SEMIANNUAL REPORT USAA CORNERSTONE EQUITY FUND (UCEQX) NOVEMBER

SEMIANNUAL REPORT USAA CORNERSTONE EQUITY FUND (UCEQX) NOVEMBER 30, 2017

TABLE OF CONTENTS Fund Objective 1 Investment Overview 2 Financial Information Portfolio of Investments 3 Notes to Portfolio of Investments 4 Financial Statements 5 Notes to Financial Statements 8 Expense Example 19 This report is for the information of the shareholders and others who have received a copy of the currently effective prospectus of the Fund, managed by USAA Asset Management Company. It may be used as sales literature only when preceded or accompanied by a current prospectus, which provides further details about the Fund. 2018, USAA. All rights reserved.

FUND OBJECTIVE The USAA Cornerstone Equity Fund (the Fund) seeks capital appreciation over the long term. Types of Investments The Fund invests at least 80% of its assets in a selection of USAA mutual funds and exchange-traded funds (ETFs) (underlying USAA Funds) consisting of a long-term target asset allocation in equity securities. This is often referred to as a fund-of-funds investment strategy. The actual asset class allocation can deviate from time to time from these targets as market conditions warrant. This 80% policy may be changed upon at least 60 days written notice to shareholders. IRA DISTRIBUTION WITHHOLDING DISCLOSURE We generally must withhold federal income tax at a rate of 10% of the taxable portion of your distribution and, if you live in a state that requires state income tax withholding, at your state s tax rate. However, you may elect not to have withholding apply or to have income tax withheld at a higher rate. Any withholding election that you make will apply to any subsequent distribution unless and until you change or revoke the election. If you wish to make a withholding election or change or revoke a prior withholding election, call (800) 531-USAA (8722) or (210) 531-8722. If you do not have a withholding election in place by the date of a distribution, federal income tax will be withheld from the taxable portion of your distribution at a rate of 10%. If you must pay estimated taxes, you may be subject to estimated tax penalties if your estimated tax payments are not sufficient and sufficient tax is not withheld from your distribution. For more specific information, please consult your tax adviser. Fund Objective 1

INVESTMENT OVERVIEW ASSET ALLOCATION 11/30/17 Investment Allocation USAA Funds: Aggressive Growth 1.1% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Emerging Markets 8.9% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Growth 7.1% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Income Stock 6.9% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - International 29.4% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Precious Metals and Minerals 0.9% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - S&P 500 Index 10.7% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Small Cap Stock 4.0% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Value 12.0% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Equity & Alternative 81.0% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - MSCI Emerging Markets Value Momentum Blend Index ETF* - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2.1% MSCI International Value Momentum Blend Index ETF* - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6.4% MSCI USA Small Cap Value Momentum Blend Index ETF* - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1.9% MSCI USA Value Momentum Blend Index ETF* - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8.2% Total Exchange-Traded - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18.6% Cash Equivalents: Money Market Instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.3% Total Money Market Instruments - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.3% * The Fund may rely on certain Securities and Exchange Commission (SEC) exemptive orders or rules that permit funds meeting various conditions to invest in an exchange-traded fund (ETF) in amounts exceeding limits set forth in the Investment Company Act of 1940, as amended, that would otherwise be applicable. Percentages are of the net assets of the Fund and may not equal 100%. 2 USAA Cornerstone Equity Fund

PORTFOLIO OF INVESTMENTS November 30, 2017 (unaudited) Market Number Value of Shares Security (000) EQUITY & ALTERNATIVE FUNDS (81.0%) 41,376 USAA Aggressive Growth Fund $ 1,987 798,695 USAA Emerging Markets Fund 15,615 404,549 USAA Growth Fund 12,581 575,217 USAA Income Stock Fund 12,114 1,543,006 USAA International Fund 51,922 121,320 USAA Precious Metals and Minerals Fund 1,542 500,324 USAA S&P 500 Index Fund 18,892 355,699 USAA Small Cap Stock Fund 7,071 922,007 USAA Value Fund 21,252 Total Equity & Alternative Funds (cost: $112,816) 142,976 EXCHANGE-TRADED FUNDS (18.6%) 72,200 USAA MSCI Emerging Markets Value Momentum Blend Index ETF* 3,599 224,200 USAA MSCI International Value Momentum Blend Index ETF* 11,356 66,200 USAA MSCI USA Small Cap Value Momentum Blend Index ETF* 3,395 280,200 USAA MSCI USA Value Momentum Blend Index ETF* 14,534 Total Exchange-Traded Funds (cost: $32,430) 32,884 MONEY MARKET INSTRUMENTS (0.3%) GOVERNMENT & U.S. TREASURY MONEY MARKET FUNDS (0.3%) 546,023 State Street Institutional Treasury Money Market Fund Premier Class, 1.02% (a) (cost: $546) 546 Total Investments (cost: $145,792) $176,406 ($ in 000s) VALUATION HIERARCHY Assets LEVEL 1 LEVEL 2 LEVEL 3 Total Equity & Alternative Funds $142,976 $ $ $142,976 Exchange-Traded Funds 32,884 32,884 Money Market Instruments: Government & U.S. Treasury Money Market Funds 546 546 Total $176,406 $ $ $176,406 For the period of June 1, 2017, through November 30, 2017, there were no transfers of securities between levels. The Fund s policy is to recognize any transfers in and transfers out as of the beginning of the reporting period in which the event or circumstance that caused the transfer occurred. Portfolio of Investments 3

NOTES TO PORTFOLIO OF INVESTMENTS November 30, 2017 (unaudited) GENERAL NOTES Market values of securities are determined by procedures and practices discussed in Note 1A to the financial statements. The Portfolio of Investments category percentages shown represent the percentages of the investments to net assets, and, in total, may not equal 100%. A category percentage of 0.0% represents less than 0.1% of net assets. The underlying USAA Funds in which the Fund invests are managed by USAA Asset Management Company, an affiliate of the Fund. The Fund invests in the Reward Shares of the USAA S&P 500 Index Fund and the Institutional Shares of the other USAA mutual funds. The Fund may rely on certain Securities and Exchange Commission (SEC) exemptive orders or rules that permit funds meeting various conditions to invest in an exchange-traded fund (ETF) in amounts exceeding limits set forth in the Investment Company Act of 1940, as amended, that would otherwise be applicable. SPECIFIC NOTES (a) Rate represents the money market fund annualized seven-day yield at November 30, 2017. * Non-income-producing security. See accompanying notes to financial statements. 4 USAA Cornerstone Equity Fund

STATEMENT OF ASSETS AND LIABILITIES (IN THOUSANDS) November 30, 2017 (unaudited) ASSETS Investments in affiliated underlying funds, at value (cost of $145,246) $175,860 Investments in other securities, at value (cost of $546) 546 Cash 2,519 Receivables: Capital shares sold 370 Interest 2 Total assets 179,297 LIABILITIES Payables: Securities purchased 2,519 Capital shares redeemed 107 Other accrued expenses and payables 68 Total liabilities 2,694 Net assets applicable to capital shares outstanding $176,603 NET ASSETS CONSIST OF: Paid-in capital $142,970 Accumulated undistributed net investment income 407 Accumulated net realized gain on investments 2,612 Net unrealized appreciation of investments 30,614 Net assets applicable to capital shares outstanding $176,603 Capital shares outstanding, no par value 11,268 Net asset value, redemption price, and offering price per share $ 15.67 See accompanying notes to financial statements. Financial Statements 5

STATEMENT OF OPERATIONS (IN THOUSANDS) Six-month period ended November 30, 2017 (unaudited) INVESTMENT INCOME Income distributions from affiliated underlying funds $ 361 Interest 13 Total income 374 EXPENSES Custody and accounting fees 19 Postage 10 Shareholder reporting fees 8 Trustees fees 18 Registration fees 22 Professional fees 41 Other 8 Total expenses 126 Expenses reimbursed (46) Net expenses 80 NET INVESTMENT INCOME 294 NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain on sales of affiliated underlying funds 2,218 Change in net unrealized appreciation/(depreciation) of affiliated underlying funds 12,099 Net realized and unrealized gain 14,317 Increase in net assets resulting from operations $14,611 See accompanying notes to financial statements. 6 USAA Cornerstone Equity Fund

STATEMENTS OF CHANGES IN NET ASSETS (IN THOUSANDS) Six-month period ended November 30, 2017 (unaudited), and year ended May 31, 2017 11/30/2017 5/31/2017 FROM OPERATIONS Net investment income $ 294 $ 1,585 Net realized gain (loss) on sales of affiliated underlying funds 2,218 (130) Net realized gain on capital gain distributions from affiliated underlying funds 1,033 Change in net unrealized appreciation/(depreciation) of affiliated underlying funds 12,099 17,011 Increase in net assets resulting from operations 14,611 19,499 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (1,627) Net realized gains (1,772) Distributions to shareholders (3,399) FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 33,208 56,058 Reinvested dividends 3,389 Cost of shares redeemed (14,873) (31,864) Increase in net assets from capital share transactions 18,335 27,583 Net increase in net assets 32,946 43,683 NET ASSETS Beginning of period 143,657 99,974 End of period $176,603 $143,657 Accumulated undistributed net investment income: End of period $ 407 $ 113 CHANGE IN SHARES OUTSTANDING Shares sold 2,226 4,188 Shares issued for dividends reinvested 258 Shares redeemed (997) (2,401) Increase in shares outstanding 1,229 2,045 See accompanying notes to financial statements. Financial Statements 7

NOTES TO FINANCIAL STATEMENTS November 30, 2017 (unaudited) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES USAA MUTUAL FUNDS TRUST (the Trust), registered under the Investment Company Act of 1940, as amended (the 1940 Act), is an openend management investment company organized as a Delaware statutory trust consisting of 51 separate funds. Additionally, USAA Cornerstone Equity Fund (the Fund) qualifies as a registered investment company under Accounting Standards Codification Topic 946. The information presented in this semiannual report pertains only to the Fund, which is classified as diversified under the 1940 Act and is authorized to issue an unlimited number of shares. The Fund s investment objective is to seek capital appreciation over the long term. The Fund is a fund of funds in that it invests in a portfolio of underlying USAA equity and alternative funds (underlying USAA Funds) managed by USAA Asset Management Company (the Manager), an affiliate of the Fund. A. Security valuation The Trust s Board of Trustees (the Board) has established the Valuation Committee (the Committee), and subject to Board oversight, the Committee administers and oversees the Fund s valuation policies and procedures, which are approved by the Board. Among other things, these policies and procedures allow the Fund to utilize independent pricing services, quotations from securities dealers, and a wide variety of sources and information to establish and adjust the fair value of securities as events occur and circumstances warrant. The Committee reports to the Board on a quarterly basis and makes recommendations to the Board as to pricing methodologies and services used by the Fund and presents additional information to the Board regarding application of the pricing and fair valuation policies and procedures during the preceding quarter. 8 USAA Cornerstone Equity Fund

The Committee meets as often as necessary to make pricing and fair value determinations. In addition, the Committee holds regular monthly meetings to review prior actions taken by the Committee and the Manager, an affiliate of the Fund. Among other things, these monthly meetings include a review and analysis of backtesting reports, pricing service quotation comparisons, illiquid securities and fair value determinations, pricing movements, and daily stale price monitoring. The value of each security is determined (as of the close of trading on the New York Stock Exchange (NYSE) on each business day the NYSE is open) as set forth below: 1. Investments in the underlying USAA Funds and other open-end investment companies, other than exchange-traded funds (ETFs) are valued at their net asset value (NAV) at the end of each business day and are categorized in Level 1 of the fair value hierarchy. 2. Equity securities, including ETFs, except as otherwise noted, traded primarily on a domestic securities exchange or the over-the-counter markets, are valued at the last sales price or official closing price on the exchange or primary market on which they trade. Securities traded primarily on foreign securities exchanges or markets are valued at the last quoted sale price, or the most recently determined official closing price calculated according to local market convention, available at the time a fund is valued. If no last sale or official closing price is reported or available, the average of the bid and ask prices generally is used. 3. The underlying USAA Funds have specific valuation procedures. In the event that price quotations or valuations are not readily available, are not reflective of market value, or a significant event has been recognized in relation to a security or class of securities, the securities are valued in good faith by the Committee in accordance with valuation procedures approved by the Board. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded and the actual price realized from the sale of a security may differ materially from the fair value price. Valuing these securities at fair value is intended to cause a fund s NAV to be more reliable than it otherwise would be. Notes to Financial Statements 9

Fair value methods used by the Manager include, but are not limited to, obtaining market quotations from secondary pricing services, broker-dealers, other pricing services, or widely used quotation systems. General factors considered in determining the fair value of securities include fundamental analytical data, the nature and duration of any restrictions on disposition of the securities, evaluation of credit quality, and an evaluation of the forces that influenced the market in which the securities are purchased and sold. B. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-level valuation hierarchy disclosed in the Portfolio of Investments is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) in active markets for identical securities. Level 2 inputs to the valuation methodology are other significant observable inputs, including quoted prices for similar securities, inputs that are observable for the securities, either directly or indirectly, and market-corroborated inputs such as market indexes. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement, including the Manager s own assumptions in determining the fair value. The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. C. Federal taxes The Fund s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income and net capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. For the six-month period ended November 30, 2017, the Fund did not incur any income tax, interest, or penalties, and has recorded no liability for 10 USAA Cornerstone Equity Fund

net unrecognized tax benefits relating to uncertain income tax positions. On an ongoing basis, the Manager will monitor the Fund s tax positions to determine if adjustments to this conclusion are necessary. The statute of limitations on the Fund s tax return filings generally remain open for the three preceding fiscal reporting year ends and remain subject to examination by the Internal Revenue Service and state taxing authorities. D. Investments in securities Securities transactions are accounted for on the date the securities are purchased or sold (trade date). Gains or losses from sales of investment securities are computed on the identified cost basis. Dividend income and capital gain distributions from the underlying USAA Funds are recorded on the ex-dividend date. Interest income is recorded daily on the accrual basis. Premiums and discounts on short-term securities are amortized on a straight-line basis over the life of the respective securities. E. Expenses paid indirectly Through arrangements with the Fund s custodian and other banks utilized by the Fund for cash management purposes, realized credits, if any, generated from cash balances in the Fund s bank accounts may be used to directly reduce the Fund s expenses. For the six-month period ended November 30, 2017, there were no custodian and other bank credits. F. Indemnifications Under the Trust s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that contain a variety of representations and warranties that provide general indemnifications. The Trust s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust expects the risk of loss to be remote. G. Use of estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that may affect the reported amounts in the financial statements. Notes to Financial Statements 11

(2) LINE OF CREDIT The Fund participates, along with other funds of the Trust and USAA ETF Trust (together, the Trusts), in a joint, short-term, revolving, committed loan agreement of $500 million with USAA Capital Corporation (CAPCO), an affiliate of the Manager. The purpose of the agreement is to provide temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Subject to availability (including usage of the facility by other funds of the Trusts), the Fund may borrow from CAPCO an amount up to 5% of the Fund s total assets at an interest rate based on the London Interbank Offered Rate (LIBOR), plus 100.0 basis points. The Trusts are also assessed facility fees by CAPCO in the amount of 13.0 basis points of the amount of the committed loan agreement. Prior to September 30, 2017, the maximum annual facility fee was 12.0 basis points of the amount of the committed loan agreement. The facility fees are allocated among the funds of the Trusts based on their respective average net assets for the period. The Trusts may request an optional increase of the committed loan agreement from $500 million up to $750 million. If the Trusts increase the committed loan agreement, the assessed facility fee on the amount of the additional commitment will be 14.0 basis points. For the six-month period ended November 30, 2017, the Fund paid CAPCO facility fees of $1,000, which represents 0.2% of the total fees paid to CAPCO by the funds of the Trusts. The Fund had no borrowings under this agreement during the six-month period ended November 30, 2017. (3) DISTRIBUTIONS The tax basis of distributions and any accumulated undistributed net investment income will be determined as of the Fund s tax year-end of May 31, 2018, in accordance with applicable federal tax law. Distributions of net investment income and realized gains from security transactions not offset by capital losses are made annually in the succeeding fiscal year or as otherwise required to avoid the payment of federal income tax. At May 31, 2017, the Fund had no capital loss carryforwards, for federal income tax purposes. 12 USAA Cornerstone Equity Fund

(4) INVESTMENT TRANSACTIONS Cost of purchases and proceeds from sales/maturities of securities, excluding short-term securities, for the six-month period ended November 30, 2017, were $48,090,000 and $28,450,000, respectively. As of November 30, 2017, the cost of securities, including short-term securities, for federal income tax purposes, was approximately the same as the cost reported in the financial statements. Gross unrealized appreciation and depreciation of investments as of November 30, 2017, were $30,646,000 and $32,000, respectively, resulting in net unrealized appreciation of $30,614,000. (5) SECURITIES LENDING The Fund, through its securities lending agreement with Citibank, N.A. (Citibank), may lend its securities to qualified financial institutions, such as certain broker-dealers, to earn additional income. The borrowers are required to secure their loans continuously with collateral in an amount at least equal to 102% of the fair value of domestic securities and foreign government securities loaned and 105% of the fair value of foreign securities and all other securities loaned. Collateral may be cash, U.S. government securities, or other securities as permitted by SEC guidelines. Cash collateral may be invested in high-quality short-term investments. Collateral requirements are determined daily based on the value of the Fund s securities on loan as of the end of the prior business day. Risks relating to securities-lending transactions include that the borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral required to be returned to the borrower. The Fund s agreement with Citibank does not include master netting provisions. Non-cash collateral received by the Fund may not be sold or re-pledged except to satisfy borrower default. Cash collateral is listed in the Fund s Portfolio of Investments and Financial Statements while non-cash collateral is not included. At November 30, 2017, the Fund had no securities on loan. Notes to Financial Statements 13

(6) AGREEMENTS WITH MANAGER A. Advisory agreement The Manager carries out the Fund s investment policies and manages the Fund s portfolio pursuant to an Advisory Agreement. The Manager does not receive any management fees from the Fund for these services. B. Administration and servicing fees The Manager provides certain administration and servicing functions for the Fund. The Manager does not receive any fees from the Fund for these services. In addition to the services provided under its Administration and Servicing Agreement with the Fund, the Manager also provides certain compliance and legal services for the benefit of the Fund. The Board has approved the billing of these expenses to the Fund. These expenses are included in the professional fees on the Fund s Statement of Operations and, for the six-month period ended November 30, 2017, were $2,000 for the Fund. C. Expense limitation The Manager agreed, through September 30, 2018, to limit the total annual operating expenses of the Fund to 0.10% of its average net assets, excluding extraordinary expenses and before reductions of any expenses paid indirectly, and to reimburse the Fund for all expenses in excess of that amount. This expense limitation arrangement may not be changed or terminated through September 30, 2018, without approval of the Board, and may be changed or terminated by the Manager at any time after that date. For the six-month period ended November 30, 2017, the Fund incurred reimbursable expenses of $46,000. D. Transfer agency agreement USAA Transfer Agency Company, d/b/a USAA Shareholder Account Services (SAS), an affiliate of the Manager, provides transfer agent services to the Fund. SAS does not receive any fees from the Fund for these services. E. Underwriting services USAA Investment Management Company provides exclusive underwriting and distribution of the Fund s shares on a continuing best-efforts basis and receives no fee or other compensation for these services. 14 USAA Cornerstone Equity Fund

(7) TRANSACTIONS WITH AFFILIATES The Manager is indirectly wholly owned by United Services Automobile Association (USAA), a large, diversified financial services institution. Certain trustees and officers of the Fund are also directors, officers, and/or employees of the Manager. None of the affiliated trustees or Fund officers received any compensation from the Fund. (8) TRANSACTIONS WITH AFFILIATED FUNDS A. Share ownership The Fund does not invest in the underlying USAA Funds for the purpose of exercising management or control; however, investments by the Fund may represent a significant portion of the underlying USAA Funds net assets. At November 30, 2017, the Fund owned the following percentages of the total outstanding shares of each of the underlying USAA Funds: Affiliated USAA Fund Ownership % Aggressive Growth 0.1 Emerging Markets 1.5 Growth 0.4 Income Stock 0.4 International 1.2 MSCI Emerging Markets Value Momentum Blend Index ETF 14.4 MSCI International Value Momentum Blend Index ETF 21.4 MSCI USA Small Cap Value Momentum Blend Index ETF 18.9 MSCI USA Value Momentum Blend Index ETF 18.7 Precious Metals and Minerals 0.3 S&P 500 Index 0.3 Small Cap Stock 0.4 Value 1.3 Notes to Financial Statements 15

B. Transactions with affiliated funds The following table provides details related to the Fund s investment in the underlying USAA Funds for the six-month period ended November 30, 2017: Change in net ($ in 000s) Realized unrealized Affiliated Purchase Sales Dividend Gain appreciation/ Market Value USAA Fund Cost (a) Proceeds Income (Loss) (b) depreciation 05/31/2017 11/30/2017 Aggressive Growth $ 250 $3,000 $ $598 $ (139) $ 4,279 $ 1,987 Emerging Markets 950 1,515 13,150 15,615 Growth 400 1,369 10,813 12,581 Income Stock 1,356 5,000 156 350 824 14,584 12,114 International 6,550 5,500 152 3,980 46,740 51,922 MSCI Emerging Markets Value Momentum Blend Index ETF 3,631 (32) 3,599 MSCI International Value Momentum Blend Index ETF 11,319 37 11,356 MSCI USA Small Cap Value Momentum Blend Index ETF 3,331 63 3,395 MSCI USA Value Momentum Blend Index ETF 14,148 386 14,534 Precious Metals and Minerals 100 (38) 1,480 1,542 S&P 500 Index 3,705 8,500 205 639 1,518 21,531 18,892 Small Cap Stock 450 6,450 479 721 11,870 7,071 Value 1,900 1,895 17,456 21,252 (a) Includes reinvestment of distributions from dividend income and realized gains. (b) Includes capital gain distributions received in cash, if any. 16 USAA Cornerstone Equity Fund

(9) UPCOMING REGULATORY MATTERS In October 2016, the U.S. Securities and Exchange Commission (SEC) issued Final Rule Release No. 33-10231, Investment Company Reporting Modernization. In part, the rules require the filing of new forms N-PORT and N-CEN, and amend Regulation S-X to require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. In October 2016, the SEC issued Final Rule Release No. 33-10233, Investment Company Liquidity Risk Management Programs. This rule requires funds to establish a liquidity risk management program and enhances disclosures regarding funds liquidity. In October 2016, the SEC issued Final Rule Release No. 33-10234, Investment Company Swing Pricing. This rule permits certain funds to use swing pricing during periods of heavy redemptions and requires certain disclosures regarding the use of swing pricing in forms filed with the SEC. The Manager continues to evaluate the impact these rules and amendments will have on the financial statements and other disclosures. The compliance date for new forms N-PORT and N-CEN is June 1, 2018 (with filing of Form N-PORT beginning April 30, 2019), with other staggered compliance dates extending through April 30, 2019. The Fund is expected to comply with the June 1, 2018 compliance date for new forms N-PORT and N-CEN. Notes to Financial Statements 17

(10) FINANCIAL HIGHLIGHTS Per share operating performance for a share outstanding throughout each period is as follows: Six-Month Period Ended Period Ended November 30, Year Ended May 31, May 31, 2017 2017 2016 2015 2014 2013*** Net asset value at beginning of period $ 14.31 $ 12.51 $ 13.61 $ 13.22 $ 11.71 $ 10.00 Income (loss) from investment operations: Net investment income.02.19.16.24.17.12 (a) Net realized and unrealized gain (loss) 1.34 2.02 (.82).42 1.55 1.71 (a) Total from investment operations 1.36 2.21 (.66).66 1.72 1.83 (a) Less distributions from: Net investment income (.19) (.15) (.24) (.16) (.12) Realized capital gains (.22) (.29) (.03) (.05) (.00) (b) Total distributions (.41) (.44) (.27) (.21) (.12) Net asset value at end of period $ 15.67 $ 14.31 $ 12.51 $ 13.61 $ 13.22 $ 11.71 Total return (%)* 9.50 17.99 (4.77) 5.08 14.84 18.39 Net assets at end of period (000) $176,603 $143,657 $99,974 $91,726 $66,040 $31,555 Ratios to average net assets:**,(c) Expenses (%) (d).10 (e).10.10.10.10.10 (e) Expenses, excluding reimbursements (%) (d).16 (e).20.22.24.33 1.13 (e) Net investment income (%).37 (e) 1.39 1.36 1.77 1.45 1.09 (e) Portfolio turnover (%) 18 7 15 8 2 5 * Assumes reinvestment of all net investment income and realized capital gain distributions, if any, during the period. Includes adjustments in accordance with U.S. generally accepted accounting principles and could differ from the Lipper reported return. Total returns for periods of less than one year are not annualized. ** For the six-month period ended November 30, 2017, average net assets were $159,252,000. *** Fund commenced operations on June 8, 2012. (a) Calculated using average shares. (b) Represents less than $0.01 per share. (c) Calculated excluding the Fund s pro-rata share of expenses of the underlying USAA Funds. (d) Reflects total annual operating expenses of the Fund before reductions of any expenses paid indirectly. The Fund s expenses paid indirectly decreased the expense ratios as follows: (.00%) (.00%) Represents less than 0.01% of average net assets. (e) Annualized. The ratio is not necessarily indicative of 12 months of operations. 18 USAA Cornerstone Equity Fund

EXPENSE EXAMPLE November 30, 2017 (unaudited) EXAMPLE As a shareholder of the Fund, you incur two types of costs: direct costs, such as wire fees, redemption fees, and low balance fees; and indirect costs, including Fund operating expenses. This example is intended to help you understand your indirect costs, also referred to as ongoing costs (in dollars), of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Fund also indirectly bears its pro-rata share of the expenses of the underlying USAA Funds in which it invests (acquired funds). These acquired fund fees and expenses are not included in the Fund s annualized expense ratios used to calculate the expense estimates in the table on the next page. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period of June 1, 2017, through November 30, 2017. ACTUAL EXPENSES The line labeled actual in the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested at the beginning of the period, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the actual line under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The line labeled hypothetical in the table provides information about hypothetical account values and hypothetical expenses based on the Fund s actual expense ratio and an assumed rate of return of 5% per year before Expense Example 19

expenses, which is not the Fund s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any direct costs, such as wire fees, redemption fees, or low balance fees. Therefore, the line labeled hypothetical is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these direct costs were included, your costs would have been higher. Acquired fund fees and expenses are not included in the Fund s annualized expense ratio used to calculate the expenses paid in the table below. Expenses Paid Beginning Ending During Period* Account Value Account Value June 1, 2017 June 1, 2017 November 30, 2017 November 30, 2017 Actual $1,000.00 $1,095.00 $0.53 Hypothetical (5% return before expenses) 1,000.00 1,024.57 0.51 *Expenses are equal to the Fund s annualized expense ratio of 0.10%, which is net of any reimbursements and expenses paid indirectly and excludes expenses of the acquired funds, multiplied by the average account value over the period, multiplied by 183 days/365 days (to reflect the one-half-year period). The Fund s actual ending account value is based on its actual total return of 9.50% for the six-month period of June 1, 2017, through November 30, 2017. 20 USAA Cornerstone Equity Fund

Trustees Daniel S. McNamara Robert L. Mason, Ph.D. Jefferson C. Boyce Dawn M. Hawley Paul L. McNamara Richard Y. Newton III Barbara B. Ostdiek, Ph.D. Michael F. Reimherr Administrator and USAA Asset Management Company Investment Adviser P.O. Box 659453 San Antonio, Texas 78265-9825 Underwriter and USAA Investment Management Company Distributor P.O. Box 659453 San Antonio, Texas 78265-9825 Transfer Agent USAA Shareholder Account Services 9800 Fredericksburg Road San Antonio, Texas 78288 Custodian and State Street Bank and Trust Company Accounting Agent P.O. Box 1713 Boston, Massachusetts 02105 Independent Ernst & Young LLP Registered Public 100 West Houston St., Suite 1700 Accounting Firm San Antonio, Texas 78205 Mutual Fund Self-Service 24/7 at usaa.com Or call (800) 531-USAA (8722) (210) 531-8722 Under My Accounts on usaa.com select your mutual fund account and either click the link or select I want to... and select the desired action. Copies of the Manager s proxy voting policies and procedures, approved by the Trust s Board of Trustees for use in voting proxies on behalf of the Fund, are available without charge (i) by calling (800) 531-USAA (8722) or (210) 531-8722; (ii) at usaa.com; and (iii) in summary within the Statement of Additional Information on the SEC s website at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge (i) at usaa.com; and (ii) on the SEC s website at http://www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. These Forms N-Q are available at no charge (i) by calling (800) 531-USAA (8722) or (210) 531-8722; (ii) at usaa.com; and (iii) on the SEC s website at http://www.sec.gov. These Forms N-Q also may be reviewed and copied at the SEC s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) 732-0330. 97453-0118 2018, USAA. All rights reserved.