FORM N-CSR/S
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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: DANIEL J. MAVICO
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, 2014
ITEM 1. SEMIANNUAL REPORT TO STOCKHOLDERS.
USAA MUTUAL FUNDS TRUST - SEMIANNUAL REPORT FOR PERIOD ENDED JANUARY 31, 2014
[LOGO OF USAA]
USAA(R)
[GRAPHIC OF USAA MONEY MARKET FUND]
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SEMIANNUAL REPORT
USAA MONEY MARKET FUND
JANUARY 31, 2014
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PRESIDENT'S MESSAGE
"IN MY OPINION, THE CONTINUATION OF
THE TAPER IS AN INDICATION THAT FED
POLICYMAKERS BELIEVE THE U.S. ECONOMIC [PHOTO OF DANIEL S. McNAMARA]
RECOVERY IS STRENGTHENING."
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FEBRUARY 2014
For much of the reporting period, market sentiment was driven by the potential
for -- and then the reality of -- Federal Reserve (the Fed) "tapering." The Fed
had hinted during the spring of 2013 that it might start reducing its asset
purchase program (also known as quantitative easing, or QE) if U.S. economic
conditions improved. (In September 2012, the U.S. central bank began purchasing
$85 billion of U.S. Treasury securities and mortgage-backed securities every
month to push down long-term interest rates and stimulate economic growth.) The
Fed also continued to reiterate its "forward guidance" -- the promise to hold
short-term interest rates near zero until unemployment falls below 6.5% and
inflation rises above 2.5%.
In general, equity investors seemed to like the Fed's promise of "low rates for
longer" more than they disliked the prospect of the taper. Though stocks had
briefly declined in response to the Fed's springtime "taper talk," they moved
higher overall during the reporting period, reaching new all-time highs in
mid-January 2014. In the bond market, longer-term yields -- especially in
five-year, 10-year, and 30-year maturities -- rose on expectations that the Fed
would begin tapering sooner rather than later. Bond prices, which move in the
opposite direction of yields, declined. However, not all bonds performed the
same way during the reporting period. The fixed-income market is, after all, a
market of bonds and not a single bond market. It comprises different types of
bonds with different maturities and risk characteristics, including U.S.
Treasuries, mortgage-backed securities, investment-grade bonds, high-yield
bonds, municipal securities and more. While U.S. Treasury securities
underperformed during the reporting period, bonds with more exposure to the U.S.
economy's health (I.E., those with credit risk) outperformed.
In December, the Fed announced it would taper its QE asset purchases by $10
billion beginning in January 2014. It subsequently announced additional tapering
of $10 billion in February and suggested it would continue reducing its asset
purchases in $10 billion increments through the end of 2014. In my opinion, the
continuation of the taper is an indication that Fed policymakers believe the
U.S. economic recovery is strengthening. Indeed, near the end of the reporting
period, the U.S. Department of Commerce estimated that fourth-quarter gross
domestic product growth was 3.2%, which was later revised downward to 2.4% on
February 28, 2014. Combined with a third-quarter
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growth rate of 4.1%, the U.S. economy experienced one of its strongest six-month
periods in a decade during the second half of 2013.
In mid-January, stocks underwent a sell-off. According to some observers, the
decline was a response to slowing global economic growth, especially in China
and Brazil, as well as currency weakness in Turkey and South Africa. However, in
my opinion, the predominant driver of market behavior is how investors interpret
macroeconomic data and future earnings trends. Some companies that met or beat
earnings expectations in the fourth-quarter 2013 have guided down forecasts for
coming quarters. Downward earnings guidance feeds into the belief held by many,
including USAA Asset Management Company, that it may be harder than the markets
expect for U.S. companies to find the earnings growth needed to support current
valuations.
Meanwhile, as stocks declined in late January, investors sought safety in U.S.
Treasuries and other conservative fixed-income securities. Though yields trended
down, they generally remained higher at the end of the reporting period than
they were at the beginning. Higher yields mean that investors have the
opportunity to reinvest at higher rates and can potentially earn more on new
investments.
Nevertheless, the shift in market sentiment during January underlines the
importance of diversification. Different asset classes, such as stocks and
bonds, move up and down at different rates and often at different times. I urge
all investors to hold diversified portfolios directly tied to their goals, risk
tolerance and time horizon. It is also a good idea to regularly reassess your
investment risk and rebalance your portfolio. Regular rebalancing can
potentially help you protect your gains and prepare for what happens next.
Looking ahead, I expect U.S. economic growth to continue getting stronger,
albeit slowly. While some investors may believe the economy is already on a
clear path to normalization, I believe the ride will be bumpier than many of us
would like. Rest assured we will continue to monitor economic trends, Fed
policy, geopolitical events, and other factors that could potentially affect
your investments. From all of us at USAA Asset Management Company, thank you for
allowing us to help you with your investment needs.
Sincerely,
/S/ DANIEL S. MCNAMARA
Daniel S. McNamara
President
USAA Investment Management Company
Past performance is no guarantee of future results. o As interest rates
rise, bond prices generally fall; given the historically low interest rate
environment, risks associated with rising interest rates may be heightened.
o Diversification is a technique intended to help reduce risk and does not
guarantee a profit or prevent a loss. o Financial advice provided by USAA
Financial Planning Services Insurance Agency, Inc. (known as USAA Financial
Insurance Agency in California, License # 0E36312), and USAA Financial Advisors,
Inc., a registered broker-dealer.
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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 29
Financial Statements 32
Notes to Financial Statements 35
EXPENSE EXAMPLE 43
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)2014, USAA. All rights reserved.
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FUND OBJECTIVE
THE USAA MONEY MARKET FUND (THE FUND) SEEKS 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 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?
For the six-month period ended January 31, 2014, 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.
USAA Asset Management Company is the Fund's investment adviser. The investment
adviser provides day-to-day discretionary management for the Fund's assets.
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
continued to hold the federal funds target rate between 0% and 0.25%
throughout the reporting period. Despite extremely low absolute yields,
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. o As interest rates rise,
bond prices generally fall; given the historically low interest rate
environment, risks associated with rising interest rates may be heightened.
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2 | USAA MONEY MARKET FUND
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o WHAT WERE MARKET CONDITIONS DURING THE REPORTING PERIOD?
Though progress was uneven, U.S. economic growth continued to improve during
the reporting period, fueling speculation that the Fed would announce a
reduction -- or "taper" -- in the pace of its monthly bond purchases. Interest
rates increased and bond prices (which move in the opposite direction of
rates) declined on expectations of Fed tapering. Rates drifted downward after
the Fed surprised the markets during September with the announcement that it
would continue the pace of its bond purchases. During October and November,
interest rates edged up as investors sought to divine the Fed's future
monetary policy intentions and in response to the partial government shutdown
and debt ceiling debate. The Fed announced in December that it would taper its
asset purchases by $10 billion and subsequently announced an additional $10
billion reduction in its February asset purchases. In January, interest rates
trended down as a drop in stock prices sent many investors into the perceived
safe haven of U.S. Treasury securities.
o WHAT WERE YOUR STRATEGIES IN THIS ENVIRONMENT?
Given that interest rates have been low for a protracted period, variable-rate
demand notes (VRDNs) continued to be a major component in the composition of
the Fund. 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. In
addition, most of these VRDNs are guaranteed by a bank letter of credit for
the payment of both principal and interest; and as a result, they offer a
degree of safety and liquidity for the Fund. Also, we slightly extended the
maturity range of the portfolio's commercial paper purchases and moderately
increased its purchases of certificates of deposit from approved financial
institutions.
To identify securities that we believed represented relative value, we
continued to rely on our team of experienced credit analysts. These skilled
professionals also continued to analyze and monitor every holding in the
portfolio.
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MANAGER'S COMMENTARY ON THE FUND | 3
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o WHAT IS THE OUTLOOK?
Looking ahead, we expect the U.S. economy to continue strengthening during
2014, perhaps at a slightly faster rate than in 2013. This should allow the
Fed to continue scaling back its bond-buying program, though we believe the
Fed will taper gradually so as not to undermine the economic recovery. The Fed
also has said it would continue holding the targeted federal funds rate close
to zero for as long as unemployment is above 6.5% and inflation does not rise
above 2.5%. Consequently, we expect short-term rates to remain low for the
foreseeable future. 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 do what we have always done -- to seek maximum
current income while maintaining the safety and liquidity of your Fund.
We appreciate the opportunity to help you with your investment needs.
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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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1/31/14 7/31/13
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Net Assets $5,262.8 Million $5,140.2 Million
Net Asset Value Per Share $1.00 $1.00
Dollar-Weighted Average
Portfolio Maturity(+) 39 Days 29 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 1/31/14
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8/1/13-1/31/14* 1 Year 5 Years 10 Years
0.01% 0.01% 0.16% 1.68%
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AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/13
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1 Year 5 Years 10 Years
0.01% 0.18% 1.68%
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7-DAY YIELD AS OF 1/31/14 EXPENSE RATIO AS OF 7/31/13**
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Subsidized 0.01% 0.63%
Unsubsidized -0.41%
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, 2013, 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
1/29/2013 0.01% 0.01%
2/26/2013 0.01 0.01
3/26/2013 0.01 0.01
4/30/2013 0.01 0.01
5/28/2013 0.01 0.01
6/25/2013 0.01 0.01
7/30/2013 0.01 0.01
8/27/2013 0.01 0.01
9/24/2013 0.01 0.01
10/29/2013 0.01 0.01
11/26/2013 0.01 0.01
12/31/2013 0.01 0.01
1/28/2014 0.01 0.01
[END CHART]
Data represent the last Tuesday of each month. Ending date 1/28/14.
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
1/31/2004 $10,000.00
2/29/2004 10,004.90
3/31/2004 10,010.00
4/30/2004 10,015.44
5/31/2004 10,020.28
6/30/2004 10,025.97
7/31/2004 10,033.09
8/31/2004 10,041.34
9/30/2004 10,051.04
10/31/2004 10,062.10
11/30/2004 10,074.30
12/31/2004 10,089.93
1/31/2005 10,104.65
2/28/2005 10,120.31
3/31/2005 10,139.08
4/30/2005 10,159.34
5/31/2005 10,180.17
6/30/2005 10,202.43
7/31/2005 10,226.73
8/31/2005 10,252.51
9/30/2005 10,281.01
10/31/2005 10,308.58
11/30/2005 10,338.84
12/31/2005 10,374.33
1/31/2006 10,405.76
2/28/2006 10,438.14
3/31/2006 10,477.55
4/30/2006 10,512.22
5/31/2006 10,552.06
6/30/2006 10,594.55
7/31/2006 10,634.52
8/31/2006 10,678.13
9/30/2006 10,721.88
10/31/2006 10,764.36
11/30/2006 10,807.04
12/31/2006 10,854.29
1/31/2007 10,895.92
2/28/2007 10,936.13
3/31/2007 10,982.14
4/30/2007 11,023.91
5/31/2007 11,068.77
6/30/2007 11,113.56
7/31/2007 11,157.11
8/31/2007 11,207.47
9/30/2007 11,247.89
10/31/2007 11,291.70
11/30/2007 11,334.66
12/31/2007 11,375.84
1/31/2008 11,412.91
2/29/2008 11,443.21
3/31/2008 11,469.90
4/30/2008 11,496.39
5/31/2008 11,523.48
6/30/2008 11,546.41
7/31/2008 11,569.46
8/31/2008 11,593.39
9/30/2008 11,623.08
10/31/2008 11,663.00
11/30/2008 11,684.40
12/31/2008 11,703.77
1/31/2009 11,718.18
2/28/2009 11,729.69
3/31/2009 11,741.82
4/30/2009 11,752.75
5/31/2009 11,764.74
6/30/2009 11,775.44
7/31/2009 11,784.85
8/31/2009 11,791.01
9/30/2009 11,795.18
10/31/2009 11,798.11
11/30/2009 11,799.61
12/31/2009 11,802.37
1/31/2010 11,802.55
2/28/2010 11,802.64
3/31/2010 11,802.74
4/30/2010 11,802.85
5/31/2010 11,802.94
6/30/2010 11,803.04
7/31/2010 11,803.14
8/31/2010 11,803.24
9/30/2010 11,803.33
10/31/2010 11,803.43
11/30/2010 11,803.53
12/31/2010 11,804.96
1/31/2011 11,805.05
2/28/2011 11,805.14
3/31/2011 11,805.24
4/30/2011 11,805.34
5/31/2011 11,805.44
6/30/2011 11,805.54
7/31/2011 11,805.64
8/31/2011 11,805.74
9/30/2011 11,805.84
10/31/2011 11,805.93
11/30/2011 11,806.03
12/31/2011 11,806.14
1/31/2012 11,808.26
2/29/2012 11,808.36
3/31/2012 11,808.46
4/30/2012 11,808.55
5/31/2012 11,808.65
6/30/2012 11,808.75
7/31/2012 11,808.85
8/31/2012 11,808.96
9/30/2012 11,809.05
10/31/2012 11,809.15
11/30/2012 11,809.25
12/31/2012 11,809.70
1/31/2013 11,809.80
2/28/2013 11,809.89
3/31/2013 11,809.99
4/30/2013 11,810.09
5/31/2013 11,810.19
6/30/2013 11,810.28
7/31/2013 11,810.38
8/31/2013 11,810.48
9/30/2013 11,810.58
10/31/2013 11,810.69
11/30/2013 11,810.79
12/31/2013 11,810.95
1/31/2014 11,811.05
[END CHART]
Data from 1/31/04 through 1/31/14.
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 -- 1/31/2014 o
[PIE CHART OF PORTFOLIO MIX]
VARIABLE-RATE DEMAND NOTES 52.2%
COMMERCIAL PAPER 24.2%
FIXED-RATE INSTRUMENTS 21.2%
PUT BONDS 1.1%
[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 9-28.
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8 | USAA MONEY MARKET FUND
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PORTFOLIO OF INVESTMENTS
January 31, 2014 (unaudited)
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PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
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FIXED-RATE INSTRUMENTS (21.2%)
DIVERSIFIED BANKS (14.0%)
$25,000 Abbey National Treasury Services plc 0.22% 3/06/2014 $ 25,000
20,000 Abbey National Treasury Services plc 0.22 3/31/2014 20,000
25,000 Bank of Nova Scotia 0.22 2/24/2014 25,000
25,000 Bank of Nova Scotia 0.31 8/28/2014 25,000
25,000 BNP Paribas S.A. 0.35 2/03/2014 25,000
25,000 BNP Paribas S.A. 0.33 3/04/2014 25,000
25,000 BNP Paribas S.A. 0.30 4/16/2014 25,000
30,000 Canadian Imperial Bank of Commerce 0.32 9/04/2014 30,000
25,000 DnB NOR Bank ASA 0.24 2/19/2014 25,000
25,000 Landesbank Hessen-Thuringen Girozentrale 0.29 5/14/2014 25,000
25,000 Lloyds TSB Bank plc 0.31 2/13/2014 25,000
25,000 Lloyds TSB Bank plc 0.31 2/28/2014 25,000
30,000 Lloyds TSB Bank plc 0.28 5/12/2014 30,000
25,000 Natixis 0.42 2/13/2014 25,000
25,000 Natixis 0.33 4/01/2014 25,000
25,000 Norinchukin Bank 0.27 2/04/2014 25,000
25,000 Norinchukin Bank 0.24 3/04/2014 25,000
25,000 Norinchukin Bank 0.23 3/17/2014 25,000
25,000 Rabobank Nederland N.V. 0.23 4/11/2014 25,000
25,000 Skandinaviska Enskilda Banken AB 0.26 6/12/2014 25,000
30,000 Skandinaviska Enskilda Banken AB 0.26 7/03/2014 30,000
25,000 Skandinaviska Enskilda Banken AB 0.38 10/17/2014 25,000
25,000 Standard Chartered Bank 0.25 6/17/2014 25,000
25,000 Standard Chartered Bank 0.25 6/18/2014 25,000
25,000 Sumitomo Mitsui Banking Corp. 0.21 3/19/2014 25,000
25,000 Sumitomo Mitsui Banking Corp. 0.21 4/10/2014 25,000
25,000 Sumitomo Mitsui Banking Corp. 0.21 4/22/2014 25,000
25,000 Swedbank AB 0.29 5/29/2014 25,000
25,000 Swedbank AB 0.24 10/02/2014 25,000
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735,000
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DIVERSIFIED CAPITAL MARKETS (3.0%)
30,000 Credit Suisse AG 0.25 5/15/2014 30,000
25,000 Credit Suisse AG 0.25 6/05/2014 25,000
25,000 Credit Suisse AG 0.32 6/26/2014 25,000
25,000 Deutsche Bank AG 0.28 5/19/2014 25,000
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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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$30,000 Deutsche Bank AG 0.34% 6/23/2014 $ 30,000
25,000 UBS AG 0.22 4/11/2014 25,000
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160,000
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GENERAL OBLIGATION (1.2%)
8,000 Clinton County 1.00 6/13/2014 8,016
16,730 Cortland Enlarged CSD 1.00 6/27/2014 16,774
17,024 Frontier CSD 1.00 7/23/2014 17,066
7,200 Jamestown CSD 1.00 10/09/2014 7,227
11,750 Schoharie County 1.25 11/14/2014 11,800
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60,883
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INVESTMENT BANKING & BROKERAGE (0.1%)
5,689 Morgan Stanley 6.00 5/13/2014 5,778
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OTHER DIVERSIFIED FINANCIAL SERVICES (1.5%)
24,745 Bank of America Corp. 5.45 7/15/2014 25,308
7,893 JPMorgan Chase & Co. 4.65 6/01/2014 8,005
22,431 JPMorgan Chase & Co. 3.70 1/20/2015 23,107
25,000 Toronto-Dominion Bank 0.31 10/10/2014 25,001
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81,421
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REGIONAL BANKS (1.4%)
25,000 Union Bank, N.A. 0.18 3/07/2014 25,000
25,000 Union Bank, N.A. 0.20 6/05/2014 25,000
25,000 Union Bank, N.A. 0.20 6/09/2014 25,000
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75,000
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Total Fixed-Rate Instruments (cost: $1,118,082) 1,118,082
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COMMERCIAL PAPER (24.2%)
APPROPRIATED DEBT (0.0%)
2,080 San Francisco (LOC - JPMorgan Chase Bank, N.A.) 0.18 3/05/2014 2,080
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ASSET-BACKED FINANCING (9.2%)
25,000 Alpine Securitzation Corp.(a),(b) 0.18 3/03/2014 24,996
4,000 Barton Capital, LLC(a),(b) 0.11 2/06/2014 4,000
15,535 Fairway Finance Corp.(a),(b) 0.19 2/03/2014 15,535
14,715 Fairway Finance Corp.(a),(b) 0.17 2/26/2014 14,713
28,033 Fairway Finance Corp.(a),(b) 0.22 4/08/2014 28,022
30,000 Fairway Finance Corp.(a),(b) 0.15 4/17/2014 29,991
20,000 Gotham Funding Corp.(a),(b) 0.15 2/04/2014 20,000
25,000 Govco, LLC(a),(b) 0.18 4/16/2014 24,991
20,000 Hannover Funding Co., LLC(a),(b) 0.16 2/06/2014 19,999
25,000 Hannover Funding Co., LLC(a),(b) 0.23 2/19/2014 24,997
15,000 Hannover Funding Co., LLC(a),(b) 0.18 3/10/2014 14,997
20,000 Liberty Street Funding, LLC(a),(b) 0.15 2/03/2014 20,000
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10 | USAA MONEY MARKET FUND
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PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$15,000 Liberty Street Funding, LLC(a),(b) 0.17% 2/11/2014 $ 14,999
24,000 Liberty Street Funding, LLC(a),(b) 0.17 4/22/2014 23,991
20,000 Liberty Street Funding, LLC(a),(b) 0.17 4/25/2014 19,992
18,900 LMA Americas, LLC(a),(b) 0.22 4/14/2014 18,891
35,000 Manhattan Asset Funding Co., LLC(a),(b) 0.19 2/21/2014 34,996
35,000 Nieuw Amsterdam Receivables Corp.(a),(b) 0.18 2/10/2014 34,998
25,000 Ridgefield Funding Co., LLC(a) 0.17 2/04/2014 25,000
19,000 Ridgefield Funding Co., LLC(a) 0.21 4/02/2014 18,993
20,000 Victory Receivables Corp.(a),(b) 0.17 3/27/2014 19,995
5,019 Working Capital Management Co.(a),(b) 0.15 2/18/2014 5,019
25,000 Working Capital Management Co.(a),(b) 0.20 4/09/2014 24,991
----------
484,106
----------
EDUCATION (4.0%)
28,300 Emory Univ. 0.20 6/18/2014 28,300
15,000 Johns Hopkins Univ. 0.30 6/18/2014 15,000
25,000 Johns Hopkins Univ. 0.30 6/19/2014 25,000
28,500 Michigan State Univ. 0.11 3/07/2014 28,500
25,000 Univ. of Texas System 0.11 2/18/2014 25,000
18,000 Univ. of Texas System 0.12 4/04/2014 18,000
25,000 Univ. of Texas System 0.10 5/02/2014 25,000
17,500 Univ. of Texas System 0.12 5/02/2014 17,500
11,292 Univ. of Virginia 0.13 2/06/2014 11,292
15,150 Yale Univ. 0.11 2/20/2014 15,149
----------
208,741
----------
EDUCATION SERVICES (1.2%)
10,000 American Univ. 0.20 2/03/2014 10,000
10,000 American Univ. 0.20 2/13/2014 9,999
10,000 American Univ. 0.18 3/13/2014 9,998
15,000 Baylor Univ. 0.15 3/12/2014 14,998
19,200 Cornell Univ. 0.08 2/25/2014 19,199
----------
64,194
----------
ELECTRIC/GAS UTILITIES (1.0%)
26,513 New York Power Auth. 0.09 2/20/2014 26,511
13,000 San Antonio 0.13 3/06/2014 13,000
3,847 South Carolina Public Service Auth. 0.15 3/06/2014 3,847
10,000 South Carolina Public Service Auth. 0.15 3/06/2014 10,000
----------
53,358
----------
GENERAL OBLIGATION (0.5%)
10,000 Houston 0.11 2/19/2014 10,000
15,000 Houston 0.12 3/12/2014 15,000
----------
25,000
----------
================================================================================
PORTFOLIO OF INVESTMENTS | 11
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
HEALTH CARE FACILITIES (1.4%)
$20,000 Baptist Memorial Health Care Corp. 0.18% 2/14/2014 $ 20,000
10,000 Trinity Health Corp. 0.11 3/05/2014 9,999
13,275 Trinity Health Corp. 0.15 3/11/2014 13,273
30,000 Trinity Health Corp. 0.12 5/01/2014 29,991
----------
73,263
----------
HOSPITAL (4.5%)
7,900 Catholic Health Initiatives 0.18 2/05/2014 7,900
47,600 Catholic Health Initiatives 0.15 3/04/2014 47,594
40,000 Catholic Health Initiatives 0.15 3/18/2014 39,992
30,000 Catholic Health Initiatives 0.13 4/09/2014 29,993
11,600 Catholic Health Initiatives 0.17 5/05/2014 11,595
30,000 Inova Health System Foundation 0.12 2/03/2014 30,000
40,000 Inova Health System Foundation 0.12 3/04/2014 39,996
30,000 Inova Health System Foundation 0.11 4/03/2014 29,994
----------
237,064
----------
MUNICIPAL FINANCE (1.7%)
10,685 Vermont EDA (LOC - JPMorgan Chase Bank, N.A.) 0.11 2/05/2014 10,685
77,700 Vermont EDA (LOC - JPMorgan Chase Bank, N.A.) 0.17 2/05/2014 77,700
----------
88,385
----------
SOFT DRINKS (0.7%)
35,000 Coca-Cola Co.(a),(b) 0.19 2/28/2014 34,995
----------
Total Commercial Paper (cost: $1,271,186) 1,271,186
----------
PUT BONDS (1.1%)
BUILDINGS (0.4%)
20,000 New York Liberty Dev. Corp. 0.23 12/01/2049 20,000
----------
ELECTRIC UTILITIES (0.3%)
15,000 Mobile IDB 0.45 7/15/2034 15,000
----------
GENERAL OBLIGATION (0.4%)
25,000 Texas Public Finance Auth. 0.20 5/01/2014 25,000
----------
Total Put Bonds (cost: $60,000) 60,000
----------
VARIABLE-RATE DEMAND NOTES (52.2%)
AGRICULTURAL PRODUCTS (2.2%)
2,100 Dallam County IDC (LOC - Wells Fargo Bank, N.A.) 0.07 1/01/2027 2,100
15,000 Indiana Finance Auth. 0.08 6/01/2041 15,000
15,000 Iowa Finance Auth. 0.07 6/01/2036 15,000
20,000 Iowa Finance Auth. 0.07 9/01/2036 20,000
================================================================================
12 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$25,000 Iowa Finance Auth. 0.06% 6/01/2039 $ 25,000
35,000 Iowa Finance Auth. 0.08 6/01/2039 35,000
3,150 Washington Economic Dev. Finance Auth.
(LOC - Bank of the West) 0.25 9/01/2032 3,150
----------
115,250
----------
AIRLINES (0.7%)
38,900 Chicago-O'Hare International Airport
(LOC - Bayerische Landesbank) 0.09 5/01/2035 38,900
----------
AIRPORT SERVICES (0.1%)
1,815 Des Moines (LOC - U.S. Bank, N.A.) 0.06 8/01/2027 1,815
2,100 San Antonio (LOC - Bank of America, N.A.) 0.21 4/01/2020 2,100
----------
3,915
----------
AIRPORT/PORT (0.4%)
4,520 Cleveland-Cuyahoga County
(LOC - FirstMerit Bank, N.A.) 0.14 6/01/2031 4,520
8,200 Denver City and County Airport System
(LOC - Lloyds TSB Bank plc) 0.07 11/15/2025 8,200
9,875 San Jose Airport (LIQ)
(LOC - Deutsche Bank A.G.)(c) 0.06 3/01/2037 9,875
----------
22,595
----------
ALUMINUM (0.2%)
7,815 Hancock County (LOC - Wells Fargo Bank, N.A.) 0.24 4/01/2028 7,815
----------
APPAREL, ACCESSORIES & LUXURY GOODS (0.1%)
5,270 St. Charles Parish (LOC - Federal Home Loan
Bank of Atlanta) 0.26 9/01/2024 5,270
----------
ASSET-BACKED FINANCING (0.2%)
2,370 Capital Markets Access Co., LLC
(LOC - Federal Home Loan Bank of Atlanta) 0.15 8/01/2031 2,370
5,836 New Hampshire Health and Education
Facilities Auth. (LOC - Royal Bank of Canada) 0.09 12/01/2032 5,836
----------
8,206
----------
AUTO PARTS & EQUIPMENT (0.5%)
2,605 Dayton Wheel Concepts, Inc.
(LOC - PNC Bank, N.A.) 0.18 5/01/2024 2,605
6,000 Illinois Dev. Finance Auth.
(LOC - Bank of Tokyo-Mitsubishi UFJ, Ltd.) 0.07 6/01/2017 6,000
4,665 Illinois Finance Auth.
(LOC - Federal Home Loan Bank of Chicago) 0.28 7/01/2040 4,665
800 Michigan Strategic Fund Ltd.
(LOC - JPMorgan Chase Bank, N.A.) 0.44 5/01/2018 800
================================================================================
PORTFOLIO OF INVESTMENTS | 13
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 3,400 Savanna (LOC - Bank of America, N.A.) 0.26% 5/01/2019 $ 3,400
10,000 Shelbyville (LOC - Bank of
Tokyo-Mitsubishi UFJ, Ltd.) 0.07 4/01/2035 10,000
----------
27,470
----------
AUTOMOBILE MANUFACTURERS (0.2%)
10,120 Franklin IDB (LOC - Fifth Third Bank) 0.35 4/01/2030 10,120
----------
AUTOMOTIVE RETAIL (0.1%)
2,043 Kenwood Lincoln-Mercury, Inc.
(LOC - PNC Bank, N.A.) 0.18 5/01/2015 2,043
1,695 Kenwood Lincoln-Mercury, Inc.
(LOC - PNC Bank, N.A.) 0.18 3/01/2021 1,695
----------
3,738
----------
BIOTECHNOLOGY (0.0%)
2,115 Washington Economic Dev. Finance Auth.
(LOC - U.S. Bank, N.A.) 0.07 6/01/2027 2,115
----------
BUILDING PRODUCTS (0.7%)
3,410 Atchison (LOC - Key Bank, N.A.) 0.20 1/01/2033 3,410
4,030 Cornell Iron Works, Inc.
(LOC - Bank of America, N.A.) 0.36 4/01/2019 4,030
2,640 Delaware EDA (LOC - Key Bank, N.A.) 0.20 4/01/2023 2,640
4,000 Manhattan IDB (LOC - JPMorgan Chase Bank, N.A.) 0.15 4/01/2028 4,000
5,585 Moondance Enterprises, LP (LOC - PNC Bank, N.A.) 0.16 11/01/2020 5,585
2,700 Sheridan (LOC - PNC Bank, N.A.) 0.11 8/01/2020 2,700
1,950 Tazewell County IDA (LOC - PNC Bank, N.A.) 0.11 2/01/2017 1,950
10,000 Warren County (LOC - JPMorgan Chase Bank, N.A.) 0.20 12/01/2031 10,000
2,725 West Des Moines (LOC - Wells Fargo Bank, N.A.) 0.25 4/01/2025 2,725
----------
37,040
----------
COMMERCIAL PRINTING (0.3%)
2,050 Blair County IDA (LOC - PNC Bank, N.A.) 0.11 9/01/2017 2,050
1,795 Colorado Housing and Finance Auth.
(LOC - Wells Fargo Bank, N.A.) 0.25 5/01/2027 1,795
2,485 Fairway, LLC (LOC - Federal Home
Loan Bank of San Francisco) 0.12 12/01/2023 2,485
6,615 Harnett County Industrial Facilities &
Pollution Control Financing Auth.
(LOC - PNC Bank, N.A.) 0.09 9/01/2019 6,615
1,870 John E. Staten Properties, Inc.
(LOC - PNC Bank, N.A.) 0.18 10/01/2021 1,870
1,500 Summit County Port Auth.
(LOC - Key Bank, N.A.) 0.20 7/01/2023 1,500
----------
16,315
----------
================================================================================
14 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
COMMUNITY SERVICE (0.9%)
$11,600 Jackson County IDA
(LOC - Commerce Bank, N.A.) 0.09% 7/01/2025 $ 11,600
2,830 Rhode Island Health and Educational Building Corp.
(LOC - RBS Citizens, N.A.) 0.40 12/01/2036 2,830
6,705 Toledo Lucas County Port Auth.
(LOC - Fifth Third Bank) 0.11 9/01/2019 6,705
8,415 Village of Morton Grove
(LOC - Bank of America, N.A.) 0.07 12/01/2041 8,415
16,305 Wisconsin Public Finance Auth.
(LOC - Fifth Third Bank) 0.16 2/01/2042 16,305
----------
45,855
----------
COMPUTER STORAGE & PERIPHERALS (0.0%)
1,590 Alameda County IDA (LOC - Bank of the West) 0.22 12/01/2040 1,590
----------
CONSTRUCTION & ENGINEERING (0.3%)
17,250 Boland Holdings, LLC (LOC - PNC Bank, N.A.) 0.14 12/01/2039 17,250
900 Mississippi Business Finance Corp.
(LOC - Capital One, N.A.) 0.45 10/01/2022 900
----------
18,150
----------
CONSTRUCTION MATERIALS (0.2%)
1,855 Franklin IDB
(LOC - Federal Home Loan Bank of Chicago) 0.13 7/01/2032 1,855
8,900 Paulding County (LOC - Bayerische Landesbank) 0.21 8/01/2026 8,900
----------
10,755
----------
DISTILLERS & VINTNERS (0.0%)
2,000 Kentucky Rural EDA (LOC - PNC Bank, N.A.) 0.11 10/01/2016 2,000
----------
DISTRIBUTORS (0.3%)
15,710 Bhavnani, LLC (LOC - U.S. Bank, N.A.) 0.17 5/01/2038 15,710
----------
DIVERSIFIED CHEMICALS (0.1%)
6,500 Port of Port Arthur Navigation District 0.20 4/01/2033 6,500
----------
DIVERSIFIED REAL ESTATE ACTIVITIES (4.2%)
7,000 Fiore Capital, LLC (LOC - Harris Bank, N.A.) 0.15 8/01/2045 7,000
6,150 Fiore Capital, LLC (LOC - Harris Bank, N.A.) 0.15 8/01/2045 6,150
16,065 Kansas City Tax Financing Commission
(LOC - Key Bank, N.A.) 0.22 6/01/2024 16,065
47,085 New York City Housing Dev. Corp.
(LOC - Landesbank Hessen-Thuringen) 0.10 6/01/2039 47,085
58,400 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.09 5/01/2042 58,400
================================================================================
PORTFOLIO OF INVESTMENTS | 15
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$15,625 NPJ Properties, LP (LOC - Manufacturers &
Traders Trust Co.)(a) 0.51% 2/01/2027 $ 15,625
28,965 Paca-Pratt Associates, Inc.
(LOC - Manufacturers & Traders Trust Co.) 0.51 1/01/2038 28,965
7,866 Pinnacle Properties Dev. Group, LLC
(LOC - Federal Home Loan Bank of Cincinnati) 0.15 6/15/2041 7,866
4,900 Rio Bravo, LLC (LOC - Wells Fargo Bank, N.A.) 0.21 12/01/2033 4,900
10,900 Scion Real Estate Investments, LLC
(LOC - Fifth Third Bank) 0.30 1/02/2048 10,900
915 Secor Realty, Inc. (LOC - PNC Bank, N.A.) 0.18 4/01/2020 915
4,000 Stice-Hill Holding, LC (LOC - Hancock Bank of
Louisiana) 1.50 12/01/2023 4,000
13,435 Stobro Co., LP (LOC - Federal Home Loan Bank
of Pittsburgh) 0.17 1/01/2032 13,435
----------
221,306
----------
EDUCATION (2.0%)
17,045 Amherst IDA (LOC - Manufacturers & Traders
Trust Co.) 0.09 10/01/2031 17,045
7,215 Colorado Educational and Cultural Facilities Auth.
(LOC - Fifth Third Bank) 0.16 1/01/2029 7,215
10,000 Massachusetts Dev. Finance Agency
(LOC - RBS Citizens, N.A.) 0.40 7/01/2043 10,000
1,440 Minnesota Higher Education Facilities Auth.
(LOC - U.S. Bank, N.A.) 0.16 4/01/2027 1,440
8,040 Missouri Health and Educational Facilities Auth.
(LOC - Fifth Third Bank) 0.16 7/15/2037 8,040
3,860 Nebraska Elementary and Secondary School
Finance Auth. (LOC - Fifth Third Bank) 0.16 9/01/2029 3,860
2,410 New York City IDA (LOC - JPMorgan Chase
Bank, N.A.) 0.07 12/01/2034 2,410
20,000 New York City IDA (LOC - Key Bank, N.A.) 0.11 7/01/2038 20,000
9,325 Ohio Higher Education Facility
(LOC - Fifth Third Bank) 0.17 9/01/2030 9,325
3,650 Rockland County IDA (LOC - TD Bank, N.A.) 0.13 5/01/2034 3,650
9,495 Summit County Port Auth. (LOC - Fifth Third Bank) 0.09 8/01/2030 9,495
10,390 Washington Higher Education Facilities Auth. 0.09 10/01/2031 10,390
----------
102,870
----------
EDUCATION SERVICES (1.5%)
7,328 Cornerstone Funding Corp. I (LOC - TD Bank, N.A.) 1.14 1/01/2025 7,328
1,655 Educational Management Corp.
(LOC - Old National Bank) 0.21 5/01/2023 1,655
7,150 Frisch School (LOC - Sovereign Bank) 1.27 5/01/2036 7,150
================================================================================
16 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 2,838 Indian Creek Christian Church, Inc.
(LOC - Fifth Third Bank) 0.30% 1/01/2056 $ 2,838
4,000 Lexington-Fayette Urban County Government
(LOC - Fifth Third Bank) 0.17 1/01/2033 4,000
13,540 Massachusetts Health & Educational Facilities Auth.
(LOC - Bank of America, N.A.) 0.13 10/01/2034 13,540
13,700 New Jersey EDA (LOC - Sovereign Bank) 1.24 5/01/2036 13,700
5,750 Rhode Island EDC (LOC - RBS Citizens, N.A.) 0.40 3/01/2038 5,750
19,710 Saddleback Valley Community Church
(LOC - Federal Home Loan Bank of San Francisco) 0.09 11/01/2038 19,710
3,230 Summit County Day School (LOC - U.S. Bank, N.A.) 0.30 2/01/2019 3,230
----------
78,901
----------
ELECTRIC UTILITIES (8.5%)
19,500 Appling County Dev. Auth. 0.05 12/01/2018 19,500
39,900 Appling County Dev. Auth. 0.05 9/01/2041 39,900
11,600 Burke County Dev. Auth. 0.04 7/01/2049 11,600
6,000 Dade County IDA 0.05 6/01/2021 6,000
33,100 Escambia County 0.06 4/01/2039 33,100
38,300 Garfield County Industrial Auth. 0.17 1/01/2025 38,300
4,800 Heard County Dev. Auth. 0.05 12/01/2037 4,800
5,000 Indiana Dev. Finance Auth. 0.35 12/01/2038 5,000
2,730 Jackson County 0.06 7/01/2022 2,730
20,000 Louisa County 0.06 9/01/2016 20,000
30,000 Louisa County 0.06 10/01/2024 30,000
22,000 Martin County 0.07 7/15/2022 22,000
15,000 Miami-Dade County IDA 0.06 2/01/2023 15,000
10,600 Mississippi Business Finance Corp. 0.07 7/01/2025 10,600
9,400 Mississippi Business Finance Corp. 0.06 12/01/2027 9,400
13,520 Mississippi Business Finance Corp. 0.07 5/01/2028 13,520
7,250 Mobile IDB 0.06 9/01/2031 7,250
20,000 Muskogee Industrial Trust 0.10 6/01/2027 20,000
20,800 Putnam County IDA 0.04 4/01/2032 20,800
30,000 St. Lucie County 0.06 5/01/2024 30,000
86,400 St. Lucie County 0.06 9/01/2028 86,400
----------
445,900
----------
ELECTRIC/GAS UTILITIES (1.1%)
10,000 Chatom IDB (NBGA) 0.19 8/01/2041 10,000
22,700 Long Island Power Auth.
(LOC - Bayerische Landesbank) 0.09 5/01/2033 22,700
24,880 New York Energy Research & Dev. Auth.
(LOC - Royal Bank of Scotland plc) 0.04 12/01/2027 24,880
----------
57,580
----------
================================================================================
PORTFOLIO OF INVESTMENTS | 17
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
ELECTRICAL COMPONENTS & EQUIPMENT (0.0%)
$ 1,000 Colorado Housing and Finance Auth.
(LOC - Wells Fargo Bank, N.A.) 0.25% 8/01/2030 $ 1,000
1,060 Colorado Housing and Finance Auth.
(LOC - Wells Fargo Bank, N.A.) 0.25 10/01/2032 1,060
----------
2,060
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.1%)
5,115 Putnam County IDA (LOC - RBS Citizens, N.A.) 0.47 7/01/2032 5,115
----------
ENVIRONMENTAL & FACILITIES SERVICES (0.2%)
8,900 New York State Environmental Facilities Corp.
(LOC - JPMorgan Chase Bank, N.A.) 0.05 5/01/2019 8,900
----------
FOOD DISTRIBUTORS (0.1%)
1,725 Alameda County IDA (LOC - Comerica Bank, N.A.) 0.19 12/01/2040 1,725
4,202 CCO, LLC (LOC - Fifth Third Bank) 0.35 9/01/2024 4,202
----------
5,927
----------
FOOD RETAIL (0.1%)
7,380 Saubels Market, Inc. (LOC - Fulton Bank) 1.20 5/01/2034 7,380
----------
FOREST PRODUCTS (0.1%)
5,400 Rex Lumber, LLC (LOC - Federal Home Loan
Bank of Dallas) 0.15 2/01/2022 5,400
----------
GENERAL MERCHANDISE STORES (0.1%)
6,100 Marion EDA (LOC - Key Bank, N.A.) 0.22 2/01/2035 6,100
----------
GENERAL OBLIGATION (1.9%)
7,500 Bridgeview (LOC - Harris Bank, N.A.) 0.18 12/01/2038 7,500
11,090 Covington (LOC - U.S. Bank, N.A.) 0.30 12/01/2029 11,090
8,325 Michigan Charter Township of Commerce
(LOC - Comerica Bank, N.A.) 0.22 10/01/2018 8,325
34,645 Michigan Charter Township of Commerce
(LOC - Federal Home Loan Bank of Boston) 0.16 10/01/2034 34,645
38,600 New York City (LOC - KBC Bank N.V.) 0.05 8/01/2038 38,600
----------
100,160
----------
HEALTH CARE FACILITIES (3.9%)
5,360 Alexandria IDA (LOC - Bank of America, N.A.) 0.17 7/01/2030 5,360
11,370 Bronson Lifestyle Improvement & Research Center
(LOC - Fifth Third Bank) 0.23 9/01/2030 11,370
550 Columbia County Capital Resource Corp.
(LOC - HSBC Bank USA) 0.16 7/01/2015 550
2,155 Columbia County IDA (LOC - HSBC Bank USA) 0.16 7/01/2027 2,155
2,885 Community Behavioral Healthcare Cooperative
of Pennsylvania (LOC - Fulton Bank) 1.20 9/01/2027 2,885
================================================================================
18 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 2,965 Crozer Keystone Health System
(LOC - TD Bank, N.A.) 0.25% 12/15/2021 $ 2,965
995 District of Columbia
(LOC - Manufacturers & Traders Trust Co.) 0.51 7/01/2032 995
4,215 Dunn Nursing Home, Inc.
(LOC - Federal Home Loan Bank of Atlanta) 0.15 2/01/2024 4,215
7,465 Genoa Medical Dev., LLC (LOC - Fifth Third Bank) 0.30 12/01/2045 7,465
8,325 Healthcare Network Properties, LLC
(LOC - PNC Bank, N.A.) 0.12 1/01/2029 8,325
4,710 Heart Property, LLC (LOC - PNC Bank, N.A.) 0.16 7/01/2026 4,710
5,065 IHA Capital Dev., LLC (LOC - Fifth Third Bank) 0.30 6/01/2053 5,065
1,790 Labcon North America (LOC - Bank of the West) 0.22 1/01/2040 1,790
4,560 Louisiana Public Facilities Auth.
(LOC - Capital One, N.A.) 0.71 7/01/2028 4,560
4,125 MCE MOB IV, LP (LOC - PNC Bank, N.A.) 0.14 8/01/2022 4,125
3,550 Medical Center of Athens
(LOC - Federal Home Loan Bank of Atlanta) 0.21 9/01/2032 3,550
7,285 Medical Properties Investment Co.
(LOC - Fifth Third Bank) 0.30 11/01/2035 7,285
7,710 MediLucent MOB I, LP (LOC - PNC Bank, N.A.) 0.14 8/01/2030 7,710
12,515 MMC Corp. (LOC - JPMorgan Chase Bank, N.A.) 0.52 11/01/2035 12,515
11,445 New Tristate Ventures, LLC (LOC - Fifth Third Bank) 0.30 5/01/2026 11,445
3,130 Ohio Presbyterian Retirement Services
(LOC - PNC Bank, N.A.) 0.16 7/01/2033 3,130
4,160 Onondaga County IDA (LOC - HSBC Bank USA) 0.16 1/01/2023 4,160
19,760 OSF Finance Co., LLC (LOC - PNC Bank, N.A.) 0.12 12/01/2037 19,760
2,610 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 2,610
1,585 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 1,585
6,805 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 6,805
4,740 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 4,740
3,065 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 3,065
3,940 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 3,940
2,200 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 2,200
23,695 Premier Senior Living, LLC
(LOC - Wells Fargo Bank, N.A.) 0.29 8/01/2037 23,695
5,655 Sawmill Creek Lodge Co. (LOC - Fifth Third Bank) 0.35 10/01/2026 5,655
================================================================================
PORTFOLIO OF INVESTMENTS | 19
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 3,055 Syracuse IDA (LOC - HSBC Bank USA) 0.16% 1/01/2023 $ 3,055
5,955 Wisconsin Health and Educational Facilities Auth.
(LOC - KBC Bank N.V.) 0.21 3/01/2038 5,955
3,400 Woodbury County (LOC - Wells Fargo Bank, N.A.) 0.21 12/01/2014 3,400
----------
202,795
----------
HEALTH CARE SERVICES (0.3%)
7,665 Central Ohio Medical Textiles
(LOC - PNC Bank, N.A.) 0.14 3/01/2023 7,665
6,480 Kaneville Road Joint Venture
(LOC - Federal Home Loan Bank of Chicago) 0.15 11/01/2032 6,480
----------
14,145
----------
HEALTH MISCELLANEOUS (0.1%)
2,060 Kent Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.17 10/01/2041 2,060
4,235 Michigan Strategic Fund Ltd.
(LOC - Fifth Third Bank) 0.17 8/01/2023 4,235
----------
6,295
----------
HOME FURNISHINGS (0.3%)
3,560 Caddo Parish IDB (LOC - Capital One, N.A.) 0.23 7/01/2024 3,560
4,465 California Infrastructure and
Economic Dev. Bank (NBGA) 0.06 11/01/2029 4,465
2,000 Fulton County Dev. Auth.
(LOC - Wells Fargo Bank, N.A.) 0.22 6/01/2027 2,000
2,300 Jasper County IDA
(LOC - JPMorgan Chase Bank, N.A.) 0.24 8/01/2016 2,300
2,000 Michigan Strategic Fund Ltd.
(LOC - JPMorgan Chase Bank, N.A.) 0.08 9/01/2030 2,000
2,050 Walton County Industrial Building Auth.
(LOC - Wells Fargo Bank, N.A.) 0.22 10/01/2017 2,050
----------
16,375
----------
HOME IMPROVEMENT RETAIL (0.1%)
6,350 Brookhaven IDA (LOC - Capital One, N.A.) 0.44 1/01/2025 6,350
----------
HOSPITAL (1.2%)
3,505 Albany IDA (LOC - RBS Citizens, N.A.) 0.97 5/01/2035 3,505
2,815 Fayette County (LOC - PNC Bank, N.A.) 0.18 8/01/2023 2,815
2,780 Johnson City Health and Educational
Facilities Board (LOC - U.S. Bank, N.A.) 0.14 7/01/2033 2,780
12,845 Massachusetts Health and Educational
Facilities Auth. (LOC - Wells Fargo Bank, N.A.) 0.04 7/01/2039 12,845
7,500 Michigan Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.17 12/01/2032 7,500
================================================================================
20 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 7,500 Michigan Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.17% 12/01/2032 $ 7,500
6,445 Mountain States Health Alliance
(LOC - Mizuho Corporate Bank Ltd.) 0.12 7/01/2026 6,445
9,265 Nassau Health Care Corp.
(LOC - JPMorgan Chase Bank, N.A.) 0.13 8/01/2022 9,265
2,500 Small Business Financing Auth.
(LOC - PNC Bank, N.A.) 0.05 7/01/2042 2,500
8,810 West Virginia State Hospital Finance Auth.
(LOC - Fifth Third Bank) 0.15 10/01/2033 8,810
----------
63,965
----------
HOTELS, RESORTS & CRUISE LINES (0.4%)
2,810 Connecticut Dev. Auth. (LOC - TD Bank, N.A.) 0.21 12/01/2028 2,810
1,930 Doghouse Properties, LLC
(LOC - Federal Home Loan Bank of Atlanta) 0.22 5/01/2027 1,930
10,765 Forward Corp. (LOC - Fifth Third Bank) 0.30 12/01/2030 10,765
3,500 Massachusetts Port Auth.
(LOC - Royal Bank of Scotland plc)(a) 0.70 3/01/2018 3,500
----------
19,005
----------
INDUSTRIAL MACHINERY (0.2%)
3,625 AL-FE Heat Treating, Inc. (LOC - PNC Bank, N.A.) 0.16 5/01/2021 3,625
3,530 Fulton County Dev. Auth.
(LOC - Federal Home Loan Bank of Atlanta) 0.12 5/01/2030 3,530
2,075 Lynchburg IDA (LOC - PNC Bank, N.A.) 0.11 3/01/2029 2,075
840 Michigan Strategic Fund Ltd.
(LOC - Fifth Third Bank) 0.21 3/01/2023 840
2,090 Trumbull County (LOC - Key Bank, N.A.) 0.20 4/01/2017 2,090
----------
12,160
----------
INTEGRATED OIL & GAS (0.7%)
20,000 Calhoun County Navigation IDA 0.09 1/01/2024 20,000
17,005 California Municipal Finance Auth. 0.02 12/01/2029 17,005
----------
37,005
----------
INTEGRATED TELECOMMUNICATION SERVICES (0.1%)
7,170 South Central Communications Corp.
(LOC - Fifth Third Bank) 0.30 4/01/2018 7,170
----------
LEISURE FACILITIES (0.3%)
5,180 Cattail Creek Country Club, Inc.
(LOC - Manufacturers & Traders Trust Co.) 0.51 3/01/2031 5,180
9,400 Turfway Park, LLC (LOC - Bank of America, N.A.) 0.49 7/01/2022 9,400
----------
14,580
----------
================================================================================
PORTFOLIO OF INVESTMENTS | 21
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
LEISURE PRODUCTS (0.2%)
$ 5,715 Charter Lakes Capital, LLC (LOC - U.S. Bank, N.A.) 0.20% 10/01/2046 $ 5,715
2,110 Rhode Island Industrial Facilities Corp.
(LOC - TD Bank, N.A.) 0.11 2/01/2021 2,110
----------
7,825
----------
LIFE & HEALTH INSURANCE (0.7%)
5,090 Larry L. Henry 2013 Family Trust
(LOC - Wells Fargo Bank, N.A.) 0.15 11/01/2033 5,090
3,950 Lavonia O. Frick Family Trust
(LOC - Wells Fargo Bank, N.A.) 0.15 8/01/2028 3,950
13,355 Lavonne Johnson Life Insurance Trust
(LOC - Federal Home Loan Bank of Atlanta) 0.15 6/01/2031 13,355
8,870 Lynette J. Keane Insurance Trust
(LOC - Wells Fargo Bank, N.A.) 0.15 10/01/2033 8,870
5,565 Raymon Lee Ince Irrevocable Trust
(LOC - Bank of Oklahoma, N.A.) 0.15 7/01/2033 5,565
1,850 Ronald Ray Irrevocable Life Insurance Trust
(LOC - Federal Home Loan Bank of Atlanta) 0.15 8/01/2022 1,850
----------
38,680
----------
MARINE (0.1%)
5,425 Washington Economic Dev. Finance Auth.
(LOC - Key Bank, N.A.) 0.56 3/01/2037 5,425
----------
MOVIES & ENTERTAINMENT (0.3%)
14,110 Esplanade Theatres, LLC
(LOC - Federal Home Loan Bank of Dallas) 0.26 11/01/2042 14,110
2,500 Kenner Theatres, LLC
(LOC - Federal Home Loan Bank of Dallas) 0.26 2/01/2042 2,500
----------
16,610
----------
MULTIFAMILY HOUSING (2.7%)
8,285 Alabama Housing Finance Auth.
(LOC - U.S. Bank, N.A.) 0.08 4/01/2037 8,285
8,750 Dallas Housing Finance Corp. (LIQ)(NBGA)(a) 1.00 9/01/2019 8,750
3,520 Florida Housing Finance Corp.
(LOC - SunTrust Bank) 0.35 4/01/2034 3,520
7,600 Gwinnett County Housing Auth.
(LOC - SunTrust Bank) 0.30 3/01/2041 7,600
1,460 Hillsborough County Housing Finance Auth.
(LOC - Citibank, N.A.) 0.08 7/15/2039 1,460
3,400 Montana Board of Housing (LIQ)(NBGA)(c) 1.00 10/01/2033 3,400
10,000 Nebraska Investment Finance Auth.
(LOC - Citibank, N.A.) 0.08 10/01/2042 10,000
================================================================================
22 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 4,785 Nevada Housing Division (LOC - Citibank, N.A.) 0.12% 10/01/2035 $ 4,785
2,950 New York Housing Finance Agency
(LOC - Citibank, N.A.) 0.06 5/01/2037 2,950
31,900 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.08 11/01/2038 31,900
3,730 New York Housing Finance Agency
(LOC - Citibank, N.A.) 0.06 5/01/2039 3,730
24,150 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.06 5/01/2041 24,150
6,600 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.07 5/01/2041 6,600
4,360 New York Housing Finance Agency
(LOC - Landesbank Hessen-Thuringen) 0.09 11/01/2044 4,360
6,000 New York Housing Finance Agency
(LOC - Wells Fargo Bank, N.A.) 0.12 11/01/2049 6,000
500 Phoenix IDA (LOC - Bank of America, N.A.) 0.10 4/01/2033 500
6,760 Southeast Texas Housing Finance Corp.
(LIQ)(NBGA)(a) 1.00 6/01/2019 6,760
6,720 Texas Department of Housing & Community
Affairs (LOC - Citibank, N.A.) 0.07 12/01/2039 6,720
990 Vermont Housing Finance Agency
(LOC - Key Bank, N.A.) 0.20 1/01/2038 990
930 Washington Housing Finance Commission
(LOC - Mizuho Corporate Bank Ltd.) 0.26 6/15/2037 930
----------
143,390
----------
MUNICIPAL FINANCE (0.4%)
700 Delaware Valley Regional Finance Auth.
(LOC - Bayerische Landesbank) 0.30 12/01/2020 700
20,000 Maryland Health and Higher Educational Facilities
Auth. (LOC - JPMorgan Chase Bank, N.A.) 0.05 4/01/2035 20,000
----------
20,700
----------
NURSING/CCRC (2.7%)
10,900 Alexandria IDA (LOC - Wells Fargo Bank, N.A.) 0.05 10/01/2035 10,900
2,425 Berks County Municipal Auth.
(LOC - Citizens Bank of Pennsylvania) 0.32 5/15/2022 2,425
3,785 Butler County Hospital Auth.
(LOC - Citizens Bank of Pennsylvania) 0.32 10/01/2042 3,785
4,200 Harrisonburg IDA
(LOC - Branch Banking & Trust Co.) 0.05 4/01/2036 4,200
26,185 Hempstead IDA (LIQ)(LOC - Deutsche Bank A.G.)(a) 0.24 10/01/2045 26,185
1,260 Indiana Finance Auth. (LOC - Federal Home Loan
Bank of Indianpolis) 0.14 7/01/2029 1,260
================================================================================
PORTFOLIO OF INVESTMENTS | 23
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$15,270 Islip IDA (LIQ)(LOC - Deutsche Bank A.G.)(a) 0.24% 12/01/2029 $ 15,270
13,555 Jackson County EDC (LOC - Bank of America, N.A.) 0.06 11/01/2031 13,555
1,145 Lynchburg Redevelopment & Housing Auth.
(LOC - Manufacturers & Traders Trust Co.) 0.51 12/01/2034 1,145
64,995 Nassau County IDA (LIQ)
(LOC - Deutsche Bank A.G.)(a) 0.24 12/01/2033 64,995
875 Roanoke County EDA
(LOC - Branch Banking & Trust Co.) 1.16 10/01/2028 875
----------
144,595
----------
OIL & GAS REFINING & MARKETING (0.1%)
6,500 Port of Port Arthur Navigation District 0.41 12/01/2039 6,500
----------
PACKAGED FOODS & MEAT (0.5%)
3,430 Brewster Dairy, Inc. (LOC - Bank of Montreal) 0.16 4/03/2023 3,430
2,200 Indiana Finance Auth. (LOC - Bank of America, N.A.) 0.26 12/01/2027 2,200
2,455 Lancaster IDA (LOC - Fulton Bank) 1.20 6/01/2027 2,455
1,105 Laurel County (LOC - Rabobank Nederland N.V.) 0.40 3/01/2015 1,105
4,000 Michigan Strategic Fund Ltd. (LOC - AgriBank, FCB) 0.08 6/01/2024 4,000
7,500 Premier Mushrooms, Inc. (LOC - CoBank, ACB) 0.15 12/01/2037 7,500
4,260 St. Tammany Parish (LOC - Federal Home Loan
Bank of Dallas) 0.21 7/01/2022 4,260
----------
24,950
----------
PAPER PACKAGING (0.0%)
985 Washington Finance EDA
(LOC - Wells Fargo Bank, N.A.) 0.21 4/01/2033 985
----------
PAPER PRODUCTS (0.2%)
1,035 Jackson Paper Co.
(LOC - Federal Home Loan Bank of Atlanta) 0.22 4/01/2027 1,035
2,300 Oregon (LOC - U.S. Bank, N.A.) 0.04 4/01/2041 2,300
5,600 Willacoochee Dev. Auth.
(LOC - Federal Home Loan Bank of Atlanta) 0.14 5/01/2021 5,600
----------
8,935
----------
PERSONAL PRODUCTS (0.0%)
1,680 Suffolk County IDA (LOC - Citibank, N.A.) 0.45 12/01/2019 1,680
----------
PHARMACEUTICALS (1.5%)
7,000 Montgomery County IDA
(LOC - Landesbank Hessen-Thuringen) 0.29 4/01/2022 7,000
20,000 New Hampshire Business Finance Auth.
(LOC - Landesbank Hessen-Thuringen) 0.29 11/01/2020 20,000
19,500 New Hampshire Business Finance Auth.
(LOC - Landesbank Hessen-Thuringen) 0.29 9/01/2025 19,500
================================================================================
24 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$30,000 New Hampshire Business Finance Auth.
(LOC - Landesbank Hessen-Thuringen) 0.29% 4/01/2030 $ 30,000
----------
76,500
----------
PUBLISHING (0.0%)
1,840 Washington Economic Dev. Finance Auth.
(LOC - U.S. Bank, N.A.) 0.20 1/01/2033 1,840
----------
REAL ESTATE OPERATING COMPANIES (4.1%)
3,525 Beaver Creek Enterprises, Inc.
(LOC - PNC Bank, N.A.) 0.16 3/02/2020 3,525
2,825 Cain Capital Investments, LLC
(LOC - Federal Home Loan Bank of Cincinnati) 0.32 10/01/2046 2,825
3,000 California Statewide Communities Dev. Auth.
(LOC - Wells Fargo Bank, N.A.) 0.06 9/01/2016 3,000
30,485 Carew Realty, Inc. (LOC - Fifth Third Bank) 0.30 5/01/2037 30,485
11,720 Delos, LLC (LOC - U.S. Bank, N.A.) 0.50 3/01/2037 11,720
4,680 East Hempfield IDA (LOC - Fulton Bank) 1.00 10/15/2026 4,680
4,400 EMF, LLC (LOC - Comerica Bank, N.A.) 0.19 6/01/2042 4,400
5,030 Forsyth County (LOC - Fifth Third Bank) 0.19 1/01/2037 5,030
2,980 Fountains Apartments, LLC (LOC - Fifth Third Bank) 0.31 9/01/2036 2,980
6,550 Harlan Dev. Co., LLC (LOC - Fifth Third Bank) 0.30 12/01/2023 6,550
4,117 Harlan Dev. Co., LLC (LOC - Fifth Third Bank) 0.30 12/01/2044 4,117
1,635 Hickory Creek Apartments, LLC
(LOC - Fifth Third Bank) 0.31 9/01/2036 1,635
845 Indianapolis (LOC - RBS Citizens, N.A.) 0.33 11/01/2042 845
1,840 Islip IDA (LOC - Citibank, N.A.) 0.35 12/01/2020 1,840
3,155 J Investments, LLC (LOC - Fifth Third Bank) 0.30 12/01/2055 3,155
1,000 Kaylian, LLC (LOC - Fifth Third Bank) 0.35 12/01/2055 1,000
6,850 Koar D' Iberville Center (LOC - Federal Home
Loan Bank of Dallas) 0.18 1/01/2033 6,850
5,180 Lodge Apartments Holdings, LLC
(LOC - Mizuho Corporate Bank Ltd.) 0.19 3/01/2026 5,180
10,000 Metropolitan Government Nashville and
Davidson County Health and Educational
Facilities Board (LOC - Fifth Third Bank) 0.22 9/01/2036 10,000
4,000 Michigan Equity Group (LOC - Fifth Third Bank) 0.30 12/01/2034 4,000
6,150 New York City Housing Dev. Corp.
(LOC - Landesbank Hessen-Thuringen) 0.10 12/01/2036 6,150
7,770 New York City Housing Dev. Corp.
(LOC - RBS Citizens, N.A.) 0.37 3/01/2048 7,770
33,570 New York City Housing Dev. Corp.
(LOC - RBS Citizens, N.A.) 0.40 3/01/2048 33,570
================================================================================
PORTFOLIO OF INVESTMENTS | 25
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 3,000 Pennsylvania Economic Dev. Financing Auth.
(LOC - PNC Bank, N.A.) 0.14% 4/01/2035 $ 3,000
7,330 Sugar Creek Finance Co., LLC
(LOC - Northern Trust Co.) 0.19 6/01/2042 7,330
25,000 Sunroad Centrum Apartments 23, LP
(LOC - Comerica Bank, N.A.) 0.21 8/01/2052 25,000
3,565 Syracuse IDA (LOC - Key Bank, N.A.) 0.20 10/01/2039 3,565
2,865 TKBF, LLC (LOC - Fifth Third Bank) 0.30 2/01/2108 2,865
13,935 Willow Interests, LLC (LOC - Fifth Third Bank) 0.35 4/01/2025 13,935
----------
217,002
----------
REAL ESTATE TAX/FEE (0.7%)
33,092 Irvine (LOC - KBC Bank N.V.) 0.10 9/02/2050 33,092
4,200 Jasper, Morgan, Newton, & Walton County
(LOC - JPMorgan Chase Bank, N.A.) 0.20 12/01/2020 4,200
----------
37,292
----------
REGIONAL BANKS (0.1%)
2,550 Cobb County IDA (LOC - Federal Home Loan
Bank of Atlanta) 0.15 2/01/2030 2,550
----------
RESTAURANTS (0.2%)
8,165 B.F. Ft. Myers, Inc. (LOC - Fifth Third Bank) 0.30 11/01/2017 8,165
----------
SEMICONDUCTOR EQUIPMENT (0.7%)
35,730 Saratoga County IDA (LOC - JPMorgan
Chase Bank, N.A.) 0.15 11/01/2021 35,730
----------
SINGLE FAMILY HOUSING (0.1%)
3,975 Montgomery County
(LOC - PNC Bank, N.A.) 0.12 7/01/2039 3,975
----------
SOLID WASTE DISPOSAL (0.1%)
5,100 Calcasieu Parish IDB (LOC - JPMorgan
Chase Bank, N.A.) 0.09 12/01/2024 5,100
1,200 Calcasieu Parish IDB (LOC - JPMorgan
Chase Bank, N.A.) 0.09 6/01/2025 1,200
----------
6,300
----------
SPECIAL ASSESSMENT/TAX/FEE (0.1%)
3,200 Sheridan Redevelopment Agency
(LOC - JPMorgan Chase Bank, N.A.) 0.28 12/01/2029 3,200
----------
SPECIALTY CHEMICALS (0.2%)
10,000 Gulf Coast Waste Disposal Auth.
(LOC - Bank of Tokyo-Mitsubishi UFJ, Ltd.) 0.06 5/01/2038 10,000
----------
================================================================================
26 | USAA MONEY MARKET FUND
================================================================================
--------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT COUPON OR VALUE
(000) SECURITY DISCOUNT RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
SPECIALTY STORES (0.6%)
$ 25,200 Bass Pro Rossford Development Co., LLC
(LOC - Fifth Third Bank) 0.35% 11/01/2027 $ 25,200
3,805 Spencer Co., Inc. (LOC - Federal Home
Loan Bank of Atlanta) 0.46 2/01/2021 3,805
----------
29,005
----------
STEEL (0.4%)
2,500 Berkeley County 0.34 9/01/2028 2,500
10,000 Illinois Finance Auth. (LOC - UniCredit Bank A.G.) 2.25 2/01/2037 10,000
6,000 Klein Steel Services, Inc.
(LOC - Manufacturers & Traders Trust Co.)(a) 0.51 8/01/2025 6,000
1,955 Metaltec Steel Abrasive Co.
(LOC - Comerica Bank, N.A.) 0.22 11/01/2034 1,955
2,500 Mississippi Business Finance Corp.
(LOC - Federal Home Loan Bank of Dallas) 0.18 7/01/2020 2,500
----------
22,955
----------
TOLL ROADS (0.0%)
2,300 New York State Thruway Auth. (LIQ)(c) 0.05 4/01/2015 2,300
----------
WATER UTILITIES (0.1%)
3,500 Beckley Water Co. (LOC - JPMorgan Chase
Bank, N.A.) 0.19 10/01/2016 3,500
----------
WATER/SEWER UTILITY (0.4%)
5,500 Hesperia Public Financing Auth.
(LOC - Bank of the West) 0.21 6/01/2026 5,500
3,000 Indiana Finance Auth.
(LOC - Fifth Third Bank) 0.19 12/01/2028 3,000
10,000 North Hudson Sewerage Auth.
(LOC - TD Bank, N.A.) 0.12 6/01/2044 10,000
----------
18,500
----------
Total Variable-Rate Demand Notes (cost: $2,745,842) 2,745,842
----------
TOTAL INVESTMENTS (COST: $5,195,110) $5,195,110
==========
================================================================================
PORTFOLIO OF INVESTMENTS | 27
================================================================================
--------------------------------------------------------------------------------------------------------
($ 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 $- $1,118,082 $- $1,118,082
Commercial Paper - 1,271,186 - 1,271,186
Put Bonds - 60,000 - 60,000
Variable-Rate Demand Notes - 2,745,842 - 2,745,842
--------------------------------------------------------------------------------------------------------
Total $- $5,195,110 $- $5,195,110
--------------------------------------------------------------------------------------------------------
================================================================================
28 | USAA MONEY MARKET FUND
================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS
January 31, 2014 (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, 2014, 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 may also 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.
================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS | 29
================================================================================
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)
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.
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 USAA Money Market Fund's (the Fund) 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.
(LIQ) Liquidity enhancement that may, under certain circumstances, provide
for repayment of principal and
================================================================================
30 | USAA MONEY MARKET FUND
================================================================================
interest upon demand from one of the following: Citigroup, Inc.,
Deutsche Bank A.G., 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 California State Teachers' Retirement System, Citigroup, Inc.,
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 Trust's Board of Trustees (the Board), 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, unless otherwise noted as
illiquid.
(c) Restricted security that is not registered under the Securities Act of
1933.
See accompanying notes to financial statements.
================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS | 31
================================================================================
STATEMENT OF ASSETS AND LIABILITIES (IN THOUSANDS)
January 31, 2014 (unaudited)
--------------------------------------------------------------------------------
ASSETS
Investments in securities (amortized cost approximates market value) $5,195,110
Cash 4,845
Receivables:
Capital shares sold 18,560
USAA Asset Management Company (Note 4C) 125
Interest 1,948
Securities sold 53,441
----------
Total assets 5,274,029
----------
LIABILITIES
Payables:
Capital shares redeemed 9,412
Dividends on capital shares 8
Accrued management fees 1,075
Accrued transfer agent's fees 611
Other accrued expenses and payables 161
----------
Total liabilities 11,267
----------
Net assets applicable to capital shares outstanding $5,262,762
==========
NET ASSETS CONSIST OF:
Paid-in capital $5,262,891
Overdistribution of net investment income (144)
Accumulated net realized gain on investments 15
----------
Net assets applicable to capital shares outstanding $5,262,762
==========
Capital shares outstanding, unlimited number of shares
authorized, no par value 5,263,413
==========
Net asset value, redemption price, and offering price per share $ 1.00
==========
See accompanying notes to financial statements.
================================================================================
32 | USAA MONEY MARKET FUND
================================================================================
STATEMENT OF OPERATIONS (IN THOUSANDS)
Six-month period ended January 31, 2014 (unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income $ 5,922
--------
EXPENSES
Management fees 6,348
Administration and servicing fees 2,645
Transfer agent's fees 6,897
Custody and accounting fees 305
Postage 178
Shareholder reporting fees 99
Trustees' fees 7
Registration fees 47
Professional fees 113
Other 38
--------
Total expenses 16,677
Expenses reimbursed (10,896)
--------
Net expenses 5,781
--------
NET INVESTMENT INCOME 141
--------
NET REALIZED GAIN ON INVESTMENTS
Net realized gain 15
--------
Increase in net assets resulting from operations $ 156
========
See accompanying notes to financial statements.
================================================================================
FINANCIAL STATEMENTS | 33
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS)
Six-month period ended January 31, 2014 (unaudited), and year ended
July 31, 2013
-----------------------------------------------------------------------------------
1/31/2014 7/31/2013
-----------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 141 $ 502
Net realized gain on investments 15 81
--------------------------
Increase in net assets resulting from operations 156 583
--------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (294) (502)
Net realized gains - (150)
--------------------------
Distributions to shareholders (294) (652)
--------------------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 1,691,726 3,654,250
Reinvested dividends 290 645
Cost of shares redeemed (1,569,342) (3,394,505)
--------------------------
Increase in net assets from
capital share transactions 122,674 260,390
--------------------------
Net increase in net assets 122,536 260,321
NET ASSETS
Beginning of period 5,140,226 4,879,905
--------------------------
End of period $ 5,262,762 $5,140,226
==========================
Accumulated undistributed (overdistribution of) net
investment income:
End of period $ (144) $ 9
==========================
CHANGE IN SHARES OUTSTANDING
Shares sold 1,691,726 3,654,250
Shares issued for dividends reinvested 290 645
Shares redeemed (1,569,342) (3,394,505)
--------------------------
Increase in shares outstanding 122,674 260,390
==========================
See accompanying notes to financial statements.
================================================================================
34 | USAA MONEY MARKET FUND
================================================================================
NOTES TO FINANCIAL STATEMENTS
January 31, 2014 (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 52 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
================================================================================
NOTES TO FINANCIAL STATEMENTS | 35
================================================================================
and USAA 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,
================================================================================
36 | USAA MONEY MARKET FUND
================================================================================
inputs 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 pursuant to the terms of a
Master Repurchase Agreement. A repurchase agreement is an arrangement
wherein the Fund purchases securities and the seller agrees to repurchase
the securities at an agreed upon time and at an agreed upon price. The
purchased securities are marked-to-market daily to ensure their value is
equal to or in excess of the purchase 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
================================================================================
NOTES TO FINANCIAL STATEMENTS | 37
================================================================================
the repurchase agreement. Master Repurchase Agreements typically contain
netting provisions, which provide for the net settlement of all transactions
and collateral with the Fund through a single payment in the event of
default or termination. 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.
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. For the six-month period
ended January 31, 2014, there were no custodian and other bank credits.
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.
================================================================================
38 | USAA MONEY MARKET FUND
================================================================================
(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 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 an interest rate based on
the London Interbank Offered Rate (LIBOR).
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. 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, 2014, the Fund paid CAPCO facility
fees of $15,000, which represents 8.3% 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, 2014.
(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, 2014,
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.
================================================================================
NOTES TO FINANCIAL STATEMENTS | 39
================================================================================
At July 31, 2013, the Fund had no pre-enactment or post-enactment capital loss
carryforwards, for federal income tax purposes.
For the six-month period ended January 31, 2014, 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
adjustments to this conclusion are necessary. The statute of limitations on the
Fund's tax return filings generally remain open for the three preceding 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, 2014, the Fund incurred management fees,
paid or payable to the Manager, of $6,348,000.
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, 2014, the Fund incurred administration and servicing fees, paid
or payable to the Manager, of $2,645,000.
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, 2014, the Fund reimbursed the Manager
$73,000 for these compliance and legal services. These expenses are included
in the professional fees on the Fund's statement of operations.
================================================================================
40 | USAA MONEY MARKET FUND
================================================================================
C. EXPENSE LIMITATION -- The Manager has voluntarily agreed, on a temporary
basis, to reimburse management, administrative, or other fees to limit the
Fund's total annual operating 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, 2014, the Fund incurred reimbursable
expenses of $10,896,000, of which $125,000 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. SAS pays a portion of
these fees to certain intermediaries for the administration and servicing of
accounts that are held with such intermediaries. For the six-month period
ended January 31, 2014, the Fund incurred transfer agent's fees, paid or
payable to SAS, of $6,897,000.
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,
2014, USAA and its affiliates owned 9,022,000 shares, which represent 0.2% 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.
================================================================================
NOTES TO FINANCIAL STATEMENTS | 41
================================================================================
(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,
-------------------------------------------------------------------------------
2014 2013 2012 2011 2010 2009
-------------------------------------------------------------------------------
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) .00(a) .02
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) .00(a) .02
-------------------------------------------------------------------------------
Less distributions from:
Net investment income (.00)(a) (.00)(a) (.00)(a) (.00)(a) (.00)(a) (.02)
Realized capital gains (.00)(a) (.00)(a) - - - -
-------------------------------------------------------------------------------
Total distributions (.00)(a) (.00)(a) (.00)(a) (.00)(a) (.00)(a) (.02)
-------------------------------------------------------------------------------
Net asset value at
end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===============================================================================
Total return (%)* .01 .01 .03(c) .02 .16(b) 1.86
Net assets at end
of period (000) $5,262,762 $5,140,226 $4,879,905 $5,020,709 $5,317,166 $6,112,293
Ratios to average
net assets:**
Expenses (%)(d) .22(e) .30 .34(c) .40 .56(b) .63
Expenses, excluding
reimbursements (%)(d) .63(e) .63 .65(c) .65 .62(b) -
Net investment income (%) .01(e) .01 .03 .01 .17 1.83
* 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, 2014, average net assets were
$5,246,664,000.
(a) Represents less than $0.01 per share.
(b) During 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) 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.
(d) Reflects total operating expenses of the Fund before reductions of any
expenses paid indirectly. The Fund's expenses paid indirectly decreased
the expense ratios by less than 0.01% of average net assets.
(e) Annualized. The ratio is not necessarily indicative of 12 months of
operations.
================================================================================
42 | USAA MONEY MARKET FUND
================================================================================
EXPENSE EXAMPLE
January 31, 2014 (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, 2013, through
January 31, 2014.
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
================================================================================
EXPENSE EXAMPLE | 43
================================================================================
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this
information to compare 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, 2013 -
AUGUST 1, 2013 JANUARY 31, 2014 JANUARY 31, 2014
-------------------------------------------------------
Actual $1,000.00 $1,000.10 $1.11
Hypothetical
(5% return before expenses) 1,000.00 1,024.10 1.12
* Expenses are equal to the Fund's annualized expense ratio of 0.22%, 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, 2013, through January 31, 2014.
================================================================================
44 | USAA MONEY MARKET FUND
================================================================================
TRUSTEES Daniel S. McNamara
Robert L. Mason, Ph.D.
Jefferson C. Boyce
Paul L. McNamara
Barbara B. Ostdiek, Ph.D.
Michael F. Reimherr
--------------------------------------------------------------------------------
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 your mutual fund
AT USAA.COM account and either click the link or
select 'I want to...' and select
OR CALL the desired action.
(800) 531-USAA
(8722)
--------------------------------------------------------------------------------
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) in summary within the Statement of Additional Information 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 PRSRT STD
San Antonio, TX 78288 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)
============================================================================
23428-0314 (C)2014, 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, 2014
By:* /S/ DANIEL J. MAVICO
-----------------------------------------------------------
Signature and Title: Daniel J. Mavico, Assistant Secretary
Date: 03/31/2014
------------------------------
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: 03/31/2014
------------------------------
By:* /S/ ROBERTO GALINDO, JR.
-----------------------------------------------------
Signature and Title: Roberto Galindo, Jr., Treasurer
Date: 03/31/2014
------------------------------
*Print the name and title of each signing officer under his or her signature.