UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR/S
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-4019
Exact name of registrant as specified in charter: USAA INVESTMENT TRUST
Address of principal executive offices and zip code: 9800 FREDERICKSBURG ROAD
SAN ANTONIO, TX 78288
Name and address of agent for service: EILEEN M. SMILEY
USAA INVESTMENT TRUST
9800 FREDERICKSBURG ROAD
SAN ANTONIO, TX 78288
Registrant's telephone number, including area code: (210) 498-4103
Date of fiscal year end: MAY 31
Date of reporting period: NOVEMBER 30, 2005
ITEM 1. REPORT TO STOCKHOLDERS.
USAA PRECIOUS METALS AND MINERALS FUND - SEMIANNUAL REPORT FOR PERIOD ENDING
NOVEMBER 30, 2005
[LOGO OF USAA]
USAA(R)
USAA PRECIOUS METALS
and MINERALS Fund
[GRAPHIC OF USAA PRECIOUS METALS AND MINERALS FUND]
S e m i a n n u a l R e p o r t
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NOVEMBER 30, 2005
Table of CONTENTS
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MESSAGE FROM THE PRESIDENT 2
MANAGER'S COMMENTARY 4
FUND RECOGNITION 6
INVESTMENT OVERVIEW 7
FINANCIAL INFORMATION
Portfolio of Investments 11
Notes to Portfolio of Investments 14
Financial Statements 16
Notes to Financial Statements 19
EXPENSE EXAMPLE 31
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
USAA INVESTMENT MANAGEMENT COMPANY. IT MAY BE USED AS SALES LITERATURE ONLY WHEN
PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS, WHICH PROVIDES FURTHER DETAILS
ABOUT THE FUND.
(C)2006, USAA. All rights reserved.
2
M E S S A G E
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from the PRESIDENT
"
WE WILL CONTINUE TO LOOK FOR VALUE
[PHOTO OF CHRISTOPHER W. CLAUS] IN OUR INVESTMENTS, EXAMINE THE RISKS,
AND MAINTAIN OUR INVESTMENT DISCIPLINE.
"
December 2005
- --------------------------------------------------------------------------------
As I write to you during the final weeks of 2005, I am watching
some interesting dynamics that could affect all of us in the
new year.
In 2006, we expect the Federal Reserve Board (the Fed) to stop
tightening short-term interest rates. After raising rates to
4.25% in December 2005, Fed governors, we believe, are likely
to hike rates at least one more time on January 31, 2006. If
the Fed keeps tightening, there is the possibility that
short-term interest rates could eventually be higher than
long-term rates, resulting in what is called an inverted yield
curve. In some cases, an inverted yield curve has been the
precursor of an economic downturn.
For the moment, however, the U.S. economy appears to be on
solid footing, with estimates for gross domestic product (GDP)
growth of about 3% for 2006. While the country is not
experiencing an economic boom, we can expect moderate growth in
the months ahead, which should translate into gains in
corporate earnings in the mid-single digits. Whether earnings
will be robust enough to support current stock market
valuations, however, remains uncertain. Beyond our shores,
international stocks outperformed U.S. equities during 2005. We
believe we could see a repeat of this in 2006.
In the gold market, prices have continued to rise, fueled by
high oil prices, strong investor demand, and an increase in
consumer purchases of jewelry. We expect these conditions to
persist during 2006.
I believe the housing market is at or near the peak in the
number of units sold. Inventory has grown, mortgage rates are
inching
3
. . . C O N T I N U E D
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upward, and some institutions have tightened their lending
standards. If housing prices fall, the first to feel the pain
could be investors who are "flipping" properties using
interest-only or adjustable-rate mortgages (ARMs). The dramatic
increase in short-term rates would be particularly painful for
housing investors also, especially those with ARMs and
interest-only mortgages.
Among the biggest stories of 2005 was the resiliency of
long-term interest rates. Instead of spiking higher, they were
range bound most of the year. In 2006, both short- and
long-term rates will continue to be a key market indicator. If
rates rise, bond prices will fall - hurting the bond market.
Going forward, two factors will have great influence on
long-term rates. One is inflation, which appears to be under
control at present. The second is the purchase of U.S. debt by
foreign investors, which helps us support our budget deficit.
With interest rates in other countries significantly lower, it
seems likely that foreign demand will remain strong, buoying
U.S. bonds. We believe that long-term rates will not spike
dramatically but continue to drift upward in a manageable
fashion.
In this environment, our central concern is that we are paid
for the risk we take in all our portfolios. It makes sense to
be cautious; there is some risk in the market, but risk
premiums are very low.
We will continue to look for value in our investments, examine
the risks, and maintain our investment discipline. From all of
us at USAA Investment Management Company, thank you for your
business and the opportunity to serve your investment needs.
Sincerely,
/S/ CHRISTOPHER W. CLAUS
Christopher W. Claus
President and Vice Chairman of the Board
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
4
M A N A G E R ' S
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COMMENTARY on the Fund
[PHOTO OF MARK JOHNSON] MARK JOHNSON, CFA
USAA Investment Management Company
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HOW DID THE FUND PERFORM?
The USAA Precious Metals and Minerals Fund had a total return
of 37.87% for the six months ended November 30, 2005. This
compares to a 34.17% return for the Lipper Gold Oriented Funds
Average, 35.46% for the Lipper Gold Funds Index, 33.59% for the
Philadelphia Gold & Silver Index (XAU), and 5.88% for the S&P
500 Index.
WHAT HAPPENED IN THE GOLD MARKET DURING THE PERIOD?
The price of an ounce of gold jumped from $417.25 on May 31,
2005, to $493.08 on November 30, 2005, an increase of 18.17%.
In our last annual report, we discussed how the unexpected
rally in the U.S. dollar earlier in 2005 had caused the price
of gold to fall, given that gold prices and the dollar have
traditionally moved in opposite directions. Since the defeat of
the European constitution in May 2005, however, we've seen a
sea change in the gold market that has allowed the price of
gold to break from the dollar and continue rising. Gold is
still acting like a currency, but instead of trading against
just one -- the dollar -- it has started to trade against all
of them.
Several other factors combined to help drive gold prices
higher. First, high oil prices raised the specter of inflation,
leading to greater investment demand. Second, buying out of
Asia, India, and the Middle East of both jewelry and bars is
up, reflecting the strong economies of those regions.
REFER TO PAGE 9 FOR BENCHMARK DEFINITIONS.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
5
. . . C O N T I N U E D
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HOW DID THE FUND OUTPERFORM THE LIPPER GOLD ORIENTED FUNDS AVERAGE?
Our core gold position did quite well, and we also benefited
from an above-average weighting in platinum stocks.
WHAT'S YOUR OUTLOOK?
The price of gold moved above $500 in early December 2005, so
we are a bit cautious on the short-term outlook. A big reason
for our caution is the very high level of net long positions on
the Comex, which points to an overbought market.
Longer term, we are fairly bullish. The U.S. dollar, still the
world's most important currency, needs to decline further. We
have yet to address, as Federal Reserve Board (the Fed)
Chairman Alan Greenspan recently put it, our "pernicious drift
toward fiscal instability." We expect continued accumulation of
wealth in oil-producing countries, and the supply/demand
picture remains solid. Additionally, if the Fed stops raising
rates early next year, it should be positive for gold prices,
especially if inflation rates do not abate.
Of course, it's very difficult to predict how gold or any
volatile market will do over the short term. We focus on trying
to find the best companies and giving our shareholders exposure
to the benefits of precious metals and minerals. It's this
exposure itself that is the biggest benefit of the Fund;
because the Fund is typically inversely correlated to other
USAA funds, a small holding should noticeably reduce your
overall portfolio volatility.
On behalf of everyone at USAA, we thank you for your investment
in the Fund.
FOREIGN AND PRECIOUS METALS AND MINERALS INVESTING ARE SUBJECT
TO ADDITIONAL RISKS, SUCH AS CURRENCY FLUCTUATIONS, MARKET
ILLIQUIDITY, AND POLITICAL INSTABILITY.
THE COMMODITY EXCHANGE, OR COMEX, IS A LEADING U.S. EXCHANGE
FOR METALS FUTURES AND OPTIONS TRADING.
6
F U N D
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RECOGNITION
USAA PRECIOUS METALS AND MINERALS FUND
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OVERALL MORNINGSTAR RATING(TM)
out of 52 specialty - precious metals funds for the period ending
November 30, 2005:
OVERALL RATING
* * * *
3-YEAR 5-YEAR 10-YEAR
* * * * * * * * * * * *
out of 52 funds out of 41 funds out of 30 funds
The Overall Morningstar Rating for a fund is derived from a weighted
average of the performance figures associated with its three-,
five-, and 10-year (if applicable) Morningstar Ratings metrics.
Ratings are based on risk-adjusted returns.
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[LOGO OF LIPPER LEADER [LOGO OF LIPPER LEADER
TOTAL RETURN] CONSISTENT RETURN]
The Fund is listed as a Lipper Leader for Total Return and Consistent Return
among 43 funds within the Lipper Gold Oriented Funds category for the overall
period ending November 30, 2005. The Fund received a Lipper Leader rating for
Total Return among 34 and 22 funds for the five- and 10-year periods,
respectively, and a score of 2 among 43 funds for the three-year period. Lipper
ratings for Total Return reflect funds' historical total return performance
relative to peers as of November 30, 2005.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. FOR EACH FUND WITH AT LEAST
A THREE-YEAR HISTORY, MORNINGSTAR CALCULATES A MORNINGSTAR RATING(TM) BASED ON A
MORNINGSTAR RISK-ADJUSTED RETURN MEASURE THAT ACCOUNTS FOR VARIATION IN A FUND'S
MONTHLY PERFORMANCE (INCLUDING THE EFFECTS OF SALES CHARGES, LOADS, AND
REDEMPTION FEES), PLACING MORE EMPHASIS ON DOWNWARD VARIATIONS AND REWARDING
CONSISTENT PERFORMANCE. THE TOP 10% OF THE FUNDS IN EACH BROAD ASSET CLASS
RECEIVE 5 STARS, THE NEXT 22.5% RECEIVE 4 STARS, THE NEXT 35% RECEIVE 3 STARS,
THE NEXT 22.5% RECEIVE 2 STARS, AND THE BOTTOM 10% RECEIVE 1 STAR. (EACH SHARE
CLASS IS COUNTED AS A FRACTION OF ONE FUND WITHIN THIS SCALE AND RATED
SEPARATELY, WHICH MAY CAUSE SLIGHT VARIATIONS IN THE DISTRIBUTION PERCENTAGES.)
LIPPER RATINGS FOR CONSISTENT RETURN REFLECT FUNDS' HISTORICAL RISK-ADJUSTED
RETURNS, ADJUSTED FOR VOLATILITY, RELATIVE TO PEERS, AS OF NOVEMBER 30, 2005.
THE FUND RECEIVED A LIPPER LEADER RATING FOR CONSISTENT RETURN AMONG 43, 34, AND
19 FUNDS FOR THE THREE-, FIVE-, AND 10-YEAR PERIODS, RESPECTIVELY. RATINGS ARE
SUBJECT TO CHANGE EVERY MONTH AND ARE BASED ON AN EQUAL-WEIGHTED AVERAGE OF
PERCENTILE RANKS FOR THE TOTAL RETURN AND CONSISTENT RETURN METRICS OVER THREE-,
FIVE-, AND 10-YEAR PERIODS (IF APPLICABLE). THE HIGHEST 20% OF FUNDS IN EACH
PEER GROUP ARE NAMED LIPPER LEADERS, THE NEXT 20% RECEIVE A SCORE OF 2, THE
MIDDLE 20% ARE SCORED 3, THE NEXT 20% ARE SCORED 4, AND THE LOWEST 20% ARE
SCORED 5. LIPPER RATINGS ARE NOT INTENDED TO PREDICT FUTURE RESULTS, AND LIPPER
DOES NOT GUARANTEE THE ACCURACY OF THIS INFORMATION. MORE INFORMATION IS
AVAILABLE AT WWW.LIPPERLEADERS.COM. LIPPER LEADER COPYRIGHT 2006, REUTERS, ALL
RIGHTS RESERVED.
7
I N V E S T M E N T
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OVERVIEW
USAA PRECIOUS METALS AND MINERALS FUND
OBJECTIVE
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Long-term capital appreciation and to protect the purchasing
power of shareholders' capital against inflation; secondary
objective of current income.
TYPES OF INVESTMENTS
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Normally invests at least 80% of the Fund's assets in equity
securities of domestic and foreign companies principally
engaged in the exploration, mining, or processing of gold and
other precious metals and minerals.
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11/30/05 5/31/05
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Net Assets $352.6 Million $275.8 Million
Net Asset Value Per Share $18.76 $13.60
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AVERAGE ANNUAL TOTAL RETURNS AS OF 11/30/05
- --------------------------------------------------------------------------------
5/31/05 TO 11/30/05* 1 YEAR 5 YEARS 10 YEARS
37.87% 15.06% 35.16% 9.11%
*TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THIS
SIX-MONTH RETURN IS CUMULATIVE.
The performance data quoted represents past performance and is
no guarantee of future results. Current performance may be
higher or lower than the performance data quoted. The return
and principal value of an investment will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less
than their original cost. For performance data current to the
most recent month-end, visit usaa.com.
TOTAL RETURN MEASURES THE PRICE CHANGE IN A SHARE ASSUMING THE
REINVESTMENT OF ALL NET INVESTMENT INCOME DIVIDEND AND REALIZED
CAPITAL GAIN DISTRIBUTIONS. THE TOTAL RETURNS QUOTED DO NOT
REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
8
. . . C O N T I N U E D
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OVERVIEW
CUMULATIVE PERFORMANCE COMPARISON
[CHART OF CUMULATIVE PERFORMANCE COMPARISON]
USAA PRECIOUS LIPPER GOLD PHILADELPHIA
METALS AND ORIENTED FUNDS LIPPER GOLD GOLD & SILVER
S&P 500 INDEX MINERALS FUND AVERAGE FUNDS INDEX LONDON GOLD INDEX (XAU)
------------- ------------- -------------- ----------- ----------- -------------
11/30/95 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
12/31/95 10,192.63 10,225.79 10,156.07 10,186.46 9,979.37 9,944.77
01/31/96 10,539.13 12,264.08 11,922.09 12,131.11 10,457.71 11,649.29
02/29/96 10,637.18 12,424.39 12,534.60 12,396.12 10,331.36 11,907.15
03/31/96 10,739.59 12,344.24 12,707.12 12,436.37 10,220.47 11,895.37
04/30/96 10,897.78 12,286.98 13,087.92 12,698.04 10,090.25 11,864.40
05/31/96 11,178.35 12,733.57 13,924.89 13,502.11 10,070.91 12,339.75
06/30/96 11,220.97 11,061.72 12,007.98 11,587.73 9,850.44 10,258.89
07/31/96 10,725.50 10,786.89 11,710.23 11,347.83 9,935.53 10,313.76
08/31/96 10,952.08 11,222.03 12,469.23 11,979.18 9,965.19 10,339.89
09/30/96 11,567.94 10,500.62 11,922.44 11,357.34 9,773.08 9,562.01
10/31/96 11,886.87 10,420.46 11,755.91 11,242.97 9,785.97 9,599.36
11/30/96 12,784.59 10,271.59 11,449.66 10,872.54 9,574.52 9,998.49
12/31/96 12,531.33 10,225.79 11,336.14 10,666.94 9,521.66 9,718.13
01/31/97 13,313.81 9,676.14 10,718.66 10,059.80 8,909.23 9,174.82
02/28/97 13,418.33 10,867.05 12,006.18 11,339.25 9,247.03 10,203.05
03/31/97 12,868.02 9,344.06 10,354.96 9,750.79 8,977.57 8,681.06
04/30/97 13,635.54 8,771.51 9,639.83 9,082.63 8,771.27 7,828.11
05/31/97 14,469.19 9,263.90 10,069.60 9,429.80 8,911.81 8,716.20
06/30/97 15,112.43 8,599.74 9,241.37 8,591.74 8,626.87 7,994.67
07/31/97 16,314.61 8,233.31 8,894.13 8,253.93 8,415.42 8,196.75
08/31/97 15,401.32 8,405.07 8,941.13 8,289.83 8,389.63 8,283.16
09/30/97 16,244.32 8,908.92 9,389.69 8,684.42 8,563.69 9,173.73
10/31/97 15,702.41 7,569.15 7,891.75 7,259.01 8,029.91 7,367.42
11/30/97 16,428.71 6,011.80 6,323.74 5,721.81 7,653.43 5,951.92
12/31/97 16,710.65 6,320.98 6,546.78 5,979.81 7,483.24 6,236.70
01/31/98 16,895.30 6,721.77 6,884.52 6,326.38 7,861.01 6,302.27
02/28/98 18,113.16 6,595.81 6,743.30 6,133.82 7,668.90 6,346.60
03/31/98 19,039.96 7,111.10 7,137.63 6,489.32 7,761.73 6,873.66
04/30/98 19,234.93 7,775.27 7,646.83 6,942.00 8,011.86 7,402.87
05/31/98 18,904.77 6,721.77 6,560.03 5,915.85 7,570.91 6,299.03
06/30/98 19,672.11 6,114.86 5,962.48 5,292.36 7,640.54 6,048.22
07/31/98 19,464.20 5,645.37 5,605.79 4,972.36 7,448.43 5,309.92
08/31/98 16,652.08 4,225.44 4,328.91 3,820.56 7,050.03 4,130.96
09/30/98 17,719.75 6,424.04 6,207.01 5,504.50 7,577.36 6,336.27
10/31/98 19,158.87 6,492.75 6,171.58 5,422.97 7,537.39 6,375.42
11/30/98 20,319.57 6,355.33 6,002.47 5,241.57 7,599.28 6,009.98
12/31/98 21,489.72 6,389.69 5,892.67 5,214.13 7,421.35 5,504.01
01/31/99 22,388.01 6,286.63 5,792.95 5,093.49 7,359.46 5,359.15
02/28/99 21,692.32 6,091.96 5,620.53 4,966.92 7,402.01 5,131.98
03/31/99 22,559.97 6,126.31 5,672.32 4,991.38 7,206.03 5,071.91
04/30/99 23,433.59 7,042.40 6,477.81 5,709.48 7,390.41 6,238.94
05/31/99 22,880.85 6,103.41 5,605.66 4,888.68 6,926.25 5,185.31
06/30/99 24,147.21 6,378.24 5,842.11 5,088.54 6,730.27 5,701.54
07/31/99 23,396.51 5,920.19 5,502.81 4,829.59 6,591.03 5,355.68
08/31/99 23,280.68 6,080.51 5,719.54 5,004.44 6,570.40 5,796.64
09/30/99 22,643.25 7,592.05 6,949.98 6,110.76 7,710.16 6,908.79
10/31/99 24,075.52 6,962.24 6,238.32 5,507.13 7,712.74 5,988.33
11/30/99 24,564.89 6,675.96 6,110.63 5,356.02 7,512.89 5,782.15
12/31/99 26,009.70 6,847.73 6,248.09 5,443.25 7,484.53 5,862.36
01/31/00 24,703.06 6,160.67 5,640.12 4,904.97 7,305.31 5,173.24
02/29/00 24,235.93 6,206.47 5,613.51 4,897.42 7,572.20 5,192.07
03/31/00 26,605.37 5,862.94 5,330.61 4,625.26 7,136.41 4,913.67
04/30/00 25,805.21 5,507.96 4,995.13 4,377.26 7,092.57 4,761.47
05/31/00 25,276.21 5,576.66 5,069.67 4,433.88 7,020.37 4,914.22
06/30/00 25,898.72 6,000.35 5,333.74 4,681.81 7,430.38 5,048.96
07/31/00 25,494.17 5,565.21 4,937.50 4,356.91 7,136.41 4,441.12
08/31/00 27,076.84 5,966.00 5,336.85 4,644.54 7,142.86 4,602.53
09/30/00 25,647.72 5,530.86 4,995.30 4,329.51 7,056.47 4,390.71
10/31/00 25,538.76 5,004.11 4,559.36 3,944.61 6,820.53 3,858.60
11/30/00 23,526.93 5,301.84 4,802.54 4,115.71 6,939.14 4,158.48
12/31/00 23,642.35 5,822.17 5,230.44 4,499.20 7,077.10 4,541.93
01/31/01 24,480.65 5,741.62 5,247.75 4,493.42 6,820.53 4,316.65
02/28/01 22,249.90 5,994.76 5,477.59 4,677.85 6,877.26 4,665.69
03/31/01 20,841.15 5,499.99 4,974.45 4,250.92 6,645.18 4,228.09
04/30/01 22,459.43 6,397.48 5,707.94 4,880.35 6,785.71 4,900.04
05/31/01 22,610.10 6,719.65 5,964.16 5,105.12 6,897.89 5,088.20
06/30/01 22,060.00 6,949.78 5,950.36 5,138.74 6,977.82 4,743.76
07/31/01 21,842.75 6,558.57 5,618.57 4,865.27 6,856.63 4,726.83
08/31/01 20,476.73 6,995.80 5,911.45 5,142.04 7,039.71 5,059.93
09/30/01 18,823.32 7,306.47 6,067.84 5,310.11 7,558.02 5,171.12
10/31/01 19,182.47 7,156.89 5,914.59 5,199.21 7,187.98 4,880.69
11/30/01 20,653.52 7,214.42 5,908.76 5,200.91 7,104.18 4,716.30
12/31/01 20,834.56 7,625.19 6,213.17 5,454.89 7,129.96 4,885.11
01/31/02 20,530.69 8,633.39 6,917.73 6,072.02 7,279.53 5,504.39
02/28/02 20,134.66 9,606.82 7,647.44 6,685.28 7,654.72 5,868.89
03/31/02 20,892.00 10,591.83 8,386.88 7,331.62 7,772.05 6,388.59
04/30/02 19,625.92 11,229.20 8,910.65 7,771.69 7,947.40 6,665.26
05/31/02 19,481.84 13,570.06 10,648.52 9,212.21 8,421.87 7,611.33
06/30/02 18,094.63 11,727.50 9,278.27 8,085.38 8,213.00 6,459.28
07/31/02 16,684.49 9,734.29 7,641.60 6,702.70 7,855.85 5,472.24
08/31/02 16,793.72 11,449.38 8,877.11 7,784.02 8,066.01 6,326.09
09/30/02 14,970.40 11,472.55 8,932.53 7,847.06 8,347.09 6,352.39
10/31/02 16,286.59 10,533.89 8,157.00 7,193.19 8,171.74 5,778.54
11/30/02 17,244.27 10,580.24 8,230.33 7,205.42 8,227.18 5,773.07
12/31/02 16,231.72 12,780.54 10,050.75 8,768.02 8,953.07 7,002.77
01/31/03 15,807.33 13,129.54 10,189.63 8,852.58 9,476.53 7,024.67
02/28/03 15,569.80 12,106.61 9,568.12 8,314.70 8,959.52 6,610.07
03/31/03 15,720.55 11,444.72 8,860.98 7,702.55 8,634.61 6,149.82
04/30/03 17,014.85 11,480.82 8,808.52 7,680.16 8,683.60 6,003.42
05/31/03 17,910.46 12,876.82 9,798.16 8,559.40 9,319.24 6,762.62
06/30/03 18,139.25 13,394.29 10,104.87 8,813.38 8,922.12 7,242.67
07/31/03 18,459.22 14,369.08 10,637.36 9,303.21 9,147.76 7,471.96
08/31/03 18,818.51 16,583.41 12,141.69 10,636.25 9,685.40 8,411.72
09/30/03 18,619.25 17,377.68 12,549.70 11,015.06 10,005.16 8,427.80
10/31/03 19,672.00 19,820.67 14,159.29 12,326.55 9,960.03 9,074.50
11/30/03 19,844.88 22,540.44 15,930.36 13,364.28 10,272.05 10,153.62
12/31/03 20,884.91 21,909.46 15,675.26 13,534.48 10,733.63 10,080.85
01/31/04 21,268.17 19,686.95 14,164.12 12,268.20 10,308.15 8,860.47
02/29/04 21,563.69 19,952.14 14,617.65 12,506.81 10,207.58 9,269.09
03/31/04 21,238.41 21,303.32 15,446.70 13,255.06 10,925.73 9,755.38
04/30/04 20,905.45 16,946.69 12,128.18 10,492.75 10,018.05 7,621.29
05/31/04 21,191.76 18,335.76 13,026.65 11,282.92 10,140.54 8,365.30
06/30/04 21,603.71 17,767.50 12,654.53 10,934.38 10,206.29 8,037.80
07/31/04 20,888.78 17,161.36 12,359.39 10,736.50 10,092.83 8,106.00
08/31/04 20,972.48 18,222.11 13,141.19 11,438.22 10,501.55 8,849.66
09/30/04 21,199.68 19,497.53 14,405.62 12,501.75 10,718.15 9,524.61
10/31/04 21,523.55 19,939.51 14,632.82 12,749.38 10,973.44 9,667.72
11/30/04 22,394.15 20,785.58 15,343.82 13,438.43 11,691.59 9,992.46
12/31/04 23,155.96 19,553.92 14,466.28 12,700.73 11,232.59 9,305.27
01/31/05 22,591.54 18,482.47 13,654.14 12,035.60 10,885.77 8,566.48
02/28/05 23,066.70 19,745.25 14,698.41 12,972.48 11,228.73 9,289.31
03/31/05 22,658.66 18,852.38 13,973.64 12,291.33 11,023.72 8,816.53
04/30/05 22,229.13 17,092.14 12,602.31 11,119.04 11,235.17 7,860.82
05/31/05 22,935.81 17,347.25 12,760.50 11,275.79 10,687.21 8,133.18
06/30/05 22,968.67 19,120.24 13,866.52 12,219.24 11,271.27 8,768.93
07/31/05 23,822.47 18,941.67 13,752.62 12,223.29 11,062.40 8,562.55
08/31/05 23,605.23 20,102.40 14,442.65 12,789.51 11,172.00 9,049.73
09/30/05 23,796.32 23,150.92 16,720.40 14,825.00 12,203.46 10,686.41
10/31/05 23,399.41 21,594.77 15,634.40 13,864.53 12,138.99 10,073.20
11/30/05 24,283.54 23,916.24 17,137.51 15,273.72 12,781.07 10,865.08
[END CHART]
DATA FROM 11/30/95 THROUGH 11/30/05.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS, AND THE
CUMULATIVE PERFORMANCE QUOTED DOES NOT REFLECT THE DEDUCTION OF
TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE
REDEMPTION OF FUND SHARES.
9
. . . C O N T I N U E D
========================--------------------------------------------------------
The graph illustrates the comparison of a $10,000 hypothetical
investment in the USAA Precious Metals and Minerals Fund to the
following benchmarks:
o The S&P 500 Index is an unmanaged index representing the
weighted average performance of a group of 500 widely held,
publicly traded stocks. It is not possible to invest directly
in the S&P 500 Index.
o The Lipper Gold Oriented Funds Average is an average
performance level of all gold-oriented funds, reported by
Lipper Inc., an independent organization that monitors the
performance of mutual funds.
o The Lipper Gold Funds Index tracks the total return
performance of the 10 largest funds within the Lipper Gold
Oriented Funds category.
o London Gold represents the performance of gold bullion by
tracking the price of gold set in London.
o The Philadelphia Gold & Silver Index, typically referred to
as the XAU, represents 12 holdings in the gold and silver
sector.
10
. . . C O N T I N U E D
========================--------------------------------------------------------
OVERVIEW
- ---------------------------------------------------
TOP 10 EQUITY HOLDINGS
(% of Net Assets)
- ---------------------------------------------------
Impala Platinum Holdings Ltd. 7.4%
Goldcorp, Inc. 7.2%
Glamis Gold Ltd. 6.3%
Newcrest Mining Ltd. 6.2%
Anglo American Platinum Corp. 5.6%
Newmont Mining Corp. 5.0%
Meridian Gold, Inc. 4.4%
Randgold Resources Ltd. ADR 4.2%
Aber Diamond Corp. 4.1%
Agnico-Eagle Mines Ltd. 4.1%
- ---------------------------------------------------
ASSET ALLOCATION
11/30/05
[PIE CHART OF ASSET ALLOCATION]
Gold 74.4%
Platinum Group Metals 15.6%
Diamonds 4.1%
Other* 16.5%
[END CHART]
*INCLUDES 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%.
YOU WILL FIND A COMPLETE LIST OF SECURITIES THAT THE FUND OWNS
ON PAGES 11-13.
FOREIGN AND PRECIOUS METALS AND MINERALS INVESTING IS SUBJECT
TO ADDITIONAL RISKS, SUCH AS CURRENCY FLUCTUATIONS, MARKET
ILLIQUIDITY, AND POLITICAL INSTABILITY.
11
P O R T F O L I O
==================--------------------------------------------------------------
of INVESTMENTS
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
MARKET
NUMBER VALUE
OF SHARES SECURITY (000)
- --------------------------------------------------------------------------------------------------------
EQUITY SECURITIES (94.1%)
STOCKS (94.0%)
--------------
GOLD (74.3%)
AUSTRALIAN GOLD COMPANIES (12.7%)
5,000,000 Ballarat Goldfields NL*(b) $ 1,243
6,000,000 Lihir Gold Ltd.*(b) 9,531
1,400,000 Newcrest Mining Ltd.(b) 21,810
8,000,000 Oxiana Ltd.*(b,c) 8,133
2,000,000 Sino Gold Ltd.*(b) 4,125
--------
44,842
--------
EUROPEAN GOLD COMPANIES (4.2%)
950,000 Randgold Resources Ltd. ADR* 14,953
--------
NORTH AMERICAN GOLD COMPANIES (53.4%)
1,000,000 Agnico-Eagle Mines Ltd. 14,630
750,000 American Bonanza Gold Corp.* 299
1,400,000 Aurizon Mines Ltd.* 1,560
400,000 Barrick Gold Corp.(c) 10,644
4,000,000 Cambior, Inc.* 8,880
1,700,000 Desert Sun Mining Corp.* 3,351
3,000,000 Eldorado Gold Corp.* 12,009
200,000 Freeport-McMoRan Copper & Gold, Inc. "B" 10,422
150,000 Gabriel Resources Ltd.* 303
900,000 Gammon Lake Resources, Inc.* 8,062
1,000,000 Glamis Gold Ltd.*(c) 22,290
1,200,000 Glencairn Gold Corp.* 427
1,250,000 Goldcorp, Inc.(c) 25,400
1,100,000 Hecla Mining Co.* 3,894
800,000 Meridian Gold, Inc.* 15,392
450,000 Metallic Ventures Gold, Inc.* 675
500,000 Mexgold Resources, Inc.*(c) 1,564
325,000 Minefinders Corp. Ltd.* 1,664
380,000 Newmont Mining Corp. 17,526
430,000 Placer Dome, Inc. 9,434
300,000 Royal Gold, Inc.(c) 7,806
900,000 Wolfden Resources, Inc.* 2,623
2,000,000 Yamana Gold, Inc.* 9,446
--------
188,301
--------
12
P O R T F O L I O
==================--------------------------------------------------------------
of INVESTMENTS
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
MARKET
NUMBER VALUE
OF SHARES SECURITY (000)
- --------------------------------------------------------------------------------------------------------
SOUTH AMERICAN GOLD COMPANIES (4.0%)
500,000 Compania de Minas Buenaventura S.A. ADR $ 14,010
--------
Total gold (cost: $144,888) 262,106
--------
DIAMONDS (4.1%)
400,000 Aber Diamond Corp. (cost: $6,635) 14,315
--------
PLATINUM GROUP METALS (15.6%)
300,000 Anglo American Platinum Corp. 19,870
200,000 Impala Platinum Holdings Ltd. 26,182
320,000 Lonmin, plc 8,981
--------
Total platinum group metals (cost: $28,669) 55,033
--------
Total stocks (cost: $180,192) 331,454
--------
WARRANTS (0.1%)
---------------
NORTH AMERICAN GOLD COMPANIES
1,500,000 American Bonanza Gold Corp. (acquired 11/10/2003; cost $0)*(a,b) -
38,500 Desert Sun Mining Corp.* 24
1,350,000 Glencairn Gold Corp.* 127
60,000 Metallic Ventures Gold, Inc.* 7
332,500 Mexgold Resources, Inc. (acquired 2/18/2004; cost $199)*(a,b) 328
--------
Total warrants (cost: $466) 486
--------
Total equity securities (cost: $180,658) 331,940
--------
PRINCIPAL
AMOUNT
(000)
- ----------
MONEY MARKET INSTRUMENTS (6.6%)
COMMERCIAL PAPER
$12,918 Countrywide Financial Corp., 4.07%, 12/05/2005 12,912
10,269 Gotham Funding Corp., 4.05%, 12/01/2005(f,g) 10,269
--------
Total money market instruments (cost: $23,181) 23,181
--------
13
P O R T F O L I O
==================--------------------------------------------------------------
of INVESTMENTS
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
(000) SECURITY (000)
- --------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS PURCHASED WITH CASH
COLLATERAL FROM SECURITIES LOANED (9.9%)
REPURCHASE AGREEMENTS (9.7%)(e)
$14,500 CS First Boston, LLC, 4.02%, acquired on 11/30/2005 and due
12/01/2005 at $14,500 (collateralized by $14,670 of Federal Home
Loan Bank Bonds(h), 4.88%, due 8/16/2010; market value $14,794) $ 14,500
5,000 Deutsche Bank Securities, Inc., 4.00%, acquired on 11/30/2005
and due 12/01/2005 at $5,000 (collateralized by $2,304 of
Freddie Mac Notes(h), 3.05%, due 12/29/2006, and $2,847 of
Fannie Mae Notes(h), 6.00%, due 8/14/2023; combined market
value $5,100) 5,000
14,500 Lehman Brothers, Inc., 3.99%, acquired on 11/30/2005 and due
12/01/2005 at $14,500 (collateralized by $15,320 of Federal Home
Loan Bank Bonds(h), 3.50%, due 11/28/2008; market value $14,793) 14,500
--------
34,000
--------
NUMBER
OF SHARES
- ----------
MONEY MARKET FUNDS (0.2%)
804,888 AIM Short-Term Investment Co. Liquid Assets Portfolio, 4.00%(d) 805
12,162 Merrill Lynch Premier Institutional Fund, 3.91%(d) 12
--------
817
--------
Total short-term investments purchased with cash collateral
from securities loaned (cost: $34,817) 34,817
--------
TOTAL INVESTMENTS (COST: $238,656) $389,938
========
14
N O T E S
==========----------------------------------------------------------------------
to Portfolio of INVESTMENTS
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
GENERAL NOTES
- --------------------------------------------------------------------------------
Market values of securities are determined by procedures and practices
discussed in Note 1 to the financial statements.
The portfolio of investments category percentages shown represent the
percentages of the investments to net assets and, in total, may not
equal 100%.
ADR - American depositary receipts are receipts issued by a U.S. bank
evidencing ownership of foreign shares. Dividends are paid in U.S.
dollars.
SPECIFIC NOTES
- --------------------------------------------------------------------------------
(a) Security that has been deemed illiquid by USAA Investment
Management Company (the Manager), under liquidity guidelines
approved by the Board of Trustees. The aggregate market value of
these securities at November 30, 2005, was $328,000, which
represented 0.09% of the Fund's net assets.
(b) Security was fair valued at November 30, 2005, by the Manager in
accordance with valuation procedures approved by the Board of
Trustees.
(c) The security or a portion thereof was out on loan as of November
30, 2005.
(d) Rate represents the money market fund annualized seven-day yield
at November 30, 2005.
(e) Collateral on repurchase agreements is received by the Fund upon
entering into the repurchase agreement. The collateral is marked-
to-market daily to ensure its market value is equal to or in
excess of the repurchase agreement price plus accrued interest.
15
N O T E S
==========----------------------------------------------------------------------
to Portfolio of INVESTMENTS
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
(f) Commercial paper issued in reliance on the "private placement"
exemption from registration afforded by Section 4(2) of the
Securities Act of 1933. Unless this commercial paper is
subsequently registered, a resale of this commercial paper in the
United States must be effected in a transaction exempt from
registration under the Securities Act of 1933. Section 4(2)
commercial paper is normally resold to other investors through or
with the assistance of the issuer or an investment dealer who
makes a market in this security, and as such has been deemed
liquid by the Manager under liquidity guidelines approved by the
Trust's Board of Trustees, unless otherwise noted as illiquid.
(g) Restricted security that is not registered under the Securities
Act of 1933. A resale of this security in the United States may
occur in an exempt transaction to a qualified institutional buyer
as defined by Rule 144A, and as such has been deemed liquid by the
Manager under liquidity guidelines approved by the Trust's Board
of Trustees, unless otherwise noted as illiquid.
(h) U.S. government agency issues. Securities issued by government-
sponsored enterprises (GSEs) are supported only by the credit of
the issuing agency, instrumentality, or corporation, and are
neither issued nor guaranteed by the U.S. government.
* Non-income-producing security for the 12 months preceding November
30, 2005.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
S T A T E M E N T
==================--------------------------------------------------------------
of ASSETS and LIABILITIES
(in thousands)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
ASSETS
Investments in securities, at market value (including securities
on loan of $32,192) (identified cost of $238,656) $389,938
Receivables:
Capital shares sold 321
Dividends and interest 162
Other 16
Unrealized appreciation on foreign currency contracts held, at value 1
--------
Total assets 390,438
--------
LIABILITIES
Payables:
Upon return of securities loaned 34,496
Securities purchased 2,375
Capital shares redeemed 377
Accrued management fees 218
Accrued transfer agent's fees 5
Other accrued expenses and payables 39
Bank overdraft 321
--------
Total liabilities 37,831
--------
Net assets applicable to capital shares outstanding $352,607
========
NET ASSETS CONSIST OF:
Paid-in capital $213,095
Accumulated undistributed net investment loss (13,898)
Accumulated net realized gain on investments 2,128
Net unrealized appreciation of investments 151,282
--------
Net assets applicable to capital shares outstanding $352,607
========
Capital shares outstanding, unlimited number of shares authorized,
no par value 18,801
========
Net asset value, redemption price, and offering price per share $ 18.76
========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
S T A T E M E N T
==================--------------------------------------------------------------
of OPERATIONS
(in thousands)
USAA PRECIOUS METALS AND MINERALS FUND
SIX-MONTH PERIOD ENDED NOVEMBER 30, 2005 (UNAUDITED)
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $62) $ 1,694
Interest 247
Securities lending 63
-------
Total income 2,004
-------
EXPENSES
Management fees 1,229
Administration and servicing fees 236
Transfer agent's fees 370
Custody and accounting fees 51
Postage 33
Shareholder reporting fees 11
Trustees' fees 4
Registration fees 18
Professional fees 23
Other 6
-------
Total expenses 1,981
Expenses paid indirectly (14)
-------
Net expenses 1,967
-------
NET INVESTMENT INCOME 37
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on:
Investments 6,497
Foreign currency transactions 2
Change in net unrealized appreciation/depreciation of:
Investments 93,248
Foreign currency translations (2)
-------
Net realized and unrealized gain 99,745
-------
Increase in net assets resulting from operations $99,782
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
S T A T E M E N T S
====================------------------------------------------------------------
of Changes in NET ASSETS
(in thousands)
USAA PRECIOUS METALS AND MINERALS FUND
SIX-MONTH PERIOD ENDED NOVEMBER 30, 2005 (UNAUDITED), AND YEAR ENDED
MAY 31, 2005
11/30/2005 5/31/2005
---------------------------
FROM OPERATIONS
Net investment income $ 37 $ 176
Net realized gain on investments 6,497 1,875
Net realized gain on foreign currency transactions 2 139
Change in net unrealized appreciation/depreciation of:
Investments 93,248 (18,366)
Foreign currency translations (2) (95)
-------------------------
Increase (decrease) in net assets resulting
from operations 99,782 (16,271)
-------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains - (3,247)
-------------------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 42,962 109,059
Reinvested dividends - 2,711
Cost of shares redeemed (65,905) (108,097)
-------------------------
Increase (decrease) in net assets from capital
share transactions (22,943) 3,673
-------------------------
Capital contribution from USAA Investment
Management Company - 4
-------------------------
Net increase (decrease) in net assets 76,839 (15,841)
NET ASSETS
Beginning of period 275,768 291,609
-------------------------
End of period $352,607 $ 275,768
=========================
Accumulated undistributed net investment loss:
End of period $(13,898) $ (13,935)
=========================
CHANGE IN SHARES OUTSTANDING
Shares sold 2,573 7,429
Shares issued for dividends reinvested - 178
Shares redeemed (4,042) (7,420)
-------------------------
Increase (decease) in shares outstanding (1,469) 187
=========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
USAA INVESTMENT TRUST (the Trust), registered under the Investment
Company Act of 1940 (the 1940 Act), as amended, is an open-end
management investment company organized as a Massachusetts business
trust consisting of 10 separate funds. The information presented in
this semiannual report pertains only to the USAA Precious Metals and
Minerals Fund (the Fund), which is classified as diversified under the
1940 Act. The Fund's primary investment objective is to seek long-term
capital appreciation and to protect the purchasing power of
shareholders' capital against inflation. Current income is a secondary
objective. The Fund concentrates its investments in equity securities
of domestic and foreign companies engaged in the exploration, mining,
or processing of gold and other precious metals and minerals, such as
platinum, silver, and diamonds. As such, the Fund may be exposed to
more risk than portfolios with a broader industry diversification.
A. SECURITY VALUATION - The value of each security is determined (as
of the close of trading on the New York Stock Exchange (NYSE) on
each business day the exchange is open) as set forth below:
1. Equity securities, including exchange-traded funds (ETFs),
except as otherwise noted, traded primarily on a domestic
securities exchange or the Nasdaq over-the-counter markets are
valued at the last sales price or official closing price on
the exchange or primary market on which they trade. Equity
securities traded primarily on foreign securities exchanges or
markets are valued at the last quoted sales price, or the most
recently determined official closing price calculated
according to local market convention, available at the time
the Fund is valued. If no last sale or official closing price
is reported or available, the average of the bid and asked
prices is generally used.
20
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
2. Equity securities trading in various foreign markets may take
place on days when the NYSE is closed. Further, when the NYSE
is open, the foreign markets may be closed. Therefore, the
calculation of the Fund's net asset value (NAV) may not take
place at the same time the prices of certain foreign
securities held by the Fund are determined. In most cases,
events affecting the values of foreign securities that occur
between the time of their last quoted sales or official
closing prices and the close of normal trading on the NYSE on
a day the Fund's NAV is calculated will not be reflected in
the value of the Fund's foreign securities. However, USAA
Investment Management Company (the Manager), an affiliate of
the Fund, will monitor for events that would materially affect
the value of the Fund's foreign securities and, if necessary,
the Manager will value the foreign securities in good faith,
considering such available information that the Manager deems
relevant, under valuation procedures approved by the Trust's
Board of Trustees. In addition, the Fund may use information
from an external vendor or other sources to adjust the foreign
market closing prices of foreign equity securities to reflect
what the Fund believes to be the fair value of the securities
as of the close of the NYSE. Fair valuation of affected
foreign equity securities may occur frequently based on an
assessment that events that occur on a fairly regular basis
(such as U.S. market movements) are significant.
3. Investments in open-end investment companies, other than ETFs,
are valued at their NAV at the end of each business day.
4. Debt securities purchased with original maturities of 60 days
or less are valued at amortized cost, which approximates
market value. Repurchase agreements are valued at cost.
5. Securities for which market quotations are not readily
available or are considered unreliable, or whose values have
been
21
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
materially affected by events occurring after the close of
their primary markets but before the pricing of the Fund, are
valued in good faith at fair value, using methods determined
by the Manager under valuation procedures approved by the
Trust's Board of Trustees. 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.
Fair value methods used by the Manager include, but are not
limited to, obtaining market quotations from secondary pricing
services, broker-dealers, or widely used quotation systems.
General factors considered in determining the fair value of
securities include fundamental analytical data, the nature and
duration of any restrictions on disposition of the securities,
and an evaluation of the forces that influenced the market in
which the securities are purchased and sold.
B. FEDERAL TAXES - The Fund's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
income to its shareholders. Therefore, no federal income tax
provision is required.
C. INVESTMENTS IN SECURITIES - Security transactions are accounted
for on the date the securities are purchased or sold (trade
date). Gains or losses from sales of investment securities are
computed on the identified cost basis. Dividend income, less
foreign taxes, if any, is recorded on the ex-dividend date. If
the ex-dividend date has passed, certain dividends from foreign
securities are recorded upon notification. Interest income is
recorded on the accrual basis. Discounts and premiums on
short-term securities are
22
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
amortized on a straight-line basis over the life of the
respective securities.
D. REPURCHASE AGREEMENTS - The Fund may enter into repurchase
agreements with commercial banks or recognized security dealers.
These agreements are collateralized by obligations issued or
guaranteed as to both principal and interest by the U.S.
government, its agencies, or its instrumentalities. Government-
sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac,
are supported only by the credit of the issuing U.S. government
agency, and are neither issued nor guaranteed by the U.S.
government. Obligations pledged as collateral are required to
maintain a value equal to or in excess of the repurchase
agreement price plus accrued interest and are held by the Fund,
either through its regular custodian or through a special
"tri-party" custodian that maintains separate accounts for both
the Fund and its counterparty, until maturity of the repurchase
agreement. The Fund's Manager monitors the creditworthiness of
sellers with which the Fund may enter into repurchase agreements.
E. FOREIGN CURRENCY TRANSLATIONS - The Fund's assets may be invested
in the securities of foreign issuers and may be traded in foreign
currency. Since the Fund's accounting records are maintained in
U.S. dollars, foreign currency amounts are translated into U.S.
dollars on the following basis:
1. Purchases and sales of securities, income, and expenses at the
exchange rate obtained from an independent pricing service on
the respective dates of such transactions.
2. Market value of securities, other assets, and liabilities at
the exchange rate obtained from an independent pricing service
on a daily basis.
The Fund does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on
investments
23
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
Separately, net realized foreign currency gains/losses may arise
from sales of foreign currency, currency gains/losses realized
between the trade and settlement dates on security transactions,
and from the difference between amounts of dividends, interest,
and foreign withholding taxes recorded on the Fund's books and
the U.S. dollar equivalent of the amounts received. At the Fund's
tax year-end of May 31, 2006, net realized foreign currency
gains/losses will be reclassified from accumulated net realized
gain/loss to accumulated undistributed net investment income on
the statement of assets and liabilities as such amounts are
treated as ordinary income/loss for tax purposes. Net unrealized
foreign currency exchange gains/losses arise from changes in the
value of assets and liabilities, other than investments in
securities, resulting from changes in the exchange rate.
F. EXPENSES PAID INDIRECTLY - A portion of the brokerage commissions
that the Fund pays may be recaptured as a credit that is tracked
and used by the custodian to directly reduce expenses paid by the
Fund. In addition, through arrangements with the Fund's custodian
and other banks utilized by the Fund for cash management
purposes, realized credits, if any, generated from cash balances
in the Fund's bank accounts are used to reduce the Fund's
expenses. For the six-month period ended November 30, 2005,
brokerage commission recapture credits and custodian and other
bank credits reduced the Fund's expenses by $13,000 and $1,000,
respectively, resulting in a total reduction in Fund expenses of
$14,000.
G. INDEMNIFICATIONS - 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
Trust. In
24
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
addition, in the normal course of business the Trust enters into
contracts that contain a variety of representations and
warranties that provide general indemnifications. The Trust's
maximum exposure under these arrangements is unknown, as this
would involve future claims that may be made against the Trust
that have not yet occurred. However, the Trust expects the risk
of loss to be remote.
H. USE OF ESTIMATES - The preparation of financial statements in
conformity with U.S. generally accepted accounting principles
requires management to make estimates and assumptions that may
affect the reported amounts in the financial statements.
(2) LINES OF CREDIT
- --------------------------------------------------------------------------------
The Fund participates in a joint, short-term, revolving, committed
loan agreement of $300 million with USAA Capital Corporation (CAPCO),
an affiliate of the Manager. The purpose of the agreement is to meet
temporary or emergency cash needs, including redemption requests that
might otherwise require the untimely disposition of securities.
Subject to availability under the agreement, the Fund may borrow from
CAPCO an amount up to 5% of the Fund's total assets at a rate per
annum equal to the rate at which CAPCO obtains funding in the capital
markets, with no markup.
The USAA funds that are party to the loan agreement are assessed
facility fees by CAPCO based on the funds' assessed proportionate
share of CAPCO's operating expenses related to obtaining and
maintaining CAPCO's funding programs in total (in no event to exceed
0.09% annually of the $300 million loan agreement). The facility fees
are allocated among the funds based on their respective average net
assets for the period.
For the six-month period ended November 30, 2005, the Fund paid CAPCO
facility fees of less than $500, which represents 1.0% of total
25
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
fees paid to CAPCO by the USAA funds. The Fund had no borrowings under
this agreement during the six-month period ended November 30, 2005.
(3) DISTRIBUTIONS
- --------------------------------------------------------------------------------
The tax basis of distributions and accumulated undistributed net
investment income will be determined based upon the Fund's tax
year-end of May 31, 2006, in accordance with applicable tax law.
Distributions of net investment income and realized gains from
security transactions not offset by capital losses are made annually
in the succeeding fiscal year or as otherwise required to avoid the
payment of federal taxes.
(4) INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
Cost of purchases and proceeds from sales of securities, excluding
short-term securities, for the six-month period ended November 30,
2005, were $21,284,000 and $57,698,000, respectively.
As of November 30, 2005, the cost of securities, including short-term
securities, for federal income tax purposes, was approximately the
same as that reported in the financial statements.
Gross unrealized appreciation and depreciation of investments as of
November 30, 2005, were $154,097,000 and $2,815,000, respectively,
resulting in net unrealized appreciation of $151,282,000.
(5) FOREIGN CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
A forward currency contract (currency contract) is a commitment to
purchase or sell a foreign currency at a specified date, at a
negotiated price. The Fund may enter into currency contracts in
connection with the purchase or sale of a security denominated in a
foreign currency.
26
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
These contracts allow the Fund to "lock in" the U.S. dollar price of
the security. The Fund may also enter into currency contracts to hedge
against foreign currency exchange risks on the non-U.S. dollar
denominated securities held in the Fund's portfolio. Currency
contracts are valued on a daily basis using foreign currency exchange
rates obtained from an independent pricing service. Risks of entering
into currency contracts include the potential inability of the
counterparty to meet the terms of the contract and the Fund's giving
up the opportunity for potential profit.
At November 30, 2005, the terms of open foreign currency contracts
were as follows (in thousands):
FOREIGN CURRENCY CONTRACTS TO BUY
- ---------------------------------------------------------------------------------
IN
U.S. DOLLAR EXCHANGE UNREALIZED
EXCHANGE CONTRACTS TO VALUE AS OF FOR U.S. APPRECIATION
DATE DELIVER 11/30/2005 DOLLAR (DEPRECIATION)
- ---------------------------------------------------------------------------------
12/02/2005 1,890 $1,620 $1,619 $1
Canadian Dollar
(6) LENDING OF PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
The Fund, through its third-party securities-lending agent,
Metropolitan West Securities LLC (MetWest), may lend its securities to
qualified financial institutions, such as certain broker-dealers, to
earn additional income. The borrowers are required to secure their
loans continuously with cash collateral in an amount at least equal to
the fair value of the securities loaned, initially in an amount at
least equal to 102% of the fair value of domestic securities loaned
and 105% of the fair value of international securities loaned. Cash
collateral is invested in high-quality short-term investments. The
Fund and MetWest retain 80% and 20%, respectively, of the income
earned from the investment of cash received as collateral. MetWest
receives no other fees from the Fund for its services as
securities-lending agent. Risks to the Fund in securities-lending
transactions are that the borrower may not provide additional
collateral
27
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
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. For the six-month
period ended November 30, 2005, the Fund received securities-lending
income of $63,000, which is net of the 20% income retained by MetWest.
As of November 30, 2005, the Fund loaned securities having a fair
market value of approximately $32,192,000 and received cash collateral
of $34,496,000 for the loans. Of this amount, $34,817,000 was invested
in short-term investments, as noted in the Fund's portfolio of
investments, leaving a bank overdraft of $321,000.
(7) TRANSACTIONS WITH MANAGER
- --------------------------------------------------------------------------------
A. MANAGEMENT FEES - The Manager carries out the Fund's investment
policies and manages the Fund's portfolio. The investment
management fee for the Fund is composed of a base fee and a
performance adjustment that increases or decreases the base fee
depending upon the performance of the Fund relative to the
performance of the Lipper Gold Funds Index, which tracks the
total return performance of the 10 largest funds in the Lipper
Gold Oriented Funds category. The Fund's base fee is accrued
daily and paid monthly at an annualized rate of 0.75% of the
Fund's average net assets for the fiscal year.
The performance adjustment will be calculated monthly by
comparing the Fund's performance to that of the Lipper index over
the performance period. The performance period for the Fund
consists of the current month plus the previous 35 months.
The annual performance adjustment rate is multiplied by the
average net assets of the Fund 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
28
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
added to (in the case of overperformance) or subtracted from (in
the case of underperformance) the base fee, as referenced in the
following chart:
OVER/UNDER PERFORMANCE ANNUAL ADJUSTMENT RATE
RELATIVE TO INDEX(1) AS A % OF THE FUND'S AVERAGE NET ASSETS
- --------------------------------------------------------------------------------
+/- 1.00% to 4.00% +/- 0.04%
+/- 4.01% to 7.00% +/- 0.05%
+/- 7.01% and greater +/- 0.06%
(1)Based on the difference between average annual performance of the Fund and
its relevant index, rounded to the nearest 0.01%.
Under the performance fee arrangement, the Fund will pay a
positive performance fee adjustment for a performance period
whenever the Fund outperforms the Lipper Gold Funds Index over
that period, even if the Fund had overall negative returns during
the performance period.
For the six-month period ended November 30, 2005, the Fund
incurred total management fees, paid or payable to the Manager,
of $1,229,000, which included a performance adjustment of $51,000
that increased the base management fee of 0.75% by 0.02%.
B. ADMINISTRATION AND SERVICING FEES - The Manager provides certain
administration and shareholder servicing functions for the Fund.
For such services, the Manager receives a fee accrued daily and
paid monthly at an annualized rate of 0.15% of the Fund's average
net assets. For the six-month period ended November 30, 2005, the
Fund incurred administration and servicing fees, paid or payable
to the Manager, of $236,000.
In addition to the services provided under its Administration and
Servicing Agreement with the Fund, the Manager also provides
29
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
certain legal and tax services for the benefit of the Fund. The
Trust's Board of Trustees has approved the reimbursement of these
expenses incurred by the Manager. For the six-month period ended
November 30, 2005, the Fund reimbursed the Manager $8,000 for
these legal and tax services. These expenses are included in the
professional fees expenses on the Fund's statement of operations.
C. TRANSFER AGENT'S FEES - USAA Transfer Agency Company, d/b/a USAA
Shareholder Account Services (SAS), an affiliate of the Manager,
provides transfer agent services to the Fund based on an annual
charge of $23 per shareholder account plus out-of-pocket
expenses. The Fund also pays SAS fees that are related to the
administration and servicing of accounts that are traded on an
omnibus basis. For the six-month period ended November 30, 2005,
the Fund incurred transfer agent's fees, paid or payable to SAS,
of $370,000.
D. UNDERWRITING SERVICES - The Manager provides exclusive
underwriting and distribution of the Fund's shares on a
continuing best-efforts basis. The Manager receives no
commissions or fees for this service.
(8) TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
Certain trustees and officers of the Fund are also directors,
officers, and/or employees of the Manager. None of the affiliated
trustees or Fund officers received any compensation from the Fund.
30
N O T E S
==========----------------------------------------------------------------------
to FINANCIAL Statements
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
(9) FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per share operating performance for a share outstanding throughout each period
is as follows:
SIX-MONTH
PERIOD ENDED
NOVEMBER 30, YEAR ENDED MAY 31,
----------------------------------------------------------------------------------------
2005 2005 2004 2003 2002 2001
----------------------------------------------------------------------------------------
Net asset value at beginning
of period $ 13.60 $ 14.52 $ 10.70 $ 11.71 $ 5.84 $ 4.87
----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss)(a) .00(c) .01 (.07) .02 (.01) .01
Net realized and unrealized
gain (loss)(a) 5.16 (.78) 4.75 (.65) 5.93 .98
----------------------------------------------------------------------------------------
Total from investment operations(a) 5.16 (.77) 4.68 (.63) 5.92 .99
----------------------------------------------------------------------------------------
Less distributions:
From net investment income - - (.86) (.38) (.05) (.02)
From realized capital gains - (.15) - - - -
----------------------------------------------------------------------------------------
Total distributions - (.15) (.86) (.38) (.05) (.02)
----------------------------------------------------------------------------------------
Net asset value at end of period $ 18.76 $ 13.60 $ 14.52 $ 10.70 $ 11.71 $ 5.84
========================================================================================
Total return (%)* 37.94 (5.39) 42.39 (5.11) 101.95 20.50
Net assets at end of period (000) $352,607 $275,768 $291,609 $156,192 $149,679 $70,459
Ratio of expenses to average
net assets (%)**(d) 1.26(b) 1.26 1.26 1.47 1.56 1.68
Ratio of net investment income (loss)
to average net assets (%)** .02(b) .06 (.49) .20 (.16) .17
Portfolio turnover (%) 7.12 26.74 27.09 31.39 40.61 52.74
* Assumes reinvestment of all net investment income and realized capital gain
distributions during the period. Calculated using net assets adjusted for
last day trades and could differ from the Lipper reported return.
** For the six-month period ended November 30, 2005, average net assets were
$314,180,000.
(a) Calculated using average shares. For the six-month period ended November 30,
2005, average shares were 19,394,000.
(b) Annualized. The ratio is not necessarily indicative of 12 months of
operations.
(c) Represents less than $.01 per share.
(d) Reflects total operating expenses of the Fund before reductions of any
expenses paid indirectly. The Fund's expenses paid indirectly decreased the
expense ratios as follows:
(.01%) (.03%) (.03%) (.00%)(+) (.00%)(+) (.00%)(+)
(+) Represents less than 0.01% of average net assets.
31
E X P E N S E
==============------------------------------------------------------------------
EXAMPLE
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
EXAMPLE
- --------------------------------------------------------------------------------
As a shareholder of the Fund, you incur two types of costs: direct
costs, such as wire fees, redemption fees, and low balance fees; and
indirect costs, including management fees, transfer agency fees, and
other Fund operating expenses. This example is intended to help you
understand your indirect costs, also referred to as "ongoing costs"
(in dollars), of investing in the Fund and to compare these costs with
the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire six-month period of
June 1, 2005, through November 30, 2005.
ACTUAL EXPENSES
- --------------------------------------------------------------------------------
The first line of the table on the next page provides information
about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested at the
beginning of the period, 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 first line under the heading "Expenses
Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
- --------------------------------------------------------------------------------
The second line of the table provides 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
32
E X P E N S E
==============------------------------------------------------------------------
EXAMPLE
(continued)
USAA PRECIOUS METALS AND MINERALS FUND
NOVEMBER 30, 2005 (UNAUDITED)
use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder
reports of other funds.
Please note that the expenses shown in the table are meant to
highlight your ongoing costs only and do not reflect any direct costs,
such as wire fees, redemption fees, or low balance fees. Therefore,
the second line of the table is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of
owning different funds. In addition, if these direct costs were
included, your costs would have been higher.
EXPENSES PAID
BEGINNING ENDING DURING PERIOD*
ACCOUNT VALUE ACCOUNT VALUE JUNE 1, 2005-
JUNE 1, 2005 NOVEMBER 30, 2005 NOVEMBER 30, 2005
---------------------------------------------------------------
Actual $1,000.00 $1,378.70 $7.45
Hypothetical
(5% return before expenses) 1,000.00 1,018.81 6.32
*Expenses are equal to the Fund's annualized expense ratio of 1.25%,
which is net of any expenses paid indirectly, multiplied by the
average account value over the period, multiplied by 183 days/365
days (to reflect the one-half year period). The Fund's ending account
value on the first line in the table is based on its actual total
return of 37.94% for the six-month period of June 1, 2005, through
November 30, 2005.
TRUSTEES Christopher W. Claus
Barbara B. Dreeben
Robert L. Mason, Ph.D.
Michael F. Reimherr
Laura T. Starks, Ph.D.
Richard A. Zucker
ADMINISTRATOR, USAA Investment Management Company
INVESTMENT ADVISER, P.O. Box 659453
UNDERWRITER, San Antonio, Texas 78265-9825
AND DISTRIBUTOR
TRANSFER AGENT USAA Shareholder Account Services
9800 Fredericksburg Road
San Antonio, Texas 78288
CUSTODIAN AND State Street Bank and Trust Company
ACCOUNTING AGENT P.O. Box 1713
Boston, Massachusetts 02105
INDEPENDENT Ernst & Young LLP
REGISTERED PUBLIC 100 West Houston St., Suite 1800
ACCOUNTING FIRM San Antonio, Texas 78205
TELEPHONE Call toll free - Central time
ASSISTANCE HOURS Monday - Friday, 7 a.m. to 10 p.m.
Saturday, 8:30 a.m. to 5 p.m.
Sunday, 10:30 a.m. to 7 p.m.
FOR ADDITIONAL (800) 531-8181
INFORMATION ABOUT For account servicing, exchanges,
MUTUAL FUNDS or redemptions (800) 531-8448
RECORDED MUTUAL 24-hour service (from any phone)
FUND PRICE QUOTES (800) 531-8066
MUTUAL FUND (from touch-tone phones only)
USAA TOUCHLINE For account balance, last transaction, fund
prices, or to exchange or redeem fund shares
(800) 531-8777
INTERNET ACCESS USAA.COM
COPIES OF THE MANAGER'S PROXY VOTING POLICIES AND PROCEDURES, APPROVED BY THE
TRUST'S BOARD OF TRUSTEES FOR USE IN VOTING PROXIES ON BEHALF OF THE FUND, ARE
AVAILABLE WITHOUT CHARGE (I) BY CALLING (800) 531-8448; (II) AT USAA.COM; AND
(III) ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. INFORMATION REGARDING HOW THE
FUND VOTED PROXIES RELATING TO PORTFOLIO SECURITIES DURING THE MOST RECENT
12-MONTH PERIOD ENDED JUNE 30, IS AVAILABLE (I) AT USAA.COM; AND (II) ON THE
SEC'S WEB SITE AT HTTP://WWW.SEC.GOV.
THE FUND FILES ITS COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE
FIRST AND THIRD QUARTERS OF EACH FISCAL YEAR ON FORM N-Q. THESE FORMS N-Q ARE
AVAILABLE (I) BY CALLING (800) 531-8448; (II) AT USAA.COM; AND (III) ON THE
SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. THESE FORMS N-Q ALSO MAY BE REVIEWED AND
COPIED AT THE SEC'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE
OPERATION OF THE PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING (800)
SEC-0330.
[LOGO OF RECYCLED PAPER]
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Paper
- --------------------------------------------------------------------------------
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[LOGO OF USAA] WE KNOW WHAT IT MEANS TO SERVE.(R)
USAA ----------------------------------
INSURANCE o MEMBER SERVICES
23408-0106 (C)2006, USAA. All rights reserved.
ITEM 2. CODE OF ETHICS.
NOT APPLICABLE. This item must be disclosed only in annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
NOT APPLICABLE. This item must be disclosed only in annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
NOT APPLICABLE. This item must be disclosed only in annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not Applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Filed as part of the report to shareholders.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not Applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not Applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Corporate Governance Committee selects and nominates candidates for
membership on the Board as independent directors. Currently, there is no
procedure for shareholders to recommend candidates to serve on the Board.
ITEM 10. CONTROLS AND PROCEDURES
The principal executive officer and principal financial officer of USAA
Investment Trust (Trust) have concluded that the Trust's disclosure controls and
procedures are sufficient to ensure that information required to be disclosed by
the Trust in this Form N-CSR was recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission's
rules and forms, based upon such officers' evaluation of these controls and
procedures as of a date within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation. The only material change to
the procedures was to document the annual disclosure controls and procedures
established for the new section of the shareholder reports detailing the factors
considered by the Funds' Board in approving the Funds' advisory agreements.
ITEM 11. EXHIBITS.
(a)(1). NOT APPLICABLE. This item must be disclosed only in annual reports.
(a)(2). Certification pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit
99.CERT.
(a)(3). Not Applicable.
(b). Certification pursuant to Rule 30a-2(b) under the Investment Company Act
of 1940 (17 CFR 270.30a-2(b))is filed and attached hereto as Exhibit
99.906CERT.
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 INVESTMENT TRUST (except for the Total Return Strategy Fund)
By:* /s/ EILEEN M. SMILEY
-----------------------------------------------------------
Signature and Title: Eileen M. Smiley, Assistant Secretary
Date: January 18, 2006
------------------------------
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:* /s/ CHRISTOPHER W. CLAUS
----------------------------------------------------
Signature and Title: Christopher W. Claus/President
Date: January 25, 2006
------------------------------
By:* /s/ DEBRA K. DUNN
---------------------------------------------
Signature and Title: Debra K. Dunn/Treasurer
Date: January 24, 2006
------------------------------
*Print the name and title of each signing officer under his or her signature.