UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
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: CHRISTOPHER P. LAIA
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: OCTOBER 31, 2009
ITEM 1. SCHEDULE OF INVESTMENTS.
USAA MUTUAL FUNDS TRUST - 1ST QUARTER REPORT - PERIOD ENDED OCTOBER 31, 2009
[LOGO OF USAA]
USAA(R)
PORTFOLIO OF INVESTMENTS
1ST QUARTER
USAA SHORT-TERM BOND FUND
OCTOBER 31, 2009
(Form N-Q)
48444-1209 (C)2009, USAA. All rights reserved.
PORTFOLIO OF INVESTMENTS
USAA SHORT-TERM BOND FUND
October 31, 2009 (unaudited)
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (30.4%)
CONSUMER DISCRETIONARY (1.1%)
-----------------------------
AUTOMOTIVE RETAIL (0.1%)
$ 1,000 Autozone, Inc. 5.88% 10/15/2012 $ 1,073
---------
BROADCASTING (0.6%)
5,157 Comcast Cable Communications, Inc. 6.75 1/30/2011 5,480
1,000 Cox Communications, Inc. 7.75 11/01/2010 1,053
1,000 Time Warner Cable, Inc. 8.25 2/14/2014 1,174
---------
7,707
---------
HOME IMPROVEMENT RETAIL (0.2%)
2,000 Home Depot, Inc. 5.20 3/01/2011 2,090
---------
SPECIALTY STORES (0.2%)
2,000 Staples, Inc. 7.75 4/01/2011 2,150
---------
Total Consumer Discretionary 13,020
---------
CONSUMER STAPLES (1.8%)
-----------------------
AGRICULTURAL PRODUCTS (0.3%)
3,000 Cargill, Inc. (a) 5.20 1/22/2013 3,191
---------
BREWERS (0.3%)
2,000 Anheuser-Busch Companies, Inc. (a) 3.00 10/15/2012 2,019
2,000 Anheuser-Busch Companies, Inc. (a) 7.20 1/15/2014 2,255
---------
4,274
---------
DRUG RETAIL (0.2%)
2,000 Walgreen Co. 4.88 8/01/2013 2,164
---------
FOOD RETAIL (0.1%)
1,000 Kroger Co. 8.05 2/01/2010 1,017
---------
PACKAGED FOODS & MEAT (0.4%)
2,000 ConAgra Foods, Inc. 5.88 4/15/2014 2,188
1,000 Kraft Foods, Inc. 4.13 11/12/2009 1,001
1,000 Kraft Foods, Inc. 6.75 2/19/2014 1,116
---------
4,305
---------
SOFT DRINKS (0.5%)
1,000 Bottling Group, LLC 6.95 3/15/2014 1,165
2,000 Coca Cola Enterprises, Inc. 3.75 3/01/2012 2,093
1,000 Coca Cola Enterprises, Inc. 7.38 3/03/2014 1,176
2,000 PepsiAmericas, Inc. 4.38 2/15/2014 2,100
---------
6,534
---------
Total Consumer Staples 21,485
---------
ENERGY (4.9%)
-------------
INTEGRATED OIL & GAS (1.3%)
5,000 BP Capital Markets plc 1.55 8/11/2011 5,076
4,000 Chevron Corp. 3.45 3/03/2012 4,200
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1 | USAA Short-Term Bond Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,000 Hess Corp. 7.00% 2/15/2014 $ 1,127
1,425 Louisiana Land and Exploration Co. 7.63 4/15/2013 1,611
3,000 Marathon Oil Corp. 6.50 2/15/2014 3,340
---------
15,354
---------
OIL & GAS EQUIPMENT & SERVICES (0.1%)
1,000 Baker Hughes, Inc. 6.50 11/15/2013 1,137
---------
OIL & GAS EXPLORATION & PRODUCTION (0.6%)
2,000 Devon Energy Corp. 5.63 1/15/2014 2,174
2,000 Woodside Finance Ltd. 8.13 3/01/2014 2,268
1,000 XTO Energy, Inc. 5.00 8/01/2010 1,029
1,000 XTO Energy, Inc. 4.63 6/15/2013 1,039
---------
6,510
---------
OIL & GAS REFINING & MARKETING (0.2%)
2,000 Valero Energy Corp. 6.88 4/15/2012 2,180
---------
OIL & GAS STORAGE & TRANSPORTATION (2.7%)
1,000 DCP Midstream, LLC (a) 9.70 12/01/2013 1,161
1,000 Duke Energy Field Services, LLC 7.88 8/16/2010 1,049
2,000 Enbridge Energy Partners, LP 9.88 3/01/2019 2,528
1,000 Energy Transfer Partners, LP 6.00 7/01/2013 1,072
1,000 Energy Transfer Partners, LP 9.70 3/15/2019 1,240
3,000 Enterprise Products Operating, LP 4.60 8/01/2012 3,126
1,105 Enterprise Products Operating, LP 6.13 2/01/2013 1,187
1,000 Enterprise Products Operating, LP 5.90 4/15/2013 1,047
2,103 Kern River Funding Corp. (a) 6.68 7/31/2016 2,287
2,000 Kinder Morgan Energy Partners, LP 6.75 3/15/2011 2,131
2,000 NGPL PipeCo, LLC 6.51 12/15/2012 2,186
2,000 Sunoco Logistics Partners Operations, LP 8.75 2/15/2014 2,264
2,000 Valero Logistics 6.88 7/15/2012 2,127
5,000 Williams Companies, Inc. (a) 6.38 10/01/2010 5,146
3,000 Williams Companies, Inc. 8.13 3/15/2012 3,269
---------
31,820
---------
Total Energy 57,001
---------
FINANCIALS (9.3%)
-----------------
ASSET MANAGEMENT & CUSTODY BANKS (0.2%)
2,000 State Street Corp. 2.15 4/30/2012 2,037
---------
CONSUMER FINANCE (0.3%)
2,000 American Express Credit Corp. 5.88 5/02/2013 2,148
1,000 American Honda Finance Corp. (a) 6.70 10/01/2013 1,094
---------
3,242
---------
DIVERSIFIED BANKS (0.2%)
1,000 First Tennessee Bank, N.A. 4.63 5/15/2013 930
1,000 Huntington National Bank 4.38 1/15/2010 1,001
---------
1,931
---------
LIFE & HEALTH INSURANCE (2.2%)
1,000 Blue Cross Blue Shield, Inc. 8.25 11/15/2011 1,100
2,000 Genworth Life Institutional Funding Trust
(a) 5.88 5/03/2013 2,009
2,000 Jackson National Life Global Funding (a) 5.38 5/08/2013 2,036
3,000 MetLife Global Funding I (a) 0.48 (b) 5/17/2010 2,995
2,000 MetLife Global Funding I (a) 5.75 7/25/2011 2,113
1,000 MetLife Global Funding I (a) 5.13 4/10/2013 1,060
3,000 Pricoa Global Funding I (a) 5.45 6/11/2014 3,165
1,500 Principal Life Global Funding I 6.25 2/15/2012 1,571
4,000 Principal Life Income Fundings Trust 5.15 6/17/2011 4,136
2,000 Principal Life Income Fundings Trust 5.15 9/30/2011 2,021
2,000 Principal Life Income Fundings Trust 5.30 12/14/2012 2,132
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Portfolio of Investments | 2
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 2,000 Prudential Financial, Inc. 5.15% 1/15/2013 $ 2,101
---------
26,439
---------
MULTI-LINE INSURANCE (0.6%)
3,000 Genworth Global Funding Trust 5.20 10/08/2010 3,054
4,000 Hartford Life Global Funding Trust 0.38 (b) 1/17/2012 3,751
---------
6,805
---------
OTHER DIVERSIFIED FINANCIAL SERVICES (1.1%)
5,000 Citibank N.A. 1.75 12/28/2012 4,994
5,000 Citigroup Funding, Inc. 1.88 10/22/2012 5,020
2,000 Citigroup, Inc. 5.30 10/17/2012 2,098
584 ZFS Finance USA Trust IV (a) 5.88 5/09/2032 474
---------
12,586
---------
PROPERTY & CASUALTY INSURANCE (0.6%)
2,000 Allstate Life Global Funding Trust 5.38 4/30/2013 2,149
5,000 Berkshire Hathaway Finance Corp.(c) 4.20 12/15/2010 5,156
---------
7,305
---------
REGIONAL BANKS (0.8%)
2,000 BB & T Corp. 3.38 9/25/2013 2,017
2,000 Chittenden Corp. 5.80 2/14/2017 1,990
2,000 Cullen/Frost Bankers, Inc. 5.75 2/15/2017 1,852
2,000 National City Bank 4.50 3/15/2010 2,022
2,000 Susquehanna Bancshares, Inc. 2.30 (b) 5/01/2014 1,226
---------
9,107
---------
REITS - DIVERSIFIED (0.3%)
3,000 WEA Finance LLC (a) 5.40 10/01/2012 3,103
---------
REITS - INDUSTRIAL (0.3%)
2,000 AMB Property, LP 6.30 6/01/2013 1,975
2,000 ProLogis 2.25 4/01/2037 1,845
---------
3,820
---------
REITS - OFFICE (0.7%)
2,000 Boston Properties, LP 6.25 1/15/2013 2,128
1,000 Brandywine Operating Partnership, LP 4.50 11/01/2009 1,000
2,000 Duke Realty, LP 5.63 8/15/2011 2,036
2,000 Mack-Cali Realty, LP 5.05 4/15/2010 2,009
1,050 Mack-Cali Realty, LP 7.75 2/15/2011 1,097
---------
8,270
---------
REITS - RESIDENTIAL (0.5%)
878 AvalonBay Communities, Inc. 6.63 9/15/2011 937
2,000 AvalonBay Communities, Inc. 5.50 1/15/2012 2,086
1,000 ERP Operating, LP 6.63 3/15/2012 1,075
2,000 ERP Operating, LP 5.50 10/01/2012 2,094
---------
6,192
---------
REITS - RETAIL (0.8%)
1,000 Kimco Realty Corp. 6.00 11/30/2012 1,047
1,000 Regency Centers, LP 6.75 1/15/2012 1,028
2,615 Simon Property Group, LP 7.75 1/20/2011 2,753
2,000 Simon Property Group, LP 5.60 9/01/2011 2,096
3,000 Weingarten Realty Investors 5.26 5/15/2012 2,941
---------
9,865
---------
REITS - SPECIALIZED (0.3%)
1,000 Health Care Property Investors, Inc. 5.95 9/15/2011 1,037
2,950 Nationwide Health Properties, Inc. 6.90 10/01/2037 3,028
---------
4,065
---------
THRIFTS & MORTGAGE FINANCE (0.4%)
2,255 Sovereign Bank 2.11 (b) 4/01/2014 2,181
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3 | USAA Short-Term Bond Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 2,000 Wachovia Mortgage Federal Savings Bank 4.13% 12/15/2009 $ 2,007
---------
4,188
---------
Total Financials 108,955
---------
GOVERNMENT (0.9%)
-----------------
U.S. GOVERNMENT (0.9%)
5,000 US Central Federal Credit Union 1.25 10/19/2011 5,008
5,000 US Central Federal Credit Union 1.90 10/19/2012 5,012
---------
10,020
---------
Total Government 10,020
---------
HEALTH CARE (1.8%)
------------------
HEALTH CARE EQUIPMENT (0.2%)
2,000 Covidien International Finance S.A. 5.45 10/15/2012 2,176
---------
PHARMACEUTICALS (1.6%)
2,000 Abbott Laboratories 5.15 11/30/2012 2,210
3,000 Eli Lilly & Co. 3.55 3/06/2012 3,143
1,000 Merck & Co., Inc. 1.88 6/30/2011 1,013
9,400 Pfizer, Inc.(c) 4.45 3/15/2012 9,973
3,000 Roche Holdings, Inc. (a) 4.50 3/01/2012 3,175
---------
19,514
---------
Total Health Care 21,690
---------
INDUSTRIALS (2.2%)
------------------
AEROSPACE & DEFENSE (0.4%)
3,000 BAE Systems Holdings, Inc. 6.40 12/15/2011 3,213
2,000 General Dynamics Corp. 1.80 7/15/2011 2,027
---------
5,240
---------
AIR FREIGHT & LOGISTICS (0.4%)
2,000 FedEx Corp. 7.38 1/15/2014 2,265
2,000 United Parcel Service 3.88 4/01/2014 2,100
---------
4,365
---------
AIRLINES (0.3%)
1,095 American Airlines, Inc. Pass-Through
Trust(INS) 3.86 7/09/2010 1,067
2,000 Southwest Airlines Co. 6.50 3/01/2012 2,103
---------
3,170
---------
BUILDING PRODUCTS (0.2%)
2,000 CRH America, Inc. 5.63 9/30/2011 2,113
---------
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS (0.6%)
1,000 Caterpillar Financial Services Corp. 4.85 12/07/2012 1,067
3,000 John Deere Capital Corp. 5.25 10/01/2012 3,262
3,000 Paccar, Inc. 6.88 2/15/2014 3,429
---------
7,758
---------
INDUSTRIAL CONGLOMERATES (0.1%)
1,000 Tyco International Finance 8.50 1/15/2019 1,222
---------
RAILROADS (0.2%)
2,000 Union Pacific Corp. 5.13 2/15/2014 2,148
---------
Total Industrials 26,016
---------
INFORMATION TECHNOLOGY (0.3%)
-----------------------------
DATA PROCESSING & OUTSOURCED SERVICES (0.1%)
1,000 Computer Sciences Corp. 5.50 3/15/2013 1,057
---------
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Portfolio of Investments | 4
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.2%)
$ 2,000 Agilent Technologies, Inc. 4.45% 9/14/2012 $ 2,047
---------
Total Information Technology 3,104
---------
MATERIALS (0.7%)
----------------
DIVERSIFIED CHEMICALS (0.5%)
2,000 Chevron Phillips Chemical Co., LLC 7.00 3/15/2011 2,117
2,000 Dow Chemical Co. 4.85 8/15/2012 2,083
1,000 E. I. du Pont de Nemours and Co. 5.00 1/15/2013 1,082
1,000 E. I. du Pont de Nemours and Co. 5.00 7/15/2013 1,091
---------
6,373
---------
GOLD (0.2%)
2,000 Barrick Gold Finance Co., LLC 6.13 9/15/2013 2,213
---------
Total Materials 8,586
---------
TELECOMMUNICATION SERVICES (2.0%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (1.3%)
2,000 AT&T, Inc. 4.85 2/15/2014 2,138
5,852 Bellsouth Corp.(c) 6.00 10/15/2011 6,341
4,880 Qwest Corp. 8.88 3/15/2012 5,161
1,000 Verizon Communications, Inc. 5.25 4/15/2013 1,086
---------
14,726
---------
WIRELESS TELECOMMUNICATION SERVICES (0.7%)
2,000 ALLTEL Corp. 7.00 7/01/2012 2,220
5,000 Verizon Wireless Capital (a) 3.75 5/20/2011 5,170
1,000 Verizon Wireless Capital, LLC (a) 7.38 11/15/2013 1,157
---------
8,547
---------
Total Telecommunication Services 23,273
---------
UTILITIES (5.4%)
----------------
ELECTRIC UTILITIES (3.6%)
2,000 Allegheny Energy Supply Co., LLC 7.80 3/15/2011 2,125
1,000 Appalachian Power Co. 5.55 4/01/2011 1,044
747 Aquila, Inc. 7.95 2/01/2011 785
1,040 Cedar Brakes II, LLC (a) 9.88 9/01/2013 1,054
2,000 Cincinnati Gas & Electric Co. 5.70 9/15/2012 2,191
2,000 Commonwealth Edison Co. 6.15 3/15/2012 2,179
1,367 Consumers Energy Co. 4.00 5/15/2010 1,389
2,145 Detroit Edison Co. 6.13 10/01/2010 2,244
2,000 Entergy Gulf States, Inc. 6.00 12/01/2012 2,003
3,000 Entergy Louisiana Holdings, Inc. 5.83 11/01/2010 3,006
2,000 FPL Group Capital, Inc. 5.63 9/01/2011 2,151
2,000 ITC Holdings Corp. (a) 5.25 7/15/2013 1,871
4,825 Nevada Power Co. 6.50 4/15/2012 5,228
1,000 Northeast Utilities 5.65 6/01/2013 1,034
2,000 Northern States Power Co. 8.00 8/28/2012 2,322
536 Oglethorpe Power Corp. 6.97 6/30/2011 544
2,000 PacifiCorp 6.90 11/15/2011 2,218
2,000 Pepco Holdings, Inc. 4.00 5/15/2010 2,027
459 Power Contract Financing, LLC (a) 6.26 2/01/2010 463
7,000 Southern Co. 0.68 (b) 10/21/2011 7,025
---------
42,903
---------
GAS UTILITIES (0.3%)
2,000 AGL Capital Corp. 7.13 1/14/2011 2,098
1,000 ONEOK Partners, LP 5.90 4/01/2012 1,053
---------
3,151
---------
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5 | USAA Short-Term Bond Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
MULTI-UTILITIES (1.5%)
$ 3,605 Black Hills Corp. 6.50% 5/15/2013 $ 3,806
2,000 CenterPoint Energy Houston Electric, LLC 5.70 3/15/2013 2,147
2,000 CenterPoint Energy Houston Electric, LLC 7.00 3/01/2014 2,256
1,000 CenterPoint Energy, Inc. 7.25 9/01/2010 1,026
1,000 Dominion Resources, Inc. 8.88 1/15/2019 1,264
1,000 Energy East Corp. 6.75 6/15/2012 1,107
2,000 Nisource Finance Corp. 7.88 11/15/2010 2,108
1,000 Puget Sound Energy, Inc. 6.75 1/15/2016 1,107
2,252 TECO Finance, Inc. 7.00 5/01/2012 2,417
---------
17,238
---------
Total Utilities 63,292
---------
Total Corporate Obligations (cost: $340,996) 356,442
---------
EURODOLLAR AND YANKEE OBLIGATIONS (3.8%)
ENERGY (0.8%)
-------------
INTEGRATED OIL & GAS (0.8%)
5,000 BP Capital Markets plc(c) 3.13 3/10/2012 5,173
2,000 Husky Energy, Inc. 5.90 6/15/2014 2,175
1,861 PEMEX Finance Ltd. 9.03 2/15/2011 1,923
---------
9,271
---------
OIL & GAS DRILLING (0.0%)
317 Delek & Avner-Yam Tethys Ltd. (a) 1.58 (b) 8/01/2013 317
---------
Total Energy 9,588
---------
FINANCIALS (1.9%)
-----------------
DIVERSIFIED BANKS (1.3%)
1,000 ANZ Capital Trust I (a) 4.48 -(d) 991
2,000 Barclays Bank plc (a) 7.38 -(d) 1,830
5,000 Commonwealth Bank Australia (a) 0.58 (b) 11/04/2011 5,000
2,000 Den Norske Bank ASA (a) 7.73 -(d) 1,861
1,000 HSBC Capital Funding, LP (a) 9.55 -(d) 1,035
3,000 Mizuho Financial Group, Inc. 8.38 -(d) 3,045
1,000 Royal Bank of Scotland Group plc 9.12 -(d) 935
---------
14,697
---------
DIVERSIFIED CAPITAL MARKETS (0.1%)
1,500 UBS Preferred Funding Trust II 7.25 -(d) 1,352
---------
INVESTMENT BANKING & BROKERAGE (0.2%)
2,000 Credit Suisse Group, AG 5.50 5/01/2014 2,171
---------
MULTI-LINE INSURANCE (0.1%)
2,000 ING Capital Funding Trust III 8.44 -(d) 1,715
---------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.2%)
2,000 ZFS Finance USA Trust I (a) 6.15 12/15/2065 1,800
---------
Total Financials 21,735
---------
INDUSTRIALS (0.2%)
------------------
INDUSTRIAL CONGLOMERATES (0.2%)
2,000 Siemens Finance (a) 5.50 2/16/2012 2,156
---------
MATERIALS (0.4%)
----------------
DIVERSIFIED METALS & MINING (0.3%)
3,030 Xstrata Finance Canada (a) 5.50 11/16/2011 3,155
---------
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Portfolio of Investments | 6
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
FERTILIZERS & AGRICULTURAL CHEMICALS (0.1%)
$ 1,148 Agrium, Inc. 8.25% 2/15/2011 $ 1,219
---------
Total Materials 4,374
---------
TELECOMMUNICATION SERVICES (0.5%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (0.5%)
6,000 British Telecommunications plc(c) 9.13 12/15/2010 6,463
---------
Total Eurodollar and Yankee Obligations (cost: $44,213) 44,316
---------
ASSET-BACKED SECURITIES (18.6%)
FINANCIALS (18.6%)
------------------
ASSET-BACKED FINANCING (18.6%)
239 Aerco Ltd. (a) 0.77 (b) 7/15/2025 240
4,000 AESOP Funding II, LLC (a) 0.47 (b) 3/20/2012 3,803
4,000 AESOP Funding II, LLC 5.68 2/20/2013 4,158
1,000 AESOP Funding II, LLC (a) 9.31 10/20/2013 1,103
170 Airport Airplanes 0.62 (b) 3/15/2019 160
2,000 American Express Credit Account Master
Trust 0.53 (b) 12/15/2013 1,927
2,500 American Express Credit Account Master
Trust 0.52 (b) 9/15/2014 2,362
904 AmeriCredit Automobile Receivables Trust 1.99 (b) 1/12/2012 905
1,000 AmeriCredit Automobile Receivables Trust
(e) 2.21 1/15/2014 1,000
5,000 AmeriCredit Automobile Receivables Trust 6.96 10/14/2014 5,274
1,726 AmeriCredit Automobile Receivables Trust
(e) 2.90 12/15/2014 1,726
3,302 Aviation Capital Group Trust (INS)(a) 0.95 (b) 9/20/2033 2,410
4,000 Banc of America Credit Card Trust 4.72 5/15/2013 4,166
2,000 Banc of America Securities Auto Trust 5.51 2/19/2013 2,001
4,000 Bank of America Auto Trust (a) 5.73 1/20/2013 4,217
2,500 Bank of America Auto Trust (a) 2.13 9/15/2013 2,529
5,000 Bank of America Auto Trust (a) 3.52 6/15/2016 5,124
2,500 Bank of America Auto Trust (a) 3.03 10/15/2016 2,533
2,000 Bank One Issuance Trust 4.77 2/16/2016 2,002
2,000 Bank One Issuance Trust 1.05 (b) 2/15/2017 1,836
2,000 Cabela's Credit Card Master Note Trust
(a) 5.26 10/15/2014 2,063
738 Capital One Auto Finance Trust (INS) 4.71 6/15/2012 746
1,969 Capital One Auto Finance Trust 0.28 (b) 5/15/2013 1,938
750 Capital One Auto Finance Trust 0.28 (b) 4/15/2014 721
3,637 Capital One Multi-Asset Execution Trust 6.00 8/15/2013 3,726
3,000 Capital One Multi-Asset Execution Trust 3.20 4/15/2014 3,090
6,000 Carmax Auto Owner Trust (e) 1.74 4/15/2014 5,999
975 Caterpillar Financial Asset Trust 5.34 6/25/2012 993
2,000 Caterpillar Financial Asset Trust 4.94 4/25/2014 2,044
2,670 CenterPoint Energy Transition Bond Co.,
LLC 4.19 2/01/2020 2,833
2,275 Chase Issuance Trust 2.40 6/17/2013 2,320
5,000 Citi Financial Auto Issuance Trust 2.59 10/15/2013 5,004
5,000 Citi Financial Auto Issuance Trust (a) 3.15 8/15/2016 5,004
1,000 Citibank Credit Card Issuance Trust 6.95 2/18/2014 1,051
4,000 Citibank Credit Card Issuance Trust 4.40 6/20/2014 4,252
4,000 Citibank Credit Card Issuance Trust 6.30 6/20/2014 4,136
2,000 CNH Equipment Trust 5.28 11/15/2012 2,105
5,000 CPS Auto Receivables Trust (INS) 6.48 7/15/2013 5,059
257 Credit Acceptance Auto Dealer Loan Trust 6.16 4/15/2013 257
991 E*Trade RV and Marine Trust 3.62 10/08/2018 1,000
3,000 Fifth Third Auto Trust 4.81 1/15/2013 3,141
2,000 Ford Credit Auto Owner Trust 2.00 (b) 4/15/2013 2,031
3,000 Ford Credit Auto Owner Trust 2.98 8/15/2014 3,023
600 GE Capital Credit Card Master Note Trust 0.42 (b) 3/15/2013 597
1,000 GE Capital Credit Card Master Note Trust 0.52 (b) 3/15/2013 984
1,000 GE Capital Credit Card Master Note Trust 0.26 (b) 6/15/2013 994
1,000 GE Capital Credit Card Master Note Trust 0.55 (b) 6/15/2013 967
3,000 GE Capital Credit Card Master Note Trust 2.54 9/15/2014 3,007
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6 | USAA Short-Term Bond Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,000 GE Capital Credit Card Master Note Trust 0.29% (b) 3/15/2015 $ 963
3,416 GE Equipment Midticket, LLC 0.40 (b) 9/15/2017 3,167
5,000 GE Equipment Midticket, LLC 3.13 11/16/2020 5,014
2,000 Hertz Vehicle Financing, LLC (a) 5.01 2/25/2011 2,011
4,000 Hertz Vehicle Financing, LLC (a) 5.08 11/25/2011 4,089
5,000 Hertz Vehicle Financing, LLC (a) 4.26 3/25/2014 5,030
2,000 Honda Auto Receivables Owner Trust 5.57 11/21/2013 2,100
3,000 Honda Auto Receivables Owner Trust 4.43 7/15/2015 3,176
1,494 HSBC Automotive Trust 4.94 11/19/2012 1,535
1,575 HSBC Automotive Trust 5.33 11/17/2013 1,600
2,500 HSBC Private Label Credit Card Master
Note Trust 0.27 (b) 12/16/2013 2,493
3,000 Huntington Auto Trust (a) 4.81 4/16/2012 3,087
3,000 Huntington Auto Trust 3.94 6/17/2013 3,101
3,000 Huntington Auto Trust (a) 5.73 1/15/2014 3,220
4,000 Hyundai Auto Receivables Trust 2.03 8/15/2013 4,033
2,000 Hyundai Auto Receivables Trust 5.48 11/17/2014 2,134
5,000 John Deere Owner Trust 1.57 10/15/2013 5,003
5,000 John Deere Owner Trust 5.07 4/15/2014 5,115
5,000 John Deere Owner Trust 3.96 5/16/2016 5,218
2,436 Long Beach Acceptance Auto Receivables
Trust 5.50 5/15/2013 2,449
2,000 MBNA Master Credit Card Note Trust 6.80 7/15/2014 2,083
5,000 Nissan Auto Receivables Owner Trust 4.28 6/16/2014 5,225
2,000 Nissan Auto Receivables Owner Trust 5.05 11/17/2014 2,122
5,500 Rental Car Finance Corp. (a) 0.38 (b) 7/25/2013 4,727
2,500 SLM Student Loan Trust 0.66 (b) 12/15/2023 1,787
6,278 SLM Student Loan Trust 0.66 (b) 1/27/2025 4,909
1,250 SLM Student Loan Trust 0.48 (b) 10/27/2025 931
1,879 SLM Student Loan Trust 0.83 (b) 10/25/2038 1,414
91 Triad Automobile Receivables Owners
Trust 5.26 11/14/2011 91
1,181 USXL Funding, LLC (INS)(a) 5.38 4/15/2014 1,181
3,000 Volkswagen Auto Loan Enhanced Trust 6.24 7/20/2015 3,330
2,000 Wachovia Auto Owner Trust 4.81 9/20/2012 2,070
1,294 Wachovia Auto Owner Trust 5.49 4/22/2013 1,353
2,000 Wachovia Auto Owner Trust 5.35 3/20/2014 2,108
2,000 WFS Financial Owner Trust 4.76 5/17/2013 2,020
---------
218,450
---------
Total Financials 218,450
---------
Total Asset-Backed Securities (cost: $209,432) 218,450
---------
COMMERCIAL MORTGAGE SECURITIES (22.8%)
FINANCIALS (22.8%)
------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (21.6%)
3,000 Banc of America Commercial Mortgage,
Inc. 6.02 3/10/2013 2,912
2,000 Banc of America Commercial Mortgage,
Inc. 4.65 9/11/2036 2,065
60 Banc of America Commercial Mortgage,
Inc. 3.52 11/10/2038 62
3,025 Banc of America Commercial Mortgage,
Inc. 4.56 11/10/2041 2,987
3,000 Banc of America Commercial Mortgage,
Inc. 4.50 7/10/2042 3,042
5,100 Banc of America Commercial Mortgage,
Inc. 5.14 (b) 11/10/2042 5,102
6,516 Banc of America Commercial Mortgage,
Inc. 4.16 12/10/2042 6,495
3,000 Banc of America Commercial Mortgage,
Inc. 4.50 7/10/2043 2,997
1,000 Banc of America Commercial Mortgage,
Inc. 4.62 7/10/2043 994
5,557 Banc of America Commercial Mortgage,
Inc. 4.78 7/10/2043 5,555
3,000 Banc of America Commercial Mortgage,
Inc. 5.33 (b) 7/10/2045 3,022
1,500 Banc of America Commercial Mortgage,
Inc. 5.17 9/10/2047 1,492
1,343 Bear Stearns Commercial Mortgage
Securities, Inc. 4.00 3/13/2040 1,357
3,000 Chase Commercial Mortgage Securities
Corp. 7.73 1/15/2032 3,002
321 Chase Commercial Mortgage Securities
Corp. 7.76 4/15/2032 322
4,276 Chase Commercial Mortgage Securities
Corp. 7.32 10/15/2032 4,328
919 Commercial Mortgage Asset Trust 6.64 1/17/2032 918
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 8
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,000 Commercial Mortgage Asset Trust 7.64% 11/17/2032 $ 954
2,542 Commercial Mortgage Asset Trust 4.63 5/10/2043 2,516
2,000 Commercial Mortgage Trust 4.58 10/15/2037 1,893
1,995 Commercial Mortgage Trust (a) 5.65 3/03/2041 1,482
4,300 Commercial Mortgage Trust 5.27 (b) 7/15/2044 4,368
2,544 Credit Suisse First Boston Mortgage
Securities Corp. 6.51 2/15/2034 2,642
1,000 Credit Suisse First Boston Mortgage
Securities Corp. (a) 5.78 12/15/2035 752
1,000 Credit Suisse First Boston Mortgage
Securities Corp. 4.92 4/15/2037 602
2,890 Credit Suisse First Boston Mortgage
Securities Corp. 4.51 7/15/2037 2,879
2,251 Credit Suisse First Boston Mortgage
Securities Corp. 4.18 11/15/2037 2,243
4,462 Credit Suisse First Boston Mortgage
Securities Corp. 3.38 5/15/2038 4,479
1,320 Credit Suisse First Boston Mortgage
Securities Corp. 5.10 8/15/2038 1,340
1,484 Credit Suisse First Boston Mortgage
Securities Corp.(c) 3.88 10/15/2039 1,472
5,000 Credit Suisse First Boston Mortgage
Securities Corp. 5.21 12/15/2040 5,078
1,922 Credit Suisse First Boston Mortgage
Securities Corp. 7.55 4/15/2062 1,956
1,692 Deutsche Mortgage & Asset Receiving
Corp. 7.50 6/15/2031 1,602
3,397 DLJ Commercial Mortgage Corp. 8.12 (b) 10/10/2032 3,421
3,000 First Union National Bank Commercial
Mortgage Trust 6.22 12/12/2033 3,152
530 G-Force, LLC (a) 4.39 8/22/2036 461
256 GE Commercial Mortgage Corp. 4.17 7/10/2037 259
3,695 GE Commercial Mortgage Corp. 4.86 7/10/2045 3,644
3,675 GE Commercial Mortgage Corp. 5.31 11/10/2045 3,724
1,800 GE Commercial Mortgage Corp. 5.51 11/10/2045 1,842
6,196 GE Commercial Mortgage Corp. 4.35 6/10/2048 6,194
5,000 GMAC Commercial Mortgage Securities,
Inc. 7.28 (b) 9/15/2033 4,815
2,000 GMAC Commercial Mortgage Securities,
Inc. 6.50 5/15/2035 1,999
3,833 GMAC Commercial Mortgage Securities,
Inc. 6.96 9/15/2035 3,967
3,000 GMAC Commercial Mortgage Securities,
Inc. 4.65 4/10/2040 3,052
2,000 GMAC Commercial Mortgage Securities,
Inc. 4.75 5/10/2043 1,746
5,026 Greenwich Capital Commercial Funding
Corp. 4.31 8/10/2042 5,019
1,526 GS Mortgage Securities Corp. II (a) 6.04 8/15/2018 1,516
1,000 GS Mortgage Securities Corp. II 4.96 8/10/2038 997
1,000 GS Mortgage Securities Corp. II 5.53 8/10/2038 446
4,205 GS Mortgage Securities Corp. II (a) 4.48 7/10/2039 4,149
2,674 GS Mortgage Securities Corp. II 4.30 1/10/2040 2,726
4,355 J.P. Morgan Chase Commercial Mortgage
Securities Corp 4.85 8/15/2042 4,291
504 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 6.24 4/15/2035 511
4,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.82 9/12/2037 4,027
4,200 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.87 10/15/2042 4,365
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.49 4/15/2043 2,100
4,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp.(c) 5.79 6/12/2043 4,011
960 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.20 12/15/2044 959
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 6.07 (b) 4/15/2045 2,130
3,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.52 5/12/2045 3,066
---------------------------------------------------------------------------------------------------
9 | USAA Short-Term Bond Fund
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 3,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.37% 5/15/2045 $ 3,135
4,544 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.63 3/15/2046 4,548
2,000 LB-UBS Commercial Mortgage Trust (a) 6.83 7/14/2016 2,048
141 LB-UBS Commercial Mortgage Trust 6.27 6/15/2020 142
962 LB-UBS Commercial Mortgage Trust 4.56 9/15/2026 977
2,270 LB-UBS Commercial Mortgage Trust 4.56 9/15/2027 2,309
4,000 LB-UBS Commercial Mortgage Trust 4.51 12/15/2029 3,991
3,218 LB-UBS Commercial Mortgage Trust 4.82 4/15/2030 3,198
5,000 LB-UBS Commercial Mortgage Trust 5.10 11/15/2030 5,030
1,504 LB-UBS Commercial Mortgage Trust 5.02 2/15/2031 1,513
1,500 Merrill Lynch Mortgage Trust 5.27 (b) 7/12/2038 771
4,916 Merrill Lynch Mortgage Trust 4.17 8/12/2039 4,920
2,095 Merrill Lynch Mortgage Trust 4.35 2/12/2042 2,040
3,856 Merrill Lynch Mortgage Trust 4.81 9/12/2042 3,873
3,031 Merrill Lynch Mortgage Trust 4.56 6/12/2043 3,052
3,000 Merrill Lynch-Countrywide Commercial
Mortgage Trust 5.38 7/12/2046 2,950
2,000 Morgan Stanley Capital I, Inc. 4.73 6/12/2047 1,986
3,977 Morgan Stanley Dean Witter Capital I,
Inc. 7.49 2/23/2034 4,202
2,779 Morgan Stanley Dean Witter Capital I,
Inc. 6.51 4/15/2034 2,899
949 Morgan Stanley Dean Witter Capital I,
Inc. (a) 4.97 5/24/2043 882
900 Morgan Stanley Dean Witter Capital I,
Inc. (a) 5.13 5/24/2043 701
2,000 Mortgage Capital Funding, Inc. 7.17 (b) 6/18/2030 1,984
359 PNC Mortgage Acceptance Corp. 7.51 12/10/2032 360
2,000 PNC Mortgage Acceptance Corp. 7.50 10/12/2033 2,026
2,000 Prudential Securities Secured Financing
Corp. 6.76 6/16/2031 2,025
1,421 Salomon Brothers Mortgage Securities VII,
Inc. 7.46 7/18/2033 1,425
1,965 Salomon Brothers Mortgage Securities VII,
Inc. 4.47 3/18/2036 1,957
2,000 SBA Trust (a) 5.45 11/15/2036 1,953
3,225 Structured Asset Securities Corp. 7.15 10/12/2034 3,301
291 Trizechahn Office Properties Trust (a) 6.09 5/15/2016 302
4,048 Wachovia Bank Commercial Mortgage Trust 4.78 3/15/2042 4,026
6,054 Wachovia Bank Commercial Mortgage Trust 4.66 4/15/2042 6,015
4,080 Wachovia Bank Commercial Mortgage Trust 5.29 (b) 7/15/2042 4,097
2,000 Wachovia Bank Commercial Mortgage Trust 5.35 (b) 10/15/2044 2,096
5,000 Wachovia Bank Commercial Mortgage Trust 5.50 10/15/2048 5,060
---------
253,293
---------
ESCROWED BONDS (0.7%)
4,000 Four Times Square Trust 7.80 4/15/2015 4,025
1,555 GS Mortgage Securities Corp. II (a) 6.21 2/14/2016 1,550
3,000 GS Mortgage Securities Corp. II (a) 6.77 5/03/2018 3,168
---------
8,743
---------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (0.5%)
40,645 Credit Suisse First Boston Mortgage
Securities Corp., acquired
2/26/2004 and 8/30/2004; cost
$1,819(a),(f) 1.13 1/15/2037 500
6,736 Credit Suisse First Boston Mortgage
Securities Corp., acquired
6/17/2003 and 8/04/2005; cost
$594(a),(f) 1.87 5/15/2038 70
9,209 Greenwich Capital Commercial Funding
Corp., acquired 7/17/2003; cost
$534(a),(f) 2.23 1/11/2035 20
39,190 J.P. Morgan Chase Commercial Mortgage
Securities Corp., acquired
8/05/2009; cost $510(a),(f) 0.87 1/12/2037 508
62,097 LB-UBS Commercial Mortgage Trust,
acquired 8/05/2009; cost
$944(a),(f) 1.23 3/15/2036 825
130,064 LB-UBS Commercial Mortgage Trust,
acquired 7/10/2009; cost
$1,687(a),(f) 0.86 10/15/2036 1,788
38,729 LB-UBS Commercial Mortgage Trust,
acquired 5/20/2003 and 12/14/2007;
cost $1,225(a),(f) 1.22 2/15/2037 236
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 10
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 49,559 Morgan Stanley Capital I, Inc., acquired
5/09/2008; cost $1,175(a),(f) 0.99% 4/15/2038 $ 765
48,060 Morgan Stanley Capital I, Inc., acquired
5/09/2008; cost $1,265(a),(f) 1.07 1/13/2041 1,160
---------
5,872
---------
Total Financials 267,908
---------
Total Commercial Mortgage Securities (cost: $266,734) 267,908
---------
U.S. GOVERNMENT AGENCY ISSUES (16.8%)(G)
COLLATERALIZED MORTGAGE OBLIGATIONS (0.2%)
2,000 Freddie Mac (+) 4.50 1/15/2029 2,092
---------
DEBENTURES (0.8%)
5,000 Fannie Mae (+)(c) 1.38 4/28/2011 5,044
4,000 Fannie Mae (+) 1.88 4/20/2012 4,055
---------
9,099
---------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (0.0%)
3,952 Government National Mortgage Assn. 1.75 (b) 7/16/2010 49
---------
MORTGAGE-BACKED PASS-THROUGH SECURITIES (10.5%)
9,166 Fannie Mae (+) 4.50 5/01/2023 9,545
4,311 Fannie Mae (+) 4.50 2/01/2024 4,487
3,537 Fannie Mae (+) 5.00 12/01/2021 3,748
8,455 Fannie Mae (+) 5.00 6/01/2023 8,923
5,927 Fannie Mae (+) 5.00 9/01/2023 6,254
18,590 Fannie Mae (+) 5.00 2/01/2024 19,617
5,156 Fannie Mae (+) 5.50 12/01/2020 5,512
3,639 Fannie Mae (+) 5.50 2/01/2023 3,874
10,767 Fannie Mae (+) 5.50 6/01/2023 11,463
5,000 Fannie Mae (+) 5.50 9/01/2023 5,323
9,711 Fannie Mae (+) 5.50 6/01/2024 10,339
5,785 Fannie Mae (+) 6.00 10/01/2022 6,206
3,918 Fannie Mae (+) 6.00 1/01/2023 4,203
7,138 Fannie Mae (+) 6.00 1/01/2023 7,658
4,145 Fannie Mae (+) 6.00 7/01/2023 4,447
2,911 Freddie Mac (+) 3.91 (b) 4/01/2035 2,989
3,056 Freddie Mac (+) 5.00 5/01/2020 3,254
1,679 Freddie Mac (+) 5.00 9/01/2020 1,788
981 Freddie Mac (+) 5.50 11/01/2018 1,056
2,825 Freddie Mac (+) 5.50 4/01/2021 3,014
---------
123,700
---------
OTHER U.S. GOVERNMENT GUARANTEED SECURITIES (5.3%)(H)
2,000 Bank of America Corp. (INS) 3.13 6/15/2012 2,084
3,000 Citbank, N.A. (INS) 1.63 3/30/2011 3,038
10,000 Citibank N.A. (INS) 1.25 11/15/2011 10,010
10,000 Citigroup Funding, Inc. (INS) 1.88 11/15/2012 10,053
3,000 Citigroup, Inc. (INS) 0.50 (b) 5/07/2012 3,024
3,000 Citigroup, Inc. (INS) 1.38 5/05/2011 3,027
3,000 General Electric Capital Corp. (INS) 2.13 12/21/2012 3,038
10,000 GMAC, Inc. (INS) 1.75 10/30/2012 10,025
1,000 MetLife, Inc., (INS) 0.60 (b) 6/29/2012 1,009
2,000 PNC Funding Corp. (INS) 0.49 (b) 4/01/2012 2,011
5,000 PNC Funding Corp. (INS) 0.57 (b) 6/22/2011 5,029
2,000 Sovereign Bank (INS) 2.75 1/17/2012 2,064
3,000 State Street Corp. (INS) 1.85 3/15/2011 3,045
---------------------------------------------------------------------------------------------------
11 | USAA Short-Term Bond Fund
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 5,000 Western Corp. Federal Credit Union (INS) 1.75% 11/02/2012 $ 5,019
---------
62,476
---------
Total U.S. Government Agency Issues (cost: $191,097) 197,416
---------
MUNICIPAL BONDS (4.4%)
AIRPORT/PORT (0.3%)
980 Cleveland (INS) 5.24 1/01/2017 976
2,745 College Park Georgia (INS) 5.66 1/01/2012 2,816
---------
3,792
---------
APPROPRIATED DEBT (0.1%)
1,050 Reeves County (INS) 5.75 3/01/2012 1,046
---------
BUILDINGS (0.3%)
3,000 Rhode Island EDC 3.78 5/15/2012 3,083
---------
COMMUNITY SERVICE (0.1%)
1,500 American National Red Cross 5.36 11/15/2011 1,528
---------
ELECTRIC UTILITIES (0.9%)
2,000 Air Quality Dev. Auth. 4.75 8/01/2029 2,038
2,000 American Municipal Power, Inc. 3.62 2/15/2013 2,016
3,000 American Municipal Power, Inc. 3.82 2/15/2014 3,041
2,000 Maricopa County 5.50 5/01/2029 2,082
1,605 Mississippi Dev. Bank (INS) 5.24 7/01/2011 1,638
---------
10,815
---------
ELECTRIC/GAS UTILITIES (0.2%)
1,750 Energy Northwest 5.23 7/01/2011 1,856
915 Pedernales Electric Cooperative, Inc.
(INS)(a) 4.09 11/15/2012 921
---------
2,777
---------
ENVIRONMENTAL & FACILITIES SERVICES (0.5%)
2,000 Amelia County IDA 4.80 4/01/2027 2,016
1,085 New York State 4.88 7/01/2017 1,087
1,500 Okeechobee County 5.00 7/01/2039 1,504
1,600 Yavapai County IDA 4.00 6/01/2027 1,611
---------
6,218
---------
GENERAL OBLIGATION (1.1%)
10,000 California 3.00 5/25/2010 10,101
2,000 California 5.65 4/01/2039 2,093
---------
12,194
---------
NURSING/CCRC (0.2%)
2,000 Waco Health Facilities Dev. Corp. (INS) 5.27 2/01/2016 2,069
---------
SALES TAX (0.4%)
5,000 Louisiana 3.00 (b) 5/01/2043 5,033
---------
SPECIAL ASSESSMENT/TAX/FEE (0.3%)
710 City and County of San Francisco
Redevelopment Financing Auth. (INS) 5.62 8/01/2016 716
1,000 New York State Environmental Facilities
Corp. (INS) 4.02 12/15/2009 1,004
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 12
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,000 New York State Housing Finance Agency 5.19% 9/15/2011 $ 1,063
---------
2,783
---------
Total Municipal Bonds (cost: $50,553) 51,338
---------
MONEY MARKET INSTRUMENTS (3.9%)
VARIABLE-RATE DEMAND NOTES (3.1%)
FINANCIALS (0.8%)
-----------------
REAL ESTATE OPERATING COMPANIES (0.8%)
9,405 Wake County Housing Auth. (LOC -
SunTrust Bank) 0.70 12/01/2033 9.405
---------
HEALTH CARE (0.3%)
------------------
HEALTH CARE FACILITIES (0.3%)
3,260 Albany IDA (LOC - RBS Citizens, N.A.) 1.65 5/01/2035 3,260
---------
MUNICIPAL BONDS (1.5%)
----------------------
HOSPITAL (0.8%)
10,000 Johnson City Health and Educational
Facilities Board (LOC - Regions
Bank) 3.10 7/01/2033 10,000
---------
MULTIFAMILY HOUSING (0.7%)
7,820 Housing Finance Commission (LOC - HSH
Nordbank A.G.) 0.40 3/01/2036 7,820
---------
Total Municipal Bonds 17,820
---------
UTILITIES (0.5%)
----------------
ELECTRIC UTILITIES (0.5%)
6,000 Gulf Coast IDA 2.70 5/01/2039 6,000
---------
Total Variable-Rate Demand Notes 36,485
---------
MARKET
NUMBER VALUE
OF SHARES SECURITY (000)
---------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS (0.8%)
9,572,079 State Street Institutional Liquid
Reserve Fund, 0.25%(i) 9,572
---------
Total Money Market Instruments
(cost: $46,057) 46,057
---------
TOTAL INVESTMENTS (COST: $1,149,082) $ 1,181,927
=========
---------------------------------------------------------------------------------------------------
13 | USAA Short-Term Bond Fund
|
---------------------------------------------------------------------------------------------------
($ IN 000S) VALUATION HIERARCHY
-------------------
(LEVEL 1) (LEVEL 2) (LEVEL 3)
QUOTED PRICES OTHER SIGNIFICANT
IN ACTIVE SIGNIFICANT UNOBSERVABLE
MARKETS OBSERVABLE INPUTS
FOR IDENTICAL INPUTS
ASSETS TOTAL
----------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS $ -- $ 356,442 $ -- $ 356,442
EURODOLLAR AND YANKEE OBLIGATIONS -- 44,316 -- 44,316
ASSET-BACKED SECURITIES -- 218,450 -- 218,450
COMMERCIAL MORTGAGE SECURITIES -- 267,908 -- 267,908
U.S. GOVERNMENT AGENCY ISSUES -- 197,416 -- 197,416
MUNICIPAL BONDS -- 51,338 -- 51,338
MONEY MARKET INSTRUMENTS:
VARIABLE-RATE DEMAND NOTES -- 36,485 -- 36,485
MONEY MARKET FUNDS 9,572 -- -- 9,572
----------------------------------------------------------------------------------------------------------
TOTAL $ 9,572 $ 1,172,355 $ -- $ 1,181,927
----------------------------------------------------------------------------------------------------------
Reconciliation of assets in which significant unobservable inputs (Level 3) were used in
determining value:
ASSET-BACKED
SECURITIES
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Balance as of July 31, 2009 $1,008
Net realized gain (loss) -
Change in net unrealized appreciation/depreciation 95
Net purchases (sales) -
Transfers in and/or out of Level 3 (1,103)
----------------------------------------------------------------------------------------------------------
BALANCE AS OF OCTOBER 31, 2009 $ -
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Portfolio of Investments | 14
|
NOTES TO PORTFOLIO
OF INVESTMENTS
October 31, 2009 (unaudited)
GENERAL NOTES
USAA MUTUAL FUNDS TRUST (the Trust), registered under the Investment Company Act
of 1940 (the 1940 Act), as amended, is an open-end management investment company
organized as a Delaware statutory trust consisting of 45 separate funds. The
information presented in this quarterly report pertains only to the USAA
Short-Term Bond Fund (the Fund), which is classified as diversified under the
1940 Act.
The Fund has two classes of shares: Short-Term Bond Fund Shares and Short-Term
Bond Fund Institutional Shares. Each class of shares has equal rights to assets
and earnings, except that each class bears certain class-related expenses
specific to the particular class. These expenses include administration and
servicing fees, transfer agent fees, postage, shareholder reporting fees, and
certain registration and custodian fees. Expenses not attributable to a specific
class, income, and realized gains or losses on investments are allocated to each
class of shares based on each class's relative net assets. Each class has
exclusive voting rights on matters related solely to that class and separate
voting rights on matters that relate to both classes. The Institutional Shares
are currently only offered for sale to the USAA Target Retirement Funds (Target
Funds) and not to the general public. The Target Funds are managed by USAA
Investment Management Company (the Manager), an affiliate of the Fund.
A. SECURITY VALUATION - The value of each security is determined (as of the
close of trading on the New York Stock Exchange (NYSE) on each business day the
NYSE is open) as set forth below:
1. Debt securities with maturities greater than 60 days are valued each business
day by a pricing service (the Service) approved by the Trust's Board of
Trustees. The Service uses an evaluated mean between quoted bid and asked prices
or the last sales price to price securities when, in the Service's judgment,
these prices are readily available and are representative of the securities'
market values. For many securities, such prices are not readily available. The
Service generally prices these securities based on methods that include
consideration of yields or prices of securities of comparable quality, coupon,
maturity, and type; indications as to values from dealers in securities; and
general market conditions.
2. Investments in open-end investment companies, hedge, or other funds, other
than exchange-traded funds, are valued at their net asset value (NAV) at the end
of each business day.
3. Debt securities purchased with original or remaining maturities of 60 days or
less may be valued at amortized cost, which approximates market value.
4. Futures are valued based upon the last sale price at the close of market on
the principal exchange on which they are traded.
15 | USAA Short-Term Bond Fund
5. Securities for which market quotations are not readily available or are
considered unreliable, or whose values have been materially affected by events
occurring after the close of their primary markets but before the pricing of the
Fund, are valued in good faith at fair value, using methods determined by the
Manager under valuation procedures approved by the Trust's Board of Trustees.
The effect of fair value pricing is that securities may not be priced on the
basis of quotations from the primary market in which they are traded and the
actual price realized from the sale of a security may differ materially from the
fair value price. Valuing these securities at fair value is intended to cause
the Fund's NAV to be more reliable than it otherwise would be.
Fair value methods used by the Manager include, but are not limited to,
obtaining market quotations from secondary pricing services, broker-dealers, or
widely used quotation systems. General factors considered in determining the
fair value of securities include fundamental analytical data, the nature and
duration of any restrictions on disposition of the securities, and an evaluation
of the forces that influenced the market in which the securities are purchased
and sold.
B. FAIR VALUE MEASUREMENTS - Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The three-level
valuation hierarchy disclosed in the portfolio of investments is based upon the
transparency of inputs to the valuation of an asset or liability as of the
measurement date. The three levels are defined as follows:
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) in
active markets for identical securities.
Level 2 - inputs to the valuation methodology are other significant observable
inputs, including quoted prices for similar securities, inputs 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.
C. FUTURES CONTRACTS - The Fund is subject to equity price risk, interest rate
risk, and foreign currency exchange rate risk in the normal course of pursuing
its investment objectives. The Fund may use futures contracts to gain exposure
to, or hedge against, changes in the value of equities, interest rates, or
foreign currencies. A futures contract represents a commitment for the future
purchase or sale of an asset at a specified price on a specified date. Upon
entering into such contracts, the Fund is required to deposit with the broker in
either cash or securities an initial margin in an amount equal to a certain
percentage of the contract amount. Subsequent payments (variation margin) are
made or received by the Fund each day, depending on the daily fluctuations in
the value of the contract, and are recorded for financial statement purposes as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. Upon entering
into such
Notes to Portfolio of Investments | 16
contracts, the Fund bears the risk of interest or exchange rates or securities
prices moving unexpectedly in an unfavorable direction, in which case, the Fund
may not achieve the anticipated benefits of the futures contracts. The Fund had
no futures contracts as of October 31, 2009.
D. 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.
The purchase of securities on a delayed-delivery or when-issued basis may
increase the volatility of the Fund's NAV to the extent that the Fund makes such
purchases while remaining substantially fully invested.
E. SUBSEQUENT EVENTS - Subsequent events are events or transactions that occur
after the balance sheet date but before the quarterly report is issued and are
categorized as recognized or non-recognized for quarterly report purposes. The
Manager has evaluated subsequent events through December 17, 2009, the date the
quarterly report was issued, and has determined there were no events that
required recognition or disclosure in the Fund's quarterly report.
F. As of October 31, 2009, the cost of securities, for federal income tax
purposes, was approximately the same as that reported in the portfolio of
investments. Gross unrealized appreciation and depreciation of investments as of
October 31, 2009, were $40,881,000 and $8,036,000 respectively, resulting in net
unrealized appreciation of $32,845,000.
G. The portfolio of investments category percentages shown represent the
percentages of the investments to net assets, which were $1,174,033,000 at
October 31, 2009, and, in total, may not equal 100%. A category percentage of
0.0% represents less than 0.1% of net assets.
CATEGORIES AND DEFINITIONS
ASSET-BACKED AND COMMERCIAL MORTGAGE-BACKED SECURITIES - Asset-backed securities
represent a participation in, or are secured by and payable from, a stream of
payments generated by particular assets. Commercial mortgage-backed securities
reflect an interest in, and are secured by, mortgage loans on commercial real
property. The weighted average life is likely to be substantially shorter than
the stated final maturity as a result of scheduled and unscheduled principal
repayments.
EURODOLLAR AND YANKEE OBLIGATIONS - Eurodollar obligations are
dollar-denominated instruments that are issued outside the U.S. capital markets
by foreign corporations and financial institutions and by foreign branches of
U.S. corporations and financial institutions. Yankee obligations are
dollar-denominated instruments that are issued by foreign issuers in the U.S.
capital markets.
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS IOS) - represent the
right to receive only the interest payments on an underlying pool of commercial
mortgage loans. The purchase yield reflects an anticipated yield based upon
interest rates at the time of purchase and the estimated timing and amount of
future cash flows. Coupon rates after purchase vary from period to period. The
principal amount represents the notional amount of the underlying pool on which
current
17 | USAA Short-Term Bond Fund
interest is calculated. CMBS IOs are backed by loans that have various forms of
prepayment protection, which include lock-out provisions, yield maintenance
provisions, and prepayment penalties. This serves to moderate their prepayment
risk. CMBS IOs are subject to default-related prepayments that may have a
negative impact on yield.
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. VRDNs will
normally trade as if the maturity is the earlier put date, even though stated
maturity is longer.
PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS
EDC Economic Development Corp.
IDA Industrial Development Authority/Agency
REIT Real estate investment trust
|
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 market values of the securities.
(INS) Principal and interest payments are insured by one of the following:
ACA Financial Guaranty Corp., AMBAC Assurance Corp., Federal Deposit
Insurance Corp., Financial Guaranty Insurance Co.,
Financial Security Assurance Corp., MBIA Insurance Corp., or
National Public Finance Guarantee Corp. Although bond insurance
reduces the risk of loss due to default by an issuer, such bonds
remain subject to the risk that value may fluctuate for other
reasons, and there is no assurance that the insurance company will
meet its obligations.
(LOC) Principal and interest payments are guaranteed by a bank letter of
credit or other bank credit agreement.
|
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, unless otherwise
noted as illiquid.
(b) Variable-rate or floating-rate security - interest rate is adjusted
periodically. The interest rate disclosed represents the current rate at
October 31, 2009.
(c) At October 31, 2009, portions of these securities were segregated to
cover delayed-delivery and/or when-issued purchases.
(d) Security is perpetual and has no final maturity date but may be subject
to calls at various dates in the future.
Notes to Portfolio of Investments | 18
(e) At October 31, 2009, the aggregate market value of securities purchased
on a when-issued basis was $8,725,000.
(f) Security deemed illiquid by the Manager, under liquidity guidelines
approved by the Trust's Board of Trustees. The aggregate market value of
these securities at October 31, 2009, was $5,872,000, which represented
0.5% of the Fund's net assets.
(g) U.S. government agency issues - mortgage-backed securities issued by
Government National Mortgage Association (GNMA) and certain other U.S.
government guaranteed securities are supported by the full faith and
credit of the U.S. government. Securities issued by government-sponsored
enterprises, indicated with "+" are supported only by the right of the
government-sponsored enterprise to borrow from the U.S. Treasury, the
discretionary authority of the U.S. government to purchase the
government-sponsored enterprises' obligations, or by the credit of the
issuing agency, instrumentality, or corporation, and are neither issued
nor guaranteed by the U.S. Treasury.
(h) Other U.S. government guaranteed securities - Securities guaranteed by
the FDIC Temporary Liquidity Guarantee Program, which provides a
guarantee of payment of principal and interest on certain newly issued
senior unsecured debt through the program's expiration date on December
31, 2012. The guarantee carries the full faith and credit of the U.S.
government.
(i) Rate represents the money market fund annualized seven-day yield at
October 31, 2009.
19 | USAA Short-Term Bond Fund
ITEM 2. 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-Q 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.
ITEM 3. EXHIBITS.
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.
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 October 31, 2009
By:* /s/ CHRISTOPHER P. LAIA
--------------------------------------------------------------
Signature and Title: Christopher P. Laia, Assistant Secretary
Date: 12-18-2009
-------------------------------
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By:* /s/ CHRISTOPHER W. CLAUS
-----------------------------------------------------
Signature and Title: Christopher W. Claus, President
Date: 12-21-2009
------------------------------
By:* /s/ ROBERTO GALINDO, JR.
-----------------------------------------------------
Signature and Title: Roberto Galindo, Jr., Treasurer
Date: 12-18-2009
------------------------------
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*PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.
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