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What Investors Should Know about the USAA International Fund

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USAA International Fund

The USAA International Fund (USIFX) invests at least 80% of its assets in foreign equities. Apart from common stocks, the fund can invest in preferred stocks, depositary receipts, convertible securities, and rights and warrants. The fund is managed by a team of sub-advisors from three different firms.

Though the fund aims to invest in different countries throughout the world, it can invest a sizable portion of its assets in a single country, group of countries, or region. The fund invests across market caps and makes use of a blend of bottom-up and top-down analysis. Fund management looks at factors like a company’s earnings, cash flows, competitive position, and management ability.

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Portfolio composition

The fund has not provided sector-level exposure detail, so we’ll move on to geographic allocation. Stocks from the UK formed 15.6% of the fund’s assets for January, making it the geography with the largest weight. Japan followed, forming 12.3% of the portfolio. France, Germany, and Switzerland, in that order, rounded off the top five countries with the highest weights.

Bayer (BAYZF), Taiwan Semiconductor Manufacturing Company (TSM), Nestlé (NSRGY), Danone (DANOY), and Canadian National Railway (CNI) were among the fund’s 563 holdings as of the end of January. As of January 2016, the fund was managing assets worth $3.1 billion.

Fees and minimums

The USAA International Fund was incepted in July 1988 and has an expense ratio of 1.1%. There is a minimum requirement of $3,000 to invest in this fund and the minimum subsequent investment required is $50. The fund does not levy either a sales charge or a redemption fee.

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