How to invest in the USAA mutual fund: the experts
The USAA has become one of the most successful mutual funds in the world and now the company is looking to raise some capital to expand its business beyond its traditional focus on retail.
The fund, which has grown to over $4 billion in assets, will soon launch a fund that will focus on investing in companies with high growth potential in the United States, the firm said in a regulatory filing Monday.
The new fund, to be named the USSAVA, will be based on the USIA model, a “distinctive and effective” strategy for the fund, USAA said.
USAA’s USSAVAs are structured to make it easier for investors to diversify their investments.
USSAVIAs are the most attractive funds for both the private and institutional investors who want to buy shares in companies in sectors such as technology, health care, technology, finance, and technology, among others.
It also includes some companies that are highly unlikely to grow or even be profitable in the long run, such as pharmaceuticals.
The USSAVS has seen an average annual return of nearly 22% over the past five years, according to the US Securities and Exchange Commission.
In terms of returns for the average USSAVC, it has returned 12.4%.
“We believe the USVA is an excellent fit for the company’s portfolio of long-term growth opportunities and our investors will find USSAVs to be a compelling investment vehicle,” USAA Chief Financial Officer Stephen P. Lacy said in the filing.
The company has said it expects the USAVA fund to be available in mid-2019, with the fund’s initial public offering starting in 2020.
The value of USSAVPAs has grown from $3.8 billion to $4.3 billion since it was launched in 2010.
The most recent year of data for USSAAVAs was for fiscal 2017.
USVAX, a new fund focused on USAA, was launched earlier this year.
The firm, which was created to help USAA diversify its investments, is seeking to raise an initial public stock offering valued at $1.4 billion and will offer a fund to the public in 2021.
USAVX was established to make USAA a “strategic” investment vehicle for USAA companies and has also raised funding.
USIA, which is a fund focused primarily on companies with a strong U.S. presence, has seen a growth in the past few years.
USA has also expanded into the European and Asian markets, according the SEC.
The funds will focus their efforts on companies in high growth areas that are “potentially attractive” to investors, USSA said.