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 VIRGINIA MONEY MARKET FUND – 1ST QUARTER REPORT - PERIOD ENDED
JUNE 30, 2010
[LOGO OF USAA]
USAA(R)
PORTFOLIO OF INVESTMENTS
1ST QUARTER
USAA VIRGINIA MONEY MARKET FUND
JUNE 30, 2010
(Form N-Q)
48503-0610 (C)2010, USAA. All rights reserved.
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS
June 30, 2010 (unaudited)
CATEGORIES AND DEFINITIONS
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. The effective
maturity of these instruments is deemed to be less than 397 days in accordance
with detailed regulatory requirements.
PUT BONDS - provide the right to sell the bond at face value at specific tender
dates prior to final maturity. The put feature shortens the effective maturity
of the security.
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 values of the securities.
The Fund's investments consist of securities meeting the requirements to qualify
at the time of purchase as "eligible securities" under the Securities and
Exchange Commission (SEC) rules applicable to money market funds. With respect
to quality, eligible securities generally consist of securities rated in one of
the two highest categories for short-term securities or, if not rated, of
comparable quality at the time of purchase. USAA Investment Management Company
(the Manager) also attempts to minimize credit risk in the Fund through rigorous
internal credit research.
(INS) Principal and interest payments are insured by Assured Guaranty Corp.
or Assured Guaranty Municipal 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.
(LIQ) Liquidity enhancement that may, under certain circumstances, provide
for repayment of principal and interest upon demand from one of the
following: Bank of America, N.A., Branch Banking & Trust Co.,
Citibank, N.A., Citigroup, Inc., Deutsche Postbank, Freddie Mac,
JPMorgan Chase Bank, N.A., Merrill Lynch & Co., Inc., U.S. Bank, N.A.,
or Wells Fargo & Co.
(LOC) Principal and interest payments are guaranteed by a bank letter of
credit or other bank credit agreement.
(NBGA) Principal and interest payments or, under certain circumstances,
underlying mortgages are guaranteed by a nonbank guarantee agreement
from Freddie Mac, Merrill Lynch & Co., Inc. or National Rural Utility
Corp.
================================================================================
1 | USAA VIRGINIA MONEY MARKET FUND
<PAGE>
================================================================================
PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS
EDA Economic Development Authority
IDA Industrial Development Authority/Agency
================================================================================
PORTFOLIO OF INVESTMENTS | 2
<PAGE>
================================================================================
PORTFOLIO OF INVESTMENTS
USAA VIRGINIA MONEY MARKET FUND
June 30, 2010 (unaudited)
PRINCIPAL
AMOUNT COUPON FINAL VALUE
(000) SECURITY RATE MATURITY (000)
-----------------------------------------------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTES (96.7%)
VIRGINIA (88.6%)
$ 10,760 Alexandria IDA (LOC - Branch Banking & Trust Co.) 0.30% 10/01/2030 $ 10,760
5,000 Alexandria IDA (LOC - Branch Banking & Trust Co.) 0.30 10/01/2035 5,000
9,500 Alexandria IDA (LOC - SunTrust Bank) 0.50 10/01/2043 9,500
7,765 Ashland IDA (LOC - Wells Fargo Bank, N.A.) 0.30 11/01/2020 7,765
5,000 Caroline County IDA 0.33 12/01/2037 5,000
3,250 Charlottesville IDA (LOC - U.S. Bank, N.A.) 0.41 7/01/2010 3,250
10,000 Chesapeake Hospital Auth. (LOC - Federal Home Loan Bank of Atlanta) 0.20 7/01/2031 10,000
4,300 Clarke County IDA (INS)(LIQ) 0.33 1/01/2030 4,300
8,345 College Building Auth. (LIQ) (a) 0.35 9/01/2028 8,345
2,500 Commonwealth University (LOC - Wells Fargo Bank, N.A.) 0.13 11/01/2030 2,500
5,185 Commonwealth University (LOC - Wells Fargo Bank, N.A.) 0.18 11/01/2030 5,185
7,000 Fairfax County EDA (LOC - SunTrust Bank) 0.43 6/01/2037 7,000
7,100 Harrisonburg IDA (LOC - SunTrust Bank) 0.49 12/01/2021 7,100
9,700 Harrisonburg Redevelopment and Housing Auth. (LIQ)(NBGA) (a) 0.36 2/01/2026 9,700
2,300 Henrico County IDA (NBGA) 0.99 7/15/2016 2,300
11,965 Henrico County Water and Sewer System (LIQ) (a) 0.35 5/01/2014 11,965
3,330 Housing Dev. Auth. (LIQ) (a) 0.36 1/01/2031 3,330
6,600 Housing Dev. Auth. (LIQ) (a) 0.36 1/01/2031 6,600
1,090 Lynchburg IDA (LOC - SunTrust Bank) 0.53 12/01/2034 1,090
3,200 Norfolk Redevelopment and Housing Auth. RB
(LOC - Bank of America, N.A.) 0.30 7/01/2034 3,200
3,000 Orange County IDA (LOC - Wells Fargo Bank, N.A.) 0.40 12/01/2034 3,000
5,800 Richmond Public Utility (INS)(LIQ) (a) 0.32 7/15/2013 5,800
2,640 Roanoke County EDA (LOC - Branch Banking & Trust Co.) 0.36 10/01/2028 2,640
9,555 Russell 150 Community Dev. Auth. (LIQ)(NBGA) (a) 0.31 3/01/2036 9,555
5,000 Russell County IDA (LOC - Regions Bank) 0.90 7/01/2038 5,000
8,500 Stafford County and Staunton IDA (LIQ)(LOC - U.S. Bank, N.A.) (a) 0.31 2/01/2015 8,500
830 Stafford County EDA (INS)(LIQ) (a) 0.36 10/01/2015 830
3,040 Stafford County IDA (LOC - U.S. Bank, N.A.) 0.29 5/01/2049 3,040
3,000 Suffolk EDA (LIQ) (a) 0.34 5/01/2030 3,000
1,380 Suffolk Redevelopment and Housing Auth. (LOC - Wells Fargo Bank, N.A.) 0.45 9/01/2019 1,380
10,855 Suffolk Redevelopment and Housing Auth. (LIQ)(NBGA) (a) 0.36 7/01/2024 10,855
5,000 Univ. of Virginia (LIQ) (a) 0.31 6/01/2037 5,000
2,000 Virginia Beach (LIQ) (a) 0.31 10/01/2015 2,000
================================================================================
3 | USAA VIRGINIA MONEY MARKET FUND
<PAGE>
================================================================================
PRINCIPAL
AMOUNT COUPON FINAL VALUE
(000) SECURITY RATE MATURITY (000)
-----------------------------------------------------------------------------------------------------------------------
$ 4,035 Virginia Beach Dev. Auth. (LOC - Bank of America, N.A.) 0.30% 7/01/2033 $ 4,035
---------
188,525
---------
PUERTO RICO (8.1%)
12,800 Commonwealth (LIQ)(LOC - Bank of America, N.A.) (a) 0.40 7/01/2011 12,800
4,400 Commonwealth (INS)(LIQ) (a) 0.36 7/01/2039 4,400
---------
Total Variable-Rate Demand Notes (cost: $205,725) 17,200
---------
205,725
---------
PUT BONDS (3.5%)
VIRGINIA (2.3%)
5,000 Norfolk EDA 0.48 11/01/2034 5,000
---------
PUERTO RICO (1.2%)
2,500 Industrial, Medical and Environmental Pollution
Control Facilities Financing Auth. 0.95 3/01/2023 2,500
---------
Total Put Bonds (cost: $7,500) 7,500
---------
TOTAL INVESTMENTS (COST: $213,225) $ 213,225
=========
($ 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
----------------------------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTES $ -- $ 205,725 $ -- $ 205,725
PUT BONDS -- 7,500 -- 7,500
----------------------------------------------------------------------------------------------------
Total $ -- $ 213,225 $ -- $ 213,225
----------------------------------------------------------------------------------------------------
For the period ended June 30, 2010, there were no significant transfers of
securities between levels 1, 2, or 3. 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
<PAGE>
================================================================================
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 Money Market 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. Pursuant to Rule 2a-7 under the 1940 Act, securities in the Fund are valued
at amortized cost, which approximates market value. This method values a
security at its cost on the date of purchase and, thereafter, assumes a constant
amortization to maturity of any premiums or discounts.
2. Securities for which amortized cost valuations are considered unreliable or
whose values have been materially affected by a significant event are valued in
good faith at fair value, using methods determined by the Manager, an affiliate
of the Fund, under valuation procedures and procedures to stabilize net asset
value (NAV) approved by the Trust's Board of Trustees.
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. For
example, money market securities are valued using amortized cost, in accordance
with rules under the 1940 Act. Generally, amortized cost
================================================================================
5 | USAA VIRGINIA MONEY MARKET FUND
<PAGE>
================================================================================
approximates the current fair value of a security, but since the value is not
obtained from a quoted price in an active market, such securities are reflected
as Level 2.
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.
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.
E. The portfolio of investments category percentages shown represent the
percentages of the investments to net assets, which were $212,816,000 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) 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 | 6
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
------------------------------
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