Table of Contents
USAA Family of Funds 1
Message from the President 2
Investment Review 4
Message from the Managers 5
Shareholder Voting Results 9
Financial Information
Portfolio of Investments 10
Notes to Portfolio of Investments 20
Statement of Assets and Liabilities 21
Statement of Operations 22
Statements of Changes in Net Assets 23
Notes to Financial Statements 24
Important Information
Through our ongoing efforts to reduce expenses and respond to shareholder
requests, your annual and semiannual report mailings are streamlined. One copy
of each report is sent to each address, rather than to every registered owner.
For many shareholders and their families, this eliminates duplicate copies,
saving paper and postage costs to the Fund.
If you are the primary shareholder on at least one account, prefer not to
participate in streamlining, and would like to continue receiving one report per
registered account owner, you may request this in writing to:
USAA Investment Management Company
Attn: Report Mail
9800 Fredericksburg Road
San Antonio, TX 78284-8916
or phone a mutual fund representative at 1-800-531-8448 during business hours.
This report is for the information of the shareholders and others who have
received a copy of the currently effective prospectus of the USAA World Growth
Fund, managed by USAA Investment Management Company (IMCO). It may be used as
sales literature only when preceded or accompanied by a current prospectus which
gives further details about the Fund.
USAA with the eagle is registered in the U.S. Patent & Trademark Office.
(Copyright)2000, USAA. All rights reserved.
USAA Family of Funds Summary
Fund Minimum
Type/Name Volatility Investment
--------- ---------- ----------
CAPITAL APPRECIATION
===============================================================================
Aggressive Growth Very high $3,000
Emerging Markets Very high $3,000
First Start Growth Moderate to high $3,000
Gold Very high $3,000
Growth Moderate to high $3,000
Growth & Income Moderate $3,000
International Moderate to high $3,000
S&P 500 (Registered Trademark)
Index Moderate $3,000
Science & Technology Very high $3,000
Small Cap Stock Very high $3,000
World Growth Moderate to high $3,000
ASSET ALLOCATION
===============================================================================
Balanced Strategy Moderate $3,000
Cornerstone Strategy Moderate $3,000
Growth and Tax
Strategy Moderate $3,000
Growth Strategy Moderate to high $3,000
Income Strategy Low to moderate $3,000
INCOME - TAXABLE
===============================================================================
GNMA Low to moderate $3,000
High-Yield
Opportunities High $3,000
Income Moderate $3,000
Income Stock Moderate $3,000
Intermediate-Term
Bond Low to moderate $3,000
Short-Term Bond Low $3,000
INCOME - TAX EXEMPT
===============================================================================
Long-Term Moderate $3,000
Intermediate-Term Low to moderate $3,000
Short-Term Low $3,000
State Bond Income Moderate $3,000
MONEY MARKET
===============================================================================
Money Market Very low $3,000
Tax Exempt
Money Market Very low $3,000
Treasury Money
Market Trust Very low $3,000
State Money Market Very low $3,000
- -------------------------------------------------------------------------------
Foreign investing is subject to additional risks, which are discussed in the
funds' prospectuses.
S&P 500(Registered Trademark) is a trademark of The McGraw-Hill Companies,
Inc. and has been licensed for use. The Product is not sponsored, sold or
promoted by Standard & Poor's, and Standard & Poor's makes no representation
regarding the advisability of investing in the Product.
Some income may be subject to state or local taxes or the federal alternative
minimum tax.
An investment in a money market fund is not insured or guaranteed by the FDIC or
any other government agency. Although the fund seeks to preserve the value of
your investment at $1 per share, it is possible to lose money by investing in
the fund.
The Science & Technology Fund may be more volatile than a fund that diversifies
across many industries.
The InveStart(Registered Trademark) program is available for investors without
the $3,000 initial investment required to open an IMCO mutual fund account. A
mutual fund account can be opened with no initial investment if you elect to
have monthly automatic investments of at least $50 from a bank account.
InveStart is not available on tax-exempt funds or the S&P 500 Index Fund. The
minimum initial investment for IRAs is $250, except for the $2,000 minimum
required for the S&P 500 Index Fund. IRAs are not available for tax-exempt
funds. The Growth and Tax Strategy Fund is not available as an investment for
your IRA because the majority of its income is tax exempt.
California, Florida, New York, Texas, and Virginia funds available to residents
only.
Nondeposit investment products are not insured by the FDIC, are not deposits or
other obligations of, or guaranteed by, USAA Federal Savings Bank, are subject
to investment risks, and may lose value.
For more complete information about the mutual funds managed and distributed by
USAA Investment Management Company, including charges and operating expenses,
please call 1-800-531-8181 for a prospectus. Read it carefully before you
invest.
Message from the President
[Photograph of the President and Vice Chairman of the Board, Michael J.C. Roth,
CFA, appears here]
As I write this message, I am also in the process of preparing to lead a panel
on personal finance at the Greater San Antonio Chamber of Commerce's annual
conference on economic development. As we enter 2000, I have asked my fellow
panelists to look back to what they consider to be the key lessons they have
learned in careers that all span at least 25 years in investments.
The incident and the person I have chosen is the visit of a well-known equity
strategist from one of the major investment bankers to San Antonio in the spring
of 1982. I should remind you what the spring of 1982 was like. The market had
not yet shaken off the effects of repeated, arbitrary increases in the price of
oil; the roaring inflation which followed; and the highest U.S. interest rates
since the Civil War. Stocks and bonds had not yet come off their worst
performance since World War II. Against this backdrop, that well-known equity
strategist delivered a magnificent after-dinner presentation. He plucked facts
and figures from a wide variety of sources and wove them into a compelling
argument. His conclusion was clear: "Stay out of this market!" He was brilliant.
He was dead wrong. That summer saw the beginning of the greatest bull market for
both stocks and bonds in U.S. history.
This incident has greatly influenced my thinking and my career. It taught me
these things:
- It is best to base investment strategy on something other than a
forecast of the market.
- If you insist on forecasting the market, it doesn't help to make the
the little calls. You absolutely must be right at times like spring of
1982.
- If you use an asset allocation approach to investing, your chances of
being in at a major turning point are 100%.
That is why I believe in the asset allocation approach of our strategy funds.
Sincerely,
Michael J.C. Roth, CFA
President and
Vice Chairman of the Board
Past performance is no guarantee of future results.
For more complete information about the mutual funds managed and distributed by
USAA Investment Management Company, including charges and operating expenses,
please call for a prospectus. Read it carefully before investing.
Investment Review
USAA WORLD GROWTH FUND
OBJECTIVE: Capital appreciation.
TYPES OF INVESTMENTS: Invests principally in a mix of foreign and domestic
equity securities.
- --------------------------------------------------------------------------------
11/30/99 5/31/99
- --------------------------------------------------------------------------------
Net Assets $365.9 Million $326.7 Million
Net Asset Value Per Share $19.93 $18.11
- --------------------------------------------------------------------------------
Average Annual Total Returns as of 11/30/99
- --------------------------------------------------------------------------------
5/31/99 to 11/30/99(+) 1 Year 5 Years Since Inception on 10/1/92
14.63% 28.06% 14.94% 14.17%
- --------------------------------------------------------------------------------
(+) Total returns for periods of less than one year are not annualized. This
six-month return is cumulative.
Total return equals income yield plus share price change and assumes
reinvestment of all dividends and capital gains distributions. No adjustment has
been made for taxes payable by shareholders on their reinvested income dividends
and capital gains distributions. The performance data quoted represent past
performance and are not an indication of future results. Investment return and
principal value of an investment will fluctuate, and an investor's shares, when
redeemed, may be worth more or less than their original cost.
CUMULATIVE PERFORMANCE COMPARISON
A chart in the form of a line graph appears here, illustrating the comparison of
a $10,000 hypothetical investment in the USAA World Growth Fund, the Morgan
Stanley Capital Index (MSCI)-World, and the Lipper Global Funds Average for the
period of 10/01/92 through 11/30/99. The data points from the graph are as
follows:
USAA World MSCI Lipper
Growth Fund Index Average
------------- ----------- -----------
10/01/92 $10,000 $10,000 $10,000
11/30/92 10,140 9,897 10,091
05/31/93 11,260 11,586 11,471
11/30/93 11,859 11,651 12,517
05/31/94 12,773 12,700 13,428
11/30/94 12,885 12,718 13,396
05/31/95 13,317 14,020 14,211
11/30/95 14,114 15,061 15,151
05/31/96 16,303 16,516 16,908
11/30/96 17,172 17,877 17,892
05/31/97 18,998 19,332 19,536
11/30/97 19,282 20,118 19,987
05/31/98 22,092 23,201 23,193
11/30/98 20,181 24,139 22,276
05/31/99 22,547 26,249 23,793
11/30/99 25,844 29,262 27,670
Data since inception on 10/01/92 through 11/30/99
The graph illustrates the comparison of a $10,000 hypothetical investment in the
USAA World Growth Fund to its benchmark, the Morgan Stanley Capital Index
(MSCI)-World, an unmanaged index which reflects the movements of world stock
markets by representing a broad selection of domestically listed companies
within each market, and the Lipper Global Funds Average, an average performance
level of all global funds, as reported by Lipper Analytical Services, Inc., an
independent organization that monitors the performance of mutual funds.
Message from the Managers
[Photograph of Portfolio Managers, Curt Rohrman, CFA (Domestic Securities);
Kevin P. Moore (Foreign Securities); Albert C. Sebastian, CFA, (Foreign
Securities); and David G. Peebles, CFA (Allocation Manager and Foreign
Securities); appears here.]
MARKET CONDITIONS
For the six-month period ending November 30, 1999, your Fund's total return was
14.63% compared with the Lipper Global Funds Average return of 15.63% and the
Morgan Stanley Capital Index (MSCI)-World return of 10.84%. The Fund's
performance was negatively impacted by its underweighted position in Japan and
other Asian markets, while holdings in telecommunications and technology
benefited performance for the period.
EUROPE
In Europe, rising interest rates as well as weak currencies negatively impacted
equity returns. An improved profit outlook and stronger economic growth
positively impacted performance. Telecommunications and technology stocks were
the best-performing issues, with media and mining stocks also performing well.
However, auto-related and interest-rate-sensitive stocks performed poorly for
the period.
CANADA
Canada was a mixed bag with telecommunications and technology performing well,
while financial stocks were relatively weak. Energy stocks were also mixed
despite higher energy prices.
JAPAN
The market continued to be very strong during the last six months due mainly to
global popularity of telecommunications and technology stocks. Growth stocks
continued to outperform value stocks due to the secular transformation of the
Japanese economy -- from manufacturing to service. The other focus of the market
this year has been corporate restructuring, which we expect to continue next
year. Consolidation of the banking sector should continue which would, in turn,
bring more efficient credit usage. The yen turned around after the middle of the
year with expectation of a stronger Japanese economic recovery. The Organization
for Economic Cooperation and Development (OECD) recently revised this year's and
next year's gross domestic product (GDP) growth from -0.9% to +1.4%, and from 0%
to +1.4%, respectively. The current Obuchi administration appears to be very
solid, and we expect no political turmoil to take place in the next six months.
Our overweighting in the technology and telecommunications sectors positively
impacted our performance this year.
EMERGING MARKETS
Most of the regional markets suffered a pullback in the midsummer months and
all, except for some Eastern European markets, experienced strong rallies
beginning in late September. Over the past six months, emerging markets have
retained or added to most of the gains they experienced since the lows during
the Russian and Asian crises of late 1998. Expectations for the Asian economies
continued to rise during the last six months while concerns lingered regarding
Eastern European economies. Commodity price increases and interest-rate declines
continue to support a rebound in the South African economy. The Latin markets
have also rebounded as concerns about presidential elections in Mexico and
economic concerns in Brazil have receded.
UNITED STATES
U.S. stocks performed well through the period despite rising interest rates. A
combination of strong domestic economic growth, continued low inflation, and
recovering overseas economies provided a healthy environment for accelerating
earnings growth. Technology stocks were exceptional, driven by spending on
Internet infrastructure and services, wireless equipment, and year 2000
preparations. In fact, of the 11 sectors comprising the S&P 500 Index, only the
technology sector and communications services sector outperformed the index.
Seven of the 11 sectors experienced negative absolute returns during the period.
Domestic holdings benefited from an overweighted position in technology. Stocks
providing particularly good performance include Oracle, Applied Materials, Texas
Instruments, Cisco Systems, Analog Devices, and Intel. In other areas, Amgen,
Morgan Stanley Dean Witter & Co., and General Electric helped returns. Several
consumer-oriented holdings posted significant declines during the period: Avon
Products, Mattel, Pepsi Bottling Group, Keebler Foods, Freddie Mac, and CVS.
OUTLOOK
We continue to be encouraged by the strength of the global economy and continue
to view Europe positively. European valuations still look relatively attractive,
and interest rates in Europe have the potential to decline based on a benign
inflation outlook. The value of the Eurodollar could stabilize -- or possibly
move higher -- as the economic growth patterns in the U.S. and Europe converge
next year. We are comfortable with our energy exposure, as the fundamental
values of the stocks do not reflect current energy prices. In Japan, the market
will continue to be led by telecommunications and technology sectors as well as
by large-capitalization growth stocks. Next year a combination of falling
interest rates and increased global growth provides the potential for a positive
backdrop for emerging markets.
In the United States, we believe the prospects for lower interest rates are
minimal and the best inflation news is probably behind us. Evidence includes
persistent economic growth, early signs of labor shortages, and a weakening U.S.
dollar. In such an environment, valuations are unlikely to expand, while
earnings expectations for year 2000 may prove to be somewhat optimistic. We
currently favor international markets to the U.S. market.
Past performance is no guarantee of future results.
Refer to the bottom of page 4 for the Lipper Average and the MSCI-World
definitions.
Top 10 Equity Holdings Top 10 Industries
(% of Net Assets) (% of Net Assets)
- -------------------------------------- -------------------------------------
Nokia Corp. ADR 1.9 Telephones 6.9
America Online, Inc. 1.6 Banks - Major Regional 5.8
Microsoft Corp. 1.4 Drugs 5.7
Total Fina SA ADR 1.4 Computer Software & Service 4.9
Cisco Systems, Inc. 1.3 Communication Equipment 4.3
Clear Channel Communications, Inc. 1.3 Insurance - Multiline Companies 3.9
General Electric 1.3 Electronics - Semiconductors 3.5
Nortel Networks Corp. 1.3 Oil - International Integrated 2.7
Dayton Hudson 1.2 Electrical Equipment 2.5
Telefonica SA ADR 1.2 Beverages - Nonalcoholic 2.5
See page 10 for a complete listing of the portfolio of investments.
ASSET ALLOCATION
11/30/99
A pie chart is shown here depicting the Asset Allocation as of November 30, 1999
of the USAA World Growth Fund to be:
United States - 39.8%; Other - 22.0% (Countries with less than 3.0% of the
portfolio and U.S. Government & Agency Issue); United Kingdom - 10.9%; Japan -
8.5%; Netherlands - 6.2%; France - 5.0%; Canada - 4.5%; and Finland - 3.4%.
Percentages are of the net assets in the portfolio and may or may not equal
100%.
Foreign investing is subject to additional risks, such as currency fluctuations,
market illiquidity, and political instability.
Shareholder Voting Results
On October 15, 1999, a special meeting of shareholders was held to vote on the
following proposals. All proposals were approved by the shareholders. All
shareholders of record on August 19, 1999, were entitled to vote on each
proposal. The number of votes shown below are for the entire series of the USAA
Investment Trust (the Trust) for proposals 1 and 2.
1 Proposal to elect Trustees as follows:
Trustees Votes For Votes Withheld
Robert G. Davis 181,888,787 2,690,901
Michael J.C. Roth 181,881,641 2,698,047
David G. Peebles 181,888,787 2,690,901
Robert L. Mason 181,888,787 2,690,901
Michael F. Reimherr 181,883,427 2,696,261
Richard A. Zucker 181,875,813 2,696,966
Barbara B. Dreeben 181,883,427 2,696,261
John W. Saunders, Jr. and Howard L. Freeman, Jr. did not stand for re-election
to the Board. Their term of office will terminate on December 31, 1999.
2 Proposal to ratify the selection by the Board of Trustees of KPMG LLP as
auditors for the Trust for the fiscal year ending May 31, 2000.
Number of Shares Voting
- --------------------------------------------------------------------------------
For Against Abstain
179,181,697 2,930,888 2,467,103
USAA WORLD GROWTH FUND
PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
Market
Number Value
of Shares Security (000)
- --------------------------------------------------------------------------------
FOREIGN SECURITIES (60.5%)
FOREIGN STOCKS (60.4%)
Argentina (0.1%)
15,093 IRSA Inversiones y Representaciones S.A. GDR $ 482
- --------------------------------------------------------------------------------
Austria (1.0%)
9,000 Bank Austria AG 476
25,700 Boehler Uddeholm AG 1,077
33,700 VA Flughafen Wien AG 1,172
17,500 VA Technologie AG 1,073
- --------------------------------------------------------------------------------
3,798
- --------------------------------------------------------------------------------
Brazil (0.5%)
19,600 Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR 523
32,900 Panamerican Beverages, Inc. "A" 617
3,200,000 Petroleo Brasileiro S.A. (Preferred) 647
- --------------------------------------------------------------------------------
1,787
- --------------------------------------------------------------------------------
Canada (4.5%)
153,200 Anderson Exploration Ltd. * 1,707
42,000 Canadian Imperial Bank of Commerce 935
103,800 Canadian National Railway Co. 3,107
114,100 Canadian Occidental Petroleum Ltd. 2,204
61,800 Nortel Networks Corp. 4,573
58,500 Suncor Energy, Inc. 2,208
69,400 Toronto-Dominion Bank 1,674
- --------------------------------------------------------------------------------
16,408
- --------------------------------------------------------------------------------
Chile (0.1%)
636 Sociedad Quimica y Minera de Chile S.A. ADR "A" 18
11,000 Sociedad Quimica y Minera de Chile S.A. ADR "B" 313
- --------------------------------------------------------------------------------
331
- --------------------------------------------------------------------------------
China (0.3%)
49,600 China Telecom Ltd. * 265
629,000 Cosco Pacific Ltd. 514
306,000 New World Infrastructure Ltd. * 345
- --------------------------------------------------------------------------------
1,124
- --------------------------------------------------------------------------------
Denmark (2.0%)
18,200 ISS International Service System A/S "B" * 1,060
70,600 SAS Danmark A/S 727
43,500 Tele Danmark A/S "B" 2,805
37,700 Unidanmark A/S 2,859
- --------------------------------------------------------------------------------
7,451
- --------------------------------------------------------------------------------
Egypt (0.1%)
27,100 Suez Cement Co. S.A.E. GDR 438
- --------------------------------------------------------------------------------
Finland (3.4%)
527,200 Merita plc "A" 3,177
95,677 Metso OYJ * 1,036
49,300 Nokia Corp. ADR 6,813
41,800 Sampo Insurance Co. "A" 1,369
- --------------------------------------------------------------------------------
12,395
- --------------------------------------------------------------------------------
France (5.0%)
6,900 Accor S.A. 1,567
35,005 CNP Assurances 1,146
46,000 Coflexip ADR 1,857
21,000 Eramet Group 1,164
13,130 ISIS S.A. 793
34,000 Renault S.A. 1,495
22,700 Rhodia 414
31,200 Rhone Poulenc S.A. 1,934
33,140 SEITA 1,703
74,974 Total Fina S.A. 4,958
17,000 Valeo S.A. 1,139
- --------------------------------------------------------------------------------
18,170
- --------------------------------------------------------------------------------
Germany (2.2%)
49,800 Continental AG 994
51,200 Hoechst AG 2,523
54,600 Merck KGaA 1,596
62,250 Veba AG 3,042
- --------------------------------------------------------------------------------
8,155
- --------------------------------------------------------------------------------
Greece (0.3%)
29,900 Hellenic Telecommunications Organization S.A. (OTE) 641
37,970 National Bank of Greece S.A. GDR 531
- --------------------------------------------------------------------------------
1,172
- --------------------------------------------------------------------------------
Hong Kong (0.2%)
60,000 Hutchison Whampoa Ltd. 740
- --------------------------------------------------------------------------------
Hungary (0.1%)
11,000 Magyar Tavkozlesi RT. (MATAV) ADR 332
- --------------------------------------------------------------------------------
India (0.3%)
44,900 Videsh Sanchar Nigam Ltd. GDR 1,033
- --------------------------------------------------------------------------------
Israel (0.2%)
158,872 Bank Hapoalim Ltd. 419
24,300 Blue Square - Israel Ltd. ADR 298
- --------------------------------------------------------------------------------
717
- --------------------------------------------------------------------------------
Italy (2.7%)
37,400 ENI S.p.A. ADR 2,024
27,500 Gucci Group N.V. 2,290
439,000 Italgas S.p.A. 1,725
89,800 Telecom Italia S.p.A. 990
520,700 Telecom Italia S.p.A. Savings 2,807
- --------------------------------------------------------------------------------
9,836
- --------------------------------------------------------------------------------
Japan (8.5%)
63,000 Daibiru Corp. 441
166 East Japan Railway Co. 979
3,700 Internet Initiative Japan, Inc. ADR * 353
19,000 Ito-Yokado Co. Ltd. 2,053
125,000 Kikkoman Corp. 965
63,000 Kirin Brewery Co. Ltd. 730
5,000 Nichii Gakkan Co. 1,032
162,000 Nikko Securities Co. Ltd. 2,021
528,000 Nippon Steel Corp. 1,193
126 Nippon Telegraph & Telephone Corp. (NTT) 2,265
50 NTT Mobile Communication Network, Inc. 1,758
35,000 Ono Pharmaceutical Co. Ltd. 1,111
30,000 Paris Miki, Inc. 2,720
20,300 Sanix Inc. 2,254
143,000 Sharp Corp. 2,929
2,400 Softbank Corp. 1,738
14,700 Sony Corp. 2,729
120,000 Sumitomo Electric Industries, Ltd. 1,363
210,000 Toshiba Corp. 1,549
15,600 Toyota Motor Corp. 1,060
- --------------------------------------------------------------------------------
31,243
- --------------------------------------------------------------------------------
Korea (0.6%)
19,643 Korea Telecom Corp. ADR * 1,041
24,200 Samsung Corp. * 503
2,418 Samsung Electronics Co. Ltd. 501
- --------------------------------------------------------------------------------
2,045
- --------------------------------------------------------------------------------
Malaysia (0.3%)
240,000 Genting Bhd 834
275,000 Malaysia International Shipping Corp. Bhd 409
- --------------------------------------------------------------------------------
1,243
- --------------------------------------------------------------------------------
Mexico (0.4%)
7,400 Telefonos de Mexico, S.A. de C.V. ADR 685
67,000 Tubos de Acero de Mexico, S.A. ADR 842
- --------------------------------------------------------------------------------
1,527
- --------------------------------------------------------------------------------
Netherlands (6.2%)
76,400 Akzo Nobel N.V. 3,272
52,200 Benckiser N.V. "B" 3,183
21,000 EVC International N.V. * 225
48,800 Fortis NL N.V. 1,674
56,550 ING Group N.V. 3,183
40,700 Koninklijke KPN N.V. 2,268
27,416 Koninklijke Philips Electronics N.V. ADR 3,276
50,600 Oce-van der Grinten N.V. 882
54,900 Versatel Telecom * 1,549
37,100 VNU N.V. 1,471
69,700 Vopak Kon * 1,837
- --------------------------------------------------------------------------------
22,820
- --------------------------------------------------------------------------------
Norway (1.7%)
634,800 Christiania Bank og Kreditkasse 2,930
55,600 Schibsted ASA 848
262,000 Storebrand ASA * 1,837
169,600 Tandberg Data ASA * 419
- --------------------------------------------------------------------------------
6,034
- --------------------------------------------------------------------------------
Philippines (0.1%)
1,600,000 SM Prime Holdings, Inc. 254
- --------------------------------------------------------------------------------
Portugal (1.5%)
97,656 Banco Pinto & Sotto Mayor S.A. 2,096
144,000 Brisa-Auto Estradas de Portugal S.A. 1,065
45,900 Portugal Telecom S.A. ADR 2,203
- --------------------------------------------------------------------------------
5,364
- --------------------------------------------------------------------------------
Russia (0.1%)
10,000 LUKoil ADR 340
- --------------------------------------------------------------------------------
Singapore (0.2%)
54,000 DBS Group Holdings, Ltd. 700
- --------------------------------------------------------------------------------
South Africa (0.2%)
34,462 South African Breweries plc 324
164,000 Standard Bank Investment Corp. Ltd. 573
- --------------------------------------------------------------------------------
897
- --------------------------------------------------------------------------------
Spain (2.3%)
108,716 Argentaria, Caja Postal y Banco Hipotecario de Espana, S.A. 2,487
77,750 Repsol S.A. 1,700
68,127 Telefonica de Espana S.A. ADR * 4,233
- --------------------------------------------------------------------------------
8,420
- --------------------------------------------------------------------------------
Sweden (1.7%)
78,000 Autoliv, Inc. GDR 2,338
69,400 Skandinaviska Enskilda Bank Rights * 75
69,400 Skandinaviska Enskilda Banken "A" 661
582,800 Swedish Match AB 2,082
42,200 Volvo AB * 1,024
- --------------------------------------------------------------------------------
6,180
- --------------------------------------------------------------------------------
Switzerland (1.9%)
1,984 Novartis AG 3,093
5,200 Selecta Group AG 1,766
1,980 Sulzer AG P.C. * 1,234
2,840 Swisscom AG 965
- --------------------------------------------------------------------------------
7,058
- --------------------------------------------------------------------------------
Taiwan (0.5%)
1,424,201 China Steel Corp. 1,012
224,100 Compal Electronics, Inc. 715
224,100 Compal Electronics, Inc. Rights * 0
- --------------------------------------------------------------------------------
1,727
- --------------------------------------------------------------------------------
Turkey (0.3%)
2,300,000 Enka Holding Yatrim A.S. 666
14,849,173 Yapi Ve Kredi Bankasi A.S. 272
- --------------------------------------------------------------------------------
938
- --------------------------------------------------------------------------------
United Kingdom (10.9%)
53,900 AstraZeneca Group plc 2,402
164,300 Bank of Scotland 1,945
611,900 Billiton plc 2,959
52,000 BOC Group plc 1,073
202,200 British Borneo Petroleum plc * 600
86,600 British Telecommunications plc 1,737
108,000 Cable & Wireless plc 1,372
474,900 Cadbury Schweppes 3,014
146,600 CGU plc 2,211
975,000 Cookson Group plc 3,887
690,000 Corporate Services Group plc * 1,298
23,400 Glaxo Wellcome plc ADR 1,391
102,000 Laporte plc 949
918,000 Laporte plc "B" * 7
581,000 Medeva plc 1,584
140,000 National Westminster Bank plc 3,222
425,000 Old Mutual plc * 927
36,800 Powergen plc 318
177,886 Reuters Group plc 1,987
285,000 Safeway plc 841
553,700 Tomkins plc 1,921
279,722 WPP Group plc 4,142
- --------------------------------------------------------------------------------
39,787
- --------------------------------------------------------------------------------
Total foreign stocks (cost: $157,869) 220,946
- --------------------------------------------------------------------------------
Principal
Amount
(000)
- --------------------------------------------------------------------------------
FOREIGN BONDS (0.1%)
Japan (0.1%)
$ 400 MBL International Finance (Bermuda) Trust, Convertible Notes,
3.00%, 11/30/2002 (cost: $400) 458
- --------------------------------------------------------------------------------
Total foreign securities (cost: $158,269) 221,404
- --------------------------------------------------------------------------------
Number
of Shares
- --------------------------------------------------------------------------------
DOMESTIC STOCKS (35.2%)
Aerospace/Defense (0.4%)
31,000 Boeing Co. 1,265
- --------------------------------------------------------------------------------
Aluminum (0.8%)
44,000 Alcoa, Inc. 2,882
- --------------------------------------------------------------------------------
Banks - Major Regional (0.5%)
52,000 Mellon Financial Corp. 1,895
- --------------------------------------------------------------------------------
Beverages - Nonalcoholic (1.5%)
152,000 Pepsi Bottling Group, Inc. 2,660
81,000 PepsiCo, Inc. 2,800
- --------------------------------------------------------------------------------
5,460
- --------------------------------------------------------------------------------
Biotechnology (0.5%)
40,000 Amgen, Inc. * 1,823
- --------------------------------------------------------------------------------
Broadcasting - Radio & TV (1.3%)
60,000 Clear Channel Communications, Inc. * 4,822
- --------------------------------------------------------------------------------
Communication Equipment (1.1%)
56,532 Lucent Technologies, Inc. 4,130
- --------------------------------------------------------------------------------
Computer - Hardware (1.4%)
40,300 Dell Computer Corp. * 1,733
37,000 Hewlett-Packard Co. 3,510
- --------------------------------------------------------------------------------
5,243
- --------------------------------------------------------------------------------
Computer - Networking (1.3%)
55,000 Cisco Systems, Inc. * 4,905
- --------------------------------------------------------------------------------
Computer Software & Service (4.9%)
82,000 America Online, Inc. * 5,960
40,000 BMC Software, Inc. * 2,912
56,000 Microsoft Corp. * 5,099
60,000 Oracle Corp. * 4,069
- --------------------------------------------------------------------------------
18,040
- --------------------------------------------------------------------------------
Drugs (2.1%)
4,000 Eli Lilly & Co. 287
28,000 Merck & Co., Inc. 2,198
75,000 Pfizer, Inc. 2,714
48,000 Schering-Plough Corp. 2,454
- --------------------------------------------------------------------------------
7,653
- --------------------------------------------------------------------------------
Electrical Equipment (1.3%)
36,000 General Electric Co. 4,680
- --------------------------------------------------------------------------------
Electronics - Semiconductors (2.9%)
50,000 Analog Devices, Inc. * 2,872
48,000 Intel Corp. 3,681
42,000 Texas Instruments, Inc. 4,034
- --------------------------------------------------------------------------------
10,587
- --------------------------------------------------------------------------------
Entertainment (0.7%)
85,000 Walt Disney Co. 2,369
- --------------------------------------------------------------------------------
Equipment - Semiconductors (0.9%)
35,000 Applied Materials, Inc. * 3,410
- --------------------------------------------------------------------------------
Finance - Diversified (1.3%)
18,000 Freddie Mac 889
31,900 Morgan Stanley Dean Witter & Co. 3,848
- --------------------------------------------------------------------------------
4,737
- --------------------------------------------------------------------------------
Foods (1.1%)
35,000 Hershey Foods Corp. 1,719
81,000 Keebler Foods Co. * 2,233
- --------------------------------------------------------------------------------
3,952
- --------------------------------------------------------------------------------
Health Care - Diversified (1.7%)
6,000 American Home Products Corp. 312
33,000 Bristol-Myers Squibb Co. 2,411
32,000 Johnson & Johnson, Inc. 3,320
3,000 Warner-Lambert Co. 269
- --------------------------------------------------------------------------------
6,312
- --------------------------------------------------------------------------------
Hospitals (0.1%)
32,000 Health Management Associates * 394
- --------------------------------------------------------------------------------
Household Products (1.0%)
34,000 Procter & Gamble Co. 3,672
- --------------------------------------------------------------------------------
Insurance - Multiline Companies (1.4%)
37,000 American International Group, Inc. 3,820
101,200 Manulife Financial Corp. * 1,310
- --------------------------------------------------------------------------------
5,130
- --------------------------------------------------------------------------------
Leisure Time (0.4%)
90,000 Mattel, Inc. 1,288
- --------------------------------------------------------------------------------
Manufacturing - Specialized (0.7%)
44,000 Avery Dennison Corp. 2,613
- --------------------------------------------------------------------------------
Medical Products & Supplies (0.9%)
9,000 Guidant Corp. * 450
76,000 Medtronic, Inc. 2,955
- --------------------------------------------------------------------------------
3,405
- --------------------------------------------------------------------------------
Oil & Gas - Drilling/Equipment (0.4%)
41,000 Halliburton Co. 1,586
- --------------------------------------------------------------------------------
Personal Care (1.0%)
103,000 Avon Products, Inc. 3,753
- --------------------------------------------------------------------------------
Retail - Drugs (0.3%)
42,000 Duane Reade, Inc. * 929
- --------------------------------------------------------------------------------
Retail - General Merchandising (1.2%)
60,000 Dayton Hudson Corp. 4,234
- --------------------------------------------------------------------------------
Retail - Specialty Apparel (1.0%)
86,000 Gap, Inc. 3,483
- --------------------------------------------------------------------------------
Services - Data Processing (0.2%)
14,000 First Data Corp. 606
- --------------------------------------------------------------------------------
Telecommunications - Long Distance (0.9%)
40,000 MCI WorldCom, Inc. * 3,307
- --------------------------------------------------------------------------------
Total domestic stocks (cost: $69,524) 128,565
- --------------------------------------------------------------------------------
Principal
Amount
(000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY ISSUE (4.6%)
U.S. Government (4.6%)
$ 16,914 Federal Home Loan Mortgage Corp., 5.61%, 12/01/1999
(cost: $16,914) 16,914
- --------------------------------------------------------------------------------
Total investments (cost: $244,707) $366,883
================================================================================
PORTFOLIO SUMMARY BY INDUSTRY
-----------------------------
Telephones 6.9% Telecommunications - Long Distance 1.4%
Banks - Major Regional 5.8 Manufacturing - Diversified Industries 1.4
Drugs 5.7 Foods 1.3
Computer Software & Service 4.9 Computer - Networking 1.3
U.S. Government 4.6 Broadcasting - Radio & TV 1.3
Communication Equipment 4.3 Chemicals - Specialty 1.3
Insurance - Multiline Companies 3.9 Banks - Money Center 1.3
Electronics - Semiconductors 3.5 Oil & Gas - Exploration & Production 1.2
Oil - International Integrated 2.7 Metals/Mining 1.2
Electrical Equipment 2.5 Oil & Gas - Drilling/Equipment 1.2
Beverages - Nonalcoholic 2.5 Retail - General Merchandising 1.2
Household Products 1.9 Advertising/Marketing 1.1
Retail - Specialty 1.8 Iron & Steel 1.1
Finance - Diversified 1.8 Leisure Time 1.1
Auto Parts 1.8 Tobacco 1.1
Railroads/Shipping 1.7 Personal Care 1.0
Health Care - Diversified 1.7 Investment Banks/Brokerage 1.0
Computer - Hardware 1.6 Automobiles 1.0
Manufacturing - Specialized 1.5 Retail - Specialty Apparel 1.0
Other 16.7
----
Total 100.3%
=====
USAA WORLD GROWTH FUND
NOTES TO PORTFOLIO OF INVESTMENTS
November 30, 1999
(Unaudited)
GENERAL NOTES
Market values of securities are determined by procedures and practices discussed
in note 1 to the financial statements.
The cost of securities for federal income tax purposes is approximately the same
as that reported in the financial statements.
The percentages shown represent the percentage of the investments to net assets.
ADR - American Depositary Receipts are receipts issued by a U.S. bank evidencing
ownership of foreign shares. Dividends are paid in U.S. dollars.
GDR - Global Depositary Receipts are receipts issued by a U.S. or foreign bank
evidencing ownership of foreign shares. Dividends are paid in U.S. dollars.
* Non-income producing securities.
See accompanying notes to financial statements.
USAA WORLD GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
(IN THOUSANDS)
November 30, 1999
(Unaudited)
ASSETS
Investments in securities, at market value
(identified cost of $244,707) $366,883
Cash 16
Cash denominated in foreign currencies (identified cost of $364) 357
Receivables:
Capital shares sold 119
Dividends and interest 403
Securities sold 1,057
Unrealized appreciation on foreign currency contracts held,
at value 3
--------
Total assets 368,838
--------
LIABILITIES
Securities purchased 2,113
Unrealized depreciation on foreign currency contracts held,
at value 16
Capital shares redeemed 317
USAA Investment Management Company 223
USAA Transfer Agency Company 75
Accounts payable and accrued expenses 212
--------
Total liabilities 2,956
--------
Net assets applicable to capital shares outstanding $365,882
========
REPRESENTED BY:
Paid-in capital $228,591
Accumulated undistributed net investment income 42
Accumulated net realized gain on investments 15,090
Net unrealized appreciation of investments 122,176
Net unrealized depreciation on foreign currency translations (17)
---------
Net assets applicable to capital shares outstanding $365,882
========
Capital shares outstanding, unlimited number of shares
authorized, no par value 18,352
========
Net asset value, redemption price, and offering price per share $ 19.93
========
See accompanying notes to financial statements.
USAA WORLD GROWTH FUND
STATEMENT OF OPERATIONS
(IN THOUSANDS)
Six-month period ended November 30, 1999
(Unaudited)
Net investment income:
Income:
Dividends (net of foreign taxes withheld of $219) $ 1,834
Interest 304
-------
Total income 2,138
-------
Expenses:
Management fees 1,294
Transfer agent's fees 414
Custodian's fees 145
Postage 96
Shareholder reporting fees 32
Trustees' fees 5
Registration fees 55
Professional fees 31
Other 6
-------
Total expenses 2,078
-------
Net investment income 60
-------
Net realized and unrealized gain (loss) on investments and foreign
currency:
Net realized gain (loss) on:
Investments 15,173
Foreign currency transactions (18)
Change in net unrealized appreciation/depreciation of:
Investments 32,165
Foreign currency translations 15
-------
Net realized and unrealized gain 47,335
-------
Increase in net assets resulting from operations $47,395
=======
See accompanying notes to financial statements.
USAA WORLD GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
(IN THOUSANDS)
Six-month period ended November 30, 1999,
and year ended May 31, 1999
(Unaudited)
11/30/99 5/31/99
-------------------------
From operations:
Net investment income $ 60 $ 1,764
Net realized gain on investments 15,173 12,989
Net realized loss on foreign currency transactions (18) (206)
Change in net unrealized appreciation/depreciation
of:
Investments 32,165 (10,486)
Foreign currency translations 15 212
-------------------------
Increase in net assets resulting from operations 47,395 4,273
-------------------------
Distributions to shareholders from:
Net investment income (1,104) (1,995)
-------------------------
Net realized gains (12,889) (10,052)
-------------------------
From capital share transactions:
Proceeds from shares sold 33,653 125,901
Shares issued for dividends reinvested 13,735 11,871
Cost of shares redeemed (41,610) (160,176)
-------------------------
Increase (decrease) in net assets from
capital share transactions 5,778 (22,404)
-------------------------
Net increase (decrease) in net assets 39,180 (30,178)
Net assets:
Beginning of period 326,702 356,880
-------------------------
End of period $365,882 $326,702
=========================
Undistributed net investment income included in
net assets:
End of period $ 42 $ 1,104
=========================
Change in shares outstanding:
Shares sold 1,786 7,368
Shares issued for dividends reinvested 728 664
Shares redeemed (2,200) (9,429)
-------------------------
Increase (decrease) in shares outstanding 314 (1,397)
=========================
See accompanying notes to financial statements.
USAA WORLD GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USAA INVESTMENT TRUST (the Trust), registered under the Investment Company Act
of 1940, as amended, is a diversified, open-end management investment company
organized as a Massachusetts business trust consisting of eleven separate funds.
The information presented in this semiannual report pertains only to the USAA
World Growth Fund (the Fund). The Fund's investment objective is capital
appreciation. USAA Investment Management Company (the Manager) seeks to achieve
this objective by investing the Fund's assets mostly in a mix of foreign and
domestic equity securities.
A. Security valuation - The value of each security is determined (as of the
close of trading on the New York Stock Exchange on each business day the
Exchange is open) as set forth below:
1. Portfolio securities, except as otherwise noted, traded primarily on a
domestic securities exchange are valued at the last sales price on that
exchange. Portfolio securities traded primarily on foreign securities exchanges
are generally valued at the last quoted sale price, or the most recently
determined closing price calculated according to local market convention
available at the time the Fund is valued. If no sale is reported, the average of
the bid and asked prices is generally used.
2. Over-the-counter securities are priced at the last sales price or, if not
available, at the average of the bid and asked prices.
3. Securities purchased with maturities of 60 days or less are stated at
amortized cost which approximates market value.
4. Securities that cannot be valued by the methods set forth above, and all
other assets, are valued in good faith at fair value, using methods determined
by the Manager under the general supervision of the Board of Trustees.
B. Federal taxes - The Fund's policy is to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its income to its shareholders. Therefore, no
federal income or excise tax provision is required.
C. Investments in securities - Security transactions are accounted for on the
date the securities are purchased or sold (trade date). Gain or loss from sales
of investment securities is computed on the identified cost basis. Dividend
income, less foreign taxes, if any, is recorded on the ex-dividend date. If the
ex-dividend date has passed, certain dividends from foreign securities are
recorded upon notification. Interest income is recorded on the accrual basis.
Discounts and premiums on short-term securities are amortized over the life of
the respective securities.
D. Foreign currency translations - The assets of the Fund may be invested in the
securities of foreign issuers. Since the accounting records of the Fund are
maintained in U.S. dollars, foreign currency amounts are translated into U.S.
dollars on the following basis:
1. Market value of securities, other assets, and liabilities at the mean between
the bid and asked translation rates of such currencies against U.S. dollars on a
daily basis.
2. Purchases and sales of securities, income, and expenses at the rate of
exchange obtained from an independent pricing service on the respective dates of
such transactions.
Net realized and unrealized foreign currency gains/losses occurring during the
holding period of investments are a component of realized gain/loss on
investments and unrealized appreciation/depreciation on investments,
respectively.
Net realized foreign currency gains/losses arise from sales of foreign currency,
currency gains/losses realized between the trade and settlement dates on
security transactions, and from the difference between amounts of dividends,
interest, and foreign withholding taxes recorded on the Fund's books and the
U.S. dollar equivalent of the amounts received. Net realized foreign currency
gains/losses have been reclassified from accumulated net realized gain/loss to
accumulated undistributed net investment income on the statement of assets and
liabilities as such amounts are treated as ordinary income/loss for tax
purposes. Net unrealized foreign currency exchange gains/losses arise from
changes in the value of assets and liabilities other than investments in
securities resulting from changes in the exchange rate.
E. Use of estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that may affect the reported amounts in the financial
statements.
(2) LINES OF CREDIT
The Fund participates with other USAA funds in three joint short-term revolving
loan agreements totaling $850 million, two with USAA Capital Corporation
(CAPCO), an affiliate of the Manager ($250 million committed and $500 million
uncommitted), and one with Bank of America ($100 million committed). The purpose
of the agreements is to meet temporary or emergency cash needs, including
redemption requests that might otherwise require the untimely disposition of
securities. Subject to availability under both agreements with CAPCO, the Fund
may borrow from CAPCO an amount up to 5% of the Fund's total assets at CAPCO's
borrowing rate with no markup. Subject to availability under its agreement with
Bank of America, the Fund may borrow from Bank of America, at Bank of America's
borrowing rate plus a markup, an amount which, when added to outstanding
borrowings under the CAPCO agreements, does not exceed 25% of the Fund's total
assets. The Fund had no borrowings under either of these agreements during the
six-month period ended November 30, 1999.
(3) DISTRIBUTIONS
Distributions of net investment income and realized gains from security
transactions not offset by capital losses are made in the succeeding fiscal year
or as otherwise required to avoid the payment of federal taxes.
(4) INVESTMENT TRANSACTIONS
Cost of purchases and proceeds from sales of securities, excluding short-term
securities, for the six-month period ended November 30, 1999, were $47.9 million
and $59.8 million, respectively.
Gross unrealized appreciation and depreciation of investments November 30, 1999,
were $136.7 million and $14.5 million, respectively.
(5) FOREIGN CURRENCY CONTRACTS
A forward currency contract (currency contract) is a commitment to purchase or
sell a foreign currency at a specified date, at a negotiated price. The Fund
currently enters into currency contracts only in connection with the purchase or
sale of a security denominated in a foreign currency. These contracts allow the
Fund to "lock in" the U.S. dollar price of the security. Currency contracts are
valued on a daily basis using foreign currency exchange rates obtained from an
independent pricing service. Risks of entering into currency contracts include
the potential inability of the counterparty to meet the terms of the contract
and the Fund giving up the opportunity for potential profit.
At November 30, 1999, the terms of open foreign currency contracts were as
follows (in thousands):
Foreign Currency Contracts to Buy:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
U.S. Dollar
Exchange Contracts to Value as of In Exchange Unrealized Unrealized
Date Receive 11/30/99 for U.S. Dollar Appreciation Depreciation
- ------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C>
12/01/99 969 Pound Sterling $1,545 $1,559 - $(14)
12/01/99 108 Pound Sterling 172 174 - (2)
- ------------------------------------------------------------------------------------------------
$1,717 $1,733 - $(16)
================================================================================================
</TABLE>
Foreign Currency Contracts to Sell:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
U.S. Dollar
Exchange Contracts to Value as of In Exchange Unrealized Unrealized
Date Deliver 11/30/99 for U.S. Dollar Appreciation Depreciation
- ------------------------------------------------------------------------------------------------
<C> <C><S> <C> <C> <C> <C>
7/29/99 82 Euro Currency $82 $85 $3 -
- ------------------------------------------------------------------------------------------------
$82 $85 $3 -
================================================================================================
</TABLE>
(6) TRANSACTIONS WITH MANAGER
A. Management fees - USAA Investment Management Company carries out the Fund's
investment policies and manages the Fund's portfolio. The Fund's management fees
are computed at .75% of its annual average net assets.
B. Transfer agent's fees - USAA Transfer Agency Company, d/b/a USAA Shareholder
Account Services, an affiliate of the Manager, provides transfer agent services
to the Fund based on an annual charge of $26.00 per shareholder account plus
out-of-pocket expenses.
C. Underwriting services - The Manager provides exclusive underwriting and
distribution of the Fund's shares on a continuing, best-efforts basis. The
Manager receives no commissions or fees for this service.
D. Brokerage services - USAA Brokerage Services, a discount brokerage service of
the Manager, may execute portfolio transactions for the Fund. The amount of
brokerage commissions paid to USAA Brokerage Services during the six-month
period ended November 30, 1999, was $3,930.
(7) TRANSACTIONS WITH AFFILIATES
Certain trustees and officers of the Fund are also directors, officers, and/or
employees of the Manager. None of the affiliated trustees or Fund officers
received any compensation from the Fund.
(8) YEAR 2000
Like other mutual funds, the Fund could be adversely affected if the computer
systems used by the Manager and the Fund's other service providers are not able
to perform their intended functions effectively after 1999 because of the
inability of computer software to distinguish the year 2000 from the year 1900.
The Manager has taken steps to address this potential year 2000 problem with
respect to the computer systems that they use and to obtain satisfactory
assurances that the comparable steps are being taken by the Fund's other major
service providers. At this time, however, there can be no assurance that these
steps will be sufficient to avoid any adverse impact to the Fund from this
problem.
(9) FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period
is as follows:
<TABLE>
<CAPTION>
Six-month
Period Ended
November 30, Year Ended May 31,
-----------------------------------------------------------------------
1999 1999 1998 1997 1996 1995
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $ 18.11 $ 18.36 $ 16.84 $ 15.50 $ 12.96 $ 12.71
Net investment income - .10 .11 .11 .12 .07
Net realized and
unrealized gain 2.60 .27 2.51 2.28 2.73 .46
Distributions from net
investment income (.06) (.10) (.08) (.14) (.08) -
Distributions of realized
capital gains (.72) (.52) (1.02) (.91) (.23) (.28)
-----------------------------------------------------------------------
Net asset value at
end of period $ 19.93 $ 18.11 $ 18.36 $ 16.84 $ 15.50 $ 12.96
=======================================================================
Total return (%) * 14.63 2.06 16.29 16.52 22.43 4.26
Net assets at end of
period (000) $365,882 $326,702 $356,880 $306,799 $267,192 $200,745
Ratio of expenses to
average net assets (%) 1.20(a) 1.16 1.13 1.20 1.27 1.28
Ratio of net investment
income to average net
assets (%) .03(a) .55 .64 .63 .96 .69
Portfolio turnover (%) 14.42 51.19 45.04 50.02 60.97 58.88
</TABLE>
* Assumes reinvestment of all dividend income and capital gains distributions
during the period.
(a) Annualized. The ratio is not necessarily indicative of 12 months of
operations.
TRUSTEES
Robert G. Davis, Chairman of the Board
Michael J.C. Roth, President and Vice Chairman of the Board
John W. Saunders, Jr., Vice President
Barbara B. Dreeben
Howard L. Freeman, Jr.
Robert L. Mason
Richard A. Zucker
INVESTMENT ADVISER, UNDERWRITER, AND DISTRIBUTOR
USAA Investment Management Company
9800 Fredericksburg Road
San Antonio, Texas 78288
TRANSFER AGENT
USAA Shareholder Account Services
9800 Fredericksburg Road
San Antonio, Texas 78288
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02105
LEGAL COUNSEL
Goodwin, Procter & Hoar LLP
Exchange Place
Boston, Massachusetts 02109
INDEPENDENT AUDITORS
KPMG LLP
112 East Pecan, Suite 2400
San Antonio, Texas 78205
Telephone Assistance Hours
Call toll free - Central Time
Monday - Friday 7:00 a.m. to 9:00 p.m.
Saturdays 8:30 a.m. to 5:00 p.m.
Sundays 11:30 a.m. to 8:00 p.m.
Internet Access
usaa.com(Service Mark)
For Additional Information on Mutual Funds
1-800-531-8181, (in San Antonio) 456-7211
For account servicing, exchanges, or redemptions
1-800-531-8448, (in San Antonio) 456-7202
Recorded Mutual Fund Price Quotes
24-hour service (from any phone)
1-800-531-8066, (in San Antonio) 498-8066
Mutual Fund USAA TouchLine(Registered Trademark)
(from touch-tone phones only)
For account balance, last transaction, fund prices,
or to exchange or redeem fund shares
1-800-531-8777, (in San Antonio) 498-8777
