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: APRIL 30, 2010
ITEM 1. SCHEDULE OF INVESTMENTS.
USAA MUTUAL FUNDS TRUST 3RD QUARTER REPORT - PERIOD ENDED APRIL 30, 2010
[LOGO OF USAA]
USAA(R)
PORTFOLIO OF INVESTMENTS
3(RD) QUARTER
USAA INTERMEDIATE-TERM BOND FUND
APRIL 30, 2010
(Form N-Q)
48483-0610 (C)2010, USAA. All rights reserved.
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PORTFOLIO OF INVESTMENTS
USAA INTERMEDIATE-TERM BOND FUND
April 30, 2010 (unaudited)
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (57.4%)
CONSUMER DISCRETIONARY (2.0%)
----------------------------
APPAREL & ACCESSORIES & LUXURY GOODS (0.1%)
$ 2,048 Kellwood Co. 7.88% 7/15/2011 $ 1,490
-----------
AUTOMOTIVE RETAIL (0.1%)
1,000 AutoZone, Inc. 5.75 1/15/2015 1,094
-----------
BROADCASTING (0.2%)
978 Charter Communications Operating, LLC(a) 2.30(b) 3/06/2014 928
2,000 Liberty Media Corp., LLC 5.70 5/15/2013 2,020
-----------
2,948
-----------
CABLE & SATELLITE (0.3%)
1,000 Comcast Corp. 6.50 1/15/2017 1,121
1,000 Time Warner Cable, Inc. 8.25 2/14/2014 1,182
2,000 Virgin Media Secured Finance(c) 6.50 1/15/2018 2,020
-----------
4,323
-----------
CASINOS & GAMING (0.1%)
134 Harrah's Operating Co., Inc. 10.00 2/01/2016 116
950 Seminole Tribe of Florida(c) 7.80 10/01/2020 895
-----------
1,011
-----------
DEPARTMENT STORES (0.3%)
1,000 Macy's Retail Holdings, Inc. 7.45 10/15/2016 1,105
3,221 Macy's Retail Holdings, Inc. 7.45 7/15/2017 3,527
-----------
4,632
-----------
HOTELS, RESORTS, & CRUISE LINES (0.2%)
2,000 Starwood Hotels & Resorts Worldwide, Inc. 7.88 10/15/2014 2,205
-----------
HOUSEHOLD APPLIANCES (0.2%)
2,000 Stanley Works Capital Trust I 5.90 12/01/2045 1,970
1,000 Whirlpool Corp. 7.75 7/15/2016 1,166
-----------
3,136
-----------
LEISURE PRODUCTS (0.2%)
2,000 Hasbro, Inc. 6.13 5/15/2014 2,222
-----------
SPECIALTY STORES (0.3%)
1,000 Staples, Inc. 7.75 4/01/2011 1,056
2,000 Staples, Inc. 9.75 1/15/2014 2,452
-----------
3,508
-----------
Total Consumer Discretionary 26,569
-----------
CONSUMER STAPLES (2.6%)
-----------------------
AGRICULTURAL PRODUCTS (0.2%)
1,000 Bunge Ltd. Finance Co. 8.50 6/15/2019 1,190
2,000 Cargill, Inc.(c) 6.00 11/27/2017 2,201
-----------
3,391
-----------
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1 | USAA Intermediate-Term Bond Fund
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
BREWERS (0.2%)
$ 2,000 Anheuser-Busch Companies, Inc.(c) 7.20% 1/15/2014 $ 2,304
-----------
DISTILLERS & VINTNERS (0.1%)
2,000 Constellation Brands, Inc. 7.25 5/15/2017 2,050
-----------
DRUG RETAIL (1.0%)
13,600 CVS Caremark Corp. 6.30 6/01/2037 13,130
-----------
FOOD RETAIL (0.3%)
1,593 Ahold Lease USA, Inc. 7.82 1/20/2020 1,771
2,000 Kroger Co. 5.50 2/01/2013 2,173
-----------
3,944
-----------
PACKAGED FOODS & MEAT (0.5%)
5,000 Kraft Foods, Inc. 2.63 5/08/2013 5,116
1,000 Tyson Foods, Inc. 7.85 4/01/2016 1,090
-----------
6,206
-----------
SOFT DRINKS (0.2%)
1,000 Bottling Group, LLC 5.50 4/01/2016 1,118
1,000 Coca Cola Enterprises, Inc. 7.38 3/03/2014 1,179
-----------
2,297
-----------
TOBACCO (0.1%)
1,000 Universal Corp. 5.00 9/01/2011 1,026
-----------
Total Consumer Staples 34,348
-----------
ENERGY (7.9%)
-------------
INTEGRATED OIL & GAS (0.4%)
2,000 Hess Corp. 8.13 2/15/2019 2,490
1,000 Marathon Oil Corp. 6.50 2/15/2014 1,130
1,000 Occidental Petroleum Corp. 7.00 11/01/2013 1,166
1,000 Polar Tankers, Inc.(c) 5.95 5/10/2037 1,035
-----------
5,821
-----------
OIL & GAS DRILLING (0.2%)
2,000 Nabors Industries, Inc. 9.25 1/15/2019 2,534
-----------
OIL & GAS EQUIPMENT & SERVICES (0.4%)
2,000 Seacor Holdings, Inc. 5.88 10/01/2012 2,111
2,000 Weatherford International Ltd. 9.63 3/01/2019 2,591
-----------
4,702
-----------
OIL & GAS EXPLORATION & PRODUCTION (1.3%)
4,000 Denbury Resources, Inc. 7.50 12/15/2015 4,130
1,208 Denbury Resources, Inc. 9.75 3/01/2016 1,341
2,000 Devon Energy Corp. 6.30 1/15/2019 2,291
3,000 Newfield Exploration Co. 6.88 2/01/2020 3,045
2,000 Noble Energy, Inc. 8.25 3/01/2019 2,466
1,000 Range Resources Corp. 8.00 5/15/2019 1,085
1,000 XTO Energy, Inc. 4.63 6/15/2013 1,076
1,000 XTO Energy, Inc. 5.65 4/01/2016 1,129
-----------
16,563
-----------
OIL & GAS REFINING & MARKETING (0.4%)
2,000 Motiva Enterprises, LLC(c) 5.75 1/15/2020 2,148
1,000 Plains All American Pipeline, LP 8.75 5/01/2019 1,245
1,000 Sunoco, Inc. 9.63 4/15/2015 1,202
-----------
4,595
-----------
OIL & GAS STORAGE & TRANSPORTATION (5.2%)
250 Buckeye Partners, LP 5.13 7/01/2017 255
1,000 DCP Midstream, LLC(c) 9.70 12/01/2013 1,219
1,000 Duke Capital Corp., LLC 5.50 3/01/2014 1,075
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Portfolio of Investments | 2
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 1,000 Duke Capital Corp., LLC 8.00% 10/01/2019 $ 1,210
2,000 El Paso Energy Corp.(c) 5.90 4/01/2017 2,131
2,000 El Paso Pipeline Partners Operating, LLC 6.50 4/01/2020 2,075
9,000 Enbridge Energy Partners, LP 8.05 10/01/2037 9,156
1,000 Energy Transfer Partners, LP 6.00 7/01/2013 1,092
1,000 Energy Transfer Partners, LP 9.70 3/15/2019 1,294
1,000 Enterprise Products Operating, LP 8.38 8/01/2066 1,041
5,000 Enterprise Products Operating, LP 7.00 6/01/2067 4,716
3,550 Enterprise Products Operating, LP 7.03 1/15/2068 3,435
2,000 Gulf South Pipeline Co., LP 5.75 8/15/2012 2,160
2,000 Kaneb Pipe Line Operating Partnership, LP 5.88 6/01/2013 2,145
2,405 Kinder Morgan Finance Co. 5.70 1/05/2016 2,381
2,000 Kinder Morgan, Inc. 6.50 9/01/2012 2,113
1,000 NGPL PipeCo, LLC 6.51 12/15/2012 1,099
2,000 NGPL PipeCo, LLC 7.12 12/15/2017 2,277
1,000 Rockies Express Pipeline, LLC(c) 3.90 4/15/2015 995
2,000 Sabine Pass LNG, LP 7.25 11/30/2013 1,933
6,110 SourceGas, LLC(c) 5.90 4/01/2017 5,797
3,000 Southeast Supply Header(c) 4.85 8/15/2014 3,091
7,750 Southern Union Co. 7.20 11/01/2066 7,285
1,000 Spectra Energy Capital, LLC 5.90 9/15/2013 1,097
2,000 Sunoco Logistics Partners Operations, LP 8.75 2/15/2014 2,333
1,000 Tennessee Gas Pipeline Co. 8.00 2/01/2016 1,149
2,000 Tennessee Gas Pipeline Co. 7.00 10/15/2028 2,201
500 Transcontinental Gas Pipeline Corp. 8.88 7/15/2012 570
1,000 Valero Logistics Operations, LP 6.05 3/15/2013 1,077
-----------
68,402
-----------
Total Energy 102,617
-----------
FINANCIALS (25.5%)
------------------
ASSET MANAGEMENT & CUSTODY BANKS (0.2%)
2,000 Mellon Bank, N.A. 5.45 4/01/2016 2,172
-----------
CONSUMER FINANCE (0.8%)
3,000 American Express Co. 6.80 9/01/2066 2,978
1,000 American Honda Finance Corp.(c) 6.70 10/01/2013 1,118
965 Capital One Financial Corp. 7.69 8/15/2036 955
1,000 ERAC USA Finance Co.(c) 6.20 11/01/2016 1,068
1,000 Ford Motor Credit Co., LLC 7.50 8/01/2012 1,034
2,000 Ford Motor Credit Co., LLC 7.00 10/01/2013 2,065
1,266 General Motors Acceptance Corp. 6.88 8/28/2012 1,296
-----------
10,514
-----------
DIVERSIFIED BANKS (2.2%)
1,000 Comerica Bank 5.20 8/22/2017 995
5,000 Comerica Capital Trust II 6.58 2/20/2037 4,500
1,000 Emigrant Bancorp, Inc.(c) 6.25 6/15/2014 767
1,000 First Tennessee Bank, N.A. 4.63 5/15/2013 974
3,000 First Tennessee Bank, N.A. 5.65 4/01/2016 3,008
2,000 First Union National Bank, FL 6.18 2/15/2036 2,118
3,000 First Union National Bank, NC 6.18 2/15/2036 3,178
2,000 Key Bank, N.A. 5.45 3/03/2016 2,039
5,000 USB Capital IX 6.19 -(d) 4,394
2,500 USB Realty Corp.(c) 6.09 -(d) 2,119
3,470 Wells Fargo Capital XIII 7.70 -(d) 3,626
1,000 Wells Fargo Capital XV 9.75 -(d) 1,125
-----------
28,843
-----------
DIVERSIFIED REAL ESTATE ACTIVITIES (0.0%)
500 Brookfield Asset Management, Inc. 5.80 4/25/2017 495
-----------
INVESTMENT BANKING & BROKERAGE (0.4%)
3,000 Goldman Sachs Capital II 5.79 -(d) 2,389
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3 | USAA Intermediate-Term Bond Fund
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 2,000 Merrill Lynch & Co., Inc. 6.05% 8/15/2012 $ 2,147
-----------
4,536
-----------
LIFE & HEALTH INSURANCE (3.0%)
2,000 Blue Cross Blue Shield, Inc. 8.25 11/15/2011 2,161
2,000 Great-West Life & Annuity Insurance Co.(c) 7.15 5/16/2046 1,940
3,000 Jackson National Life Global Funding(c) 5.38 5/08/2013 3,221
6,000 Lincoln National Corp. 7.00 5/17/2066 5,610
5,000 MetLife Capital Trust X(c) 9.25 4/08/2038 5,875
6,000 Nationwide Mutual Insurance Co.(c) 5.81 12/15/2024 5,569
2,000 Prudential Financial, Inc. 6.00 12/01/2017 2,158
1,000 Prudential Financial, Inc. 8.88 6/15/2038 1,135
10,000 StanCorp Financial Group, Inc. 6.90 6/01/2067 8,925
2,000 Travelers Life & Annuity(c) 5.13 8/15/2014 2,136
-----------
38,730
-----------
MULTI-LINE INSURANCE (2.5%)
2,000 American General Finance Corp. 4.88 7/15/2012 1,865
2,000 American International Group, Inc. 8.18 5/15/2058 1,747
3,000 Farmers Exchange Capital(c) 7.05 7/15/2028 2,837
8,000 Genworth Financial, Inc. 6.15 11/15/2066 6,460
10,000 Glen Meadow(c) 6.51 2/12/2067 8,450
2,000 HCC Insurance Holdings, Inc. 6.30 11/15/2019 2,124
10,295 Oil Insurance Ltd.(c) 7.56 -(d) 9,014
-----------
32,497
-----------
MULTI-SECTOR HOLDINGS (0.2%)
1,000 Leucadia National Corp. 7.00 8/15/2013 1,052
1,000 Leucadia National Corp. 7.13 3/15/2017 995
-----------
2,047
-----------
OTHER DIVERSIFIED FINANCIAL SERVICES (1.7%)
1,000 Bank of America Corp. 8.00 -(d) 1,008
1,000 Bank of America Corp. 8.13 -(d) 1,008
2,000 Bank of America Corp. 5.75 12/01/2017 2,046
2,000 Citigroup, Inc. 6.38 8/12/2014 2,160
1,000 First Republic Bank Corp. 7.75 9/15/2012 1,062
2,000 General Electric Capital Corp. 4.80 5/01/2013 2,142
3,000 General Electric Capital Corp. 6.38 11/15/2067 2,891
6,440 General Electric Capital Corp. 6.38 11/15/2067 6,207
1,000 ILFC E-Capital Trust I(c) 5.90 12/21/2065 765
2,000 ILFC E-Capital Trust II(c) 6.25 12/21/2065 1,530
1,000 Ohio National Financial Services, Inc.(c) 6.38 4/30/2020 1,028
-----------
21,847
-----------
PROPERTY & CASUALTY INSURANCE (3.1%)
1,000 21st Century Insurance Group 5.90 12/15/2013 1,049
5,000 Allstate Corp. 6.13 5/15/2037 4,725
1,535 Assured Guaranty U.S. Holdings, Inc. 7.00 6/01/2034 1,335
2,425 Assured Guaranty U.S. Holdings, Inc. 6.40 12/15/2066 1,873
5,500 Chubb Corp. 6.38 3/29/2067 5,562
3,000 Financial Security Assurance Holdings Ltd.(c) 6.40 12/15/2066 2,085
2,000 First American Capital Trust I 8.50 4/15/2012 2,021
2,275 Fund American Companies, Inc. 5.88 5/15/2013 2,370
1,000 Infinity Property & Casualty Corp. 5.50 2/18/2014 998
2,000 Liberty Mutual Group, Inc. 7.30 6/15/2014 2,191
3,000 Liberty Mutual Group, Inc.(c) 7.00 3/15/2037 2,662
7,000 Progressive Corp. 6.70 6/15/2037 6,946
2,000 RLI Corp. 5.95 1/15/2014 2,057
5,000 Travelers Companies, Inc. 6.25 3/15/2037 4,924
-----------
40,798
-----------
REGIONAL BANKS (3.8%)
3,000 AgFirst Farm Credit Bank 6.59 -(d) 2,501
1,500 AmSouth Bank, N.A. 5.20 4/01/2015 1,460
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Portfolio of Investments | 4
<PAGE>
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 1,750 Bank of Oklahoma 5.75% 5/15/2017 $ 1,650
2,000 Chittenden Corp. 5.80 2/14/2017 1,989
2,000 City National Capital Trust I 9.63 2/01/2040 2,248
1,000 City National Corp. 5.13 2/15/2013 1,036
2,000 Cullen/Frost Bankers, Inc. 5.75 2/15/2017 1,896
6,000 Fifth Third Capital Trust IV 6.50 4/15/2037 5,175
2,395 First Empire Capital Trust I 8.23 2/01/2027 2,221
2,000 Fulton Capital Trust I 6.29 2/01/2036 1,283
2,500 Huntington Capital III 6.65 5/15/2037 1,817
4,000 Manufacturers & Traders Trust Co. 5.63 12/01/2021 3,720
1,500 National City Preferred Capital Trust I 12.00 -(d) 1,740
5,000 PNC Preferred Funding Trust III(c) 8.70 3/29/2049 5,293
2,000 Susquehanna Bancshares, Inc. 2.07(b) 5/01/2014 1,512
2,000 TCF Financial Bank 1.89(b) 6/15/2014 1,807
2,000 TCF National Bank 5.50 2/01/2016 1,901
2,000 U.S. AgBank, FCB(c) 6.11 -(d) 1,411
2,500 Union Planters Corp. 7.75 3/01/2011 2,554
4,000 Webster Capital Trust IV 7.65 6/15/2037 2,920
1,000 Webster Financial Corp. 5.13 4/15/2014 933
1,000 Whitney National Bank 5.88 4/01/2017 883
1,000 Wilmington Trust Corp. 8.50 4/02/2018 1,027
1,000 Zions Bancorp 6.00 9/15/2015 959
-----------
49,936
-----------
REINSURANCE (0.3%)
2,624 Max USA Holdings Ltd.(c) 7.20 4/14/2017 2,738
1,000 Platinum Underwriters Finance, Inc. 7.50 6/01/2017 1,090
-----------
3,828
-----------
REITs - DIVERSIFIED (0.6%)
1,000 Liberty Property, LP 5.13 3/02/2015 1,009
1,000 Liberty Property, LP 6.63 10/01/2017 1,046
4,000 Washington REIT 5.35 5/01/2015 4,158
2,000 WEA Finance(c) 5.75 9/02/2015 2,165
-----------
8,378
-----------
REITs - INDUSTRIAL (0.7%)
2,500 AMB Property, LP 6.30 6/01/2013 2,685
5,000 ProLogis 6.88 3/15/2020 4,959
1,000 ProLogis 2.25 4/01/2037 970
1,000 ProLogis 1.88 11/15/2037 931
-----------
9,545
-----------
REITs - OFFICE (1.3%)
2,000 BioMed Realty, LP(c) 6.13 4/15/2020 2,028
2,000 Boston Properties, Inc. 5.88 10/15/2019 2,125
1,500 Boston Properties, LP 6.25 1/15/2013 1,633
2,000 Brandywine Operating Partnership, LP 7.50 5/15/2015 2,201
1,000 Duke Realty, LP 5.50 3/01/2016 1,007
1,000 Duke Realty, LP 5.95 2/15/2017 1,025
1,000 Duke Realty, LP 6.50 1/15/2018 1,051
1,000 HRPT Properties Trust 5.75 11/01/2015 1,009
1,000 HRPT Properties Trust 6.65 1/15/2018 1,021
1,500 Mack-Cali Realty, LP 5.80 1/15/2016 1,582
1,000 Mack-Cali Realty, LP 7.75 8/15/2019 1,175
1,000 Reckson Operating Partnership, LP 6.00 3/31/2016 998
-----------
16,855
-----------
REITs - RESIDENTIAL (1.0%)
2,000 AvalonBay Communities, Inc. 5.50 1/15/2012 2,109
1,330 BRE Properties, Inc. 5.50 3/15/2017 1,327
1,000 ERP Operating, LP 6.63 3/15/2012 1,085
1,965 ERP Operating, LP 6.58 4/13/2015 2,183
1,000 Post Apartment Homes, LP 5.45 6/01/2012 1,041
3,000 UDR, Inc. 5.13 1/15/2014 3,067
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5 | USAA Intermediate-Term Bond Fund
<PAGE>
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 2,000 United Dominion Realty Trust 5.25% 1/15/2015 $ 2,035
-----------
12,847
-----------
REITs - RETAIL (2.1%)
1,000 Developers Diversified Realty Corp. 5.38 10/15/2012 1,013
2,000 Developers Diversified Realty Corp. 5.50 5/01/2015 1,966
3,000 Equity One, Inc. 6.25 12/15/2014 3,145
1,000 Federal Realty Investment Trust 6.20 1/15/2017 1,036
1,000 National Retail Properties, Inc. 6.88 10/15/2017 1,040
1,000 Pan Pacific Retail Properties, Inc. 7.95 4/15/2011 1,029
1,000 Pan Pacific Retail Properties, Inc. 5.25 9/01/2015 1,044
2,000 Realty Income Corp. 5.95 9/15/2016 2,069
2,000 Regency Centers, LP 5.88 6/15/2017 2,041
2,000 Rouse Co.(e) 7.20 9/15/2012 2,302
2,000 Rouse Co.(e) 5.38 11/26/2013 2,165
3,525 Simon Property Group, LP 5.30 5/30/2013 3,783
1,000 Simon Property Group, LP 6.10 5/01/2016 1,080
4,000 Weingarten Realty Investors 4.86 1/15/2014 4,036
-----------
27,749
-----------
REITs - SPECIALIZED (1.4%)
2,000 Health Care Property Investors, Inc. 6.30 9/15/2016 2,099
3,000 Health Care REIT, Inc. 6.13 4/15/2020 3,102
3,000 Healthcare Realty Trust 6.50 1/17/2017 3,146
1,000 Hospitality Properties Trust 5.13 2/15/2015 997
2,000 Nationwide Health Properties, Inc. 6.90 10/01/2037 2,056
2,500 Senior Housing Properties Trust 6.75 4/15/2020 2,488
1,000 Ventas Realty, LP 9.00 5/01/2012 1,075
500 Ventas Realty, LP 6.50 6/01/2016 517
3,000 Ventas Realty, LP 6.75 4/01/2017 3,090
-----------
18,570
-----------
THRIFTS & MORTGAGE FINANCE (0.2%)
2,000 Sovereign Bank 1.96(b) 8/01/2013 1,976
1,000 Sovereign Bank 2.11(b) 4/01/2014 980
-----------
2,956
-----------
Total Financials 333,143
-----------
HEALTH CARE (0.8%)
------------------
HEALTH CARE EQUIPMENT (0.2%)
1,000 Baxter International, Inc. 4.00 3/01/2014 1,057
1,000 Hospira, Inc. 6.40 5/15/2015 1,126
1,000 Hospira, Inc. 6.05 3/30/2017 1,099
-----------
3,282
-----------
HEALTH CARE FACILITIES (0.1%)
1,500 HCA, Inc.(c) 7.25 9/15/2020 1,573
-----------
HEALTH CARE SERVICES (0.1%)
1,000 Laboratory Corp. of America 5.63 12/15/2015 1,089
-----------
MANAGED HEALTH CARE (0.2%)
2,000 Highmark, Inc.(c) 6.80 8/15/2013 2,159
-----------
PHARMACEUTICALS (0.2%)
2,000 Roche Holdings, Inc.(c) 5.00 3/01/2014 2,182
-----------
Total Health Care 10,285
-----------
INDUSTRIALS (3.3%)
------------------
AIR FREIGHT & LOGISTICS (0.2%)
2,000 FedEx Corp. 7.38 1/15/2014 2,312
-----------
AIRLINES (1.0%)
223 Airplanes Pass-Through Trust 0.61(b) 3/15/2019 214
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Portfolio of Investments | 6
<PAGE>
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 309 America West Airlines, Inc. Pass-Through Trust 6.87% 1/02/2017 $ 292
1,723 America West Airlines, Inc. Pass-Through Trust
(INS) 7.93 1/02/2019 1,745
2,483 American Airlines Pass-Through Trust 10.38 7/02/2019 2,874
888 American Airlines, Inc. Pass-Through Trust
(INS) 3.86 7/09/2010 890
1,000 American Airlines, Inc. Pass-Through Trust 6.82 5/23/2011 1,000
2,939 Continental Airlines, Inc. Pass-Through Trust 9.00 7/08/2016 3,233
949 Continental Airlines, Inc. Pass-Through Trust 6.55 2/02/2019 968
1,106 Continental Airlines, Inc. Pass-Through Trust
(INS) 6.24 3/15/2020 1,023
140 United Airlines Pass-Through Trust 7.73 7/01/2010 141
469 United Airlines, Inc. Pass-Through Trust 7.78 1/01/2014 484
-----------
12,864
-----------
BUILDING PRODUCTS (0.4%)
1,000 Building Materials Corp.(c) 7.00 2/15/2020 1,020
2,000 CRH America, Inc. 5.63 9/30/2011 2,100
1,000 USG Corp. 6.30 11/15/2016 930
1,000 USG Corp. 9.50(b) 1/15/2018 1,047
-----------
5,097
-----------
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS (0.1%)
1,000 Paccar, Inc. 6.88 2/15/2014 1,149
-----------
DIVERSIFIED SUPPORT SERVICES (0.1%)
1,000 Iron Mountain, Inc. 7.75 1/15/2015 1,016
-----------
ENVIRONMENTAL & FACILITIES SERVICES (0.2%)
2,000 Allied Waste North America, Inc. 6.88 6/01/2017 2,208
-----------
INDUSTRIAL CONGLOMERATES (0.6%)
2,000 Textron Financial Corp. 5.40 4/28/2013 2,084
3,000 Tyco International Finance 8.50 1/15/2019 3,812
2,000 Tyco International Finance S.A. 4.13 10/15/2014 2,096
-----------
7,992
-----------
INDUSTRIAL MACHINERY (0.3%)
2,000 Ingersoll-Rand GL Holding Co. 9.50 4/15/2014 2,454
1,000 Pall Corp.(c) 6.00 8/01/2012 1,009
-----------
3,463
-----------
RAILROADS (0.2%)
2,000 Norfolk Southern Corp. 7.70 5/15/2017 2,411
1,494 Southern Capital Corp.(c) 5.70 6/30/2023 1,002
-----------
3,413
-----------
SECURITY & ALARM SERVICES (0.2%)
2,000 Corrections Corp. of America 7.75 6/01/2017 2,130
1,000 Geo Group, Inc.(c) 7.75 10/15/2017 1,028
-----------
3,158
-----------
Total Industrials 42,672
-----------
INFORMATION TECHNOLOGY (0.2%)
-----------------------------
DATA PROCESSING & OUTSOURCED SERVICES (0.2%)
1,000 Computer Sciences Corp. 5.50 3/15/2013 1,080
2,000 Fiserv, Inc. 6.13 11/20/2012 2,184
-----------
3,264
-----------
Total Information Technology 3,264
-----------
MATERIALS (1.8%)
----------------
DIVERSIFIED CHEMICALS (0.4%)
2,000 Chevron Phillips Chemical Co., LP(c) 7.00 6/15/2014 2,265
================================================================================
7 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 2,000 Dow Chemical Co. 5.90% 2/15/2015 $ 2,196
1,000 E.I. du Pont de Nemours and Co. 6.00 7/15/2018 1,128
-----------
5,589
-----------
DIVERSIFIED METALS & MINING (0.3%)
3,000 Rio Tinto Finance (USA) Ltd. 8.95 5/01/2014 3,638
-----------
GOLD (0.2%)
2,000 Barrick Gold Finance Co., LLC 6.13 9/15/2013 2,236
-----------
METAL & GLASS CONTAINERS (0.4%)
2,000 Ball Corp. 6.63 3/15/2018 2,040
1,000 Owens Brockway Glass Container, Inc. 6.75 12/01/2014 1,030
2,725 Silgan Holdings, Inc. 7.25 8/15/2016 2,854
-----------
5,924
-----------
PAPER PRODUCTS (0.3%)
3,000 International Paper Co. 7.50 8/15/2021 3,531
-----------
STEEL (0.2%)
2,000 Allegheny Technologies, Inc. 9.38 6/01/2019 2,392
-----------
Total Materials 23,310
-----------
MUNICIPAL BONDS (0.5%)
----------------------
EDUCATION (0.3%)
3,000 Rensselaer Polytechnic Institute 5.60 9/01/2020 3,132
-----------
HOSPITAL (0.2%)
3,000 Novant Health, Inc. 5.35 11/01/2016 3,116
-----------
Total Municipal Bonds 6,248
-----------
TELECOMMUNICATION SERVICES (1.3%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (1.2%)
5,000 Qwest Communications International, Inc.(c) 7.13 4/01/2018 5,187
4,000 Qwest Corp. 8.38 5/01/2016 4,580
1,000 Verizon Communications, Inc. 5.25 4/15/2013 1,094
3,000 Verizon Wireless Capital LLC 5.55 2/01/2014 3,306
2,000 Windstream Corp. 7.88 11/01/2017 1,995
-----------
16,162
-----------
WIRELESS TELECOMMUNICATION SERVICES (0.1%)
1,000 AT&T Wireless Services, Inc. 7.88 3/01/2011 1,058
-----------
Total Telecommunication Services 17,220
-----------
UTILITIES (11.5%)
-----------------
ELECTRIC UTILITIES (5.8%)
1,000 Ameren UE 5.10 10/01/2019 1,024
1,000 Baltimore Gas and Electric Co. 5.90 10/01/2016 1,094
992 Bruce Mansfield Unit 1 & 2 2007 Pass-Through
Trust 6.85 6/01/2034 1,033
1,045 Carolina Power & Light Co. 6.13 9/15/2033 1,125
1,384 Cedar Brakes II, LLC(c) 9.88 9/01/2013 1,413
2,000 Cleveland Electric Illuminating Co. 8.88 11/15/2018 2,551
2,000 Commonwealth Edison Co. 5.80 3/15/2018 2,204
1,000 Duke Energy Carolinas, LLC 5.75 11/15/2013 1,125
2,550 Entergy Gulf States, Inc. 5.70 6/01/2015 2,555
1,000 Entergy Louisiana Holdings, Inc. 5.83 11/01/2010 1,001
2,000 Entergy Mississippi, Inc. 5.92 2/01/2016 2,042
708 FPL Energy National Wind, LLC(c) 5.61 3/10/2024 717
4,000 FPL Group Capital, Inc. 6.35 10/01/2066 3,805
1,000 FPL Group Capital, Inc. 7.30 9/01/2067 1,026
3,000 Great Plains Energy, Inc. 6.88 9/15/2017 3,297
1,000 Illinois Power Co. 6.13 11/15/2017 1,090
================================================================================
Portfolio of Investments | 8
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 2,000 Illinois Power Co. 9.75% 11/15/2018 $ 2,631
2,000 Indiana Michigan Power Co. 7.00 3/15/2019 2,301
2,320 ITC Holdings Corp.(c) 5.25 7/15/2013 2,391
2,000 Metropolitan Edison Co. 7.70 1/15/2019 2,363
1,000 MidAmerican Energy Holdings Co. 5.88 10/01/2012 1,095
1,000 Nevada Power Co. 6.50 5/15/2018 1,117
1,000 New York State Electric & Gas Corp. 5.50 11/15/2012 1,076
2,000 Northeast Utilities 5.65 6/01/2013 2,141
1,700 Northern States Power Co. 8.00 8/28/2012 1,949
341 Oglethorpe Power Corp. 6.97 6/30/2011 342
2,000 Oglethorpe Power Corp. 6.10 3/15/2019 2,226
2,000 Otter Tail Corp. 9.00 12/15/2016 2,210
9,600 PPL Capital Funding, Inc. 6.70 3/30/2067 8,796
2,000 PPL Energy Supply, LLC 6.40 11/01/2011 2,139
1,000 PSI Energy, Inc. 6.05 6/15/2016 1,118
3,000 Public Service Co. of New Mexico 7.95 5/15/2018 3,206
1,000 Public Service Co. of Oklahoma 6.15 8/01/2016 1,108
1,000 Sierra Pacific Power Co. 6.25 4/15/2012 1,068
4,000 Texas - New Mexico Power Co.(c) 9.50 4/01/2019 4,959
975 Texas Competitive Electric Holdings Co., LLC(a) 3.75(b) 10/10/2014 802
975 Texas Competitive Electric Holdings Co., LLC(a) 3.75(b) 10/10/2014 797
759 Tristate General & Transport Association(c) 6.04 1/31/2018 781
1,000 Union Electric Co. 6.70 2/01/2019 1,139
1,000 Virginia Electric Power Co. 5.40 1/15/2016 1,096
-----------
75,953
-----------
GAS UTILITIES (1.7%)
2,000 AGL Capital Corp. 6.38 7/15/2016 2,188
2,000 Atmos Energy Corp. 6.35 6/15/2017 2,193
1,000 Atmos Energy Corp. 8.50 3/15/2019 1,257
1,000 CenterPoint Energy Resources Corp. 5.95 1/15/2014 1,082
1,000 EQT Corp. 8.13 6/01/2019 1,215
2,000 Equitable Resources Foundation, Inc. 6.50 4/01/2018 2,189
2,000 Florida Gas Transmission Co.(c) 7.90 5/15/2019 2,423
3,000 Gulfstream Natural Gas(c) 6.95 6/01/2016 3,420
1,000 National Fuel Gas Co. 7.38 6/13/2025 1,132
1,000 Northern Natural Gas Co.(c) 5.38 10/31/2012 1,083
2,000 Oneok Partners, LP 8.63 3/01/2019 2,514
1,000 Questar Pipeline Co. 5.83 2/01/2018 1,088
1,000 Southern Star Central Gas Pipeline, Inc.(c) 6.00 6/01/2016 1,025
-----------
22,809
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.4%)
2,680 IPALCO Enterprises, Inc.(c) 7.25 4/01/2016 2,821
2,000 Transalta Corp. 4.75 1/15/2015 2,093
-----------
4,914
-----------
MULTI-UTILITIES (3.4%)
1,000 Ameren Corp. 8.88 5/15/2014 1,169
3,500 Black Hills Corp. 6.50 5/15/2013 3,787
2,000 CenterPoint Energy Houston Electric, LLC 7.00 3/01/2014 2,282
1,000 CenterPoint Energy, Inc. 7.25 9/01/2010 1,018
2,000 CMS Energy Corp. 6.25 2/01/2020 2,015
1,000 Dominion Resources, Inc. 8.88 1/15/2019 1,288
5,000 Dominion Resources, Inc. 7.50 6/30/2066 5,081
1,000 Energy East Corp. 6.75 6/15/2012 1,100
8,025 Integrys Energy Group, Inc. 6.11 12/01/2066 7,513
1,000 NiSource Finance Corp. 6.40 3/15/2018 1,095
1,000 Puget Sound Energy, Inc. 6.75 1/15/2016 1,160
7,500 Puget Sound Energy, Inc. 6.97 6/01/2067 7,153
2,000 Sempra Energy 9.80 2/15/2019 2,661
================================================================================
9 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 6,890 Wisconsin Energy Corp. 6.25% 5/15/2067 $ 6,649
-----------
43,971
-----------
WATER UTILITIES (0.2%)
2,000 American Water Capital Corp. 6.09 10/15/2017 2,185
-----------
Total Utilities 149,832
-----------
Total Corporate Obligations (cost: $688,072) 749,508
-----------
EURODOLLAR AND YANKEE OBLIGATIONS (5.9%)
ENERGY (1.3%)
-------------
INTEGRATED OIL & GAS (0.2%)
1,000 Husky Energy, Inc. 7.25 12/15/2019 1,182
1,000 Nakilat, Inc.(c) 6.07 12/31/2033 917
400 PEMEX Finance Ltd. 8.88 11/15/2010 411
200 PEMEX Finance Ltd. 9.03 2/15/2011 205
-----------
2,715
-----------
OIL & GAS DRILLING (0.1%)
244 Delek & Avner-Yam Tethys Ltd.(c) 1.35(b) 8/01/2013 244
359 Delek & Avner-Yam Tethys Ltd.(c) 5.33 8/01/2013 365
-----------
609
-----------
OIL & GAS EXPLORATION & PRODUCTION (0.3%)
1,500 Talisman Energy, Inc. 7.75 6/01/2019 1,833
2,000 Woodside Finance Ltd.(c) 8.75 3/01/2019 2,494
-----------
4,327
-----------
OIL & GAS STORAGE & TRANSPORTATION (0.7%)
2,000 TransCanada Pipelines Ltd. 7.13 1/15/2019 2,395
7,135 TransCanada Pipelines Ltd. 6.35 5/15/2067 6,871
-----------
9,266
-----------
Total Energy 16,917
-----------
FINANCIALS (3.2%)
-----------------
DIVERSIFIED BANKS (1.7%)
3,000 BayernLB Capital Trust I 6.20 -(d) 1,748
2,000 Credit Agricole S.A.(c) 6.64 -(d) 1,705
1,000 HSBC Capital Funding, LP(c) 9.55 -(d) 1,012
4,000 ING Groep N.V. 5.78 -(d) 3,456
3,000 LBG Capital No. 1 plc 7.88 11/01/2020 2,760
2,000 LBG Capital No.1 plc 8.00 -(d) 1,740
1,000 Lloyds TSB Bank plc(c) 4.38 1/12/2015 994
2,000 National Capital Trust II(c) 5.49 -(d) 1,851
2,000 Nordea Bank AB(c) 5.42 -(d) 1,849
4,000 Royal Bank of Scotland Group plc 7.64 -(d) 2,610
2,000 Standard Chartered plc(c) 6.41 -(d) 1,842
1,000 Westpac Capital Trust IV(c) 5.26 -(d) 919
-----------
22,486
-----------
DIVERSIFIED REAL ESTATE ACTIVITIES (0.1%)
1,000 Brookfield Asset Management, Inc. 7.13 6/15/2012 1,079
-----------
MULTI-LINE INSURANCE (0.2%)
1,500 AXA S.A. 4.05(b) -(d) 1,100
2,000 AXA S.A.(c) 6.46 -(d) 1,800
-----------
2,900
-----------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.4%)
2,500 ZFS Finance USA Trust I(c) 6.15 12/15/2065 2,425
3,000 ZFS Finance USA Trust II(c) 6.45 12/15/2065 2,925
-----------
5,350
-----------
================================================================================
Portfolio of Investments | 10
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
PROPERTY & CASUALTY INSURANCE (0.5%)
$ 2,000 Allied World Assurance Holdings Ltd. 7.50% 8/01/2016 $ 2,184
3,000 Catlin Insurance Co. Ltd.(c) 7.25 -(d) 2,715
2,000 QBE Insurance Group Ltd.(c) 5.65 7/01/2023 1,828
-----------
6,727
-----------
SPECIALIZED FINANCE (0.3%)
4,000 XL Capital Ltd. 6.50 -(d) 3,320
-----------
Total Financials 41,862
-----------
INDUSTRIALS (0.4%)
------------------
BUILDING PRODUCTS (0.2%)
2,000 CRH America, Inc. 6.00 9/30/2016 2,192
-----------
INDUSTRIAL CONGLOMERATES (0.2%)
2,000 Hutchison Whampoa Ltd.(c) 7.63 4/09/2019 2,362
1,000 Siemens Financieringsmat(c) 6.13 8/17/2026 1,086
-----------
3,448
-----------
Total Industrials 5,640
-----------
MATERIALS (0.8%)
----------------
DIVERSIFIED METALS & MINING (0.4%)
2,000 Glencore Funding, LLC(c) 6.00 4/15/2014 2,106
3,000 Noranda, Inc. 6.00 10/15/2015 3,258
-----------
5,364
-----------
GOLD (0.2%)
2,000 Barrick Gold Corp. 6.95 4/01/2019 2,347
-----------
PAPER PRODUCTS (0.1%)
2,000 Sappi Papier Holding AG(c) 6.75 6/15/2012 2,002
-----------
STEEL (0.1%)
1,000 ArcelorMittal 9.00 2/15/2015 1,204
-----------
Total Materials 10,917
-----------
TELECOMMUNICATION SERVICES (0.2%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (0.2%)
2,000 Telecom Italia Capital 5.25 11/15/2013 2,107
-----------
Total Eurodollar and Yankee Obligations
(cost: $75,958) 77,443
-----------
ASSET-BACKED SECURITIES (10.1%)
FINANCIALS (10.1%)
------------------
ASSET-BACKED FINANCING (10.1%)
407 Aerco Ltd.(c) 0.77 7/15/2025 382
4,000 AESOP Funding II, LLC(c) 0.48 3/20/2012 3,937
3,000 AESOP Funding II, LLC(c) 9.31 10/20/2013 3,377
5,000 AESOP Funding II, LLC 6.74 5/20/2016 5,071
2,000 American Express Credit Account Master Trust(c) 0.53 3/17/2014 1,974
3,000 American Express Credit Account Master Trust(c) 0.60 9/15/2016 2,875
5,000 AmeriCredit Automobile Receivables Trust 6.96 10/14/2014 5,327
2,000 Banc of America Securities Auto Trust 5.51 2/19/2013 2,005
3,000 Bank of America Auto Trust(c) 5.73 1/20/2013 3,202
4,405 Bank One Issuance Trust 4.77 2/16/2016 4,637
2,000 Bank One Issuance Trust 1.05(b) 2/15/2017 1,951
2,000 Cabela's Credit Card Master Note Trust(c) 5.26 10/15/2014 2,093
376 Capital One Auto Finance Trust 5.03 4/15/2012 378
================================================================================
11 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 862 Capital One Auto Finance Trust 5.13% 4/16/2012 $ 875
743 Capital One Auto Finance Trust 0.28(b) 5/15/2013 738
3,000 Capital One Multi-Asset Execution Trust 6.00 8/15/2013 3,060
1,567 Caterpillar Financial Asset Trust 4.94 4/25/2014 1,601
2,506 CenterPoint Energy Transition Bond Co. III, LLC 4.19 2/01/2020 2,680
4,906 Centre Point Funding, LLC(c) 5.43 7/20/2015 4,946
1,000 Citibank Credit Card Issuance Trust 6.95 2/18/2014 1,072
4,000 Citibank Credit Card Issuance Trust 6.30 6/20/2014 4,270
1,000 Citibank Credit Card Issuance Trust 5.50 3/24/2017 1,033
1,000 Citibank Credit Card Issuance Trust 5.65 9/20/2019 1,132
5,000 CPS Auto Receivables Trust (INS) 6.48 7/15/2013 5,151
5,000 Credit Acceptance Auto Loan Trust(c) 5.68 5/15/2017 5,177
354 Detroit Edison Securitization Funding, LLC 6.19 3/01/2013 366
2,000 Ford Credit Auto Owner Trust 2.00(b) 4/15/2013 2,044
1,000 GE Capital Credit Card Master Note Trust 0.26(b) 6/15/2013 1,000
1,000 GE Capital Credit Card Master Note Trust 0.29(b) 3/15/2015 984
5,000 GE Capital Credit Card Master Note Trust 4.47 3/15/2020 5,055
2,500 GE Dealer Floorplan Master Trust 0.27(b) 7/20/2012 2,497
881 GE Equipment Midticket, LLC 0.28(b) 10/15/2012 880
2,463 GE Equipment Midticket, LLC 0.40(b) 9/15/2017 2,416
2,000 Hertz Vehicle Financing, LLC(c) 5.08 11/25/2011 2,026
2,000 Hertz Vehicle Financing, LLC(c) 5.08 11/25/2011 2,026
3,000 Hertz Vehicle Financing, LLC(c) 4.26 3/25/2014 3,104
3,443 Huntington Auto Trust(c) 4.81 4/16/2012 3,511
2,000 Hyundai Auto Receivables Trust 5.48 11/17/2014 2,163
2,000 MBNA Master Credit Card Note Trust 6.80 7/15/2014 2,148
3,000 Nissan Auto Receivables Owner Trust 5.05 11/17/2014 3,199
7,500 Rental Car Finance Corp.(c) 0.40 7/25/2013 6,943
5,289 SLM Student Loan Trust 0.68(b) 4/25/2025 4,587
6,045 SLM Student Loan Trust 0.70(b) 4/25/2025 4,963
1,479 SLM Student Loan Trust 0.52(b) 10/27/2025 1,202
1,817 SLM Student Loan Trust 0.87(b) 10/25/2038 1,582
2,167 Trinity Rail Leasing, LP (INS) 5.27 8/14/2027 2,072
4,674 Trinity Rail Leasing, LP(c) 5.90 5/14/2036 4,325
852 USXL Funding, LLC (INS)(c) 5.38 4/15/2014 852
3,000 Wachovia Auto Owner Trust 5.35 3/20/2014 3,203
-----------
132,092
-----------
Total Financials 132,092
-----------
Total Asset-Backed Securities (cost: $123,523) 132,092
-----------
COMMERCIAL MORTGAGE SECURITIES (18.0%)
FINANCIALS (18.0%)
------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (17.5%)
2,000 Banc of America Commercial Mortgage, Inc. 6.22 1/10/2018 1,522
2,000 Banc of America Commercial Mortgage, Inc. 6.33 5/11/2035 2,037
2,000 Banc of America Commercial Mortgage, Inc. 6.97 4/15/2036 2,044
870 Banc of America Commercial Mortgage, Inc. 6.56 4/11/2037 761
2,000 Banc of America Commercial Mortgage, Inc. 4.50 7/10/2042 2,021
1,000 Banc of America Commercial Mortgage, Inc. 5.16 11/10/2042 940
1,000 Banc of America Commercial Mortgage, Inc. 5.16 11/10/2042 597
5,400 Banc of America Commercial Mortgage, Inc. 4.51 12/10/2042 5,559
2,000 Banc of America Commercial Mortgage, Inc. 4.77 7/10/2043 1,524
4,000 Banc of America Commercial Mortgage, Inc. 5.72 5/10/2045 4,250
7,523 Banc of America Commercial Mortgage, Inc. 5.18 10/10/2045 7,151
957 Banc of America Commercial Mortgage, Inc.(c) 4.96 9/10/2047 844
3,348 Banc of America Commercial Mortgage, Inc.(c) 5.10 9/10/2047 2,921
2,000 Banc of America Commercial Mortgage, Inc. 5.18 9/10/2047 1,959
1,000 BCRR Trust(c) 5.86 7/17/2040 864
1,500 Bear Stearns Commercial Mortgage Securities,
Inc.(c) 6.00 6/16/2030 1,433
================================================================================
Portfolio of Investments | 12
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 3,000 Bear Stearns Commercial Mortgage Securities, Inc. 5.46% 4/12/2038 $ 3,188
2,000 Bear Stearns Commercial Mortgage Securities, Inc. 5.53 10/12/2041 2,151
1,999 Bear Stearns Commercial Mortgage Securities, Inc. 4.82 2/13/2042 2,073
4,000 Chase Commercial Mortgage Securities Corp. 7.73 1/15/2032 4,003
1,620 Citigroup Commercial Mortgage Trust 4.83 5/15/2043 1,547
2,300 Citigroup Commercial Mortgage Trust 5.23 7/15/2044 2,405
1,000 Citigroup Commercial Mortgage Trust 5.23 7/15/2044 557
2,000 Citigroup Commercial Mortgage Trust(c) 4.83 9/20/2051 1,730
1,000 Commercial Mortgage Asset Trust 7.64 11/17/2032 969
5,000 Commercial Mortgage Trust 5.54 2/11/2017 4,920
3,000 Commercial Mortgage Trust 4.58 10/15/2037 3,017
3,988 Commercial Mortgage Trust(c) 5.65 3/03/2041 3,390
5,000 Commercial Mortgage Trust 5.12 6/10/2044 5,153
2,500 Credit Suisse First Boston Mortgage Capital 5.55 2/15/2039 2,600
3,525 Credit Suisse First Boston Mortgage Securities
Corp.(c) 6.65 12/18/2035 3,552
618 Credit Suisse First Boston Mortgage Securities
Corp. 4.30 7/15/2036 619
4,000 Credit Suisse First Boston Mortgage Securities
Corp. 5.11 7/15/2036 4,170
2,000 Credit Suisse First Boston Mortgage Securities
Corp. 4.92 4/15/2037 1,256
3,000 Credit Suisse First Boston Mortgage Securities
Corp. 5.10 8/15/2038 3,116
1,555 Credit Suisse First Boston Mortgage Securities
Corp. 5.10 8/15/2038 1,515
1,000 Credit Suisse First Boston Mortgage Securities
Corp. 4.82 10/15/2039 549
85 Credit Suisse First Boston Mortgage Securities
Corp. 7.17 5/17/2040 86
3,988 Credit Suisse First Boston Mortgage Securities
Corp. 5.21 12/15/2040 3,989
2,000 Credit Suisse First Boston Mortgage Securities
Corp. 5.23 12/15/2040 940
1,592 Deutsche Mortgage & Asset Receiving Corp. 7.50 6/15/2031 1,681
432 G-Force, LLC(c) 4.39 8/22/2036 411
1,500 GE Capital Commercial Mortgage Corp.(c) 5.34 12/10/2037 1,427
2,200 GE Capital Commercial Mortgage Corp. 6.26 6/10/2038 2,248
1,000 GE Capital Commercial Mortgage Corp. 5.33 11/10/2045 513
1,200 GE Commercial Mortgage Corp. 5.33 11/10/2045 1,239
1,531 GE Commercial Mortgage Corp. 4.35 6/10/2048 1,560
455 GMAC Commercial Mortgage Securities, Inc. 6.98 5/15/2033 451
2,000 GMAC Commercial Mortgage Securities, Inc. 6.50 5/15/2035 2,018
1,500 GMAC Commercial Mortgage Securities, Inc. 5.04 12/10/2041 539
2,829 GMAC Commercial Mortgage Securities, Inc. 4.81 5/10/2043 2,498
2,000 Greenwich Capital Commercial Funding Corp. 5.44 3/10/2039 2,005
1,662 GS Mortgage Securities Corp. II(c) 6.04 8/15/2018 1,712
2,000 GS Mortgage Securities Corp. II 5.53 8/10/2038 1,408
5,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.82 9/12/2037 5,054
4,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.99 9/12/2037 3,530
1,429 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.32 1/12/2043 1,385
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.49 4/15/2043 2,118
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.79 6/12/2043 2,100
5,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.42 12/12/2043 5,311
3,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.18 12/15/2044 3,133
================================================================================
13 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 2,025 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.30% 12/15/2044 $ 1,880
4,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.87 4/15/2045 4,280
1,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.37 5/15/2045 1,049
2,110 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.63 3/15/2046 2,188
1,000 LB-UBS Commercial Mortgage Trust(c) 6.83 7/14/2016 1,022
4,220 LB-UBS Commercial Mortgage Trust 4.51 12/15/2029 4,206
3,400 LB-UBS Commercial Mortgage Trust 5.47 11/15/2030 3,549
3,000 LB-UBS Commercial Mortgage Trust 5.22 2/15/2031 2,885
3,000 LB-UBS Commercial Mortgage Trust 5.64 3/15/2032 3,174
2,000 LB-UBS Commercial Mortgage Trust 5.23 4/15/2040 1,354
3,000 Machine One Trust(c) 5.22 5/28/2040 2,961
2,000 Merrill Lynch Mortgage Trust 5.23 11/12/2037 1,750
2,000 Merrill Lynch Mortgage Trust 5.10 7/12/2038 1,165
2,000 Merrill Lynch Mortgage Trust 4.86 10/12/2041 2,037
2,285 Merrill Lynch Mortgage Trust 4.92 10/12/2041 1,832
4,000 Merrill Lynch Mortgage Trust 5.76 8/12/2043 4,187
2,000 Merrill Lynch Mortgage Trust 5.38 1/12/2044 1,108
2,900 Merrill Lynch Mortgage Trust 5.38 8/12/2048 2,641
2,000 Merrill Lynch Mortgage Trust(c) 6.27 2/12/2051 395
2,000 Merrill Lynch Mortgage Trust 6.27 2/12/2051 1,219
2,000 Merrill Lynch-Countrywide Commercial
Mortgage Trust 5.92 6/12/2046 1,624
2,000 Merrill Lynch-Countrywide Commercial
Mortgage Trust 5.38 7/12/2046 2,090
4,000 Morgan Stanley Capital I, Inc. 5.80 8/12/2041 4,335
4,600 Morgan Stanley Capital I, Inc. 5.69 7/12/2044 4,909
3,445 Morgan Stanley Capital I, Inc. 4.89 6/12/2047 3,597
2,000 Morgan Stanley Capital I, Inc. 4.77 7/15/2056 1,754
4,839 Morgan Stanley Dean Witter Capital I, Inc.(c) 5.13 5/24/2043 4,512
3,000 Mortgage Capital Funding, Inc. 7.09 6/18/2030 2,993
3,213 Prudential Securities Secured Financing Corp. 6.76 6/16/2031 3,253
1,000 SBA Commercial Mortgage-Backed Trust(c) 5.56 11/15/2036 1,031
1,371 Structured Asset Securities Corp. 7.15 10/12/2034 1,404
2,000 Timberstar Trust(c) 5.75 10/15/2036 2,032
2,000 Wachovia Bank Commercial Mortgage Trust 5.08 3/15/2042 2,090
2,000 Wachovia Bank Commercial Mortgage Trust 4.81 4/15/2042 2,099
4,860 Wachovia Bank Commercial Mortgage Trust 5.18 7/15/2042 4,420
5,000 Wachovia Bank Commercial Mortgage Trust 5.50 10/15/2048 5,084
-----------
228,372
-----------
ESCROWED BONDS (0.2%)
1,000 GS Mortgage Securities Corp. II 6.62 5/03/2018 1,022
2,000 Hilton Hotels Pool Trust(c) 7.46 10/03/2015 2,051
-----------
3,073
-----------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (0.3%)
24,955 Credit Suisse First Boston Mortgage Securities
Corp., acquired 8/30/2004; cost
$1,080(c),(f) 1.13 1/15/2037 226
24,577 Credit Suisse First Boston Mortgage Securities
Corp., acquired 6/17/2003 & 12/05/2007;
cost $1,168(c),(f) 1.89 5/15/2038 56
63,828 GS Mortgage Securities Corp. II, acquired
5/13/2004; cost $960(c),(f) 0.37 5/03/2018 162
35,852 J.P. Morgan Chase Commercial Mortgage
Securities Corp., acquired 8/05/2009; cost
$466(c),(f) 0.89 1/12/2037 366
53,083 LB-UBS Commercial Mortgage Trust, acquired
8/05/2009; cost $807(c),(f) 1.23 3/15/2036 535
128,981 LB-UBS Commercial Mortgage Trust, acquired
7/22/2009; cost $1,663(c),(f) 0.92 10/15/2036 1,406
================================================================================
Portfolio of Investments | 14
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
$ 6,398 LB-UBS Commercial Mortgage Trust, acquired
7/16/2003; cost $323(c),(f) 0.75% 4/15/2037 $ 12
11,027 Morgan Stanley Capital I, Inc., acquired
1/23/2004; cost $600(c),(f) 1.03 9/13/2045 142
48,604 Morgan Stanley Capital I, Inc., acquired
8/05/2009; cost $720(c),(f) 0.57 6/12/2047 687
-----------
3,592
-----------
Total Financials 235,037
-----------
Total Commercial Mortgage Securities (cost: $237,221) 235,037
-----------
U.S. GOVERNMENT AGENCY ISSUES (0.5%)(g)
COLLATERALIZED MORTGAGE OBLIGATIONS (0.2%)
2,000 Freddie Mac (+) 4.50 1/15/2029 2,099
652 Freddie Mac (+) 6.00 2/15/2013 663
-----------
2,762
-----------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED
SECURITIES (0.0%)
3,171 Government National Mortgage Assn. 1.75 7/16/2010 40
-----------
MORTGAGE-BACKED PASS-THROUGH SECURITIES (0.3%)
1,483 Freddie Mac (+) 5.00 9/01/2020 1,582
1,879 Freddie Mac (+) 5.50 4/01/2036 1,989
-----------
3,571
-----------
Total U.S. Government Agency Issues (cost: $5,970) 6,373
-----------
U.S. TREASURY SECURITIES (1.6%)
INFLATION-INDEXED NOTES (0.8%)
9,675 2.38%, 1/15/2027 10,547
-----------
NOTES (0.8%)
10,000 3.63%, 2/15/2020 9,972
-----------
Total U.S. Treasury Securities (cost: $20,336) 20,519
-----------
MUNICIPAL BONDS (2.6%)
AIRPORT/PORT (0.4%)
2,000 College Park (INS) 5.76 1/01/2015 2,037
1,745 Metropolitan Nashville Airport Auth. 5.14 7/01/2018 1,771
1,695 Riverside (INS) 5.19 8/01/2017 1,622
-----------
5,430
-----------
APPROPRIATED DEBT (0.2%)
1,500 Kentucky State Property and Buildings
Commission 4.08 11/01/2015 1,535
930 Reeves County (INS) 5.75 3/01/2012 929
-----------
2,464
-----------
CASINOS & GAMING (0.2%)
1,000 Mashantucket (Western) Pequot Tribe, acquired
7/29/2005; cost $1,000(c),(e),(f) 5.91 9/01/2021 534
2,715 Seneca Nation of Indians Capital Improvements
Auth. 6.75 12/01/2013 2,588
-----------
3,122
-----------
================================================================================
15 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
-------------------------------------------------------------------------------------------------------
EDUCATION (0.2%)
$ 1,680 California State Univ. (INS) 5.27% 11/01/2017 $ 1,707
1,000 Univ. of Oklahoma 5.25 11/01/2019 1,030
-----------
2,737
-----------
ELECTRIC UTILITIES (0.2%)
2,000 American Municipal Power, Inc. 3.82 2/15/2014 2,061
-----------
ELECTRIC/GAS UTILITIES (0.1%)
1,000 North Carolina Eastern Municipal Power Agency 5.23 1/01/2011 1,026
-----------
GENERAL OBLIGATION (0.1%)
1,000 Riverside (INS) 4.21 2/15/2011 1,019
-----------
HOSPITAL (0.1%)
1,000 Medical Univ. (INS) 5.01 2/15/2015 1,009
-----------
MISCELLANEOUS (0.1%)
812 Keenan Dev. Association of Tennessee, LLC
(INS) 5.02 7/15/2028 713
-----------
MULTIFAMILY HOUSING (0.1%)
1,080 American Eagle Northwest, LLC 4.97 12/15/2018 1,082
-----------
NURSING/CCRC (0.1%)
1,660 Statewide Communities Dev. Auth. (INS) 5.59 2/01/2015 1,575
-----------
SPECIAL ASSESSMENT/TAX/FEE (0.7%)
1,565 Erie County Tobacco Asset Securitization Corp. 6.00 6/01/2028 1,337
2,000 Florida State Department of Environmental
Protection 5.76 7/01/2020 2,068
3,000 Metropolitan Transportation Auth. 5.20 11/15/2018 3,022
1,000 New York State Housing Finance Agency 5.19 9/15/2011 1,062
2,000 New York State Urban Dev. Corp. (INS) 4.38 12/15/2011 2,118
-----------
9,607
-----------
WATER/SEWER UTILITY (0.1%)
1,885 Escondido Joint Powers Financing Auth. (INS) 5.53 9/01/2018 1,845
-----------
Total Municipal Bonds (cost: $34,256) 33,690
-----------
PRINCIPAL
AMOUNT
$(000)/
SHARES
-------------------------------------------------------------------------------------------------------
PREFERRED SECURITIES (1.4%)
CONSUMER STAPLES (0.6%)
----------------------
AGRICULTURAL PRODUCTS (0.6%)
105,000 Dairy Farmers of America, Inc., 7.88%, cumulative redeemable, perpetual(c) $ 8,485
-----------
FINANCIALS (0.6%)
-----------------
DIVERSIFIED BANKS (0.1%)
50,000 HSBC Holdings, 6.20%, perpetual* 1,129
-----------
================================================================================
Portfolio of Investments | 16
<PAGE>
================================================================================
PRINCIPAL
AMOUNT MARKET
$(000)/ VALUE
SHARES SECURITY (000)
-------------------------------------------------------------------------------------------------------
LIFE & HEALTH INSURANCE (0.1%)
100,000 Delphi Financial Group, Inc., 7.38%, perpetual $ 2,136
-----------
PROPERTY & CASUALTY INSURANCE (0.0%)
$ 3,000 Security Capital Assurance Ltd., 6.88%, perpetual*(h) --
-----------
REINSURANCE (0.2%)
2,000 Ram Holdings Ltd., 7.50%, non-cumulative, perpetual , acquired 1/23/2007 &
3/02/2007; cost $2,058*(f) 400
$ 2,000 Swiss Re Capital I LP, 6.85%, perpetual(c) 1,859
-----------
2,259
-----------
REITs - INDUSTRIAL (0.1%)
30,000 AMB Property Corp., Series C, 7.00%, cumulative redeemable, perpetual 734
-----------
REITs - SPECIALIZED (0.1%)
40,000 Public Storage, Inc., 7.00%, perpetual 1,003
-----------
Total Financials 7,261
-----------
GOVERNMENT (0.0%)
-----------------
U.S. GOVERNMENT (0.0%)
80,000 Fannie Mae, 8.25%, perpetual* 110
80,000 Freddie Mac, 8.38%, perpetual* 128
-----------
238
-----------
Total Government 238
-----------
TELECOMMUNICATION SERVICES (0.2%)
---------------------------------
WIRELESS TELECOMMUNICATION SERVICES (0.2%)
2,000 Centaur Funding Corp., 9.08%(c) 2,206
-----------
Total Preferred Securities (cost: $26,927) 18,190
-----------
PRINCIPAL
AMOUNT COUPON
(000) RATE MATURITY
-------------------------------------------------------------------------------------------------------
MONEY MARKET INSTRUMENTS (0.8%)
COMMERCIAL PAPER (0.2%)
INDUSTRIALS (0.2%)
------------------
INDUSTRIAL MACHINERY (0.2%)
$ 1,729 Eaton Corp.(c) ,(i) 0.28% 5/03/2010 1,729
-----------
VARIABLE-RATE DEMAND NOTES (0.6%)
HEALTH CARE (0.2%)
------------------
HEALTH CARE FACILITIES (0.2%)
3,130 Albany IDA (LOC - RBS Citizens, N.A.) 0.80 5/01/2035 3,130
-----------
MUNICIPAL BONDS (0.4%)
----------------------
DIVERSIFIED CHEMICALS (0.4%)
5,000 West Baton Rouge Parish 0.85 12/01/2024 5,000
-----------
================================================================================
17 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
Total Variable-Rate Demand Notes 8,130
-----------
Total Money Market Instruments
(cost: $9,859) 9,859
-----------
TOTAL INVESTMENTS (COST: $1,222,122) $ 1,282,711
-----------
VALUATION HIERARCHY
($ IN 000s) -------------------
(LEVEL 1)
QUOTED PRICES (LEVEL 2)
IN ACTIVE OTHER (LEVEL 3)
MARKETS SIGNIFICANT SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
ASSETS ASSETS INPUTS INPUTS TOTAL
--------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS $ -- $ 749,508 $ -- $ 749,508
EURODOLLAR AND YANKEE
OBLIGATIONS -- 77,443 -- 77,443
ASSET-BACKED SECURITIES -- 132,092 -- 132,092
COMMERCIAL MORTGAGE SECURITIES -- 235,037 -- 235,037
U.S. GOVERNMENT AGENCY ISSUES -- 6,373 -- 6,373
U.S. TREASURY SECURITIES 20,519 -- -- 20,519
MUNICIPAL BONDS -- 33,690 -- 33,690
EQUITY SECURITIES:
PREFERRED SECURITIES 128 18,062 -- 18,190
MONEY MARKET INSTRUMENTS:
COMMERCIAL PAPER -- 1,729 -- 1,729
VARIABLE-RATE DEMAND NOTES -- 8,130 -- 8,130
--------------------------------------------------------------------------------------------------
Total $ 20,647 $ 1,262,064 $ -- $ 1,282,711
--------------------------------------------------------------------------------------------------
Reconciliation of investments in which significant unobservable inputs (Level 3)
were used in determining value:
CORPORATE OBLIGATIONS ASSET-BACKED SECURITIES
--------------------------------------------------------------------------------------------------
Balance as of July 31, 2009 $ 1,555 $4,566
Net realized gain (loss) (244) -
Change in net unrealized
appreciation/depreciation 1,944 1,021
Net purchases (sales) (1,765) (138)
Transfers in and/or out of Level 3 (1,490) (5,449)
--------------------------------------------------------------------------------------------------
Balance as of April 30, 2010 $- $-
--------------------------------------------------------------------------------------------------
================================================================================
Portfolio of Investments | 18
<PAGE>
================================================================================
NOTES TO PORTFOLIO OF INVESTMENTS
April 30, 2010 (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
Intermediate-Term Bond Fund (the Fund), which is classified as diversified under
the 1940 Act.
The Fund has two classes of shares: Intermediate-Term Bond Fund Shares and
Intermediate-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. 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 is generally used.
================================================================================
19 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
3. Investments in open-end investment companies, hedge, or other funds, other
than ETFs, are valued at their 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. Futures are valued based upon the last sale price at the close of market on
the principal exchange on which they are traded.
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.
For the securities valued using significant unobservable inputs, market
quotations were not available from the pricing services. As such, the securities
were valued in good faith using methods determined by the Manager, under
valuation procedures approved by the Trust's Board of Trustees.
================================================================================
Notes to Portfolio of Investments | 20
<PAGE>
================================================================================
The fair value methods included using inputs such as market quotations obtained
from the broker-dealers from which the Fund purchased the securities. Refer to
the portfolio of investments for a reconciliation of investments in which
significant unobservable inputs (Level 3) were used in determining value.
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 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.
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 - Events or transactions that occur after the quarterly
report date, but before the quarterly report is issued are categorized as
recognized or non-recognized for quarterly report purposes. The Manager has
evaluated subsequent events through the date the quarterly report was issued,
and has determined there were no events that require recognition or disclosure
in the Fund's quarterly report.
F. NEW ACCOUNTING PRONOUNCEMENT - In January 2010, the Financial Accounting
Standards Board issued amended guidance for improving disclosures about fair
value measurements that adds new disclosure requirements about significant
transfers between Level 1, Level 2, and Level 3, and separate disclosures about
purchases, sales, issuances, and settlements in the reconciliation for fair
value measurements using significant unobservable inputs (Level 3). It also
clarifies existing disclosure requirements relating to the levels of
disaggregation for fair value measurement and inputs and valuation techniques
used to measure fair value. The amended guidance is effective for financial
statements for fiscal years and interim periods beginning after December 15,
2009, except for disclosures about purchases, sales, issuances and settlements
in the rollforward of activity in Level 3 fair value measurements, which are
effective for fiscal years beginning after December 15,
================================================================================
21 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
2010, and for interim periods within those fiscal years. The Manager is in the
process of evaluating the impact of this guidance on the Fund's financial
statement disclosures.
G. As of April 30, 2010, 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
April 30, 2010, were $92,652,000 and $32,063,000, respectively, resulting in net
unrealized appreciation of $60,589,000.
H. The portfolio of investments category percentages shown represent the
percentages of the investments to net assets, which were $1,305,264,000 at April
30, 2010, and, in total, may not equal 100%. A category percentage of 0.0%
represents less than 0.1% of net assets. Investments in foreign securities were
5.7% of net assets at April 30, 2010.
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. Rates on commercial mortgage-backed securities may change slightly
over time as underlying mortgages pay down.
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.
U.S. TREASURY INFLATION-INDEXED NOTES - designed to provide a real rate of
return after being adjusted over time to reflect the impact of inflation. Their
principal value periodically adjusts to the rate of inflation. They trade at the
prevailing real, or after-inflation, interest rates. The U.S. Treasury
guarantees repayment of these securities of at least their face value in the
event of sustained deflation or a drop in prices. Inflation adjustments to the
face value of these securities are included in interest income.
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,
================================================================================
Notes to Portfolio of Investments | 22
<PAGE>
================================================================================
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
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.,
Assured Guaranty Ltd., Assured Guaranty Municipal Corp.,
Financial Guaranty Insurance Co., National Public Finance
Guarantee Corp., Radian Asset Assurance, Inc., or XL Capital
Assurance. 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) 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 April 30, 2010. 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.
(b) Variable-rate or floating-rate security - interest rate is adjusted
periodically. The interest rate disclosed represents the current rate
at April 30, 2010.
(c) 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 USAA Investment
Management Company (the Manager) under liquidity guidelines approved by
the Trust's Board of Trustees, unless otherwise noted as illiquid.
(d) Security is perpetual and has no final maturity date but may be subject
to calls at various dates in the future.
(e) Currently the issuer is in default with respect to interest and/or
principal payments.
================================================================================
23 | USAA Intermediate-Term Bond Fund
<PAGE>
================================================================================
(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 April 30, 2010, was $4,526,000, which
represented 0.3% 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) Security was fair valued at April 30, 2010, by the Manager in
accordance with valuation procedures approved by the Trust's Board of
Trustees.
(i) Commercial paper issued in reliance on the "private placement"
exemption from registration afforded by Section 4(2) of the Securities
Act of 1933. Unless this commercial paper is subsequently registered, a
resale of this commercial paper in the United States must be effected
in a transaction exempt from registration under the Securities Act of
1933. Section 4(2) commercial paper is normally resold to other
investors through or with the assistance of the issuer or an investment
dealer who makes a market in this security, and as such has been deemed
liquid by the Manager under liquidity guidelines approved by the
Trust's Board of Trustees, unless otherwise noted as illiquid.
* Non-income-producing security.
================================================================================
Notes to Portfolio of Investments | 24
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 April 30, 2010
By:* /s/ CHRISTOPHER P. LAIA
--------------------------------------------------------------
Signature and Title: Christopher P. Laia, Secretary
Date: 06/23/2010
-------------------------------
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: 06/23/2010
------------------------------
By:* /s/ ROBERTO GALINDO, JR.
-----------------------------------------------------
Signature and Title: Roberto Galindo, Jr., Treasurer
Date: 06/23/2010
------------------------------
*PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.
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