USAA USAA INVESTMENT TRUST
EAGLE GROWTH STRATEGY FUND
LOGO
SUPPLEMENT DATED JULY 1, 1999
TO THE PROSPECTUS
DATED OCTOBER 1, 1998
On October 1, 1999, the Growth Strategy Fund's asset allocation percentage
target ranges will be revised in accordance with action taken by the Board of
Trustees at its meeting on June 23, 1999. The new percentage target ranges are
as follows:
PERCENTAGE TARGET RANGE
OF NET ASSETS
INVESTMENT CATEGORY OLD NEW
------------------- --- ---
LARGE CAP STOCKS 25-35% 40-75%
SMALL CAP STOCKS 25-35% 0-20%
INTERNATIONAL STOCKS 15-25% 10-30%
BONDS 15-25% 10-35%
MONEY MARKET INSTRUMENTS 0-10% 0-20%
The Fund's portfolio will be adjusted to the new target ranges within 45 days
after October 1, 1999. The 45-day period to adjust the portfolio is intended to
minimize portfolio disruption and permit the Fund to purchase and sell
securities at the most advantageous prices.
Additionally, the first and second Q&As under the "Large Cap Stocks" section
and the "Small Cap Stocks" section on pages 8-9 of the prospectus are revised
as follows:
Large Cap Stocks
Q What defines Large Cap Stocks?
A Large Cap Stocks are those of companies that have a market
capitalization larger than the largest market capitalization stock in
the S&P SmallCap 600 Index at the time of purchase. As of June 30, 1999,
the largest company in the S&P SmallCap 600 Index had a market
capitalization of $2.58 Billion. Keep in mind that the market
capitalization of the companies listed in the index may change with
market conditions and the composition of the index. They may include
real estate investment trusts (REITs).
Q Will the Fund continue to hold such securities if their market
capitalization falls below the benchmark?
A The Fund may continue to hold or purchase more of a security of a
company whose market capitalization has declined below the largest
market capitalization stock of the S&P SmallCap 600 Index. Ordinarily,
we would continue to treat the security as a large cap stock; although
we may, in our discretion, reclassify the security as a small cap stock
or limit the Fund's holdings in such security if we determine it to be
in the best interest of the Fund.
Small Cap Stocks
Q What defines Small Cap Stocks?
A Small Cap Stocks are those of companies that have a market
capitalization equal to or lower than that of the largest market
capitalization stock in the S&P SmallCap 600 Index at the time of
purchase. They may include real estate investment trusts (REITs).
Q Will the Fund continue to hold these securities if their market
capitalization increases above the benchmark?
A Similar to the Large Cap Stocks category, the Fund may continue to hold
or purchase more of a security of a company whose market capitalization
has increased above the largest market capitalization stock in the S&P
SmallCap 600 Index. Ordinarily, we would continue to treat the security
as a small cap stock; although we may, in our discretion, reclassify the
security as a large cap stock or limit the Fund's holdings in such
security if we determine it to be in the best interest of the Fund.
34350-0799
