Common use of Over-the-Counter Clause in Contracts

Over-the-Counter. (OTC) Risk: OTC transactions involve risk in addi- tion to those incurred by transactions in securities traded on exchanges. OTC-listed companies may have limited product lines, markets, or financial resources. Many OTC stocks trade less frequently and in smaller volume than exchange-listed stocks. The values of these stocks may be more volatile than exchange-listed stocks, and a Fund may experience difficulty in purchasing or selling these securities at a fair price. The following paragraph also applies to the USAA Emerging Markets Fund and USAA International Fund.

Over-the-Counter. (OTC) Risk: OTC transactions involve risk in addi- tion addition to those incurred by transactions in securities traded on exchanges. OTC-listed companies may have limited product lines, markets, or financial resources. Many OTC stocks trade less frequently and in smaller volume than exchange-listed stocks. The values of these stocks may be more volatile than exchange-listed stocks, and a Fund may experience difficulty in purchasing or selling these securities at a fair price. The following paragraph also applies to the USAA Emerging Markets Fund and USAA International Fund.

Over-the-Counter. (OTC) Risk: OTC transactions involve risk in addi- tion to those incurred by transactions in securities traded on exchanges. OTC-listed companies may have limited limit- ed product lines, markets, or financial resources. Many OTC stocks trade less frequently and in smaller volume than exchange-listed stocks. The values of these stocks may be more volatile than exchange-listed stocks, and a Fund may experience difficulty in purchasing or selling these securities at a fair price. The following paragraph also applies to the USAA Emerging Markets Fund and USAA International Fund.