USAA USAA INVESTMENT TRUST
EAGLE CORNERSTONE STRATEGY FUND
LOGO
SUPPLEMENT DATED MAY 10, 1999
TO THE PROSPECTUS
DATED OCTOBER 1, 1998
On July 15, 1999, the Cornerstone Strategy Fund's asset allocation investment
categories and target ranges will be revised in accordance with action taken by
the Board of Trustees at its meeting on May 6, 1999. The new investment
categories and percentage target ranges are as follows:
PERCENTAGE TARGET RANGE
OF NET ASSETS
INVESTMENT CATEGORY OLD NEW
BASIC VALUE STOCKS 22-28% 0%
U.S. STOCKS 0% 25-55%
INTERNATIONAL STOCKS 22-28% 25-35%
U.S. GOVERNMENT SECURITIES 22-28% 15-30%
REAL ESTATE SECURITIES 22-28% 5-20%
GOLD SECURITIES 0-10% 0-10%
The Fund's portfolio will be adjusted to the new target ranges at any time
within 45 days after July 15, 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.
The "Basic Value Stocks" category of investments has been replaced by the new
"U.S. Stocks" category and will continue to be managed by R. David Ullom. The
answer to the third Q and A on page 6 of the prospectus is changed to reflect
that the U.S. Stocks category was selected to provide appreciation.
Additionally, the "Basic Value Stocks" section of the prospectus on page 8 is
replaced by the following:
U.S. Stocks
Q What types of U.S. Stocks will be included in the Fund's portfolio?
A The Fund's portfolio will consist of a blend of growth and value stocks
of companies organized under the laws of a state or territory of the
United States.
MARKET RISK. Because this Fund invests in stocks, it is subject to stock market
risk. Stock prices in general may decline over short or even extended periods,
regardless of the success or failure of a company's operations. Stock markets
tend to run in cycles, with periods when stock prices generally go up, known as
"bull" markets, and periods when stock prices generally go down, referred to as
"bear" markets. Stocks tend to go up and down more than bonds.
Q How are the decisions to buy and sell U.S. Stocks made?
A The factors we evaluate to select stocks include:
* company's competitive position,
* management's abilities,
* company's growth prospects,
* company's financial position,
* above factors relative to the stock's current price.
The process of selling a stock begins when one or more of these factors
changes for the worse.
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