7
Morningstar FundInvestor
June 2
014
Morningstar Analyst Rating
05-21-14
„
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
28.00
27.03
21.66
17.72
18.70
16.81
12.86
20.31
19.96
17.83
17.90
15.47
Total Return %
3.59
27.74
23.41
-4.35
12.19
31.36
-34.00
9.32
23.96
7.71
18.33
27.73
+/-MSCI WexUS
-0.22
12.45
6.58
9.36
1.04
-10.09
11.53
-7.33
-2.69
-8.91
-2.58
-13.10
+/-MSCI Ac Wrld ND
-0.63
4.94
7.28
3.00
-0.48
-3.27
8.19
-2.34
3.01
-3.13
3.10
-6.26
Income Return %
0.00
0.87
1.12
0.88
0.92
0.65
1.08
0.95
2.55
0.49
0.55
0.30
Capital Return %
3.59
26.87
22.29
-5.23
11.27
30.71
-35.08
8.37
21.41
7.22
17.78
27.43
Total Rtn % Rank Cat
49
35
4
26
54
57
13
53
14
76
22
80
Income $
0.00
0.19
0.20
0.16
0.15
0.08
0.21
0.18
0.42
0.08
0.08
0.04
Capital Gains $
0.00
0.44
0.01
0.00
0.00
0.00
0.31
1.35
1.71
1.37
0.32
0.00
Expense Ratio %
.
1.25
1.30
1.29
1.34
1.42
1.24
1.30
1.26
1.30
1.32
1.53
Income Ratio %
.
0.93
0.96
0.95
0.76
1.31
1.01
1.31
2.15
0.50
0.59
0.35
Turnover Rate %
.
12
12
17
15
20
28
29
44
36
.
138
Net Assets $mil
1,128
1,054
724
571
549
460
351
563
506
363
329
273
Performance
05-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
2.99 -12.51 14.03 9.18 12.19
3.42 4.14 -18.02 8.34 -4.35
14.33 -5.28
7.40 6.10 23.41
8.86 0.34
8.28 7.99 27.74
0.55
. . . .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS Ac Wrld ND
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
2.64 -0.92
-0.92
47 10,264
6.27 1.54
0.25
41 10,627
18.24 3.70
1.09
45 11,824
12.69 8.06
3.70
6 14,311
17.09 6.60
3.36
12 22,009
9.69 1.90
2.22
12 25,216
6.50 0.99
1.92
50 25,718
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.19
5
0.45
40
16.67
9
0.36
37
8.84
9
0.78
52
Potential Capital Gain Exposure: 36% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
18.24
3 Yr
12.69
High
Avg
5 Yr
17.09
+Avg
Avg
10 Yr
9.69
High
-Avg
Incept
8.45
Other Measures
Standard Index
Best Fit Index
MSCI WexUS
MSCI World
Alpha
8.1
1.5
Beta
0.85
1.06
R-Squared
89
97
Standard Deviation
14.87
Mean
12.69
Sharpe Ratio
0.88
Morningstar’s Take
by William Samuel Rocco 05-21-14
USAA World Growth has several strengths.
This fund, which has been subadvised by MFS since
mid 2002, has a personnel advantage over most of its
world-stock rivals. David Mannheim is one of the most
seasoned and skilled global-equity managers around.
Roger Morley, who has comanaged this fund with
Mannheim since late 2009, also has good credentials.
And the two MFS managers are supported by a sizable
squad of domestic-stock analysts who have earned
good results on their own at Bronze-rated MFS
Research MFRFX, as well as a big team of
foreign-equity analysts who have posted strong returns
at MFS Research International MRSAX.
Meanwhile, Mannheim and Morley follow a sound
strategy that has an attractive mix of tame and bold
characteristics and a track record of success
elsewhere. On the more reserved side, the managers
focus on well-established, higher-quality firms that are
growing at strong but sustainable rates, pay ample
attention to valuations, and avoid investing too much in
any one holding. But they also regularly allow their
stock selection to lead to significant country and
sector over- and under-weightings, so this fund s
aggregate portfolio is always rather distinctive. And
the fact that this approach has earned good long-term
risk-adjusted results at Silver-rated MFS Institutional
International Equity MIEIX and other MFS offerings
adds to its appeal.
What’s more, Mannheim and Morley have also had
considerable success with this quality-oriented
discipline here. This fund has posted superior returns
over the past 12 months, as several health-care and
consumer-related stocks that have been in the
portfolio for years have posted strong gains. More
importantly, this fund has performed well in a variety
of climates in the past and has delivered impressive
results over time.
Thanks to these positive traits, this global-equity
fund is one of the more appealing offerings in the
world-stock category and is an attractive source of
long-term exposure to blue chips.
Address:
9800 Fredericksburg Road
San Antonio, TX 78288
800-531-8722
Web Address:
Inception:
10-01-92
Advisor:
USAA Asset Management Company
Subadvisor:
MFS Investment Management
NTF Plans:
Vanguard NTF
Minimum Purchase:
$3000
Add: $50 IRA: $0
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:$397
5Yr:$686 10Yr:$1511
Income Distribution:
Annually
Data through May 31, 2014
USAA World Growth
Ticker
Status Yield Total Assets
Mstar Category
USAWX Open
0.7% $1,150 mil
World Stock
95% 99% 98% 99% 98% 98% 99% 97%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 05-14
Historical Profile
Return
Risk
Rating
High
Average
Highest
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
14.0
18.0
22.8
28.4
Portfolio Analysis
02-28-14
Share change since 11-13 Total Stocks:94 Sector
Country
% Assets
Walt Disney Co
Cnsmr Cyc United States
3.15
Linde AG
Basic Mat
Germany
2.75
Nestle SA
Cnsmr Def
Switzerland
2.70
Thermo Fisher Scientific
Hlth care United States
2.59
Reckitt Benckiser Group
Cnsmr Def
U.K.
2.52
Honeywell International
Industrl
United States
2.47
Bayer AG
Hlth care Germany
2.36
Diageo PLC
Cnsmr Def
U.K.
2.33
Accenture PLC Class A
Technology United States
2.08
Visa Inc Class A
Finan Svs United States
2.07
United Technologies Corp
Industrl
United States
2.03
Time Warner Inc
Cnsmr Cyc United States
1.88
Oracle Corporation
Technology United States
1.86
State Street Corp
Finan Svs United States
1.84
3M Co
Industrl
United States
1.84
LVMH Moet Hennessy Louis
Cnsmr Cyc France
1.78
Canadian National Railwa
Industrl
Canada
1.74
Heineken NV
Cnsmr Def
Netherlands
1.70
Danone
Cnsmr Def
France
1.65
Schlumberger NV
Energy
United States
1.53
Current Investment Style
Market Cap %
Giant
46.1
Large
45.2
Mid
8.7
Small
0.0
Micro
0.0
Avg $mil:
43,802
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
United States 51
U.K.
11
France
9
Germany
8
Switzerland 7
Regional Exposure
% Stock
UK/W. Europe 42
Japan
2
Asia X Japan 2
N. America 53
Latn America 1
Other
0
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 40.23
.
BasicMat 7.57
. . .
CnsmrCyc16.63
. . .
FinanSvs 16.03
. . .
Real Est 0.00
. . .
Sensitive 29.68
.
CommSrvs 1.41
. . .
Energy 3.43
. . .
Industrl 13.50
. . .
Technlgy 11.34
. . .
Defensive30.10
.
CnsmrDef17.71
. . .
Hlthcare 12.39
. . .
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
2.0
Stocks
96.9
Bonds
0.0
Other
1.2
Foreign
48.8
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.43
4.87
4.41
6.32
10.89
0.92
2.35
16.96
8.10
0.23
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
17.07
2.57
2.00
9.36
1.83
1.15
1.33
1.54
1.32
0.75
©
2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor
timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at
To order reprints, call 312-696-6100.
mfb.morningstar.com.
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