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:   MARCH 31

Date of Reporting Period:  DECEMBER 31, 2009



ITEM 1.  SCHEDULE OF INVESTMENTS.
USAA FLORIDA TAX-FREE INCOME FUND - 3RD QUARTER REPORT - PERIOD ENDED DECEMBER 31, 2009

 
 



[graphic of USAA logo]








PORTFOLIO OF INVESTMENTS
3 RD QUARTER
USAA FLORIDA TAX-FREE INCOME FUND
DECEMBER 31, 2009
  
 

 (Form N-Q)

48468-0210 (c)2010, USAA. All rights reserved.


  

 
  

 

 
  


PORTFOLIO OF INVESTMENTS
 
 
December 31, 2009 (unaudited)


 

 

 

 
CATEGORIES AND DEFINITIONS


Fixed-rate instruments - consist of municipal bonds, notes, and commercial paper. The interest rate is constant to maturity. Prior to maturity, the market price of a fixed-rate instrument 

generally varies inversely to the movement of interest rates.

 
Put bonds - provide the right to sell the bond at face value at specific tender dates prior to final maturity. The put feature shortens the effective maturity of the security.

 

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.

 

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., Assured Guaranty Corp., Assured Guaranty Municipal Corp., Financial Guaranty Insurance Co., National Public Finance Guarantee Corp., or Radian Asset Assurance, Inc.  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.

 		
 
(LIQ)

 
Liquidity enhancement that may, under certain circumstances, provide for repayment of principal and interest upon demand from SunTrust Bank.

 		
 
(LOC)

 
Principal and interest payments are guaranteed by a bank letter of credit or other bank credit agreement.

 		
 
(NBGA)

 
Principal and interest payments or, under certain circumstances, underlying mortgages are guaranteed by a nonbank guarantee agreement from Florida General Obligation.

 		
 

 

 

 

PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS

 



EDA

 
Economic Development Authority

 		
 
IDA

 
Industrial Development Authority/Agency

 		
 
PRE

 
Prerefunded to a date prior to maturity

 		
 

 

 

 

1 |  USAA Florida Tax-Free Income Fund
 
 

 
PORTFOLIO OF INVESTMENTS


USAA Florida Tax-Free Income Fund
December 31, 2009 (unaudited)


Principal
Amount
(000)
 
Security
       Coupon Rate
Final
Maturity
 
                                                                                                Market
                                                                                                   Value
                                                                                                    (000)
     
   
 
FIXED-RATE INSTRUMENTS (95.8%)
     
 
Florida (80.7%)
     
  $ 6,000  
Bay County Water Systems (INS) (PRE)
    5.70  
%
9/01/2025
      $ 6,278        
    5,500  
Board of Education (NBGA)
    5.75    
6/01/2022
        5,657        
    2,000  
Brevard County Health Facilities Auth.  
    7.00    
4/01/2039
        2,177        
    1,500  
Broward County  
    5.25    
10/01/2034
        1,554        
    610  
Broward County Educational Facilities Auth. (INS)
    5.75    
4/01/2020
        614        
    645  
Broward County Educational Facilities Auth. (INS)
    5.75    
4/01/2021
        648        
    2,500  
Broward County Educational Facilities Auth. (INS)
    5.75    
4/01/2021
        2,534        
    350  
Broward County School Board (INS)
    5.25    
7/01/2027
        371        
    2,000  
Clearwater  
    5.25    
12/01/2039
        2,062        
    5,675  
Department of Children and Family Services  
    5.00    
10/01/2025
        5,800        
    1,500  
Escambia County  
    6.25    
11/01/2033
        1,512        
    4,000  
Hialeah Gardens Health Care Facilities Auth. (LIQ)
    5.00    
8/15/2037
        3,664        
    3,500  
Highlands County Health Facilities Auth.  
    5.00    
11/15/2031
        3,313        
    4,880  
Highlands County Health Facilities Auth.  
    5.25    
11/15/2036
        4,709        
    120  
Highlands County Health Facilities Auth.  (PRE)
    5.25    
11/15/2036
        142        
    625  
Hillsborough County (INS)
    5.13    
3/01/2020
        636        
    4,000  
Hillsborough County IDA  
    5.50    
10/01/2023
        4,046        
    5,750  
Jacksonville Economic Dev. Commission  
    5.00    
11/15/2036
        5,778        
    2,470  
Jacksonville Health Facilities Auth.  
    5.25    
11/15/2032
        2,511        
    4,000  
Lake County School Board (INS)
    5.00    
7/01/2029
        4,019        
    1,500  
Miami (INS)
    5.00    
10/01/2034
        1,506        
    4,400  
Miami-Dade County (INS)
    5.75    
10/01/2024
        4,489        
    3,000  
Miami-Dade County Expressway Auth. (INS) (PRE)
    6.00    
7/01/2020
        3,114        
    3,000  
Miami-Dade County School Board (INS)
    5.25    
2/01/2027
        3,171        
    8,000  
Orange County Health Facilities Auth.  (PRE)
    5.75    
12/01/2027
        9,092        
    6,255  
Orange County Health Facilities Auth.  
    5.13    
11/15/2039
        5,930        
    3,000  
Orange County School Board (INS)
    5.00    
8/01/2032
        3,049        
    2,000  
Orange County School Board (INS)
    5.50    
8/01/2034
        2,091        
    7,875  
Palm Beach County School Board  (PRE)
    5.88    
8/01/2021
        8,210        
    5,000  
Pinellas County Health Facilities Auth.  (PRE)
    5.50    
11/15/2027
        5,714        
    4,000  
Polk County Utility Systems (INS)
    5.00    
10/01/2030
        4,047        
    4,000  
Port St. Lucie Utility System (INS)
    4.64  
 (a)
9/01/2032
        1,084        
    4,000  
Port St. Lucie Utility System (INS)
    4.65  
 (a)
9/01/2033
        1,016        
    1,000  
Sarasota County Public Hospital District  
    5.63    
7/01/2039
        1,020        
    4,000  
Seminole Tribe  (b)
    5.25    
10/01/2027
        3,606        
    5,000  
South Miami Health Facilities Auth.  
    4.63    
8/15/2029
        4,761        
    2,000  
St. Johns County IDA (INS) (b)
    5.50    
3/01/2017
        2,001        
    3,000  
St. Petersburg Health Facilities Auth.  
    6.50    
11/15/2039
        3,231        
    3,400  
Sumter County (INS)
    5.00    
6/01/2036
        3,361        
    2,200  
Tampa Housing Auth.  
    4.85    
7/01/2036
        2,140        
    2,250  
Univ. of Tampa (INS)
    5.50    
4/01/2022
        2,256        
    1,500  
Univ. of Tampa (INS)
    5.50    
4/01/2026
        1,486        
    1,000  
West Orange Healthcare District  
    5.65    
2/01/2022
        1,007        
 
 
 
           
                                                                                                                                                                                                                                                                                Portfolio of Investments |  2
 
 
Principal
Amount
(000)
 
Security
     
Coupon Rate
   
Final
Maturity
 
                                                                                   Market
                                                                                      Value 
                                                                                       (000)
     
       
  $ 1,165  
West Palm Beach Community Redevelopment Agency  
    5.00  
%
3/01/2029
      $ 1,086        
       
  136,493          
       
 
Arkansas (1.1%)
     
    1,000  
Dev. Finance Auth. (INS)
    4.97  
 (a)
7/01/2028
        414          
    1,165  
Dev. Finance Auth. (INS)
    4.98  
 (a)
7/01/2029
        451          
    1,150  
Dev. Finance Auth. (INS)
    4.99  
 (a)
7/01/2030
        414          
    2,500  
Dev. Finance Auth. (INS)
    5.03  
 (a)
7/01/2036
        630          
       
                                                                                                                                                                                                         1,909        
       
 
Connecticut (1.5%)
     
    5,000  
Mashantucket Western Pequot Tribe, acquired 11/09/2007; cost $4,834  (b),(c)
    5.75    
9/01/2034
        2,610          
       
 
District of Columbia (0.9%)
     
    2,870  
Community Academy Public Charter School, Inc. (INS)
    4.88    
5/01/2037
        1,475          
       
 
Georgia (0.6%)
     
    1,000  
Fayette County School District, 4.95%, 9/01/2010 (INS)
    4.95  
 (d)
3/01/2025
        1,004          
       
 
Illinois (0.9%)
     
    1,916  
Village of Montgomery Kane and Kendall Counties (INS)
    4.70    
3/01/2030
        1,582          
       
 
Massachusetts (1.0%)
     
    2,000  
Dev. Finance Agency (INS)
    5.00    
3/01/2036
        1,684          
       
 
Michigan (1.7%)
     
    10,000  
Building Auth. (INS)
    5.01  
 (a)
10/15/2030
        2,824          
       
 
Mississippi (1.7%)
     
    3,000  
Hospital Equipment and Facilities Auth.  
    5.25    
12/01/2026
        2,808          
       
 
North Carolina (0.9%)
     
    1,500  
Municipal Power Agency  
    5.00    
1/01/2030
        1,536          
       
 
North Dakota (1.9%)
     
    1,685  
Williams County  
    5.00    
11/01/2026
        1,534          
    1,950  
Williams County  
    5.00    
11/01/2031
        1,704          
       
                                                                                                    3,238          
       
 
South Carolina (1.0%)
     
    1,655  
Jobs EDA  
    5.63    
11/15/2030
        1,634          
       
 
Tennessee (0.9%)
     
    4,155  
Knox County Health, Educational and Housing Facilities Board  
    5.02  
 (a)
1/01/2036
        795          
    4,000  
Knox County Health, Educational and Housing Facilities Board  
    5.03  
 (a)
1/01/2037
        714          
       
                                                                                                     1,509        
 
 
     
 
   
3  |  USAA Florida Tax-Free Income Fund
 
 
 
Principal
Amount
(000)
Security                                                              Coupon Rate
   
Final
Maturity
 
                                                                                  Market
                                                                                     Value
                                                                                      (000)
     
 
Texas (1.0%)
     
  $ 2,000  
Tarrant County Cultural Education Facilities Finance Corp.  
    5.13  
%
5/15/2037
        1,666          
       
 
Total Fixed-Rate Instruments (cost: $ 166,749)                                                                                                                                                                       161,972
         
       
 
PUT BONDS (2.5%)
     
 
Florida (2.5%)
     
    4,000  
Putnam County Dev. Auth. (INS) (cost:  $4,000)
    5.35    
3/15/2042
      $ 4,257          
       
 
VARIABLE-RATE DEMAND NOTES (0.6%)
     
 
Florida (0.6%)
     
    950  
Sarasota Manatee Airport Auth. (LOC - SunTrust Bank) (cost:  $950)
    0.27    
8/01/2014
        950          
       
 
Total Investments (cost: $171,699)
  $                     167,179          
       
       
                                         
($ in 000s)
VALUATION HIERARCHY
         
       
 
(LEVEL 1)
Quoted Prices in Active Markets
for Identical Assets
     
(LEVEL 2)
Other Significant
Observable Inputs
   
(LEVEL 3)
Significant
Unobservable Inputs
   
                      Total
     
FIXED-RATE INSTRUMENTS
$—      $161,972       $—     $ 161,972      
PUT BONDS
—
     
4,257
   
 
—
      4,257      
VARIABLE-RATE DEMAND NOTES
—
     
950
   
 
—
      950      
Total
$—      $167,179       $—     $ 167,179          
 
   
 
 
 
 
                                                                                                                                                                                                                                                                                      Portfolio of Investments |  4
 
 


NOTES TO PORTFOLIO
OF INVESTMENTS
 
 
December 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 46 separate funds. The information presented in this quarterly report pertains only to the USAA Florida Tax-Free Income Fund
(the Fund), which is classified as diversified under the 1940 Act.

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 tax-exempt securities of comparable quality, coupon, maturity, and type; indications as to values from dealers in securities; and general market
conditions.

2. Debt securities purchased with original or remaining maturities of 60 days or less may be valued at amortized cost, which approximates market value.

3. 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 USAA Investment Management Company (the Manager),
an affiliate of the Fund, 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 net asset value (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.
 
 

 5 |  USAA Florida Tax-Free Income Fund
 
 
 
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. 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.

D. 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 financial statement purposes. The Manager has evaluated subsequent events through February 22, 2010, 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.

E. As of December 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 December 31, 2009, were $4,870,000 and $9,390,000, respectively, resulting in net unrealized depreciation of $4,520,000.

F. The portfolio of investments category percentages shown represent the percentages of the investments to net assets, which were $169,009,000 at December 31, 2009, and,
in total, may not equal 100%.  A category percentage of 0.0% represents less than 0.1% of net assets.

SPECIFIC NOTES

(a)
Zero-coupon security. Rate represents the effective yield at the date of purchase.
 
 
 
 
                                                                                                                                                                                                                                                                 Notes to Portfolio of Investments |  6
 
 
(b)
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.
(c)
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
December 31, 2009, was $2,610,000, which represented 1.5% of the Fund’s net assets.
(d)
Stepped-coupon security that is initially issued in zero-coupon form and converts to coupon form at the specified date and rate shown in the security’s description. The rate presented in the coupon rate column represents the effective yield at the date of purchase.
 
 
 
 
 
 
  7 |  USAA Florida Tax-Free Income 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 December 31, 2009

By:*     /s/ CHRISTOPHER P. LAIA
         --------------------------------------------------------------
         Signature and Title:  Christopher P. Laia, Assistant Secretary

Date:    2/26/2010
         -------------------------------

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:    2/26/2010
         ------------------------------


By:*     /s/ ROBERTO GALINDO, JR.
         -----------------------------------------------------
         Signature and Title:  Roberto Galindo, Jr., Treasurer

Date:    2/26/2010
         ------------------------------


*PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.





Usaa Treasury Money Market Trust (NASDAQ:UATXX)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Usaa Treasury Money Market Trust Charts.
Usaa Treasury Money Market Trust (NASDAQ:UATXX)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Usaa Treasury Money Market Trust Charts.