UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-7852
Exact Name of Registrant as Specified in Charter: USAA MUTUAL FUNDS TRUST
Address of Principal Executive Offices and Zip Code: 9800 FREDERICKSBURG ROAD
SAN ANTONIO, TX 78288
Name and Address of Agent for Service: CHRISTOPHER P. LAIA
USAA MUTUAL FUNDS TRUST
9800 FREDERICKSBURG ROAD
SAN ANTONIO, TX 78288
Registrant's Telephone Number, Including Area Code: (210) 498-0226
Date of Fiscal Year End: MARCH 31
|
Date of Reporting Period: JUNE 30, 2010
ITEM 1. SCHEDULE OF INVESTMENTS.
USAA MUTUAL FUNDS TRUST - 1ST QUARTER REPORT - PERIOD ENDED JUNE 30, 2010
[LOGO OF USAA]
USAA(R)
PORTFOLIO OF INVESTMENTS
1ST QUARTER
USAA VIRGINIA BOND FUND
JUNE 30, 2010
(Form N-Q)
48502-0610 (C)2010, USAA. All rights reserved.
PORTFOLIO OF INVESTMENTS
June 30, 2010 (unaudited)
CATEGORIES AND DEFINITIONS
FIXED-RATE INSTRUMENTS - consist of municipal bonds, notes, and commercial
paper. The interest rate is constant to maturity. Prior to maturity, the market
price of a fixed-rate instrument generally varies inversely to the movement of
interest rates.
VARIABLE-RATE DEMAND NOTES (VRDNs) - provide the right to sell the security at
face value on either that day or within the rate-reset period. The interest rate
is adjusted at a stipulated daily, weekly, monthly, quarterly, or other
specified time interval to reflect current market conditions. VRDNs will
normally trade as if the maturity is the earlier put date, even though stated
maturity is longer.
CREDIT ENHANCEMENTS - add the financial strength of the provider of the
enhancement to support the issuer's ability to repay the principal and interest
payments when due. The enhancement may be provided by a high-quality bank,
insurance company or other corporation, or a collateral trust. The enhancements
do not guarantee the market values of the securities.
(INS) Principal and interest payments are insured by one of the following:
AMBAC Assurance Corp., Assured Guaranty Corp., Assured Guaranty
Municipal Corp., National Public Finance Guarantee Corp., or Radian
Asset Assurance, Inc. Although bond insurance reduces the risk of loss
due to default by an issuer, such bonds remain subject to the risk
that value may fluctuate for other reasons, and there is no assurance
that the insurance company will meet its obligations.
(LIQ) Liquidity enhancement that may, under certain circumstances, provide
for repayment of principal and interest upon demand from Dexia Credit
Local.
(LOC) Principal and interest payments are guaranteed by a bank letter of
credit or other bank credit agreement.
|
PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS
EDA Economic Development Authority
IDA Industrial Development Authority/Agency
PRE Prerefunded to a date prior to maturity
================================================================================
1 | USAA VIRGINIA BOND FUND
|
PORTFOLIO OF INVESTMENTS
USAA VIRGINIA BOND FUND
June 30, 2010 (unaudited)
----------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON FINAL VALUE
(000) SECURITY RATE MATURITY (000)
----------------------------------------------------------------------------------------------------
FIXED-RATE INSTRUMENTS (93.9%)
VIRGINIA (85.4%)
$ 3,305 Abingdon Town IDA 5.25% 7/01/2016 $ 3,310
1,360 Abingdon Town IDA 5.38 7/01/2028 1,360
2,500 Albemarle County IDA 5.00 1/01/2031 2,256
5,755 Alexandria IDA (INS) (PRE) 5.90 10/01/2020 5,891
12,480 Alexandria IDA (INS) (PRE) (a) 5.90 10/01/2030 12,775
1,000 Alexandria IDA 4.75 1/01/2036 1,001
1,000 Amherst IDA 5.00 9/01/2026 1,000
2,000 Amherst IDA 4.75 9/01/2030 1,883
15,000 Arlington County IDA 5.00 7/01/2031 15,308
5,310 Bedford County EDA (INS) 5.25 5/01/2031 5,496
8,065 Biotechnology Research Park Auth. (PRE) 5.00 9/01/2021 8,509
2,615 Capital Region Airport Commission (INS) 5.00 7/01/2031 2,723
6,215 College Building Auth. (PRE) 5.00 9/01/2019 6,264
6,530 College Building Auth. 5.00 9/01/2020 6,571
5,000 College Building Auth. 5.00 6/01/2029 4,702
11,710 College Building Auth. 5.00 6/01/2036 11,029
3,290 College Building Auth. (PRE) 5.00 6/01/2036 3,873
5,400 Commonwealth Housing Dev. Auth. 4.60 4/01/2028 5,415
4,005 Commonwealth Port Auth. 5.00 7/01/2030 4,206
3,715 Dinwiddie County IDA (INS) 5.00 2/15/2034 3,721
11,145 Fairfax (INS) 4.75 1/15/2035 11,468
1,255 Fairfax 4.75 1/15/2036 1,291
7,100 Fairfax County EDA 5.00 10/01/2027 7,067
12,700 Fairfax County EDA (INS) 5.00 4/01/2029 13,207
7,980 Fairfax County EDA 5.00 1/15/2030 8,313
6,150 Fairfax County EDA 5.00 4/01/2032 6,333
5,750 Fairfax County EDA 4.88 10/01/2036 4,873
7,500 Fairfax County EDA 5.13 10/01/2037 7,280
1,000 Fairfax County IDA 5.25 5/15/2026 1,076
2,000 Fairfax County Redevelopment and Housing Auth. 6.00 12/15/2028 2,002
5,770 Farms of New Kent Community Dev. Auth. 5.45 3/01/2036 4,260
12,275 Fauquier County IDA (INS) 5.25 10/01/2025 12,435
1,000 Fauquier County IDA 5.00 10/01/2027 980
8,825 Fauquier County IDA 5.25 10/01/2037 8,829
6,195 Frederick County IDA (INS) 4.75 6/15/2036 6,227
2,500 Fredericksburg City EDA 5.25 6/15/2023 2,704
7,500 Front Royal & Warren County IDA (INS) (a) 5.00 4/01/2029 7,690
9,030 Hampton (INS) 5.25 1/15/2023 9,451
9,000 Hampton Roads Sanitation District 5.00 4/01/2033 9,610
12,185 Hanover County IDA (INS) 6.38 8/15/2018 13,627
10,000 Harrisonburg IDA (INS) 4.50 8/15/2039 8,341
10,000 Henrico County 5.00 5/01/2036 10,481
3,200 Henrico County EDA 5.00 10/01/2027 3,113
400 Henrico County EDA (PRE) 5.60 11/15/2030 447
9,350 Henrico County EDA 5.60 11/15/2030 9,465
5,170 Henrico County EDA 5.00 10/01/2035 4,866
4,105 Housing Dev. Auth. 4.50 1/01/2039 3,903
3,500 Isle of Wight County IDA 5.85 1/01/2018 3,541
|
2 | USAA VIRGINIA BOND FUND
----------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON FINAL VALUE
(000) SECURITY RATE MATURITY (000)
----------------------------------------------------------------------------------------------------
$ 1,000 King George County IDA (INS) 5.00% 3/01/2032 $ 1,019
5,000 Lewistown Commerce Center Community Dev. Auth. (b) 5.75 3/01/2017 3,700
5,000 Lexington IDA (c) 5.00 12/01/2036 5,264
5,000 Marquis Community Dev. Auth. 5.63 9/01/2018 4,018
2,440 Montgomery County IDA (INS) (PRE) 5.50 1/15/2022 2,534
5,500 Montgomery County IDA 5.00 2/01/2029 5,794
5,245 Newport News EDA 5.00 7/01/2031 5,507
1,850 Norfolk Redevelopment and Housing Auth. 5.50 11/01/2019 1,894
5,000 Peninsula Town Center Community Dev. Auth. 6.45 9/01/2037 4,850
2,815 Powhatan County EDA (INS) 5.00 3/15/2032 2,879
1,620 Prince William County (INS) 5.00 9/01/2024 1,720
1,210 Prince William County IDA 5.50 10/01/2017 1,276
1,695 Prince William County IDA 5.00 10/01/2018 1,772
1,350 Prince William County IDA 5.50 10/01/2019 1,404
3,370 Prince William County IDA 4.88 1/01/2020 2,111
3,985 Prince William County IDA 5.38 10/01/2023 4,131
8,000 Prince William County IDA 5.13 1/01/2026 4,846
7,500 Prince William County IDA 5.50 10/01/2033 7,593
10,585 Public School Auth. (PRE) (a) 5.50 8/01/2020 10,739
5,310 Rappahannock Regional Jail Auth. (INS) 4.75 12/01/2031 5,357
6,280 Rappahannock Regional Jail Auth. (INS) 4.50 12/01/2036 6,318
1,790 Resources Auth. (PRE) 5.63 10/01/2022 1,814
3,945 Resources Auth. 4.75 11/01/2035 4,020
2,000 Resources Auth. 4.38 11/01/2036 1,964
2,150 Reynolds Crossing Community Dev. Auth. 5.10 3/01/2021 2,060
2,500 Richmond (INS) 4.50 1/15/2033 2,512
2,000 Richmond 5.00 1/15/2035 2,117
5,120 Roanoke County EDA (INS) 5.00 10/15/2027 5,474
2,850 Roanoke County EDA (INS) 5.00 10/15/2032 2,978
4,285 Roanoke County EDA (INS) 5.13 10/15/2037 4,474
1,500 Small Business Financing Auth. 5.25 9/01/2027 1,450
15,000 Small Business Financing Auth. 5.25 9/01/2037 13,839
7,000 Small Business Financing Auth. 5.00 11/01/2040 7,158
6,345 Spotsylvania County EDA (INS) 5.00 2/01/2031 6,507
7,400 Stafford County and City of Stauton IDA (INS) 5.25 8/01/2031 7,633
16,155 Stafford County and City of Stauton IDA (INS) 5.25 8/01/2036 16,543
10,000 Tobacco Settlement Financing Corp. 5.00 6/01/2047 6,456
10,850 Univ. of Virginia 5.00 6/01/2027 11,272
10,395 Virginia Beach (PRE) (a) 5.50 8/01/2025 10,442
1,000 Virginia Beach Dev. Auth. 6.15 7/01/2027 919
3,000 Virginia Port Auth. 5.00 7/01/2030 3,144
2,000 Virginia Port Auth. 5.00 7/01/2040 2,081
5,000 Watkins Centre Community Dev. Auth. 5.40 3/01/2020 4,875
3,000 Winchester IDA 5.63 1/01/2044 3,085
---------
497,716
---------
DISTRICT OF COLUMBIA (4.9%)
2,825 Metropolitan Airports Auth. 5.00 10/01/2029 2,983
12,465 Metropolitan Airports Auth. 5.00 10/01/2030 13,038
11,230 Metropolitan Airports Auth. 5.00 10/01/2039 11,548
1,000 Metropolitan Area Transit Auth. 5.13 7/01/2032 1,065
---------
28,634
---------
PUERTO RICO (3.6%)
6,180 Commonwealth (PRE) 5.25 7/01/2032 7,390
2,000 Electric Power Auth. 5.25 7/01/2028 2,047
11,000 Sales Tax Financing Corp. (c) 5.50 8/01/2040 11,144
---------
20,581
---------
Total Fixed-Rate Instruments (cost: $551,935) 546,931
---------
|
3 | USAA VIRGINIA BOND FUND
----------------------------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COUPON FINAL VALUE
(000) SECURITY RATE MATURITY (000)
----------------------------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTES (7.9%)
VIRGINIA (4.2%)
$ 1,500 Albemarle County IDA (LOC - SunTrust Bank) 0.43% 6/01/2037 $ 1,500
8,000 Fairfax County EDA (LOC - SunTrust Bank) 0.43 6/01/2037 8,000
15,000 Russell County IDA (LOC - Regions Bank) 0.90 7/01/2038 15,000
---------
24,500
---------
PUERTO RICO (3.7%)
8,855 Commonwealth (LIQ)(LOC - Dexia Credit Local) (d) 0.56 7/01/2041 8,855
8,000 Highway & Transportation Auth. (LIQ) (LOC -
Dexia Credit Local) (d) 0.41 7/01/2030 8,000
4,892 Sales Tax Financing Corp. (LIQ) (LOC - Dexia
Credit Local) (d) 0.60 8/01/2042 4,892
---------
21,747
---------
Total Variable-Rate Demand Notes (cost: $46,247) 46,247
---------
TOTAL INVESTMENTS (COST: $598,182) $ 593,178
=========
|
($ IN 000s) VALUATION HIERARCHY
-------------------
(LEVEL 1)
QUOTED PRICES (LEVEL 2)
IN ACTIVE OTHER (LEVEL 3)
MARKETS SIGNIFICANT SIGNIFICANT
FOR IDENTICAL OBSERVABLE UNOBSERVABLE
ASSETS INPUTS INPUTS TOTAL
----------------------------------------------------------------------------------------------------
FIXED-RATE INSTRUMENTS $ -- $ 543,231 $ 3,700 $ 546,931
VARIABLE-RATE DEMAND NOTES -- 46,247 -- 46,247
----------------------------------------------------------------------------------------------------
Total $ -- $ 589,478 $ 3,700 $ 593,178
----------------------------------------------------------------------------------------------------
|
RECONCILIATION OF INVESTMENTS IN WHICH SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
WERE USED IN DETERMINING VALUE:
--------------------------------------------------------------------------------------------------
FIXED-RATE INSTRUMENTS
--------------------------------------------------------------------------------------------------
Balance as of March 31, 2010 $ 0
Net realized gain (loss) -
Change in net unrealized appreciation/depreciation (877)
Net purchases (sales) -
Transfers in 4,577
Transfers out -
--------------------------------------------------------------------------------------------------
Balance as of June 30, 2010 $3,700
--------------------------------------------------------------------------------------------------
|
For the period ended June 30, 2010, there were no significant transfers of
securities between levels 1 and 2. The Fund's policy is to recognize transfers
into and out of the levels as of the beginning of the period in which the event
or circumstance that caused the transfer occurred.
PORTFOLIO OF INVESTMENTS | 4
NOTES TO PORTFOLIO OF INVESTMENTS
June 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
Virginia Bond Fund (the Fund), which is classified as diversified under the 1940
Act.
A. SECURITY VALUATION -- The value of each security is determined (as of the
close of trading on the New York Stock Exchange (NYSE) on each business day the
NYSE is open) as set forth below:
1. Debt securities with maturities greater than 60 days are valued each business
day by a pricing service (the Service) approved by the Trust's Board of
Trustees. The Service uses an evaluated mean between quoted bid and asked prices
or the last sales price to price securities when, in the Service's judgment,
these prices are readily available and are representative of the securities'
market values. For many securities, such prices are not readily available. The
Service generally prices these securities based on methods that include
consideration of yields or prices of tax-exempt securities of comparable
quality, coupon, maturity, and type; indications as to values from dealers in
securities; and general market conditions.
2. Debt securities purchased with original or remaining maturities of 60 days or
less may be valued at amortized cost, which approximates market value. This
includes variable rate demand notes with rate-reset dates of 60 days or less.
3. Securities for which market quotations are not readily available or are
considered unreliable, or whose values have been materially affected by events
occurring after the close of their primary markets but before the pricing of the
Fund, are valued in good faith at fair value, using methods determined by USAA
Investment Management Company (the Manager), an affiliate of the Fund, under
valuation procedures approved by the Trust's Board of Trustees. The effect of
fair value pricing is that securities may not be priced on the basis of
quotations from the primary market in which they are traded and the actual price
realized from the sale of a security may differ materially from the fair value
price. Valuing these securities at fair value is intended to cause the Fund's
net asset value (NAV) to be more reliable than it otherwise would be.
Fair value methods used by the Manager include, but are not limited to,
obtaining market quotations from secondary pricing services, broker-dealers, or
widely used quotation systems. General factors considered in determining the
fair value of securities include fundamental analytical data, the nature and
duration of any restrictions on disposition of the securities, and an evaluation
of the forces that influenced the market in which the securities are purchased
and sold.
5 | USAA VIRGINIA BOND FUND
B. FAIR VALUE MEASUREMENTS -- Fair value is defined as the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The three-level
valuation hierarchy disclosed in the portfolio of investments is based upon the
transparency of inputs to the valuation of an asset or liability as of the
measurement date. The three levels are defined as follows:
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) in
active markets for identical securities.
Level 2 - inputs to the valuation methodology are other significant observable
inputs, including quoted prices for similar securities, inputs that are
observable for the securities, either directly or indirectly, and
market-corroborated inputs such as market indices. The Fund uses amortized cost
in valuing variable rate demand notes and a market approach in valuing fixed
rate instruments, which is further discussed in Note A1. Additionally the
portfolio of investments includes quantitative input information, such as coupon
rates, maturity dates, and credit enhancements.
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 at the end of
the period, market quotations from the pricing services were not determinative
of fair value. 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. These unobservable inputs included risk premium adjustments
reflecting the amount the Manager assumed market participants would demand
because of the risk (uncertainty) in the cash flows from the securities and
other information related to the securities such as current yields, economic
conditions, and any other relevant information. Refer to the portfolio of
investments for a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value.
C. SECURITIES PURCHASED ON A DELAYED-DELIVERY OR WHEN-ISSUED BASIS -- Delivery
and payment for securities that have been purchased by the Fund on a
delayed-delivery or when-issued basis can take place a month or more after the
trade date. During the period prior to settlement, these securities do not earn
interest, are subject to market fluctuation, and may increase or decrease in
value prior to their delivery. The Fund maintains segregated assets with a
market value equal to or greater than the amount of its purchase commitments.
The purchase of securities on a delayed-delivery or when-issued basis may
increase the volatility of the Fund's NAV to the extent that the Fund makes such
purchases while remaining substantially fully invested. As of June 30, 2010, the
Fund's outstanding delayed-delivery commitments, including interest purchased,
were $16,252,000; which included when-issued securities of $11,000,000.
D. As of June 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
NOTES TO PORTFOLIO OF INVESTMENTS | 6
depreciation of investments as of June 30, 2010, were $13,344,000 and
$18,348,000, respectively, resulting in net unrealized depreciation of
$5,004,000.
E. The portfolio of investments category percentages shown represent the
percentages of the investments to net assets, which were $582,758,000 at June
30, 2010, and, in total, may not equal 100%. A category percentage of 0.0%
represents less than 0.1% of net assets.
SPECIFIC NOTES
(a) At June 30, 2010, portions of these securities were segregated to cover
delayed-delivery and/or when-issued purchases.
(b) Security was fair valued at June 30, 2010, by the Manager in accordance
with valuation procedures approved by the Trust's Board of Trustees.
(c) At June 30, 2010, the aggregate market value of securities purchased on a
delayed-delivery basis was $16,408,000, which included when-issued
securities of $11,144,000.
(d) Restricted security that is not registered under the Securities Act of
1933. A resale of this security in the United States may occur in an
exempt transaction to a qualified institutional buyer as defined by Rule
144A, and as such has been deemed liquid by the Manager under liquidity
guidelines approved by the Trust's Board of Trustees, unless otherwise
noted as illiquid.
NOTES TO PORTFOLIO OF INVESTMENTS | 7
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 June 30, 2010
By:* /s/ CHRISTOPHER P. LAIA
--------------------------------------------------------------
Signature and Title: Christopher P. Laia, Secretary
Date: 08/25/2010
-------------------------------
|
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: 08/25/2010
------------------------------
By:* /s/ ROBERTO GALINDO, JR.
-----------------------------------------------------
Signature and Title: Roberto Galindo, Jr., Treasurer
Date: 08/25/2010
------------------------------
|
*PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.
Usaa Treasury Money Market Trust (NASDAQ:UATXX)
Historical Stock Chart
From May 2024 to Jun 2024
Usaa Treasury Money Market Trust (NASDAQ:UATXX)
Historical Stock Chart
From Jun 2023 to Jun 2024
