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 SHORT-TERM BOND FUND - 3RD QUARTER REPORT - PERIOD ENDED APRIL 30, 2010
[LOGO OF USAA]
USAA (R)
PORTFOLIO OF INVESTMENTS
3(RD) QUARTER
USAA SHORT-TERM BOND FUND
APRIL 30, 2010
(Form N-Q)
48482-0610 (C)2010, USAA. All rights reserved.
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PORTFOLIO OF INVESTMENTS
USAA SHORT-TERM BOND FUND
April 30, 2010 (unaudited)
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (31.0%)
COMMERCIAL SERVICES AND SUPPLIES (0.1%)
---------------------------------------
DIVERSIFIED SUPPORT SERVICES (0.1%)
$ 2,000 Brambles USA, Inc. (a) 3.95% 4/01/2015 $ 2,027
-----------
CONSUMER DISCRETIONARY (1.9%)
-----------------------------
AUTOMOTIVE RETAIL (0.1%)
1,000 AutoZone, Inc. 5.88 10/15/2012 1,081
-----------
BROADCASTING (0.4%)
1,000 Cox Communications, Inc. 7.75 11/01/2010 1,032
5,000 NBC Universal (a) 3.65 4/30/2015 5,054
-----------
6,086
-----------
CABLE & SATELLITE (0.4%)
5,157 Comcast Cable Communications, Inc. 6.75 1/30/2011 5,372
1,000 Time Warner Cable, Inc. 8.25 2/14/2014 1,181
-----------
6,553
-----------
DEPARTMENT STORES (0.3%)
5,000 Macy's Retail Holdings, Inc. 6.63 4/01/2011 5,237
-----------
HOME IMPROVEMENT RETAIL (0.1%)
2,000 Home Depot, Inc. 5.20 3/01/2011 2,071
-----------
HOUSEWARES & SPECIALTIES (0.3%)
5,000 Fortune Brands, Inc. 3.00 6/01/2012 5,051
-----------
LEISURE PRODUCTS (0.2%)
3,000 Mattel, Inc. 5.63 3/15/2013 3,234
-----------
SPECIALTY STORES (0.1%)
2,000 Staples, Inc. 7.75 4/01/2011 2,113
-----------
Total Consumer Discretionary 31,426
-----------
CONSUMER STAPLES (1.6%)
-----------------------
AGRICULTURAL PRODUCTS (0.4%)
3,000 Bunge Limited Finance Co. 7.80 10/15/2012 3,345
3,000 Cargill, Inc. (a) 5.20 1/22/2013 3,199
-----------
6,544
-----------
BREWERS (0.2%)
2,000 Anheuser-Busch Companies, Inc. 3.00 10/15/2012 2,058
2,000 Anheuser-Busch Companies, Inc. (a) 7.20 1/15/2014 2,304
-----------
4,362
-----------
DRUG RETAIL (0.1%)
2,000 Walgreen Co. 4.88 8/01/2013 2,188
-----------
PACKAGED FOODS & MEAT (0.3%)
2,000 ConAgra Foods, Inc. 5.88 4/15/2014 2,224
1,000 Kraft Foods, Inc. 5.25 10/01/2013 1,084
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1 | USAA Short-Term Bond Fund
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 1,000 Kraft Foods, Inc. 6.75% 2/19/2014 $ 1,136
-----------
4,444
-----------
SOFT DRINKS (0.6%)
1,000 Bottling Group, LLC 6.95 3/15/2014 1,165
2,000 Coca Cola Enterprises, Inc. 3.75 3/01/2012 2,097
1,000 Coca Cola Enterprises, Inc. 7.38 3/03/2014 1,179
3,000 Dr Pepper Snapple Group, Inc. 1.70 12/21/2011 3,013
2,000 PepsiAmericas, Inc. 4.38 2/15/2014 2,135
-----------
9,589
-----------
Total Consumer Staples 27,127
-----------
ENERGY (3.5%)
-------------
INTEGRATED OIL & GAS (0.6%)
4,000 Chevron Corp. 3.45 3/03/2012 4,187
1,000 Hess Corp. 7.00 2/15/2014 1,150
1,425 Louisiana Land and Exploration Co. 7.63 4/15/2013 1,608
3,000 Marathon Oil Corp. 6.50 2/15/2014 3,389
-----------
10,334
-----------
OIL & GAS EQUIPMENT & SERVICES (0.1%)
1,000 Baker Hughes, Inc. 6.50 11/15/2013 1,150
-----------
OIL & GAS EXPLORATION & PRODUCTION (0.6%)
3,000 Apache Corp. 5.25 4/15/2013 3,272
3,000 Apache Finance Canada Corp. 4.38 5/15/2015 3,198
2,000 Devon Energy Corp. 5.63 1/15/2014 2,207
1,000 XTO Energy, Inc. 5.00 8/01/2010 1,011
1,000 XTO Energy, Inc. 4.63 6/15/2013 1,075
-----------
10,763
-----------
OIL & GAS REFINING & MARKETING (0.1%)
2,000 Valero Energy Corp. 6.88 4/15/2012 2,173
-----------
OIL & GAS STORAGE & TRANSPORTATION (2.1%)
1,000 DCP Midstream, LLC (a) 9.70 12/01/2013 1,219
1,000 Duke Energy Field Services, LLC 7.88 8/16/2010 1,020
2,000 Enbridge Energy Partners, LP 9.88 3/01/2019 2,652
1,000 Energy Transfer Partners, LP 6.00 7/01/2013 1,093
1,000 Energy Transfer Partners, LP 9.70 3/15/2019 1,294
3,000 Enterprise Products Operating, LP 4.60 8/01/2012 3,169
1,105 Enterprise Products Operating, LP 6.13 2/01/2013 1,205
1,000 Enterprise Products Operating, LP 5.90 4/15/2013 1,090
2,002 Kern River Funding Corp. (a) 6.68 7/31/2016 2,159
2,000 Kinder Morgan Energy Partners, LP 6.75 3/15/2011 2,093
2,000 NGPL PipeCo, LLC 6.51 12/15/2012 2,199
5,000 Spectra Energy Capital, LLC 5.90 9/15/2013 5,485
2,000 Sunoco Logistics Partners Operations, LP 8.75 2/15/2014 2,333
2,000 Valero Logistics 6.88 7/15/2012 2,169
5,000 Williams Companies, Inc. (a) 6.38 10/01/2010 5,080
-----------
34,260
-----------
Total Energy 58,680
-----------
FINANCIALS (10.9%)
------------------
ASSET MANAGEMENT & CUSTODY BANKS (0.1%)
2,000 State Street Corp. 2.15 4/30/2012 2,042
-----------
CONSUMER FINANCE (1.1%)
2,000 American Express Credit Corp. 5.88 5/02/2013 2,188
1,000 American Honda Finance Corp. (a) 6.70 10/01/2013 1,118
5,000 American Honda Finance Corp. (a) 3.50 3/16/2015 5,020
10,000 GMAC LLC 2.20 12/19/2012 10,192
-----------
18,518
-----------
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Portfolio of Investments | 2
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
DIVERSIFIED BANKS (0.4%)
$ 1,000 First Tennessee Bank, N.A. 4.63% 5/15/2013 $ 974
5,000 Wells Fargo & Co. 3.63 4/15/2015 5,082
-----------
6,056
-----------
LIFE & HEALTH INSURANCE (2.5%)
1,000 Blue Cross Blue Shield, Inc. 8.25 11/15/2011 1,081
2,000 Genworth Life Institutional Funding Trust (a) 5.88 5/03/2013 2,097
2,000 Jackson National Life Global Funding (a) 5.38 5/08/2013 2,147
3,000 MetLife Global Funding I (a) 0.29 (b) 5/17/2010 3,000
3,000 MetLife Global Funding I (a) 0.70 (b) 7/13/2011 2,997
2,000 MetLife Global Funding I (a) 5.75 7/25/2011 2,094
5,000 MetLife Global Funding I (a) 2.88 9/17/2012 5,099
1,000 MetLife Global Funding I (a) 5.13 4/10/2013 1,077
1,000 MetLife Global Funding I (a) 5.13 6/10/2014 1,083
5,000 New York Life Global Funding (a) 3.00 5/04/2015 4,987
3,000 Pricoa Global Funding I (a) 5.45 6/11/2014 3,239
1,500 Principal Life Global Funding I 6.25 2/15/2012 1,603
4,000 Principal Life Income Fundings Trust 5.15 6/17/2011 4,132
2,000 Principal Life Income Fundings Trust 5.15 9/30/2011 2,077
2,000 Principal Life Income Fundings Trust 5.30 12/14/2012 2,161
2,000 Prudential Financial, Inc. 5.15 1/15/2013 2,130
-----------
41,004
-----------
MULTI-LINE INSURANCE (0.7%)
2,000 AIG Sunamerica Global Financing (a) 6.30 5/10/2011 2,054
3,000 Genworth Global Funding Trust 5.20 10/08/2010 3,049
2,000 Hartford Financial Services Group, Inc. 4.75 3/01/2014 2,072
4,000 Hartford Life Global Funding Trust 0.40 (b) 1/17/2012 3,947
-----------
11,122
-----------
OTHER DIVERSIFIED FINANCIAL SERVICES (1.7%)
5,000 Citibank, N.A. 1.75 12/28/2012 5,037
5,000 Citigroup Funding, Inc. 1.88 10/22/2012 5,057
10,000 Citigroup, Inc. 2.13 4/30/2012 10,206
2,000 Citigroup, Inc. 5.30 10/17/2012 2,103
5,000 JP Morgan Chase & Co. 0.90 (b) 2/26/2013 5,018
584 ZFS Finance USA Trust IV (a) 5.88 5/09/2032 560
-----------
27,981
-----------
PROPERTY & CASUALTY INSURANCE (0.5%)
2,000 Allstate Life Global Funding Trust 5.38 4/30/2013 2,197
5,000 Berkshire Hathaway Finance Corp.(c) 4.20 12/15/2010 5,111
1,500 RLI Corp. 5.95 1/15/2014 1,543
-----------
8,851
-----------
REGIONAL BANKS (0.6%)
2,000 BB&T Corp. 3.38 9/25/2013 2,063
2,000 BB&T Corp. 3.95 4/29/2016 2,011
2,000 Chittenden Corp. 5.80 2/14/2017 1,989
2,000 Cullen/Frost Bankers, Inc. 5.75 2/15/2017 1,896
2,000 Susquehanna Bancshares, Inc. 2.07 (b) 5/01/2014 1,512
-----------
9,471
-----------
REITs - DIVERSIFIED (0.4%)
3,000 Liberty Property, LP 7.25 3/15/2011 3,126
3,000 WEA Finance, LLC (a) 5.40 10/01/2012 3,209
-----------
6,335
-----------
REITs - INDUSTRIAL (0.2%)
2,000 AMB Property, LP 6.30 6/01/2013 2,148
2,000 ProLogis 2.25 4/01/2037 1,940
-----------
4,088
-----------
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3 | USAA Short-Term Bond Fund
<PAGE>
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
REITs - OFFICE (0.4%)
$ 2,000 Boston Properties, LP 6.25% 1/15/2013 $ 2,177
2,000 Duke Realty, LP 5.63 8/15/2011 2,068
1,700 Mack-Cali Realty, LP 7.75 2/15/2011 1,771
-----------
6,016
-----------
REITs - RESIDENTIAL (0.9%)
878 AvalonBay Communities, Inc. 6.63 9/15/2011 935
2,000 AvalonBay Communities, Inc. 5.50 1/15/2012 2,109
5,000 Camden Property Trust 5.88 11/30/2012 5,370
1,000 ERP Operating, LP 6.63 3/15/2012 1,085
2,000 ERP Operating, LP 5.50 10/01/2012 2,152
3,000 United Dominion Realty Trust 5.25 1/15/2015 3,051
-----------
14,702
-----------
REITs - RETAIL (1.0%)
2,000 Equity One, Inc. 6.25 12/15/2014 2,096
2,000 Federal Realty Investment Trust 6.00 7/15/2012 2,139
1,000 Kimco Realty Corp. 6.00 11/30/2012 1,089
1,000 Regency Centers, LP 6.75 1/15/2012 1,053
2,615 Simon Property Group, LP 7.75 1/20/2011 2,698
2,000 Simon Property Group, LP 5.60 9/01/2011 2,074
3,000 Simon Property Group, LP 5.30 5/30/2013 3,219
3,000 Weingarten Realty Investors 5.26 5/15/2012 3,120
-----------
17,488
-----------
REITs - SPECIALIZED (0.3%)
1,000 Health Care Property Investors, Inc. 5.95 9/15/2011 1,049
1,000 Health Care Property Investors, Inc. 5.63 2/28/2013 1,048
2,950 Nationwide Health Properties, Inc. 6.90 10/01/2037 3,033
-----------
5,130
-----------
THRIFTS & MORTGAGE FINANCE (0.1%)
2,255 Sovereign Bank 2.11 (b) 4/01/2014 2,209
-----------
Total Financials 181,013
-----------
GOVERNMENT (0.6%)
-----------------
U.S. GOVERNMENT (0.6%)(d)
5,000 US Central Federal Credit Union 1.25 10/19/2011 5,031
5,000 US Central Federal Credit Union 1.90 10/19/2012 5,065
-----------
10,096
-----------
Total Government 10,096
-----------
HEALTH CARE (1.6%)
------------------
HEALTH CARE EQUIPMENT (0.1%)
2,000 Covidien International Finance S.A. 5.45 10/15/2012 2,184
-----------
PHARMACEUTICALS (1.5%)
2,000 Abbott Laboratories 5.15 11/30/2012 2,190
3,000 Eli Lilly & Co. 3.55 3/06/2012 3,133
1,000 Merck & Co., Inc. 1.88 6/30/2011 1,014
5,000 Novartis Capital Corp. 2.90 4/24/2015 5,035
9,400 Pfizer, Inc.(c) 4.45 3/15/2012 9,959
3,000 Roche Holdings, Inc. (a) 4.50 3/01/2012 3,172
-----------
24,503
-----------
Total Health Care 26,687
-----------
INDUSTRIALS (2.2%)
------------------
AEROSPACE & DEFENSE (0.4%)
2,011 BAE Systems Asset Trust (a) 6.66 9/15/2013 2,117
3,000 BAE Systems Holdings, Inc. 6.40 12/15/2011 3,205
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Portfolio of Investments | 4
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 2,000 General Dynamics Corp. 1.80% 7/15/2011 $ 2,017
-----------
7,339
-----------
AIR FREIGHT & LOGISTICS (0.4%)
1,295 Federal Express Corp. 7.50 1/15/2018 1,320
2,000 FedEx Corp. 7.38 1/15/2014 2,312
2,000 United Parcel Service 3.88 4/01/2014 2,116
-----------
5,748
-----------
AIRLINES (0.4%)
112 Airplanes Pass-Through Trust 0.63 (b) 3/15/2019 107
2,085 American Airlines, Inc. Pass-Through Trust
(INS) 3.86 7/09/2010 2,090
2,000 Southwest Airlines Co. 6.50 3/01/2012 2,133
1,426 United Airlines, Inc. Pass-Through Trust 7.78 1/01/2014 1,472
-----------
5,802
-----------
BUILDING PRODUCTS (0.1%)
2,000 CRH America, Inc. 5.63 9/30/2011 2,100
-----------
CONSTRUCTION & FARM MACHINERY & HEAVY TRUCKS (0.7%)
1,000 Caterpillar Financial Services Corp. 4.85 12/07/2012 1,079
3,250 Caterpillar Financial Services Corp. 4.90 8/15/2013 3,533
3,000 John Deere Capital Corp. 5.25 10/01/2012 3,268
3,000 Paccar, Inc. 6.88 2/15/2014 3,448
-----------
11,328
-----------
INDUSTRIAL CONGLOMERATES (0.1%)
1,000 Tyco International Finance 8.50 1/15/2019 1,271
-----------
RAILROADS (0.1%)
2,000 Union Pacific Corp. 5.13 2/15/2014 2,161
-----------
Total Industrials 35,749
-----------
INFORMATION TECHNOLOGY (0.5%)
-----------------------------
DATA PROCESSING & OUTSOURCED SERVICES (0.1%)
1,000 Computer Sciences Corp. 5.50 3/15/2013 1,080
-----------
ELECTRONIC COMPONENTS (0.1%)
2,000 Amphenol Corp. 4.75 11/15/2014 2,081
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.1%)
2,000 Agilent Technologies, Inc. 4.45 9/14/2012 2,108
-----------
OFFICE ELECTRONICS (0.2%)
2,996 Xerox Corp. 5.50 5/15/2012 3,197
-----------
Total Information Technology 8,466
-----------
MATERIALS (1.0%)
----------------
CONSTRUCTION MATERIALS (0.1%)
1,290 Martin Marietta Materials, Inc. 6.88 4/01/2011 1,341
-----------
DIVERSIFIED CHEMICALS (0.4%)
2,000 Chevron Phillips Chemical Co., LLC 7.00 3/15/2011 2,097
2,000 Dow Chemical Co. 4.85 8/15/2012 2,116
1,000 E. I. du Pont de Nemours and Co. 5.00 1/15/2013 1,084
1,000 E. I. du Pont de Nemours and Co. 5.00 7/15/2013 1,094
-----------
6,391
-----------
GOLD (0.1%)
2,000 Barrick Gold Finance Co., LLC 6.13 9/15/2013 2,236
-----------
INDUSTRIAL GASES (0.3%)
6,000 Praxair, Inc. 2.13 6/14/2013 6,039
-----------
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5 | USAA Short-Term Bond Fund
<PAGE>
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
STEEL (0.1%)
$ 1,000 Arcelormittal USA, Inc. 6.50% 4/15/2014 $ 1,101
-----------
Total Materials 17,108
-----------
TELECOMMUNICATION SERVICES (1.7%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (1.2%)
2,000 AT&T, Inc. 4.85 2/15/2014 2,171
5,852 Bellsouth Corp.(c) 6.00 10/15/2011 6,253
4,880 Qwest Corp. 8.88 3/15/2012 5,356
5,000 Telecom Italia Capital 5.25 11/15/2013 5,269
1,000 Verizon Communications, Inc. 5.25 4/15/2013 1,093
-----------
20,142
-----------
WIRELESS TELECOMMUNICATION SERVICES (0.5%)
2,000 ALLTEL Corp. 7.00 7/01/2012 2,225
5,000 Verizon Wireless Capital 3.75 5/20/2011 5,147
1,000 Verizon Wireless Capital 7.38 11/15/2013 1,163
-----------
8,535
-----------
Total Telecommunication Services 28,677
-----------
UTILITIES (5.4%)
----------------
ELECTRIC UTILITIES (3.9%)
2,000 Allegheny Energy Supply Co., LLC 7.80 3/15/2011 2,100
1,000 Appalachian Power Co. 5.55 4/01/2011 1,040
747 Aquila, Inc. 7.95 2/01/2011 782
923 Cedar Brakes II, LLC (a) 9.88 9/01/2013 942
2,000 Cincinnati Gas & Electric Co. 5.70 9/15/2012 2,172
5,000 Columbus Southern Power 0.66 (b) 3/16/2012 5,007
2,000 Commonwealth Edison Co. 6.15 3/15/2012 2,170
1,367 Consumers Energy Co. 4.00 5/15/2010 1,368
2,145 Detroit Edison Co. 6.13 10/01/2010 2,193
2,000 Duke Energy Ohio, Inc. 2.10 6/15/2013 2,011
833 Entergy Gulf States, Inc. 5.70 6/01/2015 834
3,000 Entergy Louisiana Holdings, Inc. 5.83 11/01/2010 3,004
2,000 FPL Group Capital, Inc. 5.63 9/01/2011 2,109
3,000 FPL Group Capital, Inc. 0.65 (b) 11/09/2012 2,998
5,000 Georgia Power Co. 0.58 (b) 3/15/2013 5,014
2,000 ITC Holdings Corp. (a) 5.25 7/15/2013 2,061
4,825 Nevada Power Co. 6.50 4/15/2012 5,237
2,340 New York State Electric & Gas Corp. 5.50 11/15/2012 2,517
1,000 Northeast Utilities 5.65 6/01/2013 1,071
2,000 Northern States Power Co. 8.00 8/28/2012 2,293
536 Oglethorpe Power Corp. 6.97 6/30/2011 538
2,000 PacifiCorp 6.90 11/15/2011 2,172
2,000 Pepco Holdings, Inc. 4.00 5/15/2010 2,001
7,000 Southern Co. 0.71 (b) 10/21/2011 7,036
4,000 UtiliCorp Canada Finance Corp. 7.75 6/15/2011 4,220
2,000 West Penn Power Co. 6.63 4/15/2012 2,168
-----------
65,058
-----------
GAS UTILITIES (0.3%)
2,000 AGL Capital Corp. 7.13 1/14/2011 2,082
1,000 Consolidated Natural Gas Co. 5.00 3/01/2014 1,068
1,000 ONEOK Partners, LP 5.90 4/01/2012 1,069
-----------
4,219
-----------
MULTI-UTILITIES (1.2%)
3,605 Black Hills Corp. 6.50 5/15/2013 3,901
2,000 CenterPoint Energy Houston Electric, LLC 5.70 3/15/2013 2,204
2,000 CenterPoint Energy Houston Electric, LLC 7.00 3/01/2014 2,281
1,000 CenterPoint Energy, Inc. 7.25 9/01/2010 1,018
1,000 Dominion Resources, Inc. 8.88 1/15/2019 1,288
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Portfolio of Investments | 6
<PAGE>
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PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 1,000 Energy East Corp. 6.75% 6/15/2012 $ 1,100
2,000 Nisource Finance Corp. 7.88 11/15/2010 2,071
2,000 PSEG Power, LLC (a) 2.50 4/15/2013 2,007
1,000 Puget Sound Energy, Inc. 6.75 1/15/2016 1,160
2,252 TECO Finance, Inc. 7.00 5/01/2012 2,459
-----------
19,489
-----------
Total Utilities 88,766
-----------
Total Corporate Obligations (cost: $496,120) 515,822
-----------
EURODOLLAR AND YANKEE OBLIGATIONS (5.0%)
CONSUMER STAPLES (0.6%)
-----------------------
BREWERS (0.6%)
10,000 Miller Brewing Co. (a) 5.50 8/15/2013 10,917
-----------
ENERGY (1.3%)
-------------
INTEGRATED OIL & GAS (1.1%)
5,000 BP Capital Markets plc 1.55 8/11/2011 5,042
5,000 BP Capital Markets plc(c) 3.13 3/10/2012 5,179
2,000 Husky Energy, Inc. 5.90 6/15/2014 2,216
1,240 PEMEX Finance Ltd. 9.03 2/15/2011 1,273
5,000 Shell International Finance 1.88 3/25/2013 5,025
-----------
18,735
-----------
OIL & GAS DRILLING (0.0%)
244 Delek & Avner-Yam Tethys Ltd. (a) 1.35 (b) 8/01/2013 244
-----------
OIL & GAS EXPLORATION & PRODUCTION (0.2%)
2,000 Woodside Finance Ltd. 8.13 3/01/2014 2,315
-----------
Total Energy 21,294
-----------
FINANCIALS (1.8%)
-----------------
DIVERSIFIED BANKS (1.1%)
5,000 ANZ National International 6.20 7/19/2013 5,517
2,000 Barclays Bank plc (a) 7.38 -(e) 1,960
5,000 Commonwealth Bank Australia (a) 0.55 (b) 11/04/2011 5,001
2,000 Den Norske Bank ASA (a) 7.73 -(e) 2,022
1,000 HSBC Capital Funding, LP (a) 9.55 -(e) 1,012
2,000 Standard Chartered PLC (a) 3.85 4/27/2015 2,012
-----------
17,524
-----------
DIVERSIFIED CAPITAL MARKETS (0.1%)
1,500 UBS Preferred Funding Trust II 7.25 -(e) 1,456
-----------
INVESTMENT BANKING & BROKERAGE (0.1%)
2,000 Credit Suisse Group, AG 5.50 5/01/2014 2,193
-----------
MULTI-LINE INSURANCE (0.1%)
2,000 ING Capital Funding Trust III 8.44 -(e) 1,905
-----------
OTHER DIVERSIFIED FINANCIAL SERVICES (0.1%)
2,000 ZFS Finance USA Trust I (a) 6.15 12/15/2065 1,940
-----------
REGIONAL BANKS (0.3%)
5,000 Canadian Imperial Bank (a) 2.00 2/04/2013 5,052
-----------
Total Financials 30,070
-----------
INDUSTRIALS (0.1%)
------------------
INDUSTRIAL CONGLOMERATES (0.1%)
2,000 Siemens Finance (a) 5.50 2/16/2012 2,144
-----------
================================================================================
7 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
MATERIALS (0.6%)
----------------
DIVERSIFIED METALS & MINING (0.4%)
$ 3,000 Glencore Funding, LLC (a) 6.00% 4/15/2014 $ 3,158
3,030 Xstrata Finance Canada (a) 5.50 11/16/2011 3,187
-----------
6,345
-----------
FERTILIZERS & AGRICULTURAL CHEMICALS (0.1%)
1,148 Agrium, Inc. 8.25 2/15/2011 1,211
-----------
METAL & GLASS CONTAINERS (0.1%)
2,000 Rexam PLC (a) 6.75 6/01/2013 2,196
-----------
Total Materials 9,752
-----------
TELECOMMUNICATION SERVICES (0.6%)
---------------------------------
INTEGRATED TELECOMMUNICATION SERVICES (0.6%)
9,000 British Telecommunications plc(c) 9.13 12/15/2010 9,436
-----------
Total Eurodollar and Yankee Obligations (cost: $82,145) 83,613
-----------
ASSET-BACKED SECURITIES (19.9%)
FINANCIALS (19.9%)
------------------
ASSET-BACKED FINANCING (19.9%)
163 Aerco Ltd. (a) 0.77 (b) 7/15/2025 153
4,000 AESOP Funding II, LLC (a) 0.48 (b) 3/20/2012 3,937
4,000 AESOP Funding II, LLC 5.68 2/20/2013 4,245
2,000 AESOP Funding II, LLC (a) 9.31 10/20/2013 2,251
5,000 AESOP Funding II, LLC 4.64 5/20/2016 5,060
2,000 American Express Credit Account Master Trust 0.53 (b) 12/15/2013 1,981
2,500 American Express Credit Account Master Trust
(a) 0.52 (b) 9/15/2014 2,450
144 AmeriCredit Automobile Receivables Trust 2.00 (b) 1/12/2012 144
1,000 AmeriCredit Automobile Receivables Trust 2.21 1/15/2014 1,005
10,000 AmeriCredit Automobile Receivables Trust 6.96 10/14/2014 10,655
2,000 AmeriCredit Automobile Receivables Trust 3.72 (b) 11/17/2014 2,017
1,726 AmeriCredit Automobile Receivables Trust 2.90 12/15/2014 1,742
3,160 Aviation Capital Group Trust (INS)(a) 0.96 (b) 9/20/2033 2,214
2,000 Banc of America Securities Auto Trust 5.51 2/19/2013 2,005
4,000 Bank of America Auto Trust (a) 5.73 1/20/2013 4,269
5,000 Bank of America Auto Trust (a) 3.52 6/15/2016 5,211
2,500 Bank of America Auto Trust (a) 3.03 10/15/2016 2,577
4,000 Bank of America Credit Card Trust 4.72 5/15/2013 4,103
3,000 Bank of America Credit Card Trust 0.54 (b) 6/15/2014 2,938
2,500 Bank of America Securities Auto Trust (a) 2.13 9/15/2013 2,535
5,000 Bank One Issuance Trust 4.77 2/16/2016 5,263
5,000 Bank One Issuance Trust 1.05 (b) 2/15/2017 4,877
2,000 Cabela's Credit Card Master Note Trust (a) 5.26 10/15/2014 2,093
1,486 Capital One Auto Finance Trust 0.28 (b) 5/15/2013 1,476
750 Capital One Auto Finance Trust 0.28 (b) 4/15/2014 744
3,637 Capital One Multi-Asset Execution Trust 6.00 8/15/2013 3,710
3,000 Capital One Multi-Asset Execution Trust 3.20 4/15/2014 3,078
2,020 Capital One Multi-Asset Execution Trust 0.55 (b) 6/16/2014 1,988
6,000 Carmax Auto Owner Trust 1.74 4/15/2014 6,040
523 Caterpillar Financial Asset Trust 5.34 6/25/2012 528
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 (a) 5.43 7/20/2015 4,946
1,439 Chase Funding Mortgage Loan 4.11 8/25/2030 1,417
2,275 Chase Issuance Trust 2.40 6/17/2013 2,314
3,361 CIT Equipment Collateral 2.20 6/15/2011 3,370
5,000 CIT Equipment Collateral (a) 2.41 5/15/2013 4,999
================================================================================
Portfolio of Investments | 8
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 2,000 CIT Equipment Collateral (a) 3.88% 9/16/2013 $ 2,000
1,000 CIT Equipment Collateral 3.07 8/15/2016 1,013
5,000 Citi Financial Auto Issuance Trust (a) 2.59 10/15/2013 5,060
5,000 Citi Financial Auto Issuance Trust (a) 3.15 8/15/2016 5,095
1,300 Citibank Credit Card Issuance Trust 6.95 2/18/2014 1,394
4,000 Citibank Credit Card Issuance Trust 4.40 6/20/2014 4,253
8,000 Citibank Credit Card Issuance Trust 6.30 6/20/2014 8,541
2,000 CNH Equipment Trust 5.28 11/15/2012 2,070
10,000 CPS Auto Receivables Trust (INS) 6.48 7/15/2013 10,303
10,000 Credit Acceptance Auto Loan Trust (a) 3.96 11/15/2016 10,197
739 E*Trade RV and Marine Trust 3.62 10/08/2018 743
3,000 Fifth Third Auto Trust 4.81 1/15/2013 3,106
2,000 Ford Credit Auto Owner Trust 2.00 (b) 4/15/2013 2,044
3,000 Ford Credit Auto Owner Trust 2.98 8/15/2014 3,090
4,000 Ford Credit Auto Owner Trust 2.42 11/15/2014 4,053
2,216 GE Capital Commercial Mortgage Corp. 4.87 7/10/2039 2,244
1,000 GE Capital Credit Card Master Note Trust 0.26 (b) 6/15/2013 999
2,005 GE Capital Credit Card Master Note Trust 0.55 (b) 6/15/2013 1,994
3,000 GE Capital Credit Card Master Note Trust 2.54 9/15/2014 3,038
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 (a) 5.39 11/15/2017 5,042
528 GE Equipment Midticket, LLC 0.28 (b) 10/15/2012 528
3,416 GE Equipment Midticket, LLC 0.40 (b) 9/15/2017 3,351
5,000 GE Equipment Midticket, LLC 3.13 11/16/2020 5,108
5,000 GE Equipment Small Ticket, LLC (a) 1.92 7/15/2016 5,027
3,621 GMAC Commercial Mortgage Securities, Inc. 6.96 9/15/2035 3,677
1,000 Hertz Vehicle Financing, LLC (a) 5.08 11/25/2011 1,013
5,000 Hertz Vehicle Financing, LLC (a) 5.08 11/25/2011 5,065
5,000 Hertz Vehicle Financing, LLC (a) 4.26 3/25/2014 5,174
2,000 Honda Auto Receivables Owner Trust 5.57 11/21/2013 2,062
3,000 Honda Auto Receivables Owner Trust 4.43 7/15/2015 3,169
1,575 HSBC Automotive Trust 5.33 11/17/2013 1,627
2,066 Huntington Auto Trust (a) 4.81 4/16/2012 2,107
3,000 Huntington Auto Trust 3.94 6/17/2013 3,074
3,000 Huntington Auto Trust (a) 5.73 1/15/2014 3,227
4,000 Hyundai Auto Receivables Trust 2.03 8/15/2013 4,056
2,000 Hyundai Auto Receivables Trust 5.48 11/17/2014 2,162
5,000 John Deere Owner Trust 1.57 10/15/2013 5,032
3,107 John Deere Owner Trust 5.07 4/15/2014 3,160
5,000 John Deere Owner Trust 3.96 5/16/2016 5,245
1,730 Long Beach Acceptance Auto Receivables Trust 5.50 5/15/2013 1,749
5,225 MBNA Master Credit Card Note Trust 0.66 10/15/2012 5,223
2,000 MBNA Master Credit Card Note Trust 6.80 7/15/2014 2,148
7,000 MMAF Equipment Finance, LLC (a) 2.37 11/15/2013 7,014
3,000 MMAF Equipment Finance, LLC (a) 3.51 1/15/2030 3,013
5,000 Nissan Auto Receivables Owner Trust 4.28 6/16/2014 5,204
2,000 Nissan Auto Receivables Owner Trust 5.05 11/17/2014 2,132
6,642 Prestige Auto Receivables Trust "A" (a) 5.67 4/15/2017 6,646
10,500 Rental Car Finance Corp. (a) 0.40 7/25/2013 9,720
2,500 SLM Student Loan Trust 0.62 (b) 12/15/2023 2,213
6,278 SLM Student Loan Trust 0.70 (b) 1/27/2025 5,235
1,250 SLM Student Loan Trust 0.52 (b) 10/27/2025 1,016
1,817 SLM Student Loan Trust 0.87 (b) 10/25/2038 1,582
14,000 Toyota Auto Receivables Owner Trust(f) (g) 1.86 5/16/2016 13,998
659 USXL Funding, LLC (INS)(a) 5.38 4/15/2014 659
3,000 Volkswagen Auto Loan Enhanced Trust 6.24 7/20/2015 3,325
1,871 Wachovia Auto Owner Trust 4.81 9/20/2012 1,911
1,294 Wachovia Auto Owner Trust 5.49 4/22/2013 1,340
2,000 Wachovia Auto Owner Trust 5.35 3/20/2014 2,135
-----------
330,006
-----------
Total Financials 330,006
-----------
Total Asset-Backed Securities (cost: $319,135) 330,006
-----------
================================================================================
9 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE SECURITIES (24.3%)
FINANCIALS (24.3%)
------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES (23.8%)
$ 3,000 Banc of America Commercial Mortgage, Inc. 6.02% 3/10/2013 $ 3,114
1,064 Banc of America Commercial Mortgage, Inc. 6.33 5/11/2035 1,084
2,000 Banc of America Commercial Mortgage, Inc. 4.65 9/11/2036 2,049
6,190 Banc of America Commercial Mortgage, Inc. 4.05 11/10/2038 6,299
6,025 Banc of America Commercial Mortgage, Inc. 4.56 11/10/2041 6,078
1,000 Banc of America Commercial Mortgage, Inc. 4.94 11/10/2041 1,020
5,000 Banc of America Commercial Mortgage, Inc. 4.50 7/10/2042 5,053
5,100 Banc of America Commercial Mortgage, Inc. 5.05 11/10/2042 5,336
3,346 Banc of America Commercial Mortgage, Inc. 4.16 12/10/2042 3,337
2,960 Banc of America Commercial Mortgage, Inc. 4.51 12/10/2042 3,047
3,396 Banc of America Commercial Mortgage, Inc. 4.50 7/10/2043 3,426
1,000 Banc of America Commercial Mortgage, Inc. 4.62 7/10/2043 1,022
5,449 Banc of America Commercial Mortgage, Inc. 4.78 7/10/2043 5,603
1,225 Banc of America Commercial Mortgage, Inc. 5.09 7/10/2043 1,290
1,913 Banc of America Commercial Mortgage, Inc. 4.76 7/10/2045 1,958
3,000 Banc of America Commercial Mortgage, Inc. 5.17 7/10/2045 3,033
5,000 Banc of America Commercial Mortgage, Inc. 5.12 10/10/2045 5,255
2,000 Banc of America Commercial Mortgage, Inc. 5.52 7/10/2046 2,038
1,500 Banc of America Commercial Mortgage, Inc. 5.17 9/10/2047 1,504
3,935 Banc of America Commercial Mortgage, Inc. 5.18 9/10/2047 4,151
6,300 Banc of America Commercial Mortgage, Inc. 5.32 9/10/2047 6,488
874 Bear Stearns Commercial Mortgage Securities,
Inc. 5.04 12/11/2038 889
3,700 Bear Stearns Commercial Mortgage Securities,
Inc. 4.24 8/13/2039 3,593
1,575 Bear Stearns Commercial Mortgage Securities,
Inc. 4.00 3/13/2040 1,596
4,442 Bear Stearns Commercial Mortgage Securities,
Inc. 4.95 2/11/2041 4,566
3,000 Chase Commercial Mortgage Securities Corp. 7.73 1/15/2032 3,002
3,089 Chase Commercial Mortgage Securities Corp. 7.32 10/15/2032 3,127
5,000 Citigroup Commercial Mortgage Trust 5.25 4/15/2040 5,139
2,050 Citigroup Commercial Mortgage Trust 4.38 10/15/2041 2,064
1,750 Citigroup Commercial Mortgage Trust 5.38 10/15/2049 1,809
550 Commercial Mortgage Asset Trust 6.64 1/17/2032 550
1,000 Commercial Mortgage Asset Trust 7.64 11/17/2032 969
1,183 Commercial Mortgage Asset Trust 4.63 5/10/2043 1,180
2,000 Commercial Mortgage Trust 4.58 10/15/2037 2,011
1,994 Commercial Mortgage Trust (a) 5.65 3/03/2041 1,695
3,000 Commercial Mortgage Trust 5.12 6/10/2044 3,092
5,100 Commercial Mortgage Trust 5.27 7/15/2044 5,239
3,000 Credit Suisse Commercial Mortgage Trust 6.02 6/15/2038 3,121
2,383 Credit Suisse First Boston Mortgage Securities
Corp. 6.51 2/15/2034 2,436
4,000 Credit Suisse First Boston Mortgage Securities
Corp. 5.11 7/15/2036 4,170
1,000 Credit Suisse First Boston Mortgage Securities
Corp. 4.92 4/15/2037 628
4,281 Credit Suisse First Boston Mortgage Securities
Corp. 4.51 7/15/2037 4,307
1,551 Credit Suisse First Boston Mortgage Securities
Corp. 4.18 11/15/2037 1,557
331 Credit Suisse First Boston Mortgage Securities
Corp. 3.38 5/15/2038 331
1,320 Credit Suisse First Boston Mortgage Securities
Corp. 5.10 8/15/2038 1,357
310 Credit Suisse First Boston Mortgage Securities
Corp. 3.88 10/15/2039 310
================================================================================
Portfolio of Investments | 10
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 4,986 Credit Suisse First Boston Mortgage Securities
Corp. 5.21% 12/15/2040 $ 4,986
1,552 Deutsche Mortgage & Asset Receiving Corp. 7.50 6/15/2031 1,639
3,000 First Union National Bank Commercial Mortgage
Trust 6.22 12/12/2033 3,148
432 G-Force, LLC (a) 4.39 8/22/2036 411
162 GE Commercial Mortgage Corp. 4.17 7/10/2037 163
4,985 GE Commercial Mortgage Corp. 4.86 7/10/2045 4,981
3,675 GE Commercial Mortgage Corp. 5.31 11/10/2045 3,661
1,800 GE Commercial Mortgage Corp. 5.33 11/10/2045 1,859
3,279 GE Commercial Mortgage Corp. 4.35 6/10/2048 3,339
2,949 GMAC Commercial Mortgage Securities, Inc. 7.65 9/15/2033 2,869
2,000 GMAC Commercial Mortgage Securities, Inc. 6.50 5/15/2035 2,018
2,656 GMAC Commercial Mortgage Securities, Inc. 4.65 4/10/2040 2,712
2,000 GMAC Commercial Mortgage Securities, Inc. 4.75 5/10/2043 1,910
6,650 Greenwich Capital Commercial Funding Corp. 5.32 6/10/2036 7,063
4,967 Greenwich Capital Commercial Funding Corp. 5.12 4/10/2037 5,037
3,811 Greenwich Capital Commercial Funding Corp. 4.31 8/10/2042 3,864
2,160 Greenwich Capital Commercial Funding Corp. 4.80 8/10/2042 2,206
1,160 GS Mortgage Securities Corp. II (a) 6.04 8/15/2018 1,195
1,000 GS Mortgage Securities Corp. II 4.96 8/10/2038 1,030
2,774 GS Mortgage Securities Corp. II (a) 4.48 7/10/2039 2,779
4,100 GS Mortgage Securities Corp. II 4.61 7/10/2039 4,119
2,459 GS Mortgage Securities Corp. II 4.30 1/10/2040 2,511
895 J.P. Morgan Chase Commercial Mortgage
Securities Corp 4.85 8/15/2042 896
5,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.20 8/12/2037 5,191
4,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.82 9/12/2037 4,043
3,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.70 7/15/2042 3,084
4,200 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.87 10/15/2042 4,286
2,130 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.28 1/12/2043 2,181
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.49 4/15/2043 2,118
6,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp.(c) 5.79 6/12/2043 6,300
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.81 6/12/2043 2,103
960 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.20 12/15/2044 995
2,725 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.37 12/15/2044 2,854
2,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 6.06 4/15/2045 2,140
3,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.52 5/12/2045 3,161
3,000 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 5.37 5/15/2045 3,146
4,260 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.63 3/15/2046 4,418
1,725 J.P. Morgan Chase Commercial Mortgage
Securities Corp. 4.87 3/15/2046 1,760
2,000 LB-UBS Commercial Mortgage Trust (a) 6.83 7/14/2016 2,044
776 LB-UBS Commercial Mortgage Trust 4.56 9/15/2026 788
2,270 LB-UBS Commercial Mortgage Trust 4.56 9/15/2027 2,292
2,070 LB-UBS Commercial Mortgage Trust 3.97 3/15/2029 2,114
6,000 LB-UBS Commercial Mortgage Trust 5.29 6/15/2029 6,210
3,000 LB-UBS Commercial Mortgage Trust 4.55 8/15/2029 3,031
4,000 LB-UBS Commercial Mortgage Trust 4.58 8/15/2029 4,078
3,905 LB-UBS Commercial Mortgage Trust 4.63 10/15/2029 3,972
5,400 LB-UBS Commercial Mortgage Trust 4.51 12/15/2029 5,382
================================================================================
11 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 2,288 LB-UBS Commercial Mortgage Trust 4.82% 4/15/2030 $ 2,292
2,000 LB-UBS Commercial Mortgage Trust 5.00 4/15/2030 2,071
4,940 LB-UBS Commercial Mortgage Trust 4.65 7/15/2030 5,046
5,830 LB-UBS Commercial Mortgage Trust 4.95 9/15/2030 6,042
5,000 LB-UBS Commercial Mortgage Trust 5.10 11/15/2030 5,026
3,000 LB-UBS Commercial Mortgage Trust 5.87 6/15/2032 3,062
5,000 LB-UBS Commercial Mortgage Trust 4.69 7/15/2032 5,250
3,718 LB-UBS Commercial Mortgage Trust 4.37 3/15/2036 3,799
1,500 Merrill Lynch Mortgage Trust 5.10 (b) 7/12/2038 873
4,456 Merrill Lynch Mortgage Trust 4.17 8/12/2039 4,533
1,776 Merrill Lynch Mortgage Trust 4.35 2/12/2042 1,787
1,271 Merrill Lynch Mortgage Trust 4.81 9/12/2042 1,276
2,841 Merrill Lynch Mortgage Trust 4.56 6/12/2043 2,848
3,000 Merrill Lynch-Countrywide Commercial
Mortgage Trust 5.38 7/12/2046 3,135
5,310 Morgan Stanley Capital I, Inc. 4.90 6/15/2040 5,386
2,620 Morgan Stanley Capital I, Inc. 5.28 12/15/2043 2,668
1,622 Morgan Stanley Capital I, Inc. 4.73 6/12/2047 1,624
2,847 Morgan Stanley Dean Witter Capital I, Inc. 7.49 2/23/2034 3,026
2,683 Morgan Stanley Dean Witter Capital I, Inc. 6.51 4/15/2034 2,803
6,650 Morgan Stanley Dean Witter Capital I, Inc. 5.98 1/15/2039 7,040
871 Morgan Stanley Dean Witter Capital I, Inc. (a) 5.13 5/24/2043 812
2,000 Morgan Stanley Dean Witter Capital I, Inc. 4.54 7/15/2056 2,038
2,000 Mortgage Capital Funding, Inc. 7.15 6/18/2030 1,995
2,000 PNC Mortgage Acceptance Corp. 7.50 10/12/2033 2,012
2,000 Prudential Securities Secured Financing Corp. 6.76 6/16/2031 2,025
162 Salomon Brothers Mortgage Securities VII, Inc. 7.46 7/18/2033 162
1,894 Salomon Brothers Mortgage Securities VII, Inc. 4.47 3/18/2036 1,965
2,000 SBA Trust (a) 5.45 11/15/2036 2,069
2,794 Structured Asset Securities Corp. 7.15 10/12/2034 2,861
203 Trizechahn Office Properties Trust (a) 6.09 5/15/2016 206
7,538 Wachovia Bank Commercial Mortgage Trust 5.00 7/15/2041 7,612
2,554 Wachovia Bank Commercial Mortgage Trust 4.78 3/15/2042 2,558
2,668 Wachovia Bank Commercial Mortgage Trust 4.66 4/15/2042 2,672
5,080 Wachovia Bank Commercial Mortgage Trust 5.29 7/15/2042 5,115
1,932 Wachovia Bank Commercial Mortgage Trust 5.68 5/15/2043 1,961
2,000 Wachovia Bank Commercial Mortgage Trust 5.35 10/15/2044 2,072
3,017 Wachovia Bank Commercial Mortgage Trust 5.42 1/15/2045 3,040
5,000 Wachovia Bank Commercial Mortgage Trust 5.62 7/15/2045 5,145
7,000 Wachovia Bank Commercial Mortgage Trust 5.50 10/15/2048 7,118
-----------
396,035
-----------
ESCROWED BONDS (0.2%)
1,050 GS Mortgage Securities Corp. II (a) 6.21 2/14/2016 1,084
3,000 GS Mortgage Securities Corp. II (a) 6.77 5/03/2018 3,119
-----------
4,203
-----------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (0.3%)
36,296 Credit Suisse First Boston Mortgage Securities
Corp., acquired 2/26/2004 and 8/30/2004;
cost $1,624(a),(h) 1.13 1/15/2037 329
6,736 Credit Suisse First Boston Mortgage Securities
Corp., acquired 6/17/2003 and 8/04/2005;
cost $594(a),(h) 1.89 5/15/2038 15
35,852 J.P. Morgan Chase Commercial Mortgage
Securities Corp., acquired 8/05/2009; cost
$466(a),(h) 0.70 1/12/2037 366
53,083 LB-UBS Commercial Mortgage Trust, acquired
8/05/2009; cost $807(a),(h) 1.23 3/15/2036 535
130,064 LB-UBS Commercial Mortgage Trust, acquired
7/10/2009; cost $1,687(a),(h) 0.92 10/15/2036 1,417
38,729 LB-UBS Commercial Mortgage Trust, acquired
5/20/2003 and 12/14/2007; cost
$1,225(a),(h) 1.22 2/15/2037 109
================================================================================
Portfolio of Investments | 12
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 49,559 Morgan Stanley Capital I, Inc., acquired
5/09/2008; cost $1,175(a),(h) 0.99% 4/15/2038 $ 598
48,060 Morgan Stanley Capital I, Inc., acquired
5/09/2008; cost $1,265(a),(h) 0.89 1/13/2041 1,048
-----------
4,417
-----------
Total Financials 404,655
-----------
Total Commercial Mortgage Securities (cost: $398,525) 404,655
-----------
U.S. GOVERNMENT AGENCY ISSUES (14.2%)(d)
COLLATERALIZED MORTGAGE OBLIGATIONS (0.1%)
2,000 Freddie Mac (+) 4.50 1/15/2029 2,099
-----------
DEBENTURES (0.6%)
5,000 Fannie Mae (+)(c) 1.38 4/28/2011 5,040
4,000 Fannie Mae (+) 1.88 4/20/2012 4,061
-----------
9,101
-----------
INTEREST-ONLY COMMERCIAL MORTGAGE-BACKED SECURITIES (0.0%)
3,952 Government National Mortgage Assn. 1.75 (b) 7/16/2010 50
-----------
MORTGAGE-BACKED PASS-THROUGH SECURITIES (6.2%)
7,709 Fannie Mae (+) 4.50 5/01/2023 8,032
3,663 Fannie Mae (+) 4.50 2/01/2024 3,813
2,985 Fannie Mae (+) 5.00 12/01/2021 3,163
7,299 Fannie Mae (+) 5.00 6/01/2023 7,716
3,871 Fannie Mae (+) 5.00 9/01/2023 4,092
14,536 Fannie Mae (+) 5.00 2/01/2024 15,366
3,998 Fannie Mae (+) 5.50 12/01/2020 4,302
3,333 Fannie Mae (+) 5.50 2/01/2023 3,566
9,019 Fannie Mae (+) 5.50 6/01/2023 9,650
4,123 Fannie Mae (+) 5.50 9/01/2023 4,412
8,136 Fannie Mae (+) 5.50 6/01/2024 8,705
4,820 Fannie Mae (+) 6.00 10/01/2022 5,196
3,277 Fannie Mae (+) 6.00 1/01/2023 3,532
6,182 Fannie Mae (+) 6.00 1/01/2023 6,663
3,781 Fannie Mae (+) 6.00 7/01/2023 4,072
2,829 Freddie Mac (+) 3.63 (b) 4/01/2035 2,942
2,649 Freddie Mac (+) 5.00 5/01/2020 2,825
1,611 Freddie Mac (+) 5.00 9/01/2020 1,718
835 Freddie Mac (+) 5.50 11/01/2018 899
2,584 Freddie Mac (+) 5.50 4/01/2021 2,774
-----------
103,438
-----------
OTHER U.S. GOVERNMENT GUARANTEED SECURITIES (7.3%)(i)
2,000 Bank of America Corp. (INS) 3.13 6/15/2012 2,080
3,000 Citbank, N.A. (INS) 1.63 3/30/2011 3,030
10,000 Citibank N.A. (INS) 1.25 11/15/2011 10,061
20,000 Citigroup Funding, Inc. (INS) 1.88 11/15/2012 20,241
10,000 Citigroup Funding, Inc. 2.00 3/30/2012 10,167
3,000 Citigroup, Inc. (INS) 0.28 (b) 5/07/2012 3,003
3,000 Citigroup, Inc. (INS) 1.38 5/05/2011 3,020
13,000 General Electric Capital Corp. (INS) 2.13 12/21/2012 13,237
17,000 General Electric Capital Corp. 2.25 3/12/2012 17,393
10,000 GMAC, Inc. (INS) 1.75 10/30/2012 10,091
1,000 MetLife, Inc., (INS) 0.61 (b) 6/29/2012 1,007
2,000 PNC Funding Corp. (INS) 0.49 (b) 4/01/2012 2,008
5,000 PNC Funding Corp. (INS) 0.55 (b) 6/22/2011 5,019
2,000 Sovereign Bank (INS) 2.75 1/17/2012 2,063
3,000 State Street Corp. (INS) 1.85 3/15/2011 3,036
================================================================================
13 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
$ 15,000 Western Corp. Federal Credit Union (INS) 1.75% 11/02/2012 $ 15,120
-----------
120,576
-----------
Total U.S. Government Agency Issues (cost: $229,180) 235,264
-----------
MUNICIPAL BONDS (4.8%)
AIRPORT/PORT (0.7%)
880 Cleveland (INS) 5.24 1/01/2017 888
2,745 College Park Georgia (INS) 5.66 1/01/2012 2,845
5,855 College Park Georgia (INS) 5.73 1/01/2014 6,144
500 Metropolitan Nashville Airport Auth. (INS) 2.25 7/01/2012 502
500 Metropolitan Nashville Airport Auth. (INS) 3.73 7/01/2014 510
-----------
10,889
-----------
APPROPRIATED DEBT (0.2%)
1,000 Pennsylvania Commonwealth Finance Auth. 3.38 6/01/2013 1,034
2,000 Pennsylvania Commonwealth Finance Auth. 4.18 6/01/2015 2,096
885 Reeves County (INS) 5.75 3/01/2012 884
-----------
4,014
-----------
BUILDINGS (0.2%)
3,000 Rhode Island EDC 3.78 5/15/2012 3,090
-----------
COMMUNITY SERVICE (0.1%)
1,500 American National Red Cross 5.36 11/15/2011 1,535
-----------
EDUCATION (0.1%)
2,000 New York Institute of Technology 3.68 3/01/2012 2,008
-----------
ELECTRIC UTILITIES (0.7%)
2,000 Air Quality Dev. Auth. 4.75 8/01/2029 2,118
2,000 American Municipal Power, Inc. 3.62 2/15/2013 2,062
3,000 American Municipal Power, Inc. 3.82 2/15/2014 3,091
2,000 Maricopa County 5.50 5/01/2029 2,082
1,605 Mississippi Dev. Bank (INS) 5.24 7/01/2011 1,629
-----------
10,982
-----------
ELECTRIC/GAS UTILITIES (0.2%)
1,750 Energy Northwest 5.23 7/01/2011 1,837
700 Pedernales Electric Cooperative, Inc. (INS)(a) 4.09 11/15/2012 707
-----------
2,544
-----------
ENVIRONMENTAL & FACILITIES SERVICES (0.9%)
5,000 California Statewide Communities Dev. Auth. 1.88 4/01/2011 4,960
2,000 Gloucester County 3.38 (b) 12/01/2029 2,022
1,750 Miami Dade County 2.00 (b) 12/01/2018 1,750
5,000 Miami Dade County 1.80 9/01/2027 4,999
1,600 Yavapai County IDA 4.00 6/01/2027 1,602
-----------
15,333
-----------
GENERAL OBLIGATION (0.9%)
10,000 California 3.00 5/25/2010 10,010
2,000 California 5.65 4/01/2039 2,131
2,430 Chippewa Valley Schools (g) 3.65 5/01/2015 2,464
-----------
14,605
-----------
================================================================================
Portfolio of Investments | 14
<PAGE>
================================================================================
PRINCIPAL MARKET
AMOUNT COUPON VALUE
(000) SECURITY RATE MATURITY (000)
--------------------------------------------------------------------------------------------------------
MISCELLANEOUS (0.3%)
$ 5,000 California Statewide Communities Dev. Auth. 5.00% 6/15/2013 $ 5,451
-----------
NURSING/CCRC (0.1%)
1,925 Waco Health Facilities Dev. Corp. (INS) 5.27 2/01/2016 2,012
-----------
SALES TAX (0.3%)
5,000 Louisiana 3.00 (b) 5/01/2043 5,060
-----------
SPECIAL ASSESSMENT/TAX/FEE (0.1%)
710 City and County of San Francisco
Redevelopment Financing Auth. (INS) 5.62 8/01/2016 732
1,000 New York State Housing Finance Agency 5.19 9/15/2011 1,062
-----------
1,794
-----------
Total Municipal Bonds (cost: $77,815) 79,317
-----------
MONEY MARKET INSTRUMENTS (2.1%)
VARIABLE-RATE DEMAND NOTES (1.1%)
HEALTH CARE (0.0%)
------------------
HEALTH CARE FACILITIES (0.0%)
130 Albany IDA (LOC - RBS Citizens, N.A.) 0.80 5/01/2035 130
-----------
MUNICIPAL BONDS (0.8%)
----------------------
DIVERSIFIED CHEMICALS (0.2%)
2,900 West Baton Rouge Parish 0.85 12/01/2024 2,900
-----------
HOSPITAL (0.6%)
10,000 Johnson City Health and Educational Facilities
Board (LOC - Regions Bank) 2.00 7/01/2033 10,000
-----------
Total Municipal Bonds 12,900
-----------
UTILITIES (0.3%)
----------------
ELECTRIC UTILITIES (0.3%)
6,000 Gulf Coast IDA 1.55 5/01/2039 6,000
-----------
Total Variable-Rate Demand Notes 19,030
-----------
MARKET
NUMBER VALUE
OF SHARES SECURITY (000)
-------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS (1.0%)
16,147,194 State Street Institutional Liquid Reserve Fund,
0.16%(j) 16,147
-----------
Total Money Market Instruments (cost: $35,177) 35,177
-----------
TOTAL INVESTMENTS (COST: $1,638,097) $ 1,683,854
===========
================================================================================
15 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
VALUATION HIERARCHY
($ IN 000s) -------------------
(LEVEL 1)
QUOTED PRICES (LEVEL 2)
IN ACTIVE OTHER (LEVEL 3)
MARKETS SIGNIFICANT SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
ASSETS INPUTS INPUTS TOTAL
---------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS $ - $ 515,822 $ - $ 515,822
EURODOLLAR AND YANKEE
OBLIGATIONS - 83,613 - 83,613
ASSET-BACKED SECURITIES - 330,006 - 330,006
COMMERCIAL MORTGAGE SECURITIES - 404,655 - 404,655
U.S. GOVERNMENT AGENCY ISSUES - 235,264 - 235,264
MUNICIPAL BONDS - 79,317 - 79,317
MONEY MARKET INSTRUMENTS:
VARIABLE-RATE DEMAND NOTES - 19,030 - 19,030
MONEY MARKET FUNDS 16,147 - - 16,147
---------------------------------------------------------------------------------------------------------
Total $ 16,147 $ 1,667,707 $ - $ 1,683,854
---------------------------------------------------------------------------------------------------------
Reconciliation of investments in which significant unobservable inputs (Level 3)
were used in determining value:
Asset-Backed Securities
------------------------------------------------------------------------
Balance as of July 31, 2009 $ 1,008
Net realized gain (loss) -
Change in net unrealized appreciation/depreciation 148
Net purchases (sales) 1,095
Transfers in and/or out of Level 3 (2,251)
------------------------------------------------------------------------
Balance as of April 30, 2010 $ -
------------------------------------------------------------------------
================================================================================
Portfolio of Investments | 16
<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
Short-Term Bond Fund (the Fund), which is classified as diversified under the
1940 Act.
The Fund has two classes of shares: Short-Term Bond Fund Shares and Short-Term
Bond Fund Institutional Shares. Each class of shares has equal rights to assets
and earnings, except that each class bears certain class-related expenses
specific to the particular class. These expenses include administration and
servicing fees, transfer agent fees, postage, shareholder reporting fees, and
certain registration and custodian fees. Expenses not attributable to a specific
class, income, and realized gains or losses on investments are allocated to each
class of shares based on each class's relative net assets. Each class has
exclusive voting rights on matters related solely to that class and separate
voting rights on matters that relate to both classes. The Institutional Shares
are currently only offered for sale to the USAA Target Retirement Funds (Target
Funds) and not to the general public. The Target Funds are managed by USAA
Investment Management Company (the Manager), an affiliate of the Fund.
A. SECURITY VALUATION - The value of each security is determined (as of the
close of trading on the New York Stock Exchange (NYSE) on each business day the
NYSE is open) as set forth below:
1. Debt securities with maturities greater than 60 days are valued each business
day by a pricing service (the Service) approved by the Trust's Board of
Trustees. The Service uses an evaluated mean between quoted bid and asked prices
or the last sales price to price securities when, in the Service's judgment,
these prices are readily available and are representative of the securities'
market values. For many securities, such prices are not readily available. The
Service generally prices these securities based on methods that include
consideration of yields or prices of securities of comparable quality, coupon,
maturity, and type; indications as to values from dealers in securities; and
general market conditions.
2. Investments in open-end investment companies, hedge, or other funds, other
than exchange-traded funds, are valued at their net asset value (NAV) at the end
of each business day.
3. Debt securities purchased with original or remaining maturities of 60 days or
less may be valued at amortized cost, which approximates market value.
4. Futures are valued based upon the last sale price at the close of market on
the principal exchange on which they are traded.
================================================================================
17 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
5. Securities for which market quotations are not readily available or are
considered unreliable, or whose values have been materially affected by events
occurring after the close of their primary markets but before the pricing of the
Fund, are valued in good faith at fair value, using methods determined by the
Manager under valuation procedures approved by the Trust's Board of Trustees.
The effect of fair value pricing is that securities may not be priced on the
basis of quotations from the primary market in which they are traded and the
actual price realized from the sale of a security may differ materially from the
fair value price. Valuing these securities at fair value is intended to cause
the Fund's NAV to be more reliable than it otherwise would be.
Fair value methods used by the Manager include, but are not limited to,
obtaining market quotations from secondary pricing services, broker-dealers, or
widely used quotation systems. General factors considered in determining the
fair value of securities include fundamental analytical data, the nature and
duration of any restrictions on disposition of the securities, and an evaluation
of the forces that influenced the market in which the securities are purchased
and sold.
B. FAIR VALUE MEASUREMENTS - Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The
three-level valuation hierarchy disclosed in the portfolio of investments is
based upon the transparency of inputs to the valuation of an asset or liability
as of the measurement date. The three levels are defined as follows:
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) in
active markets for identical securities.
Level 2 - inputs to the valuation methodology are other significant observable
inputs, including quoted prices for similar securities, inputs that are
observable for the securities, either directly or indirectly, and
market-corroborated inputs such as market indices.
Level 3 - inputs to the valuation methodology are unobservable and significant
to the fair value measurement, including the Manager's own assumptions in
determining the fair value.
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risks associated with investing in those securities.
C. FUTURES CONTRACTS - The Fund is subject to equity price risk, interest rate
risk, and foreign currency exchange rate risk in the normal course of pursuing
its investment objectives. The Fund may use futures contracts to gain exposure
to, or hedge against, changes in the value of equities, interest rates, or
foreign currencies. A futures contract represents a commitment for the future
purchase or sale of an asset at a specified price on a specified date. Upon
entering into such contracts, the Fund is required to deposit with the broker in
either cash or securities an initial margin in an amount equal to a certain
percentage of the contract amount. Subsequent payments (variation margin) are
made or received by the Fund each day, depending on the daily fluctuations in
the value of the contract, and are recorded for financial statement purposes as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. Upon
================================================================================
Notes to Portfolio of Investments | 18
<PAGE>
================================================================================
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, 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 $50,460,000 and $4,703,000 respectively, resulting in net
unrealized depreciation of $45,757,000.
H. The portfolio of investments category percentages shown represent the
percentages of the investments to net assets, which were $1,661,808,000 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.
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
================================================================================
19 | USAA Short-Term Bond Fund
<PAGE>
================================================================================
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.
VARIABLE-RATE DEMAND NOTES (VRDNs) - Provide the right to sell the security at
face value on either that day or within the rate-reset period. The interest
rate is adjusted at a stipulated daily, weekly, monthly, quarterly, or other
specified time interval to reflect current market conditions. VRDNs will
normally trade as if the maturity is the earlier put date, even though stated
maturity is longer.
PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS
EDC Economic Development Corp.
IDA Industrial Development Authority/Agency
REIT Real estate investment trust
CREDIT ENHANCEMENTS - add the financial strength of the provider of the
enhancement to support the issuer's ability to repay the principal and interest
payments when due. The enhancement may be provided by a high-quality bank,
insurance company or other corporation, or a collateral trust. The enhancements
do not guarantee the market values of the securities.
(INS) Principal and interest payments are insured by one of the following:
ACA Financial Guaranty Corp., AMBAC Assurance Corp., Assured Guaranty
Ltd., Assured Guaranty Municipal Corp., Federal Deposit Insurance
Corp., Financial Guaranty Insurance Co., MBIA Insurance Corp., or
National Public Finance Guarantee Corp. Although bond insurance
reduces the risk of loss due to default by an issuer, such bonds
remain subject to the risk that value may fluctuate for other reasons,
and there is no assurance that the insurance company will meet its
obligations.
(LOC) Principal and interest payments are guaranteed by a bank letter of
credit or other bank credit agreement.
================================================================================
Notes to Portfolio of Investments | 20
<PAGE>
================================================================================
SPECIFIC NOTES
(a) Restricted security that is not registered under the Securities Act of
1933. A resale of this security in the United States may occur in an
exempt transaction to a qualified institutional buyer as defined by Rule
144A, and as such has been deemed liquid by the Managerunder 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) At April 30, 2010, portions of these securities were segregated to cover
delayed-delivery and/or when-issued purchases.
(d) 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.
(e) Security is perpetual and has no final maturity date but may be subject
to calls at various dates in the future.
(f) Security was fair valued at April 30, 2010, by the Manager in accordance
with valuation procedures approved by the Trust's Board of Trustees.
(g) At April 30, 2010, the aggregate market value of securities purchased on
a when-issued basis was $16,462,000.
(h) 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 $4,417,000, which represented
0.3% of the Fund's net assets.
(i) Other U.S. government guaranteed securities - The FDIC Temporary
Liquidity Guarantee Program provides a guarantee of payment of principal
and interest on certain newly issued senior unsecured debt through the
program's expiration date on December 31, 2012. The guarantee carries
the full faith and credit of the U.S. government.
(j) Rate represents the money market fund annualized seven-day yield at
April 30, 2010.
================================================================================
21 | USAA Short-Term Bond Fund
ITEM 2. CONTROLS AND PROCEDURES
The principal executive officer and principal financial officer of USAA Mutual
Funds Trust (Trust) have concluded that the Trust's disclosure controls and
procedures are sufficient to ensure that information required to be disclosed by
the Trust in this Form N-Q was recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission's
rules and forms, based upon such officers' evaluation of these controls and
procedures as of a date within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
significant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.
ITEM 3. EXHIBITS.
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940
(17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: USAA MUTUAL FUNDS TRUST - Period Ended 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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