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 HIGH-YIELD OPPORTUNITIES FUND
OCTOBER 31, 2009
(Form N-Q)
48448-1209 (c)2009, USAA. All rights reserved.
PORTFOLIO OF INVESTMENTS
USAA HIGH-YIELD OPPORTUNITIES FUND
October 31, 2009 (unaudited)
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (71.5%)
CONSUMER DISCRETIONARY (11.3%)
------------------------------
ADVERTISING (0.1%)
$ 1,000 Lamar Media Corp. 9.75% 4/01/2014 $ 1,105
---------
APPAREL & ACCESSORIES & LUXURY GOODS (1.0%)
2,250 Hanesbrands, Inc. 4.59 (a) 12/15/2014 2,008
1,000 Jostens IH Corp. 7.63 10/01/2012 1,005
3,750 Kellwood Co. (b) 12.88 12/31/2014 1,969
3,000 Kellwood Co. 7.63 10/15/2017 1,054
3,000 Levi Strauss & Co. 9.75 1/15/2015 3,135
2,000 Quiksilver, Inc. 6.88 4/15/2015 1,545
---------
10,716
---------
APPAREL RETAIL (0.1%)
1,000 Limited Brands, Inc. 8.50 6/15/2019 1,055
---------
AUTO PARTS & EQUIPMENT (1.0%)
2,000 American Axle and Manufacturing, Inc.
(c),(d) 7.28 6/14/2012 1,917
2,000 Arvinmeritor, Inc. 8.13 9/15/2015 1,750
1,318 Federal-Mogul Corp. (c) 2.19 12/27/2014 1,011
672 Federal-Mogul Corp. (c) 2.19 12/27/2015 516
2,000 Lear Corp. (e) 5.75 1/01/2034 1,380
997 Metaldyne Co., LLC (c) 5.59 1/11/2014 73
1,029 Tenneco Automotive, Inc. 10.25 7/15/2013 1,060
200 Tenneco Automotive, Inc. 8.63 11/15/2014 190
500 Tenneco Automotive, Inc. 8.13 11/15/2015 493
2,000 Titan International, Inc. 8.00 1/15/2012 1,895
1,000 Visteon Corp. 7.00 3/10/2014 265
---------
10,550
---------
BROADCASTING (3.0%)
3,000 Canwest Mediaworks LP (e),(f) 9.25 8/01/2015 825
2,000 CCH I Holdings, LLC (e) 13.50 1/15/2014 60
2,500 CCH I, LLC (e) 11.00 10/01/2015 500
1,928 CCH II, LLC (e),(f) 10.25 10/01/2013 2,193
3,000 CCO Holdings, LLC (e) 8.75 11/15/2013 3,270
8,000 Charter Communications Operating LLC (f) 8.00 4/30/2012 8,160
1,000 CSC Holdings, Inc. 7.63 4/01/2011 1,041
1,000 EchoStar DBS Corp. 7.13 2/01/2016 1,005
3,000 LBI Media, Inc. (f) 8.50 8/01/2017 2,100
2,000 Liberty Media Corp., LLC 5.70 5/15/2013 1,890
3,000 Mediacom Broadband, LLC 8.50 10/15/2015 3,045
1,000 Sinclair Television Group, Inc. (f) 9.25 11/01/2017 1,000
983 Telesat Canada, Inc. (c) 8.20 9/01/2014 946
4,000 Univision Communications, Inc. (c) 2.53 9/29/2014 3,218
1,000 XM Satellite Radio, Inc. 11.25 6/15/2013 1,060
---------
30,313
---------
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1 | USAA High-Yield Opportunities Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
CABLE & SATELLITE (0.1%)
$ 1,000 Cequel Communications Holdings I, LLC and
Cequel Capital Corp. (f) 8.63% 11/15/2017 $ 986
---------
CASINOS & GAMING (3.2%)
1,000 Ameristar Casinos, Inc. (f) 9.25 6/01/2014 1,050
3,235 Harrah's Operating Co., Inc. (c) 3.28 1/28/2015 2,586
172 Harrah's Operating Co., Inc. (f) 10.00 2/01/2016 132
4,927 Harrah's Operating Co., Inc. 10.00 12/15/2018 3,695
3,000 Harrah's Operating Escrow 11.25 6/01/2017 3,083
3,200 Inn of the Mountain Gods (e) 12.00 11/15/2010 1,296
3,000 Jacobs Entertainment, Inc. 9.75 6/15/2014 2,745
1,695 MGM Mirage (c) 6.00 10/03/2011 1,535
1,030 MGM Mirage 6.75 9/01/2012 888
3,000 MGM Mirage (f) 13.00 11/15/2013 3,420
1,000 MGM Mirage (f) 10.38 5/15/2014 1,070
1,000 MGM Mirage (f) 11.13 11/15/2017 1,105
1,000 Pinnacle Entertainment, Inc. (f) 8.63 8/01/2017 995
3,734 Pokagon Gaming Auth. (f) 10.38 6/15/2014 3,883
2,000 Shingle Springs Tribal Gaming Auth. (f) 9.38 6/15/2015 1,430
3,000 Snoqualmie Entertainment Auth. (f) 4.68 (a) 2/01/2014 1,485
1,000 Snoqualmie Entertainment Auth. (f) 9.13 2/01/2015 525
2,000 Turning Stone Resort Casino (f) 9.13 9/15/2014 1,950
---------
32,873
---------
CATALOG RETAIL (0.1%)
1,500 Harry & David Operations Corp. 9.00 3/01/2013 1,072
---------
DEPARTMENT STORES (0.3%)
1,000 Federated Department Stores, Inc. 6.90 4/01/2029 830
1,000 J.C. Penney Co., Inc. 7.40 4/01/2037 915
2,000 May Dept Stores Co. 7.88 8/15/2036 1,642
---------
3,387
---------
DISTRIBUTORS (0.1%)
957 KAR Holdings, Inc. (c) 7.57 10/18/2013 918
---------
HOME FURNISHINGS (0.2%)
2,000 Simmons Co. (g) 7.88 1/15/2014 1,830
---------
HOMEBUILDING (0.4%)
2,000 D. R. Horton, Inc. 5.63 1/15/2016 1,850
1,000 Lennar Corp. 12.25 6/01/2017 1,200
1,000 Pulte Homes, Inc. 5.25 1/15/2014 975
---------
4,025
---------
HOTELS, RESORTS, & CRUISE LINES (0.1%)
1,000 Starwood Hotels & Resorts Worldwide,
Inc. 7.88 10/15/2014 1,040
---------
HOUSEHOLD APPLIANCES (0.1%)
1,000 Stanley Works Capital Trust I 5.90 12/01/2045 896
---------
LEISURE FACILITIES (0.2%)
4,475 Town Sports International Holdings, Inc. 11.00 2/01/2014 2,349
---------
LEISURE PRODUCTS (0.1%)
1,000 Riddell Bell Holdings, Inc. 8.38 10/01/2012 965
---------
MOVIES & ENTERTAINMENT (0.3%)
1,500 AMC Entertainment, Inc. 8.75 6/01/2019 1,545
1,000 Cinemark USA, Inc. 8.63 6/15/2019 1,041
250 WMG Acquisition Corp. 9.50 6/15/2016 270
---------
2,856
---------
PUBLISHING (0.6%)
171 American Media Operations, Inc. (f) 9.00 5/01/2013 106
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Portfolio of Investments | 2
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,781 American Media Operations, Inc. (f) 14.00% 11/01/2013 $ 1,095
968 Idearc, Inc. (c),(e) 0.00 (m) 11/17/2014 440
1,000 Idearc, Inc. (e) 8.00 11/15/2016 50
2,000 Network Communications, Inc. 10.75 12/01/2013 710
1,000 Quebecor Media, Inc. 7.75 3/15/2016 990
4,412 R.H. Donnelley, Inc. (e),(f) 11.75 5/15/2015 2,603
4,000 Readers Digest Association, Inc. (e) 9.00 2/15/2017 70
---------
6,064
---------
SPECIALIZED CONSUMER SERVICES (0.1%)
1,000 Service Corp. International 7.63 10/01/2018 1,002
---------
TIRES & RUBBER (0.2%)
1,000 Goodyear Tire & Rubber Co. 9.00 7/01/2015 1,030
1,000 Goodyear Tire & Rubber Co. 10.50 5/15/2016 1,085
---------
2,115
---------
Total Consumer Discretionary 116,117
---------
CONSUMER STAPLES (2.7%)
-----------------------
AGRICULTURAL PRODUCTS (0.2%)
1,000 Southern States Cooperative, Inc. 11.00 11/01/2010 1,010
1,000 Southern States Cooperative, Inc. (f) 11.00 11/01/2010 955
---------
1,965
---------
DISTILLERS & VINTNERS (0.1%)
1,000 Constellation Brands, Inc. 7.25 5/15/2017 1,008
---------
DRUG RETAIL (0.8%)
1,865 CVS Caremark Corp. 6.04 12/10/2028 1,837
1,000 CVS Caremark Corp. 6.30 6/01/2037 860
1,000 Rite Aid Corp. 8.63 3/01/2015 830
1,250 Rite Aid Corp. (c) 9.50 6/05/2015 1,289
1,000 Rite Aid Corp. 9.38 12/15/2015 825
3,000 Rite Aid Corp. 10.38 7/15/2016 3,045
---------
8,686
---------
FOOD RETAIL (0.4%)
1,000 American Stores Co. 8.00 6/01/2026 902
3,000 ARAMARK Corp. (h) 8.50 2/01/2015 3,045
---------
3,947
---------
HOUSEHOLD PRODUCTS (0.4%)
3,815 JohnsonDiversey Holdings, Inc. 10.67 5/15/2013 3,875
---------
PACKAGED FOODS & MEAT (0.8%)
1,000 Michael Foods, Inc. 8.00 11/15/2013 1,015
4,000 Pilgrim's Pride Corp. (e) 8.38 5/01/2017 4,510
1,175 Reddy Ice Holdings, Inc. 10.50 11/01/2012 1,081
1,000 Smithfield Foods, Inc. (f) 10.00 7/15/2014 1,052
1,000 Tyson Foods, Inc. 7.85 4/01/2016 1,041
---------
8,699
---------
Total Consumer Staples 28,180
---------
ENERGY (9.0%)
-------------
COAL & CONSUMABLE FUELS (0.4%)
1,000 Arch Coal, Inc. 8.75 8/01/2016 1,028
1,500 Murray Energy Corp. (f) 10.25 10/15/2015 1,507
2,000 Peabody Energy Corp. 7.88 11/01/2026 1,982
---------
4,517
---------
OIL & GAS DRILLING (0.1%)
1,250 Hercules Offshore, LLC (f) 10.50 10/15/2017 1,244
---------
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3 | USAA High-Yield Opportunities Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
OIL & GAS EQUIPMENT & SERVICES (0.4%)
$ 2,000 Basic Energy Services, Inc. 7.13% 4/15/2016 $ 1,650
3,700 Seitel, Inc. 9.75 2/15/2014 2,414
---------
4,064
---------
OIL & GAS EXPLORATION & PRODUCTION (3.0%)
2,000 Berry Petroleum Co. 8.25 11/01/2016 1,965
1,000 Bill Barrett Corp. 9.88 7/15/2016 1,065
1,000 Brigham Exploration Co. 9.63 5/01/2014 960
500 Calfrac Holdings, LP (f) 7.75 2/15/2015 485
2,000 Chaparral Energy, Inc. 8.50 12/01/2015 1,760
3,000 Chesapeake Energy Corp. 9.50 2/15/2015 3,251
1,000 Chesapeake Energy Corp. 6.50 8/15/2017 940
1,000 Cimarex Energy Co. 7.13 5/01/2017 970
1,000 Denbury Resources, Inc. 9.75 3/01/2016 1,075
1,000 Encore Acquisition Co. 9.50 5/01/2016 1,070
1,500 Helix Energy Solutions Group, Inc. (f) 9.50 1/15/2016 1,560
1,000 Linn Energy LLC (f) 11.75 5/15/2017 1,115
1,000 Linn Energy LLC 9.88 7/01/2018 1,030
2,000 Mariner Energy, Inc. 11.75 6/30/2016 2,205
2,000 Petrohawk Energy Corp. 10.50 8/01/2014 2,180
2,710 Pioneer Natural Resource Co. 6.65 3/15/2017 2,618
1,000 Plains Exploration & Production Co. 7.75 6/15/2015 996
1,000 Plains Exploration & Production Co. 7.63 6/01/2018 983
1,000 Quicksilver Resources, Inc. 8.25 8/01/2015 981
1,000 Quicksilver Resources, Inc. 11.75 1/01/2016 1,115
1,000 Quicksilver Resources, Inc. 7.13 4/01/2016 905
1,000 SandRidge Energy, Inc. (f) 9.88 5/15/2016 1,065
---------
30,294
---------
OIL & GAS REFINING & MARKETING (0.4%)
1,133 Amerigas Partners, LP 7.25 5/20/2015 1,116
1,000 MarkWest Energy Partners LP 6.88 11/01/2014 945
1,000 Tesoro Corp. 6.63 11/01/2015 928
1,000 Tesoro Corp. 9.75 6/01/2019 1,032
---------
4,021
---------
OIL & GAS STORAGE & TRANSPORTATION (4.7%)
1,000 El Paso Corp. 12.00 12/12/2013 1,150
2,000 El Paso Corp. 7.80 8/01/2031 1,865
10,400 Enbridge Energy Partners, LP 8.05 10/01/2037 9,764
4,000 Enterprise Products Operating, LP (h) 8.38 8/01/2066 3,925
9,250 Enterprise Products Operating, LP 7.00 6/01/2067 8,121
9,000 Enterprise Products Operating, LP 7.03 1/15/2068 8,292
1,405 Kinder Morgan Finance Co. 5.70 1/05/2016 1,343
2,980 MarkWest Energy Partners LP 8.50 7/15/2016 3,040
250 MarkWest Energy Partners LP 8.75 4/15/2018 256
2,000 Regency Energy Partners, LP (f) 9.38 6/01/2016 2,107
2,000 Sabine Pass LNG, LP 7.25 11/30/2013 1,800
2,000 Sabine Pass LNG, LP 7.50 11/30/2016 1,700
2,000 SourceGas, LLC (f) 5.90 4/01/2017 1,715
3,000 Targa Resources, Inc. (h) 8.50 11/01/2013 2,940
---------
48,018
---------
Total Energy 92,158
---------
FINANCIALS (20.0%)
------------------
ASSET MANAGEMENT & CUSTODY BANKS (0.3%)
2,000 American Capital Strategies Ltd. 8.85 (a) 8/01/2012 1,766
1,000 Nuveen Investments, Inc. (f) 10.50 11/15/2015 885
---------
2,651
---------
CONSUMER FINANCE (4.1%)
4,000 Capital One Financial Corp. 7.69 8/15/2036 3,490
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Portfolio of Investments | 4
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 968 Daimler Finance N.A. LLC (c) 9.36% 8/03/2012 $ 930
2,000 Ford Motor Credit Co., LLC 7.50 8/01/2012 1,949
5,000 Ford Motor Credit Co., LLC 7.00 10/01/2013 4,747
7,000 Ford Motor Credit Co., LLC 8.00 6/01/2014 6,808
2,000 Ford Motor Credit Co., LLC 8.70 10/01/2014 1,985
5,000 Ford Motor Credit Co., LLC 12.00 5/15/2015 5,625
2,000 General Motors Acceptance Corp. (f) 6.88 9/15/2011 1,930
4,000 General Motors Acceptance Corp. 6.88 8/28/2012 3,776
3,000 General Motors Acceptance Corp. 6.88 8/28/2012 2,865
7,000 General Motors Acceptance Corp. (f) 6.75 12/01/2014 6,440
2,000 General Motors Acceptance Corp. 6.75 12/01/2014 1,815
---------
42,360
---------
DIVERSIFIED BANKS (1.6%)
1,000 Comerica Capital Trust II 6.58 2/20/2037 735
3,000 First Tennessee Bank, N.A. 5.65 4/01/2016 2,610
5,186 ING Groep N.V. 5.78 -(i) 3,790
750 KeyCorp Capital II 6.88 3/17/2029 630
2,000 Manufacturers & Traders Trust Co. 5.63 12/01/2021 1,619
5,000 USB Capital IX 6.19 -(i) 3,888
2,000 USB Realty Corp. (f) 6.09 -(i) 1,406
2,000 Wells Fargo Capital XV 9.75 -(i) 2,160
---------
16,838
---------
INVESTMENT BANKING & BROKERAGE (0.1%)
2,000 Lehman Brothers Holdings, Inc. (e) 5.75 4/25/2011 315
2,000 Lehman Brothers Holdings, Inc. (e) 6.88 5/02/2018 338
---------
653
---------
LIFE & HEALTH INSURANCE (2.0%)
1,000 Americo Life, Inc. (f) 7.88 5/01/2013 773
2,000 Great-West Life & Annuity Insurance Co.
(f) 7.15 5/16/2046 1,690
9,000 Lincoln National Corp. 7.00 5/17/2066 7,470
2,000 MetLife, Inc. 10.75 8/01/2069 2,430
2,000 Prudential Financial, Inc. 8.88 6/15/2038 2,145
9,000 StanCorp Financial Group, Inc. 6.90 6/01/2067 6,041
---------
20,549
---------
MULTI-LINE INSURANCE (3.4%)
1,000 Farmers Exchange Capital (f) 7.05 7/15/2028 859
1,700 Farmers Insurance Exchange (f) 8.63 5/01/2024 1,660
7,200 Genworth Financial, Inc. 6.15 11/15/2066 4,878
7,000 Glen Meadow (f) 6.51 2/12/2067 5,372
3,780 Hanover Insurance Group, Inc. 8.21 2/03/2027 3,143
15,500 ILFC E-Capital Trust I (f) 5.90 12/21/2065 7,440
3,000 ILFC E-Capital Trust II (f) 6.25 12/21/2065 1,440
3,000 Oil Casualty Insurance Ltd. (f) 8.00 9/15/2034 2,002
11,250 Oil Insurance Ltd. (f) 7.56 -(i) 7,963
---------
34,757
---------
MULTI-SECTOR HOLDINGS (1.0%)
2,750 Leucadia National Corp. 7.13 3/15/2017 2,612
9,025 Leucadia National Corp. 8.65 1/15/2027 8,168
---------
10,780
---------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.9%)
2,000 AgFirst Farm Credit Bank 6.59 -(i) 1,291
5,000 BankAmerica Institutional Capital (f) 8.07 12/31/2026 4,813
4,000 General Electric Capital Corp. 6.38 11/15/2067 3,475
---------
9,579
---------
PROPERTY & CASUALTY INSURANCE (1.1%)
2,000 First American Capital Trust I 8.50 4/15/2012 1,905
1,500 Kingsway America, Inc. 7.50 2/01/2014 1,207
2,000 Liberty Mutual Group, Inc. (f) 7.00 3/15/2037 1,588
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5 | USAA High-Yield Opportunities Fund
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 5,000 Progressive Corp. 6.70% 6/15/2037 $ 4,386
2,000 Zenith National Insurance Capital Trust
(f),(h) 8.55 8/01/2028 1,930
---------
11,016
---------
REGIONAL BANKS (1.0%)
1,500 AmSouth Bank, N.A. 5.20 4/01/2015 1,312
1,500 First Empire Capital Trust I 8.23 2/01/2027 1,139
2,500 Huntington Capital III 6.65 5/15/2037 1,500
2,000 National City Preferred Capital Trust I 12.00 -(i) 2,294
4,000 Webster Capital Trust IV 7.65 6/15/2037 2,500
1,500 Zions Bancorp 5.50 11/16/2015 1,173
---------
9,918
---------
REITS - MORTGAGE (0.2%)
1,000 iStar Financial, Inc. (f) 8.00 3/15/2011 880
1,000 iStar Financial, Inc. (f) 10.00 6/15/2014 845
---------
1,725
---------
REITS - OFFICE (0.9%)
1,000 Brandywine Operating Partnership, LP 6.00 4/01/2016 930
2,000 Brandywine Operating Partnership, LP 5.70 5/01/2017 1,806
2,000 HRPT Properties Trust 6.25 8/15/2016 1,876
1,700 HRPT Properties Trust 6.25 6/15/2017 1,561
3,055 Reckson Operating Partnership, LP 6.00 3/31/2016 2,643
---------
8,816
---------
REITS - RETAIL (2.2%)
4,000 Developers Diversified Realty Corp. 3.50 8/15/2011 3,730
2,000 Developers Diversified Realty Corp. 3.00 3/15/2012 1,800
2,000 Developers Diversified Realty Corp. 5.38 10/15/2012 1,877
2,500 New Plan Excel Realty Trust, Inc. 4.50 2/01/2011 2,103
7,000 New Plan Excel Realty Trust, Inc. 5.13 9/15/2012 5,075
3,000 New Plan Excel Realty Trust, Inc. 5.30 1/15/2015 1,673
2,675 New Plan Excel Realty Trust, Inc. 5.25 9/15/2015 1,598
1,550 New Plan Excel Realty Trust, Inc. 7.50 7/30/2029 752
2,000 Rouse Co. (e) 8.00 4/30/2009 1,830
2,000 Rouse Co., LP (e),(f) 6.75 5/01/2013 1,790
---------
22,228
---------
REITS - SPECIALIZED (0.5%)
2,000 Host Hotels & Resorts, LP 6.75 6/01/2016 1,915
1,000 Host Hotels & Resorts, LP (f) 9.00 5/15/2017 1,071
1,000 Strategic Hotels & Resorts, Inc. (f) 3.50 4/01/2012 736
2,000 Ventas Realty, LP 6.75 4/01/2017 1,930
---------
5,652
---------
SPECIALIZED FINANCE (0.7%)
2,300 Assured Guaranty U.S. Holdings, Inc. 6.40 12/15/2066 1,644
1,000 Financial Security Assurance Holdings
Ltd. (f) 6.40 12/15/2066 615
3,500 MBIA Insurance Co. (f) 14.00 1/15/2033 1,557
1,000 Petroplus Finance Ltd. (f) 7.00 5/01/2017 908
2,000 Syncora Holdings Ltd. (j) 6.88 -(i) --
3,000 XL Capital Ltd. 6.50 -(i) 2,314
---------
7,038
---------
THRIFTS & MORTGAGE FINANCE (0.0%)
1,000 Washington Mutual Bank 5.55 6/16/2010 348
---------
Total Financials 204,908
---------
HEALTH CARE (5.0%)
------------------
HEALTH CARE EQUIPMENT (0.5%)
1,000 Accellent, Inc. 10.50 12/01/2013 991
990 Biomet, Inc. (c) 3.29 3/25/2015 953
1,000 Biomet, Inc. 10.00 10/15/2017 1,087
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Portfolio of Investments | 6
|
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,000 Insight Health Services Corp. 5.73% (a) 11/01/2011 $ 495
2,500 Universal Hospital Services, Inc. 4.64 (a) 6/01/2015 2,119
---------
5,645
---------
HEALTH CARE FACILITIES (3.4%)
2,886 Community Health Systems, Inc. (c),(d) 7.57 7/24/2014 2,685
1,000 Community Health Systems, Inc. 8.88 7/15/2015 1,035
2,257 HCA, Inc. (c) 2.53 11/18/2013 2,104
4,000 HCA, Inc. 5.75 3/15/2014 3,740
3,000 HCA, Inc. 9.25 11/15/2016 3,150
4,207 HCA, Inc. 9.63 11/15/2016 4,491
2,000 HCA, Inc. (f) 8.50 4/15/2019 2,130
959 HealthSouth Corp. (c) 6.04 3/10/2013 923
2,000 HealthSouth Corp. 10.75 6/15/2016 2,190
2,000 IASIS Healthcare, LLC 8.75 6/15/2014 2,060
1,000 LifePoint Hospitals, Inc. 3.50 5/15/2014 900
3,000 Select Medical Corp. 7.63 2/01/2015 2,850
1,000 Sun Healthcare Group, Inc. 9.13 4/15/2015 1,015
2,000 Tenet Healthcare Corp. 7.38 2/01/2013 1,950
2,000 Tenet Healthcare Corp. (f) 9.00 5/01/2015 2,125
1,000 United Surgical Partners International,
Inc. 8.88 5/01/2017 1,010
---------
34,358
---------
HEALTH CARE SERVICES (0.8%)
1,500 Alliance Imaging, Inc. 7.25 12/15/2012 1,493
1,750 AMR Holdco, Inc. 10.00 2/15/2015 1,855
500 Omnicare, Inc. 6.88 12/15/2015 480
2,000 Psychiatric Solutions, Inc. 7.75 7/15/2015 1,980
1,039 US Oncology, Inc. 5.68 (a) 3/15/2012 919
1,000 US Oncology, Inc. 10.75 8/15/2014 1,050
---------
7,777
---------
HEALTH CARE SUPPLIES (0.3%)
1,000 Bausch & Lomb, Inc. 9.88 11/01/2015 1,043
1,000 DJO Finance LLC 10.88 11/15/2014 1,047
1,000 VWR Funding, Inc. 10.25 7/15/2015 945
---------
3,035
---------
Total Health Care 50,815
---------
INDUSTRIALS (6.4%)
------------------
AEROSPACE & DEFENSE (0.2%)
1,000 BE Aerospace, Inc. 8.50 7/01/2018 1,042
1,000 Bombardier, Inc. (f) 8.00 11/15/2014 1,030
---------
2,072
---------
AIR FREIGHT & LOGISTICS (0.2%)
3,000 Park Ohio Industries, Inc. 8.38 11/15/2014 2,370
---------
AIRLINES (0.8%)
1,238 America West Airlines, Inc. Pass-Through
Trust 6.87 1/02/2017 1,084
565 America West Airlines, Inc. Pass-Through
Trust 7.12 1/02/2017 411
2,000 American Airlines, Inc. Pass-Through
Trust 6.82 5/23/2011 1,910
2,000 Continental Airlines, Inc. 8.75 12/01/2011 1,830
135 Continental Airlines, Inc. Pass-Through
Trust 8.50 5/01/2011 127
387 Continental Airlines, Inc. Pass-Through
Trust 7.03 6/15/2011 361
2,000 Continental Airlines, Inc. Pass-Through
Trust 9.00 7/08/2016 2,136
---------
7,859
---------
BUILDING PRODUCTS (0.7%)
2,000 Building Materials Corp. of America 7.75 8/01/2014 1,990
2,000 Esco Corp. (f) 4.17 (a) 12/15/2013 1,820
250 Esco Corp. (f) 8.63 12/15/2013 248
1,500 Nortek, Inc. (e) 8.50 9/01/2014 1,095
500 Ply Gem Industries, Inc. 11.75 6/15/2013 470
---------------------------------------------------------------------------------------------------
7 | USAA High-Yield Opportunities Fund
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 750 USG Corp. (f) 9.75% 8/01/2014 $ 780
1,000 USG Corp. 6.30 11/15/2016 865
---------
7,268
---------
COMMERCIAL PRINTING (0.4%)
3,000 Deluxe Corp. 5.00 12/15/2012 2,824
2,000 Harland Clarke Holdings Corp. 10.07 (a) 5/15/2015 1,625
---------
4,449
---------
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS (0.7%)
500 Case New Holland, Inc. (f) 7.75 9/01/2013 499
1,000 Case New Holland, Inc. 7.13 3/01/2014 982
1,985 Manitowoc Co., Inc. (c) 7.08 4/14/2014 1,953
1,000 Navistar International Corp. 8.25 11/01/2021 977
1,000 Terex Corp. 7.38 1/15/2014 990
2,000 United Rentals North America, Inc. 7.75 11/15/2013 1,840
---------
7,241
---------
ELECTRICAL COMPONENTS & EQUIPMENT (0.4%)
1,500 Baldor Electric Co. 8.63 2/15/2017 1,549
2,000 RBS Global, Inc. 9.50 8/01/2014 1,990
---------
3,539
---------
ENVIRONMENTAL & FACILITIES SERVICES (0.1%)
1,000 Casella Waste Systems, Inc. (f) 11.00 7/15/2014 1,063
---------
HIGHWAYS & RAILTRACKS (0.4%)
2,100 American Railcar Industries, Inc. 7.50 3/01/2014 1,916
2,000 RailAmerica, Inc. 9.25 7/01/2017 2,100
---------
4,016
---------
INDUSTRIAL CONGLOMERATES (0.6%)
2,774 Textron Financial Corp. 5.40 4/28/2013 2,743
5,000 Textron Financial Corp. (f) 6.00 2/15/2067 3,356
---------
6,099
---------
INDUSTRIAL MACHINERY (0.0%)
500 Mueller Water Products, Inc. 7.38 6/01/2017 436
---------
OFFICE SERVICES & SUPPLIES (0.3%)
1,000 ACCO Brands Corp. 10.63 3/15/2015 1,091
1,481 West Corp. (c) 2.62 10/24/2013 1,359
500 West Corp. 9.50 10/15/2014 505
---------
2,955
---------
RAILROADS (0.4%)
6,310 Southern Capital Corp. (f) 5.70 6/30/2023 4,311
---------
TRADING COMPANIES & DISTRIBUTORS (0.6%)
2,000 RSC Equipment Rental Corp. 9.50 12/01/2014 1,985
3,000 United Rentals North America, Inc. (h) 6.50 2/15/2012 2,955
1,000 United Rentals North America, Inc. (f) 10.88 6/15/2016 1,090
---------
6,030
---------
TRUCKING (0.6%)
2,000 Avis Budget Car Rental, LLC 7.63 5/15/2014 1,810
1,983 Hertz Corp. (c) 5.26 12/21/2012 1,852
2,000 Hertz Corp. 8.88 1/01/2014 2,030
---------
5,692
---------
Total Industrials 65,400
---------
INFORMATION TECHNOLOGY (1.7%)
-----------------------------
DATA PROCESSING & OUTSOURCED SERVICES (1.7%)
10,000 First Data Corp. 9.88 9/24/2015 9,225
1,000 Iron Mountain, Inc. 7.75 1/15/2015 1,017
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 8
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 7,000 SunGard Data Systems, Inc. 10.25% 8/15/2015 $ 7,245
---------
17,487
---------
Total Information Technology 17,487
---------
MATERIALS (2.6%)
----------------
COMMODITY CHEMICALS (0.3%)
2,000 Arco Chemical Co. (e) 9.80 2/01/2020 1,380
201 Hexion Specialty Chemicals, Inc. (c) 2.56 5/05/2013 161
794 Hexion Specialty Chemicals, Inc. (c) 2.56 5/05/2013 636
1,000 Hexion U.S. Financial Corp. 9.75 11/15/2014 855
---------
3,032
---------
CONSTRUCTION MATERIALS (0.1%)
500 Headwaters, Inc. (f) 11.38 11/01/2014 503
1,000 Panolam Industries International, Inc.
(e) 10.75 10/01/2013 320
---------
823
---------
DIVERSIFIED CHEMICALS (0.2%)
2,500 Huntsman International, LLC 7.38 1/01/2015 2,313
---------
METAL & GLASS CONTAINERS (0.5%)
2,000 Berry Plastics Escrow, LLC (d),(f) 8.88 9/15/2014 1,980
1,000 Crown Americas, LLC 7.75 11/15/2015 1,030
2,000 Graham Packaging Co., LP 8.50 10/15/2012 2,025
500 Pliant Corp. (e) 11.13 9/01/2009 13
---------
5,048
---------
PAPER PACKAGING (0.5%)
250 Graphic Packaging Corp. 8.63 2/15/2012 251
3,000 Graphic Packaging International, Inc. 9.50 8/15/2013 3,075
2,000 Jefferson Smurfit Corp. (e) 8.25 10/01/2012 1,570
---------
4,896
---------
PAPER PRODUCTS (0.2%)
597 Boise Cascade, LLC 7.13 10/15/2014 498
1,100 Georgia Pacific, LLC (f) 8.25 5/01/2016 1,169
1,000 NewPage Corp. 10.00 5/01/2012 645
---------
2,312
---------
SPECIALTY CHEMICALS (0.3%)
2,000 Momentive Performance Materials, Inc. 9.75 12/01/2014 1,700
1,000 Nalco Co. 8.88 11/15/2013 1,035
1,000 Tronox Worldwide, LLC (e),(f) 9.50 12/01/2012 637
---------
3,372
---------
STEEL (0.5%)
1,500 AK Steel Holding Corp. 7.75 6/15/2012 1,500
2,000 Allegheny Technologies, Inc. 9.38 6/01/2019 2,279
1,250 Metals USA, Inc. 11.13 12/01/2015 1,209
---------
4,988
---------
Total Materials 26,784
---------
MUNICIPAL BONDS (0.5%)
----------------------
BUILDINGS (0.4%)
4,030 Mobile Services Group, Inc. 9.75 8/01/2014 4,171
---------
MISCELLANEOUS (0.1%)
600 Mac-Gray Corp. 7.63 8/15/2015 596
---------
Total Municipal Bonds 4,767
---------
---------------------------------------------------------------------------------------------------
9 | USAA High-Yield Opportunities Fund
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES (5.3%)
---------------------------------
ALTERNATIVE CARRIERS (0.4%)
$ 1,500 Global Crossing Ltd. (f) 12.00% 9/15/2015 $ 1,616
1,000 Level 3 Communications, Inc. (c) 9.52 3/13/2014 1,067
1,000 Level 3 Financing, Inc. 12.25 3/15/2013 1,053
---------
3,736
---------
INTEGRATED TELECOMMUNICATION SERVICES (3.1%)
3,000 Cincinnati Bell, Inc. 8.25 10/15/2017 2,985
2,000 Citizens Communications Co. 7.88 1/15/2027 1,835
1,000 Frontier Communications Corp. 8.25 5/01/2014 1,029
3,000 GCI, Inc. 8.63 11/15/2019 3,008
2,032 Hawaiian Telcom Communications, Inc. (c) 6.26 6/01/2014 1,502
2,000 Hawaiian Telcom Communications, Inc. (e) 12.50 5/01/2015 --
12,000 Qwest Communications International, Inc. 7.50 2/15/2014 11,790
5,000 Qwest Communications International, Inc. 7.50 2/15/2014 4,937
1,000 Windstream Corp. 8.13 8/01/2013 1,041
4,000 Windstream Corp. (f) 7.88 11/01/2017 4,060
---------
32,187
---------
WIRELESS TELECOMMUNICATION SERVICES (1.8%)
1,000 Crown Castle International Corp. 9.00 1/15/2015 1,058
1,980 MetroPCS Communications, Inc. (c) 2.75 2/20/2014 1,859
1,000 MetroPCS Communications, Inc. 9.25 11/01/2014 1,005
3,000 Nextel Communications, Inc. 6.88 10/31/2013 2,782
4,000 Nextel Communications, Inc. 5.95 3/15/2014 3,490
6,000 Sprint Capital Corp. 8.38 3/15/2012 6,120
2,000 Sprint Nextel Corp. 8.38 8/15/2017 1,940
---------
18,254
---------
Total Telecommunication Services 54,177
---------
UTILITIES (7.0%)
----------------
ELECTRIC UTILITIES (2.6%)
672 FPL Energy National Wind Portfolio, LLC
(f) 6.13 3/25/2019 620
529 FPL Energy Wind Funding, LLC (f) 6.88 6/27/2017 493
2,000 FPL Group Capital, Inc. 7.30 9/01/2067 1,978
6,679 Homer City Funding, LLC 8.73 10/01/2026 6,345
4,000 PPL Capital Funding, Inc. 6.70 3/30/2067 3,445
1,000 Public Service Co. of New Mexico 7.95 5/15/2018 1,024
3,000 Reliant Energy, Inc. 7.63 6/15/2014 2,955
2,000 Reliant Energy, Inc. 7.88 6/15/2017 1,950
697 Sierra Pacific Resources 8.63 3/15/2014 720
1,960 Texas Competitive Electric Holding Co.,
LLC (c) 3.74 10/10/2014 1,522
980 Texas Competitive Electric Holding Co.,
LLC (c) 3.74 10/10/2014 755
7,000 Texas Competitive Electric Holding Co.,
LLC 10.25 11/01/2015 5,023
---------
26,830
---------
GAS UTILITIES (1.2%)
3,000 El Paso Energy Corp. 7.75 1/15/2032 2,813
500 Southern Star Central Corp. 6.75 3/01/2016 481
11,000 Southern Union Co. 7.20 (a) 11/01/2066 9,075
---------
12,369
---------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.9%)
2,000 AES Corp. 7.75 3/01/2014 2,025
3,000 AES Corp. 8.00 6/01/2020 3,015
2,000 Dynegy Holdings, Inc. 8.38 5/01/2016 1,870
1,000 Mirant Americas Generation, Inc. 8.30 5/01/2011 1,024
1,000 NRG Energy, Inc. 7.38 1/15/2017 997
---------
8,931
---------
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 10
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
MULTI-UTILITIES (2.3%)
$ 2,000 Calpine Construction Finance Co., LP (f) 8.00% 6/01/2016 $ 2,050
1,500 CMS Energy Corp. 8.75 6/15/2019 1,650
4,990 Integrys Energy Group, Inc. 6.11 12/01/2066 3,997
3,000 PNM Resources, Inc. 9.25 5/15/2015 3,113
13,000 Puget Sound Energy, Inc. 6.97 6/01/2067 11,410
1,229 Tenaska Oklahoma, LP (f) 6.53 12/30/2014 1,206
---------
23,426
---------
Total Utilities 71,556
---------
Total Corporate Obligations (cost: $713,880) 732,349
---------
EURODOLLAR AND YANKEE OBLIGATIONS (8.6%)
CONSUMER DISCRETIONARY (1.0%)
-----------------------------
BROADCASTING (0.5%)
5,000 NTL Cable plc 8.75 4/15/2014 5,106
500 UPC Holding B.V. (f) 9.88 4/15/2018 524
---------
5,630
---------
HOTELS, RESORTS, & CRUISE LINES (0.2%)
2,000 Royal Caribbean Cruises Ltd. 7.25 6/15/2016 1,870
---------
PUBLISHING (0.3%)
2,000 Nielsen Finance LLC and Nielsen Finance
Co. 11.63 2/01/2014 2,155
500 Nielsen Finance, LLC 11.50 5/01/2016 537
---------
2,692
---------
Total Consumer Discretionary 10,192
---------
ENERGY (0.4%)
-------------
OIL & GAS DRILLING (0.2%)
432 Delek & Avner-Yam Tethys Ltd. (f) 5.33 8/01/2013 435
2,000 Gibson Energy ULC (f) 11.75 5/27/2014 2,115
---------
2,550
---------
OIL & GAS EQUIPMENT & SERVICES (0.1%)
750 TRICO Marine Services, Inc. (f) 11.88 11/01/2014 769
---------
OIL & GAS EXPLORATION & PRODUCTION (0.1%)
1,000 Compton Petroleum Finance Corp. 7.63 12/01/2013 745
---------
Total Energy 4,064
---------
FINANCIALS (3.7%)
-----------------
DIVERSIFIED BANKS (0.8%)
786 Groupe BPCE 10.00 -(i) 924
1,415 MUFG Capital Finance 1 Ltd. 6.35 -(i) 1,309
1,500 Natixis (f) 10.00 -(i) 1,375
4,000 Royal Bank of Scotland Group plc 7.64 -(i) 1,962
2,000 Standard Chartered plc (f) 6.41 -(i) 1,582
1,000 Sumitomo Mitsui Financial Group (f) 6.08 -(i) 869
---------
8,021
---------
DIVERSIFIED CAPITAL MARKETS (0.4%)
4,000 UBS Preferred Funding Trust II 7.25 -(i) 3,606
1,000 UBS Preferred Funding Trust V 6.24 -(i) 792
---------
4,398
---------
MULTI-LINE INSURANCE (0.2%)
2,000 AXA S.A. (f) 6.46 -(i) 1,678
---------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.4%)
2,210 ZFS Finance USA Trust I (f) 6.15 12/15/2065 1,989
---------------------------------------------------------------------------------------------------
11 | USAA High-Yield Opportunities Fund
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 2,000 ZFS Finance USA Trust II (f) 6.45% 12/15/2065 $ 1,820
---------
3,809
---------
PROPERTY & CASUALTY INSURANCE (0.3%)
1,000 Allied World Assurance Holdings Ltd. 7.50 8/01/2016 1,044
3,000 Catlin Insurance Co. Ltd. (f) 7.25 -(i) 2,325
---------
3,369
---------
REGIONAL BANKS (0.3%)
3,000 Credit Agricole S.A. (f) 6.64 -(i) 2,415
2,000 Glitnir Banki hf, acquired 1/25/2008;
cost $1,830(e),(f),(k) 4.75 10/15/2010 462
1,000 Kaupthing Bank hf (e),(f) 5.75 10/04/2011 230
---------
3,107
---------
REINSURANCE (1.3%)
5,000 Max USA Holdings Ltd. (f),(h) 7.20 4/14/2017 4,162
2,000 Platinum Underwriters Finance, Inc. 7.50 6/01/2017 1,922
9,000 PXRE Capital Trust I 8.85 2/01/2027 7,425
---------
13,509
---------
Total Financials 37,891
---------
INDUSTRIALS (0.9%)
------------------
MARINE (0.3%)
2,000 Navios Maritime Holdings, Inc. 9.50 12/15/2014 1,979
500 Navios Maritime Holdings, Inc. (d),(f) 8.88 11/01/2017 520
1,000 Stena AB 7.00 12/01/2016 835
---------
3,334
---------
RAILROADS (0.6%)
6,000 Kansas City Southern de Mexico, S.A. de
C.V. (h) 9.38 5/01/2012 6,150
---------
Total Industrials 9,484
---------
INFORMATION TECHNOLOGY (1.0%)
-----------------------------
COMMUNICATIONS EQUIPMENT (0.8%)
5,000 Intelsat Bermuda Ltd. 11.25 6/15/2016 5,375
3,000 Intelsat Jackson Holdings, Ltd. (c) 3.25 2/01/2014 2,691
---------
8,066
---------
SEMICONDUCTORS (0.2%)
1,378 Freescale Semiconductor, Inc. (c) 5.87 12/15/2014 1,414
1,750 New Asat Finance Ltd. (e) 9.25 2/01/2011 11
320 NXP B.V./ NXP Funding LLC 10.00 7/15/2013 312
---------
1,737
---------
Total Information Technology 9,803
---------
MATERIALS (1.6%)
----------------
ALUMINUM (0.3%)
2,500 Novelis, Inc. 7.25 2/15/2015 2,250
500 Novelis, Inc. 11.50 2/15/2015 524
---------
2,774
---------
COMMODITY CHEMICALS (0.1%)
1,000 Nova Chemicals Corp. 8.38 11/01/2016 1,016
---------
DIVERSIFIED CHEMICALS (0.2%)
3,000 INEOS Group Holdings plc (f) 8.50 2/15/2016 1,665
---------
DIVERSIFIED METALS & MINING (0.3%)
1,000 Glencore Funding, LLC (f) 6.00 4/15/2014 982
1,000 Teck Resources Ltd. 9.75 5/15/2014 1,130
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 12
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 1,000 Teck Resources Ltd. 10.75% 5/15/2019 $ 1,175
---------
3,287
---------
FOREST PRODUCTS (0.0%)
667 Ainsworth Lumber Co. Ltd. (f) 11.00 7/29/2015 414
---------
PAPER PACKAGING (0.2%)
3,000 JSG Funding plc 7.75 4/01/2015 2,685
---------
PAPER PRODUCTS (0.4%)
3,000 Abitibi-Consolidated Co. of Canada (e) 6.00 6/20/2013 435
2,098 Cascades, Inc. 7.25 2/15/2013 2,061
1,000 Domtar Corp. 5.38 12/01/2013 955
500 PE Paper Escrow GmbH (f) 12.00 8/01/2014 544
---------
3,995
---------
SPECIALTY CHEMICALS (0.1%)
3,000 LyondellBasell Industries (e),(f) 8.38 8/15/2015 675
---------
Total Materials 16,511
---------
Total Eurodollar and Yankee Obligations (cost: $95,825) 87,945
---------
ASSET-BACKED SECURITIES (5.3%)
FINANCIALS (4.3%)
-----------------
ASSET-BACKED FINANCING (4.3%)
3,000 AESOP Funding II, LLC (f) 0.47 (a) 3/20/2012 2,852
1,000 AESOP Funding II, LLC (f) 9.31 10/20/2013 1,103
170 Airport Airplanes 0.62 (a) 3/15/2019 160
5,000 AmeriCredit Automobile Receivables Trust 6.96 (a) 10/14/2014 5,274
2,000 Banc of America Securities Auto Trust 5.51 2/19/2013 2,001
3,000 Bank of America Credit Card Trust 0.54 (a) 6/15/2014 2,793
3,000 Bank One Issuance Trust 4.77 2/16/2016 3,003
3,000 Bank One Issuance Trust 1.05 (a) 2/15/2017 2,755
2,020 Capital One Multi-Asset Execution Trust 0.55 (a) 6/16/2014 1,867
4,000 Citibank Credit Card Issuance Trust 6.30 6/20/2014 4,136
5,000 CPS Auto Receivables Trust (INS) 6.48 7/15/2013 5,059
225 Credit Acceptance Auto Dealer Loan Trust 6.16 4/15/2013 225
2,236 GE Equipment Midticket, LLC 0.57 (a) 9/15/2017 1,758
1,000 Hertz Vehicle Financing, LLC (f) 5.08 11/25/2011 1,022
1,000 Hertz Vehicle Financing, LLC (f) 5.08 11/25/2011 1,022
5,000 Rental Car Finance Corp. (f) 0.38 (a) 7/25/2013 4,298
1,525 USXL Funding, LLC (INS)(f) 5.38 4/15/2014 1,526
3,040 WFS Financial Owner Trust 4.76 5/17/2013 3,070
---------
Total Financials 43,924
---------
INDUSTRIALS (1.0%)
------------------
AIRLINES (1.0%)
4,652 United Airlines, Inc. Pass-Through Trust
(h) 8.03 7/01/2011 5,978
4,352 United Airlines, Inc. Pass-Through Trust 7.78 1/01/2014 4,327
---------
Total Industrials 10,305
---------
Total Asset-Backed Securities (cost: $48,861) 54,229
---------
COMMERCIAL MORTGAGE SECURITIES (2.3%)
FINANCIALS (2.3%)
-----------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (2.3%)
2,000 Banc of America Commercial Mortgage,
Inc. 5.81 7/10/2044 1,538
1,443 Banc of America Commercial Mortgage, Inc.
(f) 5.46 9/10/2047 1,144
---------------------------------------------------------------------------------------------------
13 | USAA High-Yield Opportunities Fund
|
---------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
---------------------------------------------------------------------------------------------------
$ 3,847 Banc of America Commercial Mortgage, Inc.
(f) 6.14%(a) 9/10/2047 $ 2,687
1,620 Citigroup Commercial Mortgage Trust 4.83 5/15/2043 1,416
2,000 Citigroup Commercial Mortgage Trust 6.10 12/10/2049 1,523
1,000 Commercial Mortgage Loan Trust 6.22 (a) 12/10/2049 720
5,000 GE Capital Commercial Mortgage Corp. 5.61 12/10/2049 3,183
2,000 GMAC Commercial Mortgage Securities,
Inc. 4.75 5/10/2043 1,746
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.81 6/12/2043 1,928
1,700 LB-UBS Commercial Mortgage Trust 5.46 2/15/2040 1,119
6,400 Merrill Lynch Mortgage Trust 5.14 7/12/2038 4,478
2,000 Merrill Lynch Mortgage Trust 4.92 10/12/2041 1,546
---------
23,028
---------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (0.0%)
1,651 Credit Suisse First Boston Corp.,
acquired 6/13/2003; cost $80(k) 0.97 (a) 5/17/2040 80
---------
Total Financials 23,108
---------
Total Commercial Mortgage Securities (cost: $21,011) 23,108
---------
MUNICIPAL BONDS (0.5%)
CASINOS & GAMING (0.4%)
2,000 Mashantucket (Western) Pequot Tribe,
acquired 10/05/2009; cost
$1,410(f),(k) 5.91 9/01/2021 1,215
3,630 Seneca Nation of Indians Capital
Improvements Auth. 6.75 12/01/2013 3,395
---------
Total Casinos & Gaming 4,610
---------
SPECIAL ASSESSMENT/TAX/FEE (0.1%)
710 Erie County Tobacco Asset Securitization
Corp. 6.00 6/01/2028 549
---------
Total Municipal Bonds (cost: $5,729) 5,159
---------
NUMBER
OF SHARES
---------------------------------------------------------------------------------------------------
EQUITY SECURITIES (9.3%)
COMMON STOCKS (0.8%)
CONSUMER DISCRETIONARY (0.1%)
-----------------------------
BROADCASTING (0.0%)
30,000 Sinclair Broadcast Group, Inc. "A" 118
---------
CABLE & SATELLITE (0.1%)
50,000 Comcast Corp. "A" 725
6,666 Time Warner Cable, Inc. 263
---------
988
---------
PUBLISHING (0.0%)
32,656 American Media, Inc. , acquired 2/02/2009; cost $723*(j),(k) --
---------
Total Consumer Discretionary 1,106
---------
CONSUMER STAPLES (0.0%)
-----------------------
PACKAGED FOODS & MEAT (0.0%)
20,000 Reddy Ice Holdings, Inc. * 79
---------
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 14
|
---------------------------------------------------------------------------------------------------
NUMBER MARKET
OF VALUE
SHARES SECURITY (000)
---------------------------------------------------------------------------------------------------
ENERGY (0.2%)
-------------
OIL & GAS EXPLORATION & PRODUCTION (0.2%)
169,107 Energy Partners Ltd. * $ 1,456
---------
OIL & GAS REFINING & MARKETING (0.0%)
15,000 Valero Energy Corp. 271
---------
Total Energy 1,727
---------
FINANCIALS (0.1%)
-----------------
MULTI-LINE INSURANCE (0.0%)
750 American International Group, Inc. * 25
---------
REGIONAL BANKS (0.0%)
5,000 City National Corp. 188
---------
REITS - OFFICE (0.0%)
10,000 Maguire Properties, Inc. * 18
---------
REITS - SPECIALIZED (0.1%)
10,000 Entertainment Properties Trust 340
10,000 Strategic Hotel Capital, Inc. * 18
10,951 Sunstone Hotel Investors, Inc. * 83
---------
441
---------
Total Financials 672
---------
HEALTH CARE (0.1%)
------------------
HEALTH CARE FACILITIES (0.0%)
20,000 Community Health Systems, Inc. * 626
---------
PHARMACEUTICALS (0.1%)
10,000 Merck & Co., Inc. 309
30,000 Pfizer, Inc. 511
---------
820
---------
Total Health Care 1,446
---------
INDUSTRIALS (0.1%)
------------------
BUILDING PRODUCTS (0.0%)
20,000 Masco Corp. 235
---------
COMMERCIAL PRINTING (0.1%)
39,632 World Color Press, Inc. * 375
---------
Total Industrials 610
---------
MATERIALS (0.1%)
----------------
FOREST PRODUCTS (0.1%)
195,497 Ainsworth Lumber Co. Ltd. * 318
---------
STEEL (0.0%)
20,000 Worthington Industries, Inc. 221
---------
Total Materials 539
---------
TELECOMMUNICATION SERVICES (0.1%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (0.1%)
70,000 Frontier Communications Corp. 502
30,000 Iowa Telecommunication Services, Inc. 353
60,000 Windstream Corp. 578
---------
Total Telecommunication Services 1,433
---------
---------------------------------------------------------------------------------------------------
15 | USAA High-Yield Opportunities Fund
|
---------------------------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES SECURITY (000)
---------------------------------------------------------------------------------------------------
UTILITIES (0.0%)
----------------
ELECTRIC UTILITIES (0.0%)
10,000 Progress Energy, Inc. $ 375
---------
Total Common Stocks (cost: $18,530) 7,987
---------
PRINCIPAL
AMOUNT
$(000)/
SHARES
---------------------------------------------------------------------------------------------------
PREFERRED SECURITIES (1.7%)
CONSUMER STAPLES (0.5%)
-----------------------
AGRICULTURAL PRODUCTS (0.5%)
75,000 Dairy Farmers of America, Inc., 7.88%, cumulative redeemable, perpetual
(f) 5,311
---------
FINANCIALS (0.8%)
-----------------
LIFE & HEALTH INSURANCE (0.2%)
120,000 Delphi Financial Group, Inc., 7.38%, perpetual 2,089
---------
PROPERTY & CASUALTY INSURANCE (0.1%)
$2,000 White Mountains Re Group, 7.51%, perpetual (f) 1,657
---------
REINSURANCE (0.2%)
3,000 Ram Holdings Ltd., 7.50%, non-cumulative, perpetual * 150
$2,000 Swiss Re Capital I LP, 6.85%, perpetual (f) 1,542
---------
1,692
---------
REITS - OFFICE (0.1%)
20,000 Maguire Properties, Inc., Series A, 7.63% cumulative redeemable,
perpetual 160
20,000 Parkway Properties, Inc., Series D, 8.00%, cumulative redeemable,
perpetual 451
---------
611
---------
REITS - RETAIL (0.0%)
20,000 Tanger Factory Outlet Centers, Inc., Class C, 7.50%, perpetual 471
---------
REITS - SPECIALIZED (0.1%)
70,000 Felcor Lodging Trust, Inc., Series C, 8.00%, perpetual 859
20,000 Sunstone Hotel Investors, Inc., Series A, 8.00%, perpetual 400
---------
1,259
---------
THRIFTS & MORTGAGE FINANCE (0.1%)
40,000 Sovereign Capital Trust V, 7.75%, Capital Securities, perpetual 959
---------
Total Financials 8,738
---------
GOVERNMENT (0.0%)
-----------------
15,000 Fannie Mae, 8.25%, perpetual 18
---------
TELECOMMUNICATION SERVICES (0.4%)
---------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.4%)
2,000 Centaur Funding Corp., 9.08% (f) 2,012
30,000 Crown Castle International Corp., 6.25%, cumulative redeemable, perpetual
(b) 1,627
---------
Total Telecommunication Services 3,639
---------
Total Preferred Securities (cost: $24,779) 17,706
---------
---------------------------------------------------------------------------------------------------
Portfolio of Investments | 16
|
---------------------------------------------------------------------------------------------------
MARKET
NUMBER VALUE
OF SHARES SECURITY (000)
---------------------------------------------------------------------------------------------------
EXCHANGE-TRADED FUNDS (6.8%)
449,118 iShares iBoxx High Yield Corporate Bond Fund $ 38,256
816,944 SPDR Barclay Capital High Yield Bond Fund 31,036
---------
Total Exchange-Traded Funds (cost: $63,764) 69,292
---------
WARRANTS (0.0%)
CONSUMER DISCRETIONARY (0.0%)
-----------------------------
BROADCASTING (0.0%)
250 Ono Finance plc , acquired 7/16/2001; cost $0*(f),(j),(k) --
---------
INDUSTRIALS (0.0%)
------------------
COMMERCIAL PRINTING (0.0%)
22,461 World Color Press, Inc. * 73
22,461 World Color Press, Inc. * 46
---------
Total Industrials 119
---------
INFORMATION TECHNOLOGY (0.0%)
-----------------------------
SEMICONDUCTORS (0.0%)
1 New Asat Finance Ltd., acquired 12/03/2007; cost $0*(f),(j),(k) --
---------
Total Warrants (cost: $492) 119
---------
Total Equity
Securities
(cost: $107,565) 95,104
---------
PRINCIPAL
AMOUNT COUPON
(000) RATE MATURITY
---------------------------------------------------------------------------------------------------
MONEY MARKET INSTRUMENTS (1.4%)
COMMERCIAL PAPER (0.5%)
CONSUMER STAPLES (0.5%)
-----------------------
PACKAGED FOODS & MEAT (0.5%)
$ 5,000 Kraft Foods, Inc. 0.33% 11/18/2009 4,999
---------
NUMBER OF
SHARES
---------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS (0.9%)
9,525,591 State Street Institutional Liquid
Reserve Fund, 0.25% (l) 9,526
---------
Total Money Market Instruments
(cost: $14,525) 14,525
---------
TOTAL INVESTMENTS (COST: $1,007,396) $ 1,012,419
=========
---------------------------------------------------------------------------------------------------
17 | USAA High-Yield Opportunities 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 $ -- $ 732,349 $ -- $ 732,349
EURODOLLAR AND YANKEE OBLIGATIONS -- 87,945 -- 87,945
ASSET-BACKED SECURITIES -- 54,229 -- 54,229
COMMERCIAL MORTGAGE SECURITIES -- 23,108 -- 23,108
MUNICIPAL BONDS -- 5,159 -- 5,159
EQUITY SECURITIES:
COMMON STOCKS 7,987 -- -- 7,987
PREFERRED SECURITIES -- 17,706 -- 17,706
EXCHANGE-TRADED FUNDS 69,292 -- -- 69,292
WARRANTS 119 -- -- 119
MONEY MARKET INSTRUMENTS:
COMMERCIAL PAPER -- 4,999 -- 4,999
MONEY MARKET FUNDS 9,526 -- -- 9,526
---------------------------------------------------------------------------------------------------------
TOTAL $ 86,924 $ 925,495 $ -- $ 1,012,419
---------------------------------------------------------------------------------------------------------
Reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining value:
CORPORATE ASSET-BACKED
OBLIGATIONS SECURITIES
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Balance as of July 31, 2009 $ 2,582 $ 1,007
Net realized gain (loss) - -
Change in net unrealized appreciation/depreciation 1,385 96
Net purchases (sales) - -
Transfers in and/or out of Level 3 (3,967) (1,103)
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Balance as of October 31, 2009 $ - $ -
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Portfolio of Investments | 18
|
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
High-Yield Opportunities Fund (the Fund), which is classified as diversified
under the 1940 Act.
The Fund has two classes of shares: High-Yield Opportunities Fund Shares and
High-Yield Opportunities 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. Equity securities, including exchange-traded funds (ETFs), except as
otherwise noted, traded primarily on a domestic securities exchange or the
Nasdaq over-the-counter markets are valued at the last sales price or official
closing price on the exchange or primary market on which they trade. Equity
securities traded primarily on foreign securities exchanges or markets are
valued at the last quoted sales price, or the most recently determined official
closing price calculated according to local market convention, available at the
time the Fund is valued. If no last sale or official closing price is reported
or available, the average of the bid and asked prices generally is used.
19 | USAA High-Yield Opportunities Fund
3. 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.
4. Debt securities purchased with original or remaining maturities of 60 days or
less may be valued at amortized cost, which approximates market value.
5. Repurchase agreements are valued at cost, which approximates market value.
6. 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. REPURCHASE AGREEMENTS - The Fund may enter into repurchase agreements with
commercial banks or recognized security dealers. These agreements are
collateralized by underlying securities. The collateral obligations are
marked-to-market daily to ensure their value is equal to or in excess of the
repurchase agreement price plus accrued interest and are held by the Fund,
either through its
Notes to Portfolio of Investments | 20
regular custodian or through a special "tri-party" custodian that maintains
separate accounts for both the Fund and its counterparty, until maturity of the
repurchase agreement. Repurchase agreements are subject to credit risk, and the
Fund's Manager monitors the creditworthiness of sellers with which the Fund
may enter into repurchase agreements.
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 or for delayed draws on loans 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 receives a commitment fee for delayed draws on loans. 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 and delayed-draw loan commitments may increase the volatility
of the Fund's NAV to the extent that the Fund makes such purchases and
commitments while remaining substantially fully invested.
E. LENDING OF PORTFOLIO SECURITIES - The Fund, through its third-party
securities-lending agent, Wachovia Global Securities Lending, may lend its
securities to qualified financial institutions, such as certain broker-dealers,
to earn additional income. The borrowers are required to secure their loans
continuously with cash collateral in an amount at least equal to the fair value
of the securities loaned, initially in an amount at least equal to 102% of the
fair value of domestic securities loaned and 105% of the fair value of
international securities loaned. Cash collateral is invested in high-quality
short-term investments. Cash collateral requirements are determined daily based
on the prior business day's ending value of securities loaned. Imbalances in
cash collateral may occur on days where market volatility causes security prices
to change significantly, and are adjusted the next business day. Risks to the
Fund in securities-lending transactions are that the borrower may not provide
additional collateral when required or return the securities when due, and that
the value of the short-term investments will be less than the amount of cash
collateral required to be returned to the borrower. As of October 31, the Fund
had no securities out on loan.
F. 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.
G. 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 $93,635,000 and $88,612,000, respectively, resulting in
net unrealized appreciation of $5,023,000.
H. The portfolio of investments category percentages shown represent the
percentages of the investments to net assets, which were $1,024,153,000 at
October 31, 2009, and, in total, may not equal 100%. Investments in foreign
securities were 9.2% on net assets at October 31, 2009. A category percentage of
0.0% represents less than 0.1% of net assets.
21 | USAA High-Yield Opportunities Fund
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 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.
WARRANTS - entitle the holder to buy a proportionate amount of common stock at a
specified price for a stated period.
PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS
iShares Exchange-traded funds, managed by Barclays Global Fund Advisors,
that represent a portfolio of stocks designed to closely track a
specific market index. iShares funds are traded on securities
exchanges.
REIT Real estate investment trust
SPDR Exchange-traded funds, managed by State Street Global Advisers,
that represent a portfolio of stocks designed to closely track a
specific market index. SPDR is an acronym for the first member of
the fund family, Standard & Poor's Depositary Receipt, which
tracks the S&P 500 Index. SPDRs are traded on securities
exchanges.
|
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.
Notes to Portfolio of Investments | 22
(INS) Principal and interest payments are insured by Financial Security
Assurance Holdings Ltd. or Financial Guaranty Insurance Co.
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.
|
SPECIFIC NOTES
(a) Variable-rate or floating-rate security - interest rate is adjusted
periodically. The interest rate disclosed represents the current rate at
October 31, 2009.
(b) Pay-in-kind (PIK) - security in which the issuer has the option to make
interest or dividend payments in cash or in additional securities. The
security issued with the interest or dividend payment option usually has
the same terms, including maturity date, as the PIK securities.
(c) Senior loan (loan) - is not registered under the Securities Act of 1933.
The loan contains certain restrictions on resale and cannot be sold
publicly. The interest rate is adjusted periodically, and the rate
disclosed represents the current rate at October 31, 2009. The weighted
average life of the loan is likely to be substantially shorter than the
stated final maturity date due to mandatory or optional prepayments.
Security deemed liquid by the Manager, under liquidity guidelines
approved by the Trust's Board of Trustees, unless otherwise noted as
illiquid.
(d) At October 31, 2009, the aggregate market value of securities purchased
on a delayed-delivery basis was $4,446,000 which included when-issued
securities of $519,000.
(e) Currently the issuer is in default with respect to interest and/or
principal payments.
(f) 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.
(g) Security is currently trading without accrued interest.
(h) At October 31, 2009, portions of these securities were segregated to
cover delayed-delivery and/or when-issued purchases.
(i) Security is perpetual and has no final maturity date but may be subject
to calls at various dates in the future.
(j) Security was fair valued at October 31, 2009, by the Manager in
accordance with valuation procedures approved by the Trust's Board of
Trustees.
(k) 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 $1,757,000, which represented
0.2% of the Fund's net assets.
(l) Rate represents the money market fund annualized seven-day yield at
October 31, 2009.
(m) Represents less than 0.01%.
* Non-income-producing security.
23 | USAA High-Yield Opportunities 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
-------------------------------
|
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
------------------------------
|
*PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.
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