Common use of Equity Funds Clause in Contracts

Equity Funds. The USAA Emerging Markets Fund seeks capital appreciation by normally investing at least 80% of the Fund’s assets in equity securities of emerging market companies. The “equity securities” in which the Fund principally invests are common stocks, preferred stocks, securities convertible into common stocks, and securities that carry the right to buy common stocks. This 80% policy may be changed upon at least 60 days’ written notice to shareholders. The USAA Growth Fund seeks long-term growth of capital by investing in a diversified portfolio of equity securities selected for their growth potential. Although the Fund will invest primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities including securities issued in emerging markets. The Fund employs a multi-manager structure with the underlying managers implementing fundamentally driven security selection investment processes that focus on companies exhibiting high levels of growth. The Fund may also invest in warrants, rights, real estate investment trusts, convertible securities, and in nonconvertible debt securities when it is believed that these securities will offer a good prospect for appreciation. The USAA Income Stock Fund seeks current income with the prospect of increasing dividend income and the potential for capital appreciation by normally investing at least 80% of the Fund’s assets in common stocks, with at least 65% of the Fund’s assets normally invested in common stocks of companies that pay dividends. This 80% policy may be changed upon at least 60 days’ written notice to shareholders. The Fund attempts to provide a portfolio with a dividend yield that is, overtime, at or above the average of the Xxxxxxx 1000 Value Index. Although the Fund will invest primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities, including securities in emerging markets. The portfolio may include common stocks, depositary receipts, real estate investment trusts (“REITs”), securities convertible into common stocks, and securities that carry the right to buy common stocks. Additionally, the Fund may invest in derivatives, including futures and options and may write (sell) covered call options on the securities it holds to generate income. The USAA International Fund seeks capital appreciation by normally investing at least 80% of its assets in equity securities of foreign (including emerging markets) companies. The “equity securities” in which the Fund principally invests are common stocks, depositary receipts, preferred stocks, securities convertible into common stocks, and securities that carry the right to buy common stocks, including rights and warrants. The Fund normally will invest its assets in investments that are tied economically to a number of countries throughout the world. However, the Fund may invest a significant percentage of its assets in securities of issuers in a single country, a small number of countries, or a particular geographic region. The Fund may invest in securities of companies of any size, including mid- and small-cap companies. The Fund uses a combination of quantitative analysis as well as an active bottom-up investment approach to buying and selling investments. A quantitative process is used to systematically evaluate an issuer’s valuation, price and earnings momentum, earnings quality, and other factors also may be considered. Investments are also selected based on fundamental analysis of individual issuers and their potential in light of their financial condition and market, economic, political, and regulatory conditions. Factors considered may include analysis of an issuer’s earnings, cash flows, competitive position, and management ability. The USAA Small Cap Stock Fund seeks long-term growth of capital by normally investing at least 80% of its assets in equity securities of companies with small market capitalizations. This 80% policy may be changed upon at least 60 days’ written notice to shareholders. Although the Fund will invest primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities including securities issued in emerging markets. The Fund considers equity securities to include, among others, common stocks, preferred stocks, securities convertible into com mon stocks, and securities that carry the right to buy common stocks. A value fund is one in which the portfolio manager searches for securities that are believed to not reflect the true value in the particular security’s current share price. However, over time the share price may increase as the market recognizes the overall value of the company. These types of securities are often referred to as being “undervalued,” and the stocks’ share prices typically are below average in comparison to such factors as earnings and book value. The USAA Value Fund seeks long-term growth of capital by investing its assets primarily in equity securities of companies that are considered to be undervalued. Although the Fund will invest primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities including securities issued in emerging markets. The Fund considers equity securities to include, among others, common stocks, preferred stocks, securities convertible into common stocks, and securities that carry the right to buy common stocks. A value fund is one in which the portfolio manager searches for securities that are believed to not reflect the true value in the particular security’s current share price. However, over time the share price may increase as the market recognizes the overall value of the company. These types of securities are often referred to as being “undervalued,” and the stocks’ share prices typically are below average in comparison to such factors as earnings and book value. The Victory Trivalent International Small-Cap Fund seeks to provide long- term grown of capital by investing primarily in equity securities of companies principally in countries represented in the S&P® Developed ex- U.S. Small Cap Index. Under normal circumstances, at least 80% of the Fund’s assets will be invested in securities of small- capitalization companies. The Fund considers any company with a market capitalization at the time of purchase that is within such country’s smallest 15% based on market capitalization to be a small- capitalization company. The size of companies in the index changes with market conditions and the composition of the index.

Equity Funds. The USAA Emerging Markets Fund seeks capital appreciation by normally investing invest- ing at least 80% of the Fund’s assets in equity securities of emerging market companies. The “equity securities” in which the Fund principally invests are common stocks, preferred stocks, securities secu- rities convertible into common stocks, and securities that carry the right to buy common stocks. This 80% policy may be changed upon at least 60 days’ written notice to shareholders. The USAA Growth Fund seeks long-term growth of capital by investing in a diversified portfolio of equity securities selected for their growth potential. Although the Fund will invest primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities including securities issued in emerging markets. The USAA Growth & Income Fund employs seeks capital growth with a multi-manager structure with secondary invest- ment objective is current income by investing primarily in equity securities that show the underlying managers implementing fundamentally driven security selection investment processes that focus on companies exhibiting high levels best potential for total return through a combination of growthcapital growth and income. The Although the Fund may also invest invests primarily in warrants, rights, real estate investment trusts, convertible U.S. securities, and it may invest up to 20% of its total assets in nonconvertible debt securities when it is believed that these securities will offer a good prospect for appreciationforeign securities, including securi- ties issued in emerging markets. The USAA Income Stock Fund seeks current income with the prospect of increasing dividend income and the potential for capital appreciation by normally investing at least 80% of the Fund’s assets in common stocks, with at least 65% of the Fund’s assets normally invested in common stocks of companies com- panies that pay dividends. This 80% policy may be changed upon at least 60 days’ written notice to shareholders. The Fund attempts to provide a portfolio with a dividend yield that is, overtime, at or above the average of the Xxxxxxx 1000 Value Index. Although the Fund will invest primarily primar- ily in U.S. securities, it may invest up to 20% of its total assets in foreign securitiessecuri- ties, including securities in emerging markets. The portfolio may include common stocks, depositary receipts, real estate investment trusts (“REITs”), securities convertible into common stocks, and securities that carry the right to buy common stocks. Additionally, the Fund may invest in derivatives, including futures and options and may write (sell) covered call options on the securities it holds to generate income. The USAA International Fund seeks capital appreciation by normally investing invest- ing at least 80% of its assets in equity securities of foreign (including emerging emerg- ing markets) companies. The “equity securities” in which the Fund principally invests are common stocks, depositary receipts, preferred stocks, securities convertible into common stocks, and securities that carry the right to buy common stocks, including rights and warrants. The Fund normally will invest its assets in investments that are tied economically to a number of countries throughout the world. However, the Fund may invest a significant percentage of its assets in securities of issuers in a single country, a small number of countries, or a particular geographic region. The Fund may invest in securities of companies of any size, including mid- and small-cap companies. The Fund uses a combination of quantitative analysis as well as an active bottom-up investment approach to buying and selling investments. A quantitative process is used to systematically evaluate an issuer’s valuation, price and earnings momentum, earnings quality, and other factors also may be considered. Investments are also selected based on fundamental analysis of individual issuers and their potential in light of their financial condition and market, economic, political, and regulatory conditions. Factors considered may include analysis of an issuer’s earnings, cash flows, competitive position, and management ability. The USAA Small Cap Stock Fund seeks long-term growth of capital by normally nor- mally investing at least 80% of its assets in equity securities of companies with small market capitalizations. This 80% policy may be changed upon at least 60 days’ written notice to shareholders. Although the Fund will invest primarily primar- ily in U.S. securities, it may invest up to 20% of its total assets in foreign securities including securities issued in emerging markets. The Fund considers equity securities to include, among others, common stocks, preferred stocks, securities convertible into com mon stocks, and securities that carry the right to buy common stocks. A value fund is one in which the portfolio manager searches for securities that are believed to not reflect the true value in the particular security’s current share price. However, over time the share price may increase as the market recognizes the overall value of the company. These types of securities are often referred to as being “undervalued,” and the stocks’ share prices typically are below average in comparison to such factors as earnings and book value. The USAA Value Fund seeks long-term growth of capital by investing its assets primarily in equity securities of companies compa- xxxx that are considered to be undervaluedunder- valued. Although the Fund will invest primarily in U.S. securities, it may invest up to 20% of its total assets in foreign securities including securities issued in emerging markets. The Fund considers equity securities to include, among others, common stocks, preferred stocks, securities convertible into common stocks, and securities that carry the right to buy common stocks. A value fund is one in which the portfolio manager searches for securities that are believed to not reflect the true value in the particular security’s current share price. However, over time the share price may increase as the market recognizes the overall value of the company. These types of securities are often referred to as being “undervalued,” and the stocks’ share prices typically are below average in comparison to such factors as earnings and book value. The Victory Trivalent International Small-Cap Fund seeks to provide long- term grown of capital by investing primarily in equity securities of companies principally in countries represented in the S&P® Developed ex- U.S. Small Cap Index. Under normal circumstances, at least 80% of the Fund’s assets will be invested in securities of small- capitalization companies. The Fund considers any company with a market capitalization at the time of purchase that is within such country’s smallest 15% based on market capitalization to be a small- capitalization company. The size of companies in the index changes with market conditions and the composition of the index.