(PUB) Morningstar FundInvestor

6

Data through December 31, 2013 USAA International

Ticker

Status Yield Total Assets

Mstar Category

USIFX Open

0.8% $3,383 mil

Foreign Large Growth

Morningstar Analyst Rating 12-16-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg Average Above Avg

95% 95% 99% 97% 98% 99% 99% 99% 98%

´

Manager Change Partial Manager Change

14.0 18.0 22.8

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Neutral Negative

∞ ∞ ∞

Investment Values of Fund Investment Values of MSCI WexUS

10.0

People Parent Price

¶ §

7.0

Performance Quartile (within Category) History

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

16.78 -14.58

15.13 -9.08

19.80 31.90 10.99 15.17

21.85 18.50

23.34 12.65

27.00 27.35 10.70

27.44

17.05

22.34 32.43 21.28 17.98

24.32

21.62 -9.81

30.51 18.02

NAV

-35.24 8.83 -76.69 54.36 -73.91 54.44

9.87

Total Return % +/-MSCI WexUS

-49.91 0.37 -43.50 0.41

-14.00 1.88 -10.96 1.79

-26.64 23.58 -26.48 24.08

2.73 2.53 0.91

6.32 2.60

+/-MSCI AC World exUSA Gr ND

0.91

0.75 -9.83 0.13 0.00 1.42 0.79 148 435 4

0.69

0.74

0.98

1.61

1.62

1.39

0.99

1.23

Income Return % Capital Return %

-15.49

31.21

17.76

11.67

24.75

-36.86 7.22

31.04

-11.04 8.88

17.11

8

59

26

73

15

93

1

69

89

31

12

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

0.18 0.00 1.32 0.78

0.10 0.05 1.31 0.91 . 587

0.14 1.44 1.23 1.02

0.21 1.07 1.20 3.29

0.56 2.14 1.20 1.21

0.41 1.55 1.14 1.94

0.44 0.25 1.31 1.89

0.24 0.00 1.23 1.09

0.22 0.00 1.21 1.37

0.30 0.00 1.21 1.56

0.24 0.00 1.21 1.27

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

Performance 12-31-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

36

41

44

32

22

20

25

17

20

.

2009 2010 2011 2012 2013

-13.08 19.77 20.90 5.22 -35.24 0.76 -12.48 16.09 7.32 32.43 3.04 3.59 -20.30 6.02 9.87 13.97 -6.98 6.20 8.43 -9.81 3.07 -1.56 10.25 5.51 22.07

321

805

1,267

1,542

929

1,349

1,601

1,571

1,395

1,740

Portfolio Analysis 08-31-13 Share change since 05-13 Total Stocks:68 Sector

Rating and Risk Time Load-Adj

Country

% Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Bayer AG Nestle SA

Hlth care Germany

3.77 3.36 3.02 2.55 2.40 2.39 2.38 2.37 2.31 2.30 2.30 2.23 2.19 2.16 2.15 2.10 2.09 2.07 2.01 1.84

1 Yr 3 Yr 5 Yr

18.02

Trailing

Total +/- MSCI

+/- MSCI

%Rank Growth of

Cnsmr Def

Switzerland

Return% WexUS AC World exUSA Gr ND

Cat

$10,000

9.12

+Avg

Avg

HSBC Holdings PLC

Finan Svs U.K.

3 Mo 6 Mo 1 Yr

5.51 0.74 16.33 0.99 18.02 2.73 9.12 3.98 13.59 0.78 8.52 0.95 6.75 1.34

0.85 2.43 2.53 4.17 0.69 1.16

53 10,551 42 11,633 54 11,802 26 12,993 51 18,910 23 22,652 27 26,639

13.59

Avg

+Avg -Avg

Linde AG

Basic Mat

Germany

10 Yr Incept

8.52 8.01

+Avg

Honda Motor Co Ltd Compass Group PLC

Cnsmr Cyc Japan Cnsmr Cyc U.K. Cnsmr Cyc U.K. Finan Svs U.K.

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

WPP PLC

Other Measures

Standard Index Best Fit Index MSCI WexUS MSCI EAFE Growth

Standard Chartered PLC

Heineken N.V. ING Groep N.V.

Cnsmr Def

Netherlands

Alpha

3.9

1.1

Finan Svs Netherlands

.

Beta

0.97

1.01

Danone Randstad

Cnsmr Def

France

R-Squared

95

96

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 8.65 21 0.43 63 13.14 47 0.40 54 7.55 28 0.89 77 Potential Capital Gain Exposure: 27% of assets Morningstar’s Take by William Samuel Rocco 12-16-13 USAA International Fund has several positive attributes. This foreign large-growth fund has a personnel edge over most of its rivals. It is subadvised by MFS, which is a good money manager with a strong suite of international-stock funds. Manager Marcus Smith is a skilled MFS veteran who has earned good long-term risk-adjusted returns at a few of that firm’s foreign-stock and Asian-equity mutual funds and separate accounts. Comanager Daniel Ling has a good resume as well. And the two managers have an excellent support team, which includes the MFS managers that run Silver-rated USAA World Growth USAWX as well as the analysts that run Silver-rated MFS International Research MRSAX. The fund’s strategy is another factor in its favor. This fund takes on less risk than most foreign large-growth funds, because Smith and Ling are much more quality-oriented and price-conscious than most of their peers, and they invest less in emerging-markets names as well. But the fund has ample upside

Industrl Industrl

Netherlands

Schneider Electric Air Liquide SA

France France

Standard Deviation

16.45

Basic Mat

Mean

9.12 0.61

LVMH Moet Hennessy Louis

Cnsmr Cyc France

Sharpe Ratio

UBS AG

Finan Svs Switzerland Cnsmr Cyc Japan

Denso Corporation

Canadian National Railwa

Industrl

Canada France Japan

Pernod Ricard NV

Cnsmr Def Basic Mat

potential, because Smith and Ling readily allow their stock selection to lead to distinctive country and sector weights, and their portfolios are more concentrated by issue than the group norm. The fact that this strategy has worked well at several other international-stock funds from USAA and MFS adds to is appeal. Smith and Ling have executed the fund’s moderate growth strategy skillfully over time. Granted, the fund has posted mediocre results in 2013’s generally favorable conditions. But it earned superior gains in the quality-driven rally of 2012 and in some of the surges that occurred earlier in the 2000s. And it has consistently outperformed in sell-offs. As a result, it has handily outpaced--and suffered less volatility than--the average foreign large-growth fund and the typical foreign large-blend offering since Smith came on board in mid-2002. All in all, this fund is well worth a look from risk-conscious investors who are seeking a core foreign holding.

Shin-Etsu Chemical Co Lt

Current Investment Style

Sector Weightings

% of Stocks

Rel MSCI

3 Year Low

WexUS High

Market Cap % Giant 66.1 Large 28.9 Mid 5.1 Small 0.0 Micro 0.0 Avg $mil: 37,624

Value Blnd Growth

Cyclical 45.31 BasicMat 10.00 CnsmrCyc14.81 FinanSvs 20.50 Real Est 0.00 Sensitive 28.46 CommSrvs 1.51 Energy 3.56 Industrl 11.73 Technlgy 11.66 Defensive26.22 CnsmrDef16.25 Hlthcare 9.10 Utilities 0.87

.

h r t y u j i o p a k s d f

Large Mid Small

. 10 5 . 15 9 . 22 19 . . .

. . .

3 2 6 3

Growth Measures Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Price/Cash Flow Dividend Yield % Value Measures Price/Earnings Price/Book Price/Sales

Rel Category

11.11 3.43 0.62 -0.15 3.86 15.25 1.77 1.37 6.39 2.27

0.88 1.60 0.89 NMF 0.05 1.00 0.81 0.96 0.83 1.03

. 22 12 . 13 8

.

. 20 16

9 5 1 0

. .

% Rel Category

Regional Exposure UK/W. Europe 70 Japan 13 Asia X Japan 10

% Stock

N. America 4 Latn America 1 Other 2

Address:

9800 Fredericksburg Road San Antonio, TX 78288 800-531-8722

Minimum Purchase: Min Auto Inv Plan:

$3000

Add: $50 IRA: $3000

$0

Add: .

Sales Fees:

No-load

Composition - Net

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

www.usaa.com

Management Fee:

0.75%, 0.15%A

Country Exposure

% Stock

Cash

0.9

Bonds Other

0.0 1.3

07-11-88

Actual Fees:

Mgt:0.79% Dist: .

U.K.

22 14 13

Germany 12 Switzerland 11

USAA Asset Management Company MFS Investment Management

Expense Projections: Income Distribution:

3Yr:$384 Annually

5Yr:$665 10Yr:$1466

Stocks

97.8

France Japan

Foreign

99.1

(% of Stock)

Vanguard NTF

Mutual Funds ß ®

© 2013Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor timely. Pastperformance is no guarantee of future results.Access updated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.

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