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: 811-7852
Exact name of registrant as specified in charter: USAA MUTUAL FUNDS TRUST
Address of principal executive offices and zip code: 9800 FREDERICKSBURG ROAD
SAN ANTONIO, TX 78288
Name and address of agent for service: ADYM W. RYGMYR
USAA MUTUAL FUNDS TRUST
9800 FREDERICKSBURG ROAD
SAN ANTONIO, TX 78288
Registrant's telephone number, including area code: (210) 498-0226
Date of fiscal year end: JULY 31
Date of reporting period: JANUARY 31, 2013
ITEM 1. SEMIANNUAL REPORT TO STOCKHOLDERS.
USAA MUTUAL FUNDS TRUST - SEMIANNUAL REPORT FOR PERIOD ENDED JANUARY 31, 2013
[LOGO OF USAA]
USAA(R)
[GRAPHIC OF USAA MONEY MARKET FUND]
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SEMIANNUAL REPORT
USAA MONEY MARKET FUND
JANUARY 31, 2013
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PRESIDENT'S MESSAGE
"AS I WRITE TO YOU, INVESTORS ARE SHOWING [PHOTO OF DANIEL S. McNAMARA]
A GROWING APPETITE FOR RISK."
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MARCH 2013
At the beginning of January of this year, the "fiscal cliff" had been averted.
However, the deal reached by Congress was less than perfect and on March 1,
sequestration took effect after Congress was unable to come up with a long-term
plan to resolve our nation's toughest fiscal challenges. Due to the legally-
mandated sequestration, I expect the country's fiscal condition to remain in
flux.
As part of the fiscal cliff agreement, lawmakers blocked some large tax
increases, but they allowed the payroll tax holiday to expire and raised the tax
rate on individuals earning more than $400,000 a year ($450,000 for couples).
They also approved a smaller-than-expected increase in the capital gains tax.
However, Congress delayed action on the "sequester," until spring, which
mandates automatic, across-the-board spending cuts.
In the meantime, U.S. economic growth appears to have slowed. After generating
3.1% real gross domestic product (GDP) growth in the third quarter of 2012, the
U.S. economy contracted during the fourth quarter. Looking ahead, I believe U.S.
economic growth to remain below 2%, although the housing market, which continues
to improve, is a bright spot. Although Congress has allowed the sequester to be
implemented, the effect of spending cuts alone should not have a material impact
on the growth of U.S. GDP. Nonetheless, along with the January tax increases,
this could further weaken economic growth over the next few calendar quarters.
The U.S. Federal Reserve (the Fed) continues to do all it can to boost economic
growth and reduce unemployment. During September 2012, it launched a third round
of quantitative easing (QE3), making an open-ended commitment to buy mortgage-
backed securities. The Fed went even further in December of last year, making a
commitment -- also open ended -- to buy long-term U.S. Treasury securities every
month starting in January 2013. By the end of the reporting period, the U.S.
central bank was pumping money into the U.S. economy. The Fed also has kept
short-term interest rates at exceptionally low levels and is unlikely to raise
rates in the near future. However, according to minutes from recent meetings,
Fed governors are debating the timing of a rate increase relative to certain
economic thresholds.
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As I write to you, investors are showing a growing appetite for risk. U.S. stock
prices, as represented by the S&P 500(R) Index, climbed during the reporting
period. But I am troubled that few of these gains can be attributed to earnings
and dividends. Approximately two thirds of the price appreciation was the result
of multiple expansions. In other words, investors appeared to favor stocks for
their own sake, not for the earnings growth of the underlying companies
themselves. This suggests that some people are investing in stocks just because
their prices are rising, which indicates a certain amount of complacency.
Indeed, at the time of this writing, the "fear index," the VIX (a measure of
market volatility), is extremely low.
Meanwhile, fixed-income securities were less in favor. Some observers even
predicted the "demise" of bonds as an asset class. Hyperbole aside, I believe
that many people forget how large and diverse the fixed-income market is. It
comprises many types of bonds, U.S. Treasuries, mortgage-backed securities,
investment-grade bonds, high-yield bonds, municipal securities, and more. Many
of these fixed-income asset classes perform differently from each other. For
example, during the reporting period, investment-grade corporate bonds
outperformed U.S. Treasury securities and high-yield bonds outperformed
investment-grade corporate bonds. That said, I believe that bonds will not
experience the same level of price appreciation they have experienced in recent
years. In my opinion, fixed-income securities have returned to their historic
role as an income-accumulation vehicle.
Looking ahead, our short-term outlook is cautious. The U.S. economy remains
fragile and no one knows how the looming sequester will affect GDP growth. In
this environment, we believe our disciplined investment approach -- which seeks
to identify attractive opportunities while minimizing potential risks -- is
particularly advantageous. On behalf of everyone at USAA Asset Management
Company, thank you for allowing us to serve your investment needs. We appreciate
your continued confidence.
Sincerely,
/S/ DANIEL S. MCNAMARA
Daniel S. McNamara
President
USAA Asset Management Company
VIX is a trademarked ticker symbol for the Chicago Board Options Exchange Market
Volatility Index, a popular measure of the implied volatility of S&P 500 index.
As interest rates rise, bond prices fall. o Past performance is no guarantee of
future results. o Rebalancing and diversification do not protect against losses
or guarantee that an investor's goal will be met.
The S&P 500 Index is a well-known stock market index that includes common stocks
of 500 companies from several industrial sectors representing a significant
portion of the market value of all stocks publicly traded in the United States.
Most of these stocks are listed on the New York Stock Exchange.
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TABLE OF CONTENTS
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FUND OBJECTIVE 1
MANAGER'S COMMENTARY 2
INVESTMENT OVERVIEW 5
FINANCIAL INFORMATION
Portfolio of Investments 9
Notes to Portfolio of Investments 30
Financial Statements 33
Notes to Financial Statements 36
EXPENSE EXAMPLE 44
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 ASSET 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)2013, USAA. All rights reserved.
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FUND OBJECTIVE
THE USAA MONEY MARKET FUND'S (THE FUND) INVESTMENT OBJECTIVE IS THE HIGHEST
INCOME CONSISTENT WITH PRESERVATION OF CAPITAL AND THE MAINTENANCE OF LIQUIDITY.
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TYPES OF INVESTMENTS
The Fund invests its assets in high-quality, U.S. dollar-denominated, short-term
debt securities of domestic and foreign issuers that have been determined to
present minimal credit risk and comply with strict Securities and Exchange
Commission (SEC) guidelines applicable to money market funds.
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 set rate. However, you may elect not to
have withholding apply or to have income tax withheld at a higher rate. If you
wish to make such an election, please call USAA Asset Management Company at
(800) 531-USAA (8722).
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.
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FUND OBJECTIVE | 1
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MANAGER'S COMMENTARY ON THE FUND
TONY ERA [PHOTO OF TONY ERA]
USAA Asset Management Company
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o HOW DID THE USAA MONEY MARKET FUND (THE FUND) PERFORM DURING THE REPORTING
PERIOD?
At the end of the reporting period, the seven-day yield on the Fund remained
at 0.01%. The total return for the same period was 0.01%, compared to an
average of 0.01% for all money market funds ranked by iMoneyNet, Inc.
o WHY DID THE FUND AND ITS PEER GROUP PROVIDE NEAR-ZERO RETURNS FOR THE
REPORTING PERIOD?
Yields on money market mutual funds remained at or near 0% as a result of
the U.S. Federal Reserve's (the Fed) accommodative monetary policy. The Fed
held the federal funds target rate between 0% and 0.25% throughout the
reporting period. Though absolute yields were extremely low, investors
continued to rely on money market funds for the safety and liquidity they
provided.
Refer to page 6 for benchmark definitions.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
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2 | USAA MONEY MARKET FUND
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o WHAT WERE THE MARKET CONDITIONS DURING THE REPORTING PERIOD AND HOW DID THEY
AFFECT THE MONEY MARKETS?
During the reporting period, market sentiment was influenced primarily by
central bank policy. In September 2012, as clear signs of stronger U.S.
economic growth remained elusive, the Fed launched a third round of
quantitative easing (QE3) with the stated objective of boosting economic
growth and reducing unemployment. To further these objectives, the Fed
announced in December of 2012 that it would continue purchasing mortgage-
backed securities and that it would begin purchasing longer-term U.S.
Treasuries once its program to extend the average maturity of its U.S.
Treasury holdings (Operation Twist) ended on December 31, 2012. The Fed also
established a threshold level for the level of unemployment it would like to
see before increasing short-term interest rates.
A particular source of anxiety during the reporting period was the debate in
Congress over the "fiscal cliff," a package of tax increases and spending
cuts that were scheduled to take effect on January 1, 2013. Though lawmakers
did not come to a permanent agreement, they did prevent some of the largest
tax hikes. Certain tax increases, such as the end of the payroll tax holiday
and a modest increase in the capital gains tax, took effect in January.
Congress postponed until spring further action to avoid across-the-board
cuts known as the "sequester."
o WHAT WERE YOUR STRATEGIES IN THIS ENVIRONMENT?
Because interest rates were so low, we generally concentrated our purchases
in variable-rate demand notes (VRDNs). The VRDNs owned by the Fund provide
flexibility because we can sell them at par (100% of face value) upon notice
of seven days or less. They also offer a degree of safety and liquidity.
Most of these VRDNs are guaranteed by a bank letter of credit for the
payment of both principal and interest.
In addition, with short-term interest rates hovering near zero and expected
to remain there for some length of time, we sought to
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MANAGER'S COMMENTARY ON THE FUND | 3
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invest in securities with slightly longer maturities that generally provide
more yield. Our opportunities were limited in the low interest rate
environment. We continued to rely on our credit analysts to help us find
attractive investments for the Fund. They also continued to analyze and
monitor every holding in the portfolio.
o WHAT IS THE OUTLOOK?
We believe that the U.S. economy will continue its "muddle through"
recovery, though the tax cuts Congress authorized in January are likely to
keep real gross domestic product growth low. The potential sequester could
dampen economic growth further. The Fed has stated its intention to keep
short-term interest rates near zero until certain economic thresholds are
met, a level the Fed itself has said may not be reached for several years.
As a result, shareholders are likely to see little change in the Fund's
yield over the near term. Once interest rates begin to rise, we plan to look
for opportunities to invest at higher interest rates. In the meantime, we
will continue to focus on safety and liquidity, while striving to maximize
the income you receive from the Fund.
We appreciate your continued confidence in us.
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4 | USAA MONEY MARKET FUND
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INVESTMENT OVERVIEW
USAA MONEY MARKET FUND (THE FUND) (Ticker Symbol: USAXX)
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1/31/13 7/31/12
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Net Assets $5,038.3 Million $4,879.9 Million
Net Asset Value Per Share $1.00 $1.00
Dollar-Weighted Average
Portfolio Maturity(+) 37 Days 22 Days
(+) Obtained by multiplying the dollar value of each investment by the number of
days left to its maturity, adding those figures together, and dividing them by
the total dollar value of the Fund's portfolio.
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AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/13
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8/1/12-1/31/13* 1 Year 5 Years 10 Years
0.01% 0.01% 0.69% 1.76%
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AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/12
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1 Year 5 Years 10 Years
0.03% 0.75% 1.77%
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7-DAY YIELD AS OF 1/31/13 EXPENSE RATIO AS OF 7/31/12**
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Subsidized 0.01% 0.65%
Unsubsidized -0.34%
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 returns for periods of less than one year are not annualized. This
six-month return is cumulative.
**The expense ratio represents the total annual operating expenses, before
reductions of any expenses paid indirectly and including any acquired fund fees
and expenses, as reported in the Fund's prospectus dated December 1, 2012, and
is calculated as a percentage of average net assets. The expense ratio may
differ from the expense ratio disclosed in the Financial Highlights, which
excludes acquired fund fees and expenses.
AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR
ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF
YOUR INVESTMENT AT $1 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN
THE FUND.
Total return measures the price change in a share assuming the reinvestment of
all net investment income and realized capital gain distributions. The total
returns quoted do not reflect adjustments made to the enclosed financial
statements in accordance with U.S. generally accepted accounting principles or
the deduction of taxes that a shareholder would pay on distributions or the
redemption of shares.
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INVESTMENT OVERVIEW | 5
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o 7-DAY YIELD COMPARISON o
[CHART OF 7-DAY YIELD COMPARISON]
USAA MONEY MARKET
FUND iMONEYNET AVERAGE
1/31/2012 0.01% 0.01%
2/28/2012 0.01 0.01
3/27/2012 0.01 0.01
4/24/2012 0.01 0.01
5/29/2012 0.01 0.01
6/26/2012 0.01 0.01
7/31/2012 0.01 0.01
8/28/2012 0.01 0.01
9/25/2012 0.01 0.01
10/30/2012 0.01 0.01
11/27/2012 0.01 0.01
12/24/2012 0.01 0.01
1/29/2013 0.01 0.01
[END CHART]
Data represent the last Tuesday of each month. Ending date 1/29/13.
The graph tracks the USAA Money Market Fund's seven-day yield against iMoneyNet,
Inc. Money Fund Averages(TM)/First Tier, an average of first-tier major money
market fund yields. iMoneyNet, Inc. is an organization that tracks the
performance of money market funds.
Past performance is no guarantee of future results.
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6 | USAA MONEY MARKET FUND
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o CUMULATIVE PERFORMANCE OF $10,000 o
[CHART OF CUMULATIVE PERFORMANCE]
USAA MONEY MARKET FUND
1/31/2003 $10,000.00
2/28/2003 10,008.46
3/31/2003 10,016.29
4/30/2003 10,024.35
5/31/2003 10,032.82
6/30/2003 10,039.53
7/31/2003 10,045.35
8/31/2003 10,051.35
9/30/2003 10,056.81
10/31/2003 10,062.73
11/30/2003 10,067.68
12/31/2003 10,073.34
1/31/2004 10,078.47
2/29/2004 10,083.41
3/31/2004 10,088.55
4/30/2004 10,094.03
5/31/2004 10,098.91
6/30/2004 10,104.64
7/31/2004 10,111.82
8/31/2004 10,120.13
9/30/2004 10,129.91
10/31/2004 10,141.05
11/30/2004 10,153.35
12/31/2004 10,169.10
1/31/2005 10,183.94
2/28/2005 10,199.72
3/31/2005 10,218.65
4/30/2005 10,239.06
5/31/2005 10,260.05
6/30/2005 10,282.49
7/31/2005 10,306.97
8/31/2005 10,332.96
9/30/2005 10,361.68
10/31/2005 10,389.47
11/30/2005 10,419.97
12/31/2005 10,455.74
1/31/2006 10,487.41
2/28/2006 10,520.05
3/31/2006 10,559.76
4/30/2006 10,594.71
5/31/2006 10,634.86
6/30/2006 10,677.69
7/31/2006 10,717.97
8/31/2006 10,761.92
9/30/2006 10,806.01
10/31/2006 10,848.83
11/30/2006 10,891.84
12/31/2006 10,939.46
1/31/2007 10,981.42
2/28/2007 11,021.95
3/31/2007 11,068.32
4/30/2007 11,110.41
5/31/2007 11,155.62
6/30/2007 11,200.76
7/31/2007 11,244.66
8/31/2007 11,295.42
9/30/2007 11,336.15
10/31/2007 11,380.30
11/30/2007 11,423.60
12/31/2007 11,465.11
1/31/2008 11,502.47
2/29/2008 11,533.00
3/31/2008 11,559.91
4/30/2008 11,586.60
5/31/2008 11,613.90
6/30/2008 11,637.01
7/31/2008 11,660.25
8/31/2008 11,684.37
9/30/2008 11,714.29
10/31/2008 11,754.52
11/30/2008 11,776.09
12/31/2008 11,795.61
1/31/2009 11,810.13
2/28/2009 11,821.73
3/31/2009 11,833.95
4/30/2009 11,844.97
5/31/2009 11,857.05
6/30/2009 11,867.84
7/31/2009 11,877.32
8/31/2009 11,883.53
9/30/2009 11,887.74
10/31/2009 11,890.68
11/30/2009 11,892.20
12/31/2009 11,894.98
1/31/2010 11,895.16
2/28/2010 11,895.26
3/31/2010 11,895.36
4/30/2010 11,895.46
5/31/2010 11,895.56
6/30/2010 11,895.65
7/31/2010 11,895.76
8/31/2010 11,895.85
9/30/2010 11,895.95
10/31/2010 11,896.05
11/30/2010 11,896.15
12/31/2010 11,897.59
1/31/2011 11,897.69
2/28/2011 11,897.78
3/31/2011 11,897.88
4/30/2011 11,897.98
5/31/2011 11,898.08
6/30/2011 11,898.17
7/31/2011 11,898.27
8/31/2011 11,898.37
9/30/2011 11,898.48
10/31/2011 11,898.57
11/30/2011 11,898.67
12/31/2011 11,898.78
1/31/2012 11,900.92
2/29/2012 11,901.01
3/31/2012 11,901.12
4/30/2012 11,901.21
5/31/2012 11,901.31
6/30/2012 11,901.41
7/31/2012 11,901.51
8/31/2012 11,901.62
9/30/2012 11,901.71
10/31/2012 11,901.81
11/30/2012 11,901.92
12/31/2012 11,902.37
1/31/2013 11,902.47
[END CHART]
Data from 1/31/03 through 1/31/13.
The graph illustrates the performance of a hypothetical $10,000 investment in
the USAA Money Market Fund.
Past performance is no guarantee of future results. The cumulative performance
quoted assumes reinvestment of all net investment income and realized capital
gain distributions and does not reflect the deduction of taxes that a
shareholder would pay on distributions or the redemption of shares. For
seven-day yield information, please refer to the Fund's investment overview
page.
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INVESTMENT OVERVIEW | 7
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o PORTFOLIO MIX -- 1/31/2013 o
[PIE CHART OF PORTFOLIO MIX]
VARIABLE-RATE DEMAND NOTES 57.9%
FIXED-RATE INSTRUMENTS 21.7%
COMMERCIAL PAPER 17.5%
REPURCHASE AGREEMENT 2.4%
PUT BONDS 0.7%
[END CHART]
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 9-29.
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8 | USAA MONEY MARKET FUND
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PORTFOLIO OF INVESTMENTS
January 31, 2013 (unaudited)
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PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
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FIXED-RATE INSTRUMENTS (21.7%)
DIVERSIFIED BANKS (11.5%)
$25,000 Abbey National Treasury Services plc 0.38% 2/21/2013 $ 25,000
25,000 BNP Paribas 0.41 3/04/2013 25,000
25,000 BNP Paribas 0.50 3/18/2013 25,000
25,000 BNP Paribas 0.41 7/17/2013 25,000
40,000 Branch Banking & Trust Co. 0.45 6/24/2013 40,000
25,000 Branch Banking & Trust Co. 0.44 7/01/2013 25,000
25,000 Branch Banking & Trust Co. 0.43 10/24/2013 25,000
30,000 Canadian Imperial Bank of Commerce 0.58 5/21/2013 30,000
20,000 Landesbank Hessen-Thuringen 0.40 5/13/2013 20,000
30,000 Lloyds TSB Bank plc 0.40 5/02/2013 30,000
25,000 Mizuho Corporate Bank Ltd. 0.35 5/15/2013 25,000
25,000 Mizuho Corporate Bank Ltd. 0.35 5/21/2013 25,000
25,000 Rabobank Nederland N.V. 0.25 6/28/2013 25,000
25,000 Rabobank Nederland N.V. 0.25 6/28/2013 25,000
25,000 Skandinaviska Enskilda Banken AB 0.21 4/04/2013 25,000
25,000 Skandinaviska Enskilda Banken AB 0.35 6/07/2013 25,000
30,000 Skandinaviska Enskilda Banken AB 0.54 7/03/2013 30,000
25,000 Standard Chartered Bank 0.62 3/18/2013 25,000
25,000 Standard Chartered Bank 0.41 4/05/2013 25,000
25,000 Standard Chartered Bank 0.30 7/08/2013 25,000
25,000 Sumitomo Mitsui Banking Corp. 0.34 5/21/2013 25,000
30,000 Sumitomo Mitsui Banking Corp. 0.27 7/22/2013 30,000
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580,000
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DIVERSIFIED CAPITAL MARKETS (2.0%)
25,000 Deutsche Bank AG 0.58 2/28/2013 25,000
25,000 Deutsche Bank AG 0.43 4/17/2013 25,000
25,000 Deutsche Bank AG 0.41 7/18/2013 25,000
25,000 UBS AG 0.46 4/04/2013 25,000
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100,000
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GENERAL OBLIGATION (5.1%)
25,263 Amherst 1.25 11/14/2013 25,434
14,445 Ballston Spa CSD 1.00 9/27/2013 14,508
4,000 Becker ISD (NBGA) 1.50 9/04/2013 4,026
38,000 California 2.50 6/20/2013 38,299
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PORTFOLIO OF INVESTMENTS | 9
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PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
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$13,000 Duluth ISD (NBGA) 1.50% 9/20/2013 $ 13,100
19,298 Honeoye Falls-Lima CSD 1.00 6/18/2013 19,349
21,000 Kenmore-Tonawanda Union Free School District 1.00 6/28/2013 21,057
4,500 Minnetonka ISD (NBGA) 1.50 8/15/2013 4,526
21,569 North Syracuse CSD 1.00 8/16/2013 21,641
7,500 Rosemount ISD (NBGA) 1.00 3/28/2013 7,508
11,000 Schoharie County 1.50 11/15/2013 11,051
50,000 Texas 2.50 8/30/2013 50,651
28,850 Westhill CSD 1.00 6/28/2013 28,932
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260,082
----------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.5%)
23,440 Citigroup, Inc. 5.50 4/11/2013 23,664
----------
REGIONAL BANKS (2.6%)
25,000 Norinchukin Bank 0.44 2/04/2013 25,000
25,000 Norinchukin Bank 0.41 4/15/2013 25,000
25,000 Norinchukin Bank 0.42 5/20/2013 25,000
25,000 Union Bank, N.A. 0.35 3/06/2013 25,000
30,000 Union Bank, N.A. 0.28 6/03/2013 30,000
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130,000
----------
Total Fixed-Rate Instruments (cost: $1,093,746) 1,093,746
----------
COMMERCIAL PAPER (17.5%)
AIRPORT/PORT (0.2%)
6,000 San Francisco Airport Commission
(LOC - Barclays Bank plc) 0.18 2/06/2013 6,000
5,150 San Francisco Airport Commission
(LOC - Barclays Bank plc) 0.24 3/20/2013 5,150
----------
11,150
----------
APPROPRIATED DEBT (0.2%)
8,000 Los Angeles Municipal Improvement Corp.
(LOC - Wells Fargo Bank, N.A.) 0.17 4/09/2013 8,000
----------
ASSET-BACKED FINANCING (5.1%)
25,000 Alpine Securitzation Corp.(a),(b) 0.23 2/12/2013 24,998
15,554 Fairway Finance Corp.(a),(b) 0.20 3/20/2013 15,550
35,600 LMA Americas, LLC(a),(b) 0.27 2/06/2013 35,599
25,000 LMA Americas, LLC(a),(b) 0.24 2/11/2013 24,998
20,000 Manhattan Asset Funding Co., LLC(a),(b) 0.21 2/07/2013 19,999
15,000 Manhattan Asset Funding Co., LLC(a),(b) 0.24 3/15/2013 14,996
25,000 Nieuw Amsterdam Receivables Corp.(a),(b) 0.18 2/01/2013 25,000
52,974 Victory Receivables Corp.(a),(b) 0.22 3/08/2013 52,963
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10 | USAA MONEY MARKET FUND
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PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$20,000 Working Capital Management Co.(a),(b) 0.20% 2/22/2013 $ 19,998
21,000 Working Capital Management Co.(a),(b) 0.23 3/14/2013 20,994
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255,095
----------
DIVERSIFIED BANKS (0.5%)
25,000 Gotham Funding Corp. ABS(a),(b) 0.19 2/04/2013 25,000
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EDUCATION (3.7%)
25,000 Board of Regents of Univ. of Texas 0.20 2/05/2013 25,000
25,000 Board of Regents of Univ. of Texas 0.20 2/11/2013 25,000
28,880 Board of Trustees of Michigan State Univ. 0.20 2/05/2013 28,880
28,500 Board of Trustees of Michigan State Univ. 0.18 2/13/2013 28,500
31,000 Emory Univ. 0.20 2/12/2013 31,000
18,000 Emory Univ. 0.20 2/20/2013 18,000
11,292 Univ. of Virginia 0.15 4/03/2013 11,289
19,150 Yale Univ. 0.17 2/20/2013 19,149
----------
186,818
----------
EDUCATION SERVICES (0.4%)
19,200 Cornell Univ. 0.22 5/07/2013 19,189
----------
ELECTRIC/GAS UTILITIES (0.6%)
15,807 New York Power Auth. 0.14 2/11/2013 15,806
14,000 South Carolina Public Service Auth. 0.21 2/20/2013 14,000
----------
29,806
----------
GENERAL OBLIGATION (1.2%)
7,500 Houston 0.22 2/04/2013 7,500
20,500 Houston 0.12 3/01/2013 20,500
10,000 Houston 0.20 5/15/2013 10,000
25,000 Texas Public Finance Auth. 0.20 3/05/2013 25,000
----------
63,000
----------
HEALTH CARE FACILITIES (0.5%)
25,000 Trinity Health Corp. 0.16 4/02/2013 24,993
----------
HOSPITAL (3.2%)
11,600 Catholic Health Initiatives 0.20 2/11/2013 11,600
7,900 Catholic Health Initiatives 0.24 3/12/2013 7,898
12,600 Catholic Health Initiatives 0.19 3/13/2013 12,597
12,000 Catholic Health Initiatives 0.19 4/08/2013 11,996
50,000 Catholic Health Initiatives 0.19 4/09/2013 49,982
10,000 Catholic Health Initiatives 0.19 5/09/2013 9,995
30,000 Inova Health System 0.21 2/13/2013 29,998
30,000 Inova Health System 0.16 4/09/2013 29,991
----------
164,057
----------
================================================================================
PORTFOLIO OF INVESTMENTS | 11
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
MUNICIPAL FINANCE (1.3%)
$54,600 Vermont EDA (LOC - JPMorgan Chase Bank, N.A.) 0.22% 2/06/2013 $ 54,600
11,100 Vermont EDA (LOC - JPMorgan Chase Bank, N.A.) 0.22 2/06/2013 11,100
----------
65,700
----------
SOFT DRINKS (0.2%)
8,500 Coca-Cola Co.(a),(b) 0.23 6/03/2013 8,493
----------
WATER/SEWER UTILITY (0.4%)
22,230 San Diego County Water Auth. 0.17 3/05/2013 22,230
----------
Total Commercial Paper (cost: $883,531) 883,531
----------
PUT BONDS (0.7%)
BUILDINGS (0.3%)
15,000 New York Liberty Dev. Corp. 0.25 12/01/2049 15,000
----------
HOSPITAL (0.4%)
20,000 California Statewide Communities Dev. Auth. 0.24 7/01/2013 20,000
----------
Total Put Bonds (cost: $35,000) 35,000
----------
VARIABLE-RATE DEMAND NOTES (57.9%)
AGRICULTURAL PRODUCTS (2.0%)
4,840 Bybee Foods, LLC (LOC - Key Bank, N.A.) 0.35 11/01/2026 4,840
2,100 Dallam County IDC (LOC - Wells Fargo Bank, N.A.) 0.14 1/01/2027 2,100
15,000 Indiana Finance Auth. 0.14 6/01/2041 15,000
25,000 Iowa Finance Auth. 0.12 6/01/2039 25,000
15,000 Iowa Finance Auth. 0.15 6/01/2036 15,000
35,000 Iowa Finance Auth. 0.14 6/01/2039 35,000
3,360 Washington Economic Dev. Finance Auth.
(LOC - Bank of the West) 0.50 9/01/2032 3,360
----------
100,300
----------
AIRLINES (0.8%)
38,900 Chicago-O'Hare International Airport
(LOC - Bayerische Landesbank) 0.16 5/01/2035 38,900
----------
AIRPORT SERVICES (0.5%)
9,305 Holland-Sheltair Aviation Funding, LLC
(LOC - Federal Home Loan Bank of Atlanta) 0.14 5/01/2035 9,305
13,525 Holland-Sheltair Aviation Funding, LLC
(LOC - Federal Home Loan Bank of Atlanta) 0.14 5/01/2048 13,525
2,200 San Antonio (LOC - Bank of America, N.A.) 0.29 4/01/2020 2,200
----------
25,030
----------
================================================================================
12 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
AIRPORT/PORT (0.5%)
$ 4,680 Cleveland-Cuyahoga County
(LOC - FirstMerit Bank, N.A.) 0.30% 6/01/2031 $ 4,680
8,600 Denver City and County Airport System
(LOC - Lloyds TSB Bank plc) 0.19 11/15/2025 8,600
9,875 San Jose Airport (LIQ) (LOC - Deutsche Bank A.G.)(a) 0.11 3/01/2037 9,875
----------
23,155
----------
ALUMINUM (0.2%)
7,815 Hancock County (LOC - Wells Fargo Bank, N.A.) 0.30 4/01/2028 7,815
----------
APPAREL, ACCESSORIES & LUXURY GOODS (0.1%)
5,550 St. Charles Parish (LOC - Federal Home
Loan Bank of Atlanta) 0.29 9/01/2024 5,550
----------
APPROPRIATED DEBT (0.7%)
16,255 Palm Beach County School District (LIQ)(a) 0.12 2/01/2016 16,255
18,150 Pasadena (LOC - Bank of America, N.A.) 0.10 2/01/2035 18,150
----------
34,405
----------
ASSET-BACKED FINANCING (0.0%)
2,450 Capital Markets Access Co., LLC
(LOC - Federal Home Loan Bank of Atlanta) 0.23 8/01/2031 2,450
----------
AUTO PARTS & EQUIPMENT (0.4%)
2,605 Dayton Wheel Concepts, Inc. (LOC - PNC Bank, N.A.) 0.21 5/01/2024 2,605
4,940 Illinois Finance Auth. (LOC - Federal Home
Loan Bank of Chicago) 0.38 7/01/2040 4,940
3,400 Savanna (LOC - Bank of America, N.A.) 0.35 5/01/2019 3,400
10,000 Shelbyville (LOC - Bank of
Tokyo-Mitsubishi UFJ, Ltd.) 0.14 4/01/2035 10,000
----------
20,945
----------
AUTOMOBILE MANUFACTURERS (0.2%)
10,465 Franklin IDB (LOC - Fifth Third Bank) 0.37 4/01/2030 10,465
----------
AUTOMOTIVE RETAIL (0.1%)
3,303 Kenwood Lincoln-Mercury, Inc. (LOC - PNC Bank, N.A.) 0.21 5/01/2015 3,303
2,125 Kenwood Lincoln-Mercury, Inc. (LOC - PNC Bank, N.A.) 0.21 3/01/2021 2,125
----------
5,428
----------
BROADCASTING (0.0%)
100 New Jersey EDA (LOC - JPMorgan Chase Bank, N.A.) 0.30 10/01/2021 100
----------
================================================================================
PORTFOLIO OF INVESTMENTS | 13
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS (0.9%)
$ 3,880 Atchison (LOC - Key Bank, N.A.) 0.27% 1/01/2033 $ 3,880
4,070 Cornell Iron Works, Inc.
(LOC - Bank of America, N.A.) 0.40 4/01/2019 4,070
3,050 Delaware EDA (LOC - Key Bank, N.A.) 0.27 4/01/2023 3,050
4,400 Manhattan IDB
(LOC - JPMorgan Chase Bank, N.A.) 0.20 4/01/2028 4,400
6,285 Moondance Enterprises, LP
(LOC - PNC Bank, N.A.) 0.21 11/01/2020 6,285
2,700 Sheridan (LOC - PNC Bank, N.A.) 0.20 8/01/2020 2,700
2,550 Tazewell County IDA (LOC - PNC Bank, N.A.) 0.20 2/01/2017 2,550
2,000 Union County (LOC - SunTrust Bank) 0.60 10/01/2027 2,000
3,245 Vulcan, Inc. (LOC - Branch Banking & Trust Co.) 0.20 7/01/2021 3,245
10,000 Warren County (LOC - JPMorgan Chase Bank, N.A.) 0.27 12/01/2031 10,000
2,800 West Des Moines (LOC - Wells Fargo Bank, N.A.) 0.32 4/01/2025 2,800
----------
44,980
----------
BUILDINGS (0.2%)
9,000 Miami-Dade County IDA
(LOC - Manufacturers & Traders Trust Co.) 0.15 11/01/2042 9,000
----------
COMMERCIAL PRINTING (0.4%)
2,733 Fairway, LLC (LOC - Federal Home
Loan Bank of San Francisco) 0.21 12/01/2023 2,733
7,625 Harnett County Industrial Facilities & Pollution
Control Financing Auth.
(LOC - PNC Bank, N.A.) 0.17 9/01/2019 7,625
2,060 John E. Staten Properties, Inc.
(LOC - PNC Bank, N.A.) 0.26 10/01/2021 2,060
3,950 South Carolina Jobs EDA
(LOC - Wells Fargo Bank, N.A.) 0.25 4/01/2033 3,950
1,500 Summit County Port Auth.
(LOC - Key Bank, N.A.) 0.27 7/01/2023 1,500
----------
17,868
----------
COMMUNITY SERVICE (1.4%)
23,225 California Infrastructure and Economic Dev. Bank
(LOC - Bank of America, N.A.) 0.09 7/01/2034 23,225
11,600 Jackson County IDA
(LOC - Commerce Bank, N.A.) 0.13 7/01/2025 11,600
2,915 Rhode Island Health and Educational Building Corp.
(LOC - RBS Citizens, N.A.) 0.15 12/01/2036 2,915
7,505 Toledo Lucas County Port Auth.
(LOC - Fifth Third Bank) 0.20 9/01/2019 7,505
================================================================================
14 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 8,630 Village of Morton Grove
(LOC - Bank of America, N.A.) 0.19% 12/01/2041 $ 8,630
16,305 Wisconsin Public Finance Auth.
(LOC - Fifth Third Bank) 0.20 2/01/2042 16,305
----------
70,180
----------
COMPUTER STORAGE & PERIPHERALS (0.0%)
1,820 Alameda County IDA (LOC - Bank of the West) 0.51 12/01/2040 1,820
----------
CONSTRUCTION & ENGINEERING (0.3%)
17,555 Boland Holdings, LLC (LOC - PNC Bank, N.A.) 0.20 12/01/2039 17,555
----------
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS (0.1%)
4,990 M-B Companies, Inc. (LOC - U.S. Bank, N.A.) 0.26 3/01/2048 4,990
----------
CONSTRUCTION MATERIALS (0.3%)
1,855 Franklin IDB (LOC - Federal Home Loan
Bank of Chicago) 0.21 7/01/2032 1,855
8,900 Paulding County
(LOC - Bayerische Landesbank) 0.29 8/01/2026 8,900
3,815 Schmitz Ready Mix, Inc.
(LOC - Federal Home Loan Bank of Chicago) 0.22 4/01/2046 3,815
----------
14,570
----------
DISTILLERS & VINTNERS (0.0%)
2,200 Kentucky Rural EDA (LOC - PNC Bank, N.A.) 0.20 10/01/2016 2,200
----------
DISTRIBUTORS (0.3%)
15,980 Bhavnani, LLC (LOC - U.S. Bank, N.A.) 0.21 5/01/2038 15,980
----------
DIVERSIFIED CHEMICALS (0.1%)
6,500 Port of Port Arthur Navigation District 0.25 4/01/2033 6,500
----------
DIVERSIFIED METALS & MINING (0.0%)
800 Lancaster IDA (LOC - Fulton Bank) 1.50 1/01/2015 800
1,115 Lancaster IDA (LOC - Fulton Bank) 1.50 1/01/2027 1,115
----------
1,915
----------
DIVERSIFIED REAL ESTATE ACTIVITIES (4.1%)
6,150 Fiore Capital, LLC (LOC - Harris Bank, N.A.) 0.20 8/01/2045 6,150
7,000 Fiore Capital, LLC (LOC - Harris Bank, N.A.) 0.20 8/01/2045 7,000
47,785 New York City Housing Dev. Corp.
(LOC - Landesbank Hessen-Thuringen) 0.19 6/01/2039 47,785
55,150 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.33 5/01/2042 55,150
16,305 NPJ Properties, LP
(LOC - Manufacturers & Traders Trust Co.) 0.55 2/01/2027 16,305
================================================================================
PORTFOLIO OF INVESTMENTS | 15
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$29,540 Paca-Pratt Associates, Inc.
(LOC - Manufacturers & Traders Trust Co.) 0.55% 1/01/2038 $ 29,540
8,130 Pinnacle Properties Dev. Group, LLC
(LOC - Federal Home Loan Bank of Cincinnati) 0.20 6/15/2041 8,130
4,900 Rio Bravo, LLC
(LOC - Wells Fargo Bank, N.A.) 0.25 12/01/2033 4,900
11,345 Scion Real Estate Investments, LLC
(LOC - Fifth Third Bank) 0.32 1/02/2048 11,345
1,080 Secor Realty, Inc. (LOC - PNC Bank, N.A.) 0.21 4/01/2020 1,080
4,400 Stice-Hill Holding, LC
(LOC - Hancock Bank of Louisiana) 1.50 12/01/2023 4,400
13,850 Stobro Co., LP
(LOC - Federal Home Loan Bank of Pittsburgh) 0.36 1/01/2032 13,850
----------
205,635
----------
EDUCATION (3.0%)
17,650 Amherst IDA (LOC - Manufacturers &
Traders Trust Co.) 0.15 10/01/2031 17,650
7,645 Colorado Educational and Cultural Facilities Auth.
(LOC - Fifth Third Bank) 0.20 1/01/2029 7,645
2,000 Colorado Educational and Cultural Facilities Auth.
(LOC - Sovereign Bank) 0.84 7/01/2037 2,000
18,165 Colorado Educational and Cultural Facilities Auth.
(LOC - Fifth Third Bank) 0.20 5/15/2038 18,165
10,000 Massachusetts Dev. Finance Agency
(LOC - RBS Citizens, N.A.) 0.17 7/01/2043 10,000
2,245 Minnesota Higher Education Facilities Auth.
(LOC - U.S. Bank, N.A.) 0.17 4/01/2027 2,245
21,175 Missouri Health and Educational Facilities Auth.
(LOC - Fifth Third Bank) 0.20 7/15/2037 21,175
7,175 Multnomah County (LOC - Key Bank, N.A.) 0.15 12/01/2029 7,175
4,040 Nebraska Elementary and Secondary School
Finance Auth. (LOC - Fifth Third Bank) 0.20 9/01/2029 4,040
3,425 New York City IDA
(LOC - JPMorgan Chase Bank, N.A.) 0.14 12/01/2034 3,425
6,305 Oakland County EDC
(LOC - Comerica Bank, N.A.) 0.15 12/01/2032 6,305
4,400 Ohio Higher Education Facility
(LOC - Key Bank, N.A.) 0.22 1/01/2018 4,400
9,755 Ohio Higher Education Facility
(LOC - Fifth Third Bank) 0.22 9/01/2030 9,755
4,455 Rhode Island Health and Educational
Building Corp. (LOC - RBS Citizens, N.A.) 0.15 4/01/2035 4,455
================================================================================
16 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 3,735 Rockland County IDA (LOC - TD Bank, N.A.) 0.17% 5/01/2034 $ 3,735
9,670 Summit County (LOC - Fifth Third Bank) 0.13 8/01/2030 9,670
10,425 Washington Higher Education Facilities Auth. 0.14 10/01/2031 10,425
9,220 Will County (LOC - Fifth Third Bank) 0.22 12/01/2025 9,220
----------
151,485
----------
EDUCATION SERVICES (2.0%)
7,728 Cornerstone Funding Corp. I (LOC - TD Bank, N.A.) 1.15 1/01/2025 7,728
1,955 Educational Management Corp.
(LOC - Old National Bank) 0.25 5/01/2023 1,955
7,300 Frisch School (LOC - Sovereign Bank) 0.91 5/01/2036 7,300
515 Grove City Church of the Nazarene
(LOC - PNC Bank, N.A.) 0.26 2/01/2024 515
2,920 Indian Creek Christian Church, Inc.
(LOC - Fifth Third Bank) 0.32 1/01/2056 2,920
15,955 Indiana Educational Facilities Auth.
(LOC - RBS Citizens, N.A.) 0.21 10/01/2029 15,955
4,000 Lexington-Fayette Urban County Government
(LOC - Fifth Third Bank) 0.20 1/01/2033 4,000
7,070 Loganville Christian Academy, Inc.
(LOC - Key Bank, N.A.) 0.31 6/01/2038 7,070
14,000 New Jersey EDA (LOC - Sovereign Bank) 0.81 5/01/2036 14,000
5,895 Rhode Island EDC (LOC - RBS Citizens, N.A.) 0.14 3/01/2038 5,895
9,470 Rhode Island Health and Educational
Building Corp. (LOC - RBS Citizens, N.A.) 0.17 6/01/2035 9,470
20,135 Saddleback Valley Community Church
(LOC - Federal Home Loan Bank of San Francisco) 0.13 11/01/2038 20,135
1,420 St. Louis County IDA (LOC - Fifth Third Bank) 0.20 9/01/2038 1,420
3,680 Summit Country Day School
(LOC - U.S. Bank, N.A.) 0.40 2/01/2019 3,680
----------
102,043
----------
ELECTRIC UTILITIES (9.3%)
19,500 Appling County Dev. Auth. 0.15 12/01/2018 19,500
39,900 Appling County Dev. Auth. 0.14 9/01/2041 39,900
3,000 Dade County IDA 0.13 6/01/2021 3,000
25,000 Emery County (LOC - JPMorgan Chase Bank, N.A.) 0.10 7/01/2015 25,000
28,100 Escambia County 0.15 4/01/2039 28,100
38,300 Garfield County Industrial Auth. 0.26 1/01/2025 38,300
4,800 Heard County Dev. Auth. 0.15 12/01/2037 4,800
2,730 Jackson County 0.15 7/01/2022 2,730
20,000 Louisa County 0.14 9/01/2016 20,000
30,000 Louisa County 0.14 10/01/2024 30,000
22,000 Martin County 0.16 7/15/2022 22,000
================================================================================
PORTFOLIO OF INVESTMENTS | 17
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$14,000 Miami-Dade County IDA 0.16% 2/01/2023 $ 14,000
10,600 Mississippi Business Finance Corp. 0.17 7/01/2025 10,600
9,400 Mississippi Business Finance Corp. 0.14 12/01/2027 9,400
13,520 Mississippi Business Finance Corp. 0.17 5/01/2028 13,520
7,250 Mobile IDB 0.15 9/01/2031 7,250
18,065 Monroe County Dev. Auth. 0.14 12/01/2041 18,065
20,000 Muskogee Industrial Trust 0.20 6/01/2027 20,000
20,800 Putnam County IDA 0.11 4/01/2032 20,800
30,000 St. Lucie County 0.16 5/01/2024 30,000
91,400 St. Lucie County 0.12 9/01/2028 91,400
----------
468,365
----------
ELECTRIC/GAS UTILITIES (0.7%)
10,000 Chatom IDB (NBGA) 0.25 8/01/2041 10,000
24,880 New York Energy Research & Dev. Auth.
(LOC - Royal Bank of Scotland plc) 0.10 12/01/2027 24,880
----------
34,880
----------
ELECTRICAL COMPONENTS & EQUIPMENT (0.0%)
845 Tucson IDA (LOC - JPMorgan Chase Bank, N.A.) 0.35 8/01/2025 845
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.1%)
2,785 Putnam County IDA (LOC - RBS Citizens, N.A.) 0.18 7/01/2032 2,785
----------
ENVIRONMENTAL & FACILITIES SERVICES (0.2%)
8,900 New York State Environmental Facilities Corp.
(LOC - JPMorgan Chase Bank, N.A.) 0.13 5/01/2019 8,900
----------
FOOD DISTRIBUTORS (0.4%)
2,625 Alameda County IDA (LOC - Comerica Bank, N.A.) 0.34 12/01/2040 2,625
2,110 Avalon Foodservice, Inc. (LOC - PNC Bank, N.A.) 0.21 6/01/2022 2,110
4,572 CCO, LLC (LOC - Fifth Third Bank) 0.37 9/01/2024 4,572
8,640 Putnam County IDA (LOC - JPMorgan Chase Bank, N.A.) 0.16 12/01/2024 8,640
----------
17,947
----------
FOOD RETAIL (0.2%)
7,820 Saubels Market, Inc. (LOC - Fulton Bank) 1.50 5/01/2034 7,820
----------
FOREST PRODUCTS (0.1%)
5,060 Rex Lumber, LLC (LOC - Federal Home
Loan Bank of Dallas) 0.20 2/01/2022 5,060
----------
GENERAL MERCHANDISE STORES (0.1%)
6,000 Marion EDA (LOC - Key Bank, N.A.) 0.35 2/01/2035 6,000
----------
================================================================================
18 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
GENERAL OBLIGATION (2.1%)
$ 7,500 Bridgeview (LOC - Harris Bank, N.A.) 0.26% 12/01/2038 $ 7,500
11,535 Covington (LOC - U.S. Bank, N.A.) 0.40 12/01/2029 11,535
13,865 Fiddler's Business Improvement District
(LOC - Key Bank, N.A.) 0.30 12/01/2037 13,865
25,000 Fiddler's Business Improvement District
(LOC - Key Bank, N.A.) 0.17 12/01/2038 25,000
9,475 Michigan Charter Township of Commerce
(LOC - Comerica Bank, N.A.) 0.23 10/01/2018 9,475
34,745 Michigan Charter Township of Commerce
(LOC - Federal Home Loan Bank of Boston) 0.17 10/01/2034 34,745
2,100 New York City (LOC - KBC Bank, N.V.) 0.18 8/01/2038 2,100
----------
104,220
----------
HEALTH CARE FACILITIES (4.5%)
12,330 Bronson Lifestyle Improvement & Research Center
(LOC - Fifth Third Bank) 0.30 9/01/2030 12,330
6,500 Capital Markets Access Co., LLC
(LOC - Comerica Bank, N.A.) 0.24 7/01/2025 6,500
800 Columbia County Capital Resource Corp.
(LOC - HSBC Bank USA) 0.22 7/01/2015 800
2,265 Columbia County IDA
(LOC - HSBC Bank USA) 0.22 7/01/2027 2,265
3,010 Community Behavioral Healthcare Cooperative of
Pennsylvania (LOC - Fulton Bank) 1.50 9/01/2027 3,010
3,160 Crozer Keystone Health System
(LOC - TD Bank, N.A.) 0.30 12/15/2021 3,160
1,235 District of Columbia
(LOC - Manufacturers & Traders Trust Co.) 0.55 7/01/2032 1,235
4,435 Dunn Nursing Home, Inc.
(LOC - Federal Home Loan Bank of Atlanta) 0.20 2/01/2024 4,435
3,576 Four Flags Properties, Inc.
(LOC - Fifth Third Bank) 0.37 10/01/2028 3,576
5,200 Genoa Medical Dev., LLC
(LOC - Fifth Third Bank) 0.32 12/01/2045 5,200
5,180 Hamot Surgery Center, LLC
(LOC - PNC Bank, N.A.) 0.21 7/01/2030 5,180
10,700 Healthcare Network Properties, LLC
(LOC - PNC Bank, N.A.) 0.20 1/01/2029 10,700
4,995 Heart Property, LLC (LOC - PNC Bank, N.A.) 0.21 7/01/2026 4,995
4,270 HFDC of Central Texas, Inc.
(LOC - Sovereign Bank) 0.91 11/01/2038 4,270
5,190 IHA Capital Dev., LLC (LOC - Fifth Third Bank) 0.32 6/01/2053 5,190
================================================================================
PORTFOLIO OF INVESTMENTS | 19
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 9,600 Indiana Finance Auth.
(LOC - Bank of America, N.A.) 0.11% 4/01/2038 $ 9,600
1,990 Indiana Finance Auth.
(LOC - Bank of America, N.A.) 0.36 4/01/2038 1,990
2,000 Labcon North America (LOC - Bank of the West) 0.51 1/01/2040 2,000
4,980 Louisiana Public Facilities Auth.
(LOC - Capital One, N.A.) 0.74 7/01/2028 4,980
4,535 MCE MOB IV, LP (LOC - PNC Bank, N.A.) 0.20 8/01/2022 4,535
3,640 Medical Center of Athens
(LOC - Federal Home Loan Bank of Atlanta) 0.25 9/01/2032 3,640
7,685 Medical Properties Investment Co. - Walker, LLC
(LOC - Fifth Third Bank) 0.32 11/01/2035 7,685
7,840 MediLucent MOB I, LP (LOC - PNC Bank, N.A.) 0.20 8/01/2030 7,840
12,800 MMC Corp. (LOC - JPMorgan Chase Bank, N.A.) 0.60 11/01/2035 12,800
12,160 New Tristate Ventures, LLC (LOC - Fifth Third Bank) 0.32 5/01/2026 12,160
3,205 Ohio Presbyterian Retirement Services
(LOC - PNC Bank, N.A.) 0.21 7/01/2033 3,205
4,505 Onondaga County IDA (LOC - HSBC Bank USA) 0.26 1/01/2023 4,505
19,960 OSF Finance Co., LLC (LOC - PNC Bank, N.A.) 0.20 12/01/2037 19,960
2,235 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 2,235
4,005 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 4,005
2,650 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 2,650
1,625 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 1,625
6,915 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 6,915
4,815 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 4,815
3,115 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 3,115
24,070 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.32 8/01/2037 24,070
3,000 Sawmill Creek Lodge Co.
(LOC - Fifth Third Bank) 0.37 10/01/2026 3,000
4,828 Wisconsin Health and Educational Facilities Auth.
(LOC - KBC Bank, N.V.) 0.43 3/01/2038 4,828
3,400 Woodbury County (LOC - Wells Fargo Bank, N.A.) 0.25 12/01/2014 3,400
----------
228,404
----------
================================================================================
20 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
HEALTH CARE SERVICES (0.3%)
$ 8,270 Central Ohio Medical Textiles
(LOC - PNC Bank, N.A.) 0.20% 3/01/2023 $ 8,270
6,540 Kaneville Road Joint Venture
(LOC - Federal Home Loan Bank of Chicago) 0.25 11/01/2032 6,540
----------
14,810
----------
HEALTH MISCELLANEOUS (0.1%)
2,060 Kent Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.20 10/01/2041 2,060
4,585 Michigan Strategic Fund Ltd.
(LOC - Fifth Third Bank) 0.20 8/01/2023 4,585
----------
6,645
----------
HOME FURNISHINGS (0.1%)
3,815 Caddo Parish IDB (LOC - Capital One, N.A.) 0.52 7/01/2024 3,815
295 Maryland EDC (LOC - Manufacturers & Traders
Trust Co.) 0.56 8/01/2016 295
----------
4,110
----------
HOME IMPROVEMENT RETAIL (0.3%)
6,775 Brookhaven IDA (LOC - Capital One, N.A.) 0.52 1/01/2025 6,775
6,300 Savannah EDA (LOC - SunTrust Bank) 0.25 8/01/2025 6,300
----------
13,075
----------
HOSPITAL (1.9%)
3,655 Albany IDA (LOC - RBS Citizens, N.A.) 0.80 5/01/2035 3,655
3,025 Fayette County (LOC - PNC Bank, N.A.) 0.20 8/01/2023 3,025
3,275 Johnson City Health and Educational Facilities Board
(LOC - U.S. Bank, N.A.) 0.19 7/01/2033 3,275
700 Johnson City Health and Educational Facilities Board
(LOC - Mizuho Corporate Bank, Ltd.) 0.19 7/01/2033 700
5,000 Massachusetts Health and Educational Facilities Auth.
(LOC - JPMorgan Chase Bank, N.A.) 0.12 10/01/2049 5,000
7,500 Michigan Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.22 12/01/2032 7,500
7,500 Michigan Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.22 12/01/2032 7,500
15,960 Mountain States Health Alliance
(LOC - Mizuho Corporate Bank, Ltd.) 0.19 7/01/2026 15,960
14,000 Pinellas County Health Facilities Auth.
(LOC - SunTrust Bank) 0.15 7/01/2034 14,000
7,430 Sweetwater County (LOC - Key Bank, N.A.) 0.20 9/01/2037 7,430
18,120 Sweetwater County (LOC - Key Bank, N.A.) 0.32 9/01/2037 18,120
================================================================================
PORTFOLIO OF INVESTMENTS | 21
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 275 Virginia Commonwealth Univ. Health System Auth.
(LOC - Wells Fargo Bank, N.A.) 0.11% 7/01/2030 $ 275
9,125 West Virginia State Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.24 10/01/2033 9,125
----------
95,565
----------
HOTELS, RESORTS & CRUISE LINES (0.4%)
2,915 Connecticut Dev. Auth. (LOC - TD Bank, N.A.) 0.23 12/01/2028 2,915
2,040 Doghouse Properties, LLC
(LOC - Federal Home Loan Bank of Atlanta) 0.40 5/01/2027 2,040
11,955 Forward Corp. (LOC - Fifth Third Bank) 0.32 12/01/2030 11,955
2,000 Massachusetts Port Auth.
(LOC - Royal Bank of Scotland plc) 0.75 3/01/2018 2,000
----------
18,910
----------
INDUSTRIAL CONGLOMERATES (0.1%)
3,300 Guymon Utilities Auth. (LOC - Bank of the West) 0.47 2/01/2023 3,300
----------
INDUSTRIAL MACHINERY (0.2%)
4,455 AL-FE Heat Treating, Inc. (LOC - PNC Bank, N.A.) 0.21 5/01/2021 4,455
2,075 Lynchburg IDA (LOC - PNC Bank, N.A.) 0.20 3/01/2029 2,075
860 Michigan Strategic Fund Ltd.
(LOC - Fifth Third Bank) 0.27 3/01/2023 860
2,655 Trumbull County (LOC - Key Bank, N.A.) 0.27 4/01/2017 2,655
----------
10,045
----------
INTEGRATED OIL & GAS (0.4%)
20,000 Calhoun County Navigation IDA 0.14 1/01/2024 20,000
----------
INTEGRATED TELECOMMUNICATION SERVICES (0.2%)
8,640 South Central Communications Corp.
(LOC - Fifth Third Bank) 0.32 4/01/2018 8,640
----------
LEISURE FACILITIES (0.3%)
5,435 Cattail Creek Country Club, Inc.
(LOC - Manufacturers & Traders Trust Co.) 0.55 3/01/2031 5,435
9,400 Turfway Park, LLC
(LOC - Bank of America, N.A.) 0.55 7/01/2022 9,400
----------
14,835
----------
LEISURE PRODUCTS (0.2%)
4,040 Charter Lakes Capital, LLC
(LOC - U.S. Bank, N.A.) 0.24 10/01/2046 4,040
2,380 Rhode Island Industrial Facilities Corp.
(LOC - TD Bank, N.A.) 0.14 2/01/2021 2,380
4,410 Robert C. Fox Jr. (LOC - Comerica Bank, N.A.) 0.25 6/01/2033 4,410
----------
10,830
----------
================================================================================
22 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
LIFE & HEALTH INSURANCE (0.3%)
$ 2,000 Lavonia O Frick Family Trust
(LOC - Federal Home Loan Bank of Atlanta) 0.20% 12/01/2026 $ 2,000
13,355 Lavonne Johnson Life Insurance Trust
(LOC - Federal Home Loan Bank of Atlanta) 0.20 6/01/2031 13,355
1,850 Ronald Ray Irrevocable Life Insurance Trust
(LOC - Federal Home Loan Bank of Atlanta) 0.20 8/01/2022 1,850
----------
17,205
----------
MARINE (0.1%)
5,885 Washington Economic Dev. Finance Auth.
(LOC - Key Bank, N.A.) 0.60 3/01/2037 5,885
----------
MISCELLANEOUS (0.3%)
13,375 Michigan Municipal Bond Auth.
(LOC - Fifth Third Bank) 0.32 11/01/2037 13,375
----------
MULTI-UTILITIES (0.0%)
1,920 Fulton County Dev. Auth.
(LOC - Credit Agricole Corp. Inv. Bank) 2.75 3/01/2026 1,920
----------
MULTIFAMILY HOUSING (2.3%)
8,325 Alabama Housing Finance Auth.
(LOC - U.S. Bank, N.A.) 0.13 4/01/2037 8,325
8,750 Dallas Housing Finance Corp. (LIQ)(NBGA)(a) 1.10 9/01/2019 8,750
3,440 Montana Board of Housing (LIQ)(NBGA)(a) 1.25 10/01/2033 3,440
10,000 Nebraska Investment Finance Auth.
(LOC - Citibank, N.A.) 0.13 10/01/2042 10,000
4,910 Nevada Housing Division
(LOC - Citibank, N.A.) 0.20 10/01/2035 4,910
3,150 New York Housing Finance Agency
(LOC - Citibank, N.A.) 0.13 5/01/2037 3,150
20,000 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.10 11/01/2038 20,000
3,840 New York Housing Finance Agency
(LOC - Citibank, N.A.) 0.13 5/01/2039 3,840
24,150 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.14 11/01/2041 24,150
4,360 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.17 11/01/2044 4,360
6,000 New York Housing Finance Agency
(LOC - Wells Fargo Bank, N.A.) 0.20 11/01/2049 6,000
500 Phoenix IDA (LOC - Bank of America, N.A.) 0.24 4/01/2033 500
6,820 Southeast Texas Housing
Finance Corp. (LIQ)(NBGA)(a) 1.10 6/01/2019 6,820
================================================================================
PORTFOLIO OF INVESTMENTS | 23
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 6,825 Texas Department of Housing & Community Affairs
(LOC - Citibank, N.A.) 0.12% 12/01/2039 $ 6,825
1,010 Vermont Housing Finance Agency
(LOC - Key Bank, N.A.) 0.27 1/01/2038 1,010
5,310 Washington Housing Finance
Commission (LIQ)(NBGA)(a) 1.10 10/01/2033 5,310
----------
117,390
----------
NURSING/CCRC (2.0%)
2,505 Berks County Municipal Auth.
(LOC - Citizens Bank of Pennsylvania) 0.20 5/15/2022 2,505
4,600 Bucks County IDA
(LOC - Citizens Bank of Pennsylvania) 0.12 1/01/2037 4,600
4,275 Butler County Hospital Auth.
(LOC - Citizens Bank of Pennsylvania) 0.20 10/01/2042 4,275
8,890 Delaware County Auth.
(LOC - Citizens Bank of Pennsylvania) 0.16 4/01/2030 8,890
4,290 Harrisonburg IDA
(LOC - Branch Banking & Trust Co.) 0.10 4/01/2036 4,290
42,300 Illinois Finance Auth.
(LOC - JPMorgan Chase Bank, N.A.) 0.11 9/01/2031 42,300
16,860 Illinois Finance Auth.
(LOC - Bank of America, N.A.) 0.75 5/01/2036 16,860
1,850 Indiana Finance Auth.
(LOC - Federal Home Loan Bank of Indianapolis) 0.20 7/01/2029 1,850
13,925 Jackson County EDC
(LOC - Bank of America, N.A.) 0.15 11/01/2031 13,925
1,200 Lynchburg Redevelopment & Housing Auth.
(LOC - Manufacturers & Traders Trust Co.) 0.55 12/01/2034 1,200
1,035 Roanoke County EDA
(LOC - Branch Banking & Trust Co.) 1.20 10/01/2028 1,035
----------
101,730
----------
PACKAGED FOODS & MEAT (1.0%)
3,710 Brewster Dairy, Inc. (LOC - Bank of Montreal) 0.21 4/03/2023 3,710
12,605 Indianapolis Recovery Zone Facility
(LOC - Fifth Third Bank) 0.20 12/01/2030 12,605
2,635 Lancaster IDA (LOC - Fulton Bank) 1.50 6/01/2027 2,635
1,630 Laurel County (LOC - Rabobank Nederland N.V.) 0.44 3/01/2015 1,630
4,000 Michigan Strategic Fund Ltd.
(LOC - AgriBank, FCB) 0.15 6/01/2024 4,000
7,500 Optima Municipal Auth. (LOC - Bank of the West) 0.47 9/01/2023 7,500
5,895 Oregon State Economic Dev. (LOC - Key Bank, N.A.) 0.27 2/01/2037 5,895
7,500 Premier Mushrooms, Inc. (LOC - CoBank, ACB) 0.20 12/01/2037 7,500
================================================================================
24 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 5,060 St. Tammany Parish
(LOC - Federal Home Loan Bank of Dallas) 0.24% 7/01/2022 $ 5,060
----------
50,535
----------
PAPER PACKAGING (0.0%)
1,325 Washington Finance EDA
(LOC - Wells Fargo Bank, N.A.) 0.25 4/01/2033 1,325
----------
PAPER PRODUCTS (0.1%)
1,110 Jackson Paper Co.
(LOC - Federal Home Loan Bank of Atlanta) 0.40 4/01/2027 1,110
5,600 Willacoochee Dev. Auth.
(LOC - Federal Home Loan Bank of Atlanta) 0.20 5/01/2021 5,600
----------
6,710
----------
PERSONAL PRODUCTS (0.0%)
1,890 Suffolk County IDA (LOC - Citibank, N.A.) 0.51 12/01/2019 1,890
----------
PHARMACEUTICALS (1.5%)
7,000 Montgomery County IDA
(LOC - Landesbank Hessen-Thuringen) 1.15 4/01/2022 7,000
20,000 New Hampshire Business Finance Auth.
(LOC - Landesbank Hessen-Thuringen) 1.15 11/01/2020 20,000
19,500 New Hampshire Business Finance Auth.
(LOC - Landesbank Hessen-Thuringen) 1.15 9/01/2025 19,500
30,000 New Hampshire Business Finance Auth.
(LOC - Landesbank Hessen-Thuringen) 1.15 4/01/2030 30,000
----------
76,500
----------
PUBLISHING (0.1%)
4,180 Falls Church EDA (LOC - Citibank, N.A.) 0.28 7/01/2021 4,180
----------
REAL ESTATE OPERATING COMPANIES (4.4%)
3,845 Beaver Creek Enterprises, Inc.
(LOC - PNC Bank, N.A.) 0.21 3/02/2020 3,845
2,965 Cain Capital Investments, LLC
(LOC - Federal Home Loan Bank of Cincinnati) 0.32 10/01/2046 2,965
31,500 Carew Realty, Inc. (LOC - Fifth Third Bank) 0.32 5/01/2037 31,500
6,165 Congress Commons, LLC
(LOC - Federal Home Loan Bank of Chicago) 0.30 12/01/2050 6,165
8,800 Contra Costa County
(LOC - Bank of America, N.A.) 0.21 4/15/2046 8,800
11,910 Delos, LLC (LOC - Sovereign Bank) 1.59 3/01/2037 11,910
7,040 Donegal Crossing Associates, LLC
(LOC - Federal Home Loan Bank of Pittsburgh) 0.26 8/15/2027 7,040
5,050 East Hempfield IDA (LOC - Fulton Bank) 1.25 10/15/2026 5,050
================================================================================
PORTFOLIO OF INVESTMENTS | 25
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
$ 4,600 EMF, LLC (LOC - Comerica Bank, N.A.) 0.34% 6/01/2042 $ 4,600
5,545 Forsyth County (LOC - Fifth Third Bank) 0.24 1/01/2037 5,545
3,820 Fountains Apartments, LLC (LOC - Fifth Third Bank) 0.27 9/01/2036 3,820
1,750 Fulton County Housing Auth.
(LOC - Federal Home Loan Bank of Atlanta) 0.15 2/01/2041 1,750
7,150 Harlan Dev. Co., LLC (LOC - Fifth Third Bank) 0.32 12/01/2023 7,150
6,645 Harlan Dev. Co., LLC (LOC - Fifth Third Bank) 0.32 12/01/2044 6,645
2,355 Hickory Creek Apartments, LLC
(LOC - Fifth Third Bank) 0.27 9/01/2036 2,355
900 Indianapolis (LOC - RBS Citizens, N.A.) 0.46 11/01/2042 900
2,055 Islip IDA (LOC - Citibank, N.A.) 0.49 11/01/2020 2,055
3,246 J Investments, LLC (LOC - Fifth Third Bank) 0.32 12/01/2055 3,246
6,950 Koar D' Iberville Center
(LOC - Federal Home Loan Bank of Dallas) 0.30 1/01/2033 6,950
4,000 Michigan Equity Group (LOC - Fifth Third Bank) 0.32 12/01/2034 4,000
10,000 Nashville and Davidson County Health and
Educational Facilities Board
(LOC - Fifth Third Bank) 0.22 9/01/2036 10,000
7,000 New York City Housing Dev. Corp.
(LOC - Landesbank Hessen-Thuringen) 0.19 12/01/2036 7,000
33,570 New York City Housing Dev. Corp.
(LOC - RBS Citizens, N.A.) 0.18 3/01/2048 33,570
3,200 Pennsylvania Economic Dev. Financing Auth.
(LOC - PNC Bank, N.A.) 0.20 4/01/2035 3,200
2,365 Richfield Technology Associates, LLC
(LOC - U.S. Bank, N.A.) 0.21 4/01/2020 2,365
4,700 Sugar Creek Finance Co., LLC
(LOC - Northern Trust Co.) 0.21 6/01/2042 4,700
8,050 Sunroad Centrum Apartments 23, LP
(LOC - Comerica Bank, N.A.) 0.22 8/01/2052 8,050
3,565 Syracuse IDA (LOC - Key Bank, N.A.) 0.27 10/01/2039 3,565
2,926 TKBF, LLC (LOC - Fifth Third Bank) 0.32 2/01/2108 2,926
5,000 Univ. of South Florida Foundation, Inc.
(LOC - Bank of America, N.A.) 0.19 8/01/2034 5,000
14,655 Willow Interests, LLC (LOC - Fifth Third Bank) 0.37 4/01/2025 14,655
----------
221,322
----------
REAL ESTATE TAX/FEE (1.0%)
45,261 Irvine (LOC - KBC Bank, N.V.) 0.20 9/02/2050 45,261
4,700 Jasper, Morgan, Newton, & Walton County
(LOC - JPMorgan Chase Bank, N.A.) 0.20 12/01/2020 4,700
----------
49,961
----------
================================================================================
26 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
REGIONAL BANKS (0.1%)
$ 2,700 Cobb County IDA (LOC - Federal Home
Loan Bank of Atlanta) 0.20% 2/01/2030 $ 2,700
----------
RESEARCH & CONSULTING SERVICES (0.5%)
27,820 Fuller Road Management Corp.
(LOC - Key Bank, N.A.) 0.35 7/01/2037 27,820
----------
RESTAURANTS (0.2%)
9,985 Ft. Myers, Inc. (LOC - Fifth Third Bank) 0.32 11/01/2017 9,985
----------
SINGLE FAMILY HOUSING (0.1%)
3,975 Montgomery County (LOC - PNC Bank, N.A.) 0.18 7/01/2039 3,975
----------
SOLID WASTE DISPOSAL (0.0%)
300 Marion County IDA (LOC - SunTrust Bank) 0.25 10/01/2026 300
----------
SPECIAL ASSESSMENT/TAX/FEE (0.4%)
15,000 New York MTA (LOC - KBC Bank, N.V.) 0.32 11/01/2025 15,000
3,200 Sheridan Redevelopment Agency
(LOC - JPMorgan Chase Bank, N.A.) 0.40 12/01/2029 3,200
----------
18,200
----------
SPECIALIZED CONSUMER SERVICES (0.1%)
4,655 Cornerstone Funding Corp. I
(LOC - PNC Bank, N.A.) 1.10 9/01/2025 4,655
----------
SPECIALTY STORES (0.6%)
27,000 Bass Pro Rossford Development Co., LLC
(LOC - Fifth Third Bank) 0.37 11/01/2027 27,000
4,225 Spencer Co., Inc.
(LOC - Federal Home Loan Bank of Atlanta) 0.50 2/01/2021 4,225
----------
31,225
----------
STEEL (0.9%)
23,685 Decatur IDB 0.34 8/01/2036 23,685
10,000 Illinois Finance Auth. (LOC - UniCredit Bank A.G.) 1.95 2/01/2037 10,000
6,405 Klein Steel Services, Inc.
(LOC - Manufacturers & Traders Trust Co.) 0.55 8/01/2025 6,405
2,330 Metaltec Steel Abrasive Co.
(LOC - Comerica Bank, N.A.) 0.28 11/01/2034 2,330
2,500 Mississippi Business Finance Corp.
(LOC - Federal Home Loan Bank of Dallas) 0.30 7/01/2020 2,500
----------
44,920
----------
================================================================================
PORTFOLIO OF INVESTMENTS | 27
================================================================================
----------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
----------------------------------------------------------------------------------------------------------
TOLL ROADS (0.7%)
$ 2,300 New York State Thruway Auth. (LIQ)(a) 0.11% 4/01/2013 $ 2,300
35,000 Orlando-Orange County Expressway Auth.
(LOC - SunTrust Bank) 0.15 7/01/2040 35,000
----------
37,300
----------
WATER/SEWER UTILITY (0.4%)
3,627 Hesperia Public Financing Auth.
(LOC - Bank of America, N.A.) 0.28 6/01/2026 3,627
10,000 North Hudson Sewerage Auth.
(LOC - TD Bank, N.A.) 0.18 6/01/2044 10,000
5,970 West Palm Beach Utility System (LIQ)(a) 0.12 4/01/2014 5,970
----------
19,597
----------
Total Variable-Rate Demand Notes (cost: $2,917,860) 2,917,860
----------
REPURCHASE AGREEMENTS (2.4%)
40,000 Bank of America Securities, 0.13%, acquired
01/31/2013 and due on 02/01/2013 at $40,000
(collateralized by $37,439 of U.S. Treasury Note,
0.13%(c), due 04/15/2017; market value $40,800) 40,000
40,000 Credit Suisse First Boston, LLC, 0.12%, acquired
on 01/31/2013 and due on 02/01/2013 at $40,000
(collateralized by $40,785 of U.S. Treasury Note,
0.25%(c), due 02/15/2015; market value $40,800) 40,000
40,000 Deutsche Bank Securities, 0.15%, acquired on
01/31/2013 and due 02/01/2013 at $40,000
(collateralized by $40,819 of U.S. Treasury Note,
0.25%(c), due 01/31/2015; market value $40,800) 40,000
----------
Total Repurchase Agreements (cost: $120,000) 120,000
----------
TOTAL INVESTMENTS (COST: $5,050,137) $5,050,137
==========
================================================================================
28 | USAA MONEY MARKET FUND
================================================================================
----------------------------------------------------------------------------------------------------------
($ IN 000s) VALUATION HIERARCHY
----------------------------------------------------------------------------------------------------------
(LEVEL 1) (LEVEL 2) (LEVEL 3)
QUOTED PRICES OTHER SIGNIFICANT SIGNIFICANT
IN ACTIVE MARKETS OBSERVABLE UNOBSERVABLE
ASSETS FOR IDENTICAL ASSETS INPUTS INPUTS TOTAL
----------------------------------------------------------------------------------------------------------
Money Market Instruments:
Fixed-Rate Instruments $- $1,093,746 $- $1,093,746
Commercial Paper - 883,531 - 883,531
Put Bonds - 35,000 - 35,000
Variable-Rate Demand Notes - 2,917,860 - 2,917,860
Repurchase Agreements - 120,000 - 120,000
----------------------------------------------------------------------------------------------------------
Total $- $5,050,137 $- $5,050,137
----------------------------------------------------------------------------------------------------------
================================================================================
PORTFOLIO OF INVESTMENTS | 29
================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS
January 31, 2013 (unaudited)
--------------------------------------------------------------------------------
o GENERAL NOTES
Values of securities are determined by procedures and practices discussed in
Note 1 to the financial statements.
The cost of securities at January 31, 2012, for federal income tax purposes,
was approximately the same as reported in 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%. A category percentage of 0.0% represents less than 0.1% of net assets.
o CATEGORIES AND DEFINITIONS
FIXED-RATE INSTRUMENTS -- consist of municipal bonds, notes, and commercial
paper. The interest rate is constant to maturity. Prior to maturity, the
market price of a fixed-rate instrument generally varies inversely to the
movement of interest rates.
COMMERCIAL PAPER -- unsecured promissory notes with maturities ranging from
two to 270 days, issued mainly by the most creditworthy corporations.
Commercial paper is usually purchased at a discount and matures at par
value; however, it also may be interest-bearing.
PUT BONDS -- provide the right to sell the bond at face value at specific
tender dates prior to final maturity. The put feature shortens the effective
maturity of the security.
================================================================================
30 | USAA MONEY MARKET FUND
================================================================================
VARIABLE-RATE DEMAND NOTES (VRDNs) -- provide the right to sell the security
at face value on either that day or within the rate-reset period. The
interest rate is adjusted at a stipulated daily, weekly, monthly, quarterly,
or other specified time interval to reflect current market conditions. The
effective maturity of these instruments is deemed to be less than 397 days
in accordance with detailed regulatory requirements.
o PORTFOLIO ABBREVIATION(S) AND DESCRIPTION(S)
ABS Asset-Backed Financing
CSD Central School District
EDA Economic Development Authority
EDC Economic Development Corp.
IDA Industrial Development Authority/Agency
IDB Industrial Development Board
IDC Industrial Development Corp.
ISD Independent School District
MTA Metropolitan Transportation Authority
CREDIT ENHANCEMENTS -- add 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 values of the securities.
The Fund's investments consist of securities meeting the requirements to
qualify at the time of purchase as "eligible securities" under the
Securities and Exchange Commission (SEC) rules applicable to money market
funds. With respect to quality, eligible securities generally consist of
securities rated in one of the two highest categories for short-term
securities or, if not rated, of comparable quality at the time of purchase.
USAA Asset Management Company (the Manager) also attempts to minimize credit
risk in the Fund through rigorous internal credit research.
================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS | 31
================================================================================
(LIQ) Liquidity enhancement that may, under certain circumstances, provide
for repayment of principal and interest upon demand from one of the
following: Citigroup, Inc., Deutsche Bank A.G., Deutsche Postbank, or
JPMorgan Chase Bank, N.A.
(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 Citigroup, Inc., Minnesota General Obligation, or National Rural
Utility Corp.
o SPECIFIC NOTES
(a) 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 Board of Trustees, unless otherwise noted as
illiquid.
(b) 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 Board of Trustees, unless otherwise
noted as illiquid.
(c) Rates for U.S. Treasury Notes represent the stated coupon payment rate
at time of issuance.
See accompanying notes to financial statements.
================================================================================
32 | USAA MONEY MARKET FUND
================================================================================
STATEMENT OF ASSETS AND LIABILITIES (IN THOUSANDS)
January 31, 2013 (unaudited)
--------------------------------------------------------------------------------
ASSETS
Investments in securities (amortized cost approximates market value) $5,050,137
Cash 11,858
Receivables:
Capital shares sold 9,488
USAA Asset Management Company (Note 4C) 146
Interest 3,962
----------
Total assets 5,075,591
----------
LIABILITIES
Payables:
Securities purchased 24,120
Capital shares redeemed 11,470
Dividends on capital shares 5
Accrued management fees 1,042
Accrued transfer agent's fees 522
Other accrued expenses and payables 139
----------
Total liabilities 37,298
----------
Net assets applicable to capital shares outstanding $5,038,293
==========
NET ASSETS CONSIST OF:
Paid-in capital $5,038,315
Accumulated undistributed net investment income 4
Accumulated net realized loss on investments (26)
----------
Net assets applicable to capital shares outstanding $5,038,293
==========
Capital shares outstanding, unlimited number of shares
authorized, no par value 5,038,838
==========
Net asset value, redemption price, and offering price per share $ 1.00
==========
See accompanying notes to financial statements.
================================================================================
FINANCIAL STATEMENTS | 33
================================================================================
STATEMENT OF OPERATIONS (IN THOUSANDS)
Six-month period ended January 31, 2013 (unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income $ 8,475
-------
EXPENSES
Management fees 6,028
Administration and servicing fees 2,511
Transfer agent's fees 6,699
Custody and accounting fees 312
Postage 155
Shareholder reporting fees 88
Trustees' fees 7
Registration fees 55
Professional fees 104
Other 41
-------
Total expenses 16,000
Expenses reimbursed (7,776)
-------
Net expenses 8,224
-------
NET INVESTMENT INCOME 251
-------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain 50
-------
Increase in net assets resulting from operations $ 301
=======
See accompanying notes to financial statements.
================================================================================
34 | USAA MONEY MARKET FUND
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS)
Six-month period ended January 31, 2013 (unaudited),
and year ended July 31, 2012
---------------------------------------------------------------------------------------
1/31/2013 7/31/2012
---------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 251 $ 1,347
Net realized gain on investments 50 74
----------------------------
Increase in net assets resulting from operations 301 1,421
----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (251) (1,347)
Net realized gains (150) -
----------------------------
Distributions to shareholders (401) (1,347)
----------------------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 1,814,175 3,668,242
Reinvested dividends 397 1,333
Cost of shares redeemed (1,656,084) (3,810,453)
----------------------------
Increase (decrease) in net assets from capital
share transactions 158,488 (140,878)
----------------------------
Net increase (decrease) in net assets 158,388 (140,804)
NET ASSETS
Beginning of period 4,879,905 5,020,709
----------------------------
End of period $ 5,038,293 $ 4,879,905
============================
Accumulated undistributed net investment income:
End of period $ 4 $ 78
============================
CHANGE IN SHARES OUTSTANDING
Shares sold 1,814,175 3,668,242
Shares issued for dividends reinvested 397 1,333
Shares redeemed (1,656,083) (3,810,453)
----------------------------
Increase (decrease) in shares outstanding 158,489 (140,878)
============================
See accompanying notes to financial statements.
================================================================================
FINANCIAL STATEMENTS | 35
================================================================================
NOTES TO FINANCIAL STATEMENTS
January 31, 2013 (unaudited)
--------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USAA MUTUAL FUNDS TRUST (the Trust), registered under the Investment Company Act
of 1940, as amended (the 1940 Act), is an open-end management investment company
organized as a Delaware statutory trust consisting of 50 separate funds. The
information presented in this semiannual report pertains only to the USAA Money
Market Fund (the Fund), which is classified as diversified under the 1940 Act.
The Fund's investment objective is the highest income consistent with
preservation of capital and the maintenance of liquidity.
A. SECURITY VALUATION -- The Trust's Board of Trustees (the Board) has
established the Valuation Committee (the Committee), and subject to Board
oversight, the Committee administers and oversees the Fund's valuation
policies and procedures which are approved by the Board. Among other
things, these policies and procedures allow the Fund to utilize independent
pricing services, quotations from securities dealers, and a wide variety of
sources and information to establish and adjust the fair value of securities
as events occur and circumstances warrant.
The Committee reports to the Board on a quarterly basis and makes
recommendations to the Board as to pricing methodologies and services used
by the Fund and presents additional information to the Board regarding
application of the pricing and fair valuation policies and procedures during
the preceding quarter.
The Committee meets as often as necessary to make pricing and fair value
determinations. In addition, the Committee holds regular monthly meetings to
review prior actions taken by the Committee and USAA
================================================================================
36 | USAA MONEY MARKET FUND
================================================================================
Asset Management Company (the Manager). Among other things, these monthly
meetings include a review and analysis of back testing reports, pricing
service quotation comparisons, illiquid securities and fair value
determinations, pricing movements, and daily stale price monitoring.
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 NYSE is open) as set
forth below:
1. Pursuant to Rule 2a-7 under the 1940 Act, securities in the Fund are
valued at amortized cost, which approximates market value. This method
values a security at its cost on the date of purchase and, thereafter,
assumes a constant amortization to maturity of any premiums or discounts.
2. Repurchase agreements are valued at cost, which approximates market
value.
3. Securities for which amortized cost valuations are considered unreliable
or whose values have been materially affected by a significant event are
valued in good faith at fair value, using methods determined by the
Manager, an affiliate of the Fund, under procedures to stabilize net
asset value (NAV) and valuation procedures approved by the Board.
B. FAIR VALUE MEASUREMENTS -- 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
three-level valuation hierarchy disclosed in the portfolio of investments is
based upon the transparency of inputs to the valuation of an asset or
liability as of the measurement date. The three levels are defined as
follows:
Level 1 -- inputs to the valuation methodology are quoted prices (unadjusted)
in active markets for identical securities.
Level 2 -- inputs to the valuation methodology are other significant
observable inputs, including quoted prices for similar securities, inputs
================================================================================
NOTES TO FINANCIAL STATEMENTS | 37
================================================================================
that are observable for the securities, either directly or indirectly, and
market-corroborated inputs such as market indices.
Level 3 -- inputs to the valuation methodology are unobservable and
significant to the fair value measurement, including the Manager's own
assumptions in determining the fair value.
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.
C. 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.
D. 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.
Interest income is recorded daily on the accrual basis. Premiums and
discounts are amortized over the life of the respective securities using the
straight-line method.
E. REPURCHASE AGREEMENTS -- The Fund may enter into repurchase agreements with
commercial banks or recognized security dealers. These agreements are
collateralized by underlying securities. The collateral obligations are
marked-to-market daily to ensure their value is 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. Repurchase
agreements are subject to credit risk, and the Fund's Manager monitors the
creditworthiness of sellers with which the Fund may enter into repurchase
agreements.
================================================================================
38 | USAA MONEY MARKET FUND
================================================================================
F. SECURITIES PURCHASED 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 can take place a month or more after
the trade date. During the period prior to settlement, these securities do
not earn interest, are subject to market fluctuation, and may increase or
decrease in value prior to their delivery. The Fund maintains segregated
assets with a market value equal to or greater than the amount of its
purchase commitments.
G. EXPENSES PAID INDIRECTLY -- 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
may be used to directly reduce the Fund's expenses. Effective January 1,
2013, the Fund's custodian suspended the bank credit arrangement. For the
six-month period ended January 31, 2013, custodian and other bank credits
reduced the Fund's expenses by less than $500.
H. 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 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.
I. 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) LINE OF CREDIT
The Fund participates in a joint, short-term, revolving, committed loan
agreement of $500 million with USAA Capital Corporation (CAPCO), an affiliate of
the Manager. The purpose of the agreement is to meet
================================================================================
NOTES TO FINANCIAL STATEMENTS | 39
================================================================================
temporary or emergency cash needs, including redemption requests that might
otherwise require the untimely disposition of securities. Subject to
availability, 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 in the amount of 7.0 basis points of the amount of the committed loan
agreement. Prior to September 30, 2012, the Funds were assessed facility fees by
CAPCO in the amount of 7.5 basis points of the amount of the committed 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 January 31, 2013, the Fund paid CAPCO facility
fees of $16,000, which represents 8.7% of the total fees paid to CAPCO by the
USAA Funds. The Fund had no borrowings under this agreement during the six-month
period ended January 31, 2013.
(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 July 31, 2013,
in accordance with applicable tax law.
Net investment income is accrued daily as dividends and distributed to
shareholders monthly. Distributions of 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.
Under the Regulated Investment Company Modernization Act of 2010 (the Act), a
fund is permitted to carry forward net capital losses indefinitely.
Additionally, such capital losses that are carried forward will retain their
character as short-term and or long-term capital losses. Post-enactment capital
loss carryforwards must be used before pre-enactment capital loss carryforwards.
As a result, pre-enactment capital loss carryforwards may be more likely to
expire unused.
================================================================================
40 | USAA MONEY MARKET FUND
================================================================================
For the six-month period ended January 31, 2013, the Fund did not incur any
income tax, interest, or penalties, and has recorded no liability for net
unrecognized tax benefits relating to uncertain income tax positions. On an
ongoing basis the Manager will monitor its tax positions to determine if
adustments to this conclusion are necessary. The statute of limitations on the
Fund's tax return filings generally remain open for the three preceeding fiscal
reporting year ends and remain subject to examination by the Internal Revenue
Service and state taxing authorities.
(4) TRANSACTIONS WITH MANAGER
A. MANAGEMENT FEES -- The Manager carries out the Fund's investment policies
and manages the Fund's portfolio pursuant to an Advisory Agreement. The
Fund's management fees are accrued daily and paid monthly at an annualized
rate of 0.24% of the Fund's average net assets for the fiscal year. For the
six-month period ended January 31, 2013, the Fund incurred management fees,
paid or payable to the Manager, of $6,028,000.
B. ADMINISTRATION AND SERVICING FEES -- The Manager provides certain
administration and servicing functions for the Fund. For such services, the
Manager receives a fee accrued daily and paid monthly at an annualized rate
of 0.10% of the Fund's average net assets. For the six-month period ended
January 31, 2013, the Fund incurred administration and servicing fees, paid
or payable to the Manager, of $2,511,000.
In addition to the services provided under its Administration and Servicing
Agreement with the Fund, the Manager also provides certain compliance and
legal services for the benefit of the Fund. The Board has approved the
reimbursement of a portion of these expenses incurred by the Manager. For
the six-month period ended January 31, 2013, the Fund reimbursed the Manager
$82,000 for these compliance and legal services. These expenses are included
in the professional fees on the Fund's statement of operations.
C. EXPENSE LIMITATION -- The Manager has voluntarily agreed, on a temporary
basis, to reimburse management, administrative, or other
================================================================================
NOTES TO FINANCIAL STATEMENTS | 41
================================================================================
fees to limit the Fund's expenses and attempt to prevent a negative yield.
The Manager can modify or terminate this arrangement at any time. For the
six-month period ended January 31, 2013, the Fund incurred reimbursable
expenses of $7,776,000, of which $146,000 was receivable from the Manager.
D. 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 $25.50 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 January 31, 2013,
the Fund incurred transfer agent's fees, paid or payable to SAS, of
$6,699,000.
E. UNDERWRITING SERVICES -- USAA Investment Management Company provides
exclusive underwriting and distribution of the Fund's shares on a continuing
best-efforts basis and receives no commissions or fees for this service.
(5) TRANSACTIONS WITH AFFILIATES
The Manager is indirectly wholly owned by United Services Automobile Association
(USAA), a large, diversified financial services institution. At January 31,
2013, USAA and its affiliates owned 9,021,000 shares which represent 0.18% of
the Fund.
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.
================================================================================
42 | USAA MONEY MARKET FUND
================================================================================
(6) FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period
is as follows:
SIX-MONTH
PERIOD ENDED
JANUARY 31, YEAR ENDED JULY 31,
----------------------------------------------------------------------------------------
2013 2012 2011 2010 2009 2008
----------------------------------------------------------------------------------------
Net asset value at
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .00(a) .00(a) .00(a) .00(a) .02 .04
Net realized and
unrealized gain .00(a) .00(a) .00(a) .00(a) .00(a) .00(a)
----------------------------------------------------------------------------------------
Total from investment
operations .00(a) .00(a) .00(a) .00(a) .02 .04
----------------------------------------------------------------------------------------
Less distributions from:
Net investment income (.00)(a) (.00)(a) (.00)(a) (.00)(a) (.02) (.04)
Realized capital gains (.00)(a) - - - - -
----------------------------------------------------------------------------------------
Total distributions (.00)(a) (.00)(a) (.00)(a) (.00)(a) (.02) (.04)
----------------------------------------------------------------------------------------
Net asset value at
end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========================================================================================
Total return (%)* .01 .03(e) .02 .16(b) 1.86 3.70
Net assets at
end of period (000) $5,038,293 $4,879,905 $5,020,709 $5,317,166 $6,112,293 $5,833,182
Ratios to average
net assets:**
Expenses (%)(c) .33(d) .34(e) .40 .56(b) .63 .57
Expenses, excluding
reimbursements (%)(c) .64(d) .65(e) .65 .62(b) - -
Net investment
income (%) .01(d) .03 .01 .17 1.83 3.60
* 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 iMoneyNet reported return. Total returns for periods of
less than one year are not annualized.
** For the six-month period ended January 31, 2013, average net assets were
$4,982,755,000.
(a) Represents less than $0.01 per share.
(b) For the year ended July 31, 2010, SAS reimbursed the Fund $817,000 for
corrections in fees paid for the administration and servicing of certain
accounts. The effect of this reimbursement on the Fund's total return was
less than 0.01%. The reimbursement decreased the Fund's expense ratios by
0.01%. This decrease is excluded from the expense ratios in the Financial
Highlights table.
(c) Reflects total operating expenses of the Fund before reductions of any
expenses paid indirectly. The Fund's expenses paid indirectly decreased
the expense ratios by less than 0.01% of average net assets.
(d) Annualized. The ratio is not necessarily indicative of 12 months of
operations.
(e) During the year ended July 31, 2012, SAS reimbursed the Fund $853,000 for
corrections in fees paid for the administration and servicing of certain
accounts. The effect of this reimbursement on the Fund's total return was
less than 0.01%. The reimbursement decreased the Fund's expense ratios by
0.02%. This decrease is excluded from the expense ratios in the Financial
Highlights table.
================================================================================
NOTES TO FINANCIAL STATEMENTS | 43
================================================================================
EXPENSE EXAMPLE
January 31, 2013 (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 August 1, 2012, through
January 31, 2013.
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 use this
================================================================================
44 | USAA MONEY MARKET FUND
================================================================================
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 AUGUST 1, 2012 -
AUGUST 1, 2012 JANUARY 31, 2013 JANUARY 31, 2013
--------------------------------------------------------------
Actual $1,000.00 $1,000.10 $1.66
Hypothetical
(5% return before expenses) 1,000.00 1,023.54 1.68
* Expenses are equal to the Fund's annualized expense ratio of 0.33%, which is
net of any expenses paid indirectly, multiplied by the average account value
over the period, multiplied by 184 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 0.01% for the six-month period of
August 1, 2012, through January 31, 2013.
================================================================================
EXPENSE EXAMPLE | 45
================================================================================
TRUSTEES Daniel S. McNamara
Robert L. Mason, Ph.D.
Barbara B. Ostdiek, Ph.D.
Michael F. Reimherr
Paul L. McNamara
--------------------------------------------------------------------------------
ADMINISTRATOR AND USAA Asset Management Company
INVESTMENT ADVISER P.O. Box 659453
San Antonio, Texas 78265-9825
--------------------------------------------------------------------------------
UNDERWRITER AND USAA Investment Management Company
DISTRIBUTOR P.O. Box 659453
San Antonio, Texas 78265-9825
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
MUTUAL FUND Under "My Accounts" on
SELF-SERVICE 24/7 usaa.com select "Investments,"
AT USAA.COM then "Mutual Funds"
OR CALL Under "Investments" view
(800) 531-USAA account balances, or click
(8722) "I want to...," and select
the desired action.
--------------------------------------------------------------------------------
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-USAA (8722); (ii) at USAA.COM;
and (iii) on the SEC's website 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 without charge (i) at USAA.COM; and
(ii) on the SEC's website 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 at no charge (i) by calling (800) 531-USAA (8722); (ii) at USAA.COM;
and (iii) on the SEC's website at HTTP://WWW.SEC.GOV. These Forms N-Q also may
be reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling (800) 732-0330.
================================================================================
USAA
9800 Fredericksburg Road --------------
San Antonio, TX 78288 PRSRT STD
U.S. Postage
PAID
USAA
--------------
>> SAVE PAPER AND FUND COSTS
Under MY PROFILE on USAA.COM select MANAGE PREFERENCES
Set your DOCUMENT PREFERENCES to USAA DOCUMENTS ONLINE.
[LOGO OF USAA]
USAA WE KNOW WHAT IT MEANS TO SERVE.(R)
=============================================================================
23428-0313 (C)2013, 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. 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.
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 11. CONTROLS AND PROCEDURES
The principal executive officer and principal financial officer of USAA Mutual
Funds 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/S 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 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 12. 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 MUTUAL FUNDS TRUST, Period Ended January 31, 2013
By:* /S/ ADYM W. RYGMYR
-----------------------------------------------------------
Signature and Title: ADYM W. RYGMYR, Secretary
Date: 03/26/2013
------------------------------
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/ DANIEL S. MCNAMARA
-----------------------------------------------------
Signature and Title: Daniel S. McNamara, President
Date: 03/27/2013
------------------------------
By:* /S/ ROBERTO GALINDO, JR.
-----------------------------------------------------
Signature and Title: Roberto Galindo, Jr., Treasurer
Date: 03/27/2013
------------------------------
*Print the name and title of each signing officer under his or her signature.