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USAA Farms Out Fund Management

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June 27, 2002 — USAA Investment Management Co. said it hired outside managers to run 15 mutual funds with about $7 billion in assets in an effort to improve their performance.

Eight investment management firms, including Wellington Management Co. and Marsico Capital Management, will begin overseeing the funds tomorrow.

“This decision was necessary to enhance our ability to deliver consistent, above-average fund performance,” Christopher Claus, president and chief executive officer of USAA Investments, said in a statement.

The company will eliminate “less than 40″ positions, including fund managers and analysts, in connection with the hiring of the outside managers, USAA spokesman Tom Honeycutt said. He declined to identify the portfolio managers whose jobs were cut.

The outside managers will oversee 12 stock funds and the stock portions of three balanced funds that invest in stocks and bonds. The move does not affect USAA’s four index funds and 12 fixed-income funds, and its money market funds.

The company also will continue to run the USAA Precious Metals and Minerals fund (formerly called the USAA Invest Tr:Precious Metals & Minerals Fd (USAGX) ) and part of the USAA Science & Technology Fund (USSCX) in-house, the company said.

The outside investment managers are: Batterymarch Financial Management Inc., The Boston Co. Asset Management LLC, Dresdner RCM Global Investors LLC, Eagle Asset Management Inc., Marsico Capital Management LLC, MFS Investment Management, Wellington Management Co. and Westwood Management Corp.