USAA Short‑Term Bond Fund

Overall Morningstar® Rating ★★★★
Out of 447 Short-Term Bond Funds as of 6/30/18

We believe our yield-focused, bond-by-bond approach and fundamental credit research provide 4 primary benefits.

1. Performance vs. Fund Benchmark During Periods of Rising Rates

Rising interest rates typically have a negative effect on the price of bonds. Since 2010, the yield on the 10-Year Treasury Bond has spiked more than 50% three times. Most recently, from September 2017 through April 2018, the 10-year yield increased 48% from 2.05% to 3.03%. The chart below reflects the performance of the USAA Short-Term Bond Fund as well as other benchmarks during these four time periods. The fund may or may not have outperformed these benchmarks in other time periods.

9/7/17 to 4/25/18

The 10-Year Treasury Bond's yield rose to 3.03% (+48%)

September 7, 2017 Chart

7/8/16 to 3/13/17

The 10-Year Treasury Bond's yield rose to 2.62% (+91%)

July 8, 2016 Chart

7/24/12 to 12/31/13

The 10-Year Treasury Bond's yield rose to 3.04% (+111%)

July 24, 2012 Chart

10/8/10 to 2/11/11

The 10-Year Treasury Bond's yield rose to 3.64% (+51%)

October 8, 2011 Chart
Bloomberg Barclays US Aggregate Bond Index USAA Short-Term Bond Fund Morningstar Category Average

Source: Morningstar as of 4/25/18

Morningstar’s calculation of total return is determined each month by taking the change in monthly net asset value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are made using the actual reinvestment NAV, and daily payoffs are reinvested monthly. Unless otherwise noted, Morningstar does not adjust total returns for sales charges (such as front-end loads, deferred loads and redemption fees), preferring to give a clearer picture of a fund’s performance. The total returns do account for management, administrative, 12b-1 fees and other costs taken out of fund assets. Total returns for periods longer than one year are expressed in terms of compounded average annual returns (also known as geometric total returns), affording a more meaningful picture of fund performance than non-annualized figures.

2. The USAA Short-Term Bond Fund has delivered lower expenses and higher yields vs. its peer group average for each standardized time period shown.

Driven by our focus on yield, the Fund’s 12-Month Dividend Distribution Yield and 30-Day SEC Yield currently exceed the category average. The Fund’s yields may not always beat the category averages. The Fund’s expenses are below the category average. The Fund's expenses may not always be below the category average.

Total Returns as of 6/30/18¹ Yields as of 6/30/18
Fund YTD 1-Year 3-Year 5-Year 10-Year 12-Month Yield² 30-Day SEC Yield³ Expense Ratio4
Retail – USSBX
(Inception: 6/1/1993)
2.34% 0.71% 1.57% 1.64% 2.89% 2.15% 2.26% 0.59%
Institutional – UISBX
(Inception: 8/1/2008)
2.62% 0.82% 1.68% 1.75% 3.06% 2.26% 2.86% 0.49%
Bloomberg Barclays US
Credit 1-3 Yr. TR USD Index5
1.77% 0.57% 1.30% 1.41% 2.63%
Morningstar Category Average
(Short-Term Bond)
1.58% 0.39% 1.02% 1.18% 1.88% 1.93% 3.07% 0.75%

Investing in securities products involves risk, including possible loss of principal. The performance data quoted represents past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For the most recent month-end performance, please go to advisorusaa.com.

The various share classes have a common portfolio and different expense structures.

3. Morningstar Ratings as of 6/30/18*

USAA SHORT-TERM BOND (RETAIL SHARE CLASS): USSBX
Morningstar Category: Short-Term Bond

OVERALL
★★★★
Out of 447 Funds
3-YEAR
★★★★
Out of 447 Funds
5-YEAR
★★★★
Out of 378 Funds
10-YEAR
★★★★
Out of 250 Funds

The Morningstar Rating does not include any adjustment for sales loads and charges.

Morningstar Rating is for the Retail share class only; other classes may have different performance characteristics.

4. Experienced and Tenured Portfolio Management

With an average of 19 years of industry experience.


Picture of Brian Smith
Brian Smith, CFA, CPA
Portfolio Manager
Brian is a Portfolio Manager for USAA Short-Term, Intermediate-Term, and Income Funds. Education: BBA in Finance and Accounting from the University of Texas at San Antonio; MBA in Finance from the University of Texas at San Antonio.
Joined USAA in 1985
Joined the industry in 1999
Picture of Julianne Bass
Julianne Bass, CFA
Portfolio Manager
Prior to joining the firm in 1999, Julianne spent 12 years with Van Kampen, Merrill Lynch, Goldman Sachs, The First Boston Corporation, and Drexel Burnham Lambert. Education: BBA from the University of Texas at Austin; MBA from the University of Houston.
Joined USAA in 1999
Joined the industry in 1987
Picture of Kurt Daum
Kurt Daum, J.D.
Portfolio Manager
Prior to joining USAA, Kurt was a Director and Restructuring Counsel at Highland Capital Management and also worked as a high-yield analyst at AIG Investments, preceded by employment as an analyst and restructuring and transactional attorney at Q Investments and Akin Gump Strauss Hauer and Feld. Education: JD from the University of Texas School of Law; BA in Economics and Government from the University of Texas at Austin.
Joined USAA in 2013
Joined the industry in 2002
Picture of Kurt Daum
John Spear
Chief Investment Officer
Prior to joining USAA, John was a Fixed Income Portfolio Manager with American United Life (now One America) in Indianapolis. John was involved in all aspects of taxable fixed income investing during his 8 1/2 years at AUL. Education: Bachelors from Western Illinois University; CFA; MBA from Butler University.
Joined USAA in 1998
Joined the industry in 1986

Consider the investment objectives, risks, charges and expenses of the USAA mutual funds carefully before investing. Download a prospectus containing this and other information about the funds from USAA Investment Management Company, Distributor. Read it carefully before investing.

Brian Smith started his career at USAA as an accountant before going into portfolio management.

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