6
Morningstar Analyst Rating
12-16-13
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
§
Positive
Positive
Positive
Neutral
Negative
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 ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
30.51
21.62
24.32
22.34
17.05
27.44
27.00
23.34
21.85
19.80
15.13
16.78
Total Return %
18.02
-9.81
9.87
32.43
-35.24
8.83
27.35
12.65
18.50
31.90
-9.08
-14.58
+/-MSCI WexUS
2.73
-26.64
23.58
21.28
-76.69
54.36
10.70
-14.00
1.88
10.99
-49.91
0.37
+/-MSCI AC World exUSA Gr ND
2.53
-26.48
24.08
17.98
-73.91
54.44
6.32
-10.96
1.79
15.17
-43.50
0.41
Income Return %
0.91
1.23
0.99
1.39
1.62
1.61
2.60
0.98
0.74
0.69
0.75
0.91
Capital Return %
17.11
-11.04
8.88
31.04
-36.86
7.22
24.75
11.67
17.76
31.21
-9.83
-15.49
Total Rtn % Rank Cat
12
31
89
69
1
93
15
73
26
59
4
8
Income $
0.24
0.30
0.22
0.24
0.44
0.41
0.56
0.21
0.14
0.10
0.13
0.18
Capital Gains $
0.00
0.00
0.00
0.00
0.25
1.55
2.14
1.07
1.44
0.05
0.00
0.00
Expense Ratio %
1.21
1.21
1.21
1.23
1.31
1.14
1.20
1.20
1.23
1.31
1.42
1.32
Income Ratio %
1.27
1.56
1.37
1.09
1.89
1.94
1.21
3.29
1.02
0.91
0.79
0.78
Turnover Rate %
20
17
25
20
22
32
.
44
41
.
148
36
Net Assets $mil
1,740
1,395
1,571
1,601
1,349
929
1,542
1,267
805
587
435
321
Performance
12-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
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
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS
AC World exUSA Gr ND
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
5.51 0.74
0.85
53 10,551
16.33 0.99
2.43
42 11,633
18.02 2.73
2.53
54 11,802
9.12 3.98
4.17
26 12,993
13.59 0.78
0.69
51 18,910
8.52 0.95
1.16
23 22,652
6.75 1.34
.
27 26,639
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
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
18.02
3 Yr
9.12
+Avg
Avg
5 Yr
13.59
Avg
+Avg
10 Yr
8.52
+Avg
-Avg
Incept
8.01
Other Measures
Standard Index
Best Fit Index
MSCI WexUS MSCI EAFE Growth
Alpha
3.9
1.1
Beta
0.97
1.01
R-Squared
95
96
Standard Deviation
16.45
Mean
9.12
Sharpe Ratio
0.61
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
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.
Address:
9800 Fredericksburg Road
San Antonio, TX 78288
800-531-8722
Web Address:
Inception:
07-11-88
Advisor:
USAA Asset Management Company
Subadvisor:
MFS Investment Management
NTF Plans:
Vanguard NTF
Minimum Purchase:
$3000
Add: $50 IRA: $3000
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load
Management Fee:
0.75%, 0.15%A
Actual Fees:
Mgt:0.79% Dist:
.
Expense Projections:
3Yr:$384
5Yr:$665 10Yr:$1466
Income Distribution:
Annually
Data through December 31, 2013
USAA International
Ticker
Status Yield Total Assets
Mstar Category
USIFX Open
0.8% $3,383 mil
Foreign Large Growth
95% 95% 99% 97% 98% 99% 99% 99% 98%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13
Historical Profile
Return
Risk
Rating
Above Avg
Average
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
7.0
14.0
18.0
22.8
Portfolio Analysis
08-31-13
Share change since 05-13 Total Stocks:68 Sector
Country
% Assets
Bayer AG
Hlth care Germany
3.77
Nestle SA
Cnsmr Def
Switzerland
3.36
HSBC Holdings PLC
Finan Svs U.K.
3.02
Linde AG
Basic Mat
Germany
2.55
Honda Motor Co Ltd
Cnsmr Cyc Japan
2.40
Compass Group PLC
Cnsmr Cyc U.K.
2.39
WPP PLC
Cnsmr Cyc U.K.
2.38
Standard Chartered PLC
Finan Svs U.K.
2.37
Heineken N.V.
Cnsmr Def
Netherlands
2.31
ING Groep N.V.
Finan Svs Netherlands
2.30
Danone
Cnsmr Def
France
2.30
Randstad
Industrl
Netherlands
2.23
Schneider Electric
Industrl
France
2.19
Air Liquide SA
Basic Mat
France
2.16
LVMH Moet Hennessy Louis
Cnsmr Cyc France
2.15
UBS AG
Finan Svs Switzerland
2.10
Denso Corporation
Cnsmr Cyc Japan
2.09
Canadian National Railwa
Industrl
Canada
2.07
Pernod Ricard NV
Cnsmr Def
France
2.01
Shin-Etsu Chemical Co Lt
Basic Mat
Japan
1.84
Current Investment Style
Market Cap %
Giant
66.1
Large
28.9
Mid
5.1
Small
0.0
Micro
0.0
Avg $mil:
37,624
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
U.K.
22
France
14
Japan
13
Germany
12
Switzerland 11
Regional Exposure
% Stock
UK/W. Europe 70
Japan
13
Asia X Japan 10
N. America 4
Latn America 1
Other
2
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 45.31
.
BasicMat 10.00
.
10 5
CnsmrCyc14.81
.
15 9
FinanSvs 20.50
.
22 19
Real Est 0.00
. . .
Sensitive 28.46
.
CommSrvs 1.51
.
3 2
Energy 3.56
.
6 3
Industrl 11.73
.
22 12
Technlgy 11.66
.
13 8
Defensive26.22
.
CnsmrDef16.25
.
20 16
Hlthcare 9.10
.
9 5
Utilities 0.87
.
1 0
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
0.9
Stocks
97.8
Bonds
0.0
Other
1.3
Foreign
99.1
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.11
3.43
0.62
-0.15
3.86
0.88
1.60
0.89
NMF
0.05
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.25
1.77
1.37
6.39
2.27
1.00
0.81
0.96
0.83
1.03
©
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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