Morningstar Magazine - June/July 2017 - 2

Invest the
USAA way.
Proven Performance
78% of all USAA mutual funds beat their category average
for ten years according to Lipper for the period ending
March 31, 2017.
100% of USAA bond funds beat their category average
for five and ten years, according to Lipper for the period
ending March 31, 2017.
Ranked #3 in the Taxable Bond category and #12 overall
among all asset managers by Barron's.

Learn more about USAA investments today.
800-531-1445 | advisor.usaa.com
The Lipper rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares
the performance of mutual funds within a universe of funds having similar investment objectives. Rankings are based on total return
performance: with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front-end
or back-end sales charges. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.
Barron's ranking is based on 61 qualifying U.S Fund companies. To qualify for the Lipper/Barron's Fund Survey, a group must have
at least three funds in Lipper's general U.S.-stock category, as well as one in world equity, which combines global and international
funds. We also require at least one mixed-equity fund, which holds stocks and bonds. Fund shops also must have at least two
taxable-bond funds and one-tax-exempt offering.
Each fund's returns are adjusted for 12b-1 fees, which are used for marketing and distribution expenses. The funds usually add these
fees back into returns. Our aim is to measure the manager's skill. Fund loads, or sales charges, aren't included in the calculation of
returns, either.
Each fund's return is measured against those of all funds in its Lipper category, such as, say, small-cap value. That leads to a percentile
ranking, with 100 the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its
general classification-world equity, for instance. If a family's biggest funds do well, that boosts its overall ranking. Poor performance
in a big fund obviously has a big effect on the ranking.
Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds.
The category weightings for the one-year results: general equity, 38.04%; world equity, 12.77%; mixed equity, 17.36%; taxable bonds,
27.43% and tax-exempt bonds, 4.40%. The category weightings for the five-year results: general equity, 40.12%; world equity, 12.32%;
mixed equity, 17.30%; taxable bonds, 25.56% and tax-exempt bonds, 4.70%. The category weightings for the 10-year results: general
equity, 41.89%; world equity, 12.30%; mixed equity, 14.44%; taxable bonds, 25.99% and tax-exempt bonds, 5.38%.
USAA mutual funds advised by USAA Asset Management Company, a registered investment adviser; distribution services provided
by USAA Investment Management Company, a registered broker-dealer. ©2017 USAA. 242011-0517
FOR INSTITUTIONAL INVESTOR USE ONLY. This communication or any excerpt thereof may not be forwarded or made to any
retail investor or prospective investor.

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Table of Contents for the Digital Edition of Morningstar Magazine - June/July 2017