PORTFOLIO OF INVESTMENTS 3 RD QUARTER USAA GROWTH FUND APRIL 30, 2016

Transcription

1 PORTFOLIO OF INVESTMENTS 3 RD QUARTER USAA GROWTH FUND APRIL 30, 2016 (Form N-Q) , USAA. All rights reserved.

2 PORTFOLIO OF INVESTMENTS USAA Growth Fund April 30, 2016 (unaudited) Market Number Value of Shares Security (000) EQUITY SECURITIES (98.8%) COMMON STOCKS (98.8%) Consumer Discretionary (15.9%) Advertising (0.8%) 701,844 Interpublic Group of Companies, Inc. $ 16,100 Apparel Retail (1.3%) 222,025 Foot Locker, Inc. 13, ,192 Ross Stores, Inc. 13,014 26,655 Automotive Retail (1.4%) 19,307 AutoZone, Inc.* 14,775 54,889 O'Reilly Automotive, Inc.* 14,418 29,193 Broadcasting (0.7%) 218,489 Scripps Networks Interactive "A" 13,623 General Merchandise Stores (1.4%) 177,295 Dollar General Corp. 14, ,535 Target Corp. 13,240 27,762 Home Improvement Retail (1.5%) 114,646 Home Depot, Inc. 15, ,754 Lowe's Companies, Inc. 15,413 30,763 Hotels, Resorts & Cruise Lines (1.9%) 275,307 Carnival Corp. 13, ,506 Marriott International, Inc. "A" 14, ,495 Royal Caribbean Cruises Ltd. 11,725 39,633 Internet Retail (4.0%) 125,054 Amazon.com, Inc.* 82,484 Movies & Entertainment (0.7%) 135,788 Walt Disney Co. 14,022 Restaurants (2.2%) 210,887 Darden Restaurants, Inc. 13, ,250 Yum! Brands, Inc. 32,162 45,290 Total Consumer Discretionary 325,525 1 USAA Growth Fund

3 Market Number Value of Shares Security (000) Consumer Staples (12.5%) Brewers (1.6%) 543,012 SABMiller plc ADR $ 33,308 Drug Retail (0.7%) 150,247 CVS Health Corp. 15,100 Food Retail (0.5%) 318,999 Kroger Co. 11,289 Household Products (2.2%) 550,138 Procter & Gamble Co. 44,077 Packaged Foods & Meat (2.4%) 3,450,241 Danone ADR 48,787 Soft Drinks (5.1%) 1,099,889 Coca-Cola Co. 49, ,745 Monster Beverage Corp.* 54, ,186 Total Consumer Staples 256,747 Energy (1.7%) Oil & Gas Equipment & Services (1.7%) 434,423 Schlumberger Ltd. 34,902 Financials (5.7%) Asset Management & Custody Banks (2.0%) 839,924 SEI Investments Co. 40,384 Consumer Finance (1.1%) 360,167 American Express Co. 23,566 Investment Banking & Brokerage (0.2%) 144,194 Greenhill & Co., Inc. 3,175 Life & Health Insurance (0.6%) 169,194 Prudential Financial, Inc. 13,136 Regional Banks (0.7%) 102,534 Signature Bank* 14,132 Specialized Finance (1.1%) 144,904 FactSet Research Systems, Inc. 21,844 Total Financials 116,237 Health Care (15.3%) Biotechnology (3.5%) 273,089 Amgen, Inc. 43,230 54,900 Biogen, Inc.* 15, ,644 Gilead Sciences, Inc. 13,112 71,439 Health Care Distributors (1.2%) 172,267 Cardinal Health, Inc. 13,516 64,923 McKesson Corp. 10,895 24,411 Health Care Equipment (2.1%) 407,871 Hologic, Inc.* 13, ,980 Varian Medical Systems, Inc.* 29,629 43,329 Portfolio of Investments 2

4 Market Number Value of Shares Security (000) Health Care Services (0.6%) 174,023 Express Scripts Holding Co.* $ 12,831 Health Care Technology (1.5%) 536,226 Cerner Corp.* 30,104 Managed Health Care (1.9%) 125,074 Aetna, Inc. 14,042 92,895 Anthem, Inc. 13,077 93,924 Cigna Corp. 13,012 40,131 Pharmaceuticals (4.5%) 317,438 Merck & Co., Inc. 17, ,466 Novartis AG ADR 28, ,761 Novo Nordisk A/S ADR 45,177 91,489 Total Health Care 313,734 Industrials (9.9%) Aerospace & Defense (0.7%) 110,072 Boeing Co. 14,838 Air Freight & Logistics (4.4%) 806,531 Expeditors International of Washington, Inc. 40, ,511 United Parcel Service, Inc. "B" 50,277 90,289 Airlines (1.3%) 171,730 Alaska Air Group, Inc. 12, ,081 Southwest Airlines Co. 13,743 25,838 Building Products (0.8%) 514,348 Masco Corp. 15,796 Construction Machinery & Heavy Trucks (0.6%) 103,811 Cummins, Inc. 12,149 Diversified Support Services (0.7%) 152,286 Cintas Corp. 13,672 Electrical Components & Equipment (0.7%) 126,181 Rockwell Automation, Inc. 14,318 Research & Consulting Services (0.7%) 129,209 Equifax, Inc. 15,537 Total Industrials 202,437 Information Technology (37.1%) Application Software (2.3%) 535,325 Autodesk, Inc.* 32, ,518 Synopsys, Inc.* 14,518 46,541 Communications Equipment (4.2%) 2,272,986 Cisco Systems, Inc. 62, ,899 F5 Networks, Inc.* 11, ,956 Juniper Networks, Inc. 11,137 85,343 Data Processing & Outsourced Services (5.3%) 130,964 Automatic Data Processing, Inc. 11, ,293 Global Payments, Inc. 15,612 3 USAA Growth Fund

5 Market Number Value of Shares Security (000) 326,733 Total System Services, Inc. $ 16, ,237 Visa, Inc. "A" 64, ,954 Home Entertainment Software (0.6%) 197,366 Electronic Arts, Inc.* 12,207 Internet Software & Services (11.1%) 718,998 Alibaba Group Holding Ltd. ADR* 55,320 68,057 Alphabet, Inc. "A"* 48,176 55,948 Alphabet, Inc. "C"* 38, ,770 Facebook, Inc. "A"* 84, ,134 Semiconductor Equipment (0.7%) 180,841 Lam Research Corp. 13,816 Semiconductors (5.2%) 90,708 Analog Devices, Inc. 5, ,134 ARM Holdings plc ADR 27, ,298 QUALCOMM, Inc. 47, ,402 Skyworks Solutions, Inc. 12, ,148 Texas Instruments, Inc. 14, ,981 Systems Software (5.9%) 941,162 Microsoft Corp. 46,936 1,869,716 Oracle Corp. 74, ,463 Technology Hardware, Storage, & Peripherals (1.8%) 119,331 Apple, Inc. 11, ,997 EMC Corp. 14, ,263 Western Digital Corp. 11,943 37,725 Total Information Technology 759,164 Materials (0.7%) Diversified Chemicals (0.7%) 287,625 Dow Chemical Co. 15,132 Total Common Stocks 2,023,878 Total Equity Securities (cost: $1,427,085) 2,023,878 MONEY MARKET INSTRUMENTS (1.0%) 21,424,511 MONEY MARKET FUNDS (1.0%) State Street Institutional Liquid Reserves Fund Premier Class, 0.46% (a) (cost: $21,425) 21,425 Total Investments (cost: $1,448,510) $ 2,045,303 Portfolio of Investments 4

6 ($ in 000s) VALUATION HIERARCHY (LEVEL 1) Quoted Prices in Active Markets for Identical Assets (LEVEL 2) Other Significant Observable Inputs (LEVEL 3) Significant Unobservable Inputs Assets Total Equity Securities: Common Stocks $ 2,023,878 $ $ $ 2,023,878 Money Market Instruments: Money Market Funds 21,425 21,425 Total $ 2,045,303 $ $ $ 2,045,303 Refer to the Portfolio of Investments for additional industry, country, or geographic region classifications. For the period of August 1, 2015, through April 30, 2016, there were no transfers of securities between levels. The Fund's policy is to recognize any transfers in and transfers out as of the beginning of the reporting period in which the event or circumstance that caused the transfer occurred. 5 USAA Growth Fund

7 NOTES TO PORTFOLIO OF INVESTMENTS April 30, 2016 (unaudited) GENERAL NOTES USAA MUTUAL FUNDS TRUST (the Trust), registered under the Investment Company Act of 1940, as amended (the 1940 Act), is an open-end management investment company organized as a Delaware statutory trust consisting of 54 separate funds. Additionally, the Fund qualifies as a registered investment company under Accounting Standards Codification Topic 946. The information presented in this quarterly report pertains only to the USAA Growth Fund (the Fund), which is classified as diversified under the 1940 Act. The Fund consists of two classes of shares: Growth Fund Shares (Fund Shares) and Growth Fund Institutional Shares (Institutional Shares). Each class of shares has equal rights to assets and earnings, except that each class bears certain class-related expenses specific to the particular class. These expenses include administration and servicing fees, transfer agent fees, postage, shareholder reporting fees, and certain registration and custodian fees. Expenses not attributable to a specific class, income, and realized gains or losses on investments are allocated to each class of shares based on each class s relative net assets. Each class has exclusive voting rights on matters related solely to that class and separate voting rights on matters that relate to both classes. The Institutional Shares are available for investment through a USAA discretionary managed account program, and certain advisory programs sponsored by financial intermediaries, such as brokerage firms, investment advisors, financial planners, third-party administrators, and insurance companies. Institutional Shares also are available to institutional investors, which include retirement plans, endowments, foundations, and bank trusts, as well as other persons or legal entities that the Fund may approve from time to time, or for purchase by a USAA Fund participating in a fund-of-funds investment strategy (USAA fund-of-funds). A. Security valuation The Trust s Board of Trustees (the Board) has established the Valuation Committee (the Committee), and subject to Board oversight, the Committee administers and oversees the Fund s valuation policies and procedures, which are approved by the Board. Among other things, these policies and procedures allow the Fund to utilize independent pricing services, quotations from securities dealers, and a wide variety of sources and information to establish and adjust the fair value of securities as events occur and circumstances warrant. The Committee reports to the Board on a quarterly basis and makes recommendations to the Board as to pricing methodologies and services used by the Fund and presents additional information to the Board regarding application of the pricing and fair valuation policies and procedures during the preceding quarter. The Committee meets as often as necessary to make pricing and fair value determinations. In addition, the Committee holds regular monthly meetings to review prior actions taken by the Committee and USAA Asset Management Company (the Manager), an affiliate of the Fund. 6 USAA Growth Fund

8 Among other things, these monthly meetings include a review and analysis of back testing reports, pricing service quotation comparisons, illiquid securities and fair value determinations, pricing movements, and daily stale price monitoring. 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. Equity securities, including exchange-traded funds (ETFs), except as otherwise noted, traded primarily on a domestic securities exchange or the over-the-counter markets, are valued at the last sales price or official closing price on the exchange or primary market on which they trade. Equity securities traded primarily on foreign securities exchanges or markets are valued at the last quoted sales price, or the most recently determined official closing price calculated according to local market convention, available at the time the Fund is valued. If no last sale or official closing price is reported or available, the average of the bid and asked prices generally is used. 2. Equity securities trading in various foreign markets may take place on days when the NYSE is closed. Further, when the NYSE is open, the foreign markets may be closed. Therefore, the calculation of the Fund s net asset value (NAV) may not take place at the same time the prices of certain foreign securities held by the Fund are determined. In many cases, events affecting the values of foreign securities that occur between the time of their last quoted sales or official closing prices and the close of normal trading on the NYSE on a day the Fund s NAV is calculated will not need to be reflected in the value of the Fund s foreign securities. However, the Manager and the Fund s subadviser(s) will monitor for events that would materially affect the value of the Fund s foreign securities. The Fund s subadviser(s) have agreed to notify the Manager of significant events they identify that would materially affect the value of the Fund s foreign securities. If the Manager determines that a particular event would materially affect the value of the Fund s foreign securities, then the Committee will consider such available information that it deems relevant and will determine a fair value for the affected foreign securities in accordance with valuation procedures. In addition, information from an external vendor or other sources may be used to adjust the foreign market closing prices of foreign equity securities to reflect what the Committee believes to be the fair value of the securities as of the close of the NYSE. Fair valuation of affected foreign equity securities may occur frequently based on an assessment that events that occur on a fairly regular basis (such as U.S. market movements) are significant. 3. Investments in open-end investment companies, commingled, or other funds, other than ETFs, are valued at their NAV at the end of each business day. 4. Short-term debt securities with original or remaining maturities of 60 days or less may be valued at amortized cost, provided that amortized cost represents the fair value of such securities. 5. Repurchase agreements are valued at cost. 6. In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. The effect of fair value pricing is that securities may not be 7 USAA Growth Fund

9 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 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, other pricing services, 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, evaluation of credit quality, and an evaluation of the forces that influenced the market in which the securities are purchased and sold. 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 indexes. 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. C. As of April 30, 2016, 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 depreciation of investments as of April 30, 2016, were $617,625,000 and $20,832,000, respectively, resulting in net unrealized appreciation of $596,793,000. D. The Portfolio of Investments category percentages shown represent the percentages of the investments to net assets, which were $2,048,801,000 at April 30, 2016, and, in total, may not equal 100%. A category percentage of 0.0% represents less than 0.1% of net assets. Investments in foreign securities were 11.7% of net assets at April 30, E. New Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No , Presentation of Financial Statements - Going Concern (Subtopic ): Disclosure of Uncertainties about an Entity s Notes to Portfolio of Investments 8

10 Ability to Continue as a Going Concern. The ASU is intended to define management s responsibility to evaluate whether there are conditions or events that create substantial doubt about an organization s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued). The ASU is effective for annual periods ending after December 15, 2016, and interim periods within those annual periods. At this time, management is evaluating the impact of this guidance on the Fund's financial statement disclosures. PORTFOLIO ABBREVIATIONS AND DESCRIPTIONS ADR American depositary receipts are receipts issued by a U.S. bank evidencing ownership of foreign shares. Dividends are paid in U.S. dollars. SPECIFIC NOTES (a) Rate represents the money market fund annualized seven-day yield at April 30, * Non-income-producing security. 9 USAA Growth Fund