USAA Launches Funds Keyed to Inflation and Interest-Rate Concerns

SAN ANTONIO--()--USAA today announced the launch of two new mutual funds as part of an overall strategy to increase members’ and other customers’ investment solutions in response to economic uncertainty and the potential for inflation and rising interest rates.

The USAA Real Return Fund (USRRX) addresses inflation fears by allowing investors to invest in a diversified range of asset classes. The fund is actively managed to adjust allocations according to the market environment. The fund’s asset categories may include U.S. Treasury Inflation Protected Securities, bank loans, floating-rate notes, high-yield bonds, precious metals and minerals equities, real estate investment trusts, and commodity-linked investments.

The USAA Ultra Short-Term Bond Fund (UUSTX) is designed for risk-averse investors who are concerned about rising interest rates and are seeking a bond fund with less price sensitivity due to its shorter maturity and ability to reprice quickly. The fund also seeks to provide better returns than money market funds.

“Many investors look for solutions that help them address the current market and economic fluctuations. These funds are designed to provide strategic solutions to address two timely market-related concerns: low yields on money market funds and the potential for inflation,” said Dan McNamara, president, USAA Investment Management Company. “With many investors losing a significant portion of their equities balance in the last two years, finding ways to regain ground is critical, particularly for investors who are nearing retirement age.”

USAA has $45.5 billion in mutual fund assets under management. With the two new additions, USAA’s fund family includes 48 mutual funds which are open to all investors through USAA by visiting or calling 1-800-531-USAA (8722). Many of the USAA funds also are available through firms such as TD Ameritrade, Vanguard, Pershing and E*Trade.

About USAA

USAA provides insurance, banking, investment and retirement products and services to 7.8 million members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving or have honorably served our nation in the U.S. military – and their families. For more information about USAA, or to learn more about membership, visit

Consider the investment objectives, risks, charges and expenses of the USAA mutual funds carefully before investing. Contact us at 800-531-8910 for a prospectus containing this and other information about the funds from USAA Investment Management Company, Distributor. Read it carefully before investing.

Investments/Insurance: Not FDIC Insured • Not Bank Guaranteed • May Lose Value.

Investing in securities products involves risk, including possible loss of principal.

The Fund is subject to various risks including Real Estate Investment Trusts (REIT), Exchange Traded Funds (ETFs), and derivative risk. Investing in REITs may subject the Fund to many of the same risks associated with the direct ownership of real estate. Exchange Traded Funds (ETFs) are subject to risks similar to those of stocks. The derivative risk is that it is not well-correlated with the security, index, or currency to which it relates. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.

As interest rates rise, existing bond prices fall.

The Fund may be subject to stock market risk and is non-diversified which means that it may invest a greater percentage of its assets in a single issuer. Individual stocks will fluctuate in response to the activities of individual companies, general market, and economic conditions domestically and abroad. When redeemed or sold, may be worth more or less than the original cost.

Foreign investing is subject to additional risks, such as currency fluctuations, market illiquidity, and political instability.

USAA means United Services Automobile Association and its affiliates. Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers.


Sheila Rose, 212-453-2492


Sheila Rose, 212-453-2492