USAA Asset Management Company
USAA Asset Management Company
0000 Xxxxxxxxxxxxxx Xxxx
San Antonio, TX 78288
Gentlemen:
Pursuant to Section 1(b) of the Advisory Agreement dated as of August 1, 2006, between USAA Mutual Funds Trust (the Trust) and USAA Investment Management Company as transferred to USAA Asset Management Company (AMCO) (the Manager), please be advised that the Trust has established two new series of its shares, namely, the Target Retirement 2060 Fund and Flexible Income Fund (the Funds), and please be further advised that the Trust desires to retain the Manager to render investment advisory services under the Advisory Agreement to the Funds at the fees stated below:
ADVISORY FEE SCHEDULE
USAA Target Retirement 2060 Fund 0.00%
USAA Flexible Income Fund 0.50%
In addition, revised Schedule A to the Advisory Agreement reflecting the addition of the Funds to the Advisory Agreement is attached hereto as Exhibit A and is hereby approved.
Please state below whether you are willing to render such services at the fee stated above.
Attest: /S/ XXXXX X. XXXXXXX By: /S/ XXXXXX X. XXXXXXXX
Xxxxx X. Xxxxxxx Xxxxxx X. XxXxxxxx
Secretary President
Dated: July 12, 2013
We, as the sole shareholder of the above named Funds, do hereby approve the Advisory Agreement and are willing to render investment advisory services to the USAA Target Retirement 2060 Fund and USAA Flexible Income Fund at the fees stated above. In addition, we approve Exhibit A hereto as revised Schedule A to the Advisory Agreement.
USAA ASSET MANAGEMENT COMPANY
Attest: /S/ XXXXX X. XXXXXXX By:/S/ XXXXXX XXXXXXXXXX
Xxxxx X. Xxxxxxx Xxxxxx Xxxxxxxxxx
Secretary President
Dated: July 12, 2013
EXHIBIT A
SCHEDULE A TO ADVISORY AGREEMENT
LISTING OF FUNDS
NAME OF FUND
Aggressive Growth Fund
Capital Growth Fund
California Bond Fund
California Money Market Fund
Cornerstone Conservative Fund
Cornerstone Moderate Fund
Cornerstone Moderately Conservative Fund
Cornerstone Moderately Aggressive Fund
Cornerstone Aggressive Fund
Cornerstone Equity Fund
Emerging Markets Fund
First Start Growth Fund
Flexible Income Fund
Global Managed Volatility Fund
Government Securities Fund
Growth & Income Fund
Growth and Tax Strategy Fund
Growth Fund
High Income Fund
Income Stock Fund
Income Fund
Intermediate-Term Bond Fund
International Fund
Managed Allocation Fund
Money Market Fund
New York Bond Fund
New York Money Market Fund
Precious Metals and Minerals Fund
Real Return Fund
Science & Technology Fund
Short-Term Bond Fund
Small Cap Stock Fund
Target Retirement Income Fund
Target Retirement 2020 Fund
Target Retirement 2030 Fund
Target Retirement 2040 Fund
Target Retirement 2050 Fund
Target Retirement 2060 Fund
Tax Exempt Intermediate-Term Fund
Tax Exempt Long-Term Fund
Tax Exempt Money Market Fund
Tax Exempt Short-Term Fund
Treasury Money Market Trust
Total Return Strategy Fund
Ultra Short-Term Bond Fund
Value Fund
Xxxxxxxx Xxxx Fund
Virginia Money Market Fund
World Growth Fund
Schedule B-1 to Advisory Agreement - Listing of Funds
with Performance Adjustment
Name of Fund1
|
Performance Index
|
Annual Basic
Fee Rate
|
Aggressive Growth Fund
|
Lipper Large-Cap Growth Funds Index
|
*
|
Cornerstone Moderate Fund
|
Lipper Balanced Funds Index
|
.75%
|
California Bond Fund
|
Lipper California Municipal Debt Funds Index
|
**
|
Capital Growth Fund
|
Lipper Global Funds Index
|
.75%
|
Cornerstone Moderately Aggressive Fund
|
Lipper Global Flexible Funds Index
|
.75%
|
Emerging Markets Fund
|
Lipper Emerging Markets Funds Index
|
1.00%
|
First Start Growth Fund
|
Lipper Flexible Portfolio Funds Index
|
.75%
|
Government Securities Fund
|
Lipper Intermediate U.S. Government Funds Index
|
.125%
|
Growth & Income Fund
|
Lipper Multi-Cap Core Funds Index
|
.60%
|
Growth and Tax Strategy Fund
|
Composite Consisting of 51% of the Lipper General Municipal Bond Funds Index and 49% of the Lipper Large Cap Core Funds Index
|
.50%
|
Growth Fund
|
Lipper Large-Cap Growth Funds Index
|
.75%
|
High Income Fund
|
Lipper High Current Yield Index
|
.50%
|
Income Stock Fund
|
Lipper Equity Income Funds Index
|
.50%
|
Income Fund
|
Lipper Corporate Debt Funds A Rated Index
|
.24%
|
Intermediate-Term Bond Fund
|
Lipper Intermediate Investment Grade Debt Funds Index
|
***
|
1 The Performance Adjustment initially will be determined by reference to the sole outstanding class of shares of each Fund. If, in the future, a Fund offers more than one class of shares, the Performance Adjustment for that Fund will continue to be determined by reference to the initial class of shares, unless the Board determines otherwise.
Tax Exempt Intermediate-Term Fund
|
Lipper Municipal Debt Funds Index
|
.28%
|
International Fund
|
Lipper International Funds Index
|
.75%
|
Tax Exempt Long-Term Fund
|
Lipper General Municipal Debt Funds Index
|
.28%
|
New York Bond Fund
|
Lipper New York Municipal Debt Funds Index
|
**
|
Precious Metals and Minerals Fund
|
Lipper Gold Funds Index
|
.75%
|
Science & Technology Fund
|
Lipper Science & Technology Funds Index
|
.75%
|
Short-Term Bond Fund
|
Lipper Short Investment Grade Debt Funds Index
|
.24%
|
Tax Exempt Short-Term Fund
|
Lipper Short Municipal Debt Funds Index
|
.28%
|
Small Cap Stock Fund
|
Lipper Small-Cap Core Funds Index
|
.75%
|
Total Return Strategy Fund
|
Lipper Flexible Portfolio Funds Index
|
.65%
|
Ultra Short-Term Bond Fund
|
Lipper Ultra Short Funds Index
|
.24%
|
Value Fund
|
Lipper Multi-Cap Value Funds Index
|
.75%
|
Xxxxxxxx Xxxx Fund
|
Lipper Virginia Municipal Debt Funds Index
|
**
|
World Growth Fund
|
Lipper Global Funds Index
|
.75%
|
*
|
The fee is computed at one-half of one percent (.50%) of the first $750 million of average net assets, two-fifths of one percent (.40%) of the portion of average net assets over $750 million but not over $1.5 billion, and one-third of one percent (.33%) of the portion of average net assets over $1.5 billion.
|
**
|
The fee is computed at one-half of one percent (.50%) of the first $50 million of average net assets, two-fifths of one percent (.40%) of the portion of average net assets over $50 million but not over $100 million, and three-tenths of one percent (.30%) of the portion of average net assets over $100 million. In calculating the fee for the Fund, the average net assets of the California Bond Fund, the New York Bond Fund, and the Xxxxxxxx Xxxx Fund are combined with the average net assets of the California Money Market Fund, the New York Money Market Fund, and the Virginia Money Market Fund, respectively, and the fee is allocated pro rata based upon the average net assets of the two Funds.
|
***
|
The fee is computed at one-half of one percent (.50%) of the first $50 million of average net assets, two-fifths of one percent (.40%) of the portion of average net assets over $50
|
million but not over $100 million, and three-tenths of one percent (.30%) of the portion of average net assets over $100 million.
Schedule B-2 to Advisory Agreement - Performance Adjustment Rate
EQUITY FUNDS
Aggressive Growth Fund
Cornerstone Moderate Fund
Capital Growth Fund
Cornerstone Moderately Aggressive Fund
Emerging Markets Fund
First Start Growth Fund
Growth & Income Fund
Growth Fund
|
Income Stock Fund
International Fund
Science & Technology Fund
Small Cap Stock Fund
Total Return Strategy Fund
Value Fund
World Growth Fund
|
Over/Under Performance Relative
to Index (in basis points)
|
Performance Adjustment Rate
(in basis points as a percentage
of average net assets)
|
+/- 100 to 400
+/- 401 to 700
+/- 701 and greater
|
+/- 4
+/- 5
+/- 6
|
FIXED INCOME FUNDS
California Bond Fund
Government Securities Fund
Growth and Tax Strategy Fund
High Income Fund
Income Fund
Intermediate-Term Bond Fund
|
Tax Exempt Intermediate-Term Fund
Tax Exempt Long-Term Fund
New York Bond Fund
Short-Term Bond Fund
Tax Exempt Short-Term Fund
Ultra Short-Term Bond Fund
Xxxxxxxx Xxxx Fund
|
Over/Under Performance Relative
to Index (in basis points)
|
Performance Adjustment Rate
(in basis points as a percentage
of average net assets)
|
+/- 20 to 50
+/- 51 to 100
+/- 101 and greater
|
+/- 4
+/- 5
+/- 6
|