Prospectus - USAA

USAA Asset Management Company (AMCO) manages these Funds. For
easier reading, AMCOmay be referred to as “we” or “us” throughout the
prospectus.
INVESTMENT OBJECTIVE
BOTH FUNDS
What is each Fund’s investment objective?
Each Fund has a common investment objective of providing California investors
with a high level of current interest income that is exempt from federal and
California state income taxes. The California Money Market Fund has a further
objective of preserving capital and maintaining liquidity. Each Fund has
separate investment policies to achieve its objective. The Funds’ Board of
Trustees (the Board) may change a Fund’s investment objective without
shareholder approval.
PRINCIPAL INVESTMENT STRATEGY
What is each Fund’s principal investment strategy?
Each Fund primarily invests its assets in securities issued by the state of
California, its political subdivisions and instrumentalities, and by other
government entities if, in the opinion of counsel to the issuer, the income from
such obligations is excluded from gross income for federal income tax purposes
and is exempt from California state income taxes.
These securities include municipal debt obligations that have been issued by
California and its political subdivisions and duly constituted state and local
authorities and corporations. We refer to these securities as California taxexempt
securities. California tax-exempt securities generally are issued to fund
public infrastructure projects such as streets and highways, schools, water and
sewer systems, hospitals, and airports. They also may be issued to refinance outstanding
obligations as well as to obtain funds for general operating expenses
and for loans to other public institutions and facilities.
What types of tax-exempt securities will be included in each
Fund’s portfolio?
Each Fund’s assets may be invested in, among other things, any of the
following tax-exempt securities, except as otherwise noted:
15 | USAA California Funds