/34, Continuously Callable @100 | 260 | 293 | |||||||||
Series F, 4.00%, 7/1/34, Pre-refunded 7/1/26 @ 100 | 490 | 568 | |||||||||
See notes to financial statements.
24
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series F, 4.00%, 7/1/35, Continuously Callable @100 | $ | 975 | $ | 1,096 | |||||||
Series F, 4.00%, 7/1/35, Pre-refunded 7/1/26 @ 100 | 275 | 319 | |||||||||
| New Jersey Educational Facilities Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 7/1/34, Continuously Callable @100 | 3,000 | 3,653 | |||||||||
Series A, 5.00%, 7/1/35, Continuously Callable @100 | 3,350 | 4,069 | |||||||||
Series A, 4.00%, 7/1/36, Continuously Callable @100 | 1,800 | 2,005 | |||||||||
New Jersey Health Care Facilities Financing Authority Revenue | |||||||||||
5.00%, 10/1/33, Continuously Callable @100 | 2,000 | 2,410 | |||||||||
5.00%, 10/1/34, Continuously Callable @100 | 2,000 | 2,401 | |||||||||
5.00%, 10/1/35, Continuously Callable @100 | 2,620 | 3,138 | |||||||||
| New Jersey Health Care Facilities Financing Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 7/1/27, Continuously Callable @100 | 2,000 | 2,278 | |||||||||
Series A, 5.00%, 7/1/30, Continuously Callable @100 | 1,500 | 1,695 | |||||||||
New Jersey Transportation Trust Fund Authority Revenue | |||||||||||
5.00%, 6/15/30, Continuously Callable @100 | 3,000 | 3,560 | |||||||||
5.00%, 6/15/31, Continuously Callable @100 | 3,000 | 3,556 | |||||||||
Series A, 12/15/25 (h) | 20,000 | 18,908 | |||||||||
Series A, 5.00%, 12/15/33, Continuously Callable @100 | 2,000 | 2,472 | |||||||||
Series A, 4.00%, 6/15/35, Continuously Callable @100 | 2,500 | 2,981 | |||||||||
Series A, 5.00%, 12/15/35, Continuously Callable @100 | 1,050 | 1,292 | |||||||||
Series A, 4.00%, 6/15/36, Continuously Callable @100 | 2,500 | 2,953 | |||||||||
Series AA, 5.25%, 6/15/33, Continuously Callable @100 | 2,000 | 2,320 | |||||||||
Series AA, 5.25%, 6/15/34, Continuously Callable @100 | 3,000 | 3,476 | |||||||||
Series BB, 5.00%, 6/15/31, Continuously Callable @100 | 2,500 | 3,120 | |||||||||
Series BB, 5.00%, 6/15/34, Continuously Callable @100 | 10,000 | 12,351 | |||||||||
| New Jersey Transportation Trust Fund Authority Revenue (INS — AMBAC Assurance Corp.), Series B, 5.25%, 12/15/22 | 5,000 | 5,293 | |||||||||
New Jersey Turnpike Authority Revenue | |||||||||||
Series A, 5.00%, 1/1/34, Continuously Callable @100 | 10,000 | 11,231 | |||||||||
Series A, 5.00%, 1/1/34, Continuously Callable @100 | 7,675 | 9,052 | |||||||||
Series A, 5.00%, 1/1/35, Continuously Callable @100 | 4,725 | 5,568 | |||||||||
Series A, 4.00%, 1/1/42, Continuously Callable @100 | 3,000 | 3,535 | |||||||||
Series B, 4.00%, 1/1/35, Continuously Callable @100 | 3,500 | 4,073 | |||||||||
Newark Housing Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
4.00%, 12/1/29, Continuously Callable @100 | 500 | 569 | |||||||||
4.00%, 12/1/30, Continuously Callable @100 | 750 | 848 | |||||||||
4.00%, 12/1/31, Continuously Callable @100 | 500 | 563 | |||||||||
South Jersey Transportation Authority Revenue | |||||||||||
Series A, 5.00%, 11/1/30, Continuously Callable @100 | 500 | 562 | |||||||||
Series A, 5.00%, 11/1/31, Continuously Callable @100 | 750 | 843 | |||||||||
Series A, 5.00%, 11/1/34, Continuously Callable @100 | 1,085 | 1,216 | |||||||||
Series A, 4.00%, 11/1/40, Continuously Callable @100 | 4,300 | 4,946 | |||||||||
State of New Jersey, GO, Series A, 4.00%, 6/1/32 | 3,000 | 3,730 | |||||||||
| Tobacco Settlement Financing Corp. Revenue, Series A, 5.00%, 6/1/36, Continuously Callable @100 | 5,000 | 6,087 | |||||||||
305,430 | |||||||||||
See notes to financial statements.
25
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
New Mexico (0.9%): | |||||||||||
City of Farmington Revenue | |||||||||||
1.88%, 4/1/33, (Put Date 10/1/21) (e) | $ | 12,000 | $ | 12,000 | |||||||
Series A, 0.11%, 6/1/40 (c) | 17,000 | 17,000 | |||||||||
Series B, 2.15%, 4/1/33, Continuously Callable @101 (g) | 10,000 | 9,848 | |||||||||
City of Santa Revenue | |||||||||||
2.25%, 5/15/24, Continuously Callable @100 | 600 | 600 | |||||||||
2.63%, 5/15/25, Continuously Callable @100 | 1,000 | 1,000 | |||||||||
5.00%, 5/15/34, Continuously Callable @103 | 625 | 705 | |||||||||
5.00%, 5/15/39, Continuously Callable @103 | 480 | 537 | |||||||||
| New Mexico Hospital Equipment Loan Council Revenue, 5.00%, 7/1/39, Continuously Callable @102 | 1,075 | 1,220 | |||||||||
Village of Los Ranchos de Albuquerque Revenue | |||||||||||
4.00%, 9/1/35, Continuously Callable @100 | 300 | 348 | |||||||||
4.00%, 9/1/40, Continuously Callable @100 | 1,200 | 1,371 | |||||||||
44,629 | |||||||||||
New York (5.9%): | |||||||||||
| Chautauqua Tobacco Asset Securitization Corp. Revenue, 5.00%, 6/1/34, Continuously Callable @100 | 3,700 | 3,876 | |||||||||
City of Long Beach, GO, Series A, 0.63%, 2/22/22, Continuously Callable @100 | 9,300 | 9,300 | |||||||||
City of New York, GO, Series 3, 0.13%, 4/1/42, Continuously Callable @100 (c) | 7,000 | 7,000 | |||||||||
City of Newburgh, GO, Series B, 5.00%, 6/15/23, Continuously Callable @100 | 575 | 594 | |||||||||
| City of Yonkers, GO (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 10/1/23, Continuously Callable @100 | 2,600 | 2,600 | |||||||||
County of Nassau, GO, Series A, 5.00%, 1/1/36, Continuously Callable @100 | 1,150 | 1,340 | |||||||||
| Erie County Industrial Development Agency Revenue, 5.00%, 5/1/28, Continuously Callable @100 | 2,000 | 2,148 | |||||||||
| Hudson Yards Infrastructure Corp. Revenue, Series A, 5.00%, 2/15/37, Continuously Callable @100 | 2,500 | 3,003 | |||||||||
Metropolitan Transportation Authority Revenue | |||||||||||
4.00%, 11/15/35, Continuously Callable @100 | 9,040 | 10,264 | |||||||||
Series 2, 0.83% (SOFR+80bps), 11/1/32, (Put Date 4/1/26) (e) (k) | 3,000 | 2,996 | |||||||||
Series A, 11/15/32 (h) | 10,000 | 8,152 | |||||||||
Series A-1, 5.00%, 2/1/23 | 4,000 | 4,244 | |||||||||
Series A-2, 5.00%, 11/15/45, (Put Date 5/15/30) (e) | 7,315 | 9,307 | |||||||||
Series B-1, 5.00%, 5/15/22 | 1,000 | 1,029 | |||||||||
Series C-1, 5.00%, 11/15/29, Continuously Callable @100 | 7,030 | 8,628 | |||||||||
Series C-1, 4.00%, 11/15/32, Continuously Callable @100 | 9,300 | 10,630 | |||||||||
Series C-1, 5.00%, 11/15/34, Continuously Callable @100 | 6,295 | 7,264 | |||||||||
Series C-1, 5.00%, 11/15/36, Continuously Callable @100 | 3,705 | 4,360 | |||||||||
Series D-1, 5.00%, 11/15/34, Continuously Callable @100 | 2,000 | 2,308 | |||||||||
Series F, 5.00%, 11/15/34, Continuously Callable @100 | 2,000 | 2,307 | |||||||||
Series F, 5.00%, 11/15/35, Continuously Callable @100 | 3,000 | 3,456 | |||||||||
| Metropolitan Transportation Authority Revenue (INS — Assured Guaranty Municipal Corp.), Series A-1, 4.00%, 11/15/41, Continuously Callable @100 | 9,820 | 11,438 | |||||||||
Monroe County Industrial Development Corp. Revenue | |||||||||||
4.00%, 12/1/38, Continuously Callable @100 | 1,200 | 1,397 | |||||||||
4.00%, 12/1/39, Continuously Callable @100 | 1,200 | 1,391 | |||||||||
See notes to financial statements.
26
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| New York City Transitional Finance Authority Future Tax Secured Revenue, 4.00%, 11/1/38, Continuously Callable @100 | $ | 1,250 | $ | 1,477 | |||||||
| New York City Trust for Cultural Resources Revenue, Series A, 4.00%, 12/1/34, Continuously Callable @100 | 2,000 | 2,393 | |||||||||
New York Liberty Development Corp. Revenue | |||||||||||
2.63%, 9/15/69, Continuously Callable @100 | 3,350 | 3,396 | |||||||||
2.80%, 9/15/69, Continuously Callable @100 | 20,500 | 20,931 | |||||||||
Series A, 2.10%, 11/15/32, Continuously Callable @100 | 6,730 | 6,711 | |||||||||
Series A, 2.20%, 11/15/33, Continuously Callable @100 | 9,000 | 8,973 | |||||||||
New York State Dormitory Authority Revenue | |||||||||||
5.00%, 12/1/35, Continuously Callable @100 (f) | 600 | 713 | |||||||||
Series A, 5.00%, 5/1/23 | 15 | 16 | |||||||||
Series A, 5.00%, 5/1/23 | 735 | 782 | |||||||||
Series A, 5.00%, 5/1/24, Continuously Callable @100 | 735 | 781 | |||||||||
Series A, 5.00%, 5/1/24, Pre-refunded 5/1/23 @ 100 | 15 | 16 | |||||||||
Series A, 5.00%, 5/1/25, Continuously Callable @100 | 1,175 | 1,249 | |||||||||
Series A, 5.00%, 5/1/25, Pre-refunded 5/1/23 @ 100 | 25 | 27 | |||||||||
Series A, 5.00%, 5/1/26, Pre-refunded 5/1/23 @ 100 | 20 | 22 | |||||||||
Series A, 5.00%, 5/1/26, Continuously Callable @100 | 980 | 1,042 | |||||||||
Series A, 4.00%, 9/1/36, Continuously Callable @100 | 500 | 571 | |||||||||
Series A, 4.00%, 9/1/37, Continuously Callable @100 | 350 | 398 | |||||||||
Series A, 4.00%, 9/1/38, Continuously Callable @100 | 1,250 | 1,421 | |||||||||
Series A, 4.00%, 9/1/40, Continuously Callable @100 | 750 | 850 | |||||||||
Series A, 4.00%, 3/15/41, Continuously Callable @100 | 20,000 | 23,467 | |||||||||
Series A, 4.00%, 3/15/43, Continuously Callable @100 | 20,000 | 23,341 | |||||||||
Series A-1, 4.00%, 7/1/40, Continuously Callable @100 | 4,535 | 5,106 | |||||||||
Series B, 5.00%, 2/15/32, Pre-refunded 2/15/25 @ 100 | 5 | 6 | |||||||||
Series B, 5.00%, 2/15/32, Continuously Callable @100 | 19,995 | 22,950 | |||||||||
| New York State Dormitory Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series A, 5.00%, 10/1/27, Continuously Callable @100 | 1,000 | 1,135 | |||||||||
Series A, 5.00%, 10/1/28, Continuously Callable @100 | 1,000 | 1,134 | |||||||||
Series A, 5.00%, 10/1/29, Continuously Callable @100 | 1,300 | 1,473 | |||||||||
| New York State Dormitory Authority Revenue Bonds, 6.00%, 7/1/40, Continuously Callable @100 (f) (i) | 3,600 | 3,633 | |||||||||
| New York State Housing Finance Agency Revenue (LIQ — Deutsche Bank A.G.), Series DBE-DBE-8073, 0.46%, 8/1/50, Continuously Callable @100 (c) (f) | 5,055 | 5,055 | |||||||||
| New York State Urban Development Corp. Revenue, Series E, 4.00%, 3/15/38, Continuously Callable @100 | 20,000 | 23,281 | |||||||||
| Niagara Falls City School District Certificate of Participation (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 6/15/23 | 1,670 | 1,798 | |||||||||
5.00%, 6/15/24 | 1,450 | 1,622 | |||||||||
5.00%, 6/15/25, Continuously Callable @100 | 1,670 | 1,867 | |||||||||
| Saratoga County Capital Resource Corp. Revenue, Series A, 5.00%, 12/1/28, Continuously Callable @100 | 790 | 868 | |||||||||
Town of Oyster Bay, GO | |||||||||||
4.00%, 2/15/24 | 5,415 | 5,871 | |||||||||
4.00%, 2/15/25 | 9,750 | 10,878 | |||||||||
4.00%, 2/15/26 | 3,000 | 3,427 | |||||||||
See notes to financial statements.
27
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Westchester County Local Development Corp. Revenue, 5.00%, 1/1/28, Continuously Callable @100 | $ | 1,350 | $ | 1,420 | |||||||
309,133 | |||||||||||
North Carolina (0.3%): | |||||||||||
| North Carolina Capital Facilities Finance Agency Revenue, Series A, 0.15%, 7/1/34, (Put Date 9/1/21) (e) | 2,000 | 2,000 | |||||||||
North Carolina Medical Care Commission Revenue | |||||||||||
5.00%, 10/1/25 | 1,500 | 1,617 | |||||||||
5.00%, 10/1/30, Continuously Callable @100 | 1,850 | 1,993 | |||||||||
5.00%, 10/1/40, Continuously Callable @103 | 1,050 | 1,205 | |||||||||
5.00%, 10/1/45, Continuously Callable @103 | 1,000 | 1,138 | |||||||||
Series A, 4.00%, 9/1/40, Continuously Callable @100 | 3,050 | 3,316 | |||||||||
Series A, 4.00%, 10/1/40, Continuously Callable @103 | 600 | 671 | |||||||||
Series A, 5.00%, 10/1/40, Continuously Callable @103 | 1,800 | 2,182 | |||||||||
Series A, 5.00%, 10/1/45, Continuously Callable @103 | 1,800 | 2,168 | |||||||||
Series A, 4.00%, 10/1/45, Continuously Callable @103 | 1,000 | 1,108 | |||||||||
17,398 | |||||||||||
North Dakota (0.5%): | |||||||||||
City of Grand Forks Revenue | |||||||||||
5.00%, 12/1/29, Continuously Callable @100 | 11,085 | 11,167 | |||||||||
4.00%, 12/1/36, Continuously Callable @100 | 1,100 | 1,283 | |||||||||
4.00%, 12/1/37, Continuously Callable @100 | 1,250 | 1,452 | |||||||||
4.00%, 12/1/38, Continuously Callable @100 | 1,100 | 1,278 | |||||||||
4.00%, 12/1/40, Continuously Callable @100 | 1,700 | 1,958 | |||||||||
4.00%, 12/1/41, Continuously Callable @100 | 1,750 | 2,008 | |||||||||
County of Ward Revenue, Series C, 5.00%, 6/1/43, Continuously Callable @100 | 4,500 | 5,336 | |||||||||
24,482 | |||||||||||
Ohio (2.7%): | |||||||||||
Akron Bath Copley Joint Township Hospital District Revenue | |||||||||||
4.00%, 11/15/36, Continuously Callable @100 | 1,000 | 1,160 | |||||||||
4.00%, 11/15/37, Continuously Callable @100 | 800 | 926 | |||||||||
4.00%, 11/15/38, Continuously Callable @100 | 500 | 578 | |||||||||
City of Centerville Revenue, 5.25%, 11/1/37, Continuously Callable @100 | 2,250 | 2,570 | |||||||||
City of Cleveland Airport System Revenue | |||||||||||
Series A, 5.00%, 1/1/30, Pre-refunded 1/1/22 @ 100 | 2,000 | 2,023 | |||||||||
Series A, 5.00%, 1/1/31, Pre-refunded 1/1/22 @ 100 | 1,000 | 1,012 | |||||||||
County of Allen Hospital Facilities Revenue | |||||||||||
4.00%, 12/1/40, Continuously Callable @100 | 7,500 | 8,789 | |||||||||
Series A, 4.00%, 8/1/36, Continuously Callable @100 | 5,000 | 5,755 | |||||||||
Series A, 4.00%, 8/1/37, Continuously Callable @100 | 10,800 | 12,415 | |||||||||
County of Cuyahoga Revenue | |||||||||||
4.00%, 2/15/29, Continuously Callable @100 | 7,430 | 8,663 | |||||||||
5.00%, 2/15/37, Continuously Callable @100 | 4,000 | 4,782 | |||||||||
County of Hamilton Revenue | |||||||||||
5.00%, 1/1/31, Continuously Callable @100 | 1,350 | 1,511 | |||||||||
5.00%, 1/1/36, Continuously Callable @100 | 1,400 | 1,557 | |||||||||
5.00%, 9/15/39, Continuously Callable @100 | 1,375 | 1,717 | |||||||||
5.00%, 9/15/40, Continuously Callable @100 | 1,100 | 1,370 | |||||||||
See notes to financial statements.
28
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| County of Hamilton Sales Tax Revenue (INS — AMBAC Assurance Corp.), Series B, 12/1/25 (h) | $ | 4,365 | $ | 4,222 | |||||||
County of Hardi Revenue, 5.25%, 5/1/40, Continuously Callable @103 | 2,000 | 2,157 | |||||||||
County of Montgomery Revenue | |||||||||||
3.00%, 11/15/36, Continuously Callable @100 | 7,000 | 7,493 | |||||||||
5.00%, 11/15/37, Continuously Callable @100 | 2,200 | 2,698 | |||||||||
County of Ross Revenue, 5.00%, 12/1/39, Continuously Callable @100 | 2,405 | 2,986 | |||||||||
Dayton City School District, GO | |||||||||||
5.00%, 11/1/28 | 2,805 | 3,585 | |||||||||
5.00%, 11/1/29 | 3,655 | 4,768 | |||||||||
5.00%, 11/1/30 | 3,160 | 4,206 | |||||||||
5.00%, 11/1/31 | 2,000 | 2,717 | |||||||||
Ohio Higher Educational Facility Commission Revenue | |||||||||||
5.00%, 5/1/31, Continuously Callable @100 | 1,000 | 1,146 | |||||||||
5.00%, 5/1/33, Continuously Callable @100 | 500 | 572 | |||||||||
| Ohio Turnpike & Infrastructure Commission Revenue, 5.25%, 2/15/29, Continuously Callable @100 | 2,000 | 2,133 | |||||||||
Ohio Water Development Authority Revenue, 12/1/33 (i) (l) | 26,000 | — | |||||||||
| Port of Greater Cincinnati Development Authority Revenue, Series A, 3.00%, 5/1/23, Continuously Callable @100 | 9,535 | 9,545 | |||||||||
Southeastern Ohio Port Authority Revenue | |||||||||||
5.50%, 12/1/29, Continuously Callable @100 | 750 | 823 | |||||||||
5.00%, 12/1/35, Continuously Callable @100 | 750 | 807 | |||||||||
State of Ohio Revenue | |||||||||||
5.00%, 1/15/34, Continuously Callable @100 | �� | 7,210 | 8,433 | ||||||||
5.00%, 1/15/35, Continuously Callable @100 | 6,000 | 7,011 | |||||||||
5.00%, 1/15/36, Continuously Callable @100 | 3,070 | 3,584 | |||||||||
4.00%, 11/15/36, Continuously Callable @100 | 1,260 | 1,455 | |||||||||
4.00%, 11/15/38, Continuously Callable @100 | 1,270 | 1,462 | |||||||||
4.00%, 11/15/40, Continuously Callable @100 | 655 | 750 | |||||||||
Series A, 4.00%, 1/15/38, Continuously Callable @100 | 1,000 | 1,150 | |||||||||
Series A, 4.00%, 1/15/40, Continuously Callable @100 | 1,800 | 2,052 | |||||||||
Village of Bluffton Revenue | |||||||||||
5.00%, 12/1/31, Continuously Callable @100 | 1,500 | 1,843 | |||||||||
4.00%, 12/1/32, Continuously Callable @100 | 1,500 | 1,724 | |||||||||
4.00%, 12/1/33, Continuously Callable @100 | 1,600 | 1,831 | |||||||||
4.00%, 12/1/34, Continuously Callable @100 | 1,795 | 2,047 | |||||||||
138,028 | |||||||||||
Oklahoma (0.4%): | |||||||||||
| Muskogee Industrial Trust Revenue, Series A, 0.13%, 6/1/27, Continuously Callable @100 (c) | 15,000 | 15,000 | |||||||||
| Oklahoma Development Finance Authority Revenue, Series B, 5.00%, 8/15/33, Continuously Callable @100 | 4,100 | 4,941 | |||||||||
Tulsa County Industrial Authority Revenue | |||||||||||
5.00%, 11/15/28, Continuously Callable @102 | 940 | 1,087 | |||||||||
5.00%, 11/15/30, Continuously Callable @102 | 1,780 | 2,057 | |||||||||
23,085 | |||||||||||
See notes to financial statements.
29
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Oregon (0.1%): | |||||||||||
Clackamas County Hospital Facility Authority Revenue | |||||||||||
5.00%, 11/15/32, Continuously Callable @102 | $ | 500 | $ | 558 | |||||||
5.00%, 11/15/37, Continuously Callable @102 | 500 | 554 | |||||||||
Oregon State Facilities Authority Revenue | |||||||||||
Series A, 5.00%, 10/1/35, Continuously Callable @100 | 275 | 345 | |||||||||
Series A, 5.00%, 10/1/40, Continuously Callable @100 | 1,750 | 2,165 | |||||||||
3,622 | |||||||||||
Pennsylvania (7.9%): | |||||||||||
Allegheny County Hospital Development Authority Revenue | |||||||||||
5.00%, 4/1/35, Continuously Callable @100 | 7,315 | 8,967 | |||||||||
5.00%, 4/1/36, Continuously Callable @100 | 8,000 | 9,778 | |||||||||
4.00%, 7/15/37, Continuously Callable @100 | 2,000 | 2,337 | |||||||||
4.00%, 7/15/38, Continuously Callable @100 | 1,500 | 1,744 | |||||||||
4.00%, 7/15/39, Continuously Callable @100 | 1,440 | 1,671 | |||||||||
| Allegheny County Sanitary Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
4.00%, 12/1/33, Continuously Callable @100 | 1,500 | 1,705 | |||||||||
4.00%, 12/1/34, Continuously Callable @100 | 1,475 | 1,671 | |||||||||
Berks County IDA Revenue | |||||||||||
4.00%, 11/1/33, Continuously Callable @100 | 1,300 | 1,371 | |||||||||
5.00%, 11/1/34, Continuously Callable @100 | 2,000 | 2,229 | |||||||||
5.00%, 11/1/35, Continuously Callable @100 | 3,000 | 3,339 | |||||||||
Bethlehem Authority Revenue, 5.00%, 11/15/30, Continuously Callable @100 | 3,000 | 3,153 | |||||||||
Bucks County IDA Revenue | |||||||||||
5.00%, 10/1/30, Continuously Callable @103 | 325 | 375 | |||||||||
5.00%, 10/1/31, Continuously Callable @103 | 450 | 518 | |||||||||
5.00%, 10/1/37, Continuously Callable @103 | 2,260 | 2,540 | |||||||||
| Butler County Hospital Authority Revenue, 5.00%, 7/1/35, Continuously Callable @100 | 1,885 | 2,157 | |||||||||
Chester County IDA Revenue | |||||||||||
5.00%, 10/1/34, Continuously Callable @100 | 1,000 | 1,111 | |||||||||
Series A, 5.13%, 10/15/37, Continuously Callable @100 | 2,750 | 3,106 | |||||||||
| City of Philadelphia Airport Revenue, Series A, 4.00%, 7/1/33, Continuously Callable @100 | 11,420 | 13,687 | |||||||||
City of Philadelphia, GO | |||||||||||
Series A, 4.00%, 5/1/40, Continuously Callable @100 | 3,500 | 4,130 | |||||||||
Series A, 4.00%, 5/1/41, Continuously Callable @100 | 4,000 | 4,713 | |||||||||
Series A, 4.00%, 5/1/42, Continuously Callable @100 | 2,250 | 2,651 | |||||||||
Commonwealth Financing Authority Revenue | |||||||||||
5.00%, 6/1/33, Continuously Callable @100 | 1,250 | 1,523 | |||||||||
5.00%, 6/1/34, Continuously Callable @100 | 2,000 | 2,432 | |||||||||
Series A, 5.00%, 6/1/34, Continuously Callable @100 | 5,000 | 5,775 | |||||||||
Commonwealth of Pennsylvania Certificate of Participation | |||||||||||
Series A, 5.00%, 7/1/34, Continuously Callable @100 | 1,350 | 1,656 | |||||||||
Series A, 5.00%, 7/1/35, Continuously Callable @100 | 750 | 917 | |||||||||
Series A, 5.00%, 7/1/37, Continuously Callable @100 | 800 | 975 | |||||||||
County of Beaver, GO | |||||||||||
4.00%, 4/15/28 | 2,195 | 2,556 | |||||||||
4.00%, 4/15/28 | 695 | 832 | |||||||||
See notes to financial statements.
30
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
4.00%, 4/15/29, Continuously Callable @100 | $ | 1,900 | $ | 2,207 | |||||||
4.00%, 4/15/29, Pre-refunded 4/15/28 @ 100 | 600 | 723 | |||||||||
4.00%, 4/15/30, Continuously Callable @100 | 4,490 | 5,174 | |||||||||
4.00%, 4/15/30, Pre-refunded 4/15/28 @ 100 | 510 | 615 | |||||||||
County of Lehigh Revenue | |||||||||||
4.00%, 7/1/37, Continuously Callable @100 | 2,000 | 2,321 | |||||||||
4.00%, 7/1/38, Continuously Callable @100 | 2,000 | 2,317 | |||||||||
4.00%, 7/1/39, Continuously Callable @100 | 2,000 | 2,316 | |||||||||
| County of Luzerne, GO (INS — Assured Guaranty Municipal Corp.), Series A, 5.00%, 11/15/29, Continuously Callable @100 | 5,000 | 5,856 | |||||||||
Cumberland County Municipal Authority Revenue | |||||||||||
4.00%, 11/1/36, Continuously Callable @100 | 1,250 | 1,465 | |||||||||
4.00%, 11/1/37, Continuously Callable @100 | 2,130 | 2,486 | |||||||||
Dauphin County General Authority Revenue | |||||||||||
4.00%, 6/1/30, Continuously Callable @100 | 2,000 | 2,290 | |||||||||
4.00%, 6/1/31, Continuously Callable @100 | 1,000 | 1,113 | |||||||||
Delaware County Authority Revenue | |||||||||||
5.00%, 10/1/30 | 1,200 | 1,436 | |||||||||
5.00%, 10/1/35, Continuously Callable @100 | 2,220 | 2,669 | |||||||||
5.00%, 10/1/39, Continuously Callable @100 | 2,250 | 2,691 | |||||||||
| Delaware River Joint Toll Bridge Commission Revenue, 5.00%, 7/1/34, Continuously Callable @100 | 3,000 | 3,668 | |||||||||
| Delaware River Port Authority Revenue, 5.00%, 1/1/25, Continuously Callable @100 | 2,720 | 2,880 | |||||||||
Latrobe IDA Revenue | |||||||||||
4.00%, 3/1/40, Continuously Callable @100 | 250 | 272 | |||||||||
4.00%, 3/1/41, Continuously Callable @100 | 250 | 271 | |||||||||
4.00%, 3/1/46, Continuously Callable @100 | 750 | 811 | |||||||||
Montgomery County Higher Education & Health Authority Revenue | |||||||||||
5.00%, 9/1/34, Continuously Callable @100 | 1,750 | 2,165 | |||||||||
5.00%, 9/1/35, Continuously Callable @100 | 1,850 | 2,284 | |||||||||
4.00%, 9/1/36, Continuously Callable @100 | 1,100 | 1,287 | |||||||||
4.00%, 9/1/37, Continuously Callable @100 | 1,000 | 1,168 | |||||||||
5.00%, 9/1/37, Continuously Callable @100 | 1,750 | 2,153 | |||||||||
4.00%, 9/1/38, Continuously Callable @100 | 900 | 1,048 | |||||||||
4.00%, 9/1/39, Continuously Callable @100 | 1,000 | 1,160 | |||||||||
Montgomery County IDA Revenue | |||||||||||
5.00%, 11/15/23, Pre-refunded 5/15/22 @ 100 | 1,200 | 1,236 | |||||||||
5.00%, 11/15/24, Pre-refunded 5/15/22 @ 100 | 2,750 | 2,832 | |||||||||
Montour School District, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series B, 5.00%, 4/1/33, Continuously Callable @100 | 1,000 | 1,159 | |||||||||
Series B, 5.00%, 4/1/34, Continuously Callable @100 | 1,500 | 1,736 | |||||||||
Series B, 5.00%, 4/1/35, Continuously Callable @100 | 1,500 | 1,735 | |||||||||
| Northampton County General Purpose Authority Revenue, 1.10% (LIBOR01M+104bps), 8/15/48, (Put Date 8/15/24) (e) (k) | 4,645 | 4,627 | |||||||||
| Northeastern Pennsylvania Hospital & Education Authority Revenue, Series A, 5.00%, 3/1/37, Continuously Callable @100 | 1,525 | 1,691 | |||||||||
Pennsylvania Economic Development Financing Authority Revenue | |||||||||||
4.00%, 7/1/33, Continuously Callable @103 | 1,750 | 1,982 | |||||||||
3.00%, 4/1/39, Continuously Callable @100 | 30,000 | 32,185 | |||||||||
4.00%, 7/1/41, Continuously Callable @103 | 1,050 | 1,174 | |||||||||
See notes to financial statements.
31
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Pennsylvania Higher Educational Facilities Authority Revenue | |||||||||||
5.00%, 7/1/32, Pre-refunded 7/1/22 @ 100 | $ | 1,625 | $ | 1,683 | |||||||
Series A, 5.25%, 7/15/25, Continuously Callable @100 | 1,730 | 1,870 | |||||||||
Series A, 5.25%, 7/15/26, Pre-refunded 7/15/23 @ 100 | 2,020 | 2,201 | |||||||||
Series A, 5.25%, 7/15/27, Pre-refunded 7/15/23 @ 100 | 2,125 | 2,316 | |||||||||
Series A, 5.25%, 7/15/28, Pre-refunded 7/15/23 @ 100 | 2,245 | 2,447 | |||||||||
Series A, 5.00%, 7/15/30, Pre-refunded 7/15/23 @ 100 | 2,415 | 2,621 | |||||||||
Series A, 5.25%, 7/15/33, Pre-refunded 7/15/23 @ 100 | 1,965 | 2,142 | |||||||||
Pennsylvania Turnpike Commission Revenue | |||||||||||
5.00%, 6/1/35, Continuously Callable @100 | 10,655 | 12,435 | |||||||||
5.00%, 6/1/36, Continuously Callable @100 | 8,255 | 9,624 | |||||||||
Series A-1, 5.00%, 12/1/32, Continuously Callable @100 | 1,500 | 1,702 | |||||||||
Series A-1, 5.00%, 12/1/33, Continuously Callable @100 | 4,345 | 4,927 | |||||||||
Series A-1, 5.00%, 12/1/34, Continuously Callable @100 | 3,000 | 3,504 | |||||||||
Series A-1, 5.00%, 12/1/35, Continuously Callable @100 | 3,320 | 3,874 | |||||||||
Series A-1, 5.00%, 12/1/36, Continuously Callable @100 | 3,690 | 4,302 | |||||||||
Series B, 5.00%, 12/1/32, Continuously Callable @100 | 3,500 | 4,096 | |||||||||
Series B, 5.00%, 12/1/33, Continuously Callable @100 | 7,145 | 8,354 | |||||||||
Series B, 4.00%, 6/1/34, Continuously Callable @100 | 20,000 | 22,575 | |||||||||
Series B, 5.00%, 12/1/34, Continuously Callable @100 | 2,000 | 2,349 | |||||||||
Series B, 5.00%, 12/1/34, Continuously Callable @100 | 6,250 | 7,300 | |||||||||
Series B, 5.00%, 12/1/35, Continuously Callable @100 | 5,700 | 6,652 | |||||||||
Series B, 5.00%, 12/1/35, Continuously Callable @100 | 2,000 | 2,347 | |||||||||
Series B, 4.00%, 12/1/40, Continuously Callable @100 | 2,000 | 2,366 | |||||||||
Series B, 4.00%, 12/1/40, Continuously Callable @100 | 1,500 | 1,766 | |||||||||
Series B, 4.00%, 12/1/41, Continuously Callable @100 | 1,750 | 2,054 | |||||||||
Series B, 4.00%, 12/1/41, Continuously Callable @100 | 1,500 | 1,771 | |||||||||
Series B, 4.00%, 12/1/42, Continuously Callable @100 | 1,500 | 1,758 | |||||||||
Philadelphia IDA Revenue | |||||||||||
5.00%, 5/1/35, Continuously Callable @100 | 750 | 919 | |||||||||
5.00%, 5/1/36, Continuously Callable @100 | 1,500 | 1,838 | |||||||||
5.00%, 5/1/38, Continuously Callable @100 | 1,000 | 1,223 | |||||||||
5.00%, 6/15/40, Continuously Callable @100 (f) | 900 | 1,050 | |||||||||
| Pittsburgh Water & Sewer Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series B, 4.00%, 9/1/34, Continuously Callable @100 | 1,750 | 2,084 | |||||||||
Series B, 4.00%, 9/1/35, Continuously Callable @100 | 300 | 357 | |||||||||
Reading School District, GO (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 3/1/36, Continuously Callable @100 | 2,000 | 2,390 | |||||||||
5.00%, 3/1/37, Continuously Callable @100 | 1,500 | 1,792 | |||||||||
School District of Philadelphia, GO | |||||||||||
Series A, 5.00%, 9/1/34, Continuously Callable @100 | 1,000 | 1,233 | |||||||||
Series A, 5.00%, 9/1/35, Continuously Callable @100 | 1,000 | 1,230 | |||||||||
Series A, 5.00%, 9/1/36, Continuously Callable @100 | 1,000 | 1,228 | |||||||||
Series A, 5.00%, 9/1/37, Continuously Callable @100 | 1,000 | 1,226 | |||||||||
Series A, 4.00%, 9/1/38, Continuously Callable @100 | 1,700 | 1,972 | |||||||||
Series A, 4.00%, 9/1/39, Continuously Callable @100 | 1,600 | 1,847 | |||||||||
Series F, 5.00%, 9/1/31, Continuously Callable @100 | 9,895 | 11,825 | |||||||||
Series F, 5.00%, 9/1/32, Continuously Callable @100 | 5,000 | 5,969 | |||||||||
See notes to financial statements.
32
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series F, 5.00%, 9/1/33, Continuously Callable @100 | $ | 4,000 | $ | 4,770 | |||||||
Series F, 5.00%, 9/1/34, Continuously Callable @100 | 5,100 | 6,075 | |||||||||
School District of the City of Erie, GO (INS — Assured Guaranty Municipal Corp.), | |||||||||||
Series A, 4.00%, 4/1/33, Continuously Callable @100 | 1,150 | 1,303 | |||||||||
Scranton School District, GO (INS — Build America Mutual Assurance Co.) | |||||||||||
Series E, 5.00%, 12/1/32, Continuously Callable @100 | 1,000 | 1,216 | |||||||||
Series E, 5.00%, 12/1/33, Continuously Callable @100 | 1,600 | 1,938 | |||||||||
Series E, 5.00%, 12/1/35, Continuously Callable @100 | 750 | 905 | |||||||||
State Public School Building Authority Revenue | |||||||||||
5.00%, 4/1/23, Pre-refunded 4/1/22 @ 100 | 1,250 | 1,280 | |||||||||
5.00%, 6/1/29, Continuously Callable @100 | 10,000 | 11,981 | |||||||||
| State Public School Building Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
5.00%, 6/1/31, Continuously Callable @100 | 6,100 | 7,309 | |||||||||
4.00%, 12/1/31, Continuously Callable @100 | 13,085 | 14,898 | |||||||||
4.00%, 12/1/31, Pre-refunded 12/1/26 @ 100 | 2,295 | 2,691 | |||||||||
| The Berks County Municipal Authority Revenue, Series B, 5.00%, 2/1/40, (Put Date 2/1/30) (e) | 3,300 | 3,825 | |||||||||
| Westmoreland County IDA Revenue, Series A, 4.00%, 7/1/37, Continuously Callable @100 | 1,400 | 1,616 | |||||||||
411,848 | |||||||||||
Puerto Rico (0.1%): | |||||||||||
| Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Authority Revenue, 5.00%, 4/1/27, Continuously Callable @100 | 2,600 | 2,642 | |||||||||
Rhode Island (0.3%): | |||||||||||
| Rhode Island Health & Educational Building Corp. Revenue, 6.00%, 9/1/33, Pre-refunded 9/1/23 @ 100 | 2,000 | 2,220 | |||||||||
Rhode Island Turnpike & Bridge Authority Revenue | |||||||||||
Series A, 5.00%, 10/1/33, Continuously Callable @100 | 1,350 | 1,595 | |||||||||
Series A, 5.00%, 10/1/35, Continuously Callable @100 | 4,345 | 5,123 | |||||||||
Tobacco Settlement Financing Corp. Revenue | |||||||||||
Series A, 5.00%, 6/1/28, Continuously Callable @100 | 2,000 | 2,270 | |||||||||
Series A, 5.00%, 6/1/29, Continuously Callable @100 | 2,000 | 2,268 | |||||||||
Series A, 5.00%, 6/1/30, Continuously Callable @100 | 2,500 | 2,832 | |||||||||
16,308 | |||||||||||
South Carolina (1.0%): | |||||||||||
Lexington County Health Services District, Inc. Revenue | |||||||||||
4.00%, 11/1/31, Continuously Callable @100 | 1,000 | 1,156 | |||||||||
4.00%, 11/1/32, Continuously Callable @100 | 1,000 | 1,151 | |||||||||
| Patriots Energy Group Financing Agency Revenue, Series B, 0.92% (LIBOR01M+86bps), 10/1/48, (Put Date 2/1/24) (e) (k) | 20,000 | 20,345 | |||||||||
Piedmont Municipal Power Agency Revenue (INS — Assured Guaranty Corp.) | |||||||||||
Series C, 5.00%, 1/1/28, Continuously Callable @100 | 7,200 | 7,224 | |||||||||
Series D, 5.00%, 1/1/28, Continuously Callable @100 | 2,700 | 2,709 | |||||||||
South Carolina Public Service Authority Revenue | |||||||||||
Series A, 5.00%, 12/1/34, Continuously Callable @100 | 9,835 | 11,780 | |||||||||
Series A, 5.00%, 12/1/35, Continuously Callable @100 | 7,000 | 8,351 | |||||||||
52,716 | |||||||||||
See notes to financial statements.
33
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Tennessee (0.8%): | |||||||||||
| Chattanooga Health Educational & Housing Facility Board Revenue, Series C, 0.09%, 5/1/39, Continuously Callable @100 (c) (d) | $ | 14,500 | $ | 14,500 | |||||||
Greeneville Health & Educational Facilities Board Revenue | |||||||||||
5.00%, 7/1/35, Continuously Callable @100 | 2,710 | 3,315 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 3,000 | 3,660 | |||||||||
5.00%, 7/1/37, Continuously Callable @100 | 3,500 | 4,264 | |||||||||
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue, 5.00%, 7/1/35, Continuously Callable @100 | 5,000 | 5,977 | |||||||||
New Memphis Arena Public Building Authority Revenue | |||||||||||
1.97%, 4/1/32, Continuously Callable @98 | 875 | 712 | |||||||||
2.07%, 4/1/33, Continuously Callable @96 | 875 | 691 | |||||||||
2.15%, 4/1/34, Continuously Callable @94 | 875 | 669 | |||||||||
2.21%, 4/1/35, Continuously Callable @92 | 875 | 650 | |||||||||
| Tennessee Energy Acquisition Corp. Revenue, Series A, 5.00%, 5/1/52, (Put Date 11/1/31) (e) | 6,500 | 8,481 | |||||||||
42,919 | |||||||||||
Texas (11.9%): | |||||||||||
| Austin Affordable PFC, Inc. Revenue (LIQ — Deutsche Bank A.G.), Series 2021-XF1102, 0.30%, 7/1/61, Callable 7/1/33 @ 104 (c) (f) | 2,000 | 2,000 | |||||||||
| Austin Convention Enterprises, Inc. Revenue, 5.00%, 1/1/34, Continuously Callable @100 | 1,105 | 1,241 | |||||||||
Board of Managers Joint Guadalupe County-City of Seguin Hospital Revenue | |||||||||||
5.00%, 12/1/25 | 2,740 | 3,058 | |||||||||
5.00%, 12/1/27, Continuously Callable @100 | 2,990 | 3,315 | |||||||||
5.00%, 12/1/28, Continuously Callable @100 | 1,640 | 1,813 | |||||||||
5.00%, 12/1/29, Continuously Callable @100 | 1,600 | 1,764 | |||||||||
5.00%, 12/1/30, Continuously Callable @100 | 1,700 | 1,870 | |||||||||
5.25%, 12/1/35, Continuously Callable @100 | 5,150 | 5,662 | |||||||||
Central Texas Regional Mobility Authority Revenue | |||||||||||
1/1/22 (h) | 885 | 884 | |||||||||
5.00%, 1/1/22 | 500 | 506 | |||||||||
5.00%, 1/1/23 | 500 | 528 | |||||||||
1/1/24 (h) | 7,000 | 6,923 | |||||||||
1/1/26 (h) | 2,535 | 2,433 | |||||||||
5.00%, 1/1/33, Pre-refunded 1/1/23 @ 100 | 3,500 | 3,707 | |||||||||
Series A, 5.00%, 1/1/34, Continuously Callable @100 | 1,250 | 1,441 | |||||||||
Series A, 5.00%, 1/1/35, Continuously Callable @100 | 1,100 | 1,267 | |||||||||
Central Texas Turnpike System Revenue | |||||||||||
Series C, 5.00%, 8/15/33, Continuously Callable @100 | 10,000 | 11,231 | |||||||||
Series C, 5.00%, 8/15/34, Continuously Callable @100 | 8,500 | 9,541 | |||||||||
City of Arlington Special Tax (INS — Build America Mutual Assurance Co.) | |||||||||||
Series C, 5.00%, 2/15/34, Continuously Callable @100 | 1,500 | 1,802 | |||||||||
Series C, 5.00%, 2/15/35, Continuously Callable @100 | 1,500 | 1,798 | |||||||||
Series C, 5.00%, 2/15/36, Continuously Callable @100 | 3,100 | 3,710 | |||||||||
Series C, 5.00%, 2/15/37, Continuously Callable @100 | 3,305 | 3,949 | |||||||||
Series C, 5.00%, 2/15/38, Continuously Callable @100 | 4,380 | 5,228 | |||||||||
City of Corpus Christi Utility System Revenue | |||||||||||
4.00%, 7/15/32, Continuously Callable @100 | 1,800 | 2,066 | |||||||||
4.00%, 7/15/33, Continuously Callable @100 | 1,100 | 1,257 | |||||||||
See notes to financial statements.
34
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
4.00%, 7/15/34, Continuously Callable @100 | $ | 1,050 | $ | 1,194 | |||||||
4.00%, 7/15/35, Continuously Callable @100 | 1,000 | 1,133 | |||||||||
| City of Dallas Housing Finance Corp. Revenue (LOC — Deutsche Bank A.G.), Series 2021-XF1109, 0.30%, 7/1/61, Callable 8/1/33 @ 103 (c) (f) | 4,000 | 4,000 | |||||||||
City of Houston Hotel Occupancy Tax & Special Revenue | |||||||||||
5.00%, 9/1/29, Continuously Callable @100 | 2,300 | 2,586 | |||||||||
5.00%, 9/1/30, Continuously Callable @100 | 1,000 | 1,124 | |||||||||
5.00%, 9/1/32, Continuously Callable @100 | 5,615 | 6,297 | |||||||||
5.00%, 9/1/33, Continuously Callable @100 | 5,345 | 5,988 | |||||||||
5.00%, 9/1/34, Continuously Callable @100 | 2,150 | 2,407 | |||||||||
5.00%, 9/1/35, Continuously Callable @100 | 1,575 | 1,761 | |||||||||
City of Laredo Waterworks & Sewer System Revenue | |||||||||||
4.00%, 3/1/32, Continuously Callable @100 | 740 | 841 | |||||||||
4.00%, 3/1/33, Continuously Callable @100 | 1,000 | 1,131 | |||||||||
4.00%, 3/1/34, Continuously Callable @100 | 1,000 | 1,125 | |||||||||
4.00%, 3/1/36, Continuously Callable @100 | 1,500 | 1,671 | |||||||||
City of Lubbock Electric Light & Power System Revenue | |||||||||||
4.00%, 4/15/38, Continuously Callable @100 | 2,875 | 3,350 | |||||||||
4.00%, 4/15/39, Continuously Callable @100 | 2,250 | 2,622 | |||||||||
4.00%, 4/15/41, Continuously Callable @100 | 3,410 | 3,947 | |||||||||
| Clifton Higher Education Finance Corp. Revenue (NBGA — Texas Permanent School Fund) | |||||||||||
4.00%, 8/15/33, Continuously Callable @100 | 2,130 | 2,536 | |||||||||
4.00%, 8/15/34, Continuously Callable @100 | 2,275 | 2,700 | |||||||||
4.00%, 8/15/35, Continuously Callable @100 | 2,375 | 2,808 | |||||||||
4.00%, 8/15/36, Continuously Callable @100 | 3,710 | 4,371 | |||||||||
4.00%, 8/15/37, Continuously Callable @100 | 3,860 | 4,533 | |||||||||
4.00%, 8/15/38, Continuously Callable @100 | 4,015 | 4,703 | |||||||||
4.00%, 8/15/39, Continuously Callable @100 | 4,305 | 5,026 | |||||||||
Series A, 4.00%, 8/15/32, Continuously Callable @100 | 1,300 | 1,492 | |||||||||
Dallas/Fort Worth International Airport Revenue | |||||||||||
Series D, 5.25%, 11/1/28, Continuously Callable @100 | 2,000 | 2,201 | |||||||||
Series D, 5.25%, 11/1/29, Continuously Callable @100 | 7,500 | 8,248 | |||||||||
Decatur Hospital Authority Revenue | |||||||||||
Series A, 5.25%, 9/1/29, Continuously Callable @100 | 1,000 | 1,131 | |||||||||
Series A, 5.00%, 9/1/34, Continuously Callable @100 | 1,000 | 1,119 | |||||||||
Harris County Cultural Education Facilities Finance Corp. Revenue | |||||||||||
5.00%, 12/1/27, Pre-refunded 12/1/22 @ 100 | 4,710 | 4,970 | |||||||||
5.00%, 6/1/28, Continuously Callable @100 | 1,400 | 1,488 | |||||||||
4.00%, 10/1/41, Continuously Callable @100 | 1,300 | 1,549 | |||||||||
4.00%, 10/1/42, Continuously Callable @100 | 3,000 | 3,564 | |||||||||
0.62% (MUNIPSA+57bps), 12/1/49, (Put Date 12/4/24) (e) (k) | 3,330 | 3,337 | |||||||||
| Harris County Municipal Utility District No. 165, GO (INS — Build America Mutual Assurance Co.) | |||||||||||
5.00%, 3/1/30, Continuously Callable @100 | 750 | 860 | |||||||||
5.00%, 3/1/31, Continuously Callable @100 | 2,030 | 2,326 | |||||||||
5.00%, 3/1/32, Continuously Callable @100 | 2,500 | 2,862 | |||||||||
Houston Higher Education Finance Corp. Revenue | |||||||||||
Series A, 5.25%, 9/1/31, Pre-refunded 9/1/22 @ 100 | 3,850 | 4,027 | |||||||||
Series A, 5.25%, 9/1/32, Pre-refunded 9/1/22 @ 100 | 4,075 | 4,262 | |||||||||
See notes to financial statements.
35
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Karnes County Hospital District Revenue | |||||||||||
5.00%, 2/1/29, Continuously Callable @100 | $ | 4,000 | $ | 4,425 | |||||||
5.00%, 2/1/34, Continuously Callable @100 | 4,000 | 4,411 | |||||||||
| Main Street Market Square Redevelopment Authority Tax Allocation (INS — Build America Mutual Assurance Co.) | |||||||||||
5.00%, 9/1/29, Continuously Callable @100 | 1,215 | 1,411 | |||||||||
5.00%, 9/1/30, Continuously Callable @100 | 1,380 | 1,601 | |||||||||
5.00%, 9/1/31, Continuously Callable @100 | 2,000 | 2,317 | |||||||||
5.00%, 9/1/32, Continuously Callable @100 | 1,500 | 1,736 | |||||||||
5.00%, 9/1/33, Continuously Callable @100 | 2,680 | 3,098 | |||||||||
Matagorda County Navigation District No. 1 Revenue | |||||||||||
2.60%, 11/1/29 | 14,010 | 14,979 | |||||||||
4.00%, 6/1/30, Continuously Callable @100 | 5,405 | 5,689 | |||||||||
Mesquite Health Facilities Development Corp. Revenue | |||||||||||
2/15/26 (m) | 3,100 | 2,458 | |||||||||
2/15/35, Continuously Callable @100 (m) | 1,075 | 852 | |||||||||
New Hope Cultural Education Facilities Finance Corp. Revenue | |||||||||||
5.00%, 11/1/31, Continuously Callable @102 | 1,000 | 1,137 | |||||||||
4.00%, 11/1/36, Continuously Callable @102 | 1,475 | 1,593 | |||||||||
Series A, 2.25%, 7/1/30 (m) | 7,500 | 6,411 | |||||||||
Series A, 2.25%, 7/1/35 (m) | 9,000 | 7,694 | |||||||||
Newark Higher Education Finance Corp. Revenue | |||||||||||
4.00%, 4/1/32, Continuously Callable @100 | 1,635 | 1,839 | |||||||||
4.00%, 4/1/33, Continuously Callable @100 | 2,000 | 2,237 | |||||||||
4.00%, 4/1/34, Continuously Callable @100 | 4,470 | 4,974 | |||||||||
4.00%, 4/1/35, Continuously Callable @100 | 1,650 | 1,829 | |||||||||
4.00%, 4/1/36, Continuously Callable @100 | 2,150 | 2,375 | |||||||||
North East Texas Regional Mobility Authority Revenue | |||||||||||
5.00%, 1/1/36, Continuously Callable @100 | 7,000 | 8,116 | |||||||||
Series B, 5.00%, 1/1/36, Continuously Callable @100 | 5,485 | 6,291 | |||||||||
North Texas Tollway Authority Revenue | |||||||||||
Series A, 5.00%, 1/1/32, Continuously Callable @100 | 8,000 | 9,123 | |||||||||
Series A, 5.00%, 1/1/34, Continuously Callable @100 | 1,515 | 1,776 | |||||||||
Series A, 4.00%, 1/1/39, Continuously Callable @100 | 14,620 | 17,036 | |||||||||
Series B, 5.00%, 1/1/31, Continuously Callable @100 | 1,500 | 1,652 | |||||||||
Series B, 5.00%, 1/1/34, Continuously Callable @100 | 7,500 | 8,526 | |||||||||
Series B, 4.00%, 1/1/38, Continuously Callable @100 | 2,000 | 2,377 | |||||||||
Series B, 4.00%, 1/1/39, Continuously Callable @100 | 2,500 | 2,960 | |||||||||
Series B, 4.00%, 1/1/40, Continuously Callable @100 | 1,625 | 1,916 | |||||||||
| North Texas Tollway Authority Revenue (INS — Assured Guaranty Corp.), 1/1/29 (h) | 20,000 | 18,142 | |||||||||
| North Texas Tollway Authority Revenue (INS — Assured Guaranty Municipal Corp.) | |||||||||||
Series B, 4.00%, 1/1/35, Continuously Callable @100 | 2,000 | 2,274 | |||||||||
Series B, 4.00%, 1/1/36, Continuously Callable @100 | 1,695 | 1,921 | |||||||||
Permanent University Fund — University of Texas System Revenue | |||||||||||
5.00%, 7/1/32, Continuously Callable @100 | 2,230 | 2,587 | |||||||||
5.00%, 7/1/33, Continuously Callable @100 | 3,250 | 3,768 | |||||||||
5.00%, 7/1/34, Continuously Callable @100 | 2,500 | 2,896 | |||||||||
See notes to financial statements.
36
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Port of Port Arthur Navigation District Revenue | |||||||||||
0.11%, 11/1/40, Continuously Callable @100 (c) (d) | $ | 65,000 | $ | 65,000 | |||||||
0.09%, 11/1/40, Continuously Callable @100 (c) | 9,800 | 9,800 | |||||||||
Series A, 0.12%, 4/1/40, Continuously Callable @100 (c) | 28,570 | 28,570 | |||||||||
Port of Port Arthur Navigation District Revenue Bonds | |||||||||||
Series B, 0.12%, 4/1/40, Continuously Callable @100 (c) | 16,850 | 16,850 | |||||||||
Series C, 0.13%, 4/1/40, Continuously Callable @100 (c) | 21,710 | 21,710 | |||||||||
San Antonio Education Facilities Corp. Revenue | |||||||||||
4.00%, 4/1/38, Continuously Callable @100 | 850 | 982 | |||||||||
4.00%, 4/1/39, Continuously Callable @100 | 1,000 | 1,152 | |||||||||
4.00%, 4/1/40, Continuously Callable @100 | 1,000 | 1,147 | |||||||||
4.00%, 4/1/41, Continuously Callable @100 | 895 | 1,023 | |||||||||
| San Antonio Housing Trust Finance Corp. Revenue (NBGA — Federal Home Loan Mortgage Corp.), 3.50%, 4/1/43, (Put Date 10/1/28) (e) | 14,935 | 15,780 | |||||||||
Tarrant County Cultural Education Facilities Finance Corp. Revenue | |||||||||||
5.00%, 11/15/30, Continuously Callable @100 | 2,145 | 2,570 | |||||||||
5.00%, 11/15/31, Continuously Callable @100 | 2,250 | 2,685 | |||||||||
5.00%, 11/15/32, Continuously Callable @100 | 2,365 | 2,805 | |||||||||
5.00%, 11/15/37, Continuously Callable @100 | 2,175 | 2,537 | |||||||||
Series B, 5.00%, 7/1/37, Continuously Callable @100 | 18,225 | 22,443 | |||||||||
Series B, 5.00%, 7/1/38, Continuously Callable @100 | 19,115 | 23,505 | |||||||||
Texas Municipal Gas Acquisition & Supply Corp. III Revenue, 5.00%, 12/15/32 | 9,835 | 13,259 | |||||||||
Texas Private Activity Bond Surface Transportation Corp. Revenue | |||||||||||
4.00%, 6/30/38, Continuously Callable @100 | 3,300 | 3,853 | |||||||||
4.00%, 12/31/38, Continuously Callable @100 | 3,850 | 4,494 | |||||||||
4.00%, 6/30/39, Continuously Callable @100 | 2,150 | 2,505 | |||||||||
Texas Transportation Commission State Highway Fund Revenue, 5.00%, 10/1/26 | 7,235 | 8,797 | |||||||||
| Trophy Club Public Improvement District No. 1 Special Assessment (INS — Assured Guaranty Municipal Corp.), 5.00%, 6/1/33, Continuously Callable @100 | 6,960 | 7,936 | |||||||||
Waco Educational Finance Corp. Revenue | |||||||||||
4.00%, 3/1/39, Continuously Callable @100 | 1,250 | 1,482 | |||||||||
4.00%, 3/1/40, Continuously Callable @100 | 1,000 | 1,181 | |||||||||
4.00%, 3/1/41, Continuously Callable @100 | 1,000 | 1,178 | |||||||||
617,955 | |||||||||||
Utah (0.1%): | |||||||||||
Jordanelle Special Service District Special Assessment | |||||||||||
Series A, 12.00%, 8/1/30, Continuously Callable @100 (f) | 3,273 | 3,285 | |||||||||
Series B, 12.00%, 8/1/30, Continuously Callable @100 (f) | 1,792 | 1,798 | |||||||||
Military Installation Development Authority Revenue | |||||||||||
Series A-1, 4.00%, 6/1/36, Continuously Callable @103 | 1,045 | 1,082 | |||||||||
Series A-1, 4.00%, 6/1/41, Continuously Callable @103 | 1,000 | 1,026 | |||||||||
7,191 | |||||||||||
Vermont (0.4%): | |||||||||||
| Vermont Economic Development Authority Revenue, 4.00%, 5/1/37, Continuously Callable @103 (g) | 4,190 | 4,590 | |||||||||
| Vermont Educational & Health Buildings Financing Agency Revenue, Series A, 5.00%, 12/1/36, Continuously Callable @100 | 2,500 | 2,945 | |||||||||
Winooski School District, GO, 1.25%, 10/15/21 | 12,500 | 12,504 | |||||||||
20,039 | |||||||||||
See notes to financial statements.
37
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Virgin Islands (0.1%): | |||||||||||
| Virgin Islands Public Finance Authority Revenue, 5.00%, 9/1/30, Continuously Callable @100 (f) | $ | 6,500 | $ | 7,264 | |||||||
Virginia (0.8%): | |||||||||||
Chesapeake Hospital Authority Revenue | |||||||||||
4.00%, 7/1/36, Continuously Callable @100 | 1,175 | 1,368 | |||||||||
4.00%, 7/1/37, Continuously Callable @100 | 1,205 | 1,396 | |||||||||
| Fairfax County Economic Development Authority Revenue, Series A, 5.00%, 10/1/36, Continuously Callable @102 | 2,150 | 2,411 | |||||||||
Stafford County Economic Development Authority Revenue | |||||||||||
5.00%, 6/15/33, Continuously Callable @100 | 750 | 888 | |||||||||
5.00%, 6/15/34, Continuously Callable @100 | 2,620 | 3,101 | |||||||||
5.00%, 6/15/35, Continuously Callable @100 | 1,930 | 2,282 | |||||||||
Virginia College Building Authority Revenue | |||||||||||
4.00%, 2/1/34, Continuously Callable @100 | 10,000 | 11,491 | |||||||||
4.00%, 2/1/36, Continuously Callable @100 | 3,000 | 3,424 | |||||||||
Virginia Small Business Financing Authority Revenue | |||||||||||
Series A, 4.00%, 1/1/37, Continuously Callable @103 | 2,750 | 3,161 | |||||||||
Series A, 4.00%, 1/1/38, Continuously Callable @103 | 3,000 | 3,442 | |||||||||
Series A, 4.00%, 1/1/39, Continuously Callable @103 | 3,500 | 4,002 | |||||||||
Series A, 4.00%, 1/1/40, Continuously Callable @103 | 4,000 | 4,573 | |||||||||
41,539 | |||||||||||
Washington (0.4%): | |||||||||||
Washington Health Care Facilities Authority Revenue | |||||||||||
5.00%, 8/15/33, Continuously Callable @100 | 3,090 | 3,701 | |||||||||
5.00%, 8/15/34, Continuously Callable @100 | 3,470 | 4,137 | |||||||||
5.00%, 7/1/35, Continuously Callable @100 | 2,355 | 2,877 | |||||||||
5.00%, 7/1/36, Continuously Callable @100 | 2,250 | 2,739 | |||||||||
4.00%, 7/1/37, Continuously Callable @100 | 3,125 | 3,547 | |||||||||
| Washington State Housing Finance Commission Revenue, Series A-1, 3.50%, 12/20/35 | 2,687 | 3,090 | |||||||||
20,091 | |||||||||||
West Virginia (0.3%): | |||||||||||
West Virginia Hospital Finance Authority Revenue | |||||||||||
5.00%, 6/1/33, Continuously Callable @100 | 1,850 | 2,257 | |||||||||
5.00%, 1/1/34, Continuously Callable @100 | 2,360 | 2,882 | |||||||||
5.00%, 6/1/34, Continuously Callable @100 | 2,970 | 3,620 | |||||||||
5.00%, 1/1/35, Continuously Callable @100 | 2,920 | 3,557 | |||||||||
5.00%, 6/1/35, Continuously Callable @100 | 2,405 | 2,924 | |||||||||
5.00%, 9/1/38, Continuously Callable @100 | 1,000 | 1,224 | |||||||||
5.00%, 9/1/39, Continuously Callable @100 | 1,000 | 1,222 | |||||||||
17,686 | |||||||||||
Wisconsin (1.1%): | |||||||||||
Public Finance Authority Revenue | |||||||||||
3.00%, 4/1/25 (f) | 330 | 340 | |||||||||
4.00%, 6/15/29, Continuously Callable @100 (f) | 295 | 321 | |||||||||
4.00%, 9/1/29, Continuously Callable @103 (f) | 1,250 | 1,376 | |||||||||
5.25%, 5/15/37, Continuously Callable @102 (f) | 1,000 | 1,101 | |||||||||
See notes to financial statements.
38
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
5.00%, 6/15/39, Continuously Callable @100 (f) | $ | 410 | $ | 450 | |||||||
5.00%, 9/1/39, Continuously Callable @103 (f) | 2,230 | 2,495 | |||||||||
5.00%, 1/1/40, Continuously Callable @100 | 3,500 | 4,178 | |||||||||
5.00%, 4/1/40, Continuously Callable @100 (f) | 1,175 | 1,416 | |||||||||
5.00%, 1/1/45, Continuously Callable @100 | 3,275 | 3,856 | |||||||||
Series A, 5.25%, 10/1/38, Continuously Callable @100 | 3,250 | 3,826 | |||||||||
Series A, 4.00%, 7/1/41, Continuously Callable @100 | 770 | 864 | |||||||||
Series A, 5.00%, 11/15/41, Continuously Callable @103 | 4,480 | 5,436 | |||||||||
Series A, 4.00%, 7/1/46, Continuously Callable @100 | 1,100 | 1,250 | |||||||||
Series D, 4.05%, 11/1/30, Continuously Callable @100 | 1,500 | 1,640 | |||||||||
Wisconsin Health & Educational Facilities Authority Revenue | |||||||||||
5.00%, 8/15/34, Continuously Callable @100 | 1,000 | 1,117 | |||||||||
4.00%, 2/15/35, Continuously Callable @100 | 500 | 589 | |||||||||
4.00%, 11/15/36, Continuously Callable @100 | 9,830 | 11,040 | |||||||||
4.00%, 2/15/37, Continuously Callable @100 | 1,000 | 1,169 | |||||||||
4.00%, 3/15/40, Continuously Callable @100 | 750 | 820 | |||||||||
0.15%, 2/15/53, Callable 11/1/21 @ 100 (c) | 6,500 | 6,500 | |||||||||
Series A, 5.13%, 4/15/31, Pre-refunded 4/15/23 @ 100 | 5,000 | 5,370 | |||||||||
Series C, 5.00%, 8/15/26, Pre-refunded 8/15/22 @ 100 | 1,500 | 1,563 | |||||||||
Series C, 5.00%, 8/15/29, Pre-refunded 8/15/22 @ 100 | 1,935 | 2,016 | |||||||||
58,733 | |||||||||||
Total Municipal Bonds (Cost $4,831,910) | 5,182,578 | ||||||||||
Total Investments (Cost $4,832,109) — 99.6% | 5,182,898 | ||||||||||
Other assets in excess of liabilities — 0.4% | 22,335 | ||||||||||
NET ASSETS — 100.00% | $ | 5,205,233 | |||||||||
(a) Amount represents less than 0.05% of net assets.
(b) Non-income producing security.
(c) 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.
(d) All or a portion of this security has been segregated as collateral for securities purchased on a delayed-delivery and/or when-issued basis.
(e) Put Bond.
(f) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $157,772 (thousands) and amounted to 3.0% of net assets.
(g) Security or portion of security purchased on a delayed-delivery and/or when-issued basis.
(h) Zero-coupon bond.
(i) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of September 30, 2021, illiquid securities were 0.2% of net assets.
See notes to financial statements.
39
| USAA Mutual Funds Trust USAA Tax Exempt Intermediate-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
(j) Stepped-coupon security converts to coupon form on 11/1/25 with a rate of 4.00%.
(k) Variable or Floating-Rate Security. Rate disclosed is as of September 30, 2021.
(l) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.0% of net assets as of September 30, 2021. This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements).
(m) Currently the issuer is in default with respect to interest and/or principal payments.
(n) Stepped-coupon security converts to coupon form on 11/1/25 with a rate of 4.35%.
AMBAC — American Municipal Bond Assurance Corporation
bps — Basis points
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
IDA — Industrial Development Authority
LIBOR — London InterBank Offered Rate
LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of September 30, 2021, based on the last reset date of the security
LOC — Letter of Credit
MUNIPSA — Municipal Swap Index
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.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
LOC Principal and interest payments are guaranteed by a bank letter of credit or other bank credit agreement.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
40
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Tax Exempt Intermediate-Term Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $4,832,109) | $ | 5,182,898 | |||||
Receivables: | |||||||
Interest and dividends | 48,700 | ||||||
Capital shares issued | 1,597 | ||||||
Investments sold | 11,400 | ||||||
From Adviser | 155 | ||||||
Prepaid expenses | 211 | ||||||
Total Assets | 5,244,961 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | 955 | ||||||
To custodian | 1,258 | ||||||
Investments purchased | 30,707 | ||||||
Capital shares redeemed | 4,297 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 1,401 | ||||||
Administration fees | 600 | ||||||
Custodian fees | 34 | ||||||
Transfer agent fees | 273 | ||||||
Compliance fees | 3 | ||||||
| 12b-1 fees | 3 | ||||||
Other accrued expenses | 197 | ||||||
Total Liabilities | 39,728 | ||||||
Net Assets: | |||||||
Capital | 4,946,547 | ||||||
Total accumulated earnings/(loss) | 258,686 | ||||||
Net Assets | $ | 5,205,233 | |||||
Net Assets | |||||||
Fund Shares | $ | 4,084,930 | |||||
Institutional Shares | 1,090,773 | ||||||
Class A | 29,511 | ||||||
Class Z | 19 | ||||||
Total | $ | 5,205,233 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 294,496 | ||||||
Institutional Shares | 78,659 | ||||||
Class A | 2,128 | ||||||
Class Z | 1 | ||||||
Total | 375,284 | ||||||
Net asset value, offering and redemption price per share: (a) | |||||||
Fund Shares | $ | 13.87 | |||||
Institutional Shares | $ | 13.87 | |||||
Class A | $ | 13.87 | |||||
Class Z | $ | 13.87 | |||||
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 | $ | 14.19 | |||||
(a) Per share amount may not recalculate due to rounding of net assets and/or shares outstanding.
See notes to financial statements.
41
USAA Mutual Funds Trust | Statement of Operations For the Six Months Ended September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Tax Exempt Intermediate-Term Fund | |||||||
Investment Income: | |||||||
Interest | $ | 74,874 | |||||
Total Income | 74,874 | ||||||
Expenses: | |||||||
Investment advisory fees | 8,481 | ||||||
Administration fees — Fund Shares | 3,074 | ||||||
Administration fees — Institutional Shares | 536 | ||||||
Administration fees — Class A | 20 | ||||||
Sub-Administration fees | 14 | ||||||
| 12b-1 fees — Class A | 34 | ||||||
Custodian fees | 104 | ||||||
Transfer agent fees — Fund Shares | 537 | ||||||
Transfer agent fees — Institutional Shares | 536 | ||||||
Transfer agent fees — Class A | 13 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 17 | ||||||
Legal and audit fees | 30 | ||||||
State registration and filing fees | 231 | ||||||
Interfund lending fees | — | (a) | |||||
Other expenses | 292 | ||||||
Total Expenses | 13,943 | ||||||
Expenses waived/reimbursed by Adviser | (482 | ) | |||||
Net Expenses | 13,461 | ||||||
Net Investment Income (Loss) | 61,413 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 1,858 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | 4,733 | ||||||
Net realized/unrealized gains (losses) on investments | 6,591 | ||||||
Change in net assets resulting from operations | $ | 68,004 | |||||
(a) Rounds to less than $1 thousand.
See notes to financial statements.
42
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
| USAA Tax Exempt Intermediate-Term Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 61,413 | $ | 132,115 | |||||||
Net realized gains (losses) from investments | 1,858 | (6,469 | ) | ||||||||
| Net change in unrealized appreciation/depreciation on investments | 4,733 | 191,773 | |||||||||
Change in net assets resulting from operations | 68,004 | 317,419 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (48,055 | ) | (125,814 | ) | |||||||
Institutional Shares (a) | (13,076 | ) | (5,737 | ) | |||||||
Class A | (283 | ) | (567 | ) | |||||||
Class Z (b) | — | (c) | — | (c) | |||||||
Change in net assets resulting from distributions to shareholders | (61,414 | ) | (132,118 | ) | |||||||
Change in net assets resulting from capital transactions | 118,309 | 81,708 | |||||||||
Change in net assets | 124,899 | 267,009 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 5,080,334 | 4,813,325 | |||||||||
End of period | $ | 5,205,233 | $ | 5,080,334 | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
(b) Class Z commenced operations on March 4, 2021.
(c) Rounds to less than $1 thousand.
(continues on next page)
See notes to financial statements.
43
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands) (continued)
| USAA Tax Exempt Intermediate-Term Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 255,278 | $ | 696,196 | |||||||
Distributions reinvested | 42,293 | 111,273 | |||||||||
Cost of shares redeemed | (278,090 | ) | (1,722,488 | ) | |||||||
Total Fund Shares | $ | 19,481 | $ | (915,019 | ) | ||||||
Institutional Shares (a) | |||||||||||
Proceeds from shares issued | $ | 151,395 | $ | 1,027,555 | |||||||
Distributions reinvested | 12,620 | 5,305 | |||||||||
Cost of shares redeemed | (70,776 | ) | (33,953 | ) | |||||||
Total Institutional Shares | $ | 93,239 | $ | 998,907 | |||||||
Class A | |||||||||||
Proceeds from shares issued | $ | 6,659 | $ | 26,772 | |||||||
Distributions reinvested | 251 | 498 | |||||||||
Cost of shares redeemed | (1,321 | ) | (29,469 | ) | |||||||
Total Class A | $ | 5,589 | $ | (2,199 | ) | ||||||
Class Z (b) | |||||||||||
Proceeds from shares issued | $ | — | $ | 19 | |||||||
Distributions reinvested | — | (c) | — | (c) | |||||||
Cost of shares redeemed | — | — | |||||||||
Total Class Z | $ | — | (c) | $ | 19 | ||||||
Change in net assets resulting from capital transactions | $ | 118,309 | $ | 81,708 | |||||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 18,269 | 50,950 | |||||||||
Reinvested | 3,030 | 8,143 | |||||||||
Redeemed | (19,917 | ) | (125,198 | ) | |||||||
Total Fund Shares | 1,382 | (66,105 | ) | ||||||||
Institutional Shares (a) | |||||||||||
Issued | 10,850 | 74,035 | |||||||||
Reinvested | 904 | 383 | |||||||||
Redeemed | (5,068 | ) | (2,445 | ) | |||||||
Total Institutional Shares | 6,686 | 71,973 | |||||||||
Class A | |||||||||||
Issued | 477 | 1,969 | |||||||||
Reinvested | 18 | 36 | |||||||||
Redeemed | (95 | ) | (2,173 | ) | |||||||
Total Class A | 400 | (168 | ) | ||||||||
Class Z (b) | |||||||||||
Issued | — | 1 | |||||||||
Reinvested | — | (d) | — | (d) | |||||||
Redeemed | — | — | |||||||||
Total Class Z | — | (d) | 1 | ||||||||
Change in Shares | 8,468 | 5,701 | |||||||||
(a) Institutional Shares commenced operations on June 29, 2020.
(b) Class Z commenced operations on March 4, 2021.
(c) Rounds to less than $1 thousand.
(d) Rounds to less than 1 thousand shares.
See notes to financial statements.
44
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45
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 | Total Distributions | ||||||||||||||||||||||
USAA Tax Exempt Intermediate-Term Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 13.85 | 0.16 | (e) | 0.02 | 0.18 | (0.16 | ) | (0.16 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 13.33 | 0.37 | (e) | 0.52 | 0.89 | (0.37 | ) | (0.37 | ) | |||||||||||||||||
2020 | $ | 13.37 | 0.38 | (e) | (0.03 | ) | 0.35 | (0.39 | ) | (0.39 | ) | ||||||||||||||||
2019 | $ | 13.12 | 0.41 | 0.24 | 0.65 | (0.40 | ) | (0.40 | ) | ||||||||||||||||||
2018 | $ | 13.08 | 0.41 | 0.04 | 0.45 | (0.41 | ) | (0.41 | ) | ||||||||||||||||||
2017 | $ | 13.61 | 0.42 | (0.53 | ) | (0.11 | ) | (0.42 | ) | (0.42 | ) | ||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 13.85 | 0.17 | (e) | 0.02 | 0.19 | (0.17 | ) | (0.17 | ) | |||||||||||||||||
| June 29, 2020(g) through March 31, 2021 | $ | 13.57 | 0.27 | (e) | 0.29 | 0.56 | (0.28 | ) | (0.28 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 13.85 | 0.15 | (e) | 0.02 | 0.17 | (0.15 | ) | (0.15 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 13.33 | 0.33 | (e) | 0.52 | 0.85 | (0.33 | ) | (0.33 | ) | |||||||||||||||||
2020 | $ | 13.36 | 0.35 | (e) | (0.03 | ) | 0.32 | (0.35 | ) | (0.35 | ) | ||||||||||||||||
2019 | $ | 13.12 | 0.38 | 0.23 | 0.61 | (0.37 | ) | (0.37 | ) | ||||||||||||||||||
2018 | $ | 13.07 | 0.38 | 0.05 | 0.43 | (0.38 | ) | (0.38 | ) | ||||||||||||||||||
2017 | $ | 13.61 | 0.38 | (0.54 | ) | (0.16 | ) | (0.38 | ) | (0.38 | ) | ||||||||||||||||
Class Z | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | $ | 13.85 | 0.20 | (e) | 0.02 | 0.22 | (0.20 | ) | (0.20 | ) | |||||||||||||||||
| March 4, 2021(g) through March 31, 2021 | $ | 13.81 | 0.03 | (e) | 0.04 | 0.07 | (0.03 | ) | (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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment for all classes, except for Class Z, are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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.
See notes to financial statements.
46
USAA Mutual Funds Trust | Financial Highlights — continued | ||||||
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets | Supplemental Data | ||||||||||||||||||||||||||||||||||
| Redemption Fees Added to Beneficial Interests | Net Asset Value, End of Period | Total Return (Excludes Sales Charge)*(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 Tax Exempt Intermediate-Term Fund | |||||||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 13.87 | 1.33 | % | 0.54 | % | 2.34 | % | 0.54 | % | $ | 4,084,930 | 3 | % | ||||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | $ | 13.85 | 6.72 | % | 0.50 | % | 2.69 | % | 0.50 | % | $ | 4,059,780 | 23 | % | |||||||||||||||||||||
2020 | — | $ | 13.33 | 2.56 | % | 0.49 | % | 2.82 | % | 0.49 | % | $ | 4,788,060 | 26 | % | ||||||||||||||||||||
2019 | — | $ | 13.37 | 5.06 | % | 0.52 | % | 3.07 | % | 0.52 | % | $ | 4,754,320 | 8 | % | ||||||||||||||||||||
2018 | — | $ | 13.12 | 3.47 | % | 0.51 | % | 3.09 | % | 0.51 | % | $ | 4,605,543 | 11 | % | ||||||||||||||||||||
2017 | — | (f) | $ | 13.08 | (0.84 | )% | 0.52 | % | 3.13 | % | 0.52 | % | $ | 4,280,892 | 16 | % | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 13.87 | 1.38 | % | 0.44 | % | 2.44 | % | 0.53 | % | $ | 1,090,773 | 3 | % | ||||||||||||||||||||
| June 29, 2020(g) through March 31, 2021 | $ | 13.85 | 4.15 | % | 0.44 | % | 2.61 | % | 0.51 | % | $ | 996,601 | 23 | % | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 13.87 | 1.20 | % | 0.78 | % | 2.09 | % | 0.88 | % | $ | 29,511 | 3 | % | ||||||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||||||
2021 | $ | 13.85 | 6.46 | % | 0.75 | % | 2.43 | % | 0.86 | % | $ | 23,934 | 23 | % | |||||||||||||||||||||
2020 | — | $ | 13.33 | 2.37 | % | 0.75 | % | 2.57 | % | 0.87 | % | $ | 25,265 | 26 | % | ||||||||||||||||||||
2019 | — | $ | 13.36 | 4.75 | % | 0.75 | % | 2.85 | % | 0.84 | % | $ | 22,888 | 8 | % | ||||||||||||||||||||
2018 | — | $ | 13.12 | 3.28 | % | 0.77 | %(h) | 2.83 | % | 0.85 | % | $ | 26,397 | 11 | % | ||||||||||||||||||||
2017 | — | (f) | $ | 13.07 | (1.19 | )% | 0.80 | % | 2.84 | % | 0.83 | % | $ | 37,351 | 16 | % | |||||||||||||||||||
Class Z | |||||||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (unaudited) | — | $ | 13.87 | 1.62 | % | 0.00 | % | 2.88 | % | 23.72 | % | $ | 19 | 3 | % | ||||||||||||||||||||
| March 4, 2021(g) through March 31, 2021 | $ | 13.85 | 0.51 | % | 0.00 | % | 3.02 | % | 92.34 | % | $ | 19 | 23 | % | |||||||||||||||||||||
(b) Annualized for periods less than one year.
(c) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
(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.
(f) Amount is less than $0.005 per share.
(g) Commencement of operations.
(h) Effective August 1, 2017, USAA Asset Management Company ("AMCO") (previous Investment Adviser) voluntarily agreed to limit the annual expenses of Class A to 0.75% of Class A average daily net assets. Prior to this date, the voluntary expense limit was 0.80%.
See notes to financial statements.
47
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Tax Exempt Intermediate-Term Fund (the "Fund"). The Fund offers four classes of shares: Fund Shares, Institutional Shares, Class A, and Class Z. The Fund is classified as diversified under the 1940 Act. Class Z is only available to participants in certain eligible separately managed accounts (also referred to as wrap fee programs) and other advisory clients of the Fund's Adviser or its affiliates that are subject to a separate contractual fee for investment management services.
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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the Trust's Board of Trustees' (the "Board") oversight, the
48
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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.
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 net asset value ("NAV") to be more reliable than it otherwise would be.
A summary of the valuations as of September 30, 2021, 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 | $ | 320 | $ | — | $ | — | $ | 320 | |||||||||||
Municipal Bonds | — | 5,182,578 | — | 5,182,578 | |||||||||||||||
Total | $ | 320 | $ | 5,182,578 | $ | — | $ | 5,182,898 | |||||||||||
As of September 30, 2021, there were no significant Level 3 holdings in the fair value hierarchy. For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
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 on the Schedule of Portfolio Investments.
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
49
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Below-Investment-Grade Securities:
The Fund may invest in below-investment-grade securities (i.e. lower-quality, "junk" debt), which are subject to various risks. Lower-quality debt is considered to be speculative because it is less certain that the issuer will be able to pay interest or repay the principal than in the case of investment grade debt. These securities can involve a substantially greater risk of default than higher-rated securities, and their values can decline significantly over short periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about their issuers, the market and the economy in general, than higher-quality debt securities. The market for these securities can be less liquid, especially during periods of recession or general market decline.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 March 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.
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 an 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, printing fees, and 12b-1 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 September 30, 2021, 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) | |||||||||
| $ | 79,200 | $ | 18,700 | $ | — | ||||||
50
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 292, 223 | $ | 163,558 | ||||
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned 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 annualized rate of 0.28% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper Intermediate Municipal Debt Funds Index. The Lipper Intermediate Municipal Debt Funds Index tracks the total return performance of the largest funds within the Lipper Intermediate Municipal Debt Funds category.
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) | ||||||
| +/- 20 to 50 | +/- 4 | ||||||
| +/- 51 to 100 | +/- 5 | ||||||
| +/- 101 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
51
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper Intermediate Municipal Debt Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $1,183, $15, $5, and less than $1 for Fund Shares, Institutional Shares, Class A, and Class Z, in thousands, respectively. Performance adjustments were 0.06%, less than 0.01%, 0.04%, and less than 0.01% for Fund Shares, Institutional Shares, Class A, and Class Z, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.15%, 0.10%, and 0.15%, which is based on the Fund's average daily net assets of the Fund Shares, Institutional Shares, and Class A, respectively. VCM does not receive any fees from Class Z for these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares based on an annual charge of $25.50 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 and Class A are paid monthly based on a fee accrued daily at an annualized rate of 0.10% and 0.10%, respectively, of average daily net assets, plus out-of-pocket expenses. VCTA does not receive any fees from Class Z for these services. Amounts
52
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
incurred and paid to VCTA for the six months ended September 30, 2021, 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.
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 Class A. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activity primarily intended to result in the sale of Class A. Amounts incurred and paid to the Distributor for the period ended September 30, 2021, are reflected on the Statement of Operations as 12b-1 fees.
In addition, the Distributor is entitled to receive commissions on sales of Class A. For the six months ended September 30, 2021, the Distributor received approximately $2 thousand from commissions earned on sales of Class A.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023, except for Class Z, which remains in effect indefinitely, unless the Board approves otherwise.
Under the terms of the expense limitation agreement for Fund Shares, Institutional Shares, and Class A, 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. Acquired fund fees and expenses, 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.
Under the terms of the expense limitation agreement for Class Z, the Adviser has agreed to waive fees or reimburse aggregate expenses to the extent that ordinary operating expenses incurred by Class Z in any fiscal year exceed the expense limit for such class of the Fund. Such excess amounts will be the liability of the Adviser. Including but not limited to investment management fees of the Investment Adviser inclusive of the impact of any performance fee adjustment as provided in the Advisory Agreement but excluding acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 0.48%, 0.44%, 0.75%, and 0.0% for Fund Shares, Institutional Shares, Class A, and Class Z, respectively.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund Shares, Institutional Shares, and Class A have agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty six (36) months) after 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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses
53
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2023 | Expires 2024 | Expires 2025 | Total | ||||||||||||
| $ | 16 | $ | 172 | $ | 482 | $ | 670 | ||||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Debt Securities 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.
Other factors that may affect the value of debt securities include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.
Credit Risk — 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.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors. Bond prices generally are linked to the prevailing market interest rates. In general, when interest rates rise, bond prices fall; conversely, when interest rates fall, bond prices rise. The price volatility of a bond also depends on its duration. Generally, the longer the duration of a bond, the greater is its sensitivity to interest rates. To compensate investors for this higher interest rate risk, bonds with longer durations generally offer higher yields than bonds with shorter durations. The ability of an issuer of a debt security to repay principal prior to a security's maturity can increase the security's sensitivity to interest rate changes.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
54
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
LIBOR Discontinuation Risk — 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. 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. For U.S. dollar LIBOR, however, the relevant date may be deferred to June 30, 2023, for the most common tenors (overnight and one, three, six, and 12 months). As to those tenors, the LIBOR administrator has published a consultation regarding its intention to cease publication of U.S. dollar LIBOR as of June 30, 2023, (instead of December 31, 2021, as previously expected), apparently based on continued rate submissions from banks. It is expected that there will 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. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, or any particular currency and tenor, will continue to be published until any particular date, and it appears highly likely that LIBOR will be discontinued or modified after December 31, 2021, or June 30, 2023, depending on the currency and tenor. 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:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
55
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The average borrowing or lending for the days outstanding and average interest rate for the Fund that utilized this Facility during the six months ended September 30, 2021, were as follows (amounts in thousands):
| Borrower or Lender | Amount Outstanding at September 30, 2021 | Average Borrowing* | Days Borrowing Outstanding | Average Interest Rate* | Maximum Borrowing During the Period | ||||||||||||||||||
| Borrower | $ | — | $ | 5,799 | 1 | 0.57 | % | $ | 5,799 | ||||||||||||||
* For the six months ended September 30, 2021, based on the number of days borrowings were outstanding.
7. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 32,966 | $ | 61,529 | $ | 94,495 | ||||||
56
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,013.30 | $ | 1,022.36 | $ | 2.73 | $ | 2.74 | 0.54 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,013.80 | 1,022.86 | 2.22 | 2.23 | 0.44 | % | ||||||||||||||||||||
Class A | 1,000.00 | 1,012.00 | 1,021.16 | 3.93 | 3.95 | 0.78 | % | ||||||||||||||||||||
Class Z | 1,000.00 | 1,016.20 | 1,025.07 | — | — | 0.00 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
57
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 | ||||||
39594-1121
September 30, 2021
Semi Annual Report
USAA Tax Exempt Short-Term Fund
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 logos 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.
www.vcm.com
News, Information And Education 24 Hours A Day, 7 Days A Week
The Victory Capital site gives fund shareholders, prospective shareholders, and investment professionals a convenient way to access fund information, get guidance, and track fund performance anywhere they can access the Internet. The site includes:
• Detailed performance records
• Daily share prices
• The latest fund news
• Investment resources to help you become a better investor
• A section dedicated to investment professionals
Whether you're a potential investor searching for the fund that matches your investment philosophy, a seasoned investor interested in planning tools, or an investment professional, www.vcm.com has what you seek. Visit us anytime. We're always open.
USAA Mutual Funds Trust
TABLE OF CONTENTS
Investment Objective & Portfolio Holdings | 2 | ||||||
Schedule of Portfolio Investments | 3 | ||||||
Financial Statements | |||||||
Statement of Assets and Liabilities | 19 | ||||||
Statement of Operations | 20 | ||||||
Statements of Changes in Net Assets | 21 | ||||||
Financial Highlights | 24 | ||||||
Notes to Financial Statements | 26 | ||||||
Supplemental Information | 35 | ||||||
Proxy Voting and Portfolio Holdings Information | 35 | ||||||
Expense Examples | 35 | ||||||
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, and form W-4P (OMB No. 1545-0074 withholding certificate for pension or annuity payments) will be electronically sent.
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.
• NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | September 30, 2021 | ||||||
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide investors with interest income that is exempt from federal income tax.
Top 10 Industries
September 30, 2021
(% of Net Assets)
Hospital | 21.4 | % | |||||
General Obligation | 18.8 | % | |||||
Electric/Gas Utility | 10.1 | % | |||||
Electric Utilities | 8.1 | % | |||||
Education | 7.5 | % | |||||
Special Assessment/Tax/Fee | 6.2 | % | |||||
Oil & Gas Refining & Marketing | 3.3 | % | |||||
Appropriated Debt | 3.3 | % | |||||
Multifamily Housing | 2.8 | % | |||||
Nursing/CCRC | 2.5 | % | |||||
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Shares or Principal Amount | Value | |||||||||
Common Stocks (0.0%) (a) | |||||||||||
Utilities (0.0%): | |||||||||||
Energy Harbor Corp. (b) | 1,323 | $ | 53 | ||||||||
Total Common Stocks (Cost $33) | 53 | ||||||||||
Municipal Bonds (100.3%) | |||||||||||
Alabama (2.4%): | |||||||||||
Birmingham Airport Authority Revenue, 5.00%, 7/1/30 | $ | 1,200 | 1,560 | ||||||||
| Black Belt Energy Gas District Revenue, Series B-1, 0.96% (LIBOR01M+90bps), 12/1/48, (Put Date 12/1/23) (c) (k) | 10,000 | 10,091 | |||||||||
Chatom Industrial Development Board Revenue, 5.00%, 8/1/30 | 1,275 | 1,649 | |||||||||
| Prattville Industrial Development Board Revenue 2.00%, 11/1/33, (Put Date 10/1/24) (c) | 450 | 469 | |||||||||
2.00%, 11/1/33, (Put Date 10/1/24) (c) | 425 | 442 | |||||||||
| Selma Industrial Development Board Revenue 2.00%, 11/1/33, (Put Date 10/1/24) (c) | 3,650 | 3,799 | |||||||||
1.37%, 5/1/34, (Put Date 6/16/25) (c) | 5,875 | 6,008 | |||||||||
| The Lower Alabama Gas District Revenue (LOC — Goldman Sachs Bank USA), 4.00%, 12/1/50, (Put Date 12/1/25) (c) | 3,000 | 3,379 | |||||||||
27,397 | |||||||||||
Arizona (4.6%): | |||||||||||
| Arizona Health Facilities Authority Revenue, 1.90% (MUNIPSA+185bps), 2/1/48, (Put Date 2/1/23) (c) (k) | 25,000 | 25,507 | |||||||||
| Arizona IDA Revenue 3.00%, 12/15/31, Continuously Callable @100 (d) | 525 | 553 | |||||||||
Series B, 4.00%, 7/1/31 | 315 | 361 | |||||||||
| Maricopa County IDA Revenue 4.00%, 7/1/29 (d) | 750 | 848 | |||||||||
0.62% (MUNIPSA+57bps), 1/1/35, (Put Date 10/18/24) (c) (k) | 2,365 | 2,393 | |||||||||
Series C, 0.85% (MUNIPSA+80bps), 9/1/48, (Put Date 9/1/24) (c) (k) | 7,735 | 7,849 | |||||||||
Maricopa County Pollution Control Corp. Revenue, Series B, 0.11%, 6/1/43 (e) | 6,000 | 6,000 | |||||||||
| Pinal County IDA Revenue 4.00%, 10/1/21 | 650 | 650 | |||||||||
4.00%, 10/1/22 | 3,600 | 3,710 | |||||||||
| Tempe IDA Revenue Series A, 4.00%, 12/1/26 (f) | 240 | 266 | |||||||||
Series A, 4.00%, 12/1/27 (f) | 355 | 398 | |||||||||
Series A, 4.00%, 12/1/28 (f) | 365 | 413 | |||||||||
Series A, 4.00%, 12/1/29 (f) | 380 | 434 | |||||||||
Series A, 4.00%, 12/1/30, Continuously Callable @102 (f) | 495 | 559 | |||||||||
Series A, 4.00%, 12/1/31, Continuously Callable @102 (f) | 465 | 533 | |||||||||
Series C-1, 1.50%, 12/1/27, Continuously Callable @100 (f) | 1,965 | 1,948 | |||||||||
52,422 | |||||||||||
See notes to financial statements.
3
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Arkansas (0.7%): | |||||||||||
| Arkansas Development Finance Authority Revenue 5.00%, 9/1/30 | $ | 1,180 | $ | 1,511 | |||||||
5.00%, 9/1/31, Continuously Callable @100 | 1,200 | 1,532 | |||||||||
5.00%, 9/1/44, (Put Date 9/1/27) (c) | 4,000 | 4,814 | |||||||||
7,857 | |||||||||||
California (3.5%): | |||||||||||
| Anaheim Public Financing Authority Revenue Series A, 5.00%, 5/1/22 | 500 | 512 | |||||||||
Series A, 5.00%, 5/1/24 | 250 | 275 | |||||||||
| California County Tobacco Securitization Agency Revenue Series A, 5.00%, 6/1/30 | 200 | 262 | |||||||||
Series B-1, 1.75%, 6/1/30 | 40 | 40 | |||||||||
| California Infrastructure & Economic Development Bank Revenue 0.40% (MUNIPSA+35bps), 8/1/47, (Put Date 8/1/24) (c) (k) | 2,000 | 2,003 | |||||||||
Series B, 1.25% (MUNIPSA+120bps), 8/1/37, (Put Date 6/1/22) (c) (k) | 8,000 | 8,053 | |||||||||
| California Public Finance Authority Revenue Series A, 4.00%, 10/15/21 | 215 | 216 | |||||||||
Series A, 4.00%, 10/15/22 | 245 | 254 | |||||||||
| California Statewide Communities Development Authority Revenue (LIQ — Deutsche Bank A.G.), Series DBE-8066, 0.46%, 4/1/60, Callable 10/1/32 @ 100 (d) (e) | 5,000 | 5,000 | |||||||||
Contra Costa County Schools Pooled Notes Revenue, Series A, 2.00%, 12/1/21 | 4,500 | 4,511 | |||||||||
| Deutsche Bank Spears/Lifers Trust Revenue (LIQ — Deutsche Bank A.G.) Series DBE-8059, 0.46%, 12/1/52, Callable 12/1/21 @ 100 (d) (e) | 10,000 | 10,000 | |||||||||
Series DBE-8061, 0.46%, 1/1/60, Callable 1/1/37 @ 100 (d) (e) | 2,550 | 2,550 | |||||||||
| Sierra View Local Health Care District Revenue 5.00%, 7/1/27 | 315 | 388 | |||||||||
5.00%, 7/1/28 | 330 | 416 | |||||||||
5.00%, 7/1/29 | 315 | 404 | |||||||||
5.00%, 7/1/30 | 310 | 405 | |||||||||
| Western Placer Unified School District Special Tax, 2.00%, 6/1/25, Continuously Callable @100 | 4,750 | 4,891 | |||||||||
40,180 | |||||||||||
Colorado (1.2%): | |||||||||||
| Colorado Health Facilities Authority Revenue Series A, 5.00%, 8/1/29 | 500 | 640 | |||||||||
Series A, 5.00%, 11/1/29 | 3,225 | 4,136 | |||||||||
Series A, 5.00%, 11/1/30, Continuously Callable @100 | 2,215 | 2,833 | |||||||||
Series B-2, 5.00%, 8/1/49, (Put Date 8/1/26) (c) | 1,000 | 1,178 | |||||||||
| E-470 Public Highway Authority Revenue, Series B, 0.38% (SOFR+35bps), 9/1/39, (Put Date 9/1/24) (c) (k) | 4,000 | 3,996 | |||||||||
| Southlands Metropolitan District No. 1, GO Series A-1, 3.00%, 12/1/22 | 197 | 199 | |||||||||
Series A-1, 3.50%, 12/1/27 | 1,000 | 1,065 | |||||||||
14,047 | |||||||||||
Connecticut (2.6%): | |||||||||||
City of Bridgeport, GO, Series B, 5.00%, 8/15/26 | 3,450 | 4,119 | |||||||||
See notes to financial statements.
4
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| City of New Haven, GO Series A, 5.00%, 8/1/22 | $ | 1,190 | $ | 1,232 | |||||||
Series A, 5.00%, 8/1/24 | 1,000 | 1,117 | |||||||||
Series A, 5.00%, 8/1/25 | 580 | 669 | |||||||||
Series A, 5.00%, 8/1/26 | 580 | 686 | |||||||||
Series A, 5.00%, 8/1/27 | 1,000 | 1,211 | |||||||||
| City of New Haven, GO (INS — Assured Guaranty Municipal Corp.) Series A, 5.00%, 8/1/27 | 2,500 | 3,067 | |||||||||
Series A, 5.00%, 8/1/28 | 1,000 | 1,253 | |||||||||
Series B, 5.00%, 2/1/27 | 600 | 727 | |||||||||
Series B, 5.00%, 2/1/28 | 525 | 651 | |||||||||
Series B, 5.00%, 2/1/29 | 550 | 696 | |||||||||
| City of West Haven, GO Series A, 4.00%, 11/1/21 | 800 | 802 | |||||||||
Series A, 5.00%, 11/1/23 | 800 | 874 | |||||||||
Series A, 5.00%, 11/1/24 | 815 | 923 | |||||||||
Series A, 5.00%, 11/1/27 | 650 | 795 | |||||||||
| Connecticut State Health & Educational Facilities Authority Revenue Series A, 5.00%, 7/1/30, Continuously Callable @100 | 2,000 | 2,583 | |||||||||
Series B-2, 5.00%, 7/1/53, (Put Date 1/1/27) (c) | 3,000 | 3,649 | |||||||||
| Harbor Point Infrastructure Improvement District Tax Allocation, 5.00%, 4/1/22 (d) | 1,920 | 1,956 | |||||||||
| State of Connecticut Special Tax Revenue, Series A, 5.00%, 5/1/31, Continuously Callable @100 | 2,500 | 3,264 | |||||||||
30,274 | |||||||||||
Florida (1.6%): | |||||||||||
| Alachua County Health Facilities Authority Revenue 4.00%, 12/1/23 | 1,100 | 1,186 | |||||||||
5.00%, 12/1/37, (Put Date 12/1/26) (c) | 3,000 | 3,569 | |||||||||
Capital Trust Agency, Inc. Revenue, 4.00%, 8/1/30 | 200 | 228 | |||||||||
| City of Atlantic Beach Revenue, Series B-2, 3.00%, 11/15/23, Continuously Callable @100 | 2,750 | 2,755 | |||||||||
City of Pompano Beach Revenue, 3.50%, 9/1/30, Continuously Callable @103 | 3,590 | 3,968 | |||||||||
County of Escambia Revenue, 2.00%, 11/1/33, (Put Date 10/1/24) (c) | 775 | 807 | |||||||||
| Florida Development Finance Corp. Revenue Series A, 5.00%, 6/15/26 (d) | 370 | 432 | |||||||||
Series A, 5.00%, 6/15/27 (d) | 390 | 465 | |||||||||
Series A, 5.00%, 6/15/28, Continuously Callable @100 (d) | 410 | 488 | |||||||||
Series A, 5.00%, 6/15/29, Continuously Callable @100 (d) | 360 | 428 | |||||||||
Series A, 5.00%, 6/15/30, Continuously Callable @100 (d) | 475 | 565 | |||||||||
| Florida Higher Educational Facilities Financial Authority Revenue 5.00%, 10/1/22 | 500 | 519 | |||||||||
5.00%, 10/1/24 | 500 | 554 | |||||||||
5.00%, 10/1/25 | 445 | 505 | |||||||||
Lee County IDA Revenue, 4.75%, 10/1/22 | 1,350 | 1,410 | |||||||||
| Southeast Overtown Park West Community Redevelopment Agency Tax Allocation, Series A-1, 5.00%, 3/1/23 (d) | 1,000 | 1,063 | |||||||||
18,942 | |||||||||||
See notes to financial statements.
5
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Georgia (5.5%): | |||||||||||
| Appling County Development Authority Revenue, Series A, 1.50%, 1/1/38, (Put Date 2/3/25) (c) | $ | 2,000 | $ | 2,040 | |||||||
| Appling County Development Authority Revenue Bonds, 0.11%, 9/1/41, Continuously Callable @100 (e) | 6,900 | 6,900 | |||||||||
| Burke County Development Authority Revenue, 1.70%, 12/1/49, (Put Date 8/22/24) (c) | 7,500 | 7,767 | |||||||||
| Cobb County Development Authority Revenue, Series A, 2.25%, 4/1/33, (Put Date 10/1/29) (c) | 5,000 | 5,350 | |||||||||
| Cobb County Housing Authority Revenue (LIQ — Deutsche Bank A.G.), Series DBE-8068, 0.46%, 10/1/59, Callable 10/1/35 @ 100 (d) (e) | 3,055 | 3,055 | |||||||||
| Development Authority of Heard County Revenue, 0.12%, 9/1/26, Continuously Callable @100 (e) | 1,200 | 1,200 | |||||||||
George L Smith II Congress Center Authority Revenue, 2.38%, 1/1/31 | 1,000 | 1,054 | |||||||||
| Main Street Natural Gas, Inc. Revenue 4.00%, 8/1/48, (Put Date 12/1/23) (c) | 5,000 | 5,355 | |||||||||
Series A, 5.00%, 5/15/28 | 1,000 | 1,240 | |||||||||
Series A, 5.00%, 5/15/29 | 1,775 | 2,240 | |||||||||
Series C, 4.00%, 3/1/50, (Put Date 9/1/26) (c) | 10,000 | 11,467 | |||||||||
| Savannah Economic Development Authority Revenue, 2.00%, 11/1/33, (Put Date 10/1/24) (c) | 815 | 848 | |||||||||
| The Burke County Development Authority Revenue, Series 1, 0.11%, 7/1/49, Continuously Callable @100 (e) | 390 | 390 | |||||||||
| The Burke County Development Authority Revenue Bonds (NBGA — Southern Co.), 0.11%, 11/1/52, Continuously Callable @100 (e) | 3,550 | 3,550 | |||||||||
| The Development Authority of Monroe County Revenue, 0.11%, 4/1/32, Continuously Callable @100 (e) | 500 | 500 | |||||||||
| The Development Authority of Monroe County Revenue Bonds, 0.11%, 11/1/48, Continuously Callable @100 (e) | 6,220 | 6,220 | |||||||||
| The Monroe County Development Authority Revenue, Series A, 1.50%, 1/1/39, (Put Date 2/3/25) (c) | 3,500 | 3,571 | |||||||||
62,747 | |||||||||||
Guam (0.3%): | |||||||||||
| Territory of Guam Revenue Series A, 5.00%, 12/1/23 | 1,500 | 1,626 | |||||||||
Series A, 5.00%, 12/1/24 | 2,000 | 2,239 | |||||||||
3,865 | |||||||||||
Idaho (0.5%): | |||||||||||
County of Nez Perce Revenue, 2.75%, 10/1/24 | 5,000 | 5,303 | |||||||||
Illinois (13.3%): | |||||||||||
| Chicago Board of Education, GO Series A, 4.00%, 12/1/27 | 1,400 | 1,630 | |||||||||
Series B, 5.00%, 12/1/21 | 400 | 403 | |||||||||
Series B, 5.00%, 12/1/22 | 400 | 421 | |||||||||
Series B, 5.00%, 12/1/22 | 1,500 | 1,577 | |||||||||
Series B, 5.00%, 12/1/31, Continuously Callable @100 | 1,000 | 1,277 | |||||||||
| Chicago Board of Education, GO (LIQ — Deutsche Bank A.G.) Series 2016-XG0073, 0.14%, 12/1/39, Callable 12/1/21 @ 100 (d) (e) | 11,000 | 11,000 | |||||||||
Series 2017-XM0188, 0.14%, 12/1/39, Callable 12/1/21 @ 100 (d) (e) | 5,000 | 5,000 | |||||||||
See notes to financial statements.
6
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Chicago Park District, GO Series A, 4.00%, 1/1/31, Continuously Callable @100 | $ | 750 | $ | 903 | |||||||
Series F-2, 5.00%, 1/1/27 | 600 | 722 | |||||||||
Series F-2, 5.00%, 1/1/28 | 1,000 | 1,231 | |||||||||
Series F-2, 5.00%, 1/1/29 | 1,000 | 1,256 | |||||||||
Series F-2, 5.00%, 1/1/30 | 1,305 | 1,666 | |||||||||
Series F-2, 5.00%, 1/1/31, Continuously Callable @100 | 2,115 | 2,693 | |||||||||
Series F-2, 5.00%, 1/1/32, Continuously Callable @100 | 1,750 | 2,210 | |||||||||
| Chicago Park District, GO (INS — Build America Mutual Assurance Co.), (LIQ — Citigroup, Inc.), Series 2015-XF2111, 0.12%, 1/1/22 (d) (e) | 10,200 | 10,200 | |||||||||
| Chicago Transit Authority Revenue 5.00%, 6/1/25 | 1,720 | 1,992 | |||||||||
5.00%, 6/1/26 | 1,000 | 1,192 | |||||||||
| City of Chicago Waterworks Revenue 5.00%, 11/1/25 | 4,000 | 4,674 | |||||||||
5.00%, 11/1/26 | 1,000 | 1,199 | |||||||||
Series A-1, 5.00%, 11/1/25 | 2,000 | 2,337 | |||||||||
Series A-1, 4.00%, 11/1/26 | 2,500 | 2,874 | |||||||||
| County of Cook, GO (LIQ — JPMorgan Chase & Co.), Series 2015-XF0124, 0.15%, 5/15/22 (d) (e) | 11,160 | 11,160 | |||||||||
| Illinois Finance Authority Revenue 5.00%, 10/1/29 | 500 | 632 | |||||||||
5.00%, 10/1/30 | 250 | 320 | |||||||||
0.80% (MUNIPSA+75bps), 1/1/46, (Put Date 7/1/23) (c) (k) | 9,000 | 9,133 | |||||||||
Series B, 0.75% (MUNIPSA+70bps), 5/1/42, (Put Date 5/1/26) (c) (k) | 2,250 | 2,262 | |||||||||
Series C, 4.00%, 2/15/25 | 10,000 | 11,207 | |||||||||
Illinois Sports Facilities Authority Revenue, 5.00%, 6/15/28 | 1,000 | 1,213 | |||||||||
| Northern Illinois University Revenue 5.00%, 10/1/30 | 325 | 418 | |||||||||
5.00%, 10/1/31, Continuously Callable @100 | 450 | 581 | |||||||||
4.00%, 10/1/32, Continuously Callable @100 | 500 | 599 | |||||||||
| Northern Illinois University Revenue (INS — Build America Mutual Assurance Co.), Series B, 5.00%, 4/1/30 | 250 | 322 | |||||||||
| Sales Tax Securitization Corp. Revenue Series A, 5.00%, 1/1/28 | 1,000 | 1,239 | |||||||||
Series A, 5.00%, 1/1/29 | 2,500 | 3,160 | |||||||||
Series A, 5.00%, 1/1/30 | 2,000 | 2,571 | |||||||||
| State of Illinois, GO Series A, 5.00%, 3/1/22 | 1,500 | 1,529 | |||||||||
Series A, 5.00%, 10/1/23 | 3,000 | 3,268 | |||||||||
Series A, 5.00%, 11/1/25 | 5,000 | 5,833 | |||||||||
Series C, 5.00%, 11/1/29, Continuously Callable @100 | 8,985 | 10,893 | |||||||||
| State of Illinois, GO (INS — Build America Mutual Assurance Co.), Series D, 5.00%, 11/1/25 (g) | 15,000 | 17,373 | |||||||||
| The Illinois Sports Facilities Authority Revenue 5.00%, 6/15/30 | 1,500 | 1,889 | |||||||||
5.00%, 6/15/31 | 575 | 736 | |||||||||
5.00%, 6/15/32, Continuously Callable @100 | 480 | 612 | |||||||||
| Village of Rosemont, GO (INS — Assured Guaranty Municipal Corp.) Series A, 5.00%, 12/1/22 | 1,735 | 1,826 | |||||||||
See notes to financial statements.
7
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A, 5.00%, 12/1/23 | $ | 1,825 | $ | 2,002 | |||||||
Series A, 5.00%, 12/1/24 | 1,915 | 2,179 | |||||||||
| Western Illinois University Revenue (INS — Build America Mutual Assurance Co.) 4.00%, 4/1/29 | 750 | 892 | |||||||||
4.00%, 4/1/30 | 750 | 905 | |||||||||
| Will County Community High School District No. 210 Lincoln-Way, GO, 4.00%, 1/1/22 | 975 | 983 | |||||||||
152,194 | |||||||||||
Indiana (1.0%): | |||||||||||
| Brownsburg 1999 School Building Corp. Revenue, 1.50%, 5/13/22, Continuously Callable @100 (d) | 2,000 | 2,002 | |||||||||
Hammond Local Public Improvement Bond Bank Revenue, 2.00%, 12/31/21 | 1,170 | 1,173 | |||||||||
| Indiana Bond Bank Revenue 1/15/27 (h) | 1,280 | 1,214 | |||||||||
1/15/28 (h) | 1,100 | 1,024 | |||||||||
1/15/29 (h) | 565 | 516 | |||||||||
7/15/29, Continuously Callable @99 (h) | 730 | 641 | |||||||||
| Indiana Finance Authority Revenue, 2.95%, 10/1/22, Continuously Callable @100 | 5,000 | 5,093 | |||||||||
11,663 | |||||||||||
Iowa (0.3%): | |||||||||||
City of Waverly Revenue, 2.50%, 12/31/22, Continuously Callable @100 | 2,000 | 2,033 | |||||||||
Iowa Higher Education Loan Authority Revenue, 2.00%, 5/19/22 | 2,000 | 2,022 | |||||||||
4,055 | |||||||||||
Kansas (0.5%): | |||||||||||
| City of Burlington Revenue, Series B, 0.12%, 9/1/35, Continuously Callable @100 (e) | 4,050 | 4,050 | |||||||||
City of St. Marys Revenue, 0.09%, 4/15/32, Continuously Callable @100 (e) | 1,700 | 1,700 | |||||||||
5,750 | |||||||||||
Kentucky (6.9%): | |||||||||||
| City of Ashland Revenue 5.00%, 2/1/28 | 1,775 | 2,172 | |||||||||
5.00%, 2/1/30 | 740 | 933 | |||||||||
County of Carroll Revenue, 1.55%, 9/1/42, (Put Date 9/1/26) (c) | 5,000 | 5,100 | |||||||||
| County of Owen Revenue 2.45%, 6/1/39, (Put Date 10/1/29) (c) | 10,000 | 10,735 | |||||||||
2.45%, 9/1/39, (Put Date 10/1/29) (c) | 5,000 | 5,290 | |||||||||
| Kentucky Economic Development Finance Authority Revenue, Series B-3, 1.45% (MUNIPSA+140bps), 2/1/46, (Put Date 2/1/25) (c) (k) | 10,000 | 10,160 | |||||||||
| Kentucky Public Energy Authority Revenue Series B, 4.00%, 1/1/49, (Put Date 1/1/25) (c) | 5,715 | 6,313 | |||||||||
Series C, 4.00%, 2/1/50, (Put Date 2/1/28) (c) | 10,000 | 11,685 | |||||||||
Series C-1, 4.00%, 12/1/49, (Put Date 6/1/25) (c) | 10,000 | 11,157 | |||||||||
Series C-3, 1.10% (MUNIPSA+105bps), 12/1/49, (Put Date 6/1/25) (c) (k) | 10,000 | 10,269 | |||||||||
See notes to financial statements.
8
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Louisville/Jefferson County Metropolitan Government Revenue, 5.00%, 10/1/47, (Put Date 10/1/29) (c) | $ | 4,000 | $ | 5,122 | |||||||
78,936 | |||||||||||
Louisiana (3.6%): | |||||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority Revenue, Series A, 2.00%, 6/1/30, Continuously Callable @100 | 1,000 | 1,016 | |||||||||
| Louisiana Public Facilities Authority Revenue, 0.70% (MUNIPSA+65bps), 9/1/57, (Put Date 9/1/23) (c) (k) | 10,000 | 10,124 | |||||||||
Parish of St. Charles Revenue, 4.00%, 12/1/40, (Put Date 6/1/22) (c) | 4,000 | 4,092 | |||||||||
| Parish of St. James Revenue, Series B-1, 0.09%, 11/1/40, Continuously Callable @100 (e) (g) | 8,800 | 8,800 | |||||||||
| Parish of St. John the Baptist Revenue 2.10%, 6/1/37, (Put Date 7/1/24) (c) | 2,000 | 2,069 | |||||||||
2.20%, 6/1/37, (Put Date 7/1/26) (c) | 1,750 | 1,829 | |||||||||
Tobacco Settlement Financing Corp. Revenue, Series A, 5.00%, 5/15/22 | 5,000 | 5,144 | |||||||||
| Louisiana Stadium & Exposition District Revenue, 4.00%, 7/3/23, Continuously Callable @100 | 3,325 | 3,506 | |||||||||
| Tangipahoa Parish Hospital Service District No. 1 Revenue, 5.00%, 2/1/32, Continuously Callable @100 (f) | 3,470 | 4,433 | |||||||||
41,013 | |||||||||||
Maryland (0.9%): | |||||||||||
| Maryland Economic Development Corp. Revenue Series A, 5.00%, 6/1/25 | 1,500 | 1,725 | |||||||||
Series A, 5.00%, 6/1/26 | 2,000 | 2,364 | |||||||||
Series A, 5.00%, 6/1/27 | 1,340 | 1,620 | |||||||||
| Maryland Health & Higher Educational Facilities Authority Revenue 5.00%, 7/1/28 | 1,910 | 2,393 | |||||||||
5.00%, 7/1/29 | 1,130 | 1,443 | |||||||||
5.00%, 7/1/30 | 1,000 | 1,299 | |||||||||
10,844 | |||||||||||
Massachusetts (0.7%): | |||||||||||
| Massachusetts Development Finance Agency Revenue 5.00%, 7/1/25 | 1,250 | 1,437 | |||||||||
5.00%, 7/1/26 | 1,500 | 1,769 | |||||||||
5.00%, 7/15/26 (d) | 310 | 357 | |||||||||
5.00%, 7/15/28 (d) | 340 | 407 | |||||||||
5.00%, 7/15/30 (d) | 640 | 795 | |||||||||
Series A, 5.00%, 7/1/29, Continuously Callable @100 | 1,425 | 1,779 | |||||||||
Series C, 5.00%, 10/1/30 | 975 | 1,271 | |||||||||
7,815 | |||||||||||
Michigan (0.7%): | |||||||||||
| Flint Hospital Building Authority Revenue 5.00%, 7/1/29 | 1,995 | 2,401 | |||||||||
5.00%, 7/1/30 | 2,290 | 2,800 | |||||||||
See notes to financial statements.
9
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Summit Academy North Revenue 2.25%, 11/1/26 | $ | 1,335 | $ | 1,329 | |||||||
4.00%, 11/1/31, Continuously Callable @103 | 1,565 | 1,714 | |||||||||
8,244 | |||||||||||
Minnesota (0.2%): | |||||||||||
| Housing & Redevelopment Authority of The City of St Paul Minnesota Revenue, 5.00%, 11/15/21 | 1,575 | 1,584 | |||||||||
| Sanford Canby Community Hospital District No. 1 Revenue, 0.40%, 11/1/26, Continuously Callable @100 (e) | 1,295 | 1,295 | |||||||||
2,879 | |||||||||||
Mississippi (1.5%): | |||||||||||
County of Warren Revenue, 2.90%, 9/1/32, (Put Date 9/1/23) (c) | 2,000 | 2,089 | |||||||||
| Mississippi Business Finance Corp. Revenue, 3.20%, 9/1/28, Continuously Callable @100 | 4,000 | 4,209 | |||||||||
Mississippi Hospital Equipment & Facilities Authority Revenue, 5.00%, 9/1/24 | 10,000 | 11,315 | |||||||||
17,613 | |||||||||||
Missouri (0.2%): | |||||||||||
| Health & Educational Facilities Authority of The State of Missouri Revenue 3.00%, 8/1/22 | 135 | 137 | |||||||||
4.00%, 8/1/24 | 155 | 169 | |||||||||
4.00%, 8/1/26 | 205 | 232 | |||||||||
4.00%, 8/1/28 | 415 | 482 | |||||||||
4.00%, 8/1/30 | 295 | 349 | |||||||||
| Missouri Development Finance Board Revenue 5.00%, 3/1/22 | 350 | 356 | |||||||||
5.00%, 3/1/23 | 200 | 211 | |||||||||
5.00%, 3/1/24 | 300 | 329 | |||||||||
2,265 | |||||||||||
Montana (0.8%): | |||||||||||
City of Forsyth Revenue, 2.00%, 8/1/23 | 6,000 | 6,189 | |||||||||
| Montana State Board of Regents Revenue, Series F, 0.50% (MUNIPSA+45bps), 11/15/35, (Put Date 9/1/23) (c) (k) | 3,075 | 3,075 | |||||||||
9,264 | |||||||||||
Nevada (0.4%): | |||||||||||
County of Washoe Revenue, Series B, 3.00%, 3/1/36, (Put Date 6/1/22) (c) | 4,400 | 4,480 | |||||||||
New Hampshire (0.1%): | |||||||||||
| New Hampshire Business Finance Authority Revenue 4.00%, 1/1/30, Continuously Callable @103 | 280 | 316 | |||||||||
4.00%, 1/1/31, Continuously Callable @103 | 295 | 331 | |||||||||
647 | |||||||||||
New Jersey (6.5%): | |||||||||||
| Casino Reinvestment Development Authority Revenue (INS — Assured Guaranty Municipal Corp.), 5.00%, 11/1/24 | 1,000 | 1,115 | |||||||||
| City of Newark, GO Series B, 2.00%, 10/5/21 | 1,160 | 1,160 | |||||||||
Series C, 2.00%, 10/5/21 | 4,200 | 4,200 | |||||||||
See notes to financial statements.
10
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| New Jersey Building Authority Revenue Series A, 3.00%, 6/15/23 | $ | 400 | $ | 418 | |||||||
Series A, 3.00%, 6/15/23 | 600 | 627 | |||||||||
Series A, 5.00%, 6/15/24 | 1,595 | 1,795 | |||||||||
Series A, 5.00%, 6/15/24 | 2,405 | 2,699 | |||||||||
| New Jersey Economic Development Authority Revenue Series BBB, 5.00%, 6/15/23 | 7,000 | 7,550 | |||||||||
Series XX, 5.00%, 6/15/22 (g) | 20,000 | 20,652 | |||||||||
| New Jersey Economic Development Authority Revenue (LOC — Valley National Bank), 0.35%, 3/1/31, Continuously Callable @100 (e) | 1,290 | 1,290 | |||||||||
| New Jersey Educational Facilities Authority Revenue Series B, 5.00%, 9/1/22 | 4,735 | 4,935 | |||||||||
Series B, 5.00%, 9/1/23 | 4,000 | 4,353 | |||||||||
Series B, 4.00%, 9/1/24 | 4,730 | 5,214 | |||||||||
| New Jersey Transportation Trust Fund Authority Revenue 5.00%, 6/15/24 | 5,095 | 5,718 | |||||||||
Series AA, 5.00%, 6/15/22 | 1,500 | 1,549 | |||||||||
Series AA, 5.00%, 6/15/23 | 3,835 | 4,136 | |||||||||
State of New Jersey, GO, Series A, 4.00%, 6/1/31 | 3,000 | 3,698 | |||||||||
Tobacco Settlement Financing Corp. Revenue, Series B, 3.20%, 6/1/27 | 560 | 569 | |||||||||
Township of Weehawken, GO, 1.25%, 12/30/21 | 2,412 | 2,415 | |||||||||
74,093 | |||||||||||
New Mexico (2.0%): | |||||||||||
| City of Farmington Revenue 1.88%, 4/1/33, (Put Date 10/1/21) (c) | 6,000 | 6,000 | |||||||||
2.13%, 6/1/40, (Put Date 6/1/22) (c) | 2,000 | 2,020 | |||||||||
Series A, 2.15%, 4/1/33, Continuously Callable @101 (f) | 5,000 | 4,888 | |||||||||
Series A, 0.11%, 6/1/40 (e) | 4,000 | 4,000 | |||||||||
| New Mexico Hospital Equipment Loan Council Revenue 5.00%, 6/1/22 | 445 | 459 | |||||||||
5.00%, 6/1/27 | 770 | 936 | |||||||||
5.00%, 6/1/28 | 780 | 966 | |||||||||
5.00%, 6/1/29 | 835 | 1,050 | |||||||||
5.00%, 6/1/30 | 525 | 670 | |||||||||
5.00%, 6/1/31, Continuously Callable @100 | 690 | 877 | |||||||||
| Village of Los Ranchos de Albuquerque Revenue 5.00%, 9/1/28 | 840 | 1,039 | |||||||||
5.00%, 9/1/31, Continuously Callable @100 | 300 | 382 | |||||||||
23,287 | |||||||||||
New York (10.7%): | |||||||||||
City of Amsterdam, GO, 1.00%, 6/23/22 | 6,061 | 6,022 | |||||||||
City of Long Beach, GO, Series A, 0.63%, 2/22/22, Continuously Callable @100 | 9,335 | 9,335 | |||||||||
| City of New York, GO 0.13%, 10/1/46, Continuously Callable @100 (e) | 8,700 | 8,700 | |||||||||
Series 2, 0.13%, 4/1/42, Continuously Callable @100 (e) | 4,000 | 4,000 | |||||||||
Series 3, 0.13%, 4/1/42, Continuously Callable @100 (e) | 2,000 | 2,000 | |||||||||
City of Ogdensburg, GO, 2.38%, 4/22/22 | 1,160 | 1,170 | |||||||||
See notes to financial statements.
11
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| City of Poughkeepsie, GO 4.00%, 10/15/21 | $ | 100 | $ | 100 | |||||||
4.00%, 4/15/22 | 130 | 132 | |||||||||
4.00%, 4/15/23 | 135 | 140 | |||||||||
4.00%, 4/15/24 | 140 | 148 | |||||||||
4.00%, 4/15/25 | 215 | 231 | |||||||||
4.00%, 4/15/26 | 230 | 251 | |||||||||
| County of Rockland, GO (INS — Assured Guaranty Municipal Corp.) Series A, 5.00%, 3/1/23 | 2,500 | 2,663 | |||||||||
Series A, 5.00%, 3/1/24 | 1,600 | 1,776 | |||||||||
| Long Island Power Authority Revenue Series B, 1.65%, 9/1/49, (Put Date 9/1/24) (c) | 4,500 | 4,644 | |||||||||
Series C, 0.81% (LIBOR01M+75bps), 5/1/33, (Put Date 10/1/23) (c) (k) | 4,000 | 4,011 | |||||||||
Series C, 0.81% (LIBOR01M+75bps), 5/1/33, (Put Date 10/1/23) (c) (k) | 5,000 | 5,001 | |||||||||
| Metropolitan Transportation Authority Revenue 0.55% (MUNIPSA+50bps), 11/15/42, (Put Date 3/1/22) (c) (k) | 10,000 | 9,978 | |||||||||
Series 2, 0.83% (SOFR+80bps), 11/1/32, (Put Date 4/1/26) (c) (k) | 2,000 | 1,998 | |||||||||
Series A-1, 5.00%, 2/1/23 | 8,050 | 8,540 | |||||||||
Series A-2, 5.00%, 11/15/45, (Put Date 5/15/30) (c) | 1,830 | 2,328 | |||||||||
Series B-1, 5.00%, 5/15/22 | 3,155 | 3,248 | |||||||||
Series D-2, 0.50% (MUNIPSA+45bps), 11/15/44, (Put Date 11/15/22) (c) (k) | 8,000 | 7,968 | |||||||||
Monroe County Industrial Development Corp. Revenue, 5.00%, 12/1/21 | 525 | 529 | |||||||||
| New York Liberty Development Corp. Revenue 2.63%, 9/15/69, Continuously Callable @100 | 1,650 | 1,672 | |||||||||
2.80%, 9/15/69, Continuously Callable @100 | 14,950 | 15,265 | |||||||||
Series A, 1.90%, 11/15/31, Continuously Callable @100 | 2,000 | 2,004 | |||||||||
| New York State Dormitory Authority Revenue 5.00%, 12/1/24 (d) | 1,200 | 1,369 | |||||||||
5.00%, 12/1/25 (d) | 1,200 | 1,410 | |||||||||
| New York State Housing Finance Agency Revenue (LIQ — Deutsche Bank A.G.), Series DBE-DBE-8073, 0.46%, 8/1/50, Continuously Callable @100 (d) (e) | 4,958 | 4,958 | |||||||||
| Niagara Area Development Corp. Revenue, Series B, 3.50%, 11/1/24, Continuously Callable @100 (d) | 500 | 520 | |||||||||
| Troy Capital Resource Corp. Revenue 5.00%, 8/1/26, Continuously Callable @100 | 1,050 | 1,235 | |||||||||
5.00%, 9/1/27 | 1,250 | 1,527 | |||||||||
Village of Valley Stream, GO, Series A, 2.00%, 5/12/22 | 7,590 | 7,649 | |||||||||
122,522 | |||||||||||
North Carolina (0.8%): | |||||||||||
| Columbus County Industrial Facilities & Pollution Control Financing Authority Revenue 2.00%, 11/1/33, (Put Date 10/1/24) (c) | 825 | 859 | |||||||||
2.00%, 11/1/33, (Put Date 10/1/24) (c) | 825 | 859 | |||||||||
Series A, 1.37%, 5/1/34, (Put Date 6/16/25) (c) | 2,000 | 2,045 | |||||||||
| North Carolina Medical Care Commission Revenue 2.50%, 10/1/24, Continuously Callable @100 | 745 | 747 | |||||||||
2.30%, 9/1/25, Continuously Callable @100 | 1,250 | 1,248 | |||||||||
2.88%, 10/1/26, Continuously Callable @100 | 650 | 653 | |||||||||
See notes to financial statements.
12
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
Series A, 4.00%, 10/1/27 | $ | 600 | $ | 699 | |||||||
Series B-1, 2.55%, 9/1/26, Continuously Callable @100 | 1,575 | 1,574 | |||||||||
8,684 | |||||||||||
North Dakota (0.3%): | |||||||||||
| City of Grand Forks Revenue 5.00%, 12/1/31 | 1,200 | 1,560 | |||||||||
5.00%, 12/1/32, Continuously Callable @100 | 1,300 | 1,684 | |||||||||
3,244 | |||||||||||
Ohio (2.2%): | |||||||||||
| Akron Bath Copley Joint Township Hospital District Revenue 5.00%, 11/15/29 | 275 | 348 | |||||||||
5.00%, 11/15/30 | 350 | 450 | |||||||||
5.00%, 11/15/31, Continuously Callable @100 | 300 | 385 | |||||||||
| County of Allen Hospital Facilities Revenue, 5.00%, 12/1/30, Continuously Callable @100 | 2,000 | 2,600 | |||||||||
County of Hamilton Revenue, 5.00%, 9/15/29 | 1,345 | 1,723 | |||||||||
| Ohio Air Quality Development Authority Revenue 1.90%, 5/1/26, (Put Date 10/1/24) (c) | 3,500 | 3,640 | |||||||||
2.40%, 12/1/38, (Put Date 10/1/29) (c) | 3,250 | 3,368 | |||||||||
| Ohio Higher Educational Facility Commission Revenue 5.00%, 5/1/22 | 500 | 513 | |||||||||
5.00%, 5/1/23 | 550 | 590 | |||||||||
5.00%, 5/1/24 | 1,000 | 1,116 | |||||||||
Ohio Water Development Authority Revenue, 6/1/33 (i) (j) | 5,000 | — | |||||||||
| Port of Greater Cincinnati Development Authority Revenue, Series A, 3.00%, 5/1/23, Continuously Callable @100 | 4,765 | 4,770 | |||||||||
| Southeastern Ohio Port Authority Revenue 5.00%, 12/1/21 | 1,150 | 1,155 | |||||||||
5.00%, 12/1/25, Continuously Callable @100 | 1,000 | 1,087 | |||||||||
| State of Ohio Revenue 5.00%, 11/15/27 | 425 | 520 | |||||||||
5.00%, 11/15/30 | 710 | 908 | |||||||||
5.00%, 11/15/31, Continuously Callable @100 | 465 | 594 | |||||||||
Series A, 5.00%, 1/15/30 | 1,000 | 1,286 | |||||||||
25,053 | |||||||||||
Oklahoma (3.2%): | |||||||||||
| Garfield County Industrial Authority Revenue, Series A, 0.13%, 1/1/25, Callable 11/3/21 @ 100 (e) (g) | 4,200 | 4,200 | |||||||||
| Muskogee Industrial Trust Revenue 4.00%, 9/1/28 | 2,500 | 2,902 | |||||||||
4.00%, 9/1/29 | 3,010 | 3,524 | |||||||||
Series A, 0.13%, 6/1/27, Continuously Callable @100 (e) | 21,590 | 21,590 | |||||||||
| Oklahoma Development Finance Authority Revenue Series B, 5.00%, 8/15/23 | 500 | 541 | |||||||||
Series B, 5.00%, 8/15/24 | 600 | 673 | |||||||||
Series B, 5.00%, 8/15/25 | 550 | 635 | |||||||||
See notes to financial statements.
13
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Oklahoma Municipal Power Authority Revenue, Series A, 0.44% (MUNIPSA+39bps), 1/1/23 (k) | $ | 3,135 | $ | 3,140 | |||||||
37,205 | |||||||||||
Oregon (0.2%): | |||||||||||
| County of Yamhill Revenue 4.00%, 10/1/21 | 330 | 330 | |||||||||
4.00%, 10/1/22 | 555 | 574 | |||||||||
4.00%, 10/1/23 | 425 | 454 | |||||||||
4.00%, 10/1/24 | 425 | 467 | |||||||||
| Oregon State Facilities Authority Revenue Series A, 5.00%, 10/1/28 | 150 | 187 | |||||||||
Series A, 5.00%, 10/1/29 | 300 | 380 | |||||||||
Series A, 5.00%, 10/1/30 | 300 | 385 | |||||||||
2,777 | |||||||||||
Pennsylvania (6.7%): | |||||||||||
Allentown City School District, GO, 1.00%, 3/31/22, Continuously Callable @100 | 2,000 | 2,006 | |||||||||
Chester County IDA Revenue, 3.75%, 10/1/24 | 485 | 513 | |||||||||
Coatesville School District, GO, 2.00%, 11/15/21 | 3,000 | 3,003 | |||||||||
| Coatesville School District, GO (INS — Assured Guaranty Municipal Corp.) 5.00%, 8/1/24 | 1,000 | 1,124 | |||||||||
5.00%, 8/1/25 | 800 | 929 | |||||||||
Commonwealth Financing Authority Revenue, 5.00%, 6/1/26 | 2,000 | 2,392 | |||||||||
| County of Lehigh Revenue 5.00%, 7/1/28 | 1,750 | 2,204 | |||||||||
5.00%, 7/1/29 | 2,000 | 2,565 | |||||||||
| Delaware County Authority Revenue 4.00%, 10/1/21 | 180 | 180 | |||||||||
4.00%, 10/1/22 | 200 | 206 | |||||||||
5.00%, 10/1/23 | 235 | 253 | |||||||||
5.00%, 10/1/24 | 505 | 560 | |||||||||
5.00%, 10/1/25 | 525 | 598 | |||||||||
5.00%, 10/1/30 | 1,200 | 1,436 | |||||||||
| Geisinger Authority Revenue 1.12% (LIBOR01M+107bps), 6/1/28, (Put Date 6/1/24) (c) (k) | 7,000 | 7,140 | |||||||||
5.00%, 4/1/43, (Put Date 4/1/30) (c) | 4,250 | 5,447 | |||||||||
| General Authority of Southcentral Pennsylvania Revenue, 0.65% (MUNIPSA+60bps), 6/1/49, (Put Date 6/1/24) (c) (k) | 6,000 | 6,084 | |||||||||
| Hospitals & Higher Education Facilities Authority of Philadelphia Revenue, 5.00%, 7/1/22 | 1,595 | 1,640 | |||||||||
| Latrobe IDA Revenue 5.00%, 3/1/28 | 135 | 159 | |||||||||
5.00%, 3/1/29 | 175 | 209 | |||||||||
5.00%, 3/1/30 | 150 | 181 | |||||||||
5.00%, 3/1/31 | 175 | 213 | |||||||||
| Luzerne County IDA Revenue (INS — Assured Guaranty Municipal Corp.) 5.00%, 12/15/25 | 550 | 644 | |||||||||
5.00%, 12/15/26, Continuously Callable @100 | 500 | 585 | |||||||||
5.00%, 12/15/27, Continuously Callable @100 | 1,000 | 1,169 | |||||||||
See notes to financial statements.
14
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Montgomery County Higher Education & Health Authority Revenue, 0.77% (MUNIPSA+72bps), 9/1/51, (Put Date 9/1/23) (c) (k) | $ | 6,250 | $ | 6,250 | |||||||
| Northampton County General Purpose Authority Revenue, 1.10% (LIBOR01M+104bps), 8/15/48, (Put Date 8/15/24) (c) (k) | 1,855 | 1,848 | |||||||||
| Philadelphia IDA Revenue 5.00%, 6/15/28 (d) | 210 | 254 | |||||||||
5.00%, 6/15/29, Continuously Callable @100 (d) | 220 | 264 | |||||||||
5.00%, 6/15/30, Continuously Callable @100 (d) | 145 | 174 | |||||||||
| Pittsburgh Water & Sewer Authority Revenue, Series C, 0.70% (MUNIPSA+65bps), 9/1/40, (Put Date 12/1/23) (c) (k) | 7,500 | 7,555 | |||||||||
School District of Philadelphia, GO, Series D, 5.00%, 9/1/22 | 5,500 | 5,733 | |||||||||
| Scranton School District, GO 0.91% (LIBOR01M+85bps), 4/1/31, (Put Date 12/1/22) (c) (k) | 6,590 | 6,673 | |||||||||
Series A, 5.00%, 6/1/23 | 2,435 | 2,626 | |||||||||
| The Berks County Municipal Authority Revenue, Series B, 5.00%, 2/1/40, (Put Date 2/1/30) (c) | 1,700 | 1,971 | |||||||||
| West Mifflin School District, GO (INS — Assured Guaranty Municipal Corp.), 5.00%, 10/1/21 | 1,570 | 1,570 | |||||||||
Westmoreland County IDA Revenue, Series A, 4.00%, 7/1/22 | 300 | 308 | |||||||||
76,666 | |||||||||||
South Carolina (0.9%): | |||||||||||
| Patriots Energy Group Financing Agency Revenue, Series B, 0.92% (LIBOR01M+86bps), 10/1/48, (Put Date 2/1/24) (c) (k) | 10,000 | 10,172 | |||||||||
South Dakota (0.4%): | |||||||||||
| South Dakota Health & Educational Facilities Authority Revenue 0.40%, 11/1/25, Continuously Callable @100 (e) | 1,505 | 1,505 | |||||||||
0.40%, 11/1/27, Continuously Callable @100 (e) | 2,975 | 2,975 | |||||||||
4,480 | |||||||||||
Tennessee (0.4%): | |||||||||||
| Chattanooga Health Educational & Housing Facility Board Revenue, Series C, 0.09%, 5/1/39, Continuously Callable @100 (e) (g) | 4,200 | 4,200 | |||||||||
Texas (6.1%): | |||||||||||
| Austin Affordable PFC, Inc. Revenue (LIQ — Deutsche Bank A.G.), Series 2021-XF1102, 0.30%, 7/1/61, Callable 7/1/33 @ 104 (d) (e) | 1,750 | 1,750 | |||||||||
| City of Dallas Housing Finance Corp. Revenue (LOC — Deutsche Bank A.G.), Series 2021-XF1109, 0.30%, 7/1/61, Callable 8/1/33 @ 103 (d) (e) | 4,000 | 4,000 | |||||||||
| County of Wise Revenue 5.00%, 8/15/22 | 525 | 544 | |||||||||
5.00%, 8/15/23 | 500 | 539 | |||||||||
5.00%, 8/15/29 | 880 | 1,086 | |||||||||
5.00%, 8/15/31 | 680 | 859 | |||||||||
5.00%, 8/15/32, Continuously Callable @100 | 450 | 567 | |||||||||
5.00%, 8/15/33, Continuously Callable @100 | 930 | 1,165 | |||||||||
Decatur Hospital Authority Revenue, Series A, 5.00%, 9/1/24 | 780 | 881 | |||||||||
| Harris County Cultural Education Facilities Finance Corp. Revenue 5.00%, 7/1/49, (Put Date 12/1/26) (c) | 1,400 | 1,694 | |||||||||
0.62% (MUNIPSA+57bps), 12/1/49, (Put Date 12/4/24) (c) (k) | 1,670 | 1,673 | |||||||||
See notes to financial statements.
15
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Harris County Municipal Utility District No. 165, GO (INS — Build America Mutual Assurance Co.) 3.00%, 3/1/22 | $ | 650 | $ | 657 | |||||||
3.00%, 3/1/23 | 520 | 539 | |||||||||
| Irving Hospital Authority Revenue, 1.15% (MUNIPSA+110bps), 10/15/44, (Put Date 10/15/23) (c) (k) | 1,665 | 1,665 | |||||||||
Karnes County Hospital District Revenue, 5.00%, 2/1/24 | 1,885 | 2,006 | |||||||||
| Martin County Hospital District, GO 4.00%, 4/1/23 | 250 | 261 | |||||||||
4.00%, 4/1/27 | 300 | 340 | |||||||||
4.00%, 4/1/29 | 405 | 469 | |||||||||
4.00%, 4/1/32, Continuously Callable @100 | 350 | 403 | |||||||||
Matagorda County Navigation District No. 1 Revenue, 2.60%, 11/1/29 | 4,000 | 4,277 | |||||||||
New Hope Cultural Education Facilities Finance Corp. Revenue | |||||||||||
Series A, 2.25%, 7/1/23 (m) | 1,250 | 1,069 | |||||||||
Series A, 2.25%, 7/1/24 (m) | 2,300 | 1,966 | |||||||||
Series A, 2.25%, 7/1/25 (m) | 2,135 | 1,825 | |||||||||
| Port of Port Arthur Navigation District Revenue, 0.11%, 11/1/40, Continuously Callable @100 (e) (g) | 24,675 | 24,675 | |||||||||
| Port of Port Arthur Navigation District Revenue Bonds Series B, 0.12%, 4/1/40, Continuously Callable @100 (e) | 4,000 | 4,000 | |||||||||
Series C, 0.13%, 4/1/40, Continuously Callable @100 (e) | 5,100 | 5,100 | |||||||||
| Texas Municipal Gas Acquisition & Supply Corp. III Revenue 5.00%, 12/15/21 | 2,000 | 2,018 | |||||||||
5.00%, 12/15/32 | 1,000 | 1,348 | |||||||||
| Texas Private Activity Bond Surface Transportation Corp. Revenue, 4.00%, 6/30/31, Continuously Callable @100 | 2,355 | 2,831 | |||||||||
70,207 | |||||||||||
Utah (0.6%): | |||||||||||
| Utah Housing Corp. Revenue (LIQ — Deutsche Bank A.G.), Series 2019-XF1081, 0.30%, 3/1/62, Callable 2/1/31 @ 100 (d) (e) | 6,565 | 6,565 | |||||||||
Vermont (1.2%): | |||||||||||
| Vermont Economic Development Authority Revenue 4.00%, 5/1/29, Continuously Callable @103 (f) | 445 | 498 | |||||||||
4.00%, 5/1/30, Continuously Callable @103 (f) | 230 | 258 | |||||||||
Winooski School District, GO, 1.25%, 10/15/21 | 12,500 | 12,504 | |||||||||
13,260 | |||||||||||
Virginia (1.1%): | |||||||||||
Chesapeake Bay Bridge & Tunnel District Revenue, 5.00%, 11/1/23 | 5,140 | 5,632 | |||||||||
| James City County Economic Development Authority Revenue 4.00%, 12/1/29, Continuously Callable @103 (f) | 230 | 262 | |||||||||
4.00%, 12/1/30, Continuously Callable @103 (f) | 220 | 249 | |||||||||
Marquis Community Development Authority Revenue, 1.50%, 9/1/45 (d) (l) (m) | 1,074 | 517 | |||||||||
| Marquis Community Development Authority Tax Allocation Series A, 1.02%, 9/1/36 (l) (m) | 3,506 | 1,686 | |||||||||
Series C, 9/1/41 (h) (l) (m) | 5,111 | 236 | |||||||||
Prince William County IDA Revenue, 5.00%, 1/1/31, Continuously Callable @102 | 1,700 | 1,807 | |||||||||
See notes to financial statements.
16
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Amounts in Thousands, Except for Shares) (Unaudited)
Security Description | Principal Amount | Value | |||||||||
| Virginia Small Business Financing Authority Revenue Series A, 5.00%, 1/1/22 | $ | 370 | $ | 374 | |||||||
Series A, 5.00%, 1/1/31, Continuously Callable @103 | 1,250 | 1,562 | |||||||||
12,325 | |||||||||||
Washington (1.3%): | |||||||||||
| Washington Health Care Facilities Authority Revenue 5.00%, 8/15/26 | 2,000 | 2,384 | |||||||||
5.00%, 8/15/27 | 2,175 | 2,648 | |||||||||
Series B-2, 1.45% (MUNIPSA+140bps), 1/1/35, (Put Date 1/1/25) (c) (k) | 10,000 | 10,414 | |||||||||
15,446 | |||||||||||
Wisconsin (1.7%): | |||||||||||
| Public Finance Authority Revenue 4.00%, 9/1/24 (d) | 930 | 965 | |||||||||
3.25%, 1/1/30 | 1,795 | 1,986 | |||||||||
5.00%, 4/1/30 (d) | 500 | 597 | |||||||||
| Wisconsin Health & Educational Facilities Authority Revenue 2.25%, 11/1/26, Continuously Callable @100 | 3,000 | 3,003 | |||||||||
2.55%, 11/1/27, Continuously Callable @100 | 1,500 | 1,502 | |||||||||
4.00%, 3/15/30 | 400 | 451 | |||||||||
0.15%, 2/15/53, Callable 11/1/21 @ 100 (e) | 6,500 | 6,500 | |||||||||
0.70% (MUNIPSA+65bps), 8/15/54, (Put Date 7/31/24) (c) (k) | 1,700 | 1,736 | |||||||||
Series B-2, 5.00%, 2/15/51, (Put Date 2/15/27) (c) | 2,000 | 2,386 | |||||||||
19,126 | |||||||||||
Total Municipal Bonds (Cost $1,120,204) | 1,150,008 | ||||||||||
Total Investments (Cost $1,120,237) — 100.3% | 1,150,061 | ||||||||||
Liabilities in excess of other assets — (0.3)% | (3,630 | ) | |||||||||
NET ASSETS — 100.00% | $ | 1,146,431 | |||||||||
(a) Amount represents less than 0.05% of net assets.
(b) Non-income producing security.
(c) Put Bond.
(d) 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 (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of September 30, 2021, the fair value of these securities was $91,667 (thousands) and amounted to 8.0% of net assets.
(e) 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.
(f) Security or portion of security purchased on a delayed-delivery and/or when-issued basis.
(g) All or a portion of this security has been segregated as collateral for securities purchased on a delayed-delivery and/or when-issued basis.
(h) Zero-coupon bond.
See notes to financial statements.
17
| USAA Mutual Funds Trust USAA Tax Exempt Short-Term Fund | Schedule of Portfolio Investments — continued September 30, 2021 | ||||||
(Unaudited)
(i) Security was fair valued based upon procedures approved by the Board of Trustees and represents 0.0% of net assets as of September 30, 2021. This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements).
(j) The Fund's Adviser has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. As of September 30, 2021, illiquid securities were 0.0% of net assets.
(k) Variable or Floating-Rate Security. Rate disclosed is as of September 30, 2021.
(l) This security is classified as Level 3 within the fair value hierarchy. (See Note 2 in the Notes to Financial Statements).
(m) Currently the issuer is in default with respect to interest and/or principal payments.
bps — Basis points
Continuously callable — Investment is continuously callable or will be continuously callable on any date after the first call date until its maturity.
GO — General Obligation
IDA — Industrial Development Authority
LIBOR — London InterBank Offered Rate
LIBOR01M — 1 Month US Dollar LIBOR, rate disclosed as of September 30, 2021, based on the last reset date of the security
LOC — Letter of Credit
MUNIPSA — Municipal Swap Index
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.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
LIQ Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from the name listed.
LOC Principal and interest payments are guaranteed by a bank letter of credit or other bank credit agreement.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
18
USAA Mutual Funds Trust | Statement of Assets and Liabilities September 30, 2021 | ||||||
(Amounts in Thousands, Except Per Share Amounts) (Unaudited)
| USAA Tax Exempt Short-Term Fund | |||||||
Assets: | |||||||
Investments, at value (Cost $1,120,237) | $ | 1,150,061 | |||||
Cash | 66 | ||||||
Receivables: | |||||||
Interest and dividends | 7,578 | ||||||
Capital shares issued | 221 | ||||||
Investments sold | 5,000 | ||||||
Prepaid expenses | 52 | ||||||
Total Assets | 1,162,978 | ||||||
Liabilities: | |||||||
Payables: | |||||||
Distributions | 150 | ||||||
Investments purchased | 15,341 | ||||||
Capital shares redeemed | 425 | ||||||
Accrued expenses and other payables: | |||||||
Investment advisory fees | 321 | ||||||
Administration fees | 141 | ||||||
Custodian fees | 8 | ||||||
Transfer agent fees | 80 | ||||||
Compliance fees | 1 | ||||||
Trustees' fees | — | (a) | |||||
| 12b-1 fees | 1 | ||||||
Other accrued expenses | 79 | ||||||
Total Liabilities | 16,547 | ||||||
Net Assets: | |||||||
Capital | 1,142,862 | ||||||
Total accumulated earnings/(loss) | 3,569 | ||||||
Net Assets | $ | 1,146,431 | |||||
Net Assets | |||||||
Fund Shares | $ | 1,093,438 | |||||
Institutional Shares | 40,227 | ||||||
Class A | 12,766 | ||||||
Total | $ | 1,146,431 | |||||
Shares (unlimited number of shares authorized with no par value): | |||||||
Fund Shares | 102,696 | ||||||
Institutional Shares | 3,776 | ||||||
Class A | 1,197 | ||||||
Total | 107,669 | ||||||
Net asset value, offering and redemption price per share: (b) | |||||||
Fund Shares | $ | 10.65 | |||||
Institutional Shares | $ | 10.65 | |||||
Class A | $ | 10.66 | |||||
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 | $ | 10.91 | |||||
(a) Rounds to less than $1 thousand.
(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 September 30, 2021 | ||||||
(Amounts in Thousands) (Unaudited)
| USAA Tax Exempt Short-Term Fund | |||||||
Investment Income: | |||||||
Interest | $ | 9,996 | |||||
Total Income | 9,996 | ||||||
Expenses: | |||||||
Investment advisory fees | 1,978 | ||||||
Administration fees — Fund Shares | 851 | ||||||
Administration fees — Institutional Shares | 17 | ||||||
Administration fees — Class A | 10 | ||||||
Sub-Administration fees | 11 | ||||||
| 12b-1 fees — Class A | 17 | ||||||
Custodian fees | 25 | ||||||
Transfer agent fees — Fund Shares | 223 | ||||||
Transfer agent fees — Institutional Shares | 17 | ||||||
Transfer agent fees — Class A | 7 | ||||||
Trustees' fees | 24 | ||||||
Compliance fees | 4 | ||||||
Legal and audit fees | 27 | ||||||
State registration and filing fees | 50 | ||||||
Other expenses | 89 | ||||||
Recoupment of prior expenses waived/reimbursed by Adviser | 19 | ||||||
Total Expenses | 3,369 | ||||||
Expenses waived/reimbursed by Adviser | (26 | ) | |||||
Net Expenses | 3,343 | ||||||
Net Investment Income (Loss) | 6,653 | ||||||
Realized/Unrealized Gains (Losses) from Investments: | |||||||
Net realized gains (losses) from investment securities | 188 | ||||||
Net change in unrealized appreciation/depreciation on investment securities | 1,778 | ||||||
Net realized/unrealized gains (losses) on investments | 1,966 | ||||||
Change in net assets resulting from operations | $ | 8,619 | |||||
See notes to financial statements.
20
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands)
| USAA Tax Exempt Short-Term Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
From Investments: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 6,653 | $ | 16,879 | |||||||
Net realized gains (losses) from investments | 188 | (332 | ) | ||||||||
| Net change in unrealized appreciation/depreciation on investments | 1,778 | 36,891 | |||||||||
Change in net assets resulting from operations | 8,619 | 53,438 | |||||||||
Distributions to Shareholders: | |||||||||||
Fund Shares | (6,383 | ) | (16,599 | ) | |||||||
Institutional Shares (a) | (205 | ) | (106 | ) | |||||||
Class A | (61 | ) | (181 | ) | |||||||
Change in net assets resulting from distributions to shareholders | (6,649 | ) | (16,886 | ) | |||||||
Change in net assets resulting from capital transactions | (78,178 | ) | (95,956 | ) | |||||||
Change in net assets | (76,208 | ) | (59,404 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 1,222,639 | 1,282,043 | |||||||||
End of period | $ | 1,146,431 | $ | 1,222,639 | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
(continues on next page)
See notes to financial statements.
21
USAA Mutual Funds Trust | Statements of Changes in Net Assets | ||||||
(Amounts in Thousands) (continued)
| USAA Tax Exempt Short-Term Fund | |||||||||||
| Six Months Ended September 30, 2021 (unaudited) | Year Ended March 31, 2021 | ||||||||||
Capital Transactions: | |||||||||||
Fund Shares | |||||||||||
Proceeds from shares issued | $ | 77,389 | $ | 163,202 | |||||||
Distributions reinvested | 5,555 | 13,673 | |||||||||
Cost of shares redeemed | (172,458 | ) | (303,776 | ) | |||||||
Total Fund Shares | $ | (89,514 | ) | $ | (126,901 | ) | |||||
Institutional Shares (a) | |||||||||||
Proceeds from shares issued | $ | 25,277 | $ | 30,936 | |||||||
Distributions reinvested | 117 | 52 | |||||||||
Cost of shares redeemed | (10,204 | ) | (6,031 | ) | |||||||
Total Institutional Shares | $ | 15,190 | $ | 24,957 | |||||||
Class A | |||||||||||
Proceeds from shares issued | $ | 1,744 | $ | 31,132 | |||||||
Distributions reinvested | 48 | 163 | |||||||||
Cost of shares redeemed | (5,646 | ) | (25,307 | ) | |||||||
Total Class A | $ | (3,854 | ) | $ | 5,988 | ||||||
Change in net assets resulting from capital transactions | $ | (78,178 | ) | $ | (95,956 | ) | |||||
Share Transactions: | |||||||||||
Fund Shares | |||||||||||
Issued | 7,245 | 15,479 | |||||||||
Reinvested | 520 | 1,298 | |||||||||
Redeemed | (16,154 | ) | (28,894 | ) | |||||||
Total Fund Shares | (8,389 | ) | (12,117 | ) | |||||||
Institutional Shares (a) | |||||||||||
Issued | 2,365 | 2,918 | |||||||||
Reinvested | 11 | 5 | |||||||||
Redeemed | (954 | ) | (569 | ) | |||||||
Total Institutional Shares | 1,422 | 2,354 | |||||||||
Class A | |||||||||||
Issued | 163 | 2,966 | |||||||||
Reinvested | 4 | 15 | |||||||||
Redeemed | (529 | ) | (2,403 | ) | |||||||
Total Class A | (362 | ) | 578 | ||||||||
Change in Shares | (7,329 | ) | (9,185 | ) | |||||||
(a) Institutional Shares commenced operations on June 29, 2020.
See notes to financial statements.
22
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23
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 | Total Distributions | ||||||||||||||||||||||
USAA Tax Exempt Short-Term Fund | |||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 10.63 | 0.06 | (e) | 0.02 | 0.08 | (0.06 | ) | (0.06 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 10.32 | 0.14 | (e) | 0.31 | 0.45 | (0.14 | ) | (0.14 | ) | |||||||||||||||||
2020 | $ | 10.48 | 0.19 | (e) | (0.16 | ) | 0.03 | (0.19 | ) | (0.19 | ) | ||||||||||||||||
2019 | $ | 10.41 | 0.19 | 0.07 | 0.26 | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
2018 | $ | 10.45 | 0.16 | (0.03 | ) | 0.13 | (0.17 | ) | (0.17 | ) | |||||||||||||||||
2017 | $ | 10.59 | 0.15 | (0.14 | ) | 0.01 | (0.15 | ) | (0.15 | ) | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 10.64 | 0.07 | (e) | 0.01 | 0.08 | (0.07 | ) | (0.07 | ) | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 10.50 | 0.11 | (e) | 0.14 | 0.25 | (0.11 | ) | (0.11 | ) | |||||||||||||||||
Class A | |||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 10.64 | 0.05 | (e) | 0.02 | 0.07 | (0.05 | ) | (0.05 | ) | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||
2021 | $ | 10.34 | 0.12 | (e) | 0.30 | 0.42 | (0.12 | ) | (0.12 | ) | |||||||||||||||||
2020 | $ | 10.49 | 0.16 | (e) | (0.15 | ) | 0.01 | (0.16 | ) | (0.16 | ) | ||||||||||||||||
2019 | $ | 10.42 | 0.17 | 0.06 | 0.23 | (0.16 | ) | (0.16 | ) | ||||||||||||||||||
2018 | $ | 10.46 | 0.13 | (0.03 | ) | 0.10 | (0.14 | ) | (0.14 | ) | |||||||||||||||||
2017 | $ | 10.59 | 0.12 | (0.13 | ) | (0.01 | ) | (0.12 | ) | (0.12 | ) | ||||||||||||||||
* 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.
** For the period beginning July 1, 2019, the amount of any waivers or reimbursements and the amount of any recoupment are calculated without regard to the impact of any performance adjustment to the Fund's management fee.
^ 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 period beginning July 1, 2019, and in effect through June 30, 2023, 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) Reflects total annual operating expenses for reductions of expenses paid indirectly for the March 31 fiscal year ended 2017. Expenses paid indirectly decreased the expense ratio by less than 0.01%.
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 | ||||||||||||||||||||||||||||||
| Net Asset Value, End of Period | Total Return (Excludes Sales Charge)*(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 Tax Exempt Short-Term Fund | |||||||||||||||||||||||||||||||
Fund Shares | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 10.65 | 0.76 | % | 0.57 | % | 1.13 | % | 0.57 | % | $ | 1,093,438 | 7 | % | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||
2021 | $ | 10.63 | 4.42 | % | 0.53 | % | 1.37 | % | 0.54 | % | $ | 1,181,011 | 66 | % | |||||||||||||||||
2020 | $ | 10.32 | 0.23 | % | 0.51 | % | 1.77 | % | 0.51 | % | $ | 1,271,899 | 54 | % | |||||||||||||||||
2019 | $ | 10.48 | 2.52 | % | 0.52 | % | 1.84 | % | 0.52 | % | $ | 1,489,789 | 31 | % | |||||||||||||||||
2018 | $ | 10.41 | 1.21 | % | 0.51 | % | 1.57 | % | 0.51 | % | $ | 1,550,994 | 25 | % | |||||||||||||||||
2017 | $ | 10.45 | 0.09 | % | 0.54 | % | 1.43 | % | 0.54 | % | $ | 1,669,691 | 34 | % | |||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 10.65 | 0.71 | % | 0.47 | % | 1.22 | % | 0.56 | % | $ | 40,227 | 7 | % | |||||||||||||||||
| June 29, 2020 (f) through March 31, 2021 | $ | 10.64 | 2.39 | % | 0.47 | % | 1.33 | % | 0.69 | % | $ | 25,038 | 66 | % | |||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
| Six Months Ended September 30, 2021 (Unaudited) | $ | 10.66 | 0.64 | % | 0.79 | % | 0.90 | % | 0.95 | % | $ | 12,766 | 7 | % | |||||||||||||||||
Year Ended March 31: | |||||||||||||||||||||||||||||||
2021 | $ | 10.64 | 4.07 | % | 0.76 | % | 1.12 | % | 0.88 | % | $ | 16,590 | 66 | % | |||||||||||||||||
2020 | $ | 10.34 | 0.09 | % | 0.75 | % | 1.54 | % | 0.93 | % | $ | 10,144 | 54 | % | |||||||||||||||||
2019 | $ | 10.49 | 2.27 | % | 0.77 | %(g) | 1.56 | % | 0.92 | % | $ | 10,707 | 31 | % | |||||||||||||||||
2018 | $ | 10.42 | 0.91 | % | 0.80 | % | 1.27 | % | 0.83 | % | $ | 11,349 | 25 | % | |||||||||||||||||
2017 | $ | 10.46 | (0.08 | )% | 0.80 | % | 1.16 | % | 0.81 | % | $ | 32,191 | 34 | % | |||||||||||||||||
(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.
(f) Commencement of operations.
(g) Prior to August 1, 2018, USAA Asset Management Company ("AMCO") (previous Investment Adviser) had voluntarily agreed to limit the annual expenses of Class A to 0.80% of Class A average daily net assets.
See notes to financial statements.
25
USAA Mutual Funds Trust | Notes to Financial Statements September 30, 2021 | ||||||
(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 46 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 the USAA Tax Exempt Short-Term Fund (the "Fund"). The Fund offers three classes of shares: Fund Shares, Institutional Shares, and Class A. The Fund is classified as diversified under the 1940 Act.
The Board of Trustees of USAA Mutual Funds Trust approved the addition of Class Z for the Fund. This new share class became effective February 5, 2021, but has not yet been funded. Class Z is only available to participants in certain eligible separately managed accounts (also referred to as wrap fee programs) and other advisory clients of the Fund's Adviser or its affiliates that are subject to a separate contractual fee for investment management services. The Adviser has contractually agreed to waive its management fee and/or reimburse expenses so that the total annual operating expenses (excluding acquired fund fees and expenses, interest, taxes, brokerage commissions, capitalized expenses, and other extraordinary expenses) do not exceed 0.00% of the Fund's Class Z for an indefinite term.
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)
26
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(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 risks associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the 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.
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at their amortized cost, provided that the amortized cost represents the fair value of such securities. 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, investments are valued at fair value in accordance with procedures established by and under the general supervision and responsibility of 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 net asset value ("NAV") to be more reliable than it otherwise would be.
A summary of the valuations as of September 30, 2021, 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 | $ | 53 | $ | — | $ | — | $ | 53 | |||||||||||
Municipal Bonds | — | 1,147,569 | 2,439 | 1,150,008 | |||||||||||||||
Total | $ | 53 | $ | 1,147,569 | $ | 2,439 | $ | 1,150,061 | |||||||||||
As of September 30, 2021, there were no significant Level 3 holdings in the fair value hierarchy. For the six months ended September 30, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
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 on the Schedule of Portfolio Investments.
27
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payments of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
Below-Investment-Grade Securities:
The Fund may invest in below-investment-grade securities (i.e. lower-quality, "junk" debt), which are subject to various risks. Lower-quality debt is considered to be speculative because it is less certain that the issuer will be able to pay interest or repay the principal than in the case of investment grade debt. These securities can involve a substantially greater risk of default than higher-rated securities, and their values can decline significantly over short periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about their issuers, the market and the economy in general, than higher-quality debt securities. The market for these securities can be less liquid, especially during periods of recession or general market decline.
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 or 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 discounts. Gains or losses realized on sales of securities are recorded on the identified cost basis.
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 March 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.
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 an 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, printing fees, and 12b-1 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
28
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021, 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) | |||||||||
| $ | 35,150 | $ | 40,100 | $ | — | ||||||
Fees Paid Indirectly:
Expense offsets to custody fees that arise from credits on cash balances maintained on deposit are reflected on the Statement of Operations, as applicable, as "Fees paid indirectly."
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 September 30, 2021, were as follows for the Fund (amounts in thousands):
| Excluding U.S. Government Securities | |||||||
Purchases | Sales | ||||||
$ | 66,941 | $ | 66,881 | ||||
4. Fees and Transactions with Affiliates and Related Parties:
Investment Advisory Fees:
Investment advisory services are provided to the Fund by the Adviser, which is a New York corporation registered as an investment adviser with the Securities and Exchange Commission ("SEC"). The Adviser is an indirect wholly owned 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 annualized rate of 0.28% of the Fund's average daily net assets. Amounts incurred and paid to VCM for the six months ended September 30, 2021, are reflected on the Statement of Operations as Investment Advisory fees.
On November 6, 2018, United Services Automobile Association ("USAA"), the parent company of USAA Asset Management Company ("AMCO"), the prior investment adviser to the Fund announced that AMCO would be acquired by Victory Capital Holdings Inc. (the "Transaction"). A special shareholder meeting was held on April 18, 2019, at which shareholders of the Fund approved a new investment advisory agreement between the Trust, on behalf of the Fund, and VCM. The Transaction closed on July 1, 2019, and effective July 1, 2019, VCM replaced AMCO as the investment adviser to the Fund and no performance adjustments were made for the period beginning July 1, 2019, through June 30, 2020. Only performance beginning as of July 1, 2019, and thereafter is utilized in calculating future performance adjustments.
The performance adjustment for each share class is accrued daily and calculated monthly by comparing each class' performance to that of the Lipper Short Municipal Debt Funds Index. The Lipper Short Municipal Debt Funds Index tracks the total return performance of the largest funds within the Lipper Short Municipal Debt Funds category.
29
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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) | ||||||
| +/- 20 to 50 | +/- 4 | ||||||
| +/- 51 to 100 | +/- 5 | ||||||
| +/- 101 and greater | +/- 6 | ||||||
(a) Based on the difference between the average annual performance of the relevant share class of the Fund and its relevant Lipper index, rounded to the nearest basis point.
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.
Under the performance fee arrangement, each class pays a positive performance fee adjustment for a performance period whenever the class outperforms the Lipper Short Municipal Debt Funds Index over that period, even if the class has overall negative returns during the performance period.
For the period April 1, 2021, to September 30, 2021, performance adjustments were $319, $1, and $3 for Fund Shares, Institutional Shares, and Class A, in thousands, respectively. Performance adjustments were 0.06%, less than 0.01%, and 0.04% for Fund Shares, Institutional Shares, and Class A, respectively. The performance adjustment rate included in the investment advisory fee may differ from the maximum over/under Annual Adjustment Rate due to differences in average net assets for the reporting period and rolling 36 month performance periods.
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. 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 September 30, 2021, 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 an administration and servicing fee that is accrued daily and paid monthly at an annualized rate of 0.15%, 0.10%, and 0.15%, which is based on the Fund's average daily net assets of the Fund Shares, Institutional Shares, and Class A, respectively. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Administration 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 out-of-pocket expenses incurred in providing these services and certain other expenses specifically allocated to the Fund. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Sub-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
30
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 September 30, 2021, are reflected on the Statement of Operations as Compliance fees.
Transfer Agency Fees:
Victory Capital Transfer Agency, Inc. ("VCTA"), an affiliate of the Adviser, provides transfer agency services to the Fund. VCTA provides transfer agent services to the Fund Shares based on an annual charge of $25.50 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 and Class A are paid monthly based on a fee accrued daily at an annualized rate of 0.10% and 0.10%, respectively, of average daily net assets, plus out-of-pocket expenses. Amounts incurred and paid to VCTA for the six months ended September 30, 2021, 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.
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 Class A. The distribution and service fees paid to the Distributor may be used by the Distributor to pay for activity primarily intended to result in the sale of Class A. Amounts incurred and paid to the Distributor for the six months ended September 30, 2021, are reflected on the Statement of Operations as 12b-1 fees.
In addition, the Distributor is entitled to receive commissions on sales of Class A. For the six months ended September 30, 2021, the Distributor received less than $1 thousand from commissions earned on sales of Class A.
Other Fees:
Citibank serves as the Fund's custodian. The Fund pays Citibank a fee for providing these services. Amounts incurred for the six months ended September 30, 2021, are reflected on the Statement of Operations as Custodian fees.
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, 2023. 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. Acquired fund fees and expenses, 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 September 30, 2021, the expense limits (excluding voluntary waivers) were 0.51%, 0.47%, and 0.75% for Fund Shares, Institutional Shares, and Class A, respectively.
Under the terms of the expense limitation agreement, amended May 1, 2021, the Fund has agreed to repay fees and expenses that were waived or reimbursed by the Adviser for a period of up to three years (thirty-six (36) months) after the waiver or reimbursement took place, subject to the lesser of
31
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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. Prior to May 1, 2021, the Fund was permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of September 30, 2021, the following amounts are available to be repaid to the Adviser (amounts in thousands). The Fund has not recorded any amounts available to be repaid as a liability due to an assessment that such repayment is not probable at September 30, 2021.
| Expires 2023 | Expires 2024 | Expires 2025 | Total | ||||||||||||
| $ | 10 | $ | 88 | $ | 26 | $ | 124 | ||||||||
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 September 30, 2021.
Certain officers and/or interested trustees of the Fund are also officers and/or employees of the Adviser, administrator, fund accountant, sub-administrator, sub-fund accountant, custodian, and Distributor.
5. Risks:
The Fund may be subject to other risks in addition to these identified risks.
Debt Securities 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.
Other factors that may affect the value of debt securities include, among others, public health crises and responses by governments and companies to such crises. These and other events may affect the creditworthiness of the issuer of a debt security and may impair an issuer's ability to timely meet its debt obligations as they come due.
Credit Risk — 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.
Interest Rate Risk — The Fund is subject to the risk that the market value of the bonds in its portfolio will fluctuate because of changes in interest rates, changes in the supply of and demand for tax-exempt securities, and other market factors. Bond prices generally are linked to the prevailing market interest rates. In general, when interest rates rise, bond prices fall; conversely, when interest rates fall, bond prices rise. The price volatility of a bond also depends on its duration. Generally, the longer the duration of a bond, the greater is its sensitivity to interest rates. To compensate investors for this higher interest rate risk, bonds with longer durations generally offer higher yields than bonds with shorter durations. The ability of an issuer of a debt security to repay principal prior to a security's maturity can increase the security's sensitivity to interest rate changes.
Decisions by the U.S. Federal Reserve (also known as the "Fed") regarding interest rate and monetary policy, which can be difficult to predict and sometimes change direction suddenly in response to economic and market events, can have a significant effect on the value of fixed-income securities as well as the overall strength of the U.S. economy. Precise interest rate predictions are difficult to make, and interest rates may change unexpectedly and dramatically in response to extreme changes in market
32
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
or economic conditions. As a result, the value of fixed-income securities may vary widely under certain market conditions.
LIBOR Discontinuation Risk — 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. 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. For U.S. dollar LIBOR, however, the relevant date may be deferred to June 30, 2023, for the most common tenors (overnight and one, three, six, and 12 months). As to those tenors, the LIBOR administrator has published a consultation regarding its intention to cease publication of U.S. dollar LIBOR as of June 30, 2023, (instead of December 31, 2021, as previously expected), apparently based on continued rate submissions from banks. It is expected that there will 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. Although the foregoing may provide some sense of timing, there is no assurance that LIBOR, or any particular currency and tenor, will continue to be published until any particular date, and it appears highly likely that LIBOR will be discontinued or modified after December 31, 2021, or June 30, 2023, depending on the currency and tenor. 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:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 29, 2021, with a termination date of June 27, 2022. 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, another series of the Victory Funds Complex, with Victory Floating Rate Fund paying the related commitment fees for that amount. The purpose of the Line of Credit is to meet temporary or emergency cash needs. For the six months ended September 30, 2021, 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. Prior to June 29, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each Fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each Fund during the period, if applicable, is reflected on the Statement of Operations under Line of credit fees.
The Fund had no borrowings under the Line of Credit agreement during the six months ended September 30, 2021.
33
USAA Mutual Funds Trust | Notes to Financial Statements — continued September 30, 2021 | ||||||
(Unaudited)
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 that is permitted to participate in the Facility, 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, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. 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 presented on the Statement of Operations under Interfund lending.
The Fund did not utilize or participate in the Facility during the six months ended September 30, 2021.
7. Federal Income Tax Information:
Distributions from the Fund's net investment income are accrued daily and distributed on the last business day of each month. 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 March 31, 2022.
As of the tax year ended March 31, 2021, 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 | |||||||||
| $ | 2,151 | $ | 24,270 | $ | 26,421 | ||||||
34
USAA Mutual Funds Trust | Supplemental Information September 30, 2021 | ||||||
(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) 235-8396. 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. Form N-PORT is 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 April 1, 2021, through September 30, 2021.
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 4/1/21 | Actual Ending Account Value 9/30/21 | Hypothetical Ending Account Value 9/30/21 | Actual Expenses Paid During Period 4/1/21- 9/30/21* | Hypothetical Expenses Paid During Period 4/1/21- 9/30/21* | Annualized Expense Ratio During Period 4/1/21- 9/30/21 | ||||||||||||||||||||||
Fund Shares | $ | 1,000.00 | $ | 1,007.60 | $ | 1,022.21 | $ | 2.87 | $ | 2.89 | 0.57 | % | |||||||||||||||
Institutional Shares | 1,000.00 | 1,007.10 | 1,022.71 | 2.36 | 2.38 | 0.47 | % | ||||||||||||||||||||
Class A | 1,000.00 | 1,006.40 | 1,021.11 | 3.97 | 4.00 | 0.79 | % | ||||||||||||||||||||
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 183/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
35
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 | ||||||
39592-1121
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 | November 24, 2021 |
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 | November 24, 2021 |
| By (Signature and Title)* | /s/ James K. De Vries | |
| James K. De Vries, Principal Financial Officer |
| Date | November 24, 2021 |