As filed with the SEC on January 6, 2012.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04556
TRANSAMERICA FUNDS
(Exact Name of Registrant as Specified in Charter)
570 Carillon Parkway, St. Petersburg, Florida 33716
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (727) 299-1800
Dennis P. Gallagher, Esq. P.O. Box 9012, Clearwater, Florida 33758-9771
(Name and Address of Agent for Service)
Date of fiscal year end: October 31
Date of reporting period: November 1, 2010 — October 31, 2011
Item 1: Report(s) to Shareholders. The Annual Report is attached.
2
Fund of Funds
Annual Report
October 31, 2011
www.transamericainvestments.com
Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.
Dear Fellow Shareholder,
On behalf of Transamerica Funds, we would like to thank you for your continued support and confidence in our products as we look forward to continuing to serve you and your financial adviser in the future. We value the trust you have placed in us.
This annual report is provided to you with the intent of presenting a comprehensive review of the investments of each of your funds. The Securities and Exchange Commission requires that annual and semi-annual reports be sent to all shareholders, and we believe this report to be an important part of the investment process. In addition to providing a comprehensive review, this report also provides a discussion of accounting policies as well as matters presented to shareholders that may have required their vote.
We believe it is important to understand market developments that took place over the last year in order to provide a context when reading this report. Last fall, U.S. economic growth was being restrained by persistent high unemployment and high government debt levels. In response, the Federal Reserve began implementing a second round of monetary stimulus known as quantitative easing (“QE2”). This effort began pumping what would eventually total $600 billion into the U.S. economy. As a result, the U.S. economy and corporate earnings began picking up steam throughout the winter. Corporate equity and bond markets followed suit. At the same time, commodities prices and inflation began surging. In order to fight the inflation the Federal Reserve stimulus was creating, most central banks across the globe tightened monetary policy. In spring, this global tightening collided with a global supply chain disruption caused by the Japanese tsunami. As a result, the global economy began slowing in late spring. As summer arrived, concerns about U.S. and European debt levels began resurfacing. Developments came to a head in late summer as the credit rating of the U.S. was lowered and Europe faced the possibility of a sovereign debt default. As a result, the global equity and corporate bond markets fell sharply while U.S. Treasuries rallied as investors sought safety. Fortunately, commodity prices also fell, putting more disposable income in consumer pockets. As summer transitioned to fall, the U.S. economy re-strengthened. As a result, the U.S. corporate equity and bond markets responded by recovering much of the summer’s losses. For the twelve months ending October 31, 2011, the Dow Jones Industrial Average returned 10.39%, the Standard & Poor’s 500® Index returned 8.09%, and the Barclays Capital U.S. Aggregate Bond Index returned 5.00%. However, the rest of the global economy continued to experience slowing growth as previous tightening remained mostly in place and government austerity programs continued to be implemented. So, despite European politicians’ efforts to address default fears, European and Asian markets failed to recover the summer’s losses and as a result the MSCI World ex-US returned (3.25)% for the year ending October 31, 2011. Please keep in mind it is important to maintain a diversified portfolio as investment returns have historically been difficult to predict.
In addition to your active involvement in the investment process, we firmly believe that a financial adviser is a key resource to help you build a complete picture of your current and future financial needs. Financial advisers are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial adviser, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.
Please contact your financial adviser if you have any questions about the contents of this report, and thanks again for the confidence you have placed in us.
Sincerely,
| | | | | |
|
| John K. Carter | | Christopher A. Staples | | |
| Chairman of the Board, | | Vice President & Chief Investment Officer | | |
| President & Chief Executive Officer | | Transamerica Funds | | |
| Transamerica Funds | | | | |
The views expressed in this report reflect those of the portfolio managers only and may not necessarily represent the views of Transamerica Funds. These views are subject to change based upon market conditions. These views should not be relied upon as investment advice and are not indicative of trading intent on behalf of Transamerica Funds.
Transamerica Asset Allocation — Conservative Portfolio
(unaudited)
MARKET ENVIRONMENT
The November 1, 2010 to October 31, 2011 reporting period encompassed very different market environments. In the first half of the period, the markets were bullish. In late 2010 and early 2011, investors were cheered by the Federal Reserve Board’s (“Fed”) second round of quantitative easing (“QE2”), encouraging US Gross Domestic Product (“GDP”) readings, holiday spending, and some good news in the job market. The US stock market jumped in December and the gains continued into 2011’s first four months—despite Japan’s tsunami and renewed concern about Europe’s debt problems. For the period November 1, 2010 to April 30, 2011 the Standard & Poor’s 500® Index (“S&P 500”) rose 16.36%, however, international stock markets lagged behind. Concerns about weak European growth and the effects of the Japanese tsunami held the Morgan Stanley Capital International-Europe, Australasia, and Far East Index’s (“MSCIEAFE”) gain to only 12.95% in US dollar terms, and about half that in local-currency terms. Emerging markets trailed by more as investors worried about inflation in developing markets and a perceived slowdown in China. The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) returned 9.84% for the same November through April period.
Beginning in May, the economic news darkened. First-quarter US GDP growth came in lower than expected, consumer spending slowed, the employment picture weakened, and housing prices softened. The markets also fretted over the June 30th end to the Fed’s QE2. As summer drew on, matters only got worse. In July, first-quarter real US GDP growth was revised downward to 0.4%, and second-quarter growth was reported at just 1.3%. August brought the Congressional showdown over raising the US debt ceiling—and the resulting deal did not impress Standard & Poor’s, which took the historic step of lowering the US government’s credit rating. Meanwhile, the debt crisis in Europe raged on. By late August, Europe had taken center stage as politicians struggled to find a solution to Greece’s severe debt problems even as new concerns arose about the indebtedness of Spain and Italy. European banks’ exposure to the bonds of these countries raised a banking crisis akin to the 2008 financial crisis. This was on top of general concern about the impact on the global economy of Europe’s debt load and related government austerity programs.
Major equity markets around the world began a string of consecutive monthly declines in May, falling precipitously in August and September. Although US stocks plunged from May through September, foreign stocks fell even harder. After having lagged the S&P 500 on the upside, the MSCI-EAFE fell 23.90% from May 1, 2011 to the market’s bottom on October 3, 2011, compared with the S&P 500’s 18.64% decline. The MSCI-EMI plummeted 27.96% over that stretch. Equities rebounded for a few weeks in October, but once again, international stocks lagged.
For the one-year period as a whole, the S&P 500 managed a gain of 8.09%, but the MSCI-EAFE lost 3.64%. The MSCI-EMI fell 7.44%.
Bond returns were similarly differentiated over the period. While stocks rose from November through April, high-quality bonds were generally flat but credit-sensitive bonds performed strongly. Then as stocks fell from May through September, the highest-quality bonds—namely government issues—appreciated dramatically as investors flocked to them for safety. That helped lift the Barclays Capital U.S. Aggregate Bond Index (“BCAB”) (which tilts toward government bonds), while high-yield bonds lost ground in sympathy with stocks.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Asset Allocation-Conservative Portfolio, Class A returned 2.20%. By comparison, its primary and secondary benchmarks, the BCAB and the Wilshire 5000 Total Market Index, returned 5.00% and 7.57%, respectively.
STRATEGY REVIEW
The portfolio is designed to provide a mix of approximately 35% equity and 65% fixed-income securities under normal conditions. The equity side is meant to cover both domestic and international markets, across the entire range of investment styles. The fixed-income portion covers investment-grade and credit-sensitive holdings, as well as international bonds. The portfolio also includes small amounts of emerging markets, global real estate, commodities, and alternative strategies. The goal is to provide investors one-stop participation in the broad financial markets at a tempered risk level. Our specific portfolio mix is based on years of asset-allocation modeling—research that consistently indicates that the mix we target is close to optimal in terms of expected long-term returns per unit of risk taken. While this strategic blueprint forms the backbone of our asset allocation, we will actively over- and underweight asset classes relative to the neutral targets as necessary in response to shorter-term market conditions. We endeavor to find and use quality money managers specializing in each asset class and style. We carefully monitor these underlying managers for performance and style issues, and adjust their weightings both to manage our asset-class exposures and to reflect the managers’ relative merit.
As the stock market fell in the latter half of the period, Treasury bonds soared. The Barclays US Treasury Bellwethers 30-Year Index gained 36.78% as stocks plunged from May 1, 2011 to October 3, 2011. While the portfolio does own government bonds, it is designed to own a diversified mixture of bond types. As part of that diversification, the portfolio owns short-term bonds, bonds from developed international markets, and emerging-markets debt. These bond classes were much flatter over that period, and could not match the BCAB’s Treasury-fueled gain. High-yield bonds, which the portfolio owns in moderation, actually lost money over that period. Meanwhile, Transamerica PIMCO Total Return, one of our anchor holdings that has had an excellent long-term record, notched one of its rare lagging years. For the full 12-month period, that fund lagged largely because it bet against Treasuries as they continued to rally.
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| Transamerica Funds | | Page 1 | | Annual Report 2011 |
Transamerica Asset Allocation — Conservative Portfolio
(unaudited)
STRATEGY REVIEW (continued)
The stock portfolio was disadvantaged by its built-in international exposure. During the November 1, 2010 — October 31, 2011 period, international equities dramatically underperformed US equities as outlined above. The MSCI-EAFE of developed foreign markets lost 3.64% for the period, while the S&P 500 of US stocks gained 8.09%, representing a performance differential of around 12 percentage points. This degree of performance divergence is unusual. Because the portfolio is constructed so that about 30% of its equity is in foreign stocks, the underperformance of international equities — including emerging markets — had an impact on the portfolio’s one-year return.
The portfolio’s brighter spots included some of the domestic large-cap and mid-cap funds. A number of the international equity and bond funds also fared well relative to their investment categories. But the portfolio’s inherent exposure to non-government bonds and international stocks was a dominant factor leading to a rather tepid gain for this one-year period. We nonetheless believe our targeted asset mix is right for the long term.
During the period there were several changes among the underlying funds. The domestic large-cap part of the portfolio underwent some improvements. These included the addition of large-value fund Transamerica WMC Quality Value and the replacement of the underperforming Transamerica UBS Large Cap Value with the well-regarded Transamerica ICAP Select Equity. Some changes were also driven by the dissolution of a Transamerica money-management subsidiary called Transamerica Investment Management, LLC (“TIM”). We had in the portfolio the large-cap growth Transamerica Diversified Equity managed by that subsidiary; it in turn was re-named Transamerica WMC Diversified Equity. Transamerica Focus was re-named Transamerica Morgan Stanley Capital Growth. When TIM was dissolved we moved the money in Transamerica Diversified Equity to the large-growth teams in Transamerica WMC Diversified Equity and Transamerica Morgan Stanley Capital Growth. TIM had also managed the mid-cap Transamerica Growth Opportunities — it too was re-named Transamerica Morgan Stanley Growth Opportunities. We shifted those assets to Morgan Stanley’s excellent mid-cap growth strategy, which we had already been using in the portfolio. We also enhanced the alternative-strategies portion of the portfolio by adding a new merger-arbitrage fund and a long/short equity fund (Transamerica Water Island Arbitrage Strategy and Transamerica JPMorgan Long/Short Strategy-formerly Transamerica BNY Mellon Market Neutral Strategy). These replaced a couple of underperforming funds. Finally, we added the new Transamerica Logan Circle Emerging Markets Debt as a complement to our other emerging-markets debt fund.
Macroeconomic and geopolitical factors continue to produce abnormally large and broad market swings, making the security-selection skill of our underlying managers less relevant than we would like. In this environment we have tended to be more flexible and active in managing around our neutral portfolio targets to address market risks. We look forward to the eventual return of a more fundamentals-driven market environment, but macroeconomic drivers could remain dominant as Europe lumbers through its debt problem and the US economy struggles to recover.
Jon Hale, CFA
Michael Stout, CFA
Dan McNeela, CFA
Hal Ratner
Co-Portfolio Managers
Morningstar Associates, LLC
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| Transamerica Funds | | Page 2 | | Annual Report 2011 |
Transamerica Asset Allocation — Conservative Portfolio
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Class | | Inception Date |
| |
| Class A (NAV) | | 2.20% | | 3.45% | | 5.27% | | 03/01/2002 |
| Class A (POP) | | (3.40)% | | 2.29% | | 4.66% | | 03/01/2002 |
| Barclays Capital U.S. Aggregate Bond* | | 5.00% | | 6.41% | | 5.72% | | 03/01/2002 |
| Wilshire 5000* | | 7.57% | | 0.94% | | 4.15% | | 03/01/2002 |
| |
| Class B (NAV) | | 1.50% | | 2.77% | | 4.70% | | 03/01/2002 |
| Class B (POP) | | (3.47)% | | 2.60% | | 4.70% | | 03/01/2002 |
| |
| Class C (NAV) | | 1.50% | | 2.81% | | 5.97% | | 11/11/2002 |
| Class C (POP) | | 0.50% | | 2.81% | | 5.97% | | 11/11/2002 |
| |
| Class I (NAV) | | 2.52% | | N/A | | 6.06% | | 11/30/2009 |
| |
| Class R (NAV) | | 1.90% | | 3.23% | | 4.00% | | 06/15/2006 |
| |
NOTES
| | |
| * | | The Barclays Capital Aggregate U.S. Bond Index (“Barclays Capital U.S. Aggregate Bond”) and the Wilshire 5000 Total Market Index (“Wilshire 5000”) are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and R shares
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Asset allocation does not ensure a profit or protect against a loss. An investment in the fund is subject to all of the risks associated with the underlying funds. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this portfolio.
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| Transamerica Funds | | Page 3 | | Annual Report 2011 |
Transamerica Asset Allocation — Growth Portfolio
(unaudited)
MARKET ENVIRONMENT
The November 1, 2010 to October 31, 2011 reporting period encompassed very different market environments. In the first half of the period, the markets were bullish. In late 2010 and early 2011, investors were cheered by the Federal Reserve Board‘s (“Fed”) second round of quantitative easing (“QE2”), encouraging US Gross Domestic Product (“GDP”) readings, holiday spending, and some good news in the job market. The US stock market jumped in December and the gains continued into 2011’s first four months — despite Japan’s tsunami and renewed concern about Europe’s debt problems. For the period November 1, 2010 to April 30, 2011 the Standard & Poor‘s 500® Index (“S&P 500”) rose 16.36%, however, international stock markets lagged behind. Concerns about weak European growth and the effects of the Japanese tsunami held the Morgan Stanley Capital International-Europe, Australasia, and Far East Index‘s (“MSCI-EAFE”) gain to only 12.95% in US dollar terms, and about half that in local-currency terms. Emerging markets trailed by more as investors worried about inflation in developing markets and a perceived slowdown in China. The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) returned 9.84% for the same November through April period.
Beginning in May, the economic news darkened. First-quarter US GDP growth came in lower than expected, consumer spending slowed, the employment picture weakened, and housing prices softened. The markets also fretted over the June 30th end to the Fed’s QE2. As summer drew on, matters only got worse. In July, first-quarter real US GDP growth was revised downward to 0.4%, and second-quarter growth was reported at just 1.3%. August brought the Congressional showdown over raising the US debt ceiling — and the resulting deal did not impress Standard & Poor’s, which took the historic step of lowering the US government’s credit rating. Meanwhile, the debt crisis in Europe raged on. By late August, Europe had taken center stage as politicians struggled to find a solution to Greece’s severe debt problems even as new concerns arose about the indebtedness of Spain and Italy. European banks’ exposure to the bonds of these countries raised a banking crisis akin to the 2008 financial crisis. This was on top of general concern about the impact on the global economy of Europe’s debt load and related government austerity programs.
Major equity markets around the world began a string of consecutive monthly declines in May, falling precipitously in August and September. Although US stocks plunged from May through September, foreign stocks fell even harder. After having lagged the S&P 500 on the upside, the MSCI-EAFE Index fell 23.90% from May 1, 2011 to the market’s bottom on October 3, 2011, compared with the S&P 500’s 18.64% decline. The MSCI-EMI plummeted 27.96% over that stretch. Equities rebounded for a few weeks in October, but once again, international stocks lagged.
For the one-year period as a whole, the S&P 500 managed a gain of 8.09%, but the MSCI-EAFE lost 3.64%. The MSCI-EMI fell 7.44%.
Bond returns were similarly differentiated over the period. While stocks rose from November through April, high-quality bonds were generally flat but credit-sensitive bonds performed strongly. Then as stocks fell from May through September, the highest-quality bonds — namely government issues — appreciated dramatically as investors flocked to them for safety. That helped lift the Barclays Capital U.S. Aggregate Bond Index (“BCAB”) (which tilts toward government bonds), while high-yield bonds lost ground in sympathy with stocks. Over the entire one-year period, the BCAB delivered a 5.00% return.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Asset Allocation-Growth Portfolio, Class A returned 1.59%. By comparison, its benchmark, the Wilshire 5000 Total Market Index (“Wilshire 5000”), returned 7.57%.
STRATEGY REVIEW
The portfolio is designed to provide diversified, global coverage of equities. It includes domestic and international markets, and spans the entire range of investment styles. The portfolio incorporates emerging markets, global real estate, commodities, and also alternative strategies. The goal is to provide investors one-stop participation in the broad equity and alternatives markets. Our specific portfolio mix is based on years of asset-allocation modeling — research that consistently indicates that the mix we target is close to optimal in terms of expected long-term returns per unit of risk taken. While this strategic blueprint forms the backbone of our asset allocation, we will actively over- and underweight asset classes relative to the neutral targets as necessary in response to shorter-term market conditions. We endeavor to find and use quality money managers specializing in each asset class and style. We carefully monitor these underlying managers for performance and style issues, and adjust their weightings both to manage our asset-class exposures and to reflect the managers’ relative merit.
During the November 1, 2010 — October 31, 2011 period, international equities dramatically underperformed US equities as outlined above. The MSCI-EAFE Index of developed foreign markets lost 3.64% for the period, while the S&P 500 of US stocks gained 8.09%, representing a performance differential of around 12 percentage points. This degree of performance divergence is unusual. Because the portfolio is constructed so that more than 30% of its equity is in foreign stocks, the underperformance of international equities had a large impact on the portfolio’s one-year return. In addition, the portfolio holds a meaningful weighting in emerging markets. Although emerging markets have enjoyed strong returns over the past three years — the MSCI-EMI boasts a 23.59% annualized three-year return through October 31, 2011 — they were more sluggish than developed foreign markets during the 12-month period covered by this report. The portfolio also provides significant coverage of smaller-cap stocks, which moderately lagged the broader Wilshire 5000.
The portfolio’s brighter spots included some of the domestic large-cap and mid-cap funds. A number of the international equity funds also fared well relative to their investment categories. But the portfolio’s inherent exposure to international markets and smaller-cap stocks was a dominant factor leading to a rather tepid gain for this one-year period. We nonetheless believe our targeted asset mix is right for the long term.
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| Transamerica Funds | | Page 4 | | Annual Report 2011 |
Transamerica Asset Allocation — Growth Portfolio
(unaudited)
STRATEGY REVIEW (continued)
During the period there were several changes among the underlying funds. The domestic large-cap part of the portfolio underwent some improvements. These included the addition of large-value fund Transamerica WMC Quality Value and the replacement of the underperforming Transamerica UBS Large Cap Value with the well-regarded Transamerica ICAP Select Equity. Some changes were also driven by the dissolution of a Transamerica money-management subsidiary called Transamerica Investment Management, LLC (“TIM”). We had in the portfolio the large-cap growth Transamerica Diversified Equity fund managed by that subsidiary; it in turn was re-named Transamerica WMC Diversified Equity. Transamerica Focus was re-named Transamerica Morgan Stanley Capital Growth. When TIM was dissolved we moved the money in Transamerica Diversified Equity to the large-growth teams in Transamerica WMC Diversified Equity and Transamerica Morgan Stanley Capital Growth. TIM had also managed the mid-cap Transamerica Growth Opportunities — it too was re-named Transamerica Morgan Stanley Growth Opportunities. We shifted those assets to Morgan Stanley’s excellent mid-cap growth strategy, which we had already been using in the portfolio. We also enhanced the alternative-strategies portion of the portfolio by adding a new merger-arbitrage fund and a long/short equity fund (Transamerica Water Island Arbitrage Strategy and Transamerica JPMorgan Long/Short Strategy-formerly Transamerica BNY Mellon Market Neutral Strategy). These replaced the underperforming Transamerica BNY Mellon Market Neutral Strategy and Transamerica Federated Market Opportunity funds.
Macroeconomic and geopolitical factors continue to produce abnormally large and broad market swings, making the security-selection skill of our underlying managers less relevant than we would like. In this environment we have tended to be more flexible and active in managing around our neutral portfolio targets to address market risks. We look forward to the eventual return of a more fundamentals-driven market environment, but macroeconomic drivers could remain dominant as Europe lumbers through its debt problem and the US economy struggles to recover.
Jon Hale, CFA
Michael Stout, CFA
Dan McNeela, CFA
Hal Ratner
Co-Portfolio Managers
Morningstar Associates, LLC
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| | | | | |
| Transamerica Funds | | Page 5 | | Annual Report 2011 |
Transamerica Asset Allocation — Growth Portfolio
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Class | | Inception Date |
| |
| Class A (NAV) | | | 1.59 | % | | | (0.69 | )% | | | 3.32 | % | | | 03/01/2002 | |
| Class A (POP) | | | (3.98 | )% | | | (1.80 | )% | | | 2.72 | % | | | 03/01/2002 | |
| Wilshire 5000* | | | 7.57 | % | | | 0.94 | % | | | 4.15 | % | | | 03/01/2002 | |
| |
| Class B (NAV) | | | 0.99 | % | | | (1.34 | )% | | | 2.75 | % | | | 03/01/2002 | |
| Class B (POP) | | | (4.01 | )% | | | (1.52 | )% | | | 2.75 | % | | | 03/01/2002 | |
| |
| Class C (NAV) | | | 0.99 | % | | | (1.28 | )% | | | 5.70 | % | | | 11/11/2002 | |
| Class C (POP) | | | (0.01 | )% | | | (1.28 | )% | | | 5.70 | % | | | 11/11/2002 | |
| |
| Class I (NAV) | | | 2.10 | % | | | N/A | | | | 6.81 | % | | | 11/30/2009 | |
| |
| Class R (NAV) | | | 1.45 | % | | | (0.81 | )% | | | 0.79 | % | | | 06/15/2006 | |
| |
NOTES
| | |
| * | | The Wilshire 5000 Total Market Index (“Wilshire 5000”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and R shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Asset allocation does not ensure a profit or protect against a loss. An investment in the fund is subject to all of the risks associated with the underlying funds. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this portfolio.
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| Transamerica Funds | | Page 6 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Growth Portfolio
(unaudited)
MARKET ENVIRONMENT
The November 1, 2010 to October 31, 2011 reporting period encompassed very different market environments. In the first half of the period, the markets were bullish. In late 2010 and early 2011, investors were cheered by the Federal Reserve Board’s (“Fed”) second round of quantitative easing (“QE2”), encouraging US Gross Domestic Product (“GDP”) readings, holiday spending, and some good news in the job market. The US stock market jumped in December and the gains continued into 2011’s first four months — despite Japan’s tsunami and renewed concern about Europe’s debt problems. For the period November 1, 2010 to April 30, 2011 the Standard & Poor’s 500® Index (“S&P 500”) rose 16.36%, however, international stock markets lagged behind. Concerns about weak European growth and the effects of the Japanese tsunami held the Morgan Stanley Capital International-Europe, Australasia, and Far East Index’s (“MSCI-EAFE”) gain to only 12.95% in US dollar terms, and about half that in local-currency terms. Emerging markets trailed by more as investors worried about inflation in developing markets and a perceived slowdown in China. The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) returned 9.84% for the same November through April period.
Beginning in May, the economic news darkened. First-quarter US GDP growth came in lower than expected, consumer spending slowed, the employment picture weakened, and housing prices softened. The markets also fretted over the June 30th end to the Fed’s QE2. As summer drew on, matters only got worse. In July, first-quarter real US GDP growth was revised downward to 0.4%, and second-quarter growth was reported at just 1.3%. August brought the Congressional showdown over raising the US debt ceiling — and the resulting deal did not impress Standard & Poor’s, which took the historic step of lowering the US government’s credit rating. Meanwhile, the debt crisis in Europe raged on. By late August, Europe had taken center stage as politicians struggled to find a solution to Greece’s severe debt problems even as new concerns arose about the indebtedness of Spain and Italy. European banks’ exposure to the bonds of these countries raised the specter of a banking crisis akin to the 2008 financial crisis. This was on top of general concern about the impact on the global economy of Europe’s debt load and related government austerity programs.
Major equity markets around the world began a string of consecutive monthly declines in May, falling precipitously in August and September. Although US stocks plunged from May through September, foreign stocks fell even harder. After having lagged the S&P 500 on the upside, the MSCI-EAFE Index fell 23.90% from May 1, 2011 to the market’s bottom on October 3, 2011, compared with the S&P 500’s 18.64% decline. The MSCI-EMI plummeted 27.96% over that stretch. Equities rebounded for a few weeks in October, but once again, international stocks lagged.
For the one-year period as a whole, the S&P 500 managed a gain of 8.09%, but the MSCI-EAFE lost 3.64%. The MSCI-EMI fell 7.44%.
Bond returns were similarly differentiated over the period. While stocks rose from November through April, high-quality bonds were generally flat but credit-sensitive bonds performed strongly. Then as stocks fell from May through September, the highest-quality bonds — namely government issues — appreciated dramatically as investors flocked to them for safety. That helped lift the Barclays Capital U.S. Aggregate Bond Index (“BCAB”) (which tilts toward government bonds), while high-yield bonds lost ground in sympathy with stocks.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Asset Allocation-Moderate Growth Portfolio, Class A returned 1.09%. By comparison, its primary and secondary benchmarks, the Wilshire 5000 Total Market Index (“Wilshire 5000”) and the BCAB, returned 7.57% and 5.00%, respectively.
STRATEGY REVIEW
The portfolio is designed to provide a mix of approximately 70% equity and 30% fixed-income securities under normal conditions. The equity side is meant to cover both domestic and international markets, across the entire range of investment styles. The fixed-income portion covers investment-grade and credit-sensitive holdings, as well as international bonds. The portfolio also includes emerging markets, global real estate, commodities, and alternative strategies. The goal is to provide investors one-stop participation in the broad financial markets. Our specific portfolio mix is based on years of asset-allocation modeling — research that consistently indicates that the mix we target is close to optimal in terms of expected long-term returns per unit of risk taken. While this strategic blueprint forms the backbone of our asset allocation, we will actively over- and underweight asset classes relative to the neutral targets as necessary in response to shorter-term market conditions. We endeavor to find and use quality money managers specializing in each asset class and style. We carefully monitor these underlying managers for performance and style issues, and adjust their weightings both to manage our asset-class exposures and to reflect the managers’ relative merit.
During the November 1, 2010 — October 31, 2011 period, international equities dramatically underperformed US equities as outlined above. The MSCI-EAFE of developed foreign markets lost 3.64% for the period, while the S&P 500 of US stocks gained 8.09%, representing a performance differential of around 12 percentage points. This degree of performance divergence is unusual. Because the portfolio is constructed so that about 30% of its equity is in foreign stocks, the underperformance of international equities had a large impact on the portfolio’s one-year return. In addition, the portfolio holds a meaningful weighting in emerging markets. Although emerging markets have enjoyed strong returns over the past three years — the MSCI-EMI boasts a 23.59% annualized three-year return through October 31, 2011 — they were more sluggish than developed foreign markets during the 12-month period covered by this report. The portfolio also provides significant coverage of smaller-cap stocks, which moderately lagged the broader Wilshire 5000.
| | | | |
| | | | | |
| Transamerica Funds | | Page 7 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Growth Portfolio
(unaudited)
STRATEGY REVIEW (continued)
As the stock market fell in the latter half of the period, Treasury bonds soared. While the portfolio does own government bonds, it is designed to own a diversified mixture of bond types. As part of that diversification, the portfolio owns short-term bonds, bonds from developed international markets, and emerging-markets debt. These bond classes, while posting positive returns, did not match the BCAB’s Treasury-fueled gain. At the same time, Transamerica PIMCO Total Return — an anchor holding in our bond portfolio — had a rare lagging year after betting wrongly against the Treasury rally.
The portfolio’s brighter spots included some of the domestic large-cap and mid-cap funds. A number of the international equity and bond funds also fared well relative to their investment categories. But the portfolio’s inherent exposure to international stocks, smaller-cap stocks, and non-government bonds was a dominant factor leading to a rather tepid gain for this one-year period. We nonetheless believe our targeted asset mix is right for the long term.
During the period there were several changes among the underlying funds. The domestic large-cap part of the portfolio underwent some improvements. These included the addition of large-value fund Transamerica WMC Quality Value and the replacement of the underperforming Transamerica UBS Large Cap Value with the well-regarded Transamerica ICAP Select Equity. Some changes were also driven by the dissolution of a Transamerica money-management subsidiary called Transamerica Investment Management, LLC (“TIM”). We had in the portfolio the large-cap growth Transamerica Diversified Equity managed by that subsidiary; it in turn was re-named Transamerica WMC Diversified Equity. Transamerica Focus was re-named Transamerica Morgan Stanley Capital Growth. When TIM was dissolved we moved the money in Transamerica Diversified Equity to the large-growth teams in Transamerica WMC Diversified Equity and Transamerica Morgan Stanley Capital Growth. TIM had also managed the mid-cap Transamerica Growth Opportunities — it too was re-named Transamerica Morgan Stanley Growth Opportunities. We shifted those assets to Morgan Stanley’s excellent mid-cap growth strategy, which we had already been using in the portfolio. We also enhanced the alternative-strategies portion of the portfolio by adding a new merger-arbitrage fund and a long/short equity fund (Transamerica Water Island Arbitrage Strategy and Transamerica JPMorgan Long/Short Strategy-formerly Transamerica BNY Mellon Market Neutral Strategy). These replaced a couple of underperforming funds. Finally, we added the new Transamerica Logan Circle Emerging Markets Debt as a complement to our other emerging-markets debt.
Macroeconomic and geopolitical factors continue to produce abnormally large and broad market swings, making the security-selection skill of our underlying managers less relevant than we would like. In this environment we have tended to be more flexible and active in managing around our neutral portfolio targets to address market risks. We look forward to the eventual return of a more fundamentals-driven market environment, but macroeconomic drivers could remain dominant as Europe lumbers through its debt problem and the US economy struggles to recover.
Jon Hale, CFA
Michael Stout, CFA
Dan McNeela, CFA
Hal Ratner
Co-Portfolio Managers
Morningstar Associates, LLC
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| Transamerica Funds | | Page 8 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Growth Portfolio
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class A (NAV) | | | 1.09 | % | | | 1.03 | % | | | 4.17 | % | | | 03/01/2002 | |
| Class A (POP) | | | (4.44 | )% | | | (0.10 | )% | | | 3.57 | % | | | 03/01/2002 | |
| Wilshire 5000* | | | 7.57 | % | | | 0.94 | % | | | 4.15 | % | | | 03/01/2002 | |
| Barclays Capital U.S. Aggregate Bond* | | | 5.00 | % | | | 6.41 | % | | | 5.72 | % | | | 03/01/2002 | |
| |
| Class B (NAV) | | | 0.43 | % | | | 0.36 | % | | | 3.60 | % | | | 03/01/2002 | |
| Class B (POP) | | | (4.55 | )% | | | 0.18 | % | | | 3.60 | % | | | 03/01/2002 | |
| |
| Class C (NAV) | | | 0.56 | % | | | 0.41 | % | | | 5.97 | % | | | 11/11/2002 | |
| Class C (POP) | | | (0.44 | )% | | | 0.41 | % | | | 5.97 | % | | | 11/11/2002 | |
| |
| Class I (NAV) | | | 1.54 | % | | | N/A | | | | 6.32 | % | | | 11/30/2009 | |
| |
| Class R (NAV) | | | 1.06 | % | | | 0.90 | % | | | 2.21 | % | | | 06/15/2006 | |
| |
NOTES
| | |
| * | | The Wilshire 5000 Total Market Index (“Wilshire 5000”) and the Barclays Capital U.S. Aggregate Bond Index (“Barclays Capital U.S. Aggregate Bond”) are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and R shares
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Asset allocation does not ensure a profit or protect against a loss. An investment in the fund is subject to all of the risks associated with the underlying funds. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 9 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Portfolio
(unaudited)
MARKET ENVIRONMENT
The November 1, 2010 to October 31, 2011 reporting period encompassed very different market environments. In the first half of the period, the markets were bullish. In late 2010 and early 2011, investors were cheered by the Federal Reserve Board’s (“Fed”) second round of quantitative easing (“QE2”), encouraging US Gross Domestic Product (“GDP”) readings, holiday spending, and some good news in the job market. The US stock market jumped in December and the gains continued into 2011’s first four months — despite Japan’s tsunami and renewed concern about Europe’s debt problems. For the period November 1, 2010 to April 30, 2011 the Standard & Poor’s 500® Index (“S&P 500”) rose 16.36%, however, international stock markets lagged behind. Concerns about weak European growth and the effects of the Japanese tsunami held the Morgan Stanley Capital International-Europe, Australasia, and Far East Index’s (“MSCI-EAFE”) gain to only 12.95% in US dollar terms, and about half that in local-currency terms. Emerging markets trailed by more as investors worried about inflation in developing markets and a perceived slowdown in China. The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) returned 9.84% for the same November through April period.
Beginning in May, the economic news darkened. First-quarter US GDP growth came in lower than expected, consumer spending slowed, the employment picture weakened, and housing prices softened. The markets also fretted over the June 30th end to the Fed’s QE2. As summer drew on, matters only got worse. In July, first-quarter real US GDP growth was revised downward to 0.4%, and second-quarter growth was reported at just 1.3%. August brought the Congressional showdown over raising the US debt ceiling — and the resulting deal did not impress Standard & Poor’s, which took the historic step of lowering the US government’s credit rating. Meanwhile, the debt crisis in Europe raged on. By late August, Europe had taken center stage as politicians struggled to find a solution to Greece’s severe debt problems even as new concerns arose about the indebtedness of Spain and Italy. European banks’ exposure to the bonds of these countries raised a banking crisis akin to the 2008 financial crisis. This was on top of general concern about the impact on the global economy of Europe’s debt load and related government austerity programs.
Major equity markets around the world began a string of consecutive monthly declines in May, falling precipitously in August and September. Although US stocks plunged from May through September, foreign stocks fell even harder. After having lagged the S&P 500 on the upside, the MSCI-EAFE fell 23.90% from May 1, 2011 to the market’s bottom on October 3, 2011, compared with the S&P 500’s 18.64% decline. The MSCI-EMI plummeted 27.96% over that stretch. Equities rebounded for a few weeks in October, but once again, international stocks lagged.
For the one-year period as a whole, the S&P 500 managed a gain of 8.09%, but the MSCI-EAFE lost 3.64%. The MSCI-EMI fell 7.44%.
Bond returns were similarly differentiated over the period. While stocks rose from November through April, high-quality bonds were generally flat but credit-sensitive bonds performed strongly. Then as stocks fell from May through September, the highest-quality bonds — namely government issues — appreciated dramatically as investors flocked to them for safety. That helped lift the Barclays Capital U.S. Aggregate Bond Index (“BCAB”) (which tilts toward government bonds), while high-yield bonds lost ground in sympathy with stocks.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Asset Allocation-Moderate Portfolio, Class A returned 2.10%. By comparison, its primary and secondary benchmarks, the Wilshire 5000 Total Market Index (“Wilshire 5000”) and the BCAB, returned 7.57% and 5.00%, respectively.
STRATEGY REVIEW
The portfolio is designed to provide a mix of approximately 50% equity and 50% fixed-income securities under normal conditions. The equity side is meant to cover both domestic and international markets, across the entire range of investment styles. The fixed-income portion covers investment-grade and credit-sensitive holdings, as well as international bonds. The portfolio also includes emerging markets, global real estate, commodities, and alternative strategies. The goal is to provide investors one-stop participation in the broad financial markets. Our specific portfolio mix is based on years of asset-allocation modeling — research that consistently indicates that the mix we target is close to optimal in terms of expected long-term returns per unit of risk taken. While this strategic blueprint forms the backbone of our asset allocation, we will actively over- and underweight asset classes relative to the neutral targets as necessary in response to shorter-term market conditions. We endeavor to find and use quality money managers specializing in each asset class and style. We carefully monitor these underlying managers for performance and style issues, and adjust their weightings both to manage our asset-class exposures and to reflect the managers’ relative merit.
During the November 1, 2010 — October 31, 2011 period, international equities dramatically underperformed US equities as outlined above. The MSCI-EAFE of developed foreign markets lost 3.64% for the period, while the S&P 500 of US stocks gained 8.09%, representing a performance differential of around 12 percentage points. This degree of performance divergence is unusual. Because the portfolio is constructed so that about 30% of its equity is in foreign stocks, the underperformance of international equities had a large impact on the portfolio’s one-year return. In addition, the portfolio holds a meaningful weighting in emerging markets. Although emerging markets have enjoyed strong returns over the past three years — the MSCI-EMI boasts a 23.59% annualized three-year return through October 31, 2011 — they were more sluggish than developed foreign markets during the 12-month period covered by this report. The portfolio also provides significant coverage of smaller-cap stocks, which moderately lagged the broader Wilshire 5000.
| | | | |
| | | | | |
| Transamerica Funds | | Page 10 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Portfolio
(unaudited)
STRATEGY REVIEW (continued)
As the stock market fell in the latter half of the period, Treasury bonds soared. While the portfolio does own government bonds, it is designed to own a diversified mixture of bond types. As part of that diversification, the portfolio owns short-term bonds, bonds from developed international markets, and emerging-markets debt. These bond classes, while posting positive returns, did not match the BCAB’s Treasury-fueled gain. At the same time, Transamerica PIMCO Total Return — an anchor holding in our bond portfolio — had a rare lagging year after betting wrongly against the Treasury rally.
The portfolio’s brighter spots included some of the domestic large-cap and mid-cap funds. A number of the international equity and bond funds also fared well relative to their investment categories. But the portfolio’s inherent exposure to international stocks, smaller-cap stocks, and non-government bonds was a dominant factor leading to a rather tepid gain for this one-year period. We nonetheless believe our targeted asset mix is right for the long term.
During the period there were several changes among the underlying funds. The domestic large-cap part of the portfolio underwent some improvements. These included the addition of large-value fund Transamerica WMC Quality and the replacement of the underperforming Transamerica UBS Large Cap Value with the well-regarded Transamerica ICAP Select Equity. Some changes were also driven by the dissolution of a Transamerica money-management subsidiary called Transamerica Investment Management, LLC (“TIM”). We had in the portfolio the large-cap growth Transamerica Diversified Equity managed by that subsidiary; it in turn was re-named Transamerica WMC Diversified Equity. Transamerica Focus was re-named Transamerica Morgan Stanley Capital Growth. When TIM was dissolved we moved the money in Transamerica Diversified Equity to the large-growth teams in Transamerica WMC Diversified Equity and Transamerica Morgan Stanley Capital Growth. TIM had also managed the mid-cap Transamerica Growth Opportunities — it too was re-named Transamerica Morgan Stanley Growth Opportunities. We shifted those assets to Morgan Stanley’s excellent mid-cap growth strategy, which we had already been using in the portfolio. We also enhanced the alternative-strategies portion of the portfolio by adding a new merger-arbitrage fund and a long/short equity fund (Transamerica Water Island Arbitrage Strategy and Transamerica JPMorgan Long/Short Strategy-formerly Transamerica BNY Mellon Market Neutral Strategy). These replaced a couple of underperforming funds. Finally, we added the new Transamerica Logan Circle Emerging Markets Debt as a complement to our other emerging-markets debt.
Macroeconomic and geopolitical factors continue to produce abnormally large and broad market swings, making the security-selection skill of our underlying managers less relevant than we would like. In this environment we have tended to be more flexible and active in managing around our neutral portfolio targets to address market risks. We look forward to the eventual return of a more fundamentals-driven market environment, but macroeconomic drivers could remain dominant as Europe lumbers through its debt problem and the US economy struggles to recover.
Jon Hale, CFA
Michael Stout, CFA
Dan McNeela, CFA
Hal Ratner
Co-Portfolio Managers
Morningstar Associates, LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 11 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Portfolio
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class A (NAV) | | | 2.10 | % | | | 2.55 | % | | | 4.90 | % | | | 03/01/2002 | |
| Class A (POP) | | | (3.48 | )% | | | 1.39 | % | | | 4.29 | % | | | 03/01/2002 | |
| Wilshire 5000* | | | 7.57 | % | | | 0.94 | % | | | 4.15 | % | | | 03/01/2002 | |
| Barclays Capital U.S. Aggregate Bond* | | | 5.00 | % | | | 6.41 | % | | | 5.72 | % | | | 03/01/2002 | |
| |
| Class B (NAV) | | | 1.49 | % | | | 1.87 | % | | | 4.33 | % | | | 03/01/2002 | |
| Class B (POP) | | | (3.51 | )% | | | 1.70 | % | | | 4.33 | % | | | 03/01/2002 | |
| |
| Class C (NAV) | | | 1.50 | % | | | 1.92 | % | | | 6.20 | % | | | 11/11/2002 | |
| Class C (POP) | | | 0.50 | % | | | 1.92 | % | | | 6.20 | % | | | 11/11/2002 | |
| |
| Class I (NAV) | | | 2.53 | % | | | N/A | | | | 6.46 | % | | | 11/30/2009 | |
| |
| Class R (NAV) | | | 2.01 | % | | | 2.36 | % | | | 3.41 | % | | | 06/15/2006 | |
| |
NOTES
| | |
| * | | The Wilshire 5000 Total Market Index (“Wilshire 5000”) and the Barclays Capital U.S. Aggregate Bond Index (“Barclays Capital U.S. Aggregate Bond”) are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and R shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Asset allocation does not ensure a profit or protect against a loss. An investment in the fund is subject to all of the risks associated with the underlying funds. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 12 | | Annual Report 2011 |
Transamerica Multi-Manager Alternative Strategies Portfolio
(unaudited)
MARKET ENVIORNMENT
The November 1, 2010 to October 31, 2011 reporting period encompassed very different market environments. In the first half of the period, the markets were bullish. In late 2010 and early 2011, investors were cheered by the Federal Reserve Board’s (“Fed”) second round of quantitative easing (“QE2”), encouraging US Gross Domestic Product (“GDP”) readings, holiday spending, and some good news in the job market. The US stock market jumped in December and the gains continued into 2011’s first four months—despite Japan’s tsunami and renewed concern about Europe’s debt problems. International stocks, however, lagged behind. Concerns about weak European growth and the effects of the Japanese tsunami limited the Morgan Stanley Capital International-Europe, Australasia, and Far East Index’s (“MSCI-EAFE”) gain. Emerging markets trailed by more as investors worried about inflation in developing markets and a perceived slowdown in China.
Beginning in May, the economic news darkened. First-quarter US GDP growth came in lower than expected, consumer spending slowed, the employment picture weakened, and housing prices softened. The markets also fretted over the June 30th end to the Fed’s QE2. As summer drew on, matters only got worse. In July, first-quarter real US GDP growth was revised downward. August brought the Congressional showdown over raising the US debt ceiling—and the resulting deal did not impress Standard & Poor’s, which took the historic step of lowering the US government’s credit rating. Meanwhile, the debt crisis in Europe raged on. By late August, Europe had taken center stage as politicians struggled to find a solution to Greece’s severe debt problems even as new concerns arose about the indebtedness of Spain and Italy. European banks’ exposure to the bonds of these countries raised a banking crisis akin to the 2008 financial crisis. This was on top of general concern about the impact on the global economy of Europe’s debt load and related government austerity programs.
Major equity markets around the world began a string of consecutive monthly declines in May, falling precipitously in August and September. Although US stocks plunged from May through September, foreign stocks fell even harder. Equities rebounded for a few weeks in October, but once again, international stocks lagged.
Bond returns were similarly differentiated over the period. While stocks rose from November through April, high-quality bonds were generally flat but credit-sensitive bonds performed strongly. Then as stocks fell from May through September, the highest-quality bonds— namely government issues—appreciated dramatically as investors flocked to them for safety. That helped lift the Barclays Capital U.S. Aggregate Bond Index (“BCAB”) (which tilts toward government bonds), while high-yield bonds lost ground in sympathy with stocks. Over the entire one-year period, the BCAB delivered a 5.00% return.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Multi-Manager Alternative Strategies Portfolio, Class A, returned (0.77)%. By comparison, its benchmark, the Bank of America Merrill Lynch 3-Month Treasury Bill +3% Wrap Index, returned 3.18%.
STRATEGY REVIEW
Transamerica Multi-Manager Alternative Strategies Portfolio is designed to provide diversification relative to a core stock/bond portfolio. The fund can be broken into three broad categories: absolute-return strategies; non-traditional asset classes; and opportunistic betas.
Absolute-return strategies are those whose return profiles are due largely to manager decision-making rather than market movements. This category is represented in the portfolio by: Transamerica First Quadrant Global Macro (“First Quadrant”); Transamerica AQR Managed Futures Strategy (“AQR”); the newly added Transamerica Water Island Arbitrage Strategy (“Water Island”); and the recently added Transamerica JPMorgan Long/Short Strategy (“JPMorgan Long/Short”) (formerly, Transamerica BNY Mellon Market Neutral Strategy). An arbitrage fund such as Water Island—which is nearly market-neutral—has minimal systematic market sensitivity. First Quadrant, with its targeted 5% standard deviation and structural short positions, has very modest market exposure. AQR, which follows a momentum strategy, can display positive or negative market correlation depending on what its momentum model is recommending at different times. JPMorgan Long/Short falls between First Quadrant and AQR, given its modest net long equity exposure.
We define non-traditional asset classes as those not widely held by retail investors, examples of those would be global real-estate investment trusts (“REIT”), commodity, futures and local-currency-denominated emerging-markets debt. These asset classes are represented in the portfolio by Transamerica Clarion Global Real Estate Securities, Transamerica Goldman Sachs Commodity Strategy (“Goldman Sachs”), and the recently added Transamerica Logan Circle Emerging Markets Debt (“Logan Circle”).
Opportunistic betas are simply more-traditional asset classes that we use opportunistically when we believe they can add to returns given prevailing market conditions. Transamerica PIMCO Real Return TIPS (which invests in Treasury Inflation Protected Securities or (“TIPS”), Transamerica AEGON High Yield Bond (“AEGON High Yield”), Transamerica BlackRock Global Allocation, and Transamerica Morgan Stanley Emerging Markets Debt (which concentrates in sovereign credits) all fall into this category. Transamerica Loomis Sayles Bond (“Loomis Sayles”), a highly opportunistic bond strategy with relatively low market correlation, straddles the absolute-return and opportunistic categories.
| | | | |
| | | | | |
| Transamerica Funds | | Page 13 | | Annual Report 2011 |
Transamerica Multi-Manager Alternative Strategies Portfolio
(unaudited)
STRATEGY REVIEW (continued)
In keeping with our goal of expanding the roster of alternative strategies in the portfolio, the past year saw the addition of three new funds: JPMorgan Long/Short, Water Island, and Logan Circle. The JPMorgan Long/Short fund is an equity long-short strategy that draws its investment universe from the Standard & Poor’s 500® Index (“S&P 500”). The fund usually will be approximately 30% net long in equities; it has exhibited a beta of between 0.25 and 0.30 relative to the index since being added to the portfolio. The past 12 months, however, proved challenging for the strategy, as long/short strategies tend to underperform in choppy markets with few clear and sustained trends. Water Island, a merger-arbitrage strategy, fared better largely due to the very low interest-rate environment, large amounts of corporate cash on acquirers’ books and, to a lesser degree, opportunities presented by an uncertain equity market. Logan Circle, which was added in August, has substantially outperformed the BarCap Emerging Market Total Return Index during its time in the portfolio.
But overall, the past year’s volatile, up-and-down markets made it difficult for several of our underlying managers to achieve good results. In particular, we saw some disappointing returns from our absolute-return strategies. JPMorgan Long/Short, AQR, and First Quadrant all posted negative returns for the period. The portfolio’s exposure to REITs, which were nearly flat for the year, also held it back. Although the absolute-return funds generally performed poorly, the portfolio did benefit from some of its opportunistic positions. TIPS rallied as interest rates fell, high-yield bonds had decent overall returns, benefiting both AEGON High Yield and Loomis Sayles, and emerging-markets debt performed reasonably well.
Given concerns about the slowing economy and worsening European debt crisis, we have been maintaining a larger-than-normal position in fixed income. At the period’s end, we had approximately 32% of assets allocated to fixed-income funds. The goal is to mute overall volatility while enhancing the portfolio’s returns with bond yield. This positioning also reduces the portfolio’s beta relative to the S&P 500.
Macroeconomic and geopolitical factors continue to produce abnormally large and broad market swings. In this environment we have tended to be more flexible and active in managing the portfolio’s risks. We look forward to the eventual return to a more fundamentally driven market environment, but macroeconomic drivers could remain dominant as Europe lumbers through its debt problem and the US economy struggles to recover.
Jon Hale, CFA
Michael Stout, CFA
Dan McNeela, CFA
Hal Ratner
Co-Portfolio Managers
Morningstar Associates, LLC
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| Transamerica Funds | | Page 14 | | Annual Report 2011 |
Transamerica Multi-Manager Alternative Strategies Portfolio
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Class | | | Inception Date | |
| |
| Class A (NAV) | | | (0.77 | )% | | | 1.35 | % | | | 12/28/2006 | |
| Class A (POP) | | | (6.21 | )% | | | 0.17 | % | | | 12/28/2006 | |
| BofA Merrill Lynch 3-Month Treasury Bill + 3% Wrap Index* | | | 3.18 | % | | | 4.63 | % | | | 12/28/2006 | |
| |
| Class C (NAV) | | | (1.35 | )% | | | 0.70 | % | | | 12/28/2006 | |
| Class C (POP) | | | (2.34 | )% | | | 0.70 | % | | | 12/28/2006 | |
| |
| Class I (NAV) | | | (0.47 | )% | | | 3.17 | % | | | 11/30/2009 | |
| |
NOTES
| | |
| * | | The Bank of America Merrill Lynch 3-Month Treasury Bill + 3% Wrap Fee Index (“BofA Merrill Lynch 3-Month Treasury Bill + 3% Wrap Index”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge and 1% (during the first 12 months) for Class C shares. There are no sales charges on Class I shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Alternative strategies are not suitable for all investors. Many alternative strategies use sophisticated and aggressive investment techniques. Certain alternative strategies may be tied to hard assets such as commodities, currencies and real estate and may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, and international economic, political, and regulatory developments. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this portfolio.
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| Transamerica Funds | | Page 15 | | Annual Report 2011 |
Transamerica Multi-Manager International Portfolio
(unaudited)
MARKET ENVIRONMENT
The November 1, 2010 to October 31, 2011 reporting period encompassed very different market environments. In the first half of the period, the markets were bullish. In late 2010 and early 2011, investors were cheered by the Federal Reserve Board’s (“Fed”) second round of quantitative easing (“QE2), encouraging US Gross Domestic Product (“GDP”) readings, holiday spending, and some good news in the job market. The US stock market jumped in December and the gains continued into 2011’s first four months—despite Japan’s tsunami and renewed concern about Europe’s debt problems. For the period November 1, 2010 to April 30, 2011 the Standard & Poor’s 500® Index (“S&P 500”) rose 16.36%, however, international stock markets lagged behind. Concerns about weak European growth and the effects of the Japanese tsunami held the Morgan Stanley Capital International-Europe, Australasia, and Far East Index’s (“MSCI-EAFE”) gain to only 12.95% in US dollar terms, and about half that in local-currency terms. Emerging markets trailed by more as investors worried about inflation in developing markets and a perceived slowdown in China. The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) returned 9.84% for the same November through April period.
Beginning in May, the economic news darkened. First-quarter US GDP growth came in lower than expected, consumer spending slowed, the employment picture weakened, and housing prices softened. The markets also fretted over the June 30th end to the Fed’s QE2. As summer drew on, matters only got worse. In July, first-quarter real US GDP growth was revised downward to 0.4%, and second-quarter growth was reported at just 1.3%. August brought the Congressional showdown over raising the US debt ceiling—and the resulting deal did not impress Standard & Poor’s, which took the historic step of lowering the US government’s credit rating. Meanwhile, the debt crisis in Europe raged on. By late August, Europe had taken center stage as politicians struggled to find a solution to Greece’s severe debt problems even as new concerns arose about the indebtedness of Spain and Italy. European banks’ exposure to the bonds of these countries raised a banking crisis akin to the 2008 financial crisis. This was on top of general concern about the impact on the global economy of Europe’s debt load and related government austerity programs.
Major equity markets around the world began a string of consecutive monthly declines in May, falling precipitously in August and September. Although US stocks plunged from May through September, foreign stocks fell even harder. After having lagged the S&P 500 on the upside, the MSCI-EAFE fell 23.90% from May 1, 2011 to the market’s bottom on October 3, 2011, compared with the S&P 500’s 18.64% decline. The MSCI-EMI plummeted 27.96% over that stretch. Equities rebounded for a few weeks in October, but once again, international stocks lagged.
For the one-year period as a whole, the S&P 500 managed a gain of 8.09%, but the MSCI-EAFE lost 3.64%. The MSCI-EMI fell 7.44%.
PEFORMANCE
For the year ended October 31, 2011, Transamerica Multi-Manager International Portfolio, Class A, returned (6.90)%. By comparison, its benchmark, the Morgan Stanley Capital International World ex-U.S. Index (“MSCIW ex U.S.”) returned (3.25)%.
STRATEGY REVIEW
The portfolio is structured to provide broad coverage of international equity markets. The nine underlying funds in the portfolio cover a range of international investing styles, including: developed markets large-cap value; blend and growth stocks; mid-cap stocks; small-cap stocks; emerging-markets stocks; global real estate; and global tactical asset allocation. The portfolio targets approximately 75% of assets in developed markets and 25% in emerging markets. Large-cap stocks are targeted at 65% to 70% of the portfolio, with mid- and small-cap stocks comprising 30% to 35%. The portfolio also contains smaller positions of about 5% each in global real estate and global tactical asset-allocation funds. Its objective is to provide investors with comprehensive coverage of international markets in a single investment vehicle. As a result, the portfolio is more broadly diversified than most international portfolios or indices. While we generally hew closely to our strategic targets, we will actively over- and underweight asset classes as necessary in response to shorter-term market conditions. We endeavor to find and use quality money managers specializing in each asset class and style. We carefully monitor these underlying managers for performance and style issues, and adjust their weightings both to manage our asset-class exposures and to reflect the managers’ relative merit.
The portfolio underperformed the MSCIW ex U.S. over the 12-month reporting period. For the most part, the performance is attributable to the portfolio’s emerging-markets exposure, which averaged around 30% of assets. The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) returned (7.44)% for the reporting period, well below that of the MSCIW ex U.S., which has no emerging-markets exposure. The two worst performers among the underlying funds in the portfolio were Transamerica WMC Emerging Markets, one of the two dedicated underlying emerging-markets funds, and Transamerica Hansberger International Value, which devotes a large portion of its portfolio to emerging markets. Both funds were significantly overweight China, which was one of the worst performers among emerging markets for the reporting period. In addition, the portfolio’s largest position is Transamerica Thornburg International Value, which suffered through an uncharacteristic stretch of underperformance during this reporting period.The portfolio’s bright spots included Transamerica BlackRock Global Allocation, which sidestepped some of the difficulties experienced by global equities, and Transamerica Clarion Global Real Estate Securities.
| | | | |
| | | | | |
| Transamerica Funds | | Page 16 | | Annual Report 2011 |
Transamerica Multi-Manager International Portfolio
(unaudited)
STRATEGY REVIEW (continued)
Despite a difficult year for emerging markets, we believed they deserved their weighting in the portfolio because of their economic and market fundamentals relative to most of the developed world outside the US. After a difficult first quarter in 2011, they appeared poised for a mid-year rebound. But the global economic slowdown and ongoing Euro-debt crisis combined to create a “risk-off” macro environment in which emerging-markets equities sold off during the late summer. Going forward, we believe emerging economies will continue to be the drivers of global economic growth in the coming years, while the Euro-zone faces major uncertainty around its single currency stemming from the ongoing sovereign debt crisis. As a result, we believe we will maintain a significant allocation to emerging markets. Strong economic growth is no guarantee of high equity returns, but this year’s down market has made emerging-market valuations more attractive.
The portfolio is well positioned to benefit from longer-term growth in emerging markets, but in a way that mitigates short-term risk. Our emerging-markets exposure is diversified across active managers who use a variety of different investment approaches. Not only do we use two dedicated emerging-markets funds, several of our primarily developed-markets funds invest portions of their portfolios in emerging markets, as does our tactical allocation fund. Should emerging markets become less attractive relative to developed markets; our managers will tend to reduce their emerging-markets exposure. We can make adjustments at the overall portfolio level as well to mitigate risk when conditions warrant.
Despite the difficulties of the past 12 months, the portfolio’s long-term record remains strong. Its 12.48% 3-year annualized trailing return easily tops the MSCIW ex U.S. 11.05% return, and the portfolio’s (0.81)% 5-year annualized trailing return is better than the benchmark’s (1.36)% return.
Macroeconomic and geopolitical factors continue to produce abnormally large and broad market swings, making the security-selection skill of our underlying managers less relevant than we would like. In this environment we have tended to be more flexible and active in managing around our portfolio targets to address the portfolio’s risks. We look forward to the eventual return to a more fundamentals-driven market environment, but macroeconomic drivers could remain dominant as Europe lumbers through its debt problem and the US economy struggles to recover.
Jon Hale, CFA
Michael Stout, CFA
Dan McNeela, CFA
Hal Ratner
Co-Portfolio Managers
Morningstar Associates, LLC
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| | | | | |
| Transamerica Funds | | Page 17 | | Annual Report 2011 |
Transamerica Multi-Manager International Portfolio
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class A (NAV) | | | (6.90 | )% | | | (0.81 | )% | | | 0.36 | % | | | 03/01/2006 | |
| Class A (POP) | | | (12.00 | )% | | | (1.93 | )% | | | (0.63 | )% | | | 03/01/2006 | |
| MSCI World ex-US* | | | (3.25 | )% | | | (1.36 | )% | | | 0.81 | % | | | 03/01/2006 | |
| |
| Class B (NAV) | | | (7.59 | )% | | | (1.55 | )% | | | (0.36 | )% | | | 03/01/2006 | |
| Class B (POP) | | | (12.21 | )% | | | (1.73 | )% | | | (0.36 | )% | | | 03/01/2006 | |
| |
| Class C (NAV) | | | (7.42 | )% | | | (1.44 | )% | | | (0.28 | )% | | | 03/01/2006 | |
| Class C (POP) | | | (8.35 | )% | | | (1.44 | )% | | | (0.28 | )% | | | 03/01/2006 | |
| |
| Class I (NAV) | | | (6.49 | )% | | | N/A | | | | 2.99 | % | | | 11/30/2009 | |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International World ex-US Index (“MSCI World ex-US”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of portfolio shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Asset allocation does not ensure a profit or protect against a loss. Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this portfolio.
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| Transamerica Funds | | Page 18 | | Annual Report 2011 |
Understanding Your Funds’ Expenses
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees, and other fund expenses.
The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the funds and to compare these costs with the ongoing costs of investing in other funds.
The examples are based on an investment of $1,000 invested at May 1, 2011 and held for the entire period until October 31, 2011.
ACTUAL EXPENSES
The information in the table under the heading “Actual Expenses” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, 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 appropriate column for your share class titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.
HYPOTHETICAL EXAMPLES FOR COMPARISON PURPOSES
The information in the table under the heading “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the funds’ actual returns. 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 your funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges and brokerage commissions paid on purchases and sales of fund shares. Therefore, the information under the heading “Hypothetical Expenses” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If any of these transaction costs were included, your costs would be higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.
Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not a part of the advisory and administrative fees. Examples of such expenses are fees and expenses of trustees and their counsel, extraordinary expenses and interest expense.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Actual Expenses | | | Hypothetical Expenses (B) | | | | |
| | | Beginning | | | Ending Account | | | Expenses Paid | | | Ending Account | | | Expenses Paid | | | Annualized | |
| Fund Name | | Account Value | | | Value | | | During Period (A) | | | Value | | | During Period (A) | | | Expense Ratio (C) | |
| |
| Transamerica Asset Allocation — Conservative Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 956.00 | | | $ | 3.06 | | | $ | 1,022.08 | | | $ | 3.16 | | | | 0.62 | % |
| Class B | | | 1,000.00 | | | | 952.40 | | | | 6.20 | | | | 1,018.85 | | | | 6.41 | | | | 1.26 | |
| Class C | | | 1,000.00 | | | | 952.90 | | | | 5.96 | | | | 1,019.11 | | | | 6.16 | | | | 1.21 | |
| Class I | | | 1,000.00 | | | | 957.90 | | | | 1.28 | | | | 1,023.89 | | | | 1.33 | | | | 0.26 | |
| Class R | | | 1,000.00 | | | | 954.50 | | | | 4.63 | | | | 1,020.47 | | | | 4.79 | | | | 0.94 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Transamerica Asset Allocation — Growth Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 883.80 | | | | 3.23 | | | | 1,021.78 | | | | 3.47 | | | | 0.68 | |
| Class B | | | 1,000.00 | | | | 881.20 | | | | 6.45 | | | | 1,018.35 | | | | 6.92 | | | | 1.36 | |
| Class C | | | 1,000.00 | | | | 881.20 | | | | 6.16 | | | | 1,018.65 | | | | 6.61 | | | | 1.30 | |
| Class I | | | 1,000.00 | | | | 886.20 | | | | 1.28 | | | | 1,023.84 | | | | 1.38 | | | | 0.27 | |
| Class R | | | 1,000.00 | | | | 882.90 | | | | 3.84 | | | | 1,021.12 | | | | 4.13 | | | | 0.81 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 904.50 | | | | 3.02 | | | | 1,022.03 | | | | 3.21 | | | | 0.63 | |
| Class B | | | 1,000.00 | | | | 901.30 | | | | 6.28 | | | | 1,018.60 | | | | 6.67 | | | | 1.31 | |
| Class C | | | 1,000.00 | | | | 901.70 | | | | 6.04 | | | | 1,018.85 | | | | 6.41 | | | | 1.26 | |
| Class I | | | 1,000.00 | | | | 906.80 | | | | 1.25 | | | | 1,023.89 | | | | 1.33 | | | | 0.26 | |
| Class R | | | 1,000.00 | | | | 904.10 | | | | 3.70 | | | | 1,021.32 | | | | 3.92 | | | | 0.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Transamerica Asset Allocation — Moderate Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 935.50 | | | | 2.98 | | | | 1,022.13 | | | | 3.11 | | | | 0.61 | |
| Class B | | | 1,000.00 | | | | 932.40 | | | | 6.28 | | | | 1,018.70 | | | | 6.56 | | | | 1.29 | |
| Class C | | | 1,000.00 | | | | 932.00 | | | | 5.94 | | | | 1,019.06 | | | | 6.21 | | | | 1.22 | |
| Class I | | | 1,000.00 | | | | 937.90 | | | | 1.27 | | | | 1,023.89 | | | | 1.33 | | | | 0.26 | |
| Class R | | | 1,000.00 | | | | 935.20 | | | | 4.00 | | | | 1,021.07 | | | | 4.18 | | | | 0.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 946.20 | | | | 3.73 | | | | 1,021.37 | | | | 3.87 | | | | 0.76 | |
| Class C | | | 1,000.00 | | | | 943.00 | | | | 6.95 | | | | 1,018.05 | | | | 7.22 | | | | 1.42 | |
| Class I | | | 1,000.00 | | | | 948.20 | | | | 1.96 | | | | 1,023.19 | | | | 2.04 | | | | 0.40 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 19 | | Annual Report 2011 |
Understanding Your Funds’ Expenses (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Actual Expenses | | | Hypothetical Expenses (B) | | | | |
| | | Beginning | | | Ending Account | | | Expenses Paid | | | Ending Account | | | Expenses Paid | | | Annualized | |
| Fund Name | | Account Value | | | Value | | | During Period (A) | | | Value | | | During Period (A) | | | Expense Ratio (C) | |
| |
| Transamerica Multi-Manager International Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 833.90 | | | | 3.10 | | | | 1,021.83 | | | | 3.41 | | | | 0.67 | |
| Class B | | | 1,000.00 | | | | 831.00 | | | | 6.69 | | | | 1,017.90 | | | | 7.37 | | | | 1.45 | |
| Class C | | | 1,000.00 | | | | 831.90 | | | | 6.28 | | | | 1,018.35 | | | | 6.92 | | | | 1.36 | |
| Class I | | | 1,000.00 | | | | 836.50 | | | | 1.39 | | | | 1,023.69 | | | | 1.53 | | | | 0.30 | |
| | |
| (A) | | Expenses are calculated using the funds’ annualized expense ratios (as disclosed in the table), multiplied by the average account values for the period, multiplied by the number of days in the period (184 days), and divided by the number of days in the year (365 days). |
| |
| (B) | | 5% return per year before expenses. |
| |
| (C) | | Expense ratios do not include expenses of the investment companies in which the funds invest. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 20 | | Annual Report 2011 |
Schedules of Investments Composition
At October 31, 2011
(the following charts summarize the Schedules of Investments of the Funds by asset type)
(unaudited)
| | | | | |
| Transamerica Asset Allocation — Conservative Portfolio |
| |
| Bonds | | | 46.8 | % |
| U.S. Stocks | | | 18.5 | |
| Tactical and Specialty | | | 13.0 | |
| Capital Markets | | | 11.7 | |
| Inflation-Protected Securities | | | 6.2 | |
| Global/International Stocks | | | 3.3 | |
| Capital Preservation | | | 0.5 | |
| Other Assets and Liabilities — Net | | | 0.0 | * |
Total | | | 100.0 | % |
| | | | |
| | | | | |
|
| Transamerica Asset Allocation — Growth Portfolio |
| |
| U.S. Stocks | | | 47.8 | % |
| Capital Markets | | | 27.9 | |
| Global/International Stocks | | | 16.5 | |
| Tactical and Specialty | | | 8.0 | |
| Repurchase Agreement | | | 0.0 | * |
| Capital Preservation | | | 0.0 | * |
| Other Assets and Liabilities — Net | | | (0.2 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
|
| Transamerica Asset Allocation — Moderate Growth Portfolio |
| |
| U.S. Stocks | | | 35.9 | % |
| Capital Markets | | | 20.8 | |
| Bonds | | | 18.4 | |
| Tactical and Specialty | | | 12.8 | |
| Global/International Stocks | | | 10.6 | |
| Inflation-Protected Securities | | | 1.7 | |
| Other Assets and Liabilities — Net | | | (0.2 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
|
| Transamerica Asset Allocation — Moderate Portfolio |
| |
| Bonds | | | 33.1 | % |
| U.S. Stocks | | | 27.9 | |
| Capital Markets | | | 14.4 | |
| Tactical and Specialty | | | 13.4 | |
| Global/International Stocks | | | 5.8 | |
| Inflation-Protected Securities | | | 5.3 | |
| Capital Preservation | | | 0.2 | |
| Other Assets and Liabilities — Net | | | (0.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
|
| Transamerica Multi-Manager Alternative Strategies Portfolio |
| |
| Tactical and Specialty | | | 71.2 | % |
| Capital Markets | | | 11.4 | |
| Bonds | | | 11.1 | |
| Inflation-Protected Securities | | | 5.5 | |
| Capital Preservation | | | 0.5 | |
| Repurchase Agreement | | | 0.0 | * |
| Other Assets and Liabilities — Net | | | 0.3 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
|
| Transamerica Multi-Manager International Portfolio |
| |
| Global/International Stocks | | | 91.0 | % |
| Tactical and Specialty | | | 8.1 | |
| Capital Preservation | | | 1.1 | |
| Other Assets and Liabilities — Net | | | (0.2 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | |
| * | | Amount rounds to less than 0.1% or (0.1)%. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 21 | | Annual Report 2011 |
Transamerica Asset Allocation — Conservative Portfolio
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
INVESTMENT COMPANIES — 100.0% л | | | | | | | | |
Bonds — 46.8% | | | | | | | | |
| Transamerica AEGON Flexible Income | | | 1,885,456 | | | $ | 16,705 | |
| Transamerica AEGON High Yield Bond | | | 2,210,417 | | | | 19,938 | |
| Transamerica AEGON Short-Term Bond | | | 7,076,821 | | | | 71,759 | |
| Transamerica JPMorgan Core Bond | | | 17,425,378 | | | | 184,709 | |
| Transamerica JPMorgan International Bond | | | 4,279,252 | | | | 48,099 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 1,749,977 | | | | 18,812 | |
| Transamerica PIMCO Total Return | | | 17,912,862 | | | | 186,651 | |
Capital Markets — 11.7% | | | | | | | | |
| Transamerica ICAP Select Equity | | | 3,723,198 | | | | 38,088 | |
| Transamerica Logan Circle Emerging Markets Debt | | | 874,936 | | | | 8,758 | |
| Transamerica Morgan Stanley Capital Growth ‡ | | | 1,240,784 | | | | 13,611 | |
| Transamerica Water Island Arbitrage Strategy ‡ | | | 1,989,396 | | | | 20,391 | |
| Transamerica WMC Quality Value | | | 5,328,173 | | | | 54,988 | |
Capital Preservation — 0.5% | | | | | | | | |
| Transamerica AEGON Money Market | | | 5,567,706 | | | | 5,568 | |
Global/International Stocks — 3.3% | | | | | | | | |
| Transamerica MFS International Equity | | | 681,336 | | | | 5,682 | |
| Transamerica Neuberger Berman International | | | 477,247 | | | | 4,057 | |
| Transamerica Oppenheimer Developing Markets | | | 925,087 | | | | 11,352 | |
| Transamerica Schroders International Small Cap | | | 560,264 | | | | 5,042 | |
| Transamerica Thornburg International Value | | | 625,190 | | | | 6,439 | |
| Transamerica WMC Emerging Markets | | | 464,827 | | | | 5,457 | |
Inflation-Protected Securities — 6.2% | | | | | | | | |
| Transamerica PIMCO Real Return TIPS | | | 6,352,153 | | | | 72,732 | |
Tactical and Specialty — 13.0% | | | | | | | | |
| Transamerica AQR Managed Futures Strategy | | | 2,527,718 | | | | 23,609 | |
| Transamerica BlackRock Global Allocation | | | 1,984,473 | | | | 21,809 | |
| Transamerica Clarion Global Real Estate Securities | | | 81,870 | | | | 953 | |
| Transamerica First Quadrant Global Macro ‡ | | | 2,363,332 | | | | 13,755 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 1,245,012 | | | | 13,409 | |
| Transamerica JPMorgan Long/Short Strategy ‡ | | | 1,321,504 | | | | 10,387 | |
| Transamerica Loomis Sayles Bond | | | 6,401,703 | | | | 67,922 | |
U.S. Stocks — 18.5% | | | | | | | | |
| Transamerica BlackRock Large Cap Value | | | 4,884,116 | | | | 43,371 | |
| Transamerica Jennison Growth | | | 4,220,017 | | | | 54,607 | |
| Transamerica JPMorgan Mid Cap Value | | | 677,624 | | | | 7,406 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 1,030,692 | | | | 11,781 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 605,543 | | | | 7,914 | |
| Transamerica Morgan Stanley Small Company Growth | | | 745,406 | | | | 8,595 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 747,046 | | | | 7,127 | |
| Transamerica Third Avenue Value | | | 890,720 | | | | 18,474 | |
| Transamerica WMC Diversified Equity | | | 1,749,230 | | | | 25,766 | |
| Transamerica WMC Diversified Growth ‡ | | | 3,101,044 | | | | 30,080 | |
| | | | | | | | |
| Total Investment Companies (cost $1,086,076) П | | | | | | | 1,165,803 | |
| Other Assets and Liabilities — Net | | | | | | | (182 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 1,165,621 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| л | | The fund invests its assets in the Class I2 shares of the affiliated Transamerica Funds. |
| |
| ‡ | | Non-income producing security. |
| |
| П | | Aggregate cost for federal income tax purposes is $1,091,675. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $81,109 and $6,981, respectively. Net unrealized appreciation for tax purposes is $74,128. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Investment Companies | | $ | 1,165,803 | | | $ | — | | | $ | — | | | $ | 1,165,803 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 22 | | Annual Report 2011 |
Transamerica Asset Allocation — Growth Portfolio
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
INVESTMENT COMPANIES — 100.2% л | | | | | | | | |
Capital Markets — 27.9% | | | | | | | | |
| Transamerica ICAP Select Equity | | | 13,208,653 | | | $ | 135,125 | |
| Transamerica Morgan Stanley Capital Growth ‡ | | | 5,805,124 | | | | 63,682 | |
| Transamerica Water Island Arbitrage Strategy ‡ | | | 1,333,339 | | | | 13,667 | |
| Transamerica WMC Quality Value | | | 18,757,202 | | | | 193,574 | |
Capital Preservation — 0.0% 8 | | | | | | | | |
| Transamerica AEGON Money Market | | | 60,239 | | | | 60 | |
Global/International Stocks — 16.5% | | | | | | | | |
| Transamerica Hansberger International Value | | | 2,459,661 | | | | 16,922 | |
| Transamerica MFS International Equity | | | 1,931,258 | | | | 16,107 | |
| Transamerica Neuberger Berman International | | | 5,973,767 | | | | 50,777 | |
| Transamerica Oppenheimer Developing Markets | | | 5,907,001 | | | | 72,480 | |
| Transamerica Schroders International Small Cap | | | 4,631,357 | | | | 41,682 | |
| Transamerica Thornburg International Value | | | 3,334,473 | | | | 34,345 | |
| Transamerica WMC Emerging Markets | | | 615,263 | | | | 7,223 | |
Tactical and Specialty — 8.0% | | | | | | | | |
| Transamerica AQR Managed Futures Strategy | | | 2,051,786 | | | | 19,164 | |
| Transamerica BlackRock Global Allocation | | | 1,078,006 | | | | 11,847 | |
| Transamerica Clarion Global Real Estate Securities | | | 4,400,102 | | | | 51,218 | |
| Transamerica First Quadrant Global Macro ‡ | | | 1,752,953 | | | | 10,202 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 1,458,506 | | | | 15,708 | |
| Transamerica JPMorgan Long/Short Strategy ‡ | | | 974,588 | | | | 7,660 | |
U.S. Stocks — 47.8% | | | | | | | | |
| Transamerica BlackRock Large Cap Value | | | 17,148,645 | | | | 152,280 | |
| Transamerica Jennison Growth | | | 13,560,664 | | | | 175,474 | |
| Transamerica JPMorgan Mid Cap Value | | | 3,331,165 | | | | 36,410 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 1,256,462 | | | | 14,361 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 2,937,547 | | | | 38,394 | |
| Transamerica Morgan Stanley Small Company Growth | | | 2,147,925 | | | | 24,766 | |
| Transamerica Oppenheimer Small- & Mid- Cap Value | | | 3,736,199 | | | | 35,643 | |
| Transamerica Third Avenue Value | | | 2,278,499 | | | | 47,256 | |
| Transamerica WMC Diversified Equity | | | 5,254,968 | | | | 77,406 | |
| Transamerica WMC Diversified Growth ‡ | | | 9,503,222 | | | | 92,181 | |
| | | | | | | | |
Total Investment Companies (cost $1,294,162) | | | | | | | 1,455,614 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 0.0% ∞ | | | | | | | | |
| State Street Bank & Trust Co. 0.03%, ▲, dated 10/31/2011, to be repurchased at $10 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $12. | | $ | 10 | | | | 10 | |
Total Repurchase Agreement (cost $10) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $1,294,172) П | | | | | | | 1,455,624 | |
| Other Assets and Liabilities — Net | | | | | | | (2,528 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 1,453,096 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| л | | The fund invests its assets in the Class I2 shares of the affiliated Transamerica Funds. |
| |
| ‡ | | Non-income producing security. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $1,310,390. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $169,701 and $24,467, respectively. Net unrealized appreciation for tax purposes is $145,234. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Investment Companies | | $ | 1,455,614 | | | $ | — | | | $ | — | | | $ | 1,455,614 | |
| Repurchase Agreement | | | — | | | | 10 | | | | — | | | | 10 | |
Total | | $ | 1,455,614 | | | $ | 10 | | | $ | — | | | $ | 1,455,624 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 23 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Growth Portfolio
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
INVESTMENT COMPANIES — 100.2% л | | | | | | | | |
Bonds — 18.4% | | | | | | | | |
| Transamerica AEGON High Yield Bond | | | 14,622,269 | | | $ | 131,893 | |
| Transamerica AEGON Short-Term Bond | | | 1,651,749 | | | | 16,749 | |
| Transamerica JPMorgan Core Bond | | | 12,557,975 | | | | 133,115 | |
| Transamerica JPMorgan International Bond | | | 4,815,602 | | | | 54,127 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 3,289,650 | | | | 35,364 | |
| Transamerica PIMCO Total Return | | | 16,885,487 | | | | 175,946 | |
Capital Markets — 20.8% | | | | | | | | |
| Transamerica ICAP Select Equity | | | 19,813,114 | | | | 202,688 | |
| Transamerica Logan Circle Emerging Markets Debt | | | 1,802,366 | | | | 18,042 | |
| Transamerica Morgan Stanley Capital Growth ‡ | | | 7,358,565 | | | | 80,723 | |
| Transamerica Water Island Arbitrage Strategy ‡ | | | 1,984,263 | | | | 20,339 | |
| Transamerica WMC Quality Value | | | 28,584,198 | | | | 294,989 | |
Global/International Stocks — 10.6% | | | | | | | | |
| Transamerica Hansberger International Value | | | 2,424,729 | | | | 16,682 | |
| Transamerica MFS International Equity | | | 2,247,270 | | | | 18,742 | |
| Transamerica Neuberger Berman International | | | 5,796,333 | | | | 49,269 | |
| Transamerica Oppenheimer Developing Markets | | | 8,900,597 | | | | 109,210 | |
| Transamerica Schroders International Small Cap | | | 3,837,300 | | | | 34,536 | |
| Transamerica Thornburg International Value | | | 4,409,827 | | | | 45,421 | |
| Transamerica WMC Emerging Markets | | | 3,493,001 | | | | 41,008 | |
Inflation-Protected Securities — 1.7% | | | | | | | | |
| Transamerica PIMCO Real Return TIPS | | | 4,450,377 | | | | 50,957 | |
Tactical and Specialty — 12.8% | | | | | | | | |
| Transamerica AQR Managed Futures Strategy | | | 9,652,642 | | | | 90,155 | |
| Transamerica BlackRock Global Allocation | | | 6,655,290 | | | | 73,142 | |
| Transamerica Clarion Global Real Estate Securities | | | 2,904,178 | | | | 33,805 | |
| Transamerica First Quadrant Global Macro ‡ | | | 5,957,134 | | | | 34,671 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 5,842,090 | | | | 62,919 | |
| Transamerica JPMorgan Long/Short Strategy ‡ | | | 3,306,745 | | | | 25,991 | |
| Transamerica Loomis Sayles Bond | | | 5,609,895 | | | | 59,521 | |
U.S. Stocks — 35.9% | | | | | | | | |
| Transamerica BlackRock Large Cap Value | | | 26,264,068 | | | | 233,225 | |
| Transamerica Jennison Growth | | | 18,277,592 | | | | 236,513 | |
| Transamerica JPMorgan Mid Cap Value | | | 6,818,717 | | | | 74,529 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 3,826,430 | | | | 43,736 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 4,145,249 | | | | 54,178 | |
| Transamerica Morgan Stanley Small Company Growth | | | 2,233,082 | | | | 25,747 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 5,495,104 | | | | 52,423 | |
| Transamerica Third Avenue Value | | | 3,777,354 | | | | 78,342 | |
| Transamerica WMC Diversified Equity | | | 8,373,574 | | | | 123,343 | |
| Transamerica WMC Diversified Growth ‡ | | | 14,481,484 | | | | 140,470 | |
| | | | | | | | |
Total Investment Companies (cost $2,714,108) П | | | | | | | 2,972,510 | |
| Other Assets and Liabilities — Net | | | | | | | (4,942 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 2,967,568 | |
| | | | | | | | |
NOTES TO THE SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| л | | The fund invests its assets in the Class I2 shares of the affiliated Transamerica Funds. |
| |
| ‡ | | Non-income producing security. |
| |
| П | | Aggregate cost for federal income tax purposes is $2,743,732. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $275,102 and $46,324, respectively. Net unrealized appreciation for tax purposes is $228,778. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Investment Companies | | $ | 2,972,510 | | | $ | — | | | $ | — | | | $ | 2,972,510 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 24 | | Annual Report 2011 |
Transamerica Asset Allocation — Moderate Portfolio
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
INVESTMENT COMPANIES — 100.1% л | | | | | | | | |
Bonds — 33.1% | | | | | | | | |
| Transamerica AEGON Flexible Income | | | 4,929,192 | | | $ | 43,673 | |
| Transamerica AEGON High Yield Bond | | | 9,779,433 | | | | 88,210 | |
| Transamerica AEGON Short-Term Bond | | | 11,524,266 | | | | 116,856 | |
| Transamerica JPMorgan Core Bond | | | 13,322,433 | | | | 141,218 | |
| Transamerica JPMorgan International Bond | | | 4,692,958 | | | | 52,749 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 3,002,208 | | | | 32,274 | |
| Transamerica PIMCO Total Return | | | 22,698,695 | | | | 236,520 | |
Capital Markets — 14.4% | | | | | | | | |
| Transamerica ICAP Select Equity | | | 9,180,562 | | | | 93,917 | |
| Transamerica Logan Circle Emerging Markets Debt | | | 1,535,915 | | | | 15,375 | |
| Transamerica Morgan Stanley Capital Growth ‡ | | | 3,273,851 | | | | 35,914 | |
| Transamerica Water Island Arbitrage Strategy ‡ | | | 2,719,331 | | | | 27,873 | |
| Transamerica WMC Quality Value | | | 13,215,706 | | | | 136,386 | |
Capital Preservation — 0.2% | | | | | | | | |
| Transamerica AEGON Money Market | | | 4,278,474 | | | | 4,278 | |
Global/International Stocks — 5.8% | | | | | | | | |
| Transamerica Hansberger International Value | | | 1,046,750 | | | | 7,202 | |
| Transamerica MFS International Equity | | | 2,318,824 | | | | 19,339 | |
| Transamerica Neuberger Berman International | | | 1,868,465 | | | | 15,882 | |
| Transamerica Oppenheimer Developing Markets | | | 2,473,622 | | | | 30,351 | |
| Transamerica Schroders International Small Cap | | | 2,038,010 | | | | 18,342 | |
| Transamerica Thornburg International Value | | | 1,545,277 | | | | 15,916 | |
| Transamerica WMC Emerging Markets | | | 1,516,244 | | | | 17,801 | |
Inflation-Protected Securities — 5.3% | | | | | | | | |
| Transamerica PIMCO Real Return TIPS | | | 9,940,245 | | | | 113,816 | |
Tactical and Specialty — 13.4% | | | | | | | | |
| Transamerica AQR Managed Futures Strategy | | | 5,898,897 | | | | 55,096 | |
| Transamerica BlackRock Global Allocation | | | 4,044,880 | | | | 44,453 | |
| Transamerica Clarion Global Real Estate Securities | | | 1,535,626 | | | | 17,875 | |
| Transamerica First Quadrant Global Macro ‡ | | | 4,469,712 | | | | 26,014 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 3,250,418 | | | | 35,007 | |
| Transamerica JPMorgan Long/Short Strategy ‡ | | | 2,485,040 | | | | 19,532 | |
| Transamerica Loomis Sayles Bond | | | 8,588,985 | | | | 91,129 | |
U.S. Stocks — 27.9% | | | | | | | | |
| Transamerica BlackRock Large Cap Value | | | 12,061,125 | | | | 107,102 | |
| Transamerica Jennison Growth | | | 11,126,007 | | | | 143,970 | |
| Transamerica JPMorgan Mid Cap Value | | | 3,663,568 | | | | 40,043 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 3,664,802 | | | | 41,889 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 2,280,330 | | | | 29,804 | |
| Transamerica Morgan Stanley Small Company Growth | | | 1,371,357 | | | | 15,812 | |
| Transamerica Oppenheimer Small- & Mid- Cap Value | | | 3,044,670 | | | | 29,046 | |
| Transamerica Third Avenue Value | | | 1,795,842 | | | | 37,246 | |
| Transamerica WMC Diversified Equity | | | 4,128,707 | | | | 60,816 | |
| Transamerica WMC Diversified Growth ‡ | | | 9,740,102 | | | | 94,479 | |
| | | | | | | | |
| Total Investment Companies (cost $1,978,679) П | | | | | | | 2,153,205 | |
| Other Assets and Liabilities — Net | | | | | | | (2,408 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 2,150,797 | |
| | | | | | | | |
NOTES TO THE SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| л | | The fund invests its assets in the Class I2 shares of the affiliated Transamerica Funds. |
| |
| ‡ | | Non-income producing security. |
| |
| П | | Aggregate cost for federal income tax purposes is $1,989,998. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $191,663 and $28,456, respectively. Net unrealized appreciation for tax purposes is $163,207. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Investment Companies | | $ | 2,153,205 | | | $ | — | | | $ | — | | | $ | 2,153,205 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 25 | | Annual Report 2011 |
Transamerica Multi-Manager Alternative Strategies Portfolio
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
INVESTMENT COMPANIES — 99.7% л | | | | | | | | |
Bonds — 11.1% | | | | | | | | |
| Transamerica AEGON High Yield Bond | | | 3,275,422 | | | $ | 29,544 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 1,738,577 | | | | 18,690 | |
Capital Markets — 11.4% | | | | | | | | |
| Transamerica Logan Circle Emerging Markets Debt | | | 772,975 | | | | 7,737 | |
| Transamerica Water Island Arbitrage Strategy ‡ | | | 4,086,085 | | | | 41,883 | |
Capital Preservation — 0.5% | | | | | | | | |
| Transamerica AEGON Money Market | | | 1,952,365 | | | | 1,952 | |
Inflation-Protected Securities — 5.5% | | | | | | | | |
| Transamerica PIMCO Real Return TIPS | | | 2,085,048 | | | | 23,874 | |
Tactical and Specialty — 71.2% | | | | | | | | |
| Transamerica AQR Managed Futures Strategy | | | 6,099,333 | | | | 56,968 | |
| Transamerica BlackRock Global Allocation | | | 3,819,142 | | | | 41,972 | |
| Transamerica Clarion Global Real Estate Securities | | | 2,338,506 | | | | 27,220 | |
| Transamerica First Quadrant Global Macro ‡ | | | 7,356,242 | | | | 42,813 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 3,432,306 | | | | 36,966 | |
| Transamerica JPMorgan Long/Short Strategy ‡ | | | 5,558,370 | | | | 43,689 | |
| Transamerica Loomis Sayles Bond | | | 5,550,082 | | | | 58,887 | |
| | | | | | | | |
Total Investment Companies (cost $443,893) | | | | | | | 432,195 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 0.0% ∞ | | | | | | | | |
| State Street Bank & Trust Co. | | | | | | | | |
0.03% ▲, dated 10/31/2011, to be repuchased at $50 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a total value of $53 | | $ | 50 | | | | 50 | |
Total Repurchase Agreement (cost $50) | | | | | | | | |
| |
| | | | | | | | |
| Total Investment Securities (cost $443,943) П | | | | | | | 432,245 | |
| Other Assets and Liabilities — Net | | | | | | | 1,200 | |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 433,445 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| л | | The fund invests its assets in the Class I2 shares of the affiliated Transamerica Funds. |
| |
| ‡ | | Non-income producing security. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $447,138. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $2,456 and $17,349, respectively. Net unrealized depreciation for tax purposes is $14,893. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Investment Companies | | $ | 432,195 | | | $ | — | | | $ | — | | | $ | 432,195 | |
| Repurchase Agreement | | | — | | | | 50 | | | | — | | | | 50 | |
Total | | $ | 432,195 | | | $ | 50 | | | $ | — | | | $ | 432,245 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 26 | | Annual Report 2011 |
Transamerica Multi-Manager International Portfolio
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
INVESTMENT COMPANIES — 100.2% л | | | | | | | | |
Capital Preservation — 1.1% | | | | | | | | |
| Transamerica AEGON Money Market | | | 3,029,348 | | �� | $ | 3,029 | |
Global/International Stocks — 91.0% | | | | | | | | |
| Transamerica Hansberger International Value | | | 3,882,813 | | | | 26,714 | |
| Transamerica MFS International Equity | | | 5,338,980 | | | | 44,527 | |
| Transamerica Neuberger Berman International | | | 3,839,602 | | | | 32,637 | |
| Transamerica Oppenheimer Developing Markets | | | 3,196,954 | | | | 39,227 | |
| Transamerica Schroders International Small Cap | | | 4,263,007 | | | | 38,367 | |
| Transamerica Thornburg International Value | | | 4,277,567 | | | | 44,059 | |
| Transamerica WMC Emerging Markets | | | 2,343,544 | | | | 27,513 | |
Tactical and Specialty — 8.1% | | | | | | | | |
| Transamerica BlackRock Global Allocation | | | 1,358,088 | | | | 14,925 | |
| Transamerica Clarion Global Real Estate Securities | | | 661,433 | | | | 7,699 | |
| | | | | | | | |
| Total Investment Companies (cost $290,634) П | | | | | | | 278,697 | |
| Other Assets and Liabilities — Net | | | | | | | (648 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 278,049 | |
| | | | | | | | |
NOTES TO THE SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| л | | The fund invests its assets in the Class I2 shares of the affiliated Transamerica Funds. |
| |
| П | | Aggregate cost for federal income tax purposes is $292,206. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $16,055 and $29,564, respectively. Net unrealized depreciation for tax purposes is $13,509. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Investment Companies | | $ | 278,697 | | | $ | — | | | $ | — | | | $ | 278,697 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 27 | | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica | | | | | | | | | | |
| | | Transamerica | | | Transamerica | | | Asset | | | Transamerica | | | Transamerica | | | | |
| | | Asset | | | Asset | | | Allocation - | | | Asset | | | Multi-Manager | | | Transamerica | |
| | | Allocation - | | | Allocation - | | | Moderate | | | Allocation - | | | Alternative | | | Multi-Manager | |
| | | Conservative | | | Growth | | | Growth | | | Moderate | | | Strategies | | | International | |
| | | Portfolio | | | Portfolio | | | Portfolio | | | Portfolio | | | Portfolio | | | Portfolio | |
| | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in affiliated investment companies, at value | | $ | 1,165,803 | | | $ | 1,455,614 | | | $ | 2,972,510 | | | $ | 2,153,205 | | | $ | 432,195 | | | $ | 278,697 | |
| Repurchase agreement, at value | | | — | | | | 10 | | | | — | | | | — | | | | 50 | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated investment securities sold | | | 217 | | | | 1,988 | | | | 266 | | | | 1,200 | | | | — | | | | 381 | |
| Shares of beneficial interest sold | | | 3,457 | | | | 842 | | | | 4,414 | | | | 2,857 | | | | 3,635 | | | | 336 | |
| Dividends | | | 125 | | | | — | | | | 29 | | | | 203 | | | | — | (A) | | | — | (A) |
| Other | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Prepaid expenses | | | 2 | | | | 3 | | | | 6 | | | | 4 | | | | — | | | | 1 | |
| | | |
| | | $ | 1,169,604 | | | $ | 1,458,457 | | | $ | 2,977,225 | | | $ | 2,157,469 | | | $ | 435,880 | | | $ | 279,415 | |
| | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliated investment securities purchased | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,123 | | | $ | — | |
| Shares of beneficial interest redeemed | | | 2,972 | | | | 3,995 | | | | 6,987 | | | | 4,809 | | | | 951 | | | | 1,103 | |
| Management and advisory fees | | | 97 | | | | 119 | | | | 245 | | | | 179 | | | | 72 | | | | 20 | |
| Distribution and service fees | | | 695 | | | | 855 | | | | 1,795 | | | | 1,288 | | | | 167 | | | | 142 | |
| Trustees fees | | | 5 | | | | 6 | | | | 12 | | | | 8 | | | | 2 | | | | 1 | |
| Transfer agent fees | | | 103 | | | | 212 | | | | 324 | | | | 192 | | | | 44 | | | | 39 | |
| Administration fees | | | 12 | | | | 15 | | | | 31 | | | | 22 | | | | 4 | | | | 3 | |
| Other | | | 99 | | | | 159 | | | | 263 | | | | 174 | | | | 72 | | | | 58 | |
| | | |
| | | $ | 3,983 | | | $ | 5,361 | | | $ | 9,657 | | | $ | 6,672 | | | $ | 2,435 | | | $ | 1,366 | |
| | | |
Net assets | | $ | 1,165,621 | | | $ | 1,453,096 | | | $ | 2,967,568 | | | $ | 2,150,797 | | | $ | 433,445 | | | $ | 278,049 | |
| | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | | 1,116,315 | | | | 1,542,773 | | | | 3,034,785 | | | | 2,068,229 | | | | 451,910 | | | | 382,909 | |
| Undistributed (accumulated) net investment income (loss) | | | 421 | | | | 2,302 | | | | 5,889 | | | | 13,387 | | | | 3,302 | | | | 1,277 | |
| Undistributed (accumulated) net realized gain (loss) from investments in affiliated investment companies | | | (30,842 | ) | | | (253,431 | ) | | | (331,508 | ) | | | (105,345 | ) | | | (10,069 | ) | | | (94,200 | ) |
| Net unrealized appreciation (depreciation) on investments in affiliated investment companies | | | 79,727 | | | | 161,452 | | | | 258,402 | | | | 174,526 | | | | (11,698 | ) | | | (11,937 | ) |
| | | |
Net assets | | $ | 1,165,621 | | | $ | 1,453,096 | | | $ | 2,967,568 | | | $ | 2,150,797 | | | $ | 433,445 | | | $ | 278,049 | |
| | | |
Net assets by class: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 489,240 | | | $ | 610,951 | | | $ | 1,186,790 | | | $ | 877,866 | | | $ | 171,567 | | | $ | 118,070 | |
| Class B | | | 80,696 | | | | 140,909 | | | | 283,905 | | | | 152,538 | | | | | | | | 13,373 | |
| Class C | | | 578,193 | | | | 682,872 | | | | 1,468,164 | | | | 1,088,747 | | | | 141,413 | | | | 117,858 | |
| Class I | | | 15,067 | | | | 14,642 | | | | 23,403 | | | | 26,332 | | | | 120,465 | | | | 28,748 | |
| Class R | | | 2,425 | | | | 3,722 | | | | 5,306 | | | | 5,314 | | | | | | | | | |
Shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 43,814 | | | | 53,149 | | | | 102,712 | | | | 75,650 | | | | 17,729 | | | | 12,982 | |
| Class B | | | 7,261 | | | | 12,579 | | | | 24,679 | | | | 13,177 | | | | | | | | 1,485 | |
| Class C | | | 52,114 | | | | 60,955 | | | | 128,005 | | | | 94,550 | | | | 14,751 | | | | 13,085 | |
| Class I | | | 1,347 | | | | 1,270 | | | | 2,022 | | | | 2,265 | | | | 12,419 | | | | 3,156 | |
| Class R | | | 216 | | | | 327 | | | | 462 | | | | 460 | | | | | | | | | |
Net asset value per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 11.17 | | | $ | 11.49 | | | $ | 11.55 | | | $ | 11.60 | | | $ | 9.68 | | | $ | 9.09 | |
| Class B | | | 11.11 | | | | 11.20 | | | | 11.50 | | | | 11.58 | | | | | | | | 9.00 | |
| Class C | | | 11.09 | | | | 11.20 | | | | 11.47 | | | | 11.52 | | | | 9.59 | | | | 9.01 | |
| Class I | | | 11.19 | | | | 11.53 | | | | 11.58 | | | | 11.63 | | | | 9.70 | | | | 9.11 | |
| Class R | | | 11.24 | | | | 11.39 | | | | 11.50 | | | | 11.54 | | | | | | | | | |
Maximum offering price per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 11.82 | | | $ | 12.16 | | | $ | 12.22 | | | $ | 12.28 | | | $ | 10.24 | | | $ | 9.62 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Investments in affiliated investment companies, at cost | | $ | 1,086,076 | | | $ | 1,294,162 | | | $ | 2,714,108 | | | $ | 1,978,679 | | | $ | 443,893 | | | $ | 290,634 | |
| | | |
Repurchase agreement, at cost | | $ | — | | | $ | 10 | | | $ | — | | | $ | — | | | $ | 50 | | | $ | — | |
| | | |
| | |
| (A) | | Amount rounds to less than $1. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 28 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS
For the year October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Transamerica | | | | |
| | | Transamerica | | | Transamerica | | | Transamerica | | | Transamerica | | | Multi-Manager | | | Transamerica | |
| | | Asset Allocation | | | Asset Allocation | | | Asset Allocation | | | Asset Allocation | | | Alternative | | | Multi-Manager | |
| | | - Conservative | | | - Growth | | | - Moderate | | | - Moderate | | | Strategies | | | International | |
| | | Portfolio | | | Portfolio | | | Growth Portfolio | | | Portfolio | | | Portfolio | | | Portfolio | |
| | | |
Investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividend income from affiliated investment companies | | $ | 39,240 | | | $ | 20,734 | | | $ | 72,268 | | | $ | 65,000 | | | $ | 8,026 | | | $ | 4,801 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 1,204 | | | | 1,625 | | | | 3,238 | | | | 2,275 | | | | 717 | | | | 326 | |
| Distribution and service: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,733 | | | | 2,337 | | | | 4,392 | | | | 3,156 | | | | 540 | | | | 483 | |
| Class B | | | 982 | | | | 1,707 | | | | 3,475 | | | | 1,915 | | | | | | | | 166 | |
| Class C | | | 5,956 | | | | 7,671 | | | | 16,082 | | | | 11,542 | | | | 1,290 | | | | 1,403 | |
| Class R | | | 14 | | | | 20 | | | | 29 | | | | 24 | | | | | | | | | |
| Transfer agent: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 649 | | | | 1,186 | | | | 1,675 | | | | 1,056 | | | | 214 | | | | 207 | |
| Class B | | | 124 | | | | 363 | | | | 582 | | | | 280 | | | | | | | | 52 | |
| Class C | | | 432 | | | | 1,099 | | | | 1,749 | | | | 955 | | | | 191 | | | | 243 | |
| Class I | | | 15 | | | | 18 | | | | 26 | | | | 28 | | | | 93 | | | | 38 | |
| Class R | | | 7 | | | | 7 | | | | 8 | | | | 8 | | | | | | | | | |
| Printing and shareholder reports | | | 101 | | | | 240 | | | | 388 | | | | 219 | | | | 85 | | | | 70 | |
| Custody | | | 45 | | | | 53 | | | | 95 | | | | 71 | | | | 15 | | | | 15 | |
| Administration | | | 150 | | | | 203 | | | | 405 | | | | 284 | | | | 45 | | | | 41 | |
| Legal | | | 46 | | | | 60 | | | | 121 | | | | 86 | | | | 15 | | | | 12 | |
| Audit and tax | | | 17 | | | | 18 | | | | 20 | | | | 19 | | | | 17 | | | | 17 | |
| Trustees | | | 22 | | | | 30 | | | | 59 | | | | 41 | | | | 7 | | | | 6 | |
| Registration | | | 104 | | | | 105 | | | | 132 | | | | 121 | | | | 75 | | | | 62 | |
| Other | | | 22 | | | | 29 | | | | 56 | | | | 40 | | | | 7 | | | | 7 | |
| | | |
| Total expenses | | | 11,623 | | | | 16,771 | | | | 32,532 | | | | 22,120 | | | | 3,311 | | | | 3,148 | |
| | | |
| Reimbursement of class expenses Class B | | | — | | | | — | | | | — | | | | — | | | | — | | | | (6 | ) |
| | | |
| Total reimbursed expenses | | | — | | | | — | | | | — | | | | — | | | | — | | | | (6 | ) |
| | | |
| Net expenses | | | 11,623 | | | | 16,771 | | | | 32,532 | | | | 22,120 | | | | 3,311 | | | | 3,142 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 27,617 | | | | 3,963 | | | | 39,736 | | | | 42,880 | | | | 4,715 | | | | 1,659 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain (loss) on investments in affiliated investment companies: | | | | | | | | | | | | | | | | | | | | | | | | |
| Realized gain (loss) from investments in affiliated investment companies | | | 646 | | | | (38,928 | ) | | | (77,373 | ) | | | (30,838 | ) | | | (1,333 | ) | | | (3,718 | ) |
| Realized gain distributions from investments in affiliated investment companies | | | 10,656 | | | | 4,760 | | | | 19,999 | | | | 18,256 | | | | 1,848 | | | | 3,903 | |
| | | |
| Net realized gain (loss) | | | 11,302 | | | | (34,168 | ) | | | (57,374 | ) | | | (12,582 | ) | | | 515 | | | | 185 | |
| | | |
| Increase (decrease) in unrealized appreciation (depreciation) on investments in affiliated investment companies | | | (16,757 | ) | | | 57,335 | | | | 48,265 | | | | 10,813 | | | | (12,134 | ) | | | (24,184 | ) |
| | | |
Net realized and change in unrealized gain (loss) on investments in affiliated investment companies | | | (5,455 | ) | | | 23,167 | | | | (9,109 | ) | | | (1,769 | ) | | | (11,619 | ) | | | (23,999 | ) |
| | | |
Net increase (decrease) In net assets resulting from operations | | $ | 22,162 | | | $ | 27,130 | | | $ | 30,627 | | | $ | 41,111 | | | $ | (6,904 | ) | | $ | (22,340 | ) |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 29 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - | | | Transamerica Asset Allocation - | | | Transamerica Asset Allocation - | |
| | | Conservative Portfolio | | | Growth Portfolio | | | Moderate Growth Portfolio | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 27,617 | | | $ | 32,332 | | | $ | 3,963 | | | $ | 1,434 | | | $ | 39,736 | | | $ | 43,880 | |
| Net realized gain (loss) on investments in affiliated investment companies | | | 11,302 | | | | (1,945 | ) | | | (34,168 | ) | | | (25,258 | ) | | | (57,374 | ) | | | (27,805 | ) |
| Net change in unrealized appreciation (depreciation) on investments in affiliated investment companies | | | (16,757 | ) | | | 86,682 | | | | 57,335 | | | | 244,132 | | | | 48,265 | | | | 381,444 | |
| | | |
Net increase in net assets resulting from operations | | | 22,162 | | | | 117,069 | | | | 27,130 | | | | 220,308 | | | | 30,627 | | | | 397,519 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (12,895 | ) | | | (14,142 | ) | | | (2,961 | ) | | | (5,402 | ) | | | (17,502 | ) | | | (23,955 | ) |
| Class B | | | (2,083 | ) | | | (3,351 | ) | | | — | | | | (552 | ) | | | (2,633 | ) | | | (6,248 | ) |
| Class C | | | (12,537 | ) | | | (15,609 | ) | | | — | | | | (2,866 | ) | | | (13,326 | ) | | | (25,214 | ) |
| Class I | | | (351 | ) | | | (117 | ) | | | (118 | ) | | | (1 | ) | | | (311 | ) | | | (1 | ) |
| Class R | | | (70 | ) | | | (57 | ) | | | (15 | ) | | | (22 | ) | | | (75 | ) | | | (83 | ) |
| | | |
| | | | (27,936 | ) | | | (33,276 | ) | | | (3,094 | ) | | | (8,843 | ) | | | (33,847 | ) | | | (55,501 | ) |
| | | |
| From return of capital: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | — | | | | — | | | | (2,948 | ) |
| Class B | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,092 | ) |
| Class C | | | — | | | | — | | | | — | | | | — | | | | — | | | | (4,213 | ) |
| Class I | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1 | ) |
| Class R | | | — | | | | — | | | | — | | | | — | | | | — | | | | (10 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | (8,264 | ) |
| | | |
Total distributions to shareholders | | | (27,936 | ) | | | (33,276 | ) | | | (3,094 | ) | | | (8,843 | ) | | | (33,847 | ) | | | (63,765 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 120,880 | | | | 193,284 | | | | 109,105 | | | | 125,705 | | | | 207,685 | | | | 246,315 | |
| Class B | | | 4,193 | | | | 24,305 | | | | 4,441 | | | | 13,404 | | | | 7,642 | | | | 33,918 | |
| Class C | | | 128,569 | | | | 184,037 | | | | 90,581 | | | | 96,270 | | | | 220,453 | | | | 253,627 | |
| Class I | | | 8,692 | | | | 12,648 | | | | 6,839 | | | | 15,205 | | | | 14,825 | | | | 18,965 | |
| Class R | | | 1,155 | | | | 2,060 | | | | 1,067 | | | | 1,666 | | | | 2,072 | | | | 3,710 | |
| | | |
| | | | 263,489 | | | | 416,334 | | | | 212,033 | | | | 252,250 | | | | 452,677 | | | | 556,535 | |
| | | |
| Dividends and distributions reinvested: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 11,905 | | | | 12,789 | | | | 2,805 | | | | 5,055 | | | | 16,525 | | | | 25,110 | |
| Class B | | | 1,667 | | | | 2,696 | | | | — | | | | 492 | | | | 2,389 | | | | 6,616 | |
| Class C | | | 9,441 | | | | 11,411 | | | | — | | | | 2,339 | | | | 10,584 | | | | 22,934 | |
| Class I | | | 124 | | | | 22 | | | | 69 | | | | 1 | | | | 141 | | | | 2 | |
| Class R | | | 51 | | | | 48 | | | | 12 | | | | 18 | | | | 54 | | | | 74 | |
| | | |
| | | | 23,188 | | | | 26,966 | | | | 2,886 | | | | 7,905 | | | | 29,693 | | | | 54,736 | |
| | | |
| Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (142,522 | ) | | | (119,079 | ) | | | (170,151 | ) | | | (149,631 | ) | | | (276,893 | ) | | | (250,198 | ) |
| Class B | | | (23,572 | ) | | | (27,891 | ) | | | (35,823 | ) | | | (39,788 | ) | | | (70,998 | ) | | | (80,243 | ) |
| Class C | | | (158,188 | ) | | | (123,816 | ) | | | (194,816 | ) | | | (189,424 | ) | | | (367,790 | ) | | | (351,422 | ) |
| Class I | | | (4,425 | ) | | | (2,389 | ) | | | (5,399 | ) | | | (2,585 | ) | | | (7,575 | ) | | | (3,478 | ) |
| Class R | | | (1,850 | ) | | | (731 | ) | | | (1,180 | ) | | | (1,026 | ) | | | (2,206 | ) | | | (1,716 | ) |
| | | |
| | | | (330,557 | ) | | | (273,906 | ) | | | (407,369 | ) | | | (382,454 | ) | | | (725,462 | ) | | | (687,057 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 15,890 | | | | 4,985 | | | | 15,759 | | | | 6,944 | | | | 40,728 | | | | 13,017 | |
| Class B | | | (15,890 | ) | | | (4,985 | ) | | | (15,759 | ) | | | (6,944 | ) | | | (40,728 | ) | | | (13,017 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (43,880 | ) | | | 169,394 | | | | (192,450 | ) | | | (122,299 | ) | | | (243,092 | ) | | | (75,786 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net increase (decrease) in net assets | | | (49,654 | ) | | | 253,187 | | | | (168,414 | ) | | | 89,166 | | | | (246,312 | ) | | | 257,968 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 1,215,275 | | | $ | 962,088 | | | $ | 1,621,510 | | | $ | 1,532,344 | | | $ | 3,213,880 | | | $ | 2,955,912 | |
| | | |
| End of year | | $ | 1,165,621 | | | $ | 1,215,275 | | | $ | 1,453,096 | | | $ | 1,621,510 | | | $ | 2,967,568 | | | $ | 3,213,880 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 421 | | | $ | 740 | | | $ | 2,302 | | | $ | 1,433 | | | $ | 5,889 | | | $ | — | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 30 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica
Asset Allocation - | | | Transamerica
Asset Allocation - | | | Transamerica
Asset Allocation - | |
| | | Conservative Portfolio | | | Growth Portfolio | | | Moderate Growth Portfolio | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 10,680 | | | | 18,127 | | | | 9,083 | | | | 11,870 | | | | 17,330 | | | | 22,775 | |
| Class B | | | 374 | | | | 2,300 | | | | 378 | | | | 1,302 | | | | 639 | | | | 3,140 | |
| Class C | | | 11,414 | | | | 17,370 | | | | 7,687 | | | | 9,258 | | | | 18,447 | | | | 23,452 | |
| Class I | | | 767 | | | | 1,181 | | | | 567 | | | | 1,398 | | | | 1,247 | | | | 1,723 | |
| Class R | | | 101 | | | | 191 | | | | 90 | | | | 157 | | | | 173 | | | | 343 | |
| | | |
| | | | 23,336 | | | | 39,169 | | | | 17,805 | | | | 23,985 | | | | 37,836 | | | | 51,433 | |
| | | |
| Shares issued-reinvested from distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,065 | | | | 1,215 | | | | 237 | | | | 488 | | | | 1,409 | | | | 2,378 | |
| Class B | | | 150 | | | | 258 | | | | — | | | | 49 | | | | 203 | | | | 626 | |
| Class C | | | 850 | | | | 1,092 | | | | — | | | | 230 | | | | 905 | | | | 2,176 | |
| Class I | | | 11 | | | | 2 | | | | 6 | | | | — | (A) | | | 12 | | | | — | (A) |
| Class R | | | 5 | | | | 4 | | | | 1 | | | | 2 | | | | 5 | | | | 7 | |
| | | |
| | | | 2,081 | | | | 2,571 | | | | 244 | | | | 769 | | | | 2,534 | | | | 5,187 | |
| | | |
| Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (12,591 | ) | | | (11,138 | ) | | | (14,322 | ) | | | (14,114 | ) | | | (23,275 | ) | | | (23,092 | ) |
| Class B | | | (2,085 | ) | | | (2,622 | ) | | | (3,055 | ) | | | (3,847 | ) | | | (5,948 | ) | | | (7,439 | ) |
| Class C | | | (14,060 | ) | | | (11,645 | ) | | | (16,611 | ) | | | (18,320 | ) | | | (30,978 | ) | | | (32,671 | ) |
| Class I | | | (393 | ) | | | (221 | ) | | | (454 | ) | | | (247 | ) | | | (640 | ) | | | (320 | ) |
| Class R | | | (161 | ) | | | (68 | ) | | | (98 | ) | | | (99 | ) | | | (185 | ) | | | (158 | ) |
| | | |
| | | | (29,290 | ) | | | (25,694 | ) | | | (34,540 | ) | | | (36,627 | ) | | | (61,026 | ) | | | (63,680 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,400 | | | | 467 | | | | 1,322 | | | | 685 | | | | 3,431 | | | | 1,217 | |
| Class B | | | (1,407 | ) | | | (469 | ) | | | (1,353 | ) | | | (700 | ) | | | (3,438 | ) | | | (1,221 | ) |
| | | |
| | | | (7 | ) | | | (2 | ) | | | (31 | ) | | | (15 | ) | | | (7 | ) | | | (4 | ) |
| | | |
Net increase (decrease) in shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| Class A | | | 554 | | | | 8,671 | | | | (3,680 | ) | | | (1,071 | ) | | | (1,105 | ) | | | 3,278 | |
| Class B | | | (2,968 | ) | | | (533 | ) | | | (4,030 | ) | | | (3,196 | ) | | | (8,544 | ) | | | (4,894 | ) |
| Class C | | | (1,796 | ) | | | 6,817 | | | | (8,924 | ) | | | (8,832 | ) | | | (11,626 | ) | | | (7,043 | ) |
| Class I | | | 385 | | | | 962 | | | | 119 | | | | 1,151 | | | | 619 | | | | 1,403 | |
| Class R | | | (55 | ) | | | 127 | | | | (7 | ) | | | 60 | | | | (7 | ) | | | 192 | |
| | | |
| | | | (3,880 | ) | | | 16,044 | | | | (16,522 | ) | | | (11,888 | ) | | | (20,663 | ) | | | (7,064 | ) |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 31 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica
Asset Allocation - | | | Transamerica
Multi-Manager | | | Transamerica
Multi-Manager | |
| | | Moderate Portfolio | | | Alternative Strategies Portfolio | | | International Portfolio | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 42,880 | | | $ | 50,560 | | | $ | 4,715 | | | $ | 2,810 | | | $ | 1,659 | | | $ | 1,765 | |
| Net realized gain (loss) on investments in affiliated investment companies | | | (12,582 | ) | | | (13,194 | ) | | | 515 | | | | (3,854 | ) | | | 185 | | | | (5,519 | ) |
| Net change in unrealized appreciation (depreciation) on investments in affiliated investment companies | | | 10,813 | | | | 207,046 | | | | (12,134 | ) | | | 18,655 | | | | (24,184 | ) | | | 49,428 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | 41,111 | | | | 244,412 | | | | (6,904 | ) | | | 17,611 | | | | (22,340 | ) | | | 45,674 | |
| | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (17,338 | ) | | | (24,791 | ) | | | (884 | ) | | | (1,911 | ) | | | (1,063 | ) | | | (1,770 | ) |
| Class B | | | (2,599 | ) | | | (6,406 | ) | | | | | | | | | | | (2 | ) | | | (109 | ) |
| Class C | | | (16,101 | ) | | | (29,833 | ) | | | (101 | ) | | | (940 | ) | | | (264 | ) | | | (850 | ) |
| Class I | | | (434 | ) | | | (2 | ) | | | (428 | ) | | | — | (B) | | | (367 | ) | | | (1 | ) |
| Class R | | | (83 | ) | | | (70 | ) | | | | | | | | | | | | | | | | |
| | | |
| | | | (36,555 | ) | | | (61,102 | ) | | | (1,413 | ) | | | (2,851 | ) | | | (1,696 | ) | | | (2,730 | ) |
| | | |
| From return of capital: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | (1,343 | ) | | | — | | | | — | |
| Class C | | | — | | | | — | | | | — | | | | (1,086 | ) | | | — | | | | — | |
| Class I | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | — | |
| | | |
| | | | — | | | | — | | | | — | | | | (2,430 | ) | | | — | | | | — | |
| | | |
Total distributions to shareholders | | | (36,555 | ) | | | (61,102 | ) | | | (1,413 | ) | | | (5,281 | ) | | | (1,696 | ) | | | (2,730 | ) |
| | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 184,563 | | | | 248,423 | | | | 108,121 | | | | 67,804 | | | | 37,207 | | | | 51,313 | |
| Class B | | | 4,936 | | | | 25,374 | | | | | | | | | | | | 588 | | | | 2,837 | |
| Class C | | | 200,075 | | | | 259,484 | | | | 62,110 | | | | 40,726 | | | | 18,319 | | | | 26,373 | |
| Class I | | | 15,868 | | | | 21,255 | | | | 118,372 | | | | 39,015 | | | | 21,249 | | | | 33,995 | |
| Class R | | | 2,487 | | | | 2,988 | | | | | | | | | | | | | | | | | |
| | | |
| | | | 407,929 | | | | 557,524 | | | | 288,603 | | | | 147,545 | | | | 77,363 | | | | 114,518 | |
| | | |
| Dividends and distributions reinvested: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 16,143 | | | | 22,613 | | | | 777 | | | | 2,646 | | | | 961 | | | | 1,359 | |
| Class B | | | 2,297 | | | | 5,572 | | | | | | | | | | | | 2 | | | | 90 | |
| Class C | | | 12,286 | | | | 22,219 | | | | 82 | | | | 1,636 | | | | 197 | | | | 629 | |
| Class I | | | 225 | | | | 2 | | | | 240 | | | | 1 | | | | 93 | | | | 1 | |
| Class R | | | 49 | | | | 46 | | | | | | | | | | | | | | | | | |
| | | |
| | | | 31,000 | | | | 50,452 | | | | 1,099 | | | | 4,283 | | | | 1,253 | | | | 2,079 | |
| | | |
| Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (216,548 | ) | | | (187,717 | ) | | | (62,089 | ) | | | (68,188 | ) | | | (45,790 | ) | | | (71,349 | ) |
| Class B | | | (41,778 | ) | | | (48,268 | ) | | | | | | | | | | | (3,842 | ) | | | (4,354 | ) |
| Class C | | | (267,702 | ) | | | (230,064 | ) | | | (32,869 | ) | | | (29,264 | ) | | | (35,689 | ) | | | (34,194 | ) |
| Class I | | | (7,433 | ) | | | (4,349 | ) | | | (29,816 | ) | | | (5,941 | ) | | | (18,017 | ) | | | (8,375 | ) |
| Class R | | | (1,514 | ) | | | (1,261 | ) | | | | | | | | | | | | | | | | |
| | | |
| | | | (534,975 | ) | | | (471,659 | ) | | | (124,774 | ) | | | (103,393 | ) | | | (103,338 | ) | | | (118,272 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 35,441 | | | | 9,392 | | | | — | | | | — | | | | 746 | | | | 603 | |
| Class B | | | (35,441 | ) | | | (9,392 | ) | | | | | | | | | | | (746 | ) | | | (603 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (96,046 | ) | | | 136,317 | | | | 164,928 | | | | 48,435 | | | | (24,722 | ) | | | (1,675 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net increase (decrease) in net assets | | | (91,490 | ) | | | 319,627 | | | | 156,611 | | | | 60,765 | | | | (48,758 | ) | | | 41,269 | |
| | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 2,242,287 | | | $ | 1,922,660 | | | $ | 276,834 | | | $ | 216,069 | | | $ | 326,807 | | | $ | 285,538 | |
| | | |
| End of year | | $ | 2,150,797 | | | $ | 2,242,287 | | | $ | 433,445 | | | $ | 276,834 | | | $ | 278,049 | | | $ | 326,807 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 13,387 | | | $ | 7,062 | | | $ | 3,302 | | | $ | — | | | $ | 1,277 | | | $ | 1,314 | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 32 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - | | | Transamerica Multi-Manager | | | Transamerica Multi-Manager | |
| | | Moderate Portfolio | | | Alternative Strategies Portfolio | | | International Portfolio | |
| | | October 31, 2011 October 31, 2010 | | | October 31, 2011 October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 15,643 | | | | 22,832 | | | | 10,915 | | | | 7,180 | | | | 3,714 | | | | 5,798 | |
| Class B | | | 418 | | | | 2,338 | | | | | | | | | | | | 60 | | | | 318 | |
| Class C | | | 17,023 | | | | 23,890 | | | | 6,315 | | | | 4,335 | | | | 1,838 | | | | 2,972 | |
| Class I | | | 1,341 | | | | 1,937 | | | | 11,963 | | | | 4,096 | | | | 2,122 | | | | 3,782 | |
| Class R | | | 214 | | | | 274 | | | | | | | | | | | | | | | | | |
| | | |
| | | | 34,639 | | | | 51,271 | | | | 29,193 | | | | 15,611 | | | | 7,734 | | | | 12,870 | |
| | | |
| Shares issued-reinvested from distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,400 | | | | 2,131 | | | | 79 | | | | 286 | | | | 97 | | | | 156 | |
| Class B | | | 198 | | | | 524 | | | | | | | | | | | | — | (A) | | | 11 | |
| Class C | | | 1,069 | | | | 2,098 | | | | 9 | | | | 177 | | | | 20 | | | | 72 | |
| Class I | | | 19 | | | | — | (A) | | | 25 | | | | — | (A) | | | 9 | | | | — | (A) |
| Class R | | | 4 | | | | 4 | | | | | | | | | | | | | | | | | |
| | | |
| | | | 2,690 | | | | 4,757 | | | | 113 | | | | 463 | | | | 126 | | | | 239 | |
| | | |
| Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (18,400 | ) | | | (17,210 | ) | | | (6,308 | ) | | | (7,223 | ) | | | (4,678 | ) | | | (8,051 | ) |
| Class B | | | (3,537 | ) | | | (4,436 | ) | | | | | | | | | | | (393 | ) | | | (496 | ) |
| Class C | | | (22,830 | ) | | | (21,246 | ) | | | (3,354 | ) | | | (3,122 | ) | | | (3,634 | ) | | | (3,890 | ) |
| Class I | | | (633 | ) | | | (399 | ) | | | (3,036 | ) | | | (629 | ) | | | (1,821 | ) | | | (936 | ) |
| Class R | | | (129 | ) | | | (116 | ) | | | | | | | | | | | | | | | | |
| | | |
| | | | (45,529 | ) | | | (43,407 | ) | | | (12,698 | ) | | | (10,974 | ) | | | (10,526 | ) | | | (13,373 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 3,007 | | | | 865 | | | | — | | | | — | | | | 75 | | | | 70 | |
| Class B | | | (3,007 | ) | | | (866 | ) | | | | | | | | | | | (75 | ) | | | (71 | ) |
| | | |
| | | | — | | | | (1 | ) | | | — | | | | — | | | | — | | | | (1 | ) |
| | | |
Net increase (decrease) in shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
| Class A | | | 1,650 | | | | 8,618 | | | | 4,686 | | | | 243 | | | | (792 | ) | | | (2,027 | ) |
| Class B | | | (5,928 | ) | | | (2,440 | ) | | | | | | | | | | | (408 | ) | | | (238 | ) |
| Class C | | | (4,738 | ) | | | 4,742 | | | | 2,970 | | | | 1,390 | | | | (1,776 | ) | | | (846 | ) |
| Class I | | | 727 | | | | 1,538 | | | | 8,952 | | | | 3,467 | | | | 310 | | | | 2,846 | |
| Class R | | | 89 | | | | 162 | | | | | | | | | | | | | | | | | |
| | | |
| | | | (8,200 | ) | | | 12,620 | | | | 16,608 | | | | 5,100 | | | | (2,666 | ) | | | (265 | ) |
| | | |
| | |
| (A) | | Rounds to less than 1 or (1) share. |
| |
| (B) | | Amount rounds to less than $1 or $(1). |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 33 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Conservative Portfolio | |
| | | Class A | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.22 | | | $ | 10.42 | | | $ | 8.99 | | | $ | 12.40 | | | $ | 11.76 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.30 | | | | 0.35 | | | | 0.40 | | | | 0.36 | | | | 0.38 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.06 | ) | | | 0.83 | | | | 1.46 | | | | (3.21 | ) | | | 0.82 | |
| | | |
| Total from investment operations | | | 0.24 | | | | 1.18 | | | | 1.86 | | | | (2.85 | ) | | | 1.20 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.29 | ) | | | (0.38 | ) | | | (0.43 | ) | | | (0.32 | ) | | | (0.24 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.24 | ) | | | (0.32 | ) |
| | | |
| Total distributions | | | (0.29 | ) | | | (0.38 | ) | | | (0.43 | ) | | | (0.56 | ) | | | (0.56 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.17 | | | $ | 11.22 | | | $ | 10.42 | | | $ | 8.99 | | | $ | 12.40 | |
| | | |
| |
Total return(C) | | | 2.20 | % | | | 11.59 | % | | | 21.76 | % | | | (23.86 | %) | | | 12.06 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 489,240 | | | $ | 485,473 | | | $ | 360,558 | | | $ | 268,516 | | | $ | 242,342 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.62 | % | | | 0.63 | % | | | 0.65 | % | | | 0.62 | % | | | 0.62 | % |
| Before reimbursement/recapture | | | 0.62 | % | | | 0.63 | % | | | 0.65 | % | | | 0.62 | % | | | 0.62 | % |
Net investment income, to average net assets(B) | | | 2.63 | % | | | 3.28 | % | | | 4.27 | % | | | 3.22 | % | | | 3.18 | % |
Portfolio turnover rate(E) | | | 31 | % | | | 16 | % | | | 27 | % | | | 10 | % | | | 32 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Conservative Portfolio | |
| | | Class B | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.17 | | | $ | 10.38 | | | $ | 8.97 | | | $ | 12.36 | | | $ | 11.73 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.24 | | | | 0.30 | | | | 0.35 | | | | 0.31 | | | | 0.30 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.07 | ) | | | 0.80 | | | | 1.45 | | | | (3.22 | ) | | | 0.86 | |
| | | |
| Total from investment operations | | | 0.17 | | | | 1.10 | | | | 1.80 | | | | (2.91 | ) | | | 1.16 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.23 | ) | | | (0.31 | ) | | | (0.39 | ) | | | (0.24 | ) | | | (0.21 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.24 | ) | | | (0.32 | ) |
| | | |
| Total distributions | | | (0.23 | ) | | | (0.31 | ) | | | (0.39 | ) | | | (0.48 | ) | | | (0.53 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.11 | | | $ | 11.17 | | | $ | 10.38 | | | $ | 8.97 | | | $ | 12.36 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.50 | % | | | 10.82 | % | | | 21.01 | % | | | (24.36 | %) | | | 11.34 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 80,696 | | | $ | 114,303 | | | $ | 111,706 | | | $ | 93,268 | | | $ | 116,569 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.27 | % | | | 1.26 | % | | | 1.28 | % | | | 1.24 | % | | | 1.25 | % |
| Before reimbursement/recapture | | | 1.27 | % | | | 1.26 | % | | | 1.28 | % | | | 1.24 | % | | | 1.25 | % |
Net investment income, to average net assets(B) | | | 2.08 | % | | | 2.81 | % | | | 3.71 | % | | | 2.72 | % | | | 2.59 | % |
Portfolio turnover rate(E) | | | 31 | % | | | 16 | % | | | 27 | % | | | 10 | % | | | 32 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 34 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Conservative Portfolio | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.16 | | | $ | 10.37 | | | $ | 8.96 | | | $ | 12.35 | | | $ | 11.73 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.23 | | | | 0.29 | | | | 0.34 | | | | 0.29 | | | | 0.30 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.06 | ) | | | 0.82 | | | | 1.46 | | | | (3.19 | ) | | | 0.86 | |
| | | |
| Total from investment operations | | | 0.17 | | | | 1.11 | | | | 1.80 | | | | (2.90 | ) | | | 1.16 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.24 | ) | | | (0.32 | ) | | | (0.39 | ) | | | (0.25 | ) | | | (0.22 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.24 | ) | | | (0.32 | ) |
| | | |
| Total distributions | | | (0.24 | ) | | | (0.32 | ) | | | (0.39 | ) | | | (0.49 | ) | | | (0.54 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.09 | | | $ | 11.16 | | | $ | 10.37 | | | $ | 8.96 | | | $ | 12.35 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.50 | % | | | 10.92 | % | | | 21.09 | % | | | (24.30 | %) | | | 11.31 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 578,193 | | | $ | 601,625 | | | $ | 488,315 | | | $ | 364,153 | | | $ | 336,981 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.21 | % | | | 1.22 | % | | | 1.23 | % | | | 1.22 | % | | | 1.22 | % |
| Before reimbursement/recapture | | | 1.21 | % | | | 1.22 | % | | | 1.23 | % | | | 1.22 | % | | | 1.22 | % |
Net investment income, to average net assets(B) | | | 2.04 | % | | | 2.75 | % | | | 3.69 | % | | | 2.61 | % | | | 2.60 | % |
Portfolio turnover rate(E) | | | 31 | % | | | 16 | % | | | 27 | % | | | 10 | % | | | 32 | % |
| | | |
| | | | | | | | | |
| | | Transamerica Asset Allocation - |
| | | Conservative Portfolio |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 11.24 | | | $ | 10.69 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
From net investment income(A),(B) | | | 0.32 | | | | 0.22 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.04 | ) | | | 0.75 | |
| | | |
| Total from investment operations | | | 0.28 | | | | 0.97 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.33 | ) | | | (0.42 | ) |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 11.19 | | | $ | 11.24 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 2.52 | % | | | 9.39 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | | 15,067 | | | | 10,813 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | |
| After reimbursement/recapture | | | 0.26 | % | | | 0.28 | % (H) |
| Before reimbursement/recapture | | | 0.26 | % | | | 0.28 | % (H) |
Net investment income, to average net assets(B) | | | 2.83 | % | | | 2.24 | % (H) |
Portfolio turnover rate(E) | | | 31 | % | | | 16 | % (G) |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 35 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Conservative Portfolio | |
| | | Class R | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.29 | | | $ | 10.49 | | | $ | 9.05 | | | $ | 12.47 | | | $ | 11.84 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.28 | | | | 0.27 | | | | 0.37 | | | | 0.35 | | | | 0.33 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.07 | ) | | | 0.88 | | | | 1.49 | | | | (3.23 | ) | | | 0.85 | |
| | | |
| Total from investment operations | | | 0.21 | | | | 1.15 | | | | 1.86 | | | | (2.88 | ) | | | 1.18 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.26 | ) | | | (0.35 | ) | | | (0.42 | ) | | | (0.30 | ) | | | (0.23 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.24 | ) | | | (0.32 | ) |
| | | |
| Total distributions | | | (0.26 | ) | | | (0.35 | ) | | | (0.42 | ) | | | (0.54 | ) | | | (0.55 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.24 | | | $ | 11.29 | | | $ | 10.49 | | | $ | 9.05 | | | $ | 12.47 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.90 | % | | | 11.23 | % | | | 21.59 | % | | | (23.98 | %) | | | 11.89 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 2,425 | | | $ | 3,061 | | | $ | 1,509 | | | $ | 1,089 | | | $ | 645 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.90 | % | | | 0.88 | % | | | 0.89 | % | | | 0.82 | % | | | 0.86 | % |
| Before reimbursement/recapture | | | 0.90 | % | | | 0.88 | % | | | 0.89 | % | | | 0.82 | % | | | 0.86 | % |
Net investment income, to average net assets(B) | | | 2.50 | % | | | 2.56 | % | | | 3.97 | % | | | 3.14 | % | | | 2.71 | % |
Portfolio turnover rate(E) | | | 31 | % | | | 16 | % | | | 27 | % | | | 10 | % | | | 32 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Growth Portfolio | |
| | | Class A | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.36 | | | $ | 9.92 | | | $ | 8.87 | | | $ | 15.46 | | | $ | 13.44 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.07 | | | | 0.05 | | | | 0.12 | | | | 0.15 | | | | 0.23 | |
| From net realized and unrealized gain (loss) on affiliated | | | | | | | | | | | | | | | | | | |
| investments | | | 0.11 | | | | 1.48 | | | | 1.12 | | | | (6.29 | ) | | | 2.53 | |
| | | |
| Total from investment operations | | | 0.18 | | | | 1.53 | | | | 1.24 | | | | (6.14 | ) | | | 2.76 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.05 | ) | | | (0.09 | ) | | | (0.19 | ) | | | (0.02 | ) | | | (0.29 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.43 | ) | | | (0.45 | ) |
| | | |
| Total distributions | | | (0.05 | ) | | | (0.09 | ) | | | (0.19 | ) | | | (0.45 | ) | | | (0.74 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.49 | | | $ | 11.36 | | | $ | 9.92 | | | $ | 8.87 | | | $ | 15.46 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.59 | % | | | 15.55 | % | | | 14.46 | % | | | (40.75 | %) | | | 21.35 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 610,951 | | | $ | 645,459 | | | $ | 574,500 | | | $ | 495,257 | | | $ | 781,872 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.67 | % | | | 0.68 | % | | | 0.73 | % | | | 0.65 | % | | | 0.64 | % |
| Before reimbursement/recapture | | | 0.67 | % | | | 0.68 | % | | | 0.73 | % | | | 0.65 | % | | | 0.64 | % |
Net investment income, to average net assets(B) | | | 0.58 | % | | | 0.45 | % | | | 1.41 | % | | | 1.20 | % | | | 1.62 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 10 | % | | | 47 | % | | | 12 | % | | | 18 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 36 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Growth Portfolio | |
| | | Class B | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.09 | | | $ | 9.70 | | | $ | 8.63 | | | $ | 15.13 | | | $ | 13.17 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income (loss)(A),(B) | | | — | (I) | | | (0.02 | ) | | | 0.07 | | | | 0.08 | | | | 0.14 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | 0.11 | | | | 1.44 | | | | 1.10 | | | | (6.15 | ) | | | 2.47 | |
| | | |
| Total from investment operations | | | 0.11 | | | | 1.42 | | | | 1.17 | | | | (6.07 | ) | | | 2.61 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.03 | ) | | | (0.10 | ) | | | — | | | | (0.20 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.43 | ) | | | (0.45 | ) |
| | | |
| Total distributions | | | — | | | | (0.03 | ) | | | (0.10 | ) | | | (0.43 | ) | | | (0.65 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.20 | | | $ | 11.09 | | | $ | 9.70 | | | $ | 8.63 | | | $ | 15.13 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 0.99 | % | | | 14.65 | % | | | 13.78 | % | | | (41.15 | %) | | | 20.54 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 140,909 | | | $ | 184,263 | | | $ | 192,054 | | | $ | 196,817 | | | $ | 368,186 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.36 | % | | | 1.35 | % | | | 1.40 | % | | | 1.30 | % | | | 1.29 | % |
| Before reimbursement/recapture | | | 1.36 | % | | | 1.35 | % | | | 1.40 | % | | | 1.30 | % | | | 1.29 | % |
Net investment income (loss), to average net assets(B) | | | (0.02 | %) | | | (0.18 | %) | | | 0.84 | % | | | 0.67 | % | | | 1.02 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 10 | % | | | 47 | % | | | 12 | % | | | 18 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Growth Portfolio | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.09 | | | $ | 9.69 | | | $ | 8.64 | | | $ | 15.13 | | | $ | 13.18 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income (loss)(A),(B) | | | — | (I) | | | (0.01 | ) | | | 0.08 | | | | 0.08 | | | | 0.14 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | 0.11 | | | | 1.45 | | | | 1.08 | | | | (6.14 | ) | | | 2.48 | |
| | | |
| Total from investment operations | | | 0.11 | | | | 1.44 | | | | 1.16 | | | | (6.06 | ) | | | 2.62 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.04 | ) | | | (0.11 | ) | | | — | | | | (0.22 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.43 | ) | | | (0.45 | ) |
| | | |
| Total distributions | | | — | | | | (0.04 | ) | | | (0.11 | ) | | | (0.43 | ) | | | (0.67 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.20 | | | $ | 11.09 | | | $ | 9.69 | | | $ | 8.64 | | | $ | 15.13 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 0.99 | % | | | 14.86 | % | | | 13.72 | % | | | (41.08 | %) | | | 20.60 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 682,872 | | | $ | 774,914 | | | $ | 763,086 | | | $ | 751,881 | | | $ | 1,270,635 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.29 | % | | | 1.29 | % | | | 1.33 | % | | | 1.26 | % | | | 1.25 | % |
| Before reimbursement/recapture | | | 1.29 | % | | | 1.29 | % | | | 1.33 | % | | | 1.26 | % | | | 1.25 | % |
Net investment income (loss), to average net assets(B) | | | — | % (L) | | | (0.12 | %) | | | 0.90 | % | | | 0.62 | % | | | 1.03 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 10 | % | | | 47 | % | | | 12 | % | | | 18 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 37 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | |
| | | Transamerica Asset Allocation - |
| | | Growth Portfolio |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 11.39 | | | $ | 10.35 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
From net investment income (loss)(A),(B) | | | 0.11 | | | | (0.02 | ) |
| From net realized and unrealized gain on affiliated investments | | | 0.13 | | | | 1.20 | |
| | | |
| Total from investment operations | | | 0.24 | | | | 1.18 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.10 | ) | | | (0.14 | ) |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 11.53 | | | $ | 11.39 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 2.10 | % | | | 11.57 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 14,642 | | | $ | 13,112 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | |
| After reimbursement/recapture | | | 0.27 | % | | | 0.30 | % (H) |
| Before reimbursement/recapture | | | 0.27 | % | | | 0.30 | % (H) |
Net investment income (loss), to average net assets(B) | | | 0.93 | % | | | (0.15 | %) (H) |
Portfolio turnover rate(E) | | | 30 | % | | | 10 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Growth Portfolio | |
| | | Class R | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.27 | | | $ | 9.85 | | | $ | 8.84 | | | $ | 15.40 | | | $ | 13.43 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.05 | | | | 0.01 | | | | 0.10 | | | | 0.07 | | | | 0.13 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | 0.11 | | | | 1.49 | | | | 1.12 | | | | (6.20 | ) | | | 2.60 | |
| | | |
| Total from investment operations | | | 0.16 | | | | 1.50 | | | | 1.22 | | | | (6.13 | ) | | | 2.73 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.04 | ) | | | (0.08 | ) | | | (0.21 | ) | | | — | | | | (0.31 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.43 | ) | | | (0.45 | ) |
| | | |
| Total distributions | | | (0.04 | ) | | | (0.08 | ) | | | (0.21 | ) | | | (0.43 | ) | | | (0.76 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.39 | | | $ | 11.27 | | | $ | 9.85 | | | $ | 8.84 | | | $ | 15.40 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.45 | % | | | 15.35 | % | | | 14.35 | % | | | (40.81 | %) | | | 21.20 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 3,722 | | | $ | 3,762 | | | $ | 2,704 | | | $ | 1,570 | | | $ | 884 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.82 | % | | | 0.84 | % | | | 0.85 | % | | | 0.83 | % | | | 0.68 | % |
| Before reimbursement/recapture | | | 0.82 | % | | | 0.84 | % | | | 0.85 | % | | | 0.83 | % | | | 0.68 | % |
Net investment income, to average net assets(B) | | | 0.44 | % | | | 0.15 | % | | | 1.09 | % | | | 0.57 | % | | | 0.94 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 10 | % | | | 47 | % | | | 12 | % | | | 18 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 38 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Growth Portfolio | |
| | | Class A | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.59 | | | $ | 10.39 | | | $ | 9.20 | | | $ | 14.58 | | | $ | 13.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.19 | | | | 0.19 | | | | 0.28 | | | | 0.26 | | | | 0.33 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.06 | ) | | | 1.27 | | | | 1.25 | | | | (5.04 | ) | | | 1.86 | |
| | | |
| Total from investment operations | | | 0.13 | | | | 1.46 | | | | 1.53 | | | | (4.78 | ) | | | 2.19 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.17 | ) | | | (0.23 | ) | | | (0.34 | ) | | | (0.19 | ) | | | (0.34 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.41 | ) | | | (0.32 | ) |
| From return of capital | | | — | | | | (0.03 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.17 | ) | | | (0.26 | ) | | | (0.34 | ) | | | (0.60 | ) | | | (0.66 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.55 | | | $ | 11.59 | | | $ | 10.39 | | | $ | 9.20 | | | $ | 14.58 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.09 | % | | | 14.35 | % | | | 17.47 | % | | | (34.01 | %) | | | 17.48 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 1,186,790 | | | $ | 1,202,885 | | | $ | 1,044,810 | | | $ | 901,766 | | | $ | 1,295,568 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.62 | % | | | 0.62 | % | | | 0.66 | % | | | 0.60 | % | | | 0.60 | % |
| Before reimbursement/recapture | | | 0.62 | % | | | 0.62 | % | | | 0.66 | % | | | 0.60 | % | | | 0.60 | % |
Net investment income, to average net assets(B) | | | 1.58 | % | | | 1.80 | % | | | 2.99 | % | | | 2.12 | % | | | 2.42 | % |
Portfolio turnover rate(E) | | | 35 | % | | | 17 | % | | | 37 | % | | | 13 | % | | | 19 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Growth Portfolio | |
| | | Class B | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.53 | | | $ | 10.34 | | | $ | 9.12 | | | $ | 14.45 | | | $ | 12.94 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.12 | | | | 0.13 | | | | 0.22 | | | | 0.19 | | | | 0.24 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.07 | ) | | | 1.25 | | | | 1.24 | | | | (5.01 | ) | | | 1.85 | |
| | | |
| Total from investment operations | | | 0.05 | | | | 1.38 | | | | 1.46 | | | | (4.82 | ) | | | 2.09 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.08 | ) | | | (0.16 | ) | | | (0.24 | ) | | | (0.10 | ) | | | (0.26 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.41 | ) | | | (0.32 | ) |
| From return of capital | | | — | | | | (0.03 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.08 | ) | | | (0.19 | ) | | | (0.24 | ) | | | (0.51 | ) | | | (0.58 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.50 | | | $ | 11.53 | | | $ | 10.34 | | | $ | 9.12 | | | $ | 14.45 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 0.43 | % | | | 13.57 | % | | | 16.69 | % | | | (34.44 | %) | | | 16.69 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 283,905 | | | $ | 383,062 | | | $ | 394,275 | | | $ | 389,429 | | | $ | 651,359 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.31 | % | | | 1.30 | % | | | 1.33 | % | | | 1.27 | % | | | 1.27 | % |
| Before reimbursement/recapture | | | 1.31 | % | | | 1.30 | % | | | 1.33 | % | | | 1.27 | % | | | 1.27 | % |
Net investment income, to average net assets(B) | | | 1.02 | % | | | 1.19 | % | | | 2.39 | % | | | 1.54 | % | | | 1.78 | % |
Portfolio turnover rate(E) | | | 35 | % | | | 17 | % | | | 37 | % | | | 13 | % | | | 19 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 39 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Growth Portfolio | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.50 | | | $ | 10.32 | | | $ | 9.11 | | | $ | 14.45 | | | $ | 12.95 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.12 | | | | 0.13 | | | | 0.22 | | | | 0.18 | | | | 0.24 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.05 | ) | | | 1.25 | | | | 1.25 | | | | (5.00 | ) | | | 1.85 | |
| | | |
| Total from investment operations | | | 0.07 | | | | 1.38 | | | | 1.47 | | | | (4.82 | ) | | | 2.09 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.10 | ) | | | (0.17 | ) | | | (0.26 | ) | | | (0.11 | ) | | | (0.27 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.41 | ) | | | (0.32 | ) |
| From return of capital | | | — | | | | (0.03 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.10 | ) | | | (0.20 | ) | | | (0.26 | ) | | | (0.52 | ) | | | (0.59 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.47 | | | $ | 11.50 | | | $ | 10.32 | | | $ | 9.11 | | | $ | 14.45 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 0.56 | % | | | 13.58 | % | | | 16.77 | % | | | (34.44 | %) | | | 16.74 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 1,468,164 | | | $ | 1,606,227 | | | $ | 1,513,954 | | | $ | 1,455,012 | | | $ | 2,098,087 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.25 | % | | | 1.25 | % | | | 1.28 | % | | | 1.23 | % | | | 1.23 | % |
| Before reimbursement/recapture | | | 1.25 | % | | | 1.25 | % | | | 1.28 | % | | | 1.23 | % | | | 1.23 | % |
Net investment income, to average net assets(B) | | | 0.99 | % | | | 1.20 | % | | | 2.43 | % | | | 1.49 | % | | | 1.79 | % |
Portfolio turnover rate(E) | | | 35 | % | | | 17 | % | | | 37 | % | | | 13 | % | | | 19 | % |
| | | |
| | | | | | | | | |
| | | Transamerica Asset Allocation - | |
| | | Moderate Growth Portfolio | |
| | | Class I | |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 11.61 | | | $ | 10.76 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
From net investment income(A),(B) | | | 0.21 | | | | 0.09 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.03 | ) | | | 1.07 | |
| | | |
| Total from investment operations | | | 0.18 | | | | 1.16 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.21 | ) | | | (0.28 | ) |
| From return of capital | | | — | | | | (0.03 | ) |
| | | |
| Total distributions | | | (0.21 | ) | | | (0.31 | ) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 11.58 | | | $ | 11.61 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 1.54 | % | | | 11.07 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 23,403 | | | $ | 16,293 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | |
| After reimbursement/recapture | | | 0.26 | % | | | 0.29 | % (H) |
| Before reimbursement/recapture | | | 0.26 | % | | | 0.29 | % (H) |
Net investment income, to average net assets(B) | | | 1.74 | % | | | 0.89 | % (H) |
Portfolio turnover rate(E) | | | 35 | % | | | 17 | % (G) |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 40 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Growth Portfolio |
| | | Class R |
| | | October 31, | | October 31, | | October 31, | | October 31, | | October 31, |
| For a share outstanding throughout each period | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.53 | | | $ | 10.36 | | | $ | 9.18 | | | $ | 14.54 | | | $ | 13.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.17 | | | | 0.15 | | | | 0.25 | | | | 0.22 | | | | 0.24 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.04 | ) | | | 1.28 | | | | 1.26 | | | | (5.00 | ) | | | 1.93 | |
| | | |
| Total from investment operations | | | 0.13 | | | | 1.43 | | | | 1.51 | | | | (4.78 | ) | | | 2.17 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.16 | ) | | | (0.23 | ) | | | (0.33 | ) | | | (0.17 | ) | | | (0.36 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.41 | ) | | | (0.32 | ) |
| From return of capital | | | — | | | | (0.03 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.16 | ) | | | (0.26 | ) | | | (0.33 | ) | | | (0.58 | ) | | | (0.68 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.50 | | | $ | 11.53 | | | $ | 10.36 | | | $ | 9.18 | | | $ | 14.54 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.06 | % | | | 14.08 | % | | | 17.29 | % | | | (34.08 | %) | | | 17.31 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 5,306 | | | $ | 5,413 | | | $ | 2,873 | | | $ | 1,969 | | | $ | 1,983 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.77 | % | | | 0.79 | % | | | 0.82 | % | | | 0.76 | % | | | 0.67 | % |
| Before reimbursement/recapture | | | 0.77 | % | | | 0.79 | % | | | 0.82 | % | | | 0.76 | % | | | 0.67 | % |
Net investment income, to average net assets(B) | | | 1.43 | % | | | 1.43 | % | | | 2.68 | % | | | 1.74 | % | | | 1.80 | % |
Portfolio turnover rate(E) | | | 35 | % | | | 17 | % | | | 37 | % | | | 13 | % | | | 19 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Portfolio |
| | | Class A |
| | | October 31, | | October 31, | | October 31, | | October 31, | | October 31, |
| For a share outstanding throughout each period | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.59 | | | $ | 10.62 | | | $ | 9.29 | | | $ | 13.69 | | | $ | 12.64 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.26 | | | | 0.30 | | | | 0.36 | | | | 0.33 | | | | 0.36 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.02 | ) | | | 1.04 | | | | 1.40 | | | | (4.05 | ) | | | 1.40 | |
| | | |
| Total from investment operations | | | 0.24 | | | | 1.34 | | | | 1.76 | | | | (3.72 | ) | | | 1.76 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.23 | ) | | | (0.37 | ) | | | (0.43 | ) | | | (0.28 | ) | | | (0.37 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.40 | ) | | | (0.34 | ) |
| | | |
| Total distributions | | | (0.23 | ) | | | (0.37 | ) | | | (0.43 | ) | | | (0.68 | ) | | | (0.71 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.60 | | | $ | 11.59 | | | $ | 10.62 | | | $ | 9.29 | | | $ | 13.69 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 2.10 | % | | | 12.95 | % | | | 19.99 | % | | | (28.41 | %) | | | 14.51 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 877,866 | | | $ | 857,469 | | | $ | 694,532 | | | $ | 545,646 | | | $ | 665,013 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.61 | % | | | 0.61 | % | | | 0.63 | % | | | 0.59 | % | | | 0.59 | % |
| Before reimbursement/recapture | | | 0.61 | % | | | 0.61 | % | | | 0.63 | % | | | 0.59 | % | | | 0.59 | % |
Net investment income, to average net assets(B) | | | 2.23 | % | | | 2.78 | % | | | 3.76 | % | | | 2.79 | % | | | 2.83 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 16 | % | | | 30 | % | | | 12 | % | | | 23 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 41 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Portfolio |
| | | Class B |
| | | October 31, | | October 31, | | October 31, | | October 31, | | October 31, |
| For a share outstanding throughout each period | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.55 | | | $ | 10.59 | | | $ | 9.23 | | | $ | 13.59 | | | $ | 12.55 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.20 | | | | 0.24 | | | | 0.30 | | | | 0.27 | | | | 0.28 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.03 | ) | | | 1.02 | | | | 1.39 | | | | (4.05 | ) | | | 1.39 | |
| | | |
| Total from investment operations | | | 0.17 | | | | 1.26 | | | | 1.69 | | | | (3.78 | ) | | | 1.67 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.14 | ) | | | (0.30 | ) | | | (0.33 | ) | | | (0.18 | ) | | | (0.28 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.40 | ) | | | (0.34 | ) |
| | | |
| Total distributions | | | (0.14 | ) | | | (0.30 | ) | | | (0.33 | ) | | | (0.58 | ) | | | (0.62 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.58 | | | $ | 11.55 | | | $ | 10.59 | | | $ | 9.23 | | | $ | 13.59 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.49 | % | | | 12.13 | % | | | 19.16 | % | | | (28.87 | %) | | | 13.73 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 152,538 | | | $ | 220,658 | | | $ | 228,151 | | | $ | 223,209 | | | $ | 357,175 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.28 | % | | | 1.28 | % | | | 1.30 | % | | | 1.25 | % | | | 1.25 | % |
| Before reimbursement/recapture | | | 1.28 | % | | | 1.28 | % | | | 1.30 | % | | | 1.25 | % | | | 1.25 | % |
Net investment income, to average net assets(B) | | | 1.69 | % | | | 2.24 | % | | | 3.23 | % | | | 2.26 | % | | | 2.21 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 16 | % | | | 30 | % | | | 12 | % | | | 23 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Portfolio |
| | | Class C |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.50 | | | $ | 10.55 | | | $ | 9.21 | | | $ | 13.58 | | | $ | 12.55 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.19 | | | | 0.24 | | | | 0.30 | | | | 0.26 | | | | 0.28 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.01 | ) | | | 1.02 | | | | 1.39 | | | | (4.03 | ) | | | 1.39 | |
| | | |
| Total from investment operations | | | 0.18 | | | | 1.26 | | | | 1.69 | | | | (3.77 | ) | | | 1.67 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.16 | ) | | | (0.31 | ) | | | (0.35 | ) | | | (0.20 | ) | | | (0.30 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.40 | ) | | | (0.34 | ) |
| | | |
| Total distributions | | | (0.16 | ) | | | (0.31 | ) | | | (0.35 | ) | | | (0.60 | ) | | | (0.64 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.52 | | | $ | 11.50 | | | $ | 10.55 | | | $ | 9.21 | | | $ | 13.58 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.50 | % | | | 12.22 | % | | | 19.24 | % | | | (28.87 | %) | | | 13.86 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 1,088,747 | | | $ | 1,142,029 | | | $ | 997,766 | | | $ | 876,977 | | | $ | 1,159,220 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.22 | % | | | 1.22 | % | | | 1.24 | % | | | 1.21 | % | | | 1.21 | % |
| Before reimbursement/recapture | | | 1.22 | % | | | 1.22 | % | | | 1.24 | % | | | 1.21 | % | | | 1.21 | % |
Net investment income, to average net assets(B) | | | 1.64 | % | | | 2.21 | % | | | 3.25 | % | | | 2.21 | % | | | 2.21 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 16 | % | | | 30 | % | | | 12 | % | | | 23 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 42 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | |
| | | Transamerica Asset Allocation- |
| | | Moderate Portfolio |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| | |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 11.61 | | | $ | 10.94 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
From net investment income(A),(B) | | | 0.28 | | | | 0.17 | |
| From net realized and unrealized gain on affiliated investments | | | 0.01 | | | | 0.91 | |
| | | |
| Total from investment operations | | | 0.29 | | | | 1.08 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.27 | ) | | | (0.41 | ) |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 11.63 | | | $ | 11.61 | |
| | | |
| |
Total return(C) | | | 2.53 | % | | | 10.27 | % (G) |
| | | |
| |
Net assets end of year (000’s) | | $ | 26,332 | | | $ | 17,853 | |
| | | |
| |
Ratio and supplemental data | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | |
| After reimbursement/recapture | | | 0.26 | % | | | 0.28 | % (H) |
| Before reimbursement/recapture | | | 0.26 | % | | | 0.28 | % (H) |
Net investment income, to average net assets(B) | | | 2.42 | % | | | 1.73 | % (H) |
Portfolio turnover rate(E) | | | 30 | % | | | 16 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Asset Allocation - Moderate Portfolio |
| | | Class R |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.53 | | | $ | 10.58 | | | $ | 9.28 | | | $ | 13.65 | | | $ | 12.64 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.23 | | | | 0.24 | | | | 0.32 | | | | 0.28 | | | | 0.31 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | —(I) | | | | 1.06 | | | | 1.42 | | | | (4.02 | ) | | | 1.42 | |
| | | |
| Total from investment operations | | | 0.23 | | | | 1.30 | | | | 1.74 | | | | (3.74 | ) | | | 1.73 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.22 | ) | | | (0.35 | ) | | | (0.44 | ) | | | (0.23 | ) | | | (0.38 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.40 | ) | | | (0.34 | ) |
| | | |
| Total distributions | | | (0.22 | ) | | | (0.35 | ) | | | (0.44 | ) | | | (0.63 | ) | | | (0.72 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.54 | | | $ | 11.53 | | | $ | 10.58 | | | $ | 9.28 | | | $ | 13.65 | |
| | | |
| |
Total return(C) | | | 2.01 | % | | | 12.60 | % | | | 19.81 | % | | | (28.57 | %) | | | 14.31 | % |
| | | |
| |
Net assets end of year (000’s) | | $ | 5,314 | | | $ | 4,278 | | | $ | 2,211 | | | $ | 959 | | | $ | 610 | |
| | | |
| |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.82 | % | | | 0.83 | % | | | 0.86 | % | | | 0.87 | % | | | 0.72 | % |
| Before reimbursement/recapture | | | 0.82 | % | | | 0.83 | % | | | 0.86 | % | | | 0.87 | % | | | 0.72 | % |
Net investment income, to average net assets(B) | | | 2.00 | % | | | 2.23 | % | | | 3.38 | % | | | 2.37 | % | | | 2.44 | % |
Portfolio turnover rate(E) | | | 30 | % | | | 16 | % | | | 30 | % | | | 12 | % | | | 23 | % |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 43 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Manager Alternative Strategies Portfolio | |
| | | Class A | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007(K) | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.82 | | | $ | 9.35 | | | $ | 8.30 | | | $ | 10.78 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.15 | | | | 0.14 | | | | 0.29 | | | | 0.20 | | | | 0.05 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.23 | ) | | | 0.58 | | | | 1.08 | | | | (2.43 | ) | | | 0.73 | |
| | | |
| |
| Total from investment operations | | | (0.08 | ) | | | 0.72 | | | | 1.37 | | | | (2.23 | ) | | | 0.78 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| |
| Net investment income | | | (0.06 | ) | | | (0.15 | ) | | | (0.32 | ) | | | (0.25 | ) | | | | |
| From return of capital | | | — | | | | (0.10 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.06 | ) | | | (0.25 | ) | | | (0.32 | ) | | | (0.25 | ) | | | | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.68 | | | $ | 9.82 | | | $ | 9.35 | | | $ | 8.30 | | | $ | 10.78 | |
| | | |
| |
Total return(C) | | | (0.77 | %) | | | 7.83 | % | | | 17.21 | % | | | (21.08 | %) | | | 7.80 | % (G) |
| | | |
| |
Net assets end of year (000’s) | | $ | 171,567 | | | $ | 128,041 | | | $ | 119,693 | | | $ | 97,482 | | | $ | 38,870 | |
| | | |
| |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.76 | % | | | 0.80 | % | | | 0.81 | % | | | 0.84 | % | | | 0.90 | % (H) |
| Before reimbursement/recapture | | | 0.76 | % | | | 0.80 | % | | | 0.81 | % | | | 0.77 | % | | | 1.29 | % (H) |
Net investment income, to average net assets(B) | | | 1.53 | % | | | 1.51 | % | | | 3.43 | % | | | 1.98 | % | | | 0.58 | % (H) |
Portfolio turnover rate(E) | | | 31 | % | | | 35 | % | | | 18 | % | | | 5 | % | | | % | (G),(J) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Manager Alternative Strategies Portfolio | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007(K) | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.73 | | | $ | 9.27 | | | $ | 8.23 | | | $ | 10.72 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income (loss)(A),(B) | | | 0.09 | | | | 0.08 | | | | 0.24 | | | | 0.15 | | | | (0.01 | ) |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.22 | ) | | | 0.57 | | | | 1.06 | | | | (2.42 | ) | | | 0.73 | |
| | | |
| Total from investment operations | | | (0.13 | ) | | | 0.65 | | | | 1.30 | | | | (2.27 | ) | | | 0.72 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.01 | ) | | | (0.09 | ) | | | (0.26 | ) | | | (0.22 | ) | | | — | |
| From return of capital | | | — | | | | (0.10 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.01 | ) | | | (0.19 | ) | | | (0.26 | ) | | | (0.22 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.59 | | | $ | 9.73 | | | $ | 9.27 | | | $ | 8.23 | | | $ | 10.72 | |
| | | |
| |
Total return(C) | | | (1.35 | %) | | | 7.12 | % | | | 16.37 | % | | | (21.52 | %) | | | 7.20 | % (G) |
| | | |
| |
Net assets end of year (000’s) | | $ | 141,413 | | | $ | 114,662 | | | $ | 96,376 | | | $ | 89,701 | | | $ | 49,306 | |
| | | |
| |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.42 | % | | | 1.44 | % | | | 1.45 | % | | | 1.52 | % | | | 1.55 | % (H) |
| Before reimbursement/recapture | | | 1.42 | % | | | 1.44 | % | | | 1.45 | % | | | 1.43 | % | | | 1.99 | % (H) |
Net investment income (loss), to average net assets(B) | | | 0.91 | % | | | 0.82 | % | | | 2.92 | % | | | 1.53 | % | | | (0.07 | %) (H) |
Portfolio turnover rate(E) | | | 31 | % | | | 35 | % | | | 18 | % | | | 5 | % | | | — | %(G),(J) |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 44 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | |
| | | Transamerica Multi-Manager Alternative Strategies Portfolio | |
| | | Class I | |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| | |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 9.84 | | | $ | 9.49 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
From net investment income(A),(B) | | | 0.15 | | | | 0.07 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.19 | ) | | | 0.57 | |
| | | |
| Total from investment operations | | | (0.04 | ) | | | 0.64 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.10 | ) | | | (0.19 | ) |
| From return of capital | | | — | | | | (0.10 | ) |
| | | |
| Total distributions | | | (0.10 | ) | | | (0.29 | ) |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 9.70 | | | $ | 9.84 | |
| | | |
| | | | | | | | | |
Total return(C) | | | (0.47 | %) | | | 6.90 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 120,465 | | | $ | 34,131 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | |
| After reimbursement/recapture | | | 0.40 | % | | | 0.50 | % (H) |
| Before reimbursement/recapture | | | 0.40 | % | | | 0.50 | % (H) |
Net investment income, to average net assets(B) | | | 1.56 | % | | | 0.82 | % (H) |
Portfolio turnover rate(E) | | | 31 | % | | | 35 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Manager International Portfolio | |
| | | Class A | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.84 | | | $ | 8.53 | | | $ | 6.57 | | | $ | 13.24 | | | $ | 10.63 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.08 | | | | 0.09 | | | | 0.17 | | | | 0.27 | | | | 0.32 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.75 | ) | | | 1.33 | | | | 1.84 | | | | (6.53 | ) | | | 2.87 | |
| | | |
| Total from investment operations | | | (0.67 | ) | | | 1.42 | | | | 2.01 | | | | (6.26 | ) | | | 3.19 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.08 | ) | | | (0.11 | ) | | | (0.05 | ) | | | (0.32 | ) | | | (0.58 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.09 | ) | | | — | |
| | | |
| Total distributions | | | (0.08 | ) | | | (0.11 | ) | | | (0.05 | ) | | | (0.41 | ) | | | (0.58 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.09 | | | $ | 9.84 | | | $ | 8.53 | | | $ | 6.57 | | | $ | 13.24 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | (6.90 | %) | | | 16.80 | % | | | 30.86 | % | | | (48.61 | %) | | | 31.30 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 118,070 | | | $ | 135,479 | | | $ | 134,751 | | | $ | 103,077 | | | $ | 178,422 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.67 | % | | | 0.70 | % | | | 0.74 | % | | | 0.65 | % | | | 0.65 | % |
| Before reimbursement/recapture | | | 0.67 | % | | | 0.70 | % | | | 0.74 | % | | | 0.65 | % | | | 0.65 | % |
Net investment income, to average net assets(B) | | | 0.77 | % | | | 1.04 | % | | | 2.35 | % | | | 2.59 | % | | | 2.78 | % |
Portfolio turnover rate(E) | | | 13 | % | | | 11 | % | | | 32 | % | | | 38 | % | | | 1 | % |
| | | |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 45 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Manager International Portfolio |
| | | Class B |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.74 | | | $ | 8.45 | | | $ | 6.50 | | | $ | 13.13 | | | $ | 10.59 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.01 | | | | 0.02 | | | | 0.01 | | | | 0.21 | | | | 0.23 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.75 | ) | | | 1.32 | | | | 1.94 | | | | (6.50 | ) | | | 2.86 | |
| | | |
| Total from investment operations | | | (0.74 | ) | | | 1.34 | | | | 1.95 | | | | (6.29 | ) | | | 3.09 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (I) | | | | (0.05 | ) | | | — | | | | (0.25 | ) | | | (0.55 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.09 | ) | | | | |
| | | |
| Total distributions | | | —(I) | | | | (0.05 | ) | | | — | | | | (0.34 | ) | | | (0.55 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.00 | | | $ | 9.74 | | | $ | 8.45 | | | $ | 6.50 | | | $ | 13.13 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | (7.59 | %) | | | 15.95 | % | | | 30.00 | % | | | (49.04 | %) | | | 30.32 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 13,373 | | | $ | 18,432 | | | $ | 18,010 | | | $ | 15,781 | | | $ | 30,060 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.45 | % | | | 1.45 | % | | | 1.45 | % | | | 1.42 | % | | | 1.43 | % |
| Before reimbursement/recapture | | | 1.48 | % | | | 1.49 | % | | | 1.57 | % | | | 1.42 | % | | | 1.43 | % |
Net investment income, to average net assets(B) | | | 0.11 | % | | | 0.19 | % | | | 0.08 | % | | | 1.95 | % | | | 1.98 | % |
Portfolio turnover rate(E) | | | 13 | % | | | 11 | % | | | 32 | % | | | 38 | % | | | 1 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Manager International Portfolio |
| | | Class C |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.75 | | | $ | 8.45 | | | $ | 6.50 | | | $ | 13.13 | | | $ | 10.58 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
From net investment income(A),(B) | | | 0.02 | | | | 0.02 | | | | 0.03 | | | | 0.21 | | | | 0.24 | |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.74 | ) | | | 1.33 | | | | 1.92 | | | | (6.49 | ) | | | 2.86 | |
| | | |
| Total from investment operations | | | (0.72 | ) | | | 1.35 | | | | 1.95 | | | | (6.28 | ) | | | 3.10 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.02 | ) | | | (0.05 | ) | | | — | | | | (0.26 | ) | | | (0.55 | ) |
| Net realized gains on affiliated investments | | | — | | | | — | | | | — | | | | (0.09 | ) | | | | |
| | | |
| Total distributions | | | (0.02 | ) | | | (0.05 | ) | | | — | | | | (0.35 | ) | | | (0.55 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.01 | | | $ | 9.75 | | | $ | 8.45 | | | $ | 6.50 | | | $ | 13.13 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | (7.42 | %) | | | 16.10 | % | | | 30.00 | % | | | (48.98 | %) | | | 30.45 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 117,858 | | | $ | 144,849 | | | $ | 132,777 | | | $ | 128,742 | | | $ | 250,419 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.34 | % | | | 1.36 | % | | | 1.43 | % | | | 1.31 | % | | | 1.31 | % |
| Before reimbursement/recapture | | | 1.34 | % | | | 1.36 | % | | | 1.43 | % | | | 1.31 | % | | | 1.31 | % |
Net investment income, to average net assets(B) | | | 0.16 | % | | | 0.27 | % | | | 0.50 | % | | | 2.01 | % | | | 2.08 | % |
Portfolio turnover rate(E) | | | 13 | % | | | 11 | % | | | 32 | % | | | 38 | % | | | 1 | % |
| | | |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 46 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | |
| | | Transamerica Multi-Manager International Portfolio |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| | |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 9.86 | | | $ | 8.84 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
From net investment income (loss)(A),(B) | | | 0.11 | | | | (0.02 | ) |
| From net realized and unrealized gain (loss) on affiliated investments | | | (0.74 | ) | | | 1.19 | |
| | | |
| Total from investment operations | | | (0.63 | ) | | | 1.17 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.12 | ) | | | (0.15 | ) |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 9.11 | | | $ | 9.86 | |
| | | |
| | | | | | | | | |
Total return(C) | | | (6.49 | %) | | | 13.41 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 28,748 | | | $ | 28,047 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| | | | | | | | | |
Expenses to average net assets:(D) | | | | | | | | |
| After reimbursement/recapture | | | 0.29 | % | | | 0.34 | % (H) |
| Before reimbursement/recapture | | | 0.29 | % | | | 0.34 | % (H) |
Net investment income (loss), to average net assets(B) | | | 1.12 | % | | | (0.21 | %) (H) |
Portfolio turnover rate(E) | | | 13 | % | | | 11 | % (G) |
| | | |
| | |
| (A) | | Calculated based on average number of shares outstanding. |
| |
| (B) | | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying affiliated investment companies in which the Fund invests. |
| |
| (C) | | Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. |
| |
| (D) | | Does not include expenses of the investment companies in which the fund invests. |
| |
| (E) | | Does not include the portfolio activity of the underlying affiliated funds. |
| |
| (F) | | Commenced operations on November 30, 2009. |
| |
| (G) | | Not annualized. |
| |
| (H) | | Annualized. |
| |
| (I) | | Amount rounds to less than $(0.01) or $0.01. |
| |
| (J) | | Percentage rounds to less than 1% or (1)%. |
| |
| (K) | | Commenced operations on December 28, 2006. |
| |
| (L) | | Percentage rounds to less than .01% or (.01)%. |
Note: Prior to November 1, 2009, all of the financial highlights were audited by another independent regeistered public accounting firm.
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 47 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS
At October 31, 2011
(all amounts in thousands)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica Funds (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Transamerica Asset Allocation-Conservative Portfolio, Transamerica Asset Allocation-Growth Portfolio, Transamerica Asset Allocation-Moderate Growth Portfolio, Transamerica Asset Allocation-Moderate Portfolio, Transamerica Multi-Manager Alternative Strategies Portfolio, and Transamerica Multi-Manager International Portfolio (each, a “Fund”; and collectively, the “Funds”) are part of Transamerica Funds.
The Funds, with the exception of Transamerica Multi-Manager Alternative Strategies Portfolio and Transamerica Multi-Manager International Portfolio, currently offer five classes of shares, Class A, Class B, Class C, Class I, and Class R. Transamerica Multi -Manager Alternative Strategies Portfolio currently offers three classes of shares, Class A, Class C, and Class I. Transamerica Multi-Manager International Portfolio currently offers four classes of shares, Class A, Class B, Class C, and Class I. Each class has a public offering price that reflects different sales charges, if any, and expense levels. Class B shares will convert to Class A shares eight years after purchase. Effective July 15, 2010, Class B shares were no longer offered for purchase.
Each Fund, a “fund of fund”, invests a majority of its assets among certain affiliated Transamerica Funds (hereafter referred to as “Underlying Funds”). The financial statements of the Underlying Funds, including the Schedules of Investments, should be read in conjunction with the Funds’ financial statements. The Underlying Fund’s shareholder reports are available without charge at www.transamericainvestments.com and on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov, or at the SEC’s Public Reference Room in Washington, D.C. The Underlying Funds’ shareholder reports are not covered by this report.
This report should be read in conjunction with the Funds’ current prospectus, which contains more complete information about the Funds, including investment objectives and strategies.
In the normal course of business, the Funds enter into contracts that contain a variety of representations that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
In preparing the Funds’ financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), estimates or assumptions (which could differ from actual results) may be used that affect reported amounts and disclosures. The following is a summary of significant accounting policies followed by the Funds.
Security transactions and investment income: Security transactions are recorded on the trade date. Security gains and losses are calculated on the specific identification basis. Interest income is accrued as earned. Dividend income and capital gain distributions from affiliated investment companies, if any, are recorded on the ex-dividend date. Dividends and net realized gain (loss) from investment securities for the Funds are from investments in shares of affiliated investment companies.
Multiple class operations, income, and expenses: Income, non-class specific expenses, and realized and unrealized gains and losses are allocated daily to each class, based upon net assets. In addition to the non-class specific expenses, each class bears its own specific expenses.
Dividend distributions: Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations which may differ from GAAP.
Repurchase agreements: Securities purchased subject to a repurchase agreement are held at the Funds’ custodian and, pursuant to the terms of the repurchase agreement, must be collateralized by securities with an aggregate market value greater than or equal to 100% of the resale price. The Funds will bear the risk of value fluctuations until the securities can be sold and may encounter delays and incur costs in liquidating the securities. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Cash overdrafts: Throughout the year, the Funds may have cash overdraft balances. A fee is incurred on these overdrafts by a rate based on the federal funds rate. Expenses from cash overdrafts are included in Other Expenses on the Statements of Operations.
NOTE 2. SECURITY VALUATIONS
All investments in securities are recorded at their estimated fair value. The Funds value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. Eastern Time, each day the NYSE is open for business. The Funds utilize various methods to measure the fair value of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three Levels of inputs of the fair value hierarchy are defined as follows:
| | | | |
| | | | | |
| Transamerica Funds | | Page 48 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 2. (continued)
Level 1—Unadjusted quoted prices in active markets for identical securities.
Level 2—Inputs, other than quoted prices included in Level 1, that are observable, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3—Unobservable inputs, which may include Transamerica Asset Management, Inc.’s (“TAM”) Valuation Committee’s own assumptions in determining the fair value of investments.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, but not limited to, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is generally greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy that is assigned to the fair value measurement of a security is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.
Fair value measurements: Descriptions of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Investment company: Underlying Fund securities are valued at net asset value. These securities are actively traded and no valuation adjustments are applied. They are categorized in Level 1 of the fair value hierarchy.
Repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are generally categorized in Level 2.
The hierarchy classifications of inputs used to value the Funds’ investments, at October 31, 2011, are disclosed in the Valuation Summary of the Funds’ Schedules of Investments. Transfers between Levels are considered to have occurred at the end of the reporting period.
There were no significant transfers between Level 1 and Level 2 during the year ended October 31, 2011.
NOTE 3. RELATED PARTY TRANSACTIONS
TAM, the Funds’ investment adviser, is directly owned by Western Reserve Life Assurance Co. of Ohio and AUSA Holding Company (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.
Transamerica Fund Services, Inc. (“TFS”) is the Funds’ administrator and transfer agent. Transamerica Capital, Inc. (“TCI”) is the Funds’ distributor/principal underwriter. TAM, TFS, and TCI are affiliates of AEGON, NV.
Certain officers and trustees of the Funds are also officers and/or directors of TAM, TFS, and TCI. None of these non-independent trustees receive compensation for services as trustees of the Funds or the entities that invest in the Funds.
Because the Underlying Funds have varied expense and fee levels and the Funds may own different proportions of Underlying Funds at different times, the amount of fees and expenses incurred indirectly by the Funds will vary. The Funds have material ownership interests in the Underlying Funds.
At the commencement of operations of each of these Funds and classes, TAM invested in each Fund. As of October 31, 2011, TAM had investments in the Funds as follows:
| | | | | | | | | |
| | | Market | | | % of Fund’s |
| Fund Name | | Value | | | Net Assets |
| Transamerica Asset Allocation-Growth Portfolio | | | | | | | | |
| Class R | | $ | 52 | | | | — | (a)% |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | | | | | | |
| Class R | | | 56 | | | | — | (a) |
| Transamerica Asset Allocation-Moderate Portfolio | | | | | | | | |
| Class R | | | 60 | | | | — | (a) |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | | | | | | |
| Class A | | | 267 | | | | 0.06 | |
| Class C | | | 259 | | | | 0.06 | |
| | |
| (a) | | Amount rounds to less than 0.01%. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 49 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
Investment advisory fees: The Funds pay management fees to TAM based on average daily net assets (“ANA”) at the following rates or breakpoints:
| | | | | |
|
Transamerica Asset Allocation — Conservative Portfolio | | | | |
| ANA | | | 0.10 | % |
Transamerica Asset Allocation — Growth Portfolio | | | | |
| ANA | | | 0.10 | |
Transamerica Asset Allocation — Moderate Growth Portfolio | | | | |
| ANA | | | 0.10 | |
Transamerica Asset Allocation — Moderate Portfolio | | | | |
| ANA | | | 0.10 | |
Transamerica Multi-Manager Alternative Strategies Portfolio | | | | |
| First $500 million | | | 0.20 | |
| Over $500 million up to $1 billion | | | 0.19 | |
| Over $1 billion | | | 0.18 | |
Transamerica Multi-Manager International Portfolio | | | | |
| ANA | | | 0.10 | |
TAM has contractually agreed to waive its advisory fees and will reimburse the Funds to the extent that operating expenses, excluding distribution and service fees, extraordinary expenses, and acquired (i.e. underlying) funds’ fees and expenses, exceed the following stated annual limit:
| | | | | |
| Portfolio Name | | Expense Limit | |
| Transamerica Asset Allocation — Conservative Portfolio | | | 0.45 | % |
| Transamerica Asset Allocation — Growth Portfolio | | | 0.45 | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 0.45 | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 0.45 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 0.55 | |
| Transamerica Multi-Manager International Portfolio | | | 0.45 | |
If total Fund expenses, excluding 12b-1 fees and certain extraordinary expenses, fall below the annual expense limitation agreement agreed to by the adviser within the succeeding 36 months following any reimbursement from/by the adviser, the Funds may be required to pay the adviser a portion or all of the previously waived advisory and reimbursed fees.
There were no amounts recaptured for the year ended October 31, 2011.
The following amounts were available for recapture as of October 31, 2011:
| | | | | | | | | |
| Transamerica Multi-Manager International Portfolio | | Reimbursement of
Class Expenses | | Available for
Recapture Through | |
| Fiscal Year 2009: | | | | | | | | |
| Class B | | $ | 18 | | | | 10/31/2012 | |
| Fiscal Year 2010: | | | | | | | | |
| Class B | | | 7 | | | | 10/31/2013 | |
| Fiscal Year 2011: | | | | | | | | |
| Class B | | | 6 | | | | 10/31/2014 | |
Distribution and service fees: The Funds have 12b-1 distribution plans under the 1940 Act pursuant to which an annual fee, based on ANA, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Funds. Pursuant to the distribution plan, the Trust entered into a distribution agreement with TCI as the Funds’ distributor. The Funds are authorized under the 12b-1 plans to pay fees on each available class up to the following limits: 0.35% for Class A; 1.00% for Class B; 1.00% for Class C; and 0.50% for Class R. 12b-1 fees are not applicable for Class I. Amounts paid are included in the Statements of Operations.
Underwriter commissions relate to front-end sales charges imposed for Class A shares and contingent deferred sales charges from Classes B, C, and certain A share redemptions. For the year ended October 31, 2011 the underwriter commissions paid to TCI were as follows:
| | | | | |
| Transamerica Asset Allocation — Conservative Portfolio |
| Received by Underwriter | | $ | 2,543 | |
| Retained by Underwriter | | | 415 | |
| Contingent Deferred Sales Charge | | | 242 | |
| | | | | |
Transamerica Asset Allocation — Growth Portfolio | | | | |
| Received by Underwriter | | | 2,599 | |
| Retained by Underwriter | | | 391 | |
| Contingent Deferred Sales Charge | | | 329 | |
| | | | | |
Transamerica Asset Allocation — Moderate Growth Portfolio |
| Received by Underwriter | | | 5,579 | |
| Retained by Underwriter | | | 857 | |
| Contingent Deferred Sales Charge | | | 561 | |
| |
| Transamerica Asset Allocation — Moderate Portfolio |
| Received by Underwriter | | $ | 4,475 | |
| Retained by Underwriter | | | 711 | |
| Contingent Deferred Sales Charge | | | 383 | |
| | | | | |
| Transamerica Multi-Manager Alternative Strategies Portfolio |
| Received by Underwriter | | | 1,469 | |
| Retained by Underwriter | | | 230 | |
| Contingent Deferred Sales Charge | | | 39 | |
| | | | | |
| Transamerica Multi-Manager International Portfolio |
| Received by Underwriter | | | 267 | |
| Retained by Underwriter | | | 41 | |
| Contingent Deferred Sales Charge | | | 56 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 50 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
Administrative services: The Funds have entered into an agreement with TFS for financial and legal fund administration services. The Funds pay TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statements of Operations are fees paid to external legal counsel.
Transfer agent fees: Pursuant to a Transfer Agency Agreement, as amended, the Funds pay TFS a fee for providing transfer agency services. Fees paid and the amounts due to TFS for the year ended October 31, 2011 are as follows:
| | | | | | | | | |
| Fund Name | | Fees Paid to TFS | | | Due to TFS | |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 1,191 | | | $ | 96 | |
| Transamerica Asset Allocation — Growth Portfolio | | | 2,575 | | | | 192 | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 3,901 | | | | 298 | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 2,262 | | | | 179 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 492 | | | | 43 | |
| Transamerica Multi-Manager International Portfolio | | | 529 | | | | 37 | |
Deferred compensation plan: Under a non-qualified deferred compensation plan effective January 1, 1996, as amended and restated (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the Trust to an Independent Trustee on a current basis for services rendered as Trustee. Deferred compensation amounts will accumulate based on the value of Class A (or comparable) shares of a series of Transamerica Funds (without imposition of sales charge), or investment options under Transamerica Partners Institutional Funds and Transamerica Institutional Asset Allocation Funds, as elected by the Trustee.
NOTE 4. INVESTMENT TRANSACTIONS
The cost of affiliated investments purchased and proceeds from affiliated investments sold (excluding short-term securities) for the year ended October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | | |
| | | Purchases of securities: | | | Proceeds from maturities and sales of securities: | |
| Fund Name | | Long-term | | | U.S. Government | | | Long-term | | | U.S. Government | |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 375,714 | | | $ | — | | | $ | 408,483 | | | $ | — | |
| Transamerica Asset Allocation — Growth Portfolio | | | 494,813 | | | | — | | | | 680,441 | | | | — | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 1,139,073 | | | | — | | | | 1,353,504 | | | | — | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 693,325 | | | | — | | | | 762,671 | | | | — | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 281,555 | | | | — | | | | 112,232 | | | | — | |
| Transamerica Multi-Manager International Portfolio | | | 44,078 | | | | — | | | | 64,505 | | | | — | |
NOTE 5. FEDERAL INCOME TAX MATTERS
The Funds have not made any provision for federal income or excise taxes due to their policy to distribute all of their taxable income and capital gains to their shareholders and otherwise qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has evaluated the Funds’ tax positions taken for all open years (2008 — 2010), or expected to be taken in the Funds’ 2011 tax return, and has concluded that no provision for income tax is required in the Funds’ financial statements. If applicable, the Funds recognize interest accrued related to unrecognized tax benefits in interest and penalties expense in Other on the Statements of Operations. The Funds identify their major tax jurisdictions as U.S. Federal, the state of Florida, and foreign jurisdictions where the Funds make significant investments; however the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to different treatment for items including, but not limited to wash sales, net operating losses and capital loss carryforwards.
Therefore, distributions determined in accordance with tax regulations may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. There were no reclassifications for the fiscal year ended October 31, 2011.
| | | | |
| | | | | |
| Transamerica Funds | | Page 51 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
The capital loss carryforwards are available to offset future realized capital gains through the periods listed below.
| | | | | | | |
| Fund | | Capital Loss Carryforwards | | Available Through |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 23,403 | | | October 31, 2017 |
| Transamerica Asset Allocation — Conservative Portfolio | | | 1,840 | | | October 31, 2018 |
| Transamerica Asset Allocation — Growth Portfolio | | | 176,408 | | | October 31, 2017 |
| Transamerica Asset Allocation — Growth Portfolio | | | 25,849 | | | October 31, 2018 |
| Transamerica Asset Allocation — Growth Portfolio | | | 34,956 | | | October 31, 2019 |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 219,887 | | | October 31, 2017 |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 26,155 | | | October 31, 2018 |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 55,842 | | | October 31, 2019 |
| Transamerica Asset Allocation — Moderate Portfolio | | | 69,947 | | | October 31, 2017 |
| Transamerica Asset Allocation — Moderate Portfolio | | | 13,272 | | | October 31, 2018 |
| Transamerica Asset Allocation — Moderate Portfolio | | | 10,807 | | | October 31, 2019 |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 3,093 | | | October 31, 2017 |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 3,781 | | | October 31, 2018 |
| Transamerica Multi-Manager International Portfolio | | | 35,954 | | | October 31, 2016 |
| Transamerica Multi-Manager International Portfolio | | | 51,739 | | | October 31, 2017 |
| Transamerica Multi-Manager International Portfolio | | | 4,935 | | | October 31, 2018 |
The capital loss carryforwards utilized or expired during the year ended October 31, 2011 were as follows:
| | | | | |
| | | Capital Loss Carryforwards | |
| | | Utilized/Expired During the | |
| Fund | | Year Ended October 31, 2011 | |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 11,852 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 1,559 | |
| Transamerica Multi-Manager International Portfolio | | | 326 | |
The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to differences in book versus tax treatment. The tax character of distributions paid during 2011 and 2010 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2011 Distributions Paid From | | | 2010 Distributions Paid From | |
| | | | | | | Long-term | | | | | | | | | | | Long-term | | | | |
| | | Ordinary income | | | Capital Gain | | | Return of Capital | | | Ordinary income | | | Capital Gain | | | Return of Capital | |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 27,936 | | | $ | — | | | $ | — | | | $ | 33,276 | | | $ | — | | | $ | — | |
| Transamerica Asset Allocation — Growth Portfolio | | | 3,094 | | | | — | | | | — | | | | 8,843 | | | | — | | | | — | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 33,847 | | | | — | | | | — | | | | 63,765 | | | | — | | | | — | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 36,555 | | | | — | | | | — | | | | 61,102 | | | | — | | | | — | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 1,413 | | | | — | | | | — | | | | 5,281 | | | | — | | | | — | |
| Transamerica Multi-Manager International Portfolio | | | 1,696 | | | | — | | | | — | | | | 2,730 | | | | — | | | | — | |
The tax basis components of distributable earnings as of October 31, 2011 are as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Undistributed | | | | | | | Other | | | Net Unrealized | |
| | | Undistributed | | | Long-term | | | Capital Loss | | | Temporary | | | Appreciation | |
| Fund | | Ordinary income | | | Capital Gain | | | Carryforward | | | Differences | | | (Depreciation) * | |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 421 | | | $ | — | | | $ | (25,243 | ) | | $ | — | | | $ | 74,128 | |
| Transamerica Asset Allocation — Growth Portfolio | | | 2,302 | | | | — | | | | (237,213 | ) | | | — | | | | 145,234 | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 5,889 | | | | — | | | | (301,884 | ) | | | — | | | | 228,778 | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 13,387 | | | | — | | | | (94,026 | ) | | | — | | | | 163,207 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 3,302 | | | | — | | | | (6,874 | ) | | | — | | | | (14,893 | ) |
| Transamerica Multi-Manager International Portfolio | | | 1,277 | | | | — | | | | (92,628 | ) | | | — | | | | (13,509 | ) |
| | |
| * | | Amounts include unrealized gain/loss from wash sales, if applicable. |
NOTE 6. SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date of issuance of the financial statements, and determined that no other material events or transactions would require recognition or disclosure in the Funds’ financial statements.
| | | | |
| | | | | |
| Transamerica Funds | | Page 52 | | Annual Report 2011 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees & Shareholders of Transamerica Funds:
We have audited the accompanying statements of assets and liabilities of Transamerica Asset Allocation — Conservative Portfolio, Transamerica Asset Allocation — Growth Portfolio, Transamerica Asset Allocation — Moderate Growth Portfolio, Transamerica Asset Allocation — Moderate Portfolio, Transamerica Multi-Manager Alternative Strategies Portfolio, and Transamerica Multi-Manager International Portfolio, (the “Funds”) (six of the Funds of the Transamerica Funds), including the schedules of investments, as of October 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for periods ended prior to November 1, 2009 were audited by another independent registered public accounting firm whose report, dated December 21, 2009, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned six Funds of the Transamerica Funds at October 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
December 30, 2011
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| Transamerica Funds | | Page 53 | | Annual Report 2011 |
TRANSAMERICA ASSET ALLOCATION — CONSERVATIVE PORTFOLIO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Asset Allocation — Conservative Portfolio (the “Portfolio”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Portfolio between TAM and Morningstar Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Portfolio, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Portfolio in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Portfolio. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Portfolio as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Portfolio’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Portfolio. The Board considered the short and longer-term performance of the Portfolio in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Portfolio was in line with the median for its peer universe for the past 1-year period, below the median for the past 3-year period and above the median for the past 5-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Portfolio and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Portfolio, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Portfolio’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Portfolio were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Portfolio, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Portfolio grows. The Trustees considered the economies of scale with respect to the management of the Portfolio, whether the Portfolio had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Portfolio. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Portfolio are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Portfolio.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Portfolio in a professional manner that is consistent with the best interests of the Portfolio and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolio, reflected by TAM’s expense limitation arrangement with the Portfolio, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 54 | | Annual Report 2011 |
TRANSAMERICA ASSET ALLOCATION — GROWTH PORTFOLIO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Asset Allocation — Growth Portfolio (the “Portfolio”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Portfolio between TAM and Morningstar Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Portfolio, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Portfolio in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Portfolio. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Portfolio as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Portfolio’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Portfolio. The Board considered the short and longer-term performance of the Portfolio in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Portfolio was below the median for its peer universe for the past 1- and 3-year periods and in line with the median for the past 5-year period. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Portfolio. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Portfolio and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Portfolio, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Portfolio’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Portfolio were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Portfolio, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Portfolio grows. The Trustees considered the economies of scale with respect to the management of the Portfolio, whether the Portfolio had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Portfolio. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Portfolio are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Portfolio.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Portfolio in a professional manner that is consistent with the best interests of the Portfolio and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolio, reflected by TAM’s expense limitation arrangement with the Portfolio, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement
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| Transamerica Funds | | Page 55 | | Annual Report 2011 |
TRANSAMERICA ASSET ALLOCATION — MODERATE GROWTH PORTFOLIO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Asset Allocation — Moderate Growth Portfolio (the “Portfolio”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Portfolio between TAM and Morningstar Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Portfolio, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Portfolio in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Portfolio. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Portfolio as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Portfolio’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Portfolio. The Board considered the short and longer-term performance of the Portfolio in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Portfolio was in line with the median for its peer universe for the past 1- and 5-year periods and below the median for the past 3-year period. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Portfolio. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Portfolio and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Portfolio, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Portfolio’s contractual management fee was in line with the median for its peer group and below the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Portfolio were in line with the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Portfolio, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Portfolio grows. The Trustees considered the economies of scale with respect to the management of the Portfolio, whether the Portfolio had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Portfolio. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Portfolio are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Portfolio.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Portfolio in a professional manner that is consistent with the best interests of the Portfolio and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolio, reflected by TAM’s expense limitation arrangement with the Portfolio, which may result in TAM waiving fees for the benefit of shareholders.
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| Transamerica Funds | | Page 56 | | Annual Report 2011 |
TRANSAMERICA ASSET ALLOCATION — MODERATE PORTFOLIO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Asset Allocation — Moderate Portfolio (the “Portfolio”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Portfolio between TAM and Morningstar Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Portfolio, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Portfolio in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Portfolio. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Portfolio as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Portfolio’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Portfolio. The Board considered the short and longer-term performance of the Portfolio in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Portfolio was in line with the median for its peer universe for the past 1- and 3-year periods and above the median for the past 5-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Portfolio and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Portfolio, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Portfolio’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Portfolio were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Portfolio, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Portfolio grows. The Trustees considered the economies of scale with respect to the management of the Portfolio, whether the Portfolio had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Portfolio. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Portfolio are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Portfolio.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Portfolio in a professional manner that is consistent with the best interests of the Portfolio and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolio, reflected by TAM’s expense limitation arrangement with the Portfolio, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 57 | | Annual Report 2011 |
TRANSAMERICA MULTI-MANAGER ALTERNATIVE STRATEGIES PORTFOLIO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Multi-Manager Alternative Strategies Portfolio (the “Portfolio”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Portfolio between TAM and Morningstar Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Portfolio, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Portfolio in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Portfolio. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Portfolio as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Portfolio’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Portfolio. The Board considered the short and longer-term performance of the Portfolio in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Portfolio was below the median for its peer universe for the past 1-year period and above the median for the past 3-year period. The Board noted the challenges of finding a truly comparable peer group given the Portfolio’s unique nature. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Portfolio and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Portfolio, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Portfolio’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Portfolio were above the medians for its peer group and peer universe. The Board noted the limited size of the Portfolio’s peer group due to the Portfolio’s unique nature. The Trustees noted the profitability of the relationship between the Portfolio, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Portfolio grows. The Trustees considered the economies of scale with respect to the management of the Portfolio, whether the Portfolio had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Portfolio. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Portfolio are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Portfolio.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Portfolio in a professional manner that is consistent with the best interests of the Portfolio and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolio, reflected by TAM’s expense limitation arrangement with the Portfolio, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 58 | | Annual Report 2011 |
TRANSAMERICA MULTI-MANAGER INTERNATIONAL PORTFOLIO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Multi-Manager International Portfolio (the “Portfolio”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Portfolio between TAM and Morningstar Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Portfolio, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Portfolio in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Portfolio. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Portfolio as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Portfolio’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Portfolio. The Board considered the short and longer-term performance of the Portfolio in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Portfolio was above the median for its peer universe for the past 1- and 3-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Portfolio and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Portfolio, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Portfolio’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Portfolio were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Portfolio, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Portfolio grows. The Trustees considered the economies of scale with respect to the management of the Portfolio, whether the Portfolio had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Portfolio. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Portfolio are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Portfolio.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Portfolio in a professional manner that is consistent with the best interests of the Portfolio and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolio, reflected by TAM’s expense limitation arrangement with the Portfolio, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 59 | | Annual Report 2011 |
SUPPLEMENTAL INFORMATION (unaudited)
TAX INFORMATION
For dividends paid during the year ended October 31, 2011, the Funds designated the following as qualified dividend income:
| | | | | |
| | | Qualified Dividend | |
| Fund | | Income (000’s) | |
| Transamerica Asset Allocation — Conservative Portfolio | | $ | 4,101 | |
| Transamerica Asset Allocation — Growth Portfolio | | | 14,683 | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 20,950 | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 10,538 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 507 | |
| Transamerica Multi-Manager International Portfolio | | | 2,578 | |
For corporate shareholders, investment income (dividend income plus short-term gains, if any) qualifies for the dividends received deductions as follows:
| | | | | |
| | | Dividend Received | |
| Fund | | Deduction Percentage | |
| Transamerica Asset Allocation — Conservative Portfolio | | | 11.59 | % |
| Transamerica Asset Allocation — Growth Portfolio | | | 100.00 | |
| Transamerica Asset Allocation — Moderate Growth Portfolio | | | 39.39 | |
| Transamerica Asset Allocation — Moderate Portfolio | | | 17.79 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 3.07 | |
| Transamerica Multi-Manager International Portfolio | | | 1.40 | |
For tax purposes, there were no Long-Term Capital Gain Designations for the year ended October 31, 2011.
The information and distributions reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2011. Complete information will be computed and reported in conjunction with your 2011 Form 1099-DIV.
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| Transamerica Funds | | Page 60 | | Annual Report 2011 |
TRANSAMERICA FUNDS
Management of the Funds
(unaudited)
The Board Members and executive officers of the Trust are listed below. The Board governs each fund and is responsible for protecting the interests of the shareholders. The Board Members are experienced executives who meet periodically throughout the year to oversee the business affairs of each fund and the operation of the Trust by its officers. The Board also reviews the management of each fund’s assets by the investment adviser and its respective sub-adviser. The funds are among the funds advised and sponsored by TAM (collectively, “Transamerica Asset Management Group”). Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Income Shares, Inc. (“TIS”), Transamerica Partners Funds Group (“TPFG”), Transamerica Partners Funds Group II (“TPFG II”), Transamerica Partners Portfolios (“TPP”), and Transamerica Asset Allocation Variable Funds (“TAAVF”) and consists of 164 funds as of the date of this report.
The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their year of birth, their positions with the Trust, and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| INTERESTED BOARD MEMBER** | | | | | | | |
| |
| John K. Carter (1961) | | Chairman, Board Member, President, and Chief Executive Officer | | Since 1999 | | Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Chief Compliance Officer, General Counsel and Secretary (1999 — 2006), Transamerica Funds and TST; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (2002 — 2006), General Counsel, Secretary and Chief Compliance Officer (2002 — 2006), TIS; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer (2006 — present), Director (2002 — present), Senior Vice President (1999 — 2006), General Counsel and Secretary (2000 — 2006), Chief Compliance Officer (2004 — 2006), TAM; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2002 — present), General Counsel and Secretary (2001 — 2006), Transamerica Fund Services, Inc. (“TFS”); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, AFSG Securities Corporation (2001 — present); | | | | | | |
| | | | |
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| Transamerica Funds | | Page 61 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | | | | | Complex | | |
| | | | | Term of | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Office and Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| | | | | | | Chairman and Board Member (2008 — 2010), President (2007 — 2010), Chief Executive Officer (2006 — 2010), Vice President, Secretary and Chief Compliance Officer (2003 — 2006), Transamerica Investors, Inc. (“TII”); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 — 2004); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, (2008 — present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 — 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 — 2005). | | | | | | |
| | | | | | | | | | | | | |
INDEPENDENT BOARD MEMBERS*** | | | | | | | |
| | | | | | | | | | | | | |
| Sandra N. Bane (1952) | | Board Member | | Since 2008 | | Retired (1999 — present);
Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 — present);
Board Member, TII (2003 — 2010); and Partner, KPMG (1975 — 1999). | | | 164 | | | Big 5 Sporting Goods (2002 — present); AGL Resources, Inc. (energy services holding company) (2008 -present) |
| | | | | | | | | | | | | |
| Leo J. Hill (1956) | | Lead Independent
Board Member | | Since 2002 | | Principal, Advisor Network Solutions, LLC (business consulting) (2006 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TST (2001 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds and TIS (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, L. J. Hill & Company (a holding company for privately — held assets) (1999 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Market President, Nations Bank of Sun Coast Florida (1998 — 1999); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer, Barnett Banks of Treasure Coast Florida (1994 — 1998); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Executive Vice President and Senior Credit Officer, Barnett Banks of Jacksonville, Florida (1991 — 1994); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Senior Vice President and Senior Loan Administration Officer, Wachovia Bank of Georgia (1976 — 1991). | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 62 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| David W. Jennings (1946) | | Board Member | | Since 2009 | | Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2009 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Managing Director, Hilton Capital (2010 — 2011); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Principal, Maxam Capital Management, LLC (2006 — 2008); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Principal, Cobble Creek Management LP (2004 — 2006). | | | | | | |
| | | | | | | | | | | | | |
| Russell A. Kimball, Jr. (1944) | | Board Member | | 1986 — 1990 and Since 2002 | | General Manager, Sheraton Sand Key Resort (1975 — present);
Board Member, TST (1986 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, (1986 — 1990), (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TIS (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010). | | | | | | |
| | | | | | | | | | | | | |
| Eugene M. Mannella (1954) | | Board Member | | Since 2007 | | Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Self-employed consultant (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Managing Member and Chief Compliance Officer, HedgeServ Investment Services, LLC (limited purpose broker-dealer) (April 2011 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 — 2008); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, International Fund Services (alternative asset administration) (1993 — 2005). | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 63 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex
Overseen | | |
| Name and Year of | | Position(s) Held | | Office and Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| Norman R. Nielsen, Ph.D. (1939) | | Board Member | | Since 2006 | | Retired (2005 — present);
Board Member, Transamerica Funds, TST and TIS (2006 — present);
Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | 164 | | | Buena Vista University Board of Trustees (2004 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, Iowa Student Loan Service Corporation (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, League for Innovation in the Community Colleges (1985 — 2005); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, lowa Health Systems (1994 - 2003); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, U.S. Bank (1985 — 2006); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, Kirkwood Community College (1985 — 2005). | | | | | | |
| | | | | | | | | | | | | |
| Joyce G. Norden (1939) | | Board Member | | Since 2007 | | Retired (2004 — present);
Board Member, TPFG, TPFG II and TAAVF (1993 — present);
Board Member, TPP (2002 — present); | | | 164 | | | Board of Governors, Reconstruction -ist Rabbinical College (2007 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 — 2004). | | | | | | |
| | | | | | | | | | | | | |
| Patricia L. Sawyer (1950) | | Board Member | | Since 2007 | | Retired (2007 — present);
President/Founder, Smith & Sawyer LLC (management consulting) (1989 — 2007);
Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | 164 | | | Honorary Trustee,
Bryant
University (1996
— present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Trustee, Chair of Finance Committee and Chair of Nominating Committee (1987 — 1996), Bryant University; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, American Express (1987 — 1989); | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 64 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| | | | | | | Vice President, The Equitable (1986 — 1987); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Strategy Consultant, Booz, Allen & Hamilton (1982 — 1986). | | | | | | |
| | | | | | | | | | | | | |
| John W. Waechter (1952) | | Board Member | | Since 2005 | | Attorney, Englander and Fischer, LLP (2008 — present);
Retired (2004 — 2008);
Board Member, TST and TIS (2004 — present);
Board Member, Transamerica Funds (2005 — present); | | | 164 | | | Operation PAR, Inc. (2008 — present); West Central Florida Council — Boy Scouts of America (2008 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Employee, RBC Dain Rauscher (securities dealer) (2004); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Executive Vice President, Chief Financial Officer and Chief Compliance Officer, William R. Hough & Co. (securities dealer) (1979 — 2004); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Treasurer, The Hough Group of Funds (1993 — 2004). | | | | | | |
| | |
| * | | Each Board Member shall hold office until: 1) his or her successor is elected and qualified or 2) he or she resigns, retires or his or her term as a Board Member is terminated in accordance with the Trust’s Declaration of Trust. |
| |
| ** | | May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Trust because of his employment with TAM or an affiliate of TAM. |
| |
| *** | | Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Trust. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 65 | | Annual Report 2011 |
OFFICERS
The mailing address of each officer is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The following table shows information about the officers, including their year of birth, their positions held with the Trust and their principal occupations during the past five years (their titles may have varied during that period). Each officer will hold office until his or her successor has been duly elected or appointed or until his or her earlier death, resignation or removal.
| | | | | | | |
| | | | | Term of Office | | |
| | | | | and Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
| John K. Carter (1961) | | Chairman, Board Member, President, and Chief Executive Officer | | Since 1999 | | See the table above. |
| | | | | | | |
| Dennis P. Gallagher (1970) | | Vice President, General Counsel and Secretary | | Since 2006 | | Vice President, General Counsel and Secretary, Transamerica Funds, TST and TIS (2006 — present); |
| | | | | | | |
| | | | | | | Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 — present); |
| | | | | | | |
| | | | | | | Vice President, General Counsel and Secretary, TII, (2006 — 2010); |
| | | | | | | |
| | | | | | | Director, Senior Vice President, General Counsel, Operations and Secretary, TAM (2006 — present); |
| | | | | | | |
| | | | | | | Director, Senior Vice President, General Counsel, Chief Administrative Officer and Secretary, TFS (2006 — present); |
| | | | | | | |
| | | | | | | Assistant Vice President, TCI (2007 — present); |
| | | | | | | |
| | | | | | | Director, Deutsche Asset Management (1998 — 2006); and |
| | | | | | | |
| | | | | | | Corporate Associate, Ropes & Gray LLP (1995 — 1998). |
| | | | | | | |
| Christopher A. Staples (1970) | | Vice President and Chief Investment Officer | | Since 2005 | | Vice President and Chief Investment Officer (2007 — present), Senior Vice President — Investment Management (2006 — 2007), Vice President — Investment Management (2005 — 2006), Transamerica Funds, TST and TIS; |
| | | | | | | |
| | | | | | | Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); |
| | | | | | | |
| | | | | | | Vice President and Chief Investment Officer (2007 — 2010); Vice President — Investment Administration (2005 — 2007), TII; |
| | | | | | | |
| | | | | | | Director (2005 — present), Senior Vice President — Investment Management (2006 — present) and Chief Investment Officer (2007 — present), TAM; |
| | | | | | | |
| | | | | | | Director, TFS (2005 — present); and |
| | | | | | | |
| | | | | | | Assistant Vice President, Raymond James & Associates (1999 — 2004). |
| | | | |
| | | | | |
| Transamerica Funds | | Page 66 | | Annual Report 2011 |
| | | | | | | |
| | | | | Term of Office
and | | |
| | | | | Length of Time | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Served* | | Employment During Past 5 Years |
Elizabeth Strouse
(1974) | | Vice President, Treasurer and Principal Financial Officer | | Since 2010 | | Vice President, Treasurer and Principal Financial Officer (December 2011 — present), Assistant Treasurer (2010 — December 2011), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF; |
| | | | | | | |
| | | | | | | Director, Fund Financial Services (2009 — 2011), TFS; |
| | | | | | | |
| | | | | | | Director, Fund Administration, TIAA-CREF (2007 — 2009); and |
| | | | | | | |
| | | | | | | Manager (2006 — 2007) and Senior (2003 — 2006) Accounting and Assurance, PricewaterhouseCoopers, LLC. |
| | | | | | | |
Robert S. Lamont, Jr.
(1973) | | Vice President, Chief Compliance Officer and Conflicts of Interest Officer | | Since 2010 | | Vice President, Chief Compliance Officer and Conflicts of Interest Officer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2010 — present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, TAM and TFS (2007 — present); |
| | | | | | | |
| | | | | | | Senior Counsel, United States Securities and Exchange Commission (2004 — 2007); and |
| | | | | | | |
| | | | | | | Associate, Dechert, LLP (1999 — 2004). |
| | | | | | | |
Bradley O. Ackerman
(1966) | | Anti-Money
Laundering Officer | | Since 2007 | | Anti-Money Laundering Officer, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Anti-Money Laundering Officer, Transamerica Funds (2007 — present); |
| | | | | | | |
| | | | | | | Senior Compliance Officer, TAM (2007 — present); and |
| | | | | | | |
| | | | | | | Director, Institutional Services, Rydex Investments (2002 — 2007). |
| | | | | | | |
Sarah L. Bertrand
(1967) | | Assistant Secretary | | Since 2009 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary, TII (2009 — 2010); |
| | | | | | | |
| | | | | | | Assistant Vice President and Director, Legal Administration, TAM and TFS (2007 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary and Chief Compliance Officer, 40|86 Series Trust and 40|86 Strategic Income Fund (2000 — 2007); and |
| | | | | | | |
| | | | | | | Second Vice President and Assistant Secretary, Legal and Compliance, 40|86 Capital Management, Inc. (1994 — 2007). |
| | | | | | | |
Timothy J. Bresnahan
(1968) | | Assistant Secretary | | Since 2009 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary, TII (2009 — 2010); |
| | | | | | | |
| | | | | | | Counsel, TAM (2008 — present); |
| | | | | | | |
| | | | | | | Counsel (contract), Massachusetts Financial Services, Inc. (2007); |
| | | | |
| | | | | |
| Transamerica Funds | | Page 67 | | Annual Report 2011 |
| | | | | | | |
| | | | | Term of Office | | |
| | | | | and Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
| | | | | | | Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 — 2007); and |
| | | | | | | |
| | | | | | | Associate, Greenberg Traurig, P.A. (2004 — 2005). |
| | | | | | | |
| Margaret A. Cullem-Fiore (1957) | | Assistant Secretary | | Since 2010 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2010 — present); |
| | | | | | | |
| | | | | | | Assistant Vice President, TCI (2009 — present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, TAM and TFS (2006 — present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, Transamerica Financial Advisors, Inc. (2004 — 2007); and |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, Western Reserve Life Assurance Co. of Ohio (2006). |
| | |
| * | | Elected and serves at the pleasure of the Board of the Trust. |
If an officer has held offices for different funds for different periods of time, the earliest applicable date is shown. No officer of the Trust, except for the Chief Compliance Officer, receives any compensation from the Trust.
Additional information about the Funds’ Board Members can be found in the Statement of Additional Information, available, without charge, upon request, by calling toll free 1 -888-233-4339 or on the Trust’s website at www.transamericainvestments.com.
| | | | |
| | | | | |
| Transamerica Funds | | Page 68 | | Annual Report 2011 |
PROXY VOTING POLICIES AND PROCEDURES AND QUARTERLY PORTFOLIO HOLDINGS
(unaudited)
A description of the Transamerica Funds’ proxy voting policies and procedures is available in the Statement of Additional Information of the Funds, available without charge upon request by calling 1-888-233-4339 (toll free) or on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
In addition, the Funds are required to file Form N-PX, with their complete proxy voting records for the 12 months ended June 30th, no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-888-233-4339; and (2) on the SEC’s website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q, which is available on the SEC’s website at http://www.sec.gov. The Funds’ Form N-Q 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 1-800-SEC-0330.
You may also visit the Trust’s website at www.transamericainvestments.com for this and other information about the Funds and the Trust.
Important Notice Regarding Delivery of Shareholder Documents
Every year we send shareholders informative materials such as the Transamerica Funds Annual Report, the Transamerica Funds Prospectus, and other required documents that keep you informed regarding your Funds. Transamerica Funds will only send one piece per mailing address, a method that saves your Funds money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Customer Service Representative toll free at 1-888-233-4339, 8 a.m. to 7 p.m. Eastern Time, Monday-Friday. Your request will take effect within 30 days.
| | | | |
| | | | | |
| Transamerica Funds | | Page 69 | | Annual Report 2011 |
NOTICE OF PRIVACY POLICY
(unaudited)
Your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.
What Information We Collect and From Whom We Collect It
We may collect nonpublic personal information about you from the following sources:
| • | | Information we receive from you on applications or other forms, such as your name, address, and account number; |
| |
| • | | Information about your transactions with us, our affiliates, or others, such as your account balance and purchase/redemption history; and |
| |
| • | | Information we receive from non-affiliated third parties, including consumer reporting agencies. |
What Information We Disclose and To Whom We Disclose It
We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.
Our Security Procedures
We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.
If you have any questions about our Privacy Policy, please call 1-888-233-4339 on any business day between 8 a.m. and 7 p.m. Eastern Time.
Note: This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of our funds in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.
| | | | |
| | | | | |
| Transamerica Funds | | Page 70 | | Annual Report 2011 |
P.O. Box 9012
Clearwater, FL 33758-9012
Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.
Open Funds
Annual Report
October 31, 2011
www.transamericainvestments.com
Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.
Dear Fellow Shareholder,
On behalf of Transamerica Funds, we would like to thank you for your continued support and confidence in our products as we look forward to continuing to serve you and your financial adviser in the future. We value the trust you have placed in us.
This annual report is provided to you with the intent of presenting a comprehensive review of the investments of each of your funds. The Securities and Exchange Commission requires that annual and semi-annual reports be sent to all shareholders, and we believe this report to be an important part of the investment process. In addition to providing a comprehensive review, this report also provides a discussion of accounting policies as well as matters presented to shareholders that may have required their vote.
We believe it is important to understand market developments that took place over the last year in order to provide a context when reading this report. Last fall, U.S. economic growth was being restrained by persistent high unemployment and high government debt levels. In response, the Federal Reserve began implementing a second round of monetary stimulus known as quantitative easing (“QE2”). This effort began pumping what would eventually total $600 billion into the U.S. economy. As a result, the U.S. economy and corporate earnings began picking up steam throughout the winter. Corporate equity and bond markets followed suit. At the same time, commodities prices and inflation began surging. In order to fight the inflation the Federal Reserve stimulus was creating, most central banks across the globe tightened monetary policy. In spring, this global tightening collided with a global supply chain disruption caused by the Japanese tsunami. As a result, the global economy began slowing in late spring. As summer arrived, concerns about U.S. and European debt levels began resurfacing. Developments came to a head in late summer as the credit rating of the U.S. was lowered and Europe faced the possibility of a sovereign debt default. As a result, the global equity and corporate bond markets fell sharply while U.S. Treasuries rallied as investors sought safety. Fortunately, commodity prices also fell, putting more disposable income in consumer pockets. As summer transitioned to fall, the U.S. economy re-strengthened. As a result, the U.S. corporate equity and bond markets responded by recovering much of the summer’s losses. For the twelve months ending October 31, 20l1, the Dow Jones Industrial Average returned 10.39%, the Standard & Poor’s 500® Index returned 8.09%, and the Barclays Capital U.S. Aggregate Bond Index returned 5.00%. However, the rest of the global economy continued to experience slowing growth as previous tightening remained mostly in place and government austerity programs continued to be implemented. So, despite European politicians’ efforts to address default fears, European and Asian markets failed to recover the summer’s losses and as a result the MSCI World ex-US returned (3.25)% for the year ending October 31, 2011. Please keep in mind it is important to maintain a diversified portfolio as investment returns have historically been difficult to predict.
In addition to your active involvement in the investment process, we firmly believe that a financial adviser is a key resource to help you build a complete picture of your current and future financial needs. Financial advisers are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial adviser, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.
Please contact your financial adviser if you have any questions about the contents of this report, and thanks again for the confidence you have placed in us.
Sincerely,
| | | |
|
| John K. Carter | | Christopher A. Staples |
| Chairman of the Board, | | Vice President & Chief Investment Officer |
| President & Chief Executive Officer | | Transamerica Funds |
| Transamerica Funds | | |
The views expressed in this report reflect those of the portfolio managers only and may not necessarily represent the views of Transamerica Funds. These views are subject to change based upon market conditions. These views should not be relied upon as investment advice and are not indicative of trading intent on behalf of Transamerica Funds.
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
(unaudited)
MARKET ENVIRONMENT
The fiscal year ended October 31, 2011, was a volatile one marked by several fits and starts in the US economy, government policy intervention domestically and abroad, and numerous domestic and international shocks. As a result, US treasury interest rates fell (particularly on the long end), credit spreads widened (particularly within financials), and equities modestly advanced.
During the period, the two largest drivers of uncertainty were the European sovereign and banking crisis and US economic growth. As it relates to Europe, the sovereign crisis spilled over to the European banking sector while, during much of the period, policy makers in Europe lacked a coordinated, credible, and urgent response. However, during the last few months of the period, policy makers expanded the European Financial Stability Facility (“EFSF”), agreed to larger haircuts on Greek sovereign debt, expanded tough fiscal austerity measures in some of the most problematic nations, and agreed on terms to recapitalize their banking system. Nevertheless, many of these measures still require more details as well as implementation.
As it relates to US economic growth, the recovery was tepid with some fearing a double dip recession. Consumer spending continued on a moderate pace while housing appeared to have bottomed. However, unemployment remained stubbornly high and manufacturing had fits and starts due to both lower confidence as well as a supply disruption from the earthquake and tsunami in Japan. Further, a US government spending slowdown also weighed on growth. In addition, political squabbling over the US government debt ceiling and budget cuts added to some of this uncertainty. This resulted in a Standard & Poor’s downgrade of US government debt.
In addition to the issues in Europe there was a fair amount of geopolitical tensions in the Middle East, helping to push oil prices higher. However, corporate profitability continued to be robust due to improved productivity, a cheap dollar, a healthy funding environment, and good overseas demand.
Against this backdrop the Federal Reserve Board (“Fed”) held rates at historically low levels, instituted the second round of quantitative easing (“QE2”), committed to hold the Fed Funds rate at record low levels through mid 2013, and embarked on a new program called Operation Twist in order to drive down longer maturity interest rates.
PERFORMANCE
For the year ended October 31, 2011, Transamerica AEGON Flexible Income Class A returned 3.93%. By comparison, its benchmark, the Barclays Capital U.S. Aggregate Bond Index (“BCAB”), returned 5.00%.
Prior to March 22, 2011, the fund was named Transamerica Flexible Income and had a different sub-adviser.
STRATEGY REVIEW
Transamerica AEGON Flexible Income maintained a higher yield but underperformed the BCAB due to the widening of corporate credit spreads and the fund’s lower than index duration. Throughout the period, the fund was positioned with a shorter than index duration, which was additive to the portfolio during the first half of the year, but detracted from performance in the later portion of the year as investors looked through the current inflation picture and focused on the relative strength of treasuries as an investment and rates rallied.
During the year, we found minimal value in US treasury and agency mortgage-backed securities (“MBS”), given the Fed’s influence, and maintained an underweight to these sectors. Within securitized sectors, we continued our weighting to non-agency MBS through Real Estate Mortgage Investment Conduits (“REMICs”), which performed well due to competitive yields, and their robust structure.
Corporate bonds, investment grade and high yield were the largest overweights during the year due to our belief that these sectors have some of the best fundamentals and offer some of the highest yields in the bond universe. Our main sector exposures were in financials, where we continue to believe that the overall credit quality continues to improve, and bonds backed by hard assets, such as energy or metals and mining companies.
Brian W. Westhoff, CFA
Bradley J. Beman, CFA, CPA
Jim Schaeffer
David Halfpap
Rick Perry
Co-Portfolio Managers
AEGON USA Investment Management, LLC
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| | | | | |
| Transamerica Funds | | Page 1 | | Annual Report 2011 |
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date |
| |
| Class A (NAV) | | | 3.93 | % | | | 4.53 | % | | | 4.49 | % | | 06/29/1987 |
| Class A (POP) | | | (1.03 | )% | | | 3.51 | % | | | 3.98 | % | | 06/29/1987 |
| Barclays Capital U.S. Aggregate Bond* | | | 5.00 | % | | | 6.41 | % | | | 5.46 | % | | 06/29/1987 |
| |
| Class B (NAV) | | | 2.96 | % | | | 3.75 | % | | | 3.93 | % | | 10/01/1995 |
| Class B (POP) | | | (1.94 | )% | | | 3.59 | % | | | 3.93 | % | | 10/01/1995 |
| |
| Class C (NAV) | | | 3.21 | % | | | 3.89 | % | | | 3.77 | % | | 11/11/2002 |
| Class C (POP) | | | 2.23 | % | | | 3.89 | % | | | 3.77 | % | | 11/11/2002 |
| |
| Class I (NAV) | | | 4.19 | % | | | N/A | | | | 8.94 | % | | 11/30/2009 |
| |
| Class I2 (NAV) | | | 4.31 | % | | | 5.09 | % | | | 4.62 | % | | 11/08/2004 |
| |
NOTES
| | |
| * | | The Barclays Capital U.S. Aggregate Bond Index (“Barclays Capital U.S. Aggregate Bond”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and I2 shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in bond funds entails interest rate and credit risk as well as additional risks in that the fund may invest in high-yield/high-risk bonds and is subject to greater levels of liquidity risk, which are described in more detail in the prospectus. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
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| Transamerica Funds | | Page 2 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
(unaudited)
MARKET ENVIRONMENT
Transamerica AEGON High Yield Bond performed well during the first nine months of the fiscal year as the Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index gained during the November 2010 to July 2011 time period. The gains were the result of a generally positive economic outlook and improving corporate earnings combined with accommodative monetary policy. The market subsequently retreated as recession and European sovereign debt concerns reached their peak. As a result, the benchmark declined during August and September before recovering some in October as those fears diminished to finish the fiscal year with a 5.17% gain.
After setting back-to-back annual records for bond issuance, the high yield market slowed in the latter half of 2011, but continues on pace for the second best year on record. Liquidity generally remains high and issuers have capitalized on the strength of the markets to improve debt maturity schedules and reduce funding costs. We believe the capital markets will remain robust in the near term as investors continue to seek yield, particularly high yield which offers attractive income relative to investment grade and government alternatives.
We also believe investors will benefit from stability of cash flow during the coming year as a result of a low default rate environment.
PERFORMANCE
For the year ended October 31, 2011, Transamerica AEGON High Yield Bond Class A returned 4.41%. By comparison, its primary and former benchmarks, the Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index and the Bank of America Merrill Lynch U.S. High-Yield, Cash Pay Index, returned 5.17% and 4.81%, respectively.
STRATEGY REVIEW
After adjusting the fund’s return to a gross of fees basis, Transamerica AEGON High Yield Bond outperformed the benchmark index for the fiscal year ended October 31, 2011. The basic industry sector provided the greatest contribution to performance as an overweight to the paper and forest products industry within the sector performed well. An overweight position in electric utilities as well as an underweight to the communications industry also contributed to the fund’s performance.
The portfolio underperformed in the areas of energy, financial companies and consumer cyclicals. An underweight position in independent energy producers provided the largest negative relative performance. Overweight positions in financial companies as well as consumer cyclicals also detracted from performance on a relative basis. The portfolio currently maintains an overweight position in cyclical sectors such as consumer cyclicals, electric utilities and insurance. The portfolio is underweight energy, capital goods and communications as we believe they offer lower risk/reward opportunities.
Despite concerns of an economic slowdown in the United States and abroad, recent economic reports indicate a slow to moderate economic expansion with continued expectations of low inflation. Monetary policy is believed to remain accommodative for the foreseeable future and debt issuers are benefiting from a low yield environment. As a result, we believe corporate fundamentals will continue to improve. We also believe the fund will continue to perform well as the economy slowly improves and attractive yield producing alternatives diminish. The portfolio is positioned towards a view that we remain in a modest economic recovery and we believe the fund will outperform in that environment.
Kevin Bakker, CFA
Bradley J. Beman, CFA, CPA
Benjamin D. Miller, CFA
Jim Schaeffer
Co-Portfolio Managers
AEGON USA Investment Management, LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 3 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date |
| |
| Class A (NAV) | | | 4.41 | % | | | 7.38 | % | | | 6.93 | % | | 06/14/1985 |
| Class A (POP) | | | (0.58 | )% | | | 6.33 | % | | | 6.41 | % | | 06/14/1985 |
| Barclays Capital U.S. Corporate High Yield 2% Issuer Capped* | | | 5.17 | % | | | 8.22 | % | | | 9.26 | % | | 06/14/1985 |
| BofA Merrill Lynch U.S. High Yield, Cash Pay* | | | 4.81 | % | | | 7.76 | % | | | 8.78 | % | | 06/14/1985 |
| |
| Class B (NAV) | | | 3.81 | % | | | 6.63 | % | | | 6.33 | % | | 10/01/1995 |
| Class B (POP) | | | (1.08 | )% | | | 6.48 | % | | | 6.33 | % | | 10/01/1995 |
| |
| Class C (NAV) | | | 3.84 | % | | | 6.71 | % | | | 7.85 | % | | 11/11/2002 |
| Class C (POP) | | | 2.86 | % | | | 6.71 | % | | | 7.85 | % | | 11/11/2002 |
| |
| Class I (NAV) | | | 4.95 | % | | | N/A | | | | 10.83 | % | | 11/30/2009 |
| |
| Class I2 (NAV) | | | 5.06 | % | | | 7.92 | % | | | 7.39 | % | | 11/08/2004 |
| |
| Class P(NAV) | | | 4.81 | % | | | N/A | | | | 10.67 | % | | 11/20/2009 |
| |
NOTES
| | |
| * | | The Bank of America Merrill Lynch U.S. High-Yield, Cash Pay Index (“BofA Merrill Lynch U.S. High-Yield Cash Pay”) served as the benchmark for the fund prior to January 15, 2011, at which time it was replaced with the Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index (“Barclays Capital U.S. Corporate High Yield 2% Issuer Capped”). The BofA Merrill Lynch U.S. High Yield, Cash Pay and the Barclays Capital U.S. Corporate High Yield 2% Issuer Capped are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I, I2 and P shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in high-yield bonds (“junk bonds”) may be subject to greater volatility and risks as the income derived from these securities is not guaranteed and may be unpredictable and the value of these securities tends to decline when the interest rate increases. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 4 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
(unaudited)
MARKET ENVIRONMENT
The fiscal year ended October 31, 2011, was a volatile one marked by several fits and starts in the US economy, government policy intervention domestically and abroad, and numerous domestic and international shocks. As a result, US treasury interest rates fell (particularly on the long end), credit spreads widened (particularly within financials), and equities modestly advanced.
During the period, the two largest drivers of uncertainty were the European sovereign and banking crisis and US economic growth. As it relates to Europe, the sovereign crisis spilled over to the European banking sector while, during much of the period, policy makers in Europe lacked a coordinated, credible, and urgent response. However, during the last few months of the period, policy makers expanded the European Financial Stability Facility (“EFSF”), agreed to larger haircuts on Greek sovereign debt, expanded tough fiscal austerity measures in some of the most problematic nations, and agreed on terms to recapitalize their banking system. Nevertheless, many of these measures still require more details as well as implementation.
As it relates to US economic growth, the recovery was tepid with some fearing a double dip recession. Consumer spending continued on a moderate pace while housing appeared to have bottomed. However, unemployment remained stubbornly high and manufacturing had fits and starts due to both lower confidence as well as a supply disruption from the earthquake and tsunami in Japan. Further, a US government spending slowdown also weighed on growth. In addition, political squabbling over the US government debt ceiling and budget cuts added to some of this uncertainty. This resulted in a Standard & Poor’s downgrade of US government debt.
In addition to the issues in Europe there was a fair amount of geopolitical tensions in the Middle East, helping to push oil prices higher. However, corporate profitability continued to be robust due to improved productivity, a cheap dollar, a healthy funding environment, and good overseas demand.
Against this backdrop the Federal Reserve Board (“Fed”) held rates at historically low levels, instituted the second round of quantitative easing (“QE2”), committed to hold the Fed Funds rate at record low levels through mid 2013, and embarked on a new program called Operation Twist in order to drive down longer maturity interest rates.
PERFORMANCE
For the year ended October 31, 2011, Transamerica AEGON Short-Term Bond Class I2 returned 2.28%. By comparison, its benchmark, the Bank of America Merrill Lynch U.S. Corporate & Government 1-3 Years Index, returned 1.20%.
Prior to March 22, 2011, the fund was named Transamerica Short-Term Bond and had a different sub-adviser.
STRATEGY REVIEW
Transamerica AEGON Short-Term Bond maintained a higher yield and achieved a higher total return than the benchmark index. The portfolio had overweights in corporate bonds and non-agency mortgage-backed securities (“MBS”), and to a lesser extent overweights to asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”). We continued to find minimal value in US treasury and agency securities as well as agency MBS, and as a result maintained an underweight to these sectors.
Within corporate bonds, although that remained our largest overweight, we trimmed our exposure to this sector in both fully valued securities and within the financial sector in search of more diverse and better total return opportunities elsewhere. We did add to our exposure in industrials, emphasizing metals, mining, materials, communications, and transportation. Further, we continued to prefer bonds backed by hard assets. Our significantly higher yield than the index as well as our overweight to industrials added to performance while our exposure to financials, in particular banks, detracted from performance.
Within securitized sectors, we increased our weighting to non-agency MBS through Real Estate Mortgage Investment Conduits (“REMICS”), which performed well due to competitive yields, a slowing rate of decline in the housing market, and robust structure. Further, we continued to favor cell phone tower CMBS while also adding to opportunities in commercial real estate CMBS. Lastly, we increased our exposure to ABS, mainly within the niche ABS sectors that performed well.
Throughout the period, we maintained a shorter than index duration for the portfolio, which was a slight detractor from performance as rates rallied. However, the negative impact of this duration positioning was more than offset by our sector exposure and security selection.
Greg Haendel, CFA
Doug Weih
Garry Creed
Co-Portfolio Managers
AEGON USA Investment Management, LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 5 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class I2 (NAV) | | | 2.28 | % | | | 5.33 | % | | | 4.55 | % | | | 11/08/2004 | |
| BofA Merrill Lynch U.S. Corporate & Government 1-3 Yrs* | | | 1.20 | % | | | 4.06 | % | | | 3.60 | % | | | 11/08/2004 | |
| |
| Class A (NAV) | | | 2.01 | % | | | N/A | | | | 5.21 | % | | | 11/01/2007 | |
| Class A (POP) | | | (0.53 | )% | | | N/A | | | | 4.54 | % | | | 11/01/2007 | |
| |
| Class C (NAV) | | | 1.23 | % | | | N/A | | | | 4.44 | % | | | 11/01/2007 | |
| Class C (POP) | | | 0.24 | % | | | N/A | | | | 4.44 | % | | | 11/01/2007 | |
| |
| Class I (NAV) | | | 2.16 | % | | | N/A | | | | 4.42 | % | | | 11/30/2009 | |
| |
NOTES
| | |
| * | | The Bank of America Merrill Lynch U.S. Corporate & Government 1-3 Years Index (“BofA Merrill Lynch U.S. Corporate & Government 1-3 Yrs”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 2.5% for A shares or the maximum applicable contingent deferred sales charge and 1% (during the first 12 months) for Class C shares. There are no sales charges on Class I and I2 shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Short-term bond funds are exposed to many of the same risks that longer-term bond funds are subject to, including credit risk, inflation risk, interest rate risk and also foreign securities and mortgage-backed securities risk. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
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| Transamerica Funds | | Page 6 | | Annual Report 2011 |
Transamerica Logan Circle Emerging Markets Debt
(unaudited)
MARKET ENVIRONMENT
Over the past year the market’s reaction to various changes in global policy was manic. The last quarter of 2010 saw significant asset price appreciation in all risk assets (equities, high yield, emerging market corporate debt and lower quality sovereign debt) due to investor exuberance surrounding the Federal Reserve Board’s (“Fed”) commitment to a second round of quantitative easing (“QE2”). The buying frenzy in the latter part of 2010 and the 1st quarter of 2011 ran into a significant head wind in early 2011 as we witnessed declining global economic activity while liquidity programs were winding down. As we transitioned through the second quarter of 2011 we shifted from one crisis to another. It was either the never-ending crisis within the Eurozone or the grueling debt ceiling debate and eventual downgrade of the U.S. triple AAA status by Standard & Poor’s. The one constant over the entire year has been volatility, at times extreme.
During the period September 1, 2011 to September 22, 2011: risk assets sold off in unison during the month of September on escalating systemic risk concerns stemming from the fear of a European financial system meltdown. The European debt crisis intensified as the ever evolving Greek default question moved from “if and when” to “when and how big.” The issues in Europe continued to spread across the periphery causing Spain and Italy bond yields to climb. The higher peripheral spreads occurred despite attempts to alleviate the contagion through the expansion of bailout facilities as well as direct buying of Spanish and Italian bonds by the European Central Bank. In the absence of a grand solution investors remained concerned of systemic fallout. Further compounding the concerns in Europe was United States economic data deterioration, most notably confidence surveys, adding to investor fears.
During the period September 22, 2011 - October 31, 2011: if September was a “risk off” month we could easily categorize the month of October as a dramatic “risk on” period. The catalyst for the rally was expectations leading into a consensus Eurozone bailout proposal wherein they expanded the European Financial Stability Facility’s capacity to ring fence Greece, inject capital into systemically important financial institutions and provide additional support for peripheral countries such as Italy and Spain via some form of leverage. Liquidity, which was pitiful during the selloff, was extremely poor during the rally. The lack of inventory or available bonds made it very difficult for market participants to add risk during the market rally and resulted in a very rapid positive price change for risk sensitive bonds such as emerging market debt.
PERFORMANCE
For the period from inception August 31, 2011 through October 31, 2011, Transamerica Logan Circle Emerging Markets Debt Class A returned 0.04%. By comparison, its benchmark, the JPMorgan Emerging Markets Bond Global Index, returned 0.11%.
STRATEGY REVIEW
We build emerging market debt portfolios that rely on emerging market sovereign debt denominated in U.S. dollars, emerging market corporate debt and local currency denominated debt instruments. Not surprisingly, given the very obtuse market price action during the months since the fund’s inception date the portfolio endured significant NAV volatility. During the month of September the portfolio produced a negative 6.47% return followed by a positive 7.06% during October. We took advantage of negative price action to add to our highest conviction names. We were also opportunistic during the time period to hedge currency risk to dampen portfolio volatility. The largest price declines were in below investment grade emerging market corporate debt and local debt instruments (due to significant currency depreciation).
Our commitment to the emerging market corporate debt asset class detracted from returns during September as this asset class underperformed sovereign debt. Exposure to credits rated below investment grade contributed to a significant amount of portfolio volatility, these bonds declined by nearly 20 points over the month, only to fully retrace their move in October.
Scott Moses, CFA
Todd Howard, CFA
Co-Portfolio Managers
Logan Circle Partners, L.P.
| | | | |
| | | | | |
| Transamerica Funds | | Page 7 | | Annual Report 2011 |
Transamerica Logan Circle Emerging Markets Debt
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | |
| | | 10 Years or | | | |
| | | Life of Class | | | Inception Date |
| |
| Class A (NAV) | | | 0.04 | %(A) | | 08/31/2011 |
| Class A (POP) | | | (5.35 | )%(A) | | 08/31/2011 |
| JPMorgan Emerging Markets Bond Global* | | | 0.11 | % (A) | | 08/31/2011 |
| |
| Class C (NAV) | | | (0.08 | )%(A) | | 08/31/2011 |
| Class C (POP) | | | (0.98 | )% (A) | | 08/31/2011 |
| |
| Class I (NAV) | | | 0.14 | %(A) | | 08/31/2011 |
| |
| Class I2 (NAV) | | | 0.14 | %(A) | | 08/31/2011 |
| |
NOTES
| | |
| * | | The JPMorgan Emerging Markets Bond Global Index (“JPMorgan Emerging Markets Bond Global”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
| |
| (A) | | Not Annualized. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 4.75% for A shares or the maximum applicable contingent deferred sales charge and 1% (during the first 12 months) for Class C shares. There are no sales charges on Class I and I2 shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waiver and/or reimbursements are at the discretion of the Investment Adviser.
The risks of investing in foreign securities are magnified in emerging markets. These may include risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets. Debt investing is subject to credit risk, inflation risk, and interest rate risk. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 8 | | Annual Report 2011 |
Transamerica Morgan Stanley Capital Growth
(formerly, Transamerica Focus)
(unaudited)
MARKET ENVIRONMENT
The period from mid-April 2011 through the end of October was turbulent, as represented by the Standard & Poor’s 500® Index (“S&P 500”). The fund and its benchmark had negative returns over this time period. After the market retreated slightly in March due to political turmoil in the Middle East (which caused oil prices to rise) and a major natural disaster in Japan (which prompted fears of supply chain disruptions for the auto and electronics industries), it began to recover heading into the summer months. However, delays in approving an increase for the U.S. debt ceiling followed by the downgrade of U.S. bonds by credit rating agency Standard & Poor’s led to a major sell-off in the stock market in July and August. The European sovereign debt crisis also appeared to worsen during the period and its policy solutions continued to face significant political hurdles. Investors also began to fear that a double-dip recession was imminent in the developed world, although those concerns faded somewhat in October with positive surprises from some economic data in the U.S. and a well-received new debt management plan in the eurozone.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Morgan Stanley Capital Growth Class P returned 12.62%. By comparison its primary and former benchmarks, the Russell 1000® Growth Index and Standard & Poor’s 500® Index, returned 9.92% and 8.09%, respectively.
Prior to March 22, 2011, the fund was named Transamerica Focus and had a different sub-adviser.
STRATEGY REVIEW
The investment team looks for high-quality growth companies that they believe have the following attributes: sustainable competitive advantages, business visibility, rising return on invested capital, free cash flow, and a favorable risk/reward profile. We find these companies through intense fundamental research. Our emphasis is on secular growth, and as a result short-term market events are not as meaningful in the stock selection process.
For the period Morgan Stanley assumed responsibility for the fund, the strategy underperformed its benchmark. The financial services sector was the largest relative detractor from performance, although the weakest performing stock in the sector was Leucadia National Corp., a holding company with subsidiaries in a diversified group of industries, including financial services. A position in discount broker Charles Schwab Corp. also hurt performance. The health care sector hampered gains, primarily due to a holding in genetic analysis systems provider Illumina, Inc. The energy sector further dampened results with weakness from solar panel manufacturer First Solar and crude oil producer Ultra Petroleum.
Despite underperforming for the period, there were some positive areas for the fund as well. For instance, the technology sector added to relative performance. Gains were led by holdings in computer technology firm Apple and internet search provider Google Inc. By holding less exposure to the producer durables sector than the benchmark, the fund mitigated some of the losses posted by the sector, which helped relative performance. The consumer staples sector also contributed positively, namely because of good results from a position in Mead Johnson, a pediatric nutrition manufacturer.
Dennis P. Lynch
David S. Cohen
Sam G. Chainani
Alexander T. Norton
Jason C. Yeung
Armistead B. Nash
Co-Portfolio Managers
Morgan Stanley Investment Management Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 9 | | Annual Report 2011 |
Transamerica Morgan Stanley Capital Growth
(formerly, Transamerica Focus)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date |
| |
| Class P (NAV) | | | 12.62 | % | | | 6.40 | % | | | 7.40 | % | | 07/01/1997 |
Russell 1000® Growth * | | | 9.92 | % | | | 3.04 | % | | | 3.56 | % | | 07/01/1997 |
| S&P 500 * | | | 8.09 | % | | | 0.25 | % | | | 3.69 | % | | 07/01/1997 |
| |
| Class A (NAV) | | | 12.34 | % | | | N/A | | | | 15.05 | % | | 11/13/2009 |
| Class A (POP) | | | 6.17 | % | | | N/A | | | | 11.76 | % | | 11/13/2009 |
| |
| Class B (NAV) | | | 11.61 | % | | | N/A | | | | 14.30 | % | | 11/13/2009 |
| Class B (POP) | | | 6.61 | % | | | N/A | | | | 12.50 | % | | 11/13/2009 |
| |
| Class C (NAV) | | | 11.62 | % | | | N/A | | | | 14.32 | % | | 11/13/2009 |
| Class C (POP) | | | 10.62 | % | | | N/A | | | | 14.32 | % | | 11/13/2009 |
| |
| Class I (NAV) | | | 12.81 | % | | | N/A | | | | 16.58 | % | | 11/30/2009 |
| |
| Class I2 (NAV) | | | N/A | | | | N/A | | | | 9.70 | %(A) | | 09/30/2011 |
| |
NOTES
| | |
| * | | The Standard & Poor’s 500® Index (“S&P 500”) served as the benchmark for the fund prior to March 22, 2011, at which time it was replaced with the Russell 1000® Growth Index (“Russell 1000® Growth”). The Russell 1000® Growth and the S&P 500 are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
| |
| (A) | | Not Annualized. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I, I2 and P shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in non-diversified funds may be subject to specific risks such as susceptibility to single economic, political, or regulatory events, and may be subject to greater loss than investments in diversified portfolios. In addition, investments in small-sized companies present additional risks because their earnings are less predictable, their share price more volatile, and their securities less liquid than larger or more established companies. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 10 | | Annual Report 2011 |
Transamerica Morgan Stanley Growth Opportunities
(formerly, Transamerica Growth Opportunities)
(unaudited)
MARKET ENVIRONMENT
The period from mid-April 2011 through the end of October was turbulent, as represented by the Standard & Poor’s 500® Index. The fund and its benchmark had negative returns over this time period. After the market retreated slightly in March due to political turmoil in the Middle East (which caused oil prices to rise) and a major natural disaster in Japan (which prompted fears of supply chain disruptions for the auto and electronics industries), it began to recover heading into the summer months. However, delays in approving an increase for the U.S. debt ceiling followed by the downgrade of U.S. bonds by credit rating agency Standard & Poor’s led to a major sell-off in the stock market in July and August. The European sovereign debt crisis also appeared to worsen during the period and its policy solutions continued to face significant political hurdles. Investors also began to fear that a double-dip recession was imminent in the developed world, although those concerns faded somewhat in October with positive surprises from some economic data in the U.S. and a well-received new debt management plan in the eurozone.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Morgan Stanley Growth Opportunities Class A returned 11.30%. By comparison, its benchmark, the Russell Midcap® Growth Index, returned 10.08%.
Prior to March 22, 2011, the fund was named Transamerica Growth Opportunities and had a different sub-adviser.
STRATEGY REVIEW
The investment team looks for high-quality growth companies that they believe have the following attributes: sustainable competitive advantages, business visibility, rising return on invested capital, free cash flow, and a favorable risk/reward profile. We find these companies through intense fundamental research. Our emphasis is on secular growth, and as a result short-term market events are not as meaningful in the stock selection process.
For the period Morgan Stanley assumed responsibility for the fund, the strategy underperformed its benchmark. The fund’s relative performance was hindered by the consumer discretionary sector, where holdings in video streaming service Netflix, Inc. and in China’s online travel booking site Ctrip.com International, Ltd. (a stock not represented in the benchmark) underperformed. Stock selection and the fund’s overweight in the materials and processing sector impeded performance. Here, positions in rare earth miners Molycorp, Inc. and Lynas Corp., Ltd. (a stock that is not represented in the benchmark) were detrimental. In the health care sector, a holding in genetic analysis systems provider Illumina, Inc. was a considerable detractor from performance.
However, gains in the producer durables sector, led by a position in chemicals and water treatment supplier Nalco, offset some of the relative weakness. The utilities sector also added to relative performance, primarily driven by Millicom International Cellular SA, a mobile telecommunications operator focused on the emerging markets. (Millicom’s stock is not represented in the benchmark.)
Dennis P. Lynch
David S. Cohen
Sam G. Chainani
Armistead B. Nash
Alexander T. Norton
Jason C. Yeung
Co-Portfolio Managers
Morgan Stanley Investment Management Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 11 | | Annual Report 2011 |
Transamerica Morgan Stanley Growth Opportunities
(formerly, Transamerica Growth Opportunities)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date |
| |
| Class A (NAV) | | | 11.30 | % | | | 5.48 | % | | | 8.55 | % | | 03/01/2000 |
| Class A (POP) | | | 5.20 | % | | | 4.29 | % | | | 7.94 | % | | 03/01/2000 |
Russell Midcap® Growth* | | | 10.08 | % | | | 3.46 | % | | | 6.98 | % | | 03/01/2000 |
| |
| Class B (NAV) | | | 10.61 | % | | | 4.80 | % | | | 7.92 | % | | 03/01/2000 |
| Class B (POP) | | | 5.61 | % | | | 4.63 | % | | | 7.92 | % | | 03/01/2000 |
| |
| Class C (NAV) | | | 10.68 | % | | | 4.83 | % | | | 9.05 | % | | 11/11/2002 |
| Class C (POP) | | | 9.68 | % | | | 4.83 | % | | | 9.05 | % | | 11/11/2002 |
| |
| Class I (NAV) | | | 12.01 | % | | | N/A | | | | 20.05 | % | | 11/30/2009 |
| |
| Class I2 (NAV) | | | 12.28 | % | | | 6.38 | % | | | 6.28 | % | | 11/15/2005 |
| |
| Class P (NAV) | | | 11.78 | % | | | N/A | | | | 17.58 | % | | 11/13/2009 |
| |
NOTES
| | |
| * | | The Russell Midcap® Growth Index (“Russell Midcap® Growth”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I, I2 and P shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in small and medium-size companies involves greater risk than is customarily associated with more established companies. The securities of small and mid capitalization companies are subject to higher volatility than larger, more established companies. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 12 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
(unaudited)
MARKET ENVIRONMENT
BlackRock Financial Management, Inc.
The portfolio maintained a shorter duration bias (lower sensitivity to interest rates) relative to the benchmark index throughout most of the period. While this duration stance was beneficial in the earlier half of the period, the overall impact on performance for the 12-month period was negative as interest rates declined to historically low levels in the latter half due to weaker-than-expected economic data and concerns about sovereign debt problems in Europe. Additionally, an out-of-index allocation to high yield corporate credit detracted from performance despite a relief rally late in the period.
J. P. Morgan Investment Management Inc.
The Federal Reserve Board (“Fed”) initiated a second round of quantitative easing (“QE2”) in November 2010, a stimulative policy that helped risk assets extend their strong performance into 2011 despite the natural disaster in Japan. Considerable turmoil in the Middle East and North Africa also threatened economic progress as escalating oil prices contributed to inflation concerns. Fears about peripheral European sovereign debt also flared up as the European Central Bank (“ECB”) announced a rescue package for Ireland.
Attention remained on Europe for most of 2011 as the sovereign debt crisis continued to evolve. At the end of June, an immediate government funding crisis in Greece was narrowly averted when its parliament approved new austerity measures. The July 21st proposal to increase the lending capacity of the European Financial Stability Facility (“EFSF”) relief fund was eventually ratified by all national governments in October, though questions remained about the plan’s adequacy and implementation. As contagion spread to core Europe, the ECB reluctantly initiated its Securities Markets Program (“SMP”) in August by purchasing Italian and Spanish bonds in the secondary market.
Meanwhile, the United States came extremely close to default as politicians agreed at the last minute to raise the debt ceiling in August. Even so, Standard & Poor’s downgraded the U.S. sovereign rating from AAA to AA+. The Fed announced in August that it would keep interest rates exceptionally low through mid-2013. In September, the Fed introduced a new easing policy, termed “Operation Twist,” essentially a maturity extension program intended to put downward pressure on longer-term interest rates.
Skepticism surrounding U.S. policy actions and the ongoing European crisis kept risk markets depressed and the flight to quality extended into the end of the third quarter of 2011. However, there have been a few positive developments in Europe. In late September, dozens of key policymakers from around the world descended on Washington, D.C., for the semi-annual meeting of the International Monetary Fund (“IMF”), including the Group of Twenty (“G-20”) Finance Ministers and Central Bank Governors. It appears that the volatility seen in the markets made it clear to an increasing number of European officials that they need to change their approach to the crisis. The key proposals from the meeting were to increase the flexibility of the EFSF and to ensure that European banks have strong capital positions and access to adequate funding. Additionally, while there are a few countries that still had to vote, the Eurozone’s largest economy, Germany agreed to increase the lending capacity of the EFSF.
Despite increasingly attractive valuations, it is questionable whether markets will remain patient. It is equally questionable whether all European constituents can actually agree on steps which will convince markets that policy is finally ahead of the curve. The coming few weeks will be critical as investors expect the IMF communication to be followed by action. A successful resolution to the European crisis would most certainly bode well for a healthy rebalancing into equities.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Multi-Managed Balanced Class A returned 10.26%. By comparison it’s primary and secondary benchmarks, the Standard & Poor’s 500® Index and the Barclays Capital U.S. Aggregate Bond Index (“BCAB”), returned 8.09% and 5.00%, respectively.
Prior to March 22, 2011, the fund was named Transamerica Balanced and had a different sub-adviser.
STRATEGY REVIEW
BlackRock Financial Management, Inc.
Throughout the 12-month period, the portfolio was overweight relative to the benchmark index in non-government spread sectors (securities driven by movements in credit risk) and underweight in government-owned/government-related sectors. Spread sectors performed well in the first half of the period amid improving economic fundamentals and accommodative monetary policy. In the second half, investor sentiment switched to “risk off” mode resulting in spread sectors broadly underperforming US Treasury securities. On balance, sector allocation in the portfolio had a positive impact on the fund’s performance for the period as a whole.
| | | | |
| | | | | |
| Transamerica Funds | | Page 13 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
(unaudited)
STRATEGY REVIEW (continued)
Also contributing positively was tactical trading within agency mortgage-backed securities (“MBS”) and defensive currency hedges. In addition, the portfolio’s yield curve-flattening stance proved beneficial as long-term interest rates declined more than did short-term rates later in the period.
While we actively managed duration throughout the 12-month period, the portfolio maintained a short duration bias for most of the year. However, toward the end of the period, we added some duration primarily through increased exposure to US Treasuries, as a partial hedge to active credit risk in the portfolio.
Also during the period, we increased the portfolio’s quality profile and level of liquidity in advance of the completion of the Fed’s monetary stimulus program on June 30th. We tactically managed investment grade credits, seeking to take advantage of relative value opportunities in financials and industrials. We gradually reduced the portfolio’s exposure to high yield corporate credit, non-agency residential MBS and commercial mortgage-backed securities (“CMBS”) but are actively seeking opportunities take advantage of anticipated future market stress. To increase portfolio liquidity, we added to the portfolio’s agency MBS holdings throughout the latter half of the period, with a general bias toward lower-coupon issues.
At period end, the portfolio was generally underweight relative to the BCAB in government-owned/government-related sectors in favor of non-government spread sectors. Within spread sectors, the portfolio was most significantly overweight in investment grade corporate credit, CMBS and asset-backed securities. Within the government sectors, the portfolio was underweight in US Treasuries and agency debentures, while it was overweight in agency MBS. The portfolio also held out-of-index allocations to non-agency residential MBS and high yield corporate credit. The portfolio ended the period with a slightly shorter duration relative to the benchmark index.
The portfolio uses interest rate derivative instruments, which may include futures contracts or options, mainly for the purpose of managing risks relating to portfolio duration and yield curve positioning. The portfolio may also trade foreign currency exchange contracts or use foreign currency derivatives to manage currency risk in the portfolio. During the period, derivatives had minimal impact on performance.
J. P. Morgan Investment Management Inc.
Transamerica Multi-Managed Balanced outperformed its benchmarks for the 12 months ended October 31, 2011. Stock selection in the systems and network hardware, health services and systems, and media sectors contributed to returns. Alternatively, stock selection in the consumer cyclical, utilities and semiconductor sectors detracted from performance.
At the individual stock level, an underweight position in Hewlett-Packard Co., a hardware technology company, was the top contributor to the portfolio. Shares declined after the company posted a weak quarter and disappointing earnings; lagging its peers in staying competitive amid technological structural shifts. Scepticism about recent strategic initiatives, such as the uncertainty over the personal computer unit spinoff, also weighed on the company. We continue to believe the company will struggle to grow in the long term and remain underweight in the name.
Biotechnology company Dendreon Corp. was the biggest detractor in the 12 months. The company owns global rights to Provenge, a personalized vaccine for prostate cancer, which should be competitively positioned to increase penetration and benefit from long-term patent protection. However, shares tumbled after Dendreon Corp missed earnings and removed guidance, challenged by slower-than-expected product adoption, and thus lessened visibility into future revenue growth. We held the position because we still like the company for its differentiated offering and believe that better education and support on the reimbursement process should alleviate the overhang on the stock.
| | | |
|
Matthew Marra
Eric Pellicciaro
Rick Rieder | | Scott Blasdell, CFA
Terance Chen, CFA
Raffaele Zingone, CFA |
| | | |
Co-Portfolio Managers | | Co-Portfolio Managers |
BlackRock Financial Management, Inc. | | J.P. Morgan Investment Management Inc. |
| | | | | |
|
Transamerica Funds | | Page 14 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class A (NAV) | | | 10.26 | % | | | 4.61 | % | | | 5.29 | % | | | 12/02/1994 | |
| Class A (POP) | | | 4.18 | % | | | 3.43 | % | | | 4.70 | % | | | 12/02/1994 | |
| S&P 500* | | | 8.09 | % | | | 0.25 | % | | | 3.69 | % | | | 12/02/1994 | |
| Barclays Capital U.S. Aggregate Bond* | | | 5.00 | % | | | 6.41 | % | | | 5.46 | % | | | 12/02/1994 | |
| |
| Class B (NAV) | | | 9.33 | % | | | 3.86 | % | | | 4.76 | % | | | 10/01/1995 | |
| Class B (POP) | | | 4.33 | % | | | 3.69 | % | | | 4.76 | % | | | 10/01/1995 | |
| |
| Class C (NAV) | | | 9.63 | % | | | 4.03 | % | | | 5.86 | % | | | 11/11/2002 | |
| Class C (POP) | | | 8.63 | % | | | 4.03 | % | | | 5.86 | % | | | 11/11/2002 | |
| |
| Class I (NAV) | | | 10.70 | % | | | N/A | | | | 15.49 | % | | | 11/30/2009 | |
| |
| Class P (NAV) | | | 10.63 | % | | | N/A | | | | 14.63 | % | | | 11/13/2009 | |
| |
NOTES
| | | |
| * | | The Standard & Poor’s 500® Index (“S&P 500”) and the Barclays Capital U.S. Aggregate Bond Index (“Barclays Capital U.S. Aggregate Bond”) are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and P shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Equity securities tend to go up and down more dramatically over the short term and price movements may result from many individual factors as well as the market as a whole. Fixed income securities have several risks including fluctuations in market value, changes in interest rates as the value will decrease as interest rates rise, and issuers defaulting on their obligations to pay interest or return principal. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | | |
|
Transamerica Funds | | Page 15 | | Annual Report 2011 |
Transamerica Systematic Small/Mid Cap Value
(formerly, Transamerica Small/Mid Cap Value)
(unaudited)
MARKET ENVIRONMENT
The last half of the period ending October 31, 2011 was extremely adverse for the U.S. equity markets, with the Russell 2500® Value Index (“Russell 2500® Value”) down over 11%. From the beginning of the period through the end of the second quarter, the U.S. equity markets pulled back modestly amid a confluence of softer economic data domestically and increased geopolitical concerns abroad. Unfortunately, the losses accelerated in the third quarter and we saw the greatest stock market declines since the 2008 financial crisis, with the Russell 2500® Value down over 21%.
Geopolitical concerns dominated trading, with news out of Greece and its European counterparts driving the markets broadly lower. Risk aversion was a prominent theme among investors, many of whom seem to fear the collapse of the European financial system in its present form. A flight to quality saw U.S. Treasuries move up sharply, despite the U.S. government’s near-default on its debt and the eventual downgrade of the country’s sovereign credit rating. While the Federal Reserve Board’s (“Fed”) new “Operation Twist” program, to swap shorter-maturity U.S. Treasuries for longer-dated issuances, has supported a low-interest rate environment, market participants have looked upon this unusual step as proof that the Fed has little ammunition left to enhance economic growth. Indeed, with the focus of investors so heavily on macro-economic events, stock prices have not followed underlying company fundamentals lately. This is a clear headwind for active stock managers in general and our valuation and fundamental focused discipline is no exception. Without question, the U.S. economy has been experiencing a period of slower growth, as indicated by the stubborn lack of job growth and 9.1% unemployment rate. On the other hand, our research has shown a pickup in loan demand among corporations and small businesses, so there are signs of slow improvement in some areas of the U.S. economy. The heavy volatility on Wall Street during the period reflected these mixed messages.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Systematic Small/Mid Cap Value Class A returned 9.32%. By comparison, its benchmark, the Russell 2500® Value Index, returned 4.49%.
Prior to March 22, 2011, the fund was named Transamerica Small/Mid Cap Value and had a different sub-adviser.
STRATEGY REVIEW
The portfolio is built from the bottom up with a focus on companies we believe possess the best combination of valuation and underlying business fundamentals. Sector allocations are a residual of this stock selection process, but during the period they accounted for most of our underperformance. Our underweight to the top-performing utilities sector was the main reason for this as investors sought the perceived safety of these issues amid the macro-economic uncertainty and resulting market turmoil. Stock selection was mixed across the sectors and it slightly detracted on an aggregate basis. Stock selection added the most value within the consumer discretionary and utilities sectors, while it detracted the most within financials, information technology and materials.
Lincoln National Corp. shares got hit hard along with the life insurance group as a whole. Life insurance companies’ longer-term profitability could be impaired by the extraordinarily low interest rate environment, and that has weighed on Lincoln’s shares. Despite this longer-term concern, the company continues to report strong earnings results and we continue to hold the stock.
The shares of Alcatel-Lucent, an Information Technology company that provides equipment to telecom services providers, underperformed during the period as the company was hurt by a sudden second-half slowdown in U.S. equipment spending on next-generation cellular technologies. We were able to anticipate a poor third-quarter earnings result and sell these shares prior to further weakness in the stock.
In metals & mining, Alcoa Inc., the world’s largest aluminum producer, was a poor performer due to its exposure to global cyclical end markets. During the past quarter, the company missed expectations by a wide margin and gave a more cautious outlook on aluminum, causing us to sell our position.
Within consumer discretionary, Macy’s, Inc. and PVH Corp. were top contributors. Macy’s has had some of the strongest and most consistent same-store sales over the past 12 months and, combined with strict inventory and cost controls, earnings and cash flow have meaningfully outperformed expectations while valuation remains attractive. PVH Corp., an apparel company with a portfolio of brands that includes Calvin Klein, Tommy Hilfiger, Van Heusen and Izod, has demonstrated some of the strongest earnings surprises, earnings estimate revisions, and cash flows in 2011 due to the company’s dedication to strong inventory controls, higher pricing, and operating expense management.
NiSource, Inc., a Midwest utility, was an outperformer over the last few quarters, as the company continued to execute on its strategy and investors favored higher dividend yield. We believe that future growth will be driven by strong volume growth at the regulated utility and increased opportunities in the pipeline segment as shale activity accelerates in the United States.
Ron Mushock, CFA
Kenneth Burgess,CFA
Co-Portfolio Managers
Systematic Financial Management L.P.
| | | | | |
|
Transamerica Funds | | Page 16 | | Annual Report 2011 |
Transamerica Systematic Small/Mid Cap Value
(formerly, Transamerica Small/Mid Cap Value)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class A (NAV) | | | 9.32 | % | | | 6.74 | % | | | 11.36 | % | | | 04/02/2001 | |
| Class A (POP) | | | 3.30 | % | | | 5.54 | % | | | 10.73 | % | | | 04/02/2001 | |
Russell 2500® Value * | | | 4.49 | % | | | (0.01 | )% | | | 8.42 | % | | | 04/02/2001 | |
| |
| Class B (NAV) | | | 8.59 | % | | | 6.05 | % | | | 10.76 | % | | | 04/02/2001 | |
| Class B (POP) | | | 3.59 | % | | | 5.89 | % | | | 10.76 | % | | | 04/02/2001 | |
| |
| Class C (NAV) | | | 8.62 | % | | | 6.09 | % | | | 13.32 | % | | | 11/11/2002 | |
| Class C (POP) | | | 7.62 | % | | | 6.09 | % | | | 13.32 | % | | | 11/11/2002 | |
| |
| Class I (NAV) | | | 9.82 | % | | | N/A | | | | 17.36 | % | | | 11/30/2009 | |
| |
| Class I2 (NAV) | | | 9.93 | % | | | 7.37 | % | | | 8.39 | % | | | 11/15/2005 | |
| |
NOTES
| | |
| * | | The Russell 2500® Value Index (“Russell 2500® Value”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I and I2 shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in small- and medium-size companies involves greater risk than is customarily associated with more established companies. The securities of small and mid capitalization companies are subject to higher volatility than larger, more established companies. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | | |
|
Transamerica Funds | | Page 17 | | Annual Report 2011 |
Transamerica TS&W International Equity
(formerly TS& W International Equity)
(unaudited)
MARKET ENVIRONMENT
While investors enjoyed positive returns through the early part of 2011, fears of a global economic slowdown weighed on markets starting in May. In the early part of this time period, events such as the disaster in Japan, the early stages of the European debt crisis, and unrest in the Middle East were not enough to bring markets down as investors were more focused on the positive picture including strong corporate profit growth and confidence in an economic recovery.
However, in May the tide started shifting from optimism back to uncertainty. Supply disruptions stemming from the earthquake and tsunami in Japan in March proved to be the first in a series of blows to shake the confidence of global markets. The worsening Greek debt crisis; austerity measures and monetary tightening in the United Kingdom, European Union and Asia; commodity price inflation; and a slew of weak economic reports all contributed to the growing impression of a global economic slowdown. This was clearly an inflection point, as from this point on, investors fled Europe, Emerging Markets, and cyclical or commodity-related positions. Market volatility continued to rise through this period and peaked at the highest level since March of 2009 in the midst of the US debt downgrade by Standard & Poor’s.
Despite the strong bounce back in the month of October, the European financial crisis is still in a critical stage, and with further deterioration, there is a real risk. As Europe struggles to implement solutions, slow growth will tend to retard deleveraging. Earnings disappointments will become more common as companies face several quarters of tough comparisons and analysts play catch-up. In this environment, we remain highly focused on sustainability in cash flows and profit margins.
PERFORMANCE
For the year ended October 31, 2011, Transamerica TS&W International Equity Class I returned (2.05)%. By comparison, its benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI-EAFE”), returned (3.64)%.
Effective February 28, 2011, TS&W International Equity Portfolio was adopted by Transamerica and renamed Transamerica TS&W International Equity.
STRATEGY REVIEW
Over the 12-month period, Transamerica TS&W International Equity offered downside protection compared to the MSCI-EAFE mainly due to stock selection decisions in Financials and in Japan.
An emphasis on financial firms outside Europe was a key source of relative return, as investors punished companies with even indirect exposure to sovereign debt in Greece, especially in the most recent quarter. Commercial banks were among the hardest hit during this period, and the portfolio’s underweight here was also helpful. Additionally, the portfolio’s diversified mix in this sector, encompassing Japanese real-estate development, Asian and Canadian banks, and global reinsurance companies, were all beneficial to relative performance.
Conversely, the portfolio benefited from the Telecommunication and Consumer Staples sectors, which provided a relative safe haven as investors were in search of stable cash flow generators and dividend yield.
From a geographic perspective, stock selection in Japan was the portfolio’s top contributor. Japanese financials and technology companies added the most value, as companies here remained comparatively resilient during the correction.
Daito Trust was the portfolio’s top contributor over this time period. The Japanese real-estate development company has experienced increased demand from the rebuilding effort following the Japanese earthquake that struck earlier this year.
While Health Care companies proved defensive over this period, the portfolio’s underweight position, along with weak performance from a German pharmaceutical holding, was the portfolio’s top detractor to relative returns over this period.
Energy was the top performing market sector over this time period, however the portfolio’s slight underweight pared with a pair of underperforming exploration companies also detracted from relative returns.
From a geographic perspective, while overall stock selection in Europe was positive, exposure to select markets such as Ireland, Italy, and Greece were slight detractors for the portfolio as the European debt crisis unfolded.
Smurfit Kappa Group was the portfolio’s top detractor over this time period. The Ireland-based global packaging company came under pressure as investors veered away from cyclical names during the second half of this year.
Brandon H. Harrell, CFA
Portfolio Manager
Thompson, Siegel & Walmsley LLC
| | | | | |
|
Transamerica Funds | | Page 18 | | Annual Report 2011 |
Transamerica TS&W International Equity
(formerly TS& W International Equity)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Class | | Inception Date |
| |
| Class I (NAV) | | | (2.05 | )% | | | (0.69 | )% | | | 5.85 | % | | 12/18/1992 |
| MSCI-EAFE * | | | (3.64 | )% | | | (1.95 | )% | | | 6.19 | % | | 12/18/1992 |
| |
| Class A (NAV) | | | N/A | | | | N/A | | | (10.38)%(A) | | 03/01/2011 |
| Class A (POP) | | | N/A | | | | N/A | | | (15.28)%(A) | | 03/01/2011 |
| |
| Class C (NAV) | | | N/A | | | | N/A | | | (10.84)%(A) | | 03/01/2011 |
| Class C (POP) | | | N/A | | | | N/A | | | (11.67)%(A) | | 03/01/2011 |
| |
| Class I2 (NAV) | | | N/A | | | | N/A | | | (10.11)%(A) | | 03/01/2011 |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI-EAFE”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
(A) Not Annualized.
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge and 1% (during the first 12 months) for Class C shares. There are no sales charges on Class I and I2 shares.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
The prices of securities the sub-adviser believes are undervalued may not appreciate as anticipated or may go down. Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | | |
|
Transamerica Funds | | Page 19 | | Annual Report 2011 |
Transamerica WMC Diversified Equity
(formerly, Transamerica Diversified Equity)
(unaudited)
MARKET ENVIRONMENT
The year ending October 31, 2011 was an extremely volatile period for equity markets. Global equities finished 2010 on a strong note and continued to march higher in the first quarter of 2011, driven by investors’ enthusiasm for additional government debt purchases by the US Federal Reserve Board (“Fed”), the extension of tax cuts in the US, strong earnings growth, and generally improving economic data. This enthusiasm reversed later in the period however, as concerns surfaced that the global economy could slip back into recession, resulting in a rapid decline in equity markets. Fears about sovereign debt and solvency in the eurozone, slowing economic expansion in China and the US, and uncertainty about the sustainability of corporate earnings growth combined to produce an extremely volatile stock market, and return correlations among stocks spiked as investors shed risk and fled to safety. Markets then rallied in the final month of the period as improving US economic data and optimism related to a resolution of the ongoing European debt crisis lifted investor sentiment.
In this environment, nine of the ten sectors in the Russell 1000® Growth Index posted positive returns during the period. The Utilities and Energy sectors increased the most, while Telecommunication Services was the only sector to post a decline.
PERFORMANCE
For the year ended October 31, 2011, Transamerica WMC Diversified Equity Class P returned 3.80%. By comparison, its primary and former benchmarks, the Russell 1000® Growth Index and the Standard & Poor’s 500® Index, returned 9.92% and 8.09%, respectively.
Prior to March 22, 2011 the fund was named Transamerica Diversified Equity and had a different sub-adviser.
STRATEGY REVIEW
The fund’s investment process leverages the extensive research resources of Wellington Management and emphasizes a balance of growth, valuation, and quality criteria in selecting stocks. We utilize risk analysis tools to help maintain the fund’s emphasis on stock selection and minimize other sources of relative risk. With this bottom-up approach incorporating diversified sources of alpha and effective risk analysis, our goal is to generate consistent outperformance over time.
During the period, less favorable security selection in the Information Technology, Materials, and Industrials sectors were the main drivers of relative underperformance. An underweight position in the relatively strong Consumer Staples sector also detracted from relative results. Positive results from security selection within Consumer Discretionary, Health Care, and Energy partially offset the less favorable results, as did an overweight to Information Technology.
The fund’s largest contributors to relative performance during the period included California-based network equipment company Cisco Systems, Inc., internet company IAC/InterActiveCorp, and multinational technology and consulting corporation International Business Machines Corp. Not owning weak performing benchmark stock Schlumberger, an oilfield services company, also contributed positively to benchmark relative performance.
The fund’s largest relative detractors during the period included internet search provider Google, Inc., coal producer Walter Energy, Inc, and programmable logic devices manufacturer Altera Corp. Not owning strong performing fast food chain restaurant McDonald’s also hurt relative performance results during the period.
As of the end of the period, the fund was most overweight the Information Technology sector, and most underweight the Consumer Staples and Financials sectors.
The fund did not utilize derivatives during the period.
Paul E. Marrkand, CFA
Portfolio Manager
Wellington Management Company, LLP
| | | | | |
|
Transamerica Funds | | Page 20 | | Annual Report 2011 |
Transamerica WMC Diversified Equity
(formerly, Transamerica Diversified Equity)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class P (NAV) | | | 3.80 | % | | | 1.66 | % | | | 4.89 | % | | | 04/01/1998 | |
Russell 1000® Growth * | | | 9.92 | % | | | 3.04 | % | | | 3.56 | % | | | 04/01/1998 | |
| S&P 500 * | | | 8.09 | % | | | 0.25 | % | | | 3.69 | % | | | 04/01/1998 | |
| |
| Class A (NAV) | | | 3.44 | % | | | N/A | | | | 7.50 | % | | | 11/13/2009 | |
| Class A (POP) | | | (2.17 | )% | | | N/A | | | | 4.44 | % | | | 11/13/2009 | |
| |
| Class B (NAV) | | | 2.71 | % | | | N/A | | | | 6.76 | % | | | 11/13/2009 | |
| Class B (POP) | | | (2.29 | )% | | | N/A | | | | 4.83 | % | | | 11/13/2009 | |
| |
| Class C (NAV) | | | 2.72 | % | | | N/A | | | | 6.77 | % | | | 11/13/2009 | |
| Class C (POP) | | | 1.72 | % | | | N/A | | | | 6.77 | % | | | 11/13/2009 | |
| |
| Class I (NAV) | | | 3.82 | % | | | N/A | | | | 8.99 | % | | | 11/30/2009 | |
| |
| Class I2 (NAV) | | | 4.19 | % | | | N/A | | | | 8.25 | % | | | 11/13/2009 | |
| |
NOTES
| | |
| * | | Standard & Poor’s 500® Index (“S&P 500”) served as the benchmark for the fund prior to March 22, 2011, at which time it was replaced with the Russell 1000® Growth Index (“Russell 1000® Growth”).The S&P 500 and Russell 1000® Growth are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I, I2 and P shares.
Performance figures may reflect fee waivers and/or expense reimbursements by he Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. Value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that an undervalued stock is actually appropriately priced. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | | |
|
Transamerica Funds | | Page 21 | | Annual Report 2011 |
Transamerica WMC Diversified Growth
(unaudited)
MARKET ENVIRONMENT
The one-year period ending October 31, 2011 was an extremely volatile period for equity markets. Global equities finished 2010 on a strong note and continued to march higher in the first quarter of 2011, driven by investors’ enthusiasm for additional government debt purchases by the US Federal Reserve Board (“Fed”), the extension of tax cuts in the US, strong earnings growth, and generally improving economic data. This enthusiasm reversed later in the period however, as concerns surfaced that the global economy could slip back into recession, resulting in a rapid decline in equity markets. Fears about sovereign debt and solvency in the eurozone, slowing economic expansion in China and the US, and uncertainty about the sustainability of corporate earnings growth combined to produce an extremely volatile stock market, and return correlations among stocks spiked as investors shed risk and fled to safety. Markets then rallied in the final month of the period as improving US economic data and optimism related to a resolution of the ongoing European debt crisis lifted investor sentiment.
In this environment, nine of the ten sectors in the Russell 1000® Growth Index posted positive returns during the period. The Utilities and Energy sectors increased the most, while Telecommunication Services was the only sector to post a decline.
PERFORMANCE
For the year ended October 31, 2011, Transamerica WMC Diversified Growth Class A returned 5.73%. By comparison, its benchmark, the Russell 1000® Growth Index, returned 9.92%.
STRATEGY REVIEW
The fund’s investment process leverages the extensive research resources of Wellington Management and emphasizes a balance of growth, valuation, and quality criteria in selecting stocks. We utilize risk analysis tools to help maintain the fund’s emphasis on stock selection and minimize other sources of relative risk. With this bottom-up approach incorporating diversified sources of alpha and effective risk analysis, our goal is to generate consistent outperformance over time.
During the period, less favorable security selection in the Information Technology, Materials, and Consumer Staples sectors were drivers of relative underperformance. An underweight allocation to the Energy sector also detracted from relative results. Positive results from security selection within Industrials and Health Care partially offset the less favorable results, as did an underweight to Health Care.
The fund’s largest contributors to relative performance during the period included programmable logic devices manufacturer Altera Corp., diversified health and “well-being” company UnitedHealth Group, Inc., and multinational technology and consulting corporation International Business Machines Corp. Not owning weak performing benchmark stock Hewlett-Packard also contributed positively to benchmark relative performance.
The fund’s largest relative detractors during the period included California-based network equipment company Cisco Systems, Inc., oil and gas company Exxon Mobil Corp., and computer storage and data management company NetApp, Inc. The fund’s position in Internet-based travel website Expedia also hurt relative performance results during the period.
As of the end of the period, the fund was most overweight in the Information Technology sector, and most underweight in the Consumer Staples and Financials sectors.
The fund did not utilize derivatives during the period.
Paul E. Marrkand,CFA
Portfolio Manager
Wellington Management Company, LLP
| | | | |
| | | | | |
| Transamerica Funds | | Page 22 | | Annual Report 2011 |
Transamerica WMC Diversified Growth
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Class | | Inception Date |
| |
| Class A (NAV) | | 5.73% | | (0.87)% | | 4.21% | | 03/01/2000 |
| Class A (POP) | | (0.11)% | | (1.98)% | | 3.63% | | 03/01/2000 |
Russell 1000® Growth * | | 9.92% | | 3.04% | | 3.56% | | 03/01/2000 |
| |
| Class B (NAV) | | 5.11% | | (1.57)% | | 3.60% | | 03/01/2000 |
| Class B (POP) | | 0.11% | | (1.76)% | | 3.60% | | 03/01/2000 |
| |
| Class C (NAV) | | 5.08% | | (1.52)% | | 5.95% | | 11/11/2002 |
| Class C (POP) | | 4.08% | | (1.52)% | | 5.95% | | 11/11/2002 |
| |
| Class I (NAV) | | 6.23% | | N/A | | 9.77% | | 11/30/2009 |
| |
| Class I2 (NAV) | | 6.59% | | (0.18)% | | 1.28% | | 11/15/2005 |
| |
| Class P (NAV) | | 6.19% | | N/A | | 8.51% | | 11/13/2009 |
| |
| Class T (NAV) | | 6.33% | | (0.35)% | | (0.29)% | | 10/27/2006 |
| Class T (POP) | | (2.70)% | | (2.10)% | | (2.04)% | | 10/27/2006 |
| |
NOTES
| | |
| * | | The Russell 1000® Growth Index (“Russell 1000® Growth”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is most recent. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares (8.5% for Class T) or the maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 6 years) for Class B shares and 1% (during the first 12 months) for Class C shares. Shares purchased prior to March 1, 2004 are subject to a maximum applicable contingent deferred sales charge (5% in the 1st year, decreasing to 0% after 7 years) for Class B shares and (2% in the 1st year, decreasing to 0% after 2 years) for Class C shares. There are no sales charges on Class I, I2 and P shares.
Performance figures may reflect fee waivers and/or expense reimbursements by he Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. Value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that an undervalued stock is actually appropriately priced. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 23 | | Annual Report 2011 |
Transamerica WMC Quality Value
(unaudited)
MARKET ENVIRONMENT
The one-year period ending October 31, 2011 was an extremely volatile period for equity markets. Global equities finished 2010 on a strong note and continued to march higher in the first quarter of 2011, driven by investors’ enthusiasm for additional government debt purchases by the U.S. Federal Reserve Board (“Fed”), the extension of tax cuts in the U.S., strong earnings growth, and generally improving economic data. This enthusiasm reversed later in the period however, as concerns surfaced that the global economy could slip back into recession, resulting in a rapid decline in equity markets. Fears about sovereign debt and solvency in the eurozone, slowing economic expansion in China and the U.S., and uncertainty about the sustainability of corporate earnings growth combined to produce an extremely volatile stock market, and return correlations among stocks spiked as investors shed risk and fled to safety. Markets then rallied in the final month of the period as improving U.S. economic data and optimism related to a resolution of the ongoing European debt crisis lifted investor sentiment.
In this environment, nine of the ten sectors in the Russell 1000® Value Index posted positive returns during the period. The Energy and Utilities sectors increased the most, while Financials was the only sector to post a decline.
PERFORMANCE
For the period from inception November 15, 2010 through October 31, 2011, Transamerica WMC Quality Value Class A returned 3.94%. By comparison, its benchmark, the Russell 1000® Value Index, returned 4.63%.
STRATEGY REVIEW
The investment philosophy of the fund is based on the premise that investing in high-quality companies at attractive valuations offers a compelling reward to risk opportunity. Three basic tenets of the philosophy act as the guideposts in defining “quality.” The first tenet involves the true significance of dividends and effective capital allocation. Good stewards of capital strike the optimal balance between capital investment and value distribution by investing in high return on capital projects and augmenting that growth with a dividend policy that can be sustained or increased over time. Understanding the implications of the capital cycle is also important, with a focus on those companies who are the survivors and leaders of undercapitalized industries. Finally, the fund seeks companies that have resilient franchise value; these companies tend to be market leaders with underappreciated assets. The intent is to find companies with these traits and buy them when they are out-of-favor and trading at attractive valuations.
During the period, strong selection in the Information Technology, Financials, and Energy sectors were the main drivers of outperformance. An underweight allocation to the Financials sector also aided relative results. Negative results from security selection within Health Care, Materials, and Consumer Discretionary partially offset the overall outperformance, as did an overweight to Information Technology.
The fund’s largest contributors to relative performance during the period included global hardware, software and IT services company International Business Machines Corp., integrated energy company Chevron Corp., and IT and management consulting company Accenture PLC. Not owning weak performing benchmark stocks Citigroup and Hewlett-Packard also contributed positively to benchmark relative performance.
The fund’s largest relative detractors during the period included Ultra Petroleum Corp., an independent exploration company and producer of oil and natural gas, California-based network equipment Cisco Systems, Inc., and leading office products supplier Staples, Inc. The fund’s position in global glass bottle manufacturer Owens-Illinois, Inc. also hurt relative performance results during the period.
As of the end of the period, the fund was most overweight the Industrials and Materials sectors, and most underweight the Financials sector.
The fund did not utilize derivatives during the period.
Matthew G. Baker
Edward P. Bousa,CFA
Co-Portfolio Managers
Wellington Management Company, LLP
| | | | |
| | | | | |
| Transamerica Funds | | Page 24 | | Annual Report 2011 |
Transamerica WMC Quality Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | |
| | | 10 Years or | | |
| | | Life of Class | | Inception Date |
| |
| Class A (NAV) | | 3.94%(A) | | 11/15/2010 |
| Class A (POP) | | (1.67)%(A) | | 11/15/2010 |
Russell 1000® Value* | | 4.63%(A) | | 11/15/2010 |
| |
| Class C (NAV) | | 3.38%(A) | | 11/15/2010 |
| Class C (POP) | | (3.23)%(A) | | 11/15/2010 |
| |
| Class I (NAV) | | 4.31%(A) | | 11/15/2010 |
| |
| Class I2 (NAV) | | 4.60%(A) | | 11/15/2010 |
| |
NOTES
| | |
| * | | The Russell 1000® Value Index (“Russell 1000® Value”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Class calculation is based on the previous 10 years or since inception, whichever is more recent. You cannot invest directly in an index. |
| |
| | | (A) Not Annualized. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains but do not reflect any sales charges. Public Offering Price (“POP”) returns include the reinvestment of dividends and capital gains and reflect the maximum sales charge of 5.5% for A shares or the maximum applicable contingent deferred sales charge 1% (during the first 12 months) for Class C shares. There are no sales charges on Class I and I2 shares.
Performance figures may reflect fee waivers and/or expense reimbursements by he Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. Value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that an undervalued stock is actually appropriately priced. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund.
| | | | |
| | | | | |
| Transamerica Funds | | Page 25 | | Annual Report 2011 |
Understanding Your Funds’ Expenses
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees, dividend expense on short-sales, and other fund expenses.
The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the funds and to compare these costs with the ongoing costs of investing in other funds.
The examples are based on an investment of $1,000 invested at May 1, 2011 and held for the entire period until October 31, 2011.
ACTUAL EXPENSES
The information in the table under the heading “Actual Expenses” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, 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 = $8.60), then multiply the result by the number in the appropriate column for your share class titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If your account is an IRA, your expenses could have included a $15 annual fee. The amount of any fee paid through your account would increase the estimate of expenses you paid during the period and decrease your ending account value.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The information in the table under the heading “Hypothetical Expenses” 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 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 your fund versus other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. As in the case of the actual expense example, if your account is subject to an IRA fee, the amount of the fee paid through your account would increase the hypothetical expenses you would have paid during the period and decrease the hypothetical ending account value.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Expenses” 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 transaction costs were included, your costs would have been higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries, or other financial institutions.
Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not a part of by the advisory and administrative fees. Examples of such as fees and expenses of the trustees and their counsel, extraordinary expenses, and interest expense.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Actual Expenses | | | Hypothetical Expenses (B) | | | | |
| | Beginning | | | Ending Account | | | Expenses Paid | | | Ending Account | | | Expenses Paid | | | Annualized | |
| Fund Name | | Account Value | | | Value | | | During Period | | | Value | | | During Period | | | Expense Ratio | |
| |
| Transamerica AEGON Flexible Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 992.30 | | | $ | 4.87 | (A) | | $ | 1,020.32 | | | $ | 4.94 | (A) | | | 0.97 | % |
| Class B | | | 1,000.00 | | | | 988.40 | | | | 9 02 | (A) | | | 1,016.13 | | | | 9.15 | (A) | | | 1.80 | |
| Class C | | | 1,000.00 | | | | 989.40 | | | | 8.47 | (A) | | | 1,016.69 | | | | 8.59 | (A) | | | 1.69 | |
| Class I | | | 1,000.00 | | | | 994.10 | | | | 3.52 | (A) | | | 1,021.68 | | | | 3.57 | (A) | | | 0.70 | |
| Class I2 | | | 1,000.00 | | | | 995.80 | | | | 2.97 | (A) | | | 1,022.23 | | | | 3.01 | (A) | | | 0.59 | |
| |
| Transamerica AEGON High Yield Bond | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 983.90 | | | | 5.85 | (A) | | | 1,019.31 | | | | 5.96 | (A) | | | 1.17 | |
| Class B | | | 1,000.00 | | | | 980.60 | | | | 9.19 | (A) | | | 1,015.93 | | | | 9.35 | (A) | | | 1.83 | |
| Class C | | | 1,000.00 | | | | 981.20 | | | | 8.84 | (A) | | | 1,016.28 | | | | 9.00 | (A) | | | 1.77 | |
| Class I | | | 1,000.00 | | | | 986.20 | | | | 3.85 | (A) | | | 1,021.32 | | | | 3.92 | (A) | | | 0.77 | |
| Class I2 | | | 1,000.00 | | | | 986.80 | | | | 3.31 | (A) | | | 1,021.88 | | | | 3.36 | (A) | | | 0.66 | |
| Class P | | | 1,000.00 | | | | 986.30 | | | | 4.51 | (A) | | | 1,020.67 | | | | 4.58 | (A) | | | 0.90 | |
| |
| Transamerica AEGON Money Market | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,000.00 | | | | 0.91 | (A) | | | 1,024.30 | | | | 0.92 | (A) | | | 0.18 | |
| Class B | | | 1,000.00 | | | | 1,000.00 | | | | 0.91 | (A) | | | 1,024.30 | | | | 0.92 | (A) | | | 0.18 | |
| Class C | | | 1,000.00 | | | | 1,000.00 | | | | 0.91 | (A) | | | 1,024.30 | | | | 0.92 | (A) | | | 0.18 | |
| Class I | | | 1,000.00 | | | | 1,000.10 | | | | 0 86 | (A) | | | 1,024.35 | | | | 0.87 | (A) | | | 0.17 | |
| Class I2 | | | 1,000.00 | | | | 1,000.10 | | | | 0 86 | (A) | | | 1,024.35 | | | | 0.87 | (A) | | | 0.17 | |
| Class P | | | 1,000.00 | | | | 1,000.10 | | | | 0.86 | (A) | | | 1,024.35 | | | | 0.87 | (A) | | | 0.17 | |
| |
| Transamerica AEGON Short-Term Bond | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,002.00 | | | | 4.24 | (A) | | | 1,020.97 | | | | 4.28 | (A) | | | 0.84 | |
| Class C | | | 1,000.00 | | | | 998.10 | | | | 8.11 | (A) | | | 1,017.09 | | | | 8.19 | (A) | | | 1.61 | |
| Class I | | | 1,000.00 | | | | 1,001.30 | | | | 3.28 | (A) | | | 1,021.93 | | | | 3.31 | (A) | | | 0.65 | |
| Class I2 | | | 1,000.00 | | | | 1,002.20 | | | | 2.73 | (A) | | | 1,022.48 | | | | 2.75 | (A) | | | 0.54 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 26 | | Annual Report 2011 |
Understanding Your Funds’ Expenses (continued)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Actual Expenses | | | Hypothetical Expenses (B) | | | | |
| | | Beginning | | | Ending Account | | | Expenses Paid | | | Ending Account | | | Expenses Paid | | | Annualized | |
| Fund Name | | Account Value | | | Value | | | During Period | | | Value | | | During Period | | | Expense Ratio | |
| |
| Transamerica Logan Circle Emerging Markets Debt | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,001.40 | | | $ | 2.29 | (C) | | $ | 1,006.20 | | | $ | 2.30 | (C) | | | 1.35 | % |
| Class C | | | 1,000.00 | | | | 1,000.20 | | | | 3.40 | (C) | | | 1,005.10 | | | | 3.41 | (C) | | | 2.00 | |
| Class I | | | 1,000.00 | | | | 1,001.40 | | | | 1.70 | (C) | | | 1,006.79 | | | | 1.70 | (C) | | | 1.00 | |
| Class I2 | | | 1,000.00 | | | | 1,001.40 | | | | 1.70 | (C) | | | 1,006.79 | | | | 1.70 | (C) | | | 1.00 | |
| |
| Transamerica Morgan Stanley Capital Growth | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 918.10 | | | | 7.49 | (A) | | | 1,017.39 | | | | 7.88 | (A) | | | 1.55 | |
| Class B | | | 1,000.00 | | | | 915.10 | | | | 10.62 | (A) | | | 1,014.12 | | | | 11.17 | (A) | | | 2.20 | |
| Class C | | | 1,000.00 | | | | 915.10 | | | | 10.62 | (A) | | | 1,014.12 | | | | 11.17 | (A) | | | 2.20 | |
| Class I | | | 1,000.00 | | | | 920.10 | | | | 5.42 | (A) | | | 1,019.56 | | | | 5.70 | (A) | | | 1.12 | |
| Class I2 | | | 1,000.00 | | | | 1,097.00 | | | | 0.97 | (D) | | | 1,003.32 | | | | 0.93 | (D) | | | 1.09 | |
| Class P | | | 1,000.00 | | | | 919.50 | | | | 6.77 | (A) | | | 1,018.15 | | | | 7.12 | (A) | | | 1.40 | |
| |
| Transamerica Morgan Stanley Growth Opportunities | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 861.30 | | | | 8.21 | (A) | | | 1,016.38 | | | | 8.89 | (A) | | | 1.75 | |
| Class B | | | 1,000.00 | | | | 859.20 | | | | 11.25 | (A) | | | 1,013.11 | | | | 12.18 | (A) | | | 2.40 | |
| Class C | | | 1,000.00 | | | | 859.70 | | | | 11.25 | (A) | | | 1,013.11 | | | | 12.18 | (A) | | | 2.40 | |
| Class I | | | 1,000.00 | | | | 865.30 | | | | 5.12 | (A) | | | 1,019.71 | | | | 5.55 | (A) | | | 1.09 | |
| Class I2 | | | 1,000.00 | | | | 865.30 | | | | 4.28 | (A) | | | 1,020.62 | | | | 4.63 | (A) | | | 0.91 | |
| Class P | | | 1,000.00 | | | | 863.40 | | | | 6.25 | (A) | | | 1,018.50 | | | | 6.77 | (A) | | | 1.33 | |
| |
| Transamerica Multi-Managed Balanced | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 972.00 | | | | 7.31 | (A) | | | 1,017.80 | | | | 7.48 | (A) | | | 1.47 | |
| Class B | | | 1,000.00 | | | | 968.00 | | | | 11.21 | (A) | | | 1,013.81 | | | | 11.47 | (A) | | | 2.26 | |
| Class C | | | 1,000.00 | | | | 969.40 | | | | 10.03 | (A) | | | 1,015.02 | | | | 10.26 | (A) | | | 2.02 | |
| Class I | | | 1,000.00 | | | | 974.40 | | | | 4.88 | (A) | | | 1,020.27 | | | | 4.99 | (A) | | | 0.98 | |
| Class P | | | 1,000.00 | | | | 973.70 | | | | 5.47 | (A) | | | 1,019.66 | | | | 5.60 | (A) | | | 1.10 | |
| |
| Transamerica Systematic Small/Mid Cap Value | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 852.60 | | | | 6.77 | (A) | | | 1,017.90 | | | | 7.37 | (A) | | | 1.45 | |
| Class B | | | 1,000.00 | | | | 849.60 | | | | 9.79 | (A) | | | 1,014.62 | | | | 10.66 | (A) | | | 2.10 | |
| Class C | | | 1,000.00 | | | | 849.80 | | | | 9.70 | (A) | | | 1,014.72 | | | | 10.56 | (A) | | | 2.08 | |
| Class I | | | 1,000.00 | | | | 854.50 | | | | 4.67 | (A) | | | 1,020.16 | | | | 5.09 | (A) | | | 1.00 | |
| Class I2 | | | 1,000.00 | | | | 854.90 | | | | 4.21 | (A) | | | 1,020.67 | | | | 4.58 | (A) | | | 0.90 | |
| |
| Transamerica TS&W International Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 852.00 | | | | 7.00 | (A) | | | 1,017.64 | | | | 7.63 | (A) | | | 1.50 | |
| Class C | | | 1,000.00 | | | | 849.30 | | | | 10.07 | (A) | | | 1,014.32 | | | | 10.97 | (A) | | | 2.16 | |
| Class I | | | 1,000.00 | | | | 853.30 | | | | 5.33 | (A) | | | 1,019.46 | | | | 5.80 | (A) | | | 1.14 | |
| Class I2 | | | 1,000.00 | | | | 854.00 | | | | 4.72 | (A) | | | 1,020.11 | | | | 5.14 | (A) | | | 1.01 | |
| |
| Transamerica WMC Diversified Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 908.70 | | | | 7.31 | (A) | | | 1,017.54 | | | | 7.73 | (A) | | | 1.52 | |
| Class B | | | 1,000.00 | | | | 905.00 | | | | 10.42 | (A) | | | 1,014.27 | | | | 11.02 | (A) | | | 2.17 | |
| Class C | | | 1,000.00 | | | | 905.40 | | | | 10.42 | (A) | | | 1,014.27 | | | | 11.02 | (A) | | | 2.17 | |
| Class I | | | 1,000.00 | | | | 909.90 | | | | 5.63 | (A) | | | 1,019.31 | | | | 5.96 | (A) | | | 1.17 | |
| Class I2 | | | 1,000.00 | | | | 911.50 | | | | 3.85 | (A) | | | 1,021.17 | | | | 4.08 | (A) | | | 0.80 | |
| Class P | | | 1,000.00 | | | | 910.10 | | | | 5.54 | (A) | | | 1,019.41 | | | | 5.85 | (A) | | | 1.15 | |
| |
| Transamerica WMC Diversified Growth | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 908.30 | | | | 7.31 | (A) | | | 1,017.54 | | | | 7.73 | (A) | | | 1.52 | |
| Class B | | | 1,000.00 | | | | 905.70 | | | | 10.38 | (A) | | | 1,014.32 | | | | 10.97 | (A) | | | 2.17 | |
| Class C | | | 1,000.00 | | | | 906.10 | | | | 10.43 | (A) | | | 1,014.27 | | | | 11.02 | (A) | | | 2.17 | |
| Class I | | | 1,000.00 | | | | 911.00 | | | | 4.38 | (A) | | | 1,020.62 | | | | 4.63 | (A) | | | 0.91 | |
| Class I2 | | | 1,000.00 | | | | 912.50 | | | | 3.71 | (A) | | | 1,021.32 | | | | 3.92 | (A) | | | 0.77 | |
| Class P | | | 1,000.00 | | | | 910.20 | | | | 5.54 | (A) | | | 1,019.41 | | | | 5.85 | (A) | | | 1.15 | |
| Class T | | | 1,000.00 | | | | 911.30 | | | | 4.38 | (A) | | | 1,020.62 | | | | 4.63 | (A) | | | 0.91 | |
| |
| Transamerica WMC Quality Value | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 895.00 | | | | 6.26 | (A) | | | 1,018.60 | | | | 6.67 | (A) | | | 1.31 | |
| Class C | | | 1,000.00 | | | | 891.90 | | | | 8.87 | (A) | | | 1,015.83 | | | | 9.45 | (A) | | | 1.86 | |
| Class I | | | 1,000.00 | | | | 896.80 | | | | 4.49 | (A) | | | 1,020.47 | | | | 4.79 | (A) | | | 0.94 | |
| Class I2 | | | 1,000.00 | | | | 897.00 | | | | 3.63 | (A) | | | 1,021.37 | | | | 3.87 | (A) | | | 0.76 | |
| | |
| (A) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days), and divided by the number of days in the year (365 days). |
| |
| (B) | | 5% return per year before expenses. |
| |
| (C) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (62 days), and divided by the number of days in the year (365 days). |
| |
| (D) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (31 days), and divided by the number of days in the year (365 days). |
| | | | |
| | | | | |
| Transamerica Funds | | Page 27 | | Annual Report 2011 |
Schedules of Investments Composition
At October 31, 2011
(The following charts summarize the Schedule of Investments of each fund by asset type.)
(unaudited)
| | | | | |
| Transamerica AEGON Flexible Income | | % of Net | |
| (formerly, Transamerica Flexible Income) | | Assets | |
| |
| Corporate Debt Securities | | | 59 .9 | % |
| Securities Lending Collateral | | | 13 .7 | |
| Mortgage-Backed Securities | | | 8 .9 | |
| U.S. Government Obligations | | | 7 .8 | |
| Preferred Corporate Debt Securities | | | 5 .6 | |
| Foreign Government Obligations | | | 4 .3 | |
| Asset-Backed Securities | | | 3 .8 | |
| Repurchase Agreement | | | 1 .8 | |
| Preferred Stocks | | | 1 .7 | |
| Municipal Government Obligations | | | 1 .5 | |
| Common Stock | | | 1 .1 | |
| Convertible Preferred Stock | | | 0 .7 | |
| Warrant | | | 0 .5 | |
| U.S. Government Agency Obligation | | | 0 .4 | |
| Convertible Bond | | | 0 .4 | |
| Other Assets and Liabilities — Net | | | (12 .1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica AEGON High Yield Bond | | Assets | |
| |
| Corporate Debt Securities | | | 86 .8 | % |
| Securities Lending Collateral | | | 20 .1 | |
| Repurchase Agreement | | | 9 .1 | |
| Preferred Corporate Debt Securities | | | 2 .5 | |
| Preferred Stocks | | | 1 .4 | |
| Common Stocks | | | 0 .6 | |
| Warrants | | | 0 .0 | (A) |
| Other Assets and Liabilities — Net | | | (20 .5 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica AEGON Money Market (formerly, | | % of Net | |
| Transamerica Money Market) | | Assets | |
| |
| Commercial Papers | | | 49 .1 | % |
| Asset-Backed Commercial Paper | | | 29 .9 | |
| Repurchase Agreements | | | 8 .3 | |
| Certificates of Deposit | | | 7 .9 | |
| Corporate Debt Securities | | | 4 .9 | |
| Other Assets and Liabilities — Net | | | (0 .1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica AEGON Short-Term Bond | | % of Net | |
| (formerly, Transamerica Short-Term Bond) | | Assets | |
| |
| Corporate Debt Securities | | | 62 .5 | % |
| Mortgage-Backed Securities | | | 23 .5 | |
| Asset-Backed Securities | | | 9 .2 | |
| Securities Lending Collateral | | | 5 .0 | |
| Repurchase Agreement | | | 2 .3 | |
| Municipal Government Obligations | | | 1 .2 | |
| Loan Assignments | | | 0 .8 | |
| U.S. Government Agency Obligations | | | 0 .1 | |
| Other Assets and Liabilities — Net | | | (4 .6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Logan Circle Emerging Markets Debt | | Assets | |
| |
| Foreign Government Obligations | | | 54 .2 | % |
| Corporate Debt Securities | | | 46 .3 | |
| Repurchase Agreement | | | 1 .7 | |
| | | | |
| Other Assets and Liabilities — Net | | | (2.2) | (B) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica Morgan Stanley Capital Growth | | % of Net | |
| (formerly, Transamerica Focus) | | Assets | |
| |
| Common Stocks | | | 96 .5 | % |
| Repurchase Agreement | | | 15 .1 | |
| Securities Lending Collateral | | | 9 .4 | |
| Other Assets and Liabilities — Net | | | (21 .0 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica Morgan Stanley Growth Opportunities % of Net | | | |
| (formerly, Transamerica Growth Opportunities) | | Assets | |
| |
| Common Stocks | | | 97 .4 | % |
| Securities Lending Collateral | | | 20 .9 | |
| Repurchase Agreement | | | 2 .4 | |
| Preferred Stock | | | 0 .2 | |
| Other Assets and Liabilities — Net | | | (20 .9 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica Multi-Managed Balanced | | % of Net | |
| (formerly, Transamerica Balanced) | | Assets | |
| |
| Common Stocks | | | 59 .7 | % |
| U.S. Government Agency Obligations | | | 18 .2 | |
| Corporate Debt Securities | | | 11 .2 | |
| Mortgage-Backed Securities | | | 6 .6 | |
| Repurchase Agreement | | | 6 .4 | |
| U.S. Government Obligations | | | 2 .1 | |
| Asset-Backed Securities | | | 2 .1 | |
| Foreign Government Obligations | | | 1 .6 | |
| Preferred Corporate Debt Securities | | | 0 .1 | |
| Preferred Stock | | | 0 .0 | (A) |
| Purchased Options | | | 0 .0 | (A) |
| Other Assets and Liabilities — Net | | | (8 .0 | )(B) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica Systematic Small/Mid Cap Value | | % of Net | |
| (formerly, Transamerica Small/Mid Cap Value) | | Assets | |
| |
| Common Stocks | | | 96 .0 | % |
| Securities Lending Collateral | | | 15 .0 | |
| Repurchase Agreement | | | 2 .7 | |
| Other Assets and Liabilities — Net | | | (13 .7 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica TS&W International Equity | | % of Net | |
| (formerly, TS&W International Equity) | | Assets | |
| |
| Common Stocks | | | 97 .3 | % |
| Repurchase Agreement | | | 1 .5 | |
| Preferred Stock | | | 0 .9 | |
| Other Assets and Liabilities — Net | | | 0 .3 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica WMC Diversified Equity | | % of Net | |
| (formerly, Transamerica Diversified Equity) | | Assets | |
| |
| Common Stocks | | | 99 .6 | % |
| Securities Lending Collateral | | | 7 .5 | |
| Repurchase Agreement | | | 1 .7 | |
| Other Assets and Liabilities — Net | | | (8 .8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica WMC Diversified Growth | | Assets | |
| |
| Common Stocks | | | 100 .2 | % |
| Securities Lending Collateral | | | 6 .2 | |
| Repurchase Agreement | | | 1 .2 | |
| Other Assets and Liabilities — Net | | | (7 .6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica WMC Quality Value | | Assets | |
| |
| Common Stocks | | | 97 .6 | % |
| Repurchase Agreement | | | 4 .2 | |
| Other Assets and Liabilities — Net | | | (1 .8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | |
| (A) | | Amount rounds to less than 0.1%. |
| |
| (B) | | The Other Assets and Liabilities — Net category may include, but is not limited to, Forward Foreign Currency Contracts, Futures Contracts, Swap Agreements, Written Options and Swaptions, and Securities Sold Short. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 28 | | Annual Report 2011 |
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
U.S. GOVERNMENT OBLIGATIONS — 7.8% | | | | | | | | |
| U.S. Treasury Bond | | | | | | | | |
| 2.63%, 11/15/2020 | | $ | 4,575 | | | $ | 4,799 | |
| U.S. Treasury Inflation Indexed Bond | | | | | | | | |
| 2.50%, 01/15/2029 | | | 2,216 | | | | 2,902 | |
| U.S. Treasury Note | | | | | | | | |
| 1.25%, 09/30/2015 | | | 475 | | | | 486 | |
| 1.38%, 05/15/2013 | | | 2,430 | | | | 2,473 | |
| 2.13%, 02/29/2016 | | | 6,150 | | | | 6,499 | |
| 3.50%, 05/15/2020 | | | 2,150 | | | | 2,421 | |
| | | | | | | | |
Total U.S. Government Obligations (cost $18,121) | | | | | | | 19,580 | |
| | | | | | | | |
| | | | | | | | | |
U.S. GOVERNMENT AGENCY OBLIGATION — 0.4% | | | | | | | | |
| Freddie Mac, IO | | | | | | | | |
| 5.00%, 08/01/2035 | | | 6,961 | | | | 1,127 | |
Total U.S. Government Agency Obligation (cost $1,769) | | | | | | | | |
| | | | | | | | | |
FOREIGN GOVERNMENT OBLIGATIONS — 4.3% | | | | | | | | |
| Canada Housing Trust No. 1 | | | | | | | | |
| 3.15%, 06/15/2015 — 144A | | CAD2,500 | | | 2,645 | |
| Republic of Chile | | | | | | | | |
| 5.50%, 08/05/2020 | | CLP994,500 | | | 2,134 | |
| Republic of The Philippines | | | | | | | | |
| 4.95%, 01/15/2021 | | PHP90,000 | | | 2,032 | |
| United Mexican States | | | | | | | | |
| 7.00%, 06/19/2014 | | MXN18,000 | | | 1,428 | |
| 7.50%, 06/21/2012 | | | 35,000 | | | | 2,675 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $10,565) | | | | | | | 10,914 | |
| | | | | | | | |
| | | | | | | | | |
MORTGAGE-BACKED SECURITIES — 8.9% | | | | | | | | |
| American General Mortgage Loan Trust | | | | | | | | |
| Series 2009-1, Class A6 | | | | | | | | |
| 5.75%, 09/25/2048 — 144A * | | $ | 1,785 | | | | 1,802 | |
| American Tower Trust | | | | | | | | |
| Series 2007-1A, Class D | | | | | | | | |
| 5.96%, 04/15/2037 — 144A | | | 1,950 | | | | 2,080 | |
| BCAP LLC Trust | | | | | | | | |
| Series 2009-RR3, Class 2A1 | | | | | | | | |
| 5.41%, 05/26/2037 — 144A * | | | 245 | | | | 243 | |
| Series 2009-RR6, Class 2A1 | | | | | | | | |
| 5.20%, 08/26/2035 — 144A * | | | 1,027 | | | | 934 | |
| Series 2009-RR10, Class 2A1 | | | | | | | | |
| 2.81%, 08/26/2035 — 144A * | | | 739 | | | | 708 | |
| Series 2009-RR14, Class 1A1 | | | | | | | | |
| 6.00%, 05/26/2037 — 144A * | | | 1,442 | | | | 1,480 | |
| Series 2010-RR1, Class 12A1 | | | | | | | | |
| 5.25%, 08/26/2036 — 144A * | | | 1,478 | | | | 1,528 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
| Series 2004-3T1, Class A3 | | | | | | | | |
| 5.00%, 05/25/2034 | | | 1,238 | | | | 1,271 | |
| Credit Suisse Mortgage Capital Certificates | | | | | | | | |
| Series 2010-18R, Class 1A11 | | | | | | | | |
| 3.75%, 08/26/2035 — 144A * | | | 1,056 | | | | 1,038 | |
| Cresi Finance, LP | | | | | | | | |
| Series 2006-A, Class C | | | | | | | | |
| 0.84%, 03/25/2017 — 144A * | | | 1,322 | | | | 1,058 | |
| Jefferies & Co., Inc. | | | | | | | | |
| Series 2009-R2, Class 2A | | | | | | | | |
| 6.13%, 12/26/2037 — 144A * | | | 433 | | | | 434 | |
| Series 2009-R7, Class 1A1 | | | | | | | | |
| 5.23%, 02/26/2036 — 144A * | | | 741 | | | | 714 | |
| Series 2009-R7, Class 4A1 | | | | | | | | |
| 2.74%, 09/26/2034 — 144A * | | | 783 | | | | 726 | |
| Series 2009-R7, Class 10A3 | | | | | | | | |
| 6.00%, 12/26/2036 — 144A | | | 348 | | | | 346 | |
| Series 2009-R7, Class 12A1 | | | | | | | | |
| 5.17%, 08/26/2036 — 144A * | | | 395 | | | | 390 | |
| Series 2009-R9, Class 1A1 | | | | | | | | |
| 2.57%, 08/26/2046 — 144A * | | | 715 | | | | 699 | |
| JPMorgan Chase Commercial Mortgage | | | | | | | | |
| Securities Corp. | | | | | | | | |
| Series 2007-LD11, Class ASB | | | | | | | | |
| 5.82%, 06/15/2049 * | | | 1,180 | | | | 1,255 | |
| JPMorgan Re-REMIC | | | | | | | | |
| Series 2009-7, Class 8A1 | | | | | | | | |
| 5.60%, 01/27/2047 — 144A * | | | 717 | | | | 719 | |
| LSTAR Commercial Mortgage Trust | | | | | | | | |
| Series 2011-1, Class A | | | | | | | | |
| 3.91%, 06/25/2043 — 144A | | | 1,189 | | | | 1,200 | |
| Morgan Stanley Re-REMIC Trust | | | | | | | | |
| Series 2010-GG10, Class A4A | | | | | | | | |
| 5.79%, 08/15/2045 — 144A * | | | 1,740 | | | | 1,927 | |
| WaMu Mortgage Pass-Through Certificates | | | | | | | | |
| Series 2003-S9, Class A6 | | | | | | | | |
| 5.25%, 10/25/2033 | | | 1,112 | | | | 1,119 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
| Series 2003-G, Class A1 | | | | | | | | |
| 4.10%, 06/25/2033 * | | | 360 | | | | 361 | |
| Series 2003-L, Class 1A2 | | | | | | | | |
| 4.50%, 11/25/2033 * | | | 274 | | | | 276 | |
| | | | | | | | |
Total Mortgage-Backed Securities (cost $21,954) | | | | | | | 22,308 | |
| | | | | | | | |
| | | | | | | | | |
ASSET-BACKED SECURITIES — 3.8% | | | | | | | | |
| America West Airlines Pass-Through Trust | | | | | | | | |
| Series 2000-1, Class G | | | | | | | | |
| 8.06%, 07/02/2020 | | | 1,048 | | | | 1,048 | |
| Continental Airlines Pass-Through Trust | | | | | | | | |
| Series 1997-1, Class A | | | | | | | | |
| 7.46%, 04/01/2015 | | | 1,426 | | | | 1,412 | |
| Gazprom OAO Via GAZ Capital SA | | | | | | | | |
| 8.13%, 07/31/2014 — 144A | | | 2,060 | | | | 2,292 | |
| Northwest Airlines Pass-Through Trust | | | | | | | | |
| Series 2002-1, Class G2 | | | | | | | | |
| 6.26%, 11/20/2021 | | | 2,489 | | | | 2,457 | |
| UAL Pass-Through Trust | | | | | | | | |
| Series 2009-1 | | | | | | | | |
| 10.40%, 11/01/2016 | | | 2,091 | | | | 2,311 | |
| | | | | | | | |
Total Asset-Backed Securities (cost $9,388) | | | | | | | 9,520 | |
| | | | | | | | |
| | | | | | | | | |
MUNICIPAL GOVERNMENT OBLIGATIONS — 1.5% | | | | | | | | |
| Rhode Island Economic Development Corp. | | | | | | | | |
| 6.00%, 11/01/2015 § | | | 1,545 | | | | 1,587 | |
| State of California | | | | | | | | |
| 7.95%, 03/01/2036 | | | 1,820 | | | | 2,066 | |
| | | | | | | | |
Total Municipal Government Obligations (cost $3,367) | | | | | | | 3,653 | |
| | | | | | | | |
| | | | | | | | | |
PREFERRED CORPORATE DEBT SECURITIES — 5.6% | | | | | | | | |
Commercial Banks — 2.7% | | | | | | | | |
| PNC Financial Services Group, Inc. | | | | | | | | |
| 8.25%, 05/21/2013 * Ž ^ | | | 2,500 | | | | 2,526 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 29 | | Annual Report 2011 |
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
Commercial Banks (continued) | | | | | | | | |
| Rabobank Nederland NV | | | | | | | | |
| 11.00%, 06/30/2019 — 144A * Ž | | $ | 1,695 | | | $ | 2,051 | |
| Wells Fargo & Co. — Series K | | | | | | | | |
| 7.98%, 03/15/2018 * Ž ^ | | | 2,400 | | | | 2,568 | |
Diversified Financial Services — 1.9% | | | | | | | | |
| JPMorgan Chase Capital XXV — Series Y | | | | | | | | |
| 6.80%, 10/01/2037 | | | 1,500 | | | | 1,498 | |
| ZFS Finance USA Trust II | | | | | | | | |
| 6.45%, 12/15/2065 — 144A * | | | 3,300 | | | | 3,168 | |
Insurance — 1.0% | | | | | | | | |
| Reinsurance Group of America, Inc. | | | | | | | | |
| 6.75%, 12/15/2065 * | | | 2,760 | | | | 2,395 | |
| | | | | | | | |
Total Preferred Corporate Debt Securities (cost $13,866) | | | | | | | 14,206 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 59.9% | | | | | | | | |
Beverages — 1.2% | | | | | | | | |
| Anheuser-Busch InBev Worldwide, Inc. | | | | | | | | |
| 9.75%, 11/17/2015 | | BRL2,200 | | | 1,352 | |
| Beverages & More, Inc. | | | | | | | | |
| 9.63%, 10/01/2014 — 144A | | $ | 1,635 | | | | 1,651 | |
Building Products — 0.4% | | | | | | | | |
| Voto-Votorantim Overseas Trading | | | | | | | | |
| Operations NV | | | | | | | | |
| 6.63%, 09/25/2019 — 144A^ | | | 840 | | | | 888 | |
Capital Markets — 1.5% | | | | | | | | |
| BP Capital Markets PLC | | | | | | | | |
| 4.74%, 03/11/2021 ^ | | | 1,330 | | | | 1,492 | |
| Macquarie Group, Ltd. | | | | | | | | |
| 6.25%, 01/14/2021 — 144A ^ | | | 2,375 | | | | 2,346 | |
Commercial Banks — 5.1% | | | | | | | | |
| Barclays Bank PLC | | | | | | | | |
| 7.38%, 06/29/2049 | | | 1,298 | | | | 1,279 | |
| 10.18%, 06/12/2021 — 144A | | | 1,480 | | | | 1,652 | |
| BBVA Bancomer SA | | | | | | | | |
| 6.50%, 03/10/2021 — 144A ^ | | | 1,400 | | | | 1,393 | |
| M&I Marshall & Ilsley Bank | | | | | | | | |
| 4.85%, 06/16/2015 | | | 1,245 | | | | 1,326 | |
| 5.00%, 01/17/2017 | | | 2,050 | | | | 2,164 | |
| Regions Bank | | | | | | | | |
| 7.50%, 05/15/2018 ^ | | | 2,560 | | | | 2,502 | |
| Zions Bancorporation | | | | | | | | |
| 7.75%, 09/23/2014 | | | 2,500 | | | | 2,660 | |
Commercial Services & Supplies — 0.6% | | | | | | | | |
| Steelcase, Inc. | | | | | | | | |
| 6.38%, 02/15/2021 | | | 1,385 | | | | 1,443 | |
Consumer Finance — 0.9% | | | | | | | | |
| Block Financial LLC | | | | | | | | |
| 5.13%, 10/30/2014 ^ | | | 1,300 | | | | 1,339 | |
| Springleaf Finance Corp. | | | | | | | | |
| 6.90%, 12/15/2017 | | | 1,280 | | | | 976 | |
Containers & Packaging — 1.2% | | | | | | | | |
| Graphic Packaging International, Inc. | | | | | | | | |
| 9.50%, 06/15/2017 | | | 2,625 | | | | 2,867 | |
| Sealed Air Corp. | | | | | | | | |
| 8.13%, 09/15/2019 — 144A | | | 195 | | | | 212 | |
Distributors — 0.3% | | | | | | | | |
| Edgen Murray Corp. | | | | | | | | |
| 12.25%, 01/15/2015 ^ | | | 805 | | | | 761 | |
Diversified Financial Services — 15.0% | | | | | | | | |
| Aviation Capital Group Corp. | | | | | | | | |
| 7.13%, 10/15/2020 — 144A | | | 2,700 | | | | 2,660 | |
| Bank of America Corp. | | | | | | | | |
| 3.75%, 07/12/2016 | | | 2,065 | | | | 1,970 | |
| Cemex Finance LLC | | | | | | | | |
| 9.50%, 12/14/2016 — 144A ^ | | | 2,555 | | | | 2,233 | |
| Fibria Overseas Finance, Ltd. | | | | | | | | |
| 6.75%, 03/03/2021 — 144A | | | 1,245 | | | | 1,233 | |
| Glencore Funding LLC | | | | | | | | |
| 6.00%, 04/15/2014 — 144A | | | 2,000 | | | | 2,026 | |
| GTP Towers Issuer LLC | | | | | | | | |
| 4.44%, 02/15/2015 — 144A | | | 2,295 | | | | 2,428 | |
| International Lease Finance Corp. | | | | | | | | |
| 6.25%, 05/15/2019 | | | 2,560 | | | | 2,410 | |
| 6.50%, 09/01/2014 — 144A | | | 2,360 | | | | 2,431 | |
| Irish Life & Permanent PLC | | | | | | | | |
| 3.60%, 01/14/2013 — 144A | | | 1,700 | | | | 1,482 | |
| Marina District Finance Co., Inc. | | | | | | | | |
| 9.50%, 10/15/2015 ^ | | | 1,955 | | | | 1,935 | |
| 9.88%, 08/15/2018 ^ | | | 65 | | | | 64 | |
| Oaktree Capital Management, LP | | | | | | | | |
| 6.75%, 12/02/2019 — 144A | | | 1,950 | | | | 2,014 | |
| QHP Royalty Sub LLC | | | | | | | | |
| 10.25%, 03/15/2015 — 144A | | | 843 | | | | 857 | |
| Reynolds Group Issuer, Inc. | | | | | | | | |
| 9.88%, 08/15/2019 — 144A ^ | | | 1,100 | | | | 1,100 | |
| Rio Tinto Finance USA, Ltd. | | | | | | | | |
| 9.00%, 05/01/2019 ^ | | | 1,000 | | | | 1,366 | |
| Selkirk Cogen Funding Corp. — Series A | | | | | | | | |
| 8.98%, 06/26/2012 | | | 1,188 | | | | 1,207 | |
| Stone Street Trust | | | | | | | | |
| 5.90%, 12/15/2015 — 144A | | | 2,450 | | | | 2,328 | |
| TNK-BP Finance SA | | | | | | | | |
| 7.50%, 03/13/2013 — 144A | | | 1,345 | | | | 1,421 | |
| Unison Ground Lease Funding LLC | | | | | | | | |
| 6.39%, 04/15/2020 — 144A | | | 2,615 | | | | 2,822 | |
| WCP Wireless Site Funding LLC | | | | | | | | |
| 6.83%, 11/15/2015 — 144A | | | 2,570 | | | | 2,674 | |
| WMG Acquisition Corp. | | | | | | | | |
| 9.50%, 06/15/2016 — 144A | | | 1,285 | | | | 1,362 | |
Diversified Telecommunication Services — 1.4% | | | | | | | | |
| EH Holding Corp. | | | | | | | | |
| 6.50%, 06/15/2019 — 144A | | | 400 | | | | 409 | |
| 7.63%, 06/15/2021 — 144A ^ | | | 130 | | | | 135 | |
| Sprint Capital Corp. | | | | | | | | |
| 8.38%, 03/15/2012 ^ | | | 1,300 | | | | 1,312 | |
| West Corp. | | | | | | | | |
| 7.88%, 01/15/2019 | | | 320 | | | | 325 | |
| Windstream Corp. | | | | | | | | |
| 8.63%, 08/01/2016 | | | 1,219 | | | | 1,262 | |
Electric Utilities — 0.9% | | | | | | | | |
| Intergen NV | | | | | | | | |
| 9.00%, 06/30/2017 — 144A | | | 2,075 | | | | 2,145 | |
Electrical Equipment — 1.0% | | | | | | | | |
| Polypore International, Inc. | | | | | | | | |
| 7.50%, 11/15/2017 | | | 2,560 | | | | 2,611 | |
Electronic Equipment & Instruments — 0.9% | | | | | | | | |
| Anixter, Inc. | | | | | | | | |
| 5.95%, 03/01/2015 | | | 2,300 | | | | 2,283 | |
Energy Equipment & Services — 1.0% | | | | | | | | |
| Enterprise Products Operating LLC — Series A | | | | | | | | |
| 8.38%, 08/01/2066 * | | | 1,150 | | | | 1,190 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 30 | | Annual Report 2011 |
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
Energy Equipment & Services (continued) | | | | | | | | |
| Weatherford International, Ltd. | | | | | | | | |
| 9.63%, 03/01/2019 ^ | | $ | 945 | | | $ | 1,233 | |
Food & Staples Retailing — 1.7% | | | | | | | | |
| Ingles Markets, Inc. | | | | | | | | |
| 8.88%, 05/15/2017 | | | 2,140 | | | | 2,295 | |
| Stater Bros Holdings, Inc. | | | | | | | | |
| 7.38%, 11/15/2018 ^ | | | 65 | | | | 69 | |
| SUPERVALU, Inc. | | | | | | | | |
| 7.50%, 11/15/2014 ^ | | | 1,900 | | | | 1,929 | |
Food Products — 1.6% | | | | | | | | |
| Arcor SAIC | | | | | | | | |
| 7.25%, 11/09/2017 — 144A ^ | | | 1,285 | | | | 1,346 | |
| C&S Group Enterprises LLC | | | | | | | | |
| 8.38%, 05/01/2017 — 144A ^ | | | 1,279 | | | | 1,324 | |
| Michael Foods, Inc. | | | | | | | | |
| 9.75%, 07/15/2018 ^ | | | 1,200 | | | | 1,251 | |
Health Care Providers & Services — 0.8% | | | | | | | | |
| Community Health Systems, Inc. | | | | | | | | |
| 8.88%, 07/15/2015 ^ | | | 1,900 | | | | 1,945 | |
Hotels, Restaurants & Leisure — 1.5% | | | | | | | | |
| Firekeepers Development Authority | | | | | | | | |
| 13.88%, 05/01/2015 — 144A | | | 500 | | | | 570 | |
| GWR Operating Partnership LLP | | | | | | | | |
| 10.88%, 04/01/2017 | | | 1,500 | | | | 1,598 | |
| MGM Resorts International | | | | | | | | |
| 6.75%, 09/01/2012 ^ | | | 1,600 | | | | 1,588 | |
| Station Casinos, Inc. | | | | | | | | |
| 6.88%, 03/01/2016 Ә Џ ‡ | | | 700 | | | | ♦ | |
Household Durables — 0.7% | | | | | | | | |
| Lennar Corp. | | | | | | | | |
| 12.25%, 06/01/2017 | | | 550 | | | | 648 | |
| Sealy Mattress Co. | | | | | | | | |
| 8.25%, 06/15/2014 ^ | | | 1,125 | | | | 1,122 | |
Independent Power Producers & Energy Traders — 0.8% | | | | | | | | |
| NRG Energy, Inc. | | | | | | | | |
| 7.63%, 05/15/2019 — 144A | | | 640 | | | | 640 | |
| 7.88%, 05/15/2021 — 144A | | | 1,280 | | | | 1,293 | |
Insurance — 3.7% | | | | | | | | |
| American Financial Group, Inc. | | | | | | | | |
| 9.88%, 06/15/2019 | | | 1,100 | | | | 1,304 | |
| Chubb Corp. | | | | | | | | |
| 6.38%, 03/29/2067 * | | | 2,300 | | | | 2,312 | |
| Fidelity National Financial, Inc. | | | | | | | | |
| 6.60%, 05/15/2017 ^ | | | 2,580 | | | | 2,815 | |
| Hanover Insurance Group, Inc. | | | | | | | | |
| 6.38%, 06/15/2021 ^ | | | 1,515 | | | | 1,606 | |
| Oil Insurance, Ltd. | | | | | | | | |
| 3.35%, 10/13/2011 — 144A * Ž | | | 1,245 | | | | 1,176 | |
IT Services — 0.8% | | | | | | | | |
| Cardtronics, Inc. | | | | | | | | |
| 8.25%, 09/01/2018 ^ | | | 1,890 | | | | 1,999 | |
Machinery — 0.7% | | | | | | | | |
| American Railcar Industries, Inc. | | | | | | | | |
| 7.50%, 03/01/2014 | | | 1,855 | | | | 1,864 | |
Media — 0.4% | | | | | | | | |
| Lions Gate Entertainment, Inc. | | | | | | | | |
| 10.25%, 11/01/2016 — 144A | | | 1,010 | | | | 1,018 | |
Metals & Mining — 1.0% | | | | | | | | |
| Anglo American Capital PLC | | | | | | | | |
| 9.38%, 04/08/2019 — 144A ^ | | | 890 | | | | 1,153 | |
| FMG Resources Property, Ltd. | | | | | | | | |
| 7.00%, 11/01/2015 — 144A | | | 160 | | | | 160 | |
| Thompson Creek Metals Co., Inc. | | | | | | | | |
| 7.38%, 06/01/2018 — 144A | | | 1,465 | | | | 1,220 | |
Multi-Utilities — 0.8% | | | | | | | | |
| Black Hills Corp. | | | | | | | | |
| 5.88%, 07/15/2020 | | | 1,200 | | | | 1,347 | |
| 9.00%, 05/15/2014 | | | 690 | | | | 792 | |
Oil, Gas & Consumable Fuels — 3.8% | | | | | | | | |
| Berry Petroleum Co. | | | | | | | | |
| 10.25%, 06/01/2014 | | | 1,575 | | | | 1,783 | |
| Connacher Oil and Gas, Ltd. | | | | | | | | |
| 8.50%, 08/01/2019 — 144A | | | 1,350 | | | | 986 | |
| Energy Transfer Equity, LP | | | | | | | | |
| 7.50%, 10/15/2020 ^ | | | 320 | | | | 346 | |
| Lukoil International Finance BV | | | | | | | | |
| 6.38%, 11/05/2014 — 144A | | | 1,280 | | | | 1,362 | |
| Petrohawk Energy Corp. | | | | | | | | |
| 7.25%, 08/15/2018 | | | 1,050 | | | | 1,202 | |
| Petroleum Co., of Trinidad & Tobago, Ltd. | | | | | | | | |
| 9.75%, 08/14/2019 — 144A | | | 876 | | | | 1,019 | |
| Petroleum Development Corp. | | | | | | | | |
| 12.00%, 02/15/2018 | | | 1,000 | | | | 1,085 | |
| Ras Laffan Liquefied Natural Gas Co., Ltd. III | | | | | | | | |
| 6.75%, 09/30/2019 — 144A ^ | | | 1,545 | | | | 1,828 | |
Paper & Forest Products — 1.4% | | | | | | | | |
| Ainsworth Lumber Co., Ltd. | | | | | | | | |
| 11.00%, 07/29/2015 — 144A Ώ | | | 3,240 | | | | 2,171 | |
| Exopack Holding Corp. | | | | | | | | |
| 10.00%, 06/01/2018 — 144A | | | 1,280 | | | | 1,254 | |
Real Estate Investment Trusts — 2.0% | | | | | | | | |
| Entertainment Properties Trust | | | | | | | | |
| 7.75%, 07/15/2020 | | | 2,335 | | | | 2,452 | |
| Kilroy Realty, LP | | | | | | | | |
| 6.63%, 06/01/2020 | | | 2,440 | | | | 2,606 | |
Semiconductors & Semiconductor Equipment — 0.2% | | | | | | | | |
| Sensata Technologies BV | | | | | | | | |
| 6.50%, 05/15/2019 — 144A ^ | | | 575 | | | | 575 | |
Software — 0.2% | | | | | | | | |
| First Data Corp. | | | | | | | | |
| 7.38%, 06/15/2019 — 144A | | | 630 | | | | 624 | |
Specialty Retail — 1.0% | | | | | | | | |
| Michaels Stores, Inc. | | | | | | | | |
| 11.38%, 11/01/2016 ^ | | | 1,200 | | | | 1,251 | |
| Sally Holdings LLC | | | | | | | | |
| 9.25%, 11/15/2014 ^ | | | 1,250 | | | | 1,283 | |
Tobacco — 0.8% | | | | | | | | |
| Lorillard Tobacco Co. | | | | | | | | |
| 8.13%, 06/23/2019 ^ | | | 1,635 | | | | 1,970 | |
Transportation Infrastructure — 0.8% | | | | | | | | |
| Martin Midstream Partners LP | | | | | | | | |
| 8.88%, 04/01/2018 | | | 1,900 | | | | 1,971 | |
Wireless Telecommunication Services — 3.8% | | | | | | | | |
| Crown Castle Towers LLC | | | | | | | | |
| 4.88%, 08/15/2020 — 144A | | | 2,350 | | | | 2,402 | |
| 6.11%, 01/15/2020 — 144A | | | 2,300 | | | | 2,541 | |
| Nextel Communications, Inc. — Series D | | | | | | | | |
| 7.38%, 08/01/2015 ^ | | | 2,200 | | | | 2,101 | |
| SBA Tower Trust | | | | | | | | |
| 5.10%, 04/15/2017 — 144A | | | 2,365 | | | | 2,577 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $146,669) | | | | | | | 151,004 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 31 | | Annual Report 2011 |
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
CONVERTIBLE BOND — 0.4% | | | | | | | | |
Automobiles — 0.4% | | | | | | | | |
| Ford Motor Co. | | | | | | | | |
| 4.25%, 11/15/2016 | | $ | 730 | | | $ | 1,086 | |
Total Convertible Bond (cost $730) | | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
CONVERTIBLE PREFERRED STOCK — 0.7% | | | | | | | | |
Diversified Financial Services — 0.7% | | | | | | | | |
| Vale Capital II, 6.75% | | | 22,000 | | | | 1,681 | |
Total Convertible Preferred Stock (cost $1,657) | | | | | | | | |
| | | | | | | | | |
PREFERRED STOCKS — 1.7% | | | | | | | | |
Commercial Banks — 0.4% | | | | | | | | |
| BB&T Capital Trust VI, 9.60% ^ | | | 34,000 | | | | 886 | |
Consumer Finance — 0.6% | | | | | | | | |
| Ally Financial, Inc., 8.50% * | | | 75,200 | | | | 1,459 | |
Diversified Telecommunication Services — 0.7% | | | | | | | | |
| Centaur Funding Corp., 9.08% — 144A | | | 1,661 | | | | 1,843 | |
| | | | | | | |
Total Preferred Stocks (cost $4,883) | | | | | | | 4,188 | |
| | | | | | | | |
| | | | | | | | | |
COMMON STOCK — 1.1% | | | | | | | | |
Diversified Telecommunication Services — 1.1% | | | | | | | | |
| Verizon Communications, Inc. ^ | | | 75,000 | | | | 2,774 | |
Total Common Stock (cost $2,349) | | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
WARRANT — 0.5% | | | | | | | | |
Commercial Banks — 0.5% | | | | | | | | |
| Wells Fargo & Co. ‡ | | | | | | | | |
| Expiration: 10/28/2018 | | | | | | | | |
| Exercise Price: $34.01 | | | 148,210 | | | $ | 1,281 | |
Total Warrant (cost $1,141) | | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 13.7% | | | | | | | | |
| State Street Navigator Securities Lending | | | | | | | | |
| Trust — Prime Portfolio, 0.23% ▲ | | | 34,430,358 | | | | 34,430 | |
Total Securities Lending Collateral (cost $34,430) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT — 1.8% | | | | | | | | |
| State Street Bank & Trust Co. | | | | | | | | |
| 0.03% ▲, dated 10/31/2011, to be repurchased at $4,503 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $4,596. | | $ | 4,503 | | | | 4,503 | |
Total Repurchase Agreement (cost $4,503) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $275,392) П | | | | | | | 282,255 | |
| Other Assets and Liabilities — Net | | | | | | | (30,438 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 251,817 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| § | | Illiquid. This security had a value of $1,587, or 0.63%, of the fund’s net assets. |
| |
| Ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $33,731. |
| |
| Џ | | In default. |
| |
| Ә | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of less than $1, or less than 0.01% of the fund’s net assets. |
| |
| Ώ | | Payment in-kind. Securities pay interest or dividends in the form of additional bonds or preferred stock. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $275,392. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $11,775 and $4,912, respectively. Net unrealized appreciation for tax purposes is $6,863. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated to $97,166, or 38.59%, of the fund’s net assets. |
| |
IO | | Interest Only |
| |
REMIC | | Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities) |
CURRENCY ABBREVIATIONS:
| | | |
|
BRL | | Brazilian Real |
| |
CAD | | Canadian Dollar |
| |
CLP | | Chilean Peso |
| |
MXN | | Mexican Peso |
| |
PHP | | Philippines Peso |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 32 | | Annual Report 2011 |
Transamerica AEGON Flexible Income
(formerly, Transamerica Flexible Income)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Level 3 — | | | | |
| | | Level 1 — | | | Level 2 — Other | | | Significant | | | | |
| | | Quoted | | | Significant | | | Unobservable | | | Value | |
| Investment Securities | | Prices | | | Observable Inputs | | | Inputs | | | at 10/31/2011 | |
| Asset-Backed Securities | | $ | — | | | $ | 9,520 | | | $ | — | | | $ | 9,520 | |
| Common Stock | | | 2,774 | | | | — | | | | — | | | | 2,774 | |
| Convertible Bond | | | — | | | | 1,086 | | | | — | | | | 1,086 | |
| Convertible Preferred Stock | | | 1,681 | | | | — | | | | — | | | | 1,681 | |
| Corporate Debt Securities | | | — | | | | 151,004 | | | | ♦ | | | | 151,004 | |
| Foreign Government Obligations | | | — | | | | 10,914 | | | | — | | | | 10,914 | |
| Mortgage-Backed Securities | | | — | | | | 22,308 | | | | — | | | | 22,308 | |
| Municipal Government Obligations | | | — | | | | 3,653 | | | | — | | | | 3,653 | |
| Preferred Corporate Debt Securities | | | — | | | | 14,206 | | | | — | | | | 14,206 | |
| Preferred Stocks | | | 4,188 | | | | — | | | | — | | | | 4,188 | |
| Repurchase Agreement | | | — | | | | 4,503 | | | | — | | | | 4,503 | |
| Securities Lending Collateral | | | 34,430 | | | | — | | | | — | | | | 34,430 | |
| U.S. Government Agency Obligation | | | — | | | | 1,127 | | | | — | | | | 1,127 | |
| U.S. Government Obligations | | | — | | | | 19,580 | | | | — | | | | 19,580 | |
| Warrant | | | 1,281 | | | | — | | | | — | | | | 1,281 | |
Total | | $ | 44,354 | | | $ | 237,901 | | | $ | ♦ | | | $ | 282,255 | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | in Unrealized | |
| | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | Appreciation/ | |
| | Beginning | | | | | | | | | | | Accrued | | | | | | | Unrealized | | | | | | | | | | | | | | (Depreciation) | |
| | | Balance | | | | | | | | | | | Discounts/ | | | Total Realized | | | Appreciation | | | Transfers into | | | Transfers out of | | | Ending Balance | | on Investments |
| Securities | | at 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | /(Depreciation) ƒ | | | Level 3 | | | Level 3 | | | at 10/31/2011 | | | Held at 10/31/2011 ƒ | |
| Corporate Debt Securities | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | ♦ | | | $ | — | | | $ | ♦ | | | $ | (♦ | ) |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| |
| ♦ | | Amount rounds to less than 1. |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 33 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
PREFERRED CORPORATE DEBT SECURITIES — 2.5% | | | | | | | | |
Diversified Financial Services — 1.4% | | | | | | | | |
| Bank of America Corp.- Series K | | | | | | | | |
| 8.00%, 01/30/2018 * ž ^ | | $ | 9,605 | | | $ | 8,936 | |
| JPMorgan Chase & Co.- Series 1 | | | | | | | | |
| 7.90%, 04/30/2018 * ž ^ | | | 2,250 | | | | 2,423 | |
Insurance — 1.1% | | | | | | | | |
| Lincoln National Corp. | | | | | | | | |
| 7.00%, 05/17/2066 * ^ | | | 8,825 | | | | 8,296 | |
| | | | | | | | |
Total Preferred Corporate Debt Securities (cost $17,725) | | | | | | | 19,655 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 86.8% | | | | | | | | |
Aerospace & Defense — 1.4% | | | | | | | | |
| BE Aerospace, Inc. | | | | | | | | |
| 8.50%, 07/01/2018 | | | 2,600 | | | | 2,840 | |
| Bombardier, Inc. | | | | | | | | |
| 7.50%, 03/15/2018 — 144A ^ | | | 450 | | | | 491 | |
| 7.75%, 03/15/2020 — 144A ^ | | | 1,300 | | | | 1,430 | |
| Hexcel Corp. | | | | | | | | |
| 6.75%, 02/01/2015 ^ | | | 776 | | | | 788 | |
| Spirit Aerosystems, Inc. | | | | | | | | |
| 6.75%, 12/15/2020 | | | 920 | | | | 959 | |
| 7.50%, 10/01/2017 | | | 2,795 | | | | 3,004 | |
| Triumph Group, Inc. | | | | | | | | |
| 8.63%, 07/15/2018 ^ | | | 1,500 | | | | 1,650 | |
Airlines — 0.2% | | | | | | | | |
| U.S. Airways Pass-Through Trust — Series 2010-1, Class A | | | | | | | | |
| 6.25%, 04/22/2023 ^ | | | 1,935 | | | | 1,742 | |
Auto Components — 0.2% | | | | | | | | |
| Lear Corp. | | | | | | | | |
| 7.88%, 03/15/2018 | | | 1,180 | | | | 1,271 | |
| 8.13%, 03/15/2020 | | | 440 | | | | 482 | |
Automobiles — 1.2% | | | | | | | | |
| Chrysler Group LLC | | | | | | | | |
| 8.00%, 06/15/2019 — 144A ^ | | | 3,210 | | | | 2,953 | |
| 8.25%, 06/15/2021 — 144A ^ | | | 2,900 | | | | 2,654 | |
| General Motors Corp. (Escrow Shares) | | | | | | | | |
| 7.20%, 01/15/2049 Ə ‡ | | | 2,825 | | | | ♦ | |
| Jaguar Land Rover PLC | | | | | | | | |
| 7.75%, 05/15/2018 — 144A ^ | | | 650 | | | | 644 | |
| 8.13%, 05/15/2021 — 144A | | | 3,160 | | | | 3,112 | |
Beverages — 1.6% | | | | | | | | |
| Constellation Brands, Inc. | | | | | | | | |
| 7.25%, 09/01/2016 — 05/15/2017 | | | 6,250 | | | | 6,843 | |
| Cott Beverages, Inc. | | | | | | | | |
| 8.13%, 09/01/2018 | | | 745 | | | | 795 | |
| 8.38%, 11/15/2017 | | | 4,370 | | | | 4,698 | |
Building Products — 2.5% | | | | | | | | |
| Dynacast International LLC | | | | | | | | |
| 9.25%, 07/15/2019 — 144A | | | 4,200 | | | | 3,864 | |
| Euramax International, Inc. | | | | | | | | |
| 9.50%, 04/01/2016 — 144A | | | 3,085 | | | | 2,622 | |
| Masco Corp. | | | | | | | | |
| 7.75%, 08/01/2029 ^ | | | 3,245 | | | | 3,129 | |
| Ply Gem Industries, Inc. | | | | | | | | |
| 8.25%, 02/15/2018 ^ | | | 10,647 | | | | 10,035 | |
Chemicals — 1.6% | | | | | | | | |
| Huntsman International LLC | | | | | | | | |
| 5.50%, 06/30/2016 ^ | | | 1,575 | | | | 1,559 | |
| 8.63%, 03/15/2020 — 03/15/2021 ^ | | | 5,240 | | | | 5,367 | |
| Nova Chemicals Corp. | | | | | | | | |
| 3.54%, 11/15/2013 * ^ | | | 1,150 | | | | 1,136 | |
| 8.38%, 11/01/2016 | | | 3,725 | | | | 4,102 | |
Commercial Banks — 1.4% | | | | | | | | |
| CIT Group, Inc. | | | | | | | | |
| 7.00%, 05/01/2015 — 05/01/2017 | | | 1 | | | | 1 | |
| 7.00%, 05/04/2015 — 05/02/2017 — 144A | | | 8,200 | | | | 8,181 | |
| 7.00%, 05/02/2016 — 144A ^ | | | 2,843 | | | | 2,836 | |
Commercial Services & Supplies — 3.0% | | | | | | | | |
| AE Escrow Corp. | | | | | | | | |
| 9.75%, 03/15/2020 — 144A | | | 3,505 | | | | 3,645 | |
| Ceridian Corp. | | | | | | | | |
| 11.25%, 11/15/2015 ^ | | | 2,930 | | | | 2,491 | |
| 12.25%, 11/15/2015 Ώ | | | 4,321 | | | | 3,673 | |
| EnergySolutions, Inc. | | | | | | | | |
| 10.75%, 08/15/2018 | | | 3,140 | | | | 3,171 | |
| International Lease Finance Corp. | | | | | | | | |
| 8.25%, 12/15/2020 ^ | | | 1,925 | | | | 1,992 | |
| 8.63%, 09/15/2015 | | | 5,625 | | | | 5,907 | |
| Koppers, Inc. | | | | | | | | |
| 7.88%, 12/01/2019 | | | 2,495 | | | | 2,632 | |
Computers & Peripherals — 1.2% | | | | | | | | |
| Seagate HDD Cayman | | | | | | | | |
| 6.88%, 05/01/2020 | | | 4,265 | | | | 4,180 | |
| 7.75%, 12/15/2018 — 144A ^ | | | 4,650 | | | | 4,859 | |
Construction Materials — 0.5% | | | | | | | | |
| Vulcan Materials Co. | | | | | | | | |
| 7.00%, 06/15/2018 | | | 3,925 | | | | 3,905 | |
Consumer Finance — 2.5% | | | | | | | | |
| Ally Financial, Inc. | | | | | | | | |
| 6.75%, 12/01/2014 ^ | | | 3,740 | | | | 3,777 | |
| 8.00%, 03/15/2020 ^ | | | 4,350 | | | | 4,481 | |
| Springleaf Finance Corp. | | | | | | | | |
| 6.90%, 12/15/2017 | | | 15,050 | | | | 11,476 | |
Containers & Packaging — 1.4% | | | | | | | | |
| Cascades, Inc. | | | | | | | | |
| 7.75%, 12/15/2017 | | | 2,305 | | | | 2,259 | |
| 7.88%, 01/15/2020 | | | 750 | | | | 731 | |
| Graphic Packaging International, Inc. | | | | | | | | |
| 7.88%, 10/01/2018 | | | 2,400 | | | | 2,568 | |
| 9.50%, 06/15/2017 | | | 1,300 | | | | 1,420 | |
| Packaging Dynamics Corp. | | | | | | | | |
| 8.75%, 02/01/2016 — 144A | | | 3,420 | | | | 3,471 | |
| Sealed Air Corp. | | | | | | | | |
| 8.13%, 09/15/2019 — 144A ^ | | | 550 | | | | 597 | |
Diversified Consumer Services — 1.2% | | | | | | | | |
| Ford Holdings LLC | | | | | | | | |
| 9.30%, 03/01/2030 | | | 5,225 | | | | 6,896 | |
| Service Corp., International | | | | | | | | |
| 6.75%, 04/01/2015 — 04/01/2016 | | | 1,540 | | | | 1,641 | |
| 7.00%, 06/15/2017 | | | 1,065 | | | | 1,145 | |
Diversified Financial Services — 4.7% | | | | | | | | |
| Ford Motor Credit Co., LLC | | | | | | | | |
| 3.88%, 01/15/2015 | | | 5,500 | | | | 5,504 | |
| 5.00%, 05/15/2018 ^ | | | 1,950 | | | | 1,982 | |
| 5.88%, 08/02/2021 ^ | | | 1,225 | | | | 1,305 | |
| 7.00%, 04/15/2015 | | | 4,000 | | | | 4,360 | |
| Marina District Finance Co., Inc. | | | | | | | | |
| 9.50%, 10/15/2015 | | | 3,900 | | | | 3,861 | |
| 9.88%, 08/15/2018 ^ | | | 2,890 | | | | 2,854 | |
| Nuveen Investments, Inc. | | | | | | | | |
| 10.50%, 11/15/2015 ^ | | | 4,873 | | | | 4,873 | |
| Reynolds Group Issuer, Inc. | | | | | | | | |
| 6.88%, 02/15/2021 — 144A ^ | | | 300 | | | | 303 | |
| 7.13%, 04/15/2019 — 144A | | | 1,800 | | | | 1,836 | |
| 8.25%, 02/15/2021 — 144A | | | 1,320 | | | | 1,211 | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 34 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
Diversified Financial Services (continued) | | | | | | | | |
| Reynolds Group Issuer, Inc. (continued) | | | | | | | | |
| 9.00%, 04/15/2019 — 144A ^ | | $ | 5,175 | | | $ | 4,994 | |
| WMG Acquisition Corp. | | | | | | | | |
| 11.50%, 10/01/2018 — 144A | | | 3,120 | | | | 3,112 | |
Diversified Telecommunication Services — 6.1% | | | | | | | | |
| Cincinnati Bell, Inc. | | | | | | | | |
| 8.38%, 10/15/2020 ^ | | | 3,980 | | | | 4,060 | |
| 8.75%, 03/15/2018 ^ | | | 1,000 | | | | 960 | |
| EH Holding Corp. | | | | | | | | |
| 6.50%, 06/15/2019 — 144A ^ | | | 1,835 | | | | 1,876 | |
| 7.63%, 06/15/2021 — 144A | | | 400 | | | | 414 | |
| Frontier Communications Corp. | | | | | | | | |
| 7.88%, 04/15/2015 ^ | | | 1,200 | | | | 1,271 | |
| 8.25%, 04/15/2017 ^ | | | 1,600 | | | | 1,708 | |
| 9.00%, 08/15/2031 | | | 7,535 | | | | 7,384 | |
| Intelsat Jackson Holdings SA | | | | | | | | |
| 7.25%, 04/01/2019 — 144A | | | 2,300 | | | | 2,312 | |
| 7.50%, 04/01/2021 — 144A | | | 1,500 | | | | 1,508 | |
| 8.50%, 11/01/2019 | | | 1,550 | | | | 1,624 | |
| Intelsat Luxembourg SA | | | | | | | | |
| 11.50%, 02/04/2017 — 144A Ώ | | | 3,500 | | | | 3,500 | |
| Level 3 Communications, Inc. | | | | | | | | |
| 11.88%, 02/01/2019 | | | 1,250 | | | | 1,359 | |
| Level 3 Financing, Inc. | | | | | | | | |
| 8.13%, 07/01/2019 — 144A | | | 5,050 | | | | 5,000 | |
| PAETEC Holding Corp. | | | | | | | | |
| 8.88%, 06/30/2017 | | | 2,000 | | | | 2,160 | |
| Sprint Capital Corp. | | | | | | | | |
| 8.75%, 03/15/2032 | | | 4,625 | | | | 3,839 | |
| Windstream Corp. | | | | | | | | |
| 7.50%, 04/01/2023 | | | 8,200 | | | | 8,323 | |
Electric Utilities — 4.8% | | | | | | | | |
| AES Red Oak LLC — Series B | | | | | | | | |
| 9.20%, 11/30/2029 | | | 4,865 | | | | 4,938 | |
| Dynegy Holdings LLC | | | | | | | | |
| 7.50%, 06/01/2015 | | | 4,800 | | | | 3,324 | |
| 7.75%, 06/01/2019 | | | 8,915 | | | | 5,795 | |
| Elwood Energy LLC | | | | | | | | |
| 8.16%, 07/05/2026 | | | 5,876 | | | | 5,524 | |
| Homer City Funding LLC | | | | | | | | |
| 8.14%, 10/01/2019 | | | 3,074 | | | | 2,613 | |
| 8.73%, 10/01/2026 | | | 7,450 | | | | 6,258 | |
| Intergen NV | | | | | | | | |
| 9.00%, 06/30/2017 — 144A | | | 7,025 | | | | 7,261 | |
| LSP Energy, LP | | | | | | | | |
| 7.16%, 01/15/2014 | | | 1,666 | | | | 1,083 | |
| 8.16%, 07/15/2025 | | | 750 | | | | 542 | |
Food & Staples Retailing — 1.7% | | | | | | | | |
| Rite Aid Corp. | | | | | | | | |
| 7.50%, 03/01/2017 ^ | | | 2,000 | | | | 1,990 | |
| 9.38%, 12/15/2015 | | | 1,100 | | | | 1,034 | |
| 9.75%, 06/12/2016 | | | 1,700 | | | | 1,862 | |
| 10.38%, 07/15/2016 ^ | | | 2,625 | | | | 2,828 | |
| SUPERVALU, Inc. | | | | | | | | |
| 7.50%, 11/15/2014 ^ | | | 1,600 | | | | 1,624 | |
| 8.00%, 05/01/2016 ^ | | | 3,805 | | | | 3,995 | |
Food Products — 1.7% | | | | | | | | |
| Del Monte Foods Co. | | | | | | | | |
| 7.63%, 02/15/2019 — 144A ^ | | | 2,500 | | | | 2,375 | |
| Dole Food Co., Inc. | | | | | | | | |
| 8.00%, 10/01/2016 — 144A | | | 3,370 | | | | 3,555 | |
| Harmony Foods Corp. | | | | | | | | |
| 10.00%, 05/01/2016 — 144A | | | 638 | | | | 641 | |
| Pilgrim’s Pride Corp. | | | | | | | | |
| 7.88%, 12/15/2018 — 144A | | | 1,400 | | | | 1,162 | |
| Simmons Foods, Inc. | | | | | | | | |
| 10.50%, 11/01/2017 — 144A | | | 5,700 | | | | 5,330 | |
Health Care Equipment & Supplies — 0.5% | | | | | | | | |
| Kinetic Concepts, Inc. | | | | | | | | |
| 10.50%, 11/01/2018 — 144A | | | 3,645 | | | | 3,686 | |
Health Care Providers & Services — 3.8% | | | | | | | | |
| Community Health Systems, Inc. | | | | | | | | |
| 8.88%, 07/15/2015 ^ | | | 6,750 | | | | 6,910 | |
| GCB U.S. Oncology, Inc. (Escrow Shares) | | | | | | | | |
| 08/15/2017 | | | 4,970 | | | | 37 | |
| HCA, Inc. | | | | | | | | |
| 6.38%, 01/15/2015 ^ | | | 4,000 | | | | 4,110 | |
| 6.50%, 02/15/2020 ^ | | | 1,300 | | | | 1,362 | |
| 7.50%, 02/15/2022 ^ | | | 6,600 | | | | 6,732 | |
| Healthsouth Corp. | | | | | | | | |
| 7.25%, 10/01/2018 ^ | | | 1,165 | | | | 1,165 | |
| 7.75%, 09/15/2022 ^ | | | 5,100 | | | | 5,100 | |
| LifePoint Hospitals, Inc. | | | | | | | | |
| 6.63%, 10/01/2020 ^ | | | 3,765 | | | | 3,925 | |
Hotels, Restaurants & Leisure — 7.1% | | | | | | | | |
| Ameristar Casinos, Inc. | | | | | | | | |
| 7.50%, 04/15/2021 — 144A ^ | | | 4,275 | | | | 4,382 | |
| Caesars Entertainment Operating Co., Inc. | | | | | | | | |
| 10.00%, 12/15/2018 ^ | | | 6,075 | | | | 4,579 | |
| 11.25%, 06/01/2017 | | | 2,560 | | | | 2,739 | |
| 12.75%, 04/15/2018 | | | 7,300 | | | | 6,425 | |
| Firekeepers Development Authority | | | | | | | | |
| 13.88%, 05/01/2015 — 144A | | | 2,165 | | | | 2,468 | |
| GWR Operating Partnership LLP | | | | | | | | |
| 10.88%, 04/01/2017 | | | 5,465 | | | | 5,820 | |
| Mashantucket Western Pequot Tribe | | | | | | | | |
| 8.50%, 11/15/2015 — 144A Џ ‡ | | | 6,600 | | | | 347 | |
| MGM Resorts International | | | | | | | | |
| 7.50%, 06/01/2016 ^ | | | 2,625 | | | | 2,494 | |
| 10.00%, 11/01/2016 ^ | | | 3,775 | | | | 3,888 | |
| 10.38%, 05/15/2014 | | | 500 | | | | 558 | |
| 11.38%, 03/01/2018 ^ | | | 4,300 | | | | 4,676 | |
| Royal Caribbean Cruises, Ltd. | | | | | | | | |
| 7.00%, 06/15/2013 ^ | | | 100 | | | | 105 | |
| 7.25%, 06/15/2016 ^ | | | 1,300 | | | | 1,378 | |
| Seneca Gaming Corp. | | | | | | | | |
| 8.25%, 12/01/2018 — 144A | | | 2,000 | | | | 1,990 | |
| Sheraton Holding Corp. | | | | | | | | |
| 7.38%, 11/15/2015 ^ | | | 1,400 | | | | 1,544 | |
| Starwood Hotels & Resorts Worldwide, Inc. | | | | | | | | |
| 7.15%, 12/01/2019 ^ | | | 2,500 | | | | 2,825 | |
| WMG Acquisition Corp. | | | | | | | | |
| 9.50%, 06/15/2016 | | | 5,640 | | | | 5,978 | |
| Wynn Las Vegas LLC | | | | | | | | |
| 7.75%, 08/15/2020 | | | 3,072 | | | | 3,379 | |
Household Durables — 4.2% | | | | | | | | |
| Beazer Homes USA, Inc. | | | | | | | | |
| 9.13%, 06/15/2018 | | | 2,640 | | | | 1,888 | |
| 12.00%, 10/15/2017 ^ | | | 5,725 | | | | 6,133 | |
| Jarden Corp. | | | | | | | | |
| 7.50%, 05/01/2017 — 01/15/2020 | | | 5,100 | | | | 5,457 | |
| K. Hovnanian Enterprises, Inc. | | | | | | | | |
| 8.63%, 01/15/2017 | | | 2,725 | | | | 1,117 | |
| 10.63%, 10/15/2016 ^ | | | 3,000 | | | | 2,573 | |
| KB Home | | | | | | | | |
| 9.10%, 09/15/2017 ^ | | | 8,050 | | | | 7,365 | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 35 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
Household Durables (continued) | | | | | | | | |
| Meritage Homes Corp. | | | | | | | | |
| 6.25%, 03/15/2015 | | $ | 1,180 | | | $ | 1,133 | |
| 7.15%, 04/15/2020 ^ | | | 4,025 | | | | 3,713 | |
| Standard Pacific Corp. | | | | | | | | |
| 8.38%, 05/15/2018 — 01/15/2021 | | | 3,400 | | | | 3,131 | |
Independent Power Producers & Energy Traders — 2.6% | | | | | | | | |
| Calpine Corp. | | | | | | | | |
| 7.25%, 10/15/2017 — 144A ^ | | | 2,000 | | | | 2,080 | |
| 7.50%, 02/15/2021 — 144A | | | 1,725 | | | | 1,811 | |
| 7.88%, 07/31/2020 — 01/15/2023 — 144A ^ | | | 3,775 | | | | 4,044 | |
| Edison Mission Energy | | | | | | | | |
| 7.20%, 05/15/2019 | | | 3,650 | | | | 2,427 | |
| NRG Energy, Inc. | | | | | | | | |
| 7.63%, 01/15/2018 — 05/15/2019 — 144A | | | 5,700 | | | | 5,746 | |
| 7.88%, 05/15/2021 — 144A | | | 2,250 | | | | 2,273 | |
| 8.25%, 09/01/2020 ^ | | | 1,900 | | | | 1,967 | |
Insurance — 0.8% | | | | | | | | |
| Genworth Financial, Inc. | | | | | | | | |
| 6.15%, 11/15/2066 * | | | 2,000 | | | | 1,130 | |
| Liberty Mutual Group, Inc. | | | | | | | | |
| 10.75%, 06/15/2058 — 144A * | | | 4,400 | | | | 5,346 | |
IT Services — 1.3% | | | | | | | | |
| SunGard Data Systems, Inc. | | | | | | | | |
| 7.38%, 11/15/2018 ^ | | | 4,425 | | | | 4,525 | |
| 7.63%, 11/15/2020 ^ | | | 4,375 | | | | 4,484 | |
| Unisys Corp. | | | | | | | | |
| 12.50%, 01/15/2016 | | | 1,106 | | | | 1,186 | |
Leisure Equipment & Products — 0.1% | | | | | | | | |
| Icon Health & Fitness | | | | | | | | |
| 11.88%, 10/15/2016 — 144A | | | 600 | | | | 504 | |
Machinery — 0.6% | | | | | | | | |
| Case New Holland, Inc. | | | | | | | | |
| 7.88%, 12/01/2017 | | | 950 | | | | 1,071 | |
| Navistar International Corp. | | | | | | | | |
| 8.25%, 11/01/2021 ^ | | | 3,610 | | | | 3,926 | |
Media — 4.7% | | | | | | | | |
| CCO Holdings LLC | | | | | | | | |
| 6.50%, 04/30/2021 ^ | | | 2,500 | | | | 2,500 | |
| 7.00%, 01/15/2019 ^ | | | 3,775 | | | | 3,917 | |
| 7.25%, 10/30/2017 ^ | | | 1,750 | | | | 1,829 | |
| 7.88%, 04/30/2018 ^ | | | 450 | | | | 479 | |
| Cequel Communications Holdings I LLC and Cequel Capital Corp. | | | | | | | | |
| 8.63%, 11/15/2017 — 144A | | | 2,650 | | | | 2,769 | |
| Clear Channel Worldwide Holdings, Inc. | | | | | | | | |
| 9.25%, 12/15/2017 ^ | | | 475 | | | | 513 | |
| Clear Channel Worldwide Holdings, Inc. — Series B | | | | | | | | |
| 9.25%, 12/15/2017 | | | 5,075 | | | | 5,506 | |
| CSC Holdings LLC | | | | | | | | |
| 6.75%, 11/15/2021 — 144A | | | 1,700 | | | | 1,700 | |
| DISH DBS Corp. | | | | | | | | |
| 7.13%, 02/01/2016 ^ | | | 1,000 | | | | 1,063 | |
| 7.75%, 05/31/2015 ^ | | | 7,430 | | | | 7,986 | |
| 7.88%, 09/01/2019 ^ | | | 1,700 | | | | 1,866 | |
| Univision Communications, Inc. | | | | | | | | |
| 7.88%, 11/01/2020 — 144A | | | 3,675 | | | | 3,712 | |
| 8.50%, 05/15/2021 — 144A | | | 3,310 | | | | 2,979 | |
Metals & Mining — 1.0% | | | | | | | | |
| FMG Resources August 2006 Pty, Ltd. | | | | | | | | |
| 8.25%, 11/01/2019 — 144A | | | 2,050 | | | | 2,071 | |
| Thompson Creek Metals Co., Inc. | | | | | | | | |
| 7.38%, 06/01/2018 — 144A | | | 585 | | | | 487 | |
| U.S. Steel Corp. | | | | | | | | |
| 6.65%, 06/01/2037 | | | 4,125 | | | | 3,093 | |
| 7.00%, 02/01/2018 ^ | | | 2,535 | | | | 2,402 | |
Multiline Retail — 1.7% | | | | | | | | |
| Bon-Ton Department Stores, Inc. | | | | | | | | |
| 10.25%, 03/15/2014 ^ | | | 6,775 | | | | 6,013 | |
| JC Penney Corp., Inc. | | | | | | | | |
| 7.13%, 11/15/2023 | | | 3,375 | | | | 3,375 | |
| 7.40%, 04/01/2037 ^ | | | 3,750 | | | | 3,497 | |
Multi-Utilities — 0.5% | | | | | | | | |
| Puget Energy, Inc. | | | | | | | | |
| 6.00%, 09/01/2021 | | | 3,450 | | | | 3,566 | |
Oil, Gas & Consumable Fuels — 8.3% | | | | | | | | |
| Arch Coal, Inc. | | | | | | | | |
| 7.00%, 06/15/2019 — 144A | | | 670 | | | | 693 | |
| 7.25%, 06/15/2021 — 144A ^ | | | 1,115 | | | | 1,148 | |
| 8.75%, 08/01/2016 | | | 1,400 | | | | 1,530 | |
| Chesapeake Energy Corp. | | | | | | | | |
| 6.63%, 08/15/2020 ^ | | | 2,550 | | | | 2,764 | |
| 7.63%, 07/15/2013 | | | 100 | | | | 107 | |
| 9.50%, 02/15/2015 | | | 2,400 | | | | 2,748 | |
| Chesapeake Oilfield Operating LLC | | | | | | | | |
| 6.63%, 11/15/2019 — 144A | | | 1,135 | | | | 1,166 | |
| Connacher Oil and Gas, Ltd. | | | | | | | | |
| 8.50%, 08/01/2019 — 144A ^ | | | 4,000 | | | | 2,920 | |
| Consol Energy, Inc. | | | | | | | | |
| 6.38%, 03/01/2021 — 144A | | | 540 | | | | 537 | |
| 8.00%, 04/01/2017 | | | 750 | | | | 821 | |
| 8.25%, 04/01/2020 | | | 2,000 | | | | 2,190 | |
| Continental Resources, Inc. | | | | | | | | |
| 7.13%, 04/01/2021 | | | 1,600 | | | | 1,728 | |
| 8.25%, 10/01/2019 | | | 1,840 | | | | 2,033 | |
| El Paso Corp. | | | | | | | | |
| 7.25%, 06/01/2018 | | | 5,475 | | | | 6,132 | |
| Energy Transfer Equity, LP | | | | | | | | |
| 7.50%, 10/15/2020 | | | 6,000 | | | | 6,480 | |
| GMX Resources, Inc. | | | | | | | | |
| 11.38%, 02/15/2019 — 144A | | | 2,450 | | | | 1,764 | |
| Kinder Morgan Finance Co., ULC | | | | | | | | |
| 5.70%, 01/05/2016 | | | 3,560 | | | | 3,640 | |
| Linn Energy LLC | | | | | | | | |
| 6.50%, 05/15/2019 — 144A ^ | | | 1,500 | | | | 1,508 | |
| 7.75%, 02/01/2021 | | | 2,740 | | | | 2,925 | |
| 8.63%, 04/15/2020 | | | 2,340 | | | | 2,580 | |
| Newfield Exploration Co. | | | | | | | | |
| 6.63%, 04/15/2016 ^ | | | 2,110 | | | | 2,171 | |
| 6.88%, 02/01/2020 ^ | | | 1,175 | | | | 1,260 | |
| 7.13%, 05/15/2018 ^ | | | 295 | | | | 314 | |
| Pioneer Natural Resources Co. | | | | | | | | |
| 6.65%, 03/15/2017 ^ | | | 5,400 | | | | 5,865 | |
| Plains Exploration & Production Co. | | | | | | | | |
| 7.00%, 03/15/2017 ^ | | | 1,960 | | | | 2,034 | |
| Stallion Oilfield Holdings, Ltd. | | | | | | | | |
| 10.50%, 02/15/2015 ^ | | | 6,603 | | | | 7,066 | |
Paper & Forest Products — 0.8% | | | | | | | | |
| Ainsworth Lumber Co., Ltd. | | | | | | | | |
| 11.00%, 07/29/2015 — 144A Ώ | | | 1,040 | | | | 697 | |
| Smurfit Kappa Funding PLC | | | | | | | | |
| 7.75%, 04/01/2015 | | | 1,000 | | | | 1,000 | |
| Westvaco Corp. | | | | | | | | |
| 8.20%, 01/15/2030 | | | 3,800 | | | | 4,189 | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 36 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
Pharmaceuticals — 1.0% | | | | | | | | |
| Mylan, Inc. | | | | | | | | |
| 7.63%, 07/15/2017 — 144A | | $ | 1,000 | | | $ | 1,105 | |
| 7.88%, 07/15/2020 — 144A | | | 1,475 | | | | 1,652 | |
| Valeant Pharmaceuticals International, Inc. | | | | | | | | |
| 6.75%, 10/01/2017 — 08/15/2021 — 144A | | | 2,200 | | | | 2,144 | |
| 6.88%, 12/01/2018 — 144A | | | 1,800 | | | | 1,793 | |
| 7.00%, 10/01/2020 — 144A | | | 900 | | | | 891 | |
Real Estate Investment Trusts — 1.7% | | | | | | | | |
| Host Hotels & Resorts, LP | | | | | | | | |
| 5.88%, 06/15/2019 — 144A | | | 4,900 | | | | 4,961 | |
| 9.00%, 05/15/2017 ^ | | | 450 | | | | 503 | |
| Host Hotels & Resorts, LP — Series Q | | | | | | | | |
| 6.75%, 06/01/2016 ^ | | | 1,150 | | | | 1,190 | |
| Weyerhaeuser Co. | | | | | | | | |
| 7.38%, 03/15/2032 | | | 6,500 | | | | 6,495 | |
Road & Rail — 0.7% | | | | | | | | |
| Avis Budget Car Rental LLC | | | | | | | | |
| 8.25%, 01/15/2019 | | | 1,035 | | | | 1,032 | |
| Hertz Corp. | | | | | | | | |
| 6.75%, 04/15/2019 ^ | | | 2,000 | | | | 2,040 | |
| 7.50%, 10/15/2018 | | | 2,500 | | | | 2,607 | |
Semiconductors & Semiconductor Equipment — 1.4% | | | | | | | | |
| Freescale Semiconductor, Inc. | | | | | | | | |
| 9.25%, 04/15/2018 — 144A | | | 3,000 | | | | 3,248 | |
| NXP BV | | | | | | | | |
| 9.75%, 08/01/2018 — 144A | | | 6,425 | | | | 7,067 | |
| Sensata Technologies BV | | | | | | | | |
| 6.50%, 05/15/2019 — 144A | | | 850 | | | | 850 | |
Software — 1.1% | | | | | | | | |
| First Data Corp. | | | | | | | | |
| 12.63%, 01/15/2021 — 144A ^ | | | 9,051 | | | | 8,553 | |
Specialty Retail — 0.8% | | | | | | | | |
| Academy, Ltd. | | | | | | | | |
| 9.25%, 08/01/2019 — 144A ^ | | | 1,040 | | | | 1,045 | |
| Brookstone Co., Inc. | | | | | | | | |
| 13.00%, 10/15/2014 — 144A | | | 935 | | | | 650 | |
| Claire’s Stores, Inc. | | | | | | | | |
| 8.88%, 03/15/2019 ^ | | | 4,390 | | | | 3,534 | |
| 9.63%, 06/01/2015 Ώ | | | 853 | | | | 682 | |
Textiles, Apparel & Luxury Goods — 1.1% | | | | | | | | |
| Jones Group, Inc. | | | | | | | | |
| 6.13%, 11/15/2034 | | | 6,720 | | | | 4,637 | |
| Levi Strauss & Co. | | | | | | | | |
| 8.88%, 04/01/2016 ^ | | | 2,700 | | | | 2,828 | |
| PVH Corp. | | | | | | | | |
| 7.38%, 05/15/2020 | | | 1,000 | | | | 1,085 | |
Wireless Telecommunication Services — 2.1% | | | | | | | | |
| Cricket Communications, Inc. | | | | | | | | |
| 7.75%, 05/15/2016 ^ | | | 2,190 | | | | 2,272 | |
| 7.75%, 10/15/2020 — 144A | | | 3,700 | | | | 3,126 | |
| Nextel Communications, Inc. — Series D | | | | | | | | |
| 7.38%, 08/01/2015 | | | 1,645 | | | | 1,571 | |
| Sprint Nextel Corp. | | | | | | | | |
| 8.38%, 08/15/2017 ^ | | | 7,170 | | | | 6,596 | |
| 9.25%, 04/15/2022 | | | 2,750 | | | | 2,771 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $681,006) | | | | | | | 675,225 | |
| | | | | | | | |
PREFERRED STOCKS — 1.4% | | | | | | | | |
Consumer Finance — 0.9% | | | | | | | | |
| Ally Financial, Inc., 7.00% — 144A | | | 3,053 | | | $ | 2,277 | |
| Ally Financial, Inc., 8.50% * | | | 246,000 | | | | 4,772 | |
Diversified Financial Services — 0.5% | | | | | | | | |
| GMAC Capital Trust I, 8.13% * | | | 199,000 | | | | 4,171 | |
| | | | | | | | |
Total Preferred Stocks (cost $11,967) | | | | | | | 11,220 | |
| | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 0.6% | | | | | | | | |
Automobiles — 0.0% ∞ | | | | | | | | |
| General Motors Co. ‡ | | | 11,558 | | | | 299 | |
Commercial Banks — 0.4% | | | | | | | | |
| CIT Group, Inc. ‡ ^ | | | 68,248 | | | | 2,378 | |
IT Services — 0.2% | | | | | | | | |
| Unisys Corp. ‡ ^ | | | 61,972 | | | | 1,611 | |
| | | | | | | | |
Total Common Stocks (cost $3,482) | | | | | | | 4,288 | |
| | | | | | | | |
| | | | | | | | | |
WARRANTS — 0.0% ∞ | | | | | | | | |
Automobiles — 0.0% ∞ | | | | | | | | |
| General Motors Co. ‡ | | | | | | | | |
| Expiration: 07/10/2016 | | | | | | | | |
| Exercise Price: $10.00 | | | 203 | | | | 4 | |
| General Motors Co. ‡ | | | | | | | | |
| Expiration: 07/10/2019 | | | | | | | | |
| Exercise Price: $18.33 | | | 203 | | | | 2 | |
| | | | | | | | |
Total Warrants (cost $♦) | | | | | | | 6 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 20.1% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 156,717,241 | | | | 156,717 | |
Total Securities Lending Collateral (cost $156,717) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT — 9.1% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $70,695 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 05/01/2025, with a value of $72,113. | | $ | 70,695 | | | | 70,695 | |
Total Repurchase Agreement (cost $70,695) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $941,592) П | | | | | | | 937,806 | |
| Other Assets and Liabilities — Net | | | | | | | (160,044 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 777,762 | |
| | | | | | | | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 37 | | Annual Report 2011 |
Transamerica AEGON High Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| Ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $153,365. |
| |
| Ә | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of less than $1, or less than 0.01%, of the fund’s net assets. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| Ώ | | Payment in-kind. Securities pay interest or dividends in the form of additional bonds or preferred stock. |
| |
| Џ | | In default. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $941,649. Aggregate gross unrealized appreciation/(depreciation for all securities in which there is an excess of value over tax cost were $25,532 and $29,375, respectively. Net unrealized depreciation for tax purposes is $3,843. |
DEFINITION (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated to $185,939, or 23.91%, of the fund’s net assets. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 4,288 | | | $ | — | | | $ | — | | | $ | 4,288 | |
| Corporate Debt Securities | | | — | | | | 675,225 | | | | ♦ | | | | 675,225 | |
| Preferred Corporate Debt Securities | | | — | | | | 19,655 | | | | — | | | | 19,655 | |
| Preferred Stocks | | | 11,220 | | | | — | | | | — | | | | 11,220 | |
| Repurchase Agreement | | | — | | | | 70,695 | | | | — | | | | 70,695 | |
| Securities Lending Collateral | | | 156,717 | | | | — | | | | — | | | | 156,717 | |
| Warrants | | | 6 | | | | — | | | | — | | | | 6 | |
Total | | $ | 172,231 | | | $ | 765,575 | | | $ | ♦ | | | $ | 937,806 | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change
in Unrealized | |
| | | | | | | | | | | | | | | Accrued | | | | | | | Net Change in
Unrealized | | | | | | | | | | | | | | | Appreciation/
(Depreciation) on | |
| | | Beginning Balance | | | | | | | | | | | Discounts/ | | | Total Realized | | | Appreciation | | | Transfers | | | Transfers | | | Ending Balance at | | | Investments Held | |
| Securities | | at 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | /(Depreciation) ƒ | | | into Level 3 | | | out of Level 3 | | | 10/31/2011 | | | at 10/31/2011 ƒ | |
| Corporate Debt Securities | | $ | — | | | $ | ♦ | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | ♦ | | | $ | — | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| |
| ♦ | | Amount rounds to less than 1. |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 38 | | Annual Report 2011 |
Transamerica AEGON Money Market
(formerly, Transamerica Money Market)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
COMMERCIAL PAPER — 49.1% | | | | | | | | |
Capital Markets — 4.8% | | | | | | | | |
| State Street Corp. | | | | | | | | |
| 0.37%, 11/16/2011 | | $ | 5,000 | | | $ | 4,999 | |
| 0.50%, 12/12/2011 | | | 5,000 | | | | 4,999 | |
Commercial Banks — 30.0% | | | | | | | | |
| Bank of Nova Scotia | | | | | | | | |
| 0.53%, 11/22/2011 | | | 6,700 | | | | 6,699 | |
| Barclays U.S. Funding Corp. | | | | | | | | |
| 0.12%, 11/01/2011 | | | 9,000 | | | | 9,000 | |
| Commonwealth Bank of Australia | | | | | | | | |
| 0.54%, 12/06/2011 — 144A | | | 5,000 | | | | 4,999 | |
| 0.62%, 01/20/2012 — 144A | | | 2,000 | | | | 1,999 | |
| Credit Suisse | | | | | | | | |
| 0.47%, 11/16/2011 | | | 5,000 | | | | 5,000 | |
| Deutsche Bank Financial LLC | | | | | | | | |
| 0.16%, 11/01/2011 | | | 4,500 | | | | 4,500 | |
| 0.63%, 11/18/2011 | | | 4,800 | | | | 4,799 | |
| Lloyds TSB Bank PLC | | | | | | | | |
| 0.33%, 11/07/2011 | | | 2,700 | | | | 2,700 | |
| National Australia Funding Delaware, Inc. | | | | | | | | |
| 0.26%, 11/01/2011 — 144A | | | 3,000 | | | | 3,000 | |
| 0.62%, 01/09/2012 — 144A | | | 4,100 | | | | 4,098 | |
| Skandinaviska Enskilda Banken AB | | | | | | | | |
| 0.45%, 11/02/2011 — 144A | | | 8,000 | | | | 8,000 | |
| Svenska Handelsbanken, Inc. | | | | | | | | |
| 0.37%, 01/18/2012 — 144A | | | 4,600 | | | | 4,596 | |
| Swedbank AB | | | | | | | | |
| 0.60%, 12/15/2011 | | | 3,300 | | | | 3,299 | |
Consumer Finance — 4.5% | | | | | | | | |
| Toyota Motor Credit Corp. | | | | | | | | |
| 0.36%, 01/04/2012 | | | 2,500 | | | | 2,499 | |
| 0.52%, 12/13/2011 | | | 2,000 | | | | 1,999 | |
| 0.71%, 01/19/2012 | | | 5,000 | | | | 4,997 | |
Diversified Financial Services — 8.4% | | | | | | | | |
| Nordea North America, Inc. | | | | | | | | |
| 0.46%, 12/09/2011 | | | 2,400 | | | | 2,399 | |
| 0.59%, 11/29/2011 | | | 4,000 | | | | 3,999 | |
| 0.64%, 01/06/2012 | | | 3,000 | | | | 2,998 | |
| Rabobank USA Financial Corp. | | | | | | | | |
| 0.35%, 01/11/2012 | | | 2,800 | | | | 2,798 | |
| 0.64%, 12/19/2011 | | | 5,400 | | | | 5,398 | |
Metals & Mining — 1.4% | | | | | | | | |
| BHP Billiton Finance USA, Ltd. | | | | | | | | |
| 0.32%, 01/09/2012 — 144A | | | 3,000 | | | | 2,999 | |
| | | | | | | | |
Total Commercial Paper (cost $102,773) | | | | | | | 102,773 | |
| | | | | | | | |
| | | | | | | | | |
ASSET-BACKED COMMERCIAL PAPER — 29.9% | | | | | | | | |
Diversified Financial Services — 29.9% | | | | | | | | |
| Alpine Securitization Corp. | | | | | | | | |
| 0.36%, 11/10/2011 — 144A | | | 6,000 | | | | 6,000 | |
| 0.37%, 11/14/2011 — 144A | | | 3,000 | | | | 3,000 | |
| CAFCO LLC | | | | | | | | |
| 0.26%, 11/02/2011 — 11/23/2011 — 144A | | | 10,000 | | | | 10,000 | |
| Cancara Asset Securitisation LLC | | | | | | | | |
| 0.53%, 11/17/2011 — 144A | | | 9,200 | | | | 9,198 | |
| Jupiter Securitization Co. LLC | | | | | | | | |
| 0.27%, 11/09/2011 — 144A | | | 4,000 | | | | 4,000 | |
| Mont Blanc Capital Corp. | | | | | | | | |
| 0.49%, 11/21/2011 — 144A | | | 1,748 | | | | 1,748 | |
| Sheffield Receivables Corp. | | | | | | | | |
| 0.47%, 11/22/2011 — 144A | | | 4,500 | | | | 4,499 | |
| Solitaire Funding LLC | | | | | | | | |
| 0.68%, 01/03/2012 — 144A | | | 5,000 | | | | 4,997 | |
| Straight-A Funding LLC | | | | | | | | |
| 0.30%, 12/05/2011 — 12/23/2011 — 144A | | | 10,110 | | | | 10,108 | |
| 0.31%, 11/08/2011 — 144A | | | 5,800 | | | | 5,800 | |
| Victory Receivables Corp. | | | | | | | | |
| 0.73%, 01/06/2012 — 144A | | | 3,000 | | | | 2,998 | |
| | | | | | | | |
Total Asset-Backed Commercial Paper (cost $62,348) | | | | | | | 62,348 | |
| | | | | | | | |
| | | | | | | | | |
CERTIFICATES OF DEPOSIT — 7.9% | | | | | | | | |
Commercial Banks — 7.9% | | | | | | | | |
| Bank of Nova Scotia | | | | | | | | |
| 0.28%, 12/30/2011 | | | 3,000 | | | | 3,000 | |
| Bank of Tokyo-Mitsubishi UFJ, Ltd. | | | | | | | | |
| 0.38%, 02/01/2012 | | | 4,000 | | | | 4,000 | |
| Svenska Handelsbanken AB | | | | | | | | |
| 0.31%, 12/01/2011 | | | 2,000 | | | | 2,000 | |
| Toronto-Dominion Bank | | | | | | | | |
| 0.23%, 12/28/2011 | | | 7,500 | | | | 7,500 | |
| | | | | | | | |
Total Certificates of Deposit (cost $16,500) | | | | | | | 16,500 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 4.9% | | | | | | | | |
Diversified Financial Services — 4.9% | | | | | | | | |
| Bear Stearns Cos., LLC | | | | | | | | |
| 5.35%, 02/01/2012 | | | 5,600 | | | | 5,669 | |
| General Electric Capital Corp. | | | | | | | | |
| 5.88%, 02/15/2012 | | | 4,000 | | | | 4,062 | |
| JPMorgan Chase & Co. | | | | | | | | |
| 4.50%, 01/15/2012 | | | 500 | | | | 504 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $10,235) | | | | | | | 10,235 | |
| | | | | | | | |
| | | | | | | | | |
REPURCHASE AGREEMENTS — 8.3% | | | | | | | | |
| Goldman Sachs | | | | | | | | |
| 0.11% ▲, dated 10/31/2011, to be repurchased at $17,100 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 4.00% — 5.45%, due 09/01/2015 — 01/01/2041, with a total value of $17,442. | | | 17,100 | | | | 17,100 | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $180 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 05/25/2041, with a value of $189. | | | 180 | | | | 180 | |
| | | | | | | | |
Total Repurchase Agreements (cost $17,280) | | | | | | | 17,280 | |
| |
| | | | | | | | |
| Total Investment Securities (cost $209,136) П | | | | | | | 209,136 | |
| Other Assets and Liabilities — Net | | | | | | | (296 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 208,840 | |
| | | | | | | | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 39 | | Annual Report 2011 |
Transamerica AEGON Money Market
(formerly, Transamerica Money Market)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $209,136. |
DEFINITION (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated to $92,039, or 44.07%, of the fund’s net assets. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Asset-Backed Commercial Paper | | $ | — | | | $ | 62,348 | | | $ | — | | | $ | 62,348 | |
| Certificates of Deposit | | | — | | | | 16,500 | | | | — | | | | 16,500 | |
| Commercial Paper | | | — | | | | 102,773 | | | | — | | | | 102,773 | |
| Corporate Debt Securities | | | — | | | | 10,235 | | | | — | | | | 10,235 | |
| Repurchase Agreements | | | — | | | | 17,280 | | | | — | | | | 17,280 | |
Total | | $ | — | | | $ | 209,136 | | | $ | — | | | $ | 209,136 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 40 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
U.S. GOVERNMENT AGENCY OBLIGATIONS — 0.1% | | | | | | | | |
| Fannie Mae | | | | | | | | |
| 5.00%, 06/25/2034 | | $ | 840 | | | $ | 840 | |
| Freddie Mac | | | | | | | | |
| 2.52%, 08/01/2037 * | | | 917 | | | | 968 | |
| | | | | | | | |
Total U.S. Government Agency Obligations (cost $1,763) | | | | | | | 1,808 | |
| | | | | | | | |
| | | | | | | | | |
MORTGAGE-BACKED SECURITIES — 23.5% | | | | | | | | |
| American General Mortgage Loan Trust | | | | | | | | |
| Series 2009-1, Class A5 | | | | | | | | |
| 5.75%, 09/25/2048 — 144A * | | | 13,311 | | | | 13,429 | |
| Series 2009-1, Class A6 | | | | | | | | |
| 5.75%, 09/25/2048 — 144A * | | | 20,611 | | | | 20,804 | |
| American Tower Trust | | | | | | | | |
| Series 2007-1A, Class AFX | | | | | | | | |
| 5.42%, 04/15/2037 — 144A | | | 22,047 | | | | 23,515 | |
| Series 2007-1A, Class B | | | | | | | | |
| 5.54%, 04/15/2037 — 144A | | | 4,750 | | | | 5,108 | |
| Series 2007-1A, Class C | | | | | | | | |
| 5.62%, 04/15/2037 — 144A | | | 14,550 | | | | 15,427 | |
| Series 2007-1A, Class D | | | | | | | | |
| 5.96%, 04/15/2037 — 144A | | | 8,545 | | | | 9,119 | |
| Banc of America Funding Corp. | | | | | | | | |
| Series 2010-R4, Class 1A1 | | | | | | | | |
| 5.50%, 07/26/2036 — 144A | | | 7,089 | | | | 7,256 | |
| Series 2010-R6, Class 4A1 | | | | | | | | |
| 2.80%, 07/26/2035 — 144A * | | | 5,480 | | | | 5,329 | |
| Series 2011-R1, Class A1 | | | | | | | | |
| 4.00%, 08/26/2036 — 144A * | | | 2,971 | | | | 2,952 | |
| BCAP LLC Trust | | | | | | | | |
| Series 2006-RR1, Class PD | | | | | | | | |
| 5.00%, 11/25/2036 | | | 8,540 | | | | 8,763 | |
| Series 2009-RR3, Class 1A2 | | | | | | | | |
| 6.00%, 11/26/2036 — 144A * | | | 2,356 | | | | 2,420 | |
| Series 2009-RR3, Class 2A1 | | | | | | | | |
| 5.41%, 05/26/2037 — 144A * | | | 6,455 | | | | 6,407 | |
| Series 2009-RR6, Class 2A1 | | | | | | | | |
| 5.20%, 08/26/2035 — 144A * | | | 9,622 | | | | 8,748 | |
| Series 2009-RR10, Class 2A1 | | | | | | | | |
| 2.81%, 08/26/2035 — 144A * | | | 3,856 | | | | 3,693 | |
| Series 2009-RR13, Class 2A3 | | | | | | | | |
| 5.53%, 02/26/2036 — 144A * | | | 5,614 | | | | 5,726 | |
| Series 2009-RR13, Class 3A3 | | | | | | | | |
| 5.59%, 05/26/2036 — 144A * | | | 14,369 | | | | 14,718 | |
| Series 2009-RR13, Class 7A1 | | | | | | | | |
| 5.25%, 10/26/2036 — 144A * | | | 830 | | | | 824 | |
| Series 2009-RR13, Class 13A3 | | | | | | | | |
| 5.25%, 03/26/2037 — 144A * | | | 7,767 | | | | 7,796 | |
| Series 2009-RR13, Class 14A1 | | | | | | | | |
| 5.25%, 03/26/2037 — 144A * | | | 3,010 | | | | 2,994 | |
| Series 2009-RR14, Class 1A1 | | | | | | | | |
| 6.00%, 05/26/2037 — 144A * | | | 15,037 | | | | 15,431 | |
| Series 2010-RR1, Class 12A1 | | | | | | | | |
| 5.25%, 08/26/2036 — 144A * | | | 8,926 | | | | 9,228 | |
| Series 2010-RR6, Class 1A5 | | | | | | | | |
| 5.00%, 08/26/2022 — 144A * | | | 12,072 | | | | 12,289 | |
| Series 2010-RR6, Class 15A5 | | | | | | | | |
| 5.50%, 12/26/2036 — 144A * | | | 5,434 | | | | 5,517 | |
| Series 2010-RR6, Class 16A5 | | | | | | | | |
| 5.50%, 04/26/2036 — 144A * | | | 3,231 | | | | 3,332 | |
| Series 2010-RR6, Class 20A1 | | | | | | | | |
| 4.50%, 11/26/2035 — 144A * | | | 3,266 | | | | 3,220 | |
| Series 2011-RR1, Class 5A1 | | | | | | | | |
| 3.00%, 09/28/2036 — 144A * | | | 6,911 | | | | 6,855 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
| Series 2007-PW17, Class AAB | | | | | | | | |
| 5.70%, 06/11/2050 | | | 9,340 | | | | 9,993 | |
| Capmark Military Housing Trust | | | | | | | | |
| Series 2008-AMCW, Class A2 | | | | | | | | |
| 5.91%, 03/10/2015 — 144A | | | 4,900 | | | | 5,397 | |
| Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
| Series 2010-8, Class 5A6 | | | | | | | | |
| 4.00%, 11/25/2036 — 144A | | | 23,197 | | | | 23,791 | |
| Series 2010-8, Class 6A6 | | | | | | | | |
| 4.50%, 12/25/2036 — 144A | | | 13,037 | | | | 13,527 | |
| Series 2010-8, Class 6A62 | | | | | | | | |
| 3.50%, 12/25/2036 — 144A | | | 10,754 | | | | 10,945 | |
| Countrywide Home Loan Mortgage Pass-Through Trust | | | | | | | | |
| Series 2002-35, Class 1A3 | | | | | | | | |
| 5.00%, 02/25/2018 | | | 10,180 | | | | 10,334 | |
| Credit Suisse Mortgage Capital Certificates | | | | | | | | |
| Series 2007-C1, Class AAB | | | | | | | | |
| 5.34%, 02/15/2040 | | | 13,849 | | | | 14,445 | |
| Series 2007-C4, Class AAB | | | | | | | | |
| 5.80%, 09/15/2039 * | | | 11,850 | | | | 12,793 | |
| Series 2009-12R, Class 36A1 | | | | | | | | |
| 5.30%, 06/27/2036 — 144A * | | | 7,877 | | | | 7,860 | |
| Series 2009-16R, Class 11A1 | | | | | | | | |
| 7.00%, 08/26/2036 — 144A | | | 5,379 | | | | 5,495 | |
| Series 2010-1R, Class 28A1 | | | | | | | | |
| 5.00%, 02/27/2047 — 144A | | | 19,308 | | | | 19,292 | |
| Series 2010-1R, Class 40A1 | | | | | | | | |
| 5.00%, 04/27/2036 — 144A | | | 3,316 | | | | 3,376 | |
| Series 2010-12R, Class 10A1 | | | | | | | | |
| 4.50%, 11/26/2036 — 144A * | | | 7,668 | | | | 7,735 | |
| Series 2010-15R, Class 2A1 | | | | | | | | |
| 3.50%, 05/26/2036 — 144A * | | | 11,175 | | | | 11,048 | |
| Series 2010-15R, Class 4A1 | | | | | | | | |
| 3.50%, 04/26/2035 — 144A * | | | 15,843 | | | | 15,584 | |
| Series 2010-15R, Class 6A1 | | | | | | | | |
| 3.50%, 10/26/2046 — 144A * | | | 9,296 | | | | 9,323 | |
| Series 2010-18R, Class 1A11 | | | | | | | | |
| 3.75%, 08/26/2035 — 144A * | | | 11,793 | | | | 11,584 | |
| Series 2010-18R, Class 3A1 | | | | | | | | |
| 4.00%, 03/26/2037 — 144A | | | 13,215 | | | | 13,403 | |
| GMAC Mortgage Corp., Loan Trust | | | | | | | | |
| Series 2010-1, Class A | | | | | | | | |
| 4.25%, 07/25/2040 — 144A | | | 450 | | | | 449 | |
| GS Mortgage Securities Corp. II | | | | | | | | |
| Series 2007-EOP, Class B | | | | | | | | |
| 1.84%, 03/06/2020 — 144A * | | | 10,600 | | | | 10,118 | |
| Series 2007-EOP, Class E | | | | | | | | |
| 2.67%, 03/06/2020 — 144A * | | | 20,000 | | | | 19,144 | |
| Jefferies & Co., Inc. | | | | | | | | |
| Series 2009-R2, Class 2A | | | | | | | | |
| 6.02%, 12/26/2037 — 144A * | | | 4,593 | | | | 4,612 | |
| Series 2009-R2, Class 3A | | | | | | | | |
| 5.50%, 01/26/2047 — 144A * | | | 3,148 | | | | 3,106 | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 41 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Jefferies & Co., Inc. (continued) | | | | | | | | |
| Series 2009-R7, Class 1A1 | | | | | | | | |
| 5.23%, 02/26/2036 — 144A * | | $ | 2,171 | | | $ | 2,091 | |
| Series 2009-R7, Class 4A1 | | | | | | | | |
| 2.74%, 09/26/2034 — 144A * | | | 3,289 | | | | 3,048 | |
| Series 2009-R7, Class 10A3 | | | | | | | | |
| 6.00%, 12/26/2036 — 144A | | | 2,037 | | | | 2,024 | |
| Series 2009-R7, Class 11A1 | | | | | | | | |
| 2.62%, 03/26/2037 — 144A * | | | 4,099 | | | | 3,882 | |
| Series 2009-R7, Class 12A1 | | | | | | | | |
| 5.17%, 08/26/2036 — 144A * | | | 2,392 | | | | 2,359 | |
| Series 2009-R9, Class 1A1 | | | | | | | | |
| 2.57%, 08/26/2046 — 144A * | | | 11,286 | | | | 11,031 | |
| Series 2010-R2, Class 1A1 | | | | | | | | |
| 6.00%, 05/26/2036 — 144A | | | 10,920 | | | | 11,173 | |
| Series 2010-R3, Class 1A1 | | | | | | | | |
| 2.84%, 03/21/2036 — 144A * | | | 8,613 | | | | 8,537 | |
| Series 2010-R6, Class 1A1 | | | | | | | | |
| 4.00%, 09/26/2037 — 144A | | | 8,931 | | | | 8,968 | |
| Series 2010-R8, Class 2A1 | | | | | | | | |
| 5.00%, 10/26/2036 — 144A | | | 5,904 | | | | 6,091 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
| Series 2007-CB19, Class ASB | | | | | | | | |
| 5.72%, 02/12/2049 * | | | 7,815 | | | | 8,303 | |
| Series 2007-LD11, Class ASB | | | | | | | | |
| 5.82%, 06/15/2049 * | | | 17,839 | | | | 18,973 | |
| JPMorgan Re-REMIC | | | | | | | | |
| Series 2009-5, Class 6A1 | | | | | | | | |
| 5.85%, 04/26/2037 — 144A * | | | 878 | | | | 869 | |
| Series 2009-7, Class 8A1 | | | | | | | | |
| 5.48%, 01/27/2047 — 144A * | | | 4,047 | | | | 4,058 | |
| Series 2009-11, Class 1A1 | | | | | | | | |
| 5.50%, 02/26/2037 — 144A * | | | 8,860 | | | | 8,486 | |
| Series 2010-4, Class 7A1 | | | | | | | | |
| 4.28%, 08/26/2035 — 144A * | | | 12,648 | | | | 12,417 | |
| Series 2010-5, Class 2A2 | | | | | | | | |
| 4.50%, 07/26/2035 — 144A * | | | 12,282 | | | | 12,532 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
| Series 2004-C8, Class B | | | | | | | | |
| 4.91%, 12/15/2039 * | | | 12,585 | | | | 12,406 | |
| LSTAR Commercial Mortgage Trust | | | | | | | | |
| Series 2011-1, Class A | | | | | | | | |
| 3.91%, 06/25/2043 — 144A | | | 13,007 | | | | 13,121 | |
| Mortgage Equity Conversion Asset Trust | | | | | | | | |
| Series 2010-1A, Class A | | | | | | | | |
| 4.00%, 07/25/2060 — 144A | | | 14,985 | | | | 14,983 | |
| RBSSP Resecuritization Trust | | | | | | | | |
| Series 2009-1, Class 10A1 | | | | | | | | |
| 6.50%, 07/26/2037 — 144A | | | 12,020 | | | | 12,508 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
| Series 2003-G, Class A1 | | | | | | | | |
| 4.10%, 06/25/2033 * | | | 1,855 | | | | 1,859 | |
| Wells Fargo Mortgage Loan Trust | | | | | | | | |
| Series 2010-RR1, Class 2A1 | | | | | | | | |
| 0.34%, 08/27/2047 — 144A * | | | 595 | | | | 589 | |
| Series 2010-RR2, Class 1A1 | | | | | | | | |
| 5.12%, 09/27/2035 — 144A * | | | 9,636 | | | | 9,511 | |
| Series 2010-RR4, Class 1A1 | | | | | | | | |
| 5.31%, 12/27/2046 — 144A * | | | 10,148 | | | | 10,259 | |
| | | | | | | | |
Total Mortgage-Backed Securities (cost $662,494) | | | | | | | 664,332 | |
| | | | | | | | |
| | | | | | | | | |
ASSET-BACKED SECURITIES — 9.2% | | | | | | | | |
| AH Mortgage Advance Trust | | | | | | | | |
| Series SART-1, Class A2 | | | | | | | | |
| 3.37%, 05/10/2043 — 144A | | | 28,890 | | | | 28,774 | |
| Series SART-2, Class A1 | | | | | | | | |
| 3.27%, 09/15/2043 — 144A | | | 20,000 | | | | 19,995 | |
| America West Airlines Pass-Through Trust | | | | | | | | |
| Series 1999-1, Class 991G | | | | | | | | |
| 7.93%, 01/02/2019 | | | 3,603 | | | | 3,513 | |
| Series 2000-1, Class G | | | | | | | | |
| 8.06%, 07/02/2020 | | | 12,568 | | | | 12,568 | |
| Continental Airlines Pass-Through Trust | | | | | | | | |
| Series 1997-1, Class A | | | | | | | | |
| 7.46%, 04/01/2015 ^ | | | 18,637 | | | | 18,450 | |
| Delta Air Lines, Inc., Pass-Through Trust | | | | | | | | |
| Series 2010-1, Class 1A | | | | | | | | |
| 6.20%, 07/02/2018 ^ | | | 13,371 | | | | 14,039 | |
| Dominos Pizza Master Issuer LLC | | | | | | | | |
| Series 2007-1, Class A2 | | | | | | | | |
| 5.26%, 04/25/2037 — 144A | | | 28,145 | | | | 28,321 | |
| DT Auto Owner Trust | | | | | | | | |
| Series 2009-1, Class C | | | | | | | | |
| 10.75%, 10/15/2015 — 144A | | | 4,888 | | | | 5,098 | |
| Gazprom OAO Via GAZ Capital SA | | | | | | | | |
| 8.13%, 07/31/2014 — 144A | | | 25,395 | | | | 28,252 | |
| Newmont Gold Co., Pass-Through Trust | | | | | | | | |
| Series 1994, Class A2 | | | | | | | | |
| 9.25%, 07/05/2012 | | | 1,853 | | | | 1,907 | |
| Northwest Airlines Pass-Through Trust | | | | | | | | |
| Series 2002-1, Class G1 | | | | | | | | |
| 1.05%, 05/20/2014 * ^ | | | 906 | | | | 843 | |
| Sierra Receivables Funding Co. LLC | | | | | | | | |
| Series 2007-1A, Class A2 | | | | | | | | |
| 0.39%, 03/20/2019 — 144A * | | | 2,702 | | | | 2,584 | |
| Series 2011-2A, Class A | | | | | | | | |
| 3.26%, 05/20/2028 — 144A | | | 9,827 | | | | 9,817 | |
| TAL Advantage LLC | | | | | | | | |
| Series 2011-1A, Class A | | | | | | | | |
| 4.60%, 01/20/2026 — 144A | | | 19,360 | | | | 19,343 | |
| Tax Liens Securitization Trust | | | | | | | | |
| Series 2010-1A, Class 2A2 | | | | | | | | |
| 2.00%, 04/15/2018 — 144A | | | 12,628 | | | | 12,607 | |
| Trafigura Securitisation Finance PLC | | | | | | | | |
| Series 2007-1, Class A | | | | | | | | |
| 0.49%, 12/15/2012 * Ә | | | 22,800 | | | | 22,344 | |
| Series 2007-1, Class B | | | | | | | | |
| 1.59%, 12/15/2012 * | | | 3,900 | | | | 3,789 | |
| UAL Pass-Through Trust | | | | | | | | |
| Series 2009-1 | | | | | | | | |
| 10.40%, 11/01/2016 ^ | | | 25,319 | | | | 27,978 | |
| | | | | | | | |
Total Asset-Backed Securities (cost $259,384) | | | | | | | 260,222 | |
| | | | | | | | |
| | | | | | | | | |
MUNICIPAL GOVERNMENT OBLIGATIONS — 1.2% | | | | | | | | |
| Rhode Island Economic Development Corp. | | | | | | | | |
| 6.00%, 11/01/2015 § | | | 16,950 | | | | 17,408 | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 42 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
MUNICIPAL GOVERNMENT OBLIGATIONS (continued) | | | | | | | | |
| State of California | | | | | | | | |
| 5.25%, 04/01/2014 | | $ | 14,630 | | | $ | 15,876 | |
| | | | | | | | |
Total Municipal Government Obligations (cost $32,159) | | | | | | | 33,284 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 62.5% | | | | | | | | |
Airlines — 0.5% | | | | | | | | |
| Southwest Airlines Co. | | | | | | | | |
| 10.50%, 12/15/2011 — 144A | | | 12,730 | | | | 12,856 | |
Automobiles — 0.5% | | | | | | | | |
| Daimler Finance North America LLC | | | | | | | | |
| 1.88%, 09/15/2014 — 144A | | | 14,800 | | | | 14,652 | |
Beverages — 0.5% | | | | | | | | |
| Anheuser-Busch InBev Worldwide, Inc. | | | | | | | | |
| 9.75%, 11/17/2015 ^ | | BRL21,570 | | | 13,255 | |
Capital Markets — 2.4% | | | | | | | | |
| Goldman Sachs Group, Inc. | | | | | | | | |
| 5.15%, 01/15/2014 ^ | | | 10,000 | | | | 10,382 | |
| Macquarie Group, Ltd. | | | | | | | | |
| 7.30%, 08/01/2014 — 144A | | | 25,590 | | | | 27,543 | |
| Morgan Stanley | | | | | | | | |
| 0.88%, 10/15/2015 * ^ | | | 19,060 | | | | 16,744 | |
| 4.00%, 07/24/2015 ^ | | | 14,850 | | | | 14,409 | |
Chemicals — 1.0% | | | | | | | | |
| Dow Chemical Co. | | | | | | | | |
| 6.85%, 08/15/2013 | | | 5,400 | | | | 5,872 | |
| Methanex Corp. | | | | | | | | |
| 8.75%, 08/15/2012 | | | 20,716 | | | | 21,389 | |
Commercial Banks — 8.0% | | | | | | | | |
| Banco Santander Chile | | | | | | | | |
| 2.88%, 11/13/2012 — 144A | | | 26,595 | | | | 26,624 | |
| Bank of Scotland PLC | | | | | | | | |
| 5.00%, 11/21/2011 — 144A | | | 930 | | | | 932 | |
| BBVA US Senior SAU | | | | | | | | |
| 3.25%, 05/16/2014 ^ | | | 24,738 | | | | 24,110 | |
| CIT Group, Inc. | | | | | | | | |
| 5.25%, 04/01/2014 — 144A ^ | | | 13,500 | | | | 13,433 | |
| First Tennessee Bank NA | | | | | | | | |
| 4.63%, 05/15/2013 | | | 27,555 | | | | 27,815 | |
| ICICI Bank, Ltd. | | | | | | | | |
| 6.63%, 10/03/2012 — 144A | | | 24,850 | | | | 25,579 | |
| M&I Marshall & Ilsley Bank | | | | | | | | |
| 5.25%, 09/04/2012 ^ | | | 6,860 | | | | 7,107 | |
| Regions Financial Corp. | | | | | | | | |
| 0.53%, 06/26/2012 * ^ | | | 7,750 | | | | 7,617 | |
| 4.88%, 04/26/2013 ^ | | | 6,456 | | | | 6,295 | |
| 7.75%, 11/10/2014 ^ | | | 13,000 | | | | 13,423 | |
| Royal Bank of Scotland PLC | | | | | | | | |
| 2.72%, 08/23/2013 * | | | 26,415 | | | | 26,054 | |
| 3.25%, 01/11/2014 ^ | | | 5,000 | | | | 4,967 | |
| Wachovia Corp. | | | | | | | | |
| 0.77%, 10/28/2015 * | | | 22,400 | | | | 20,444 | |
| Webster Bank NA | | | | | | | | |
| 5.88%, 01/15/2013 | | | 7,338 | | | | 7,483 | |
| Zions Bancorporation | | | | | | | | |
| 7.75%, 09/23/2014 ^ | | | 12,900 | | | | 13,725 | |
Commercial Services & Supplies — 0.5% | | | | | | | | |
| Exelis, Inc. | | | | | | | | |
| 4.25%, 10/01/2016 — 144A | | | 15,000 | | | | 15,026 | |
Computers & Peripherals — 1.1% | | | | | | | | |
| Hewlett-Packard Co. | | | | | | | | |
| 2.35%, 03/15/2015 ^ | | | 14,635 | | | | 14,916 | |
Computers & Peripherals (continued) | | | | | | | | |
| Seagate Technology International | | | | | | | | |
| 10.00%, 05/01/2014 — 144A ^ | | | 13,289 | | | | 15,116 | |
Construction Materials — 0.7% | | | | | | | | |
| CRH America, Inc. | | | | | | | | |
| 5.30%, 10/15/2013 | | | 4,600 | | | | 4,803 | |
| Lafarge North America, Inc. | | | | | | | | |
| 6.88%, 07/15/2013 | | | 4,500 | | | | 4,551 | |
| Lafarge SA | | | | | | | | |
| 6.20%, 07/09/2015 — 144A | | | 10,000 | | | | 10,143 | |
| Vulcan Materials Co. | | | | | | | | |
| 6.30%, 06/15/2013 | | | 2 | | | | 2 | |
Consumer Finance — 1.0% | | | | | | | | |
| Block Financial LLC | | | | | | | | |
| 7.88%, 01/15/2013 ^ | | | 26,495 | | | | 27,478 | |
Containers & Packaging — 1.0% | | | | | | | | |
| Rexam PLC | | | | | | | | |
| 6.75%, 06/01/2013 — 144A | | | 26,424 | | | | 28,166 | |
Diversified Financial Services — 13.5% | | | | | | | | |
| Bank of America Corp. | | | | | | | | |
| 4.75%, 08/15/2013 ^ | | | 4,400 | | | | 4,411 | |
| Citigroup, Inc. | | | | | | | | |
| 5.63%, 08/27/2012 ^ | | | 20,589 | | | | 20,993 | |
| 6.00%, 12/13/2013 ^ | | | 6,000 | | | | 6,351 | |
| FIA Card Services NA | | | | | | | | |
| 7.13%, 11/15/2012 | | | 22,691 | | | | 23,191 | |
| FMR LLC | | | | | | | | |
| 4.75%, 03/01/2013 — 144A | | | 17,560 | | | | 18,156 | |
| FUEL Trust | | | | | | | | |
| 4.21%, 04/15/2016 — 144A | | | 19,700 | | | | 19,777 | |
| Glencore Funding LLC | | | | | | | | |
| 6.00%, 04/15/2014 — 144A | | | 27,055 | | | | 27,400 | |
| GTP Towers Issuer LLC | | | | | | | | |
| 4.44%, 02/15/2015 — 144A | | | 20,810 | | | | 22,019 | |
| Harley-Davidson Funding Corp. | | | | | | | | |
| 5.25%, 12/15/2012 — 144A | | | 26,575 | | | | 27,474 | |
| International Lease Finance Corp. | | | | | | | | |
| 6.50%, 09/01/2014 — 144A | | | 28,320 | | | | 29,169 | |
| Invesco, Ltd. | | | | | | | | |
| 5.38%, 02/27/2013 | | | 13,285 | | | | 13,944 | |
| Irish Life & Permanent PLC | | | | | | | | |
| 3.60%, 01/14/2013 — 144A | | | 17,085 | | | | 14,891 | |
| JPMorgan Chase & Co. | | | | | | | | |
| 5.75%, 01/02/2013 ^ | | | 12,000 | | | | 12,622 | |
| Marina District Finance Co., Inc. | | | | | | | | |
| 9.50%, 10/15/2015 ^ | | | 13,930 | | | | 13,791 | |
| Power Receivable Finance LLC | | | | | | | | |
| 6.29%, 01/01/2012 — 144A | | | 222 | | | | 222 | |
| QHP Royalty Sub LLC | | | | | | | | |
| 10.25%, 03/15/2015 — 144A | | | 7,118 | | | | 7,232 | |
| Selkirk Cogen Funding Corp. — Series A | | | | | | | | |
| 8.98%, 06/26/2012 | | | 14,719 | | | | 14,961 | |
The notes to the financail statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 43 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Diversified Financial Services (continued) | | | | | | | | |
| Stone Street Trust | | | | | | | | |
| 5.90%, 12/15/2015 — 144A | | $ | 27,415 | | | $ | 26,052 | |
| TNK-BP Finance SA | | | | | | | | |
| 7.50%, 03/13/2013 — 144A ^ | | | 25,795 | | | | 27,244 | |
| WCP Wireless Site Funding LLC | | | | | | | | |
| 4.14%, 11/15/2015 — 144A | | | 28,187 | | | | 29,401 | |
| WEA Finance LLC | | | | | | | | |
| 5.75%, 09/02/2015 — 144A | | | 13,000 | | | | 14,020 | |
| 7.50%, 06/02/2014 — 144A ^ | | | 6,722 | | | | 7,512 | |
| Wilmington Trust Corp. | | | | | | | | |
| 4.88%, 04/15/2013 ^ | | | 4,050 | | | | 4,142 | |
Diversified Telecommunication Services — 2.9% | | | | | | | | |
| Qwest Communications International, Inc. | | | | | | | | |
| 8.00%, 10/01/2015 ^ | | | 24,950 | | | | 26,946 | |
| Telecom Italia Capital SA | | | | | | | | |
| 6.18%, 06/18/2014 ^ | | | 26,189 | | | | 26,603 | |
| Telefonica Emisiones SAU | | | | | | | | |
| 0.76%, 02/04/2013 * ^ | | | 24,565 | | | | 23,674 | |
| 2.58%, 04/26/2013 ^ | | | 5,000 | | | | 4,937 | |
Food & Staples Retailing — 0.5% | | | | | | | | |
| SUPERVALU, Inc. | | | | | | | | |
| 7.50%, 11/15/2014 ^ | | | 14,730 | | | | 14,951 | |
Gas Utilities — 0.2% | | | | | | | | |
| EQT Corp. | | | | | | | | |
| 5.15%, 11/15/2012 | | | 6,460 | | | | 6,659 | |
Hotels, Restaurants & Leisure — 0.4% | | | | | | | | |
| Marriott International, Inc. — Series J | | | | | | | | |
| 5.63%, 02/15/2013 ^ | | | 10,725 | | | | 11,123 | |
Industrial Conglomerates — 0.9% | | | | | | | | |
| Hutchison Whampoa International 03/13, Ltd. | | | | | | | | |
| 6.50%, 02/13/2013 — 144A | | | 22,810 | | | | 24,049 | |
Insurance — 2.1% | | | | | | | | |
| 21st Century Insurance Group | | | | | | | | |
| 5.90%, 12/15/2013 | | | 1,110 | | | | 1,151 | |
| Fidelity National Financial, Inc. | | | | | | | | |
| 5.25%, 03/15/2013 ^ | | | 13,289 | | | | 13,842 | |
| Liberty Mutual Group, Inc. | | | | | �� | | | |
| 5.75%, 03/15/2014 — 144A | | | 19,200 | | | | 19,961 | |
| Reinsurance Group of America, Inc. | | | | | | | | |
| 6.75%, 12/15/2011 | | | 15,490 | | | | 15,581 | |
| SAFECO Corp. | | | | | | | | |
| 7.25%, 09/01/2012 | | | 8,192 | | | | 8,535 | |
Machinery — 0.5% | | | | | | | | |
| Case New Holland, Inc. | | | | | | | | |
| 7.75%, 09/01/2013 | | | 13,195 | | | | 14,053 | |
Metals & Mining — 1.6% | | | | | | | | |
| Anglo American Capital PLC | | | | | | | | |
| 9.38%, 04/08/2014 — 144A | | | 16,156 | | | | 18,794 | |
| ArcelorMittal | | | | | | | | |
| 5.38%, 06/01/2013 ^ | | | 24,010 | | | | 25,028 | |
| 5.38%, 06/01/2013 — 144A | | | 2,068 | | | | 2,156 | |
Multi-Utilities — 0.9% | | | | | | | | |
| Black Hills Corp. | | | | | | | | |
| 6.50%, 05/15/2013 | | | 9,290 | | | | 9,880 | |
| 9.00%, 05/15/2014 | | | 12,521 | | | | 14,368 | |
Oil, Gas & Consumable Fuels — 5.5% | | | | | | | | |
| Empresa Nacional del Petroleo | | | | | | | | |
| 6.75%, 11/15/2012 — 144A | | | 12,938 | | | | 13,596 | |
| Energy Transfer Partners, LP | | | | | | | | |
| 6.00%, 07/01/2013 | | | 21,736 | | | | 23,126 | |
| KazMunayGas National Co. | | | | | | | | |
| 8.38%, 07/02/2013 — 144A^ | | | 13,000 | | | | 13,845 | |
| Lukoil International Finance BV | | | | | | | | |
| 6.38%, 11/05/2014 — 144A | | | 26,270 | | | | 27,946 | |
| Nustar Logistics, LP | | | | | | | | |
| 6.05%, 03/15/2013 ^ | | | 2,787 | | | | 2,940 | |
| 6.88%, 07/15/2012 | | | 9,785 | | | | 10,068 | |
| Petrohawk Energy Corp. | | | | | | | | |
| 10.50%, 08/01/2014 ^ | | | 22,700 | | | | 25,452 | |
| Ras Laffan Liquefied Natural Gas Co., Ltd. III | | | | | | | | |
| 4.50%, 09/30/2012 — 144A | | | 11,000 | | | | 11,220 | |
| 5.83%, 09/30/2016 — 144A | | | 10,605 | | | | 11,427 | |
| Tengizchevroil Finance Co., SARL | | | | | | | | |
| 6.12%, 11/15/2014 — 144A | | | 13,690 | | | | 14,169 | |
Paper & Forest Products — 0.3% | | | | | | | | |
| Celulosa Arauco y Constitucion SA | | | | | | | | |
| 5.13%, 07/09/2013 ^ | | | 9,400 | | | | 9,786 | |
Real Estate Investment Trusts — 8.3% | | | | | | | | |
| Dexus Property Group | | | | | | | | |
| 7.13%, 10/15/2014 — 144A | | | 25,325 | | | | 28,066 | |
| Digital Realty Trust, LP | | | | | | | | |
| 4.50%, 07/15/2015 ^ | | | 14,200 | | | | 14,412 | |
| Duke Realty, LP | | | | | | | | |
| 6.25%, 05/15/2013 | | | 1 | | | | 1 | |
| ERP Operating, LP | | | | | | | | |
| 5.20%, 04/01/2013 ^ | | | 11,080 | | | | 11,574 | |
| HCP, Inc. | | | | | | | | |
| 5.65%, 12/15/2013 | | | 26,605 | | | | 28,117 | |
| Healthcare Realty Trust, Inc. | | | | | | | | |
| 5.13%, 04/01/2014 | | | 13,456 | | | | 13,904 | |
| Hospitality Properties Trust | | | | | | | | |
| 7.88%, 08/15/2014 ^ | | | 10,000 | | | | 10,964 | |
| Kilroy Realty, LP | | | | | | | | |
| 5.00%, 11/03/2015 ^ | | | 14,130 | | | | 14,563 | |
| Liberty Property, LP | | | | | | | | |
| 6.38%, 08/15/2012 | | | 13,270 | | | | 13,679 | |
| National Retail Properties, Inc. | | | | | | | | |
| 6.15%, 12/15/2015 | | | 14,850 | | | | 16,032 | |
| 6.25%, 06/15/2014 | | | 9,958 | | | | 10,671 | |
| PPF Funding, Inc. | | | | | | | | |
| 5.35%, 04/15/2012 — 144A | | | 24,310 | | | | 24,426 | |
| Senior Housing Properties Trust | | | | | | | | |
| 4.30%, 01/15/2016 | | | 14,850 | | | | 14,731 | |
| Shurgard Storage Centers LLC | | | | | | | | |
| 5.88%, 03/15/2013 | | | 2,910 | | | | 3,049 | |
| UDR, Inc. | | | | | | | | |
| 5.13%, 01/15/2014 | | | 4,900 | | | | 5,162 | |
| 5.50%, 04/01/2014 | | | 5,500 | | | | 5,855 | |
| United Dominion Realty Trust | | | | | | | | |
| 5.00%, 01/15/2012 | | | 8,847 | | | | 8,895 | |
| 6.05%, 06/01/2013 | | | 6,080 | | | | 6,406 | |
| Westfield Capital Corp., Ltd. | | | | | | | | |
| 5.13%, 11/15/2014 — 144A | | | 5,170 | | | | 5,530 | |
Real Estate Management & Development — 2.7% | | | | | | | | |
| Brookfield Asset Management, Inc. | | | | | | | | |
| 7.13%, 06/15/2012 ^ | | | 25,089 | | | | 25,893 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 44 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | | |
| | | (000’s) | | | Value (000’s) | |
| |
Real Estate Management & Development (continued) | | | | | | | | |
| Post Apartment Homes, LP | | | | | | | | |
| 5.45%, 06/01/2012 | | $ | 9,399 | | | $ | 9,534 | |
| 6.30%, 06/01/2013 | | | 17,965 | | | | 18,840 | |
| Retail Property Trust | | | | | | | | |
| 7.18%, 09/01/2013 — 144A | | | 16,445 | | | | 17,587 | |
| World Financial Properties Tower D Finance Corp. | | | | | | | | |
| 6.95%, 09/01/2013 — 144A | | | 3,258 | | | | 3,384 | |
Semiconductors & Semiconductor Equipment — 0.4% | | | | | | | | |
| Maxim Integrated Products, Inc. | | | | | | | | |
| 3.45%, 06/14/2013 | | | 9,665 | | | | 9,955 | |
Tobacco — 0.3% | | | | | | | | |
| Lorillard Tobacco Co. | | | | | | | | |
| 3.50%, 08/04/2016 ^ | | | 7,380 | | | | 7,409 | |
Trading Companies & Distributors — 0.9% | | | | | | | | |
| Noble Group, Ltd. | | | | | | | | |
| 8.50%, 05/30/2013 — 144A | | | 24,175 | | | | 25,867 | |
Wireless Telecommunication Services — 3.4% | | | | | | | | |
| Crown Castle Towers LLC | | | | | | | | |
| 3.21%, 08/15/2015 — 144A^ | | | 12,000 | | | | 12,131 | |
| 4.52%, 01/15/2015 — 144A | | | 15,870 | | | | 16,577 | |
| Nextel Communications, Inc. — Series D | | | | | | | | |
| 7.38%, 08/01/2015 ^ | | | 10,000 | | | | 9,550 | |
| Nextel Communications, Inc. — Series E | | | | | | | | |
| 6.88%, 10/31/2013 ^ | | | 16,990 | | | | 16,777 | |
| Richland Towers Funding LLC / Management Funding / RTM Boston / Seattle Funding | | | | | | | | |
| 4.61%, 03/15/2016 — 144A | | | 12,294 | | | | 12,766 | |
| SBA Tower Trust | | | | | | | | |
| 4.25%, 04/15/2015 — 144A | | | 25,325 | | | | 26,715 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $1,753,066) | | | | | | | 1,762,774 | |
| | | | | | | | |
| | | | | | | | | |
LOAN ASSIGNMENTS — 0.8% | | | | | | | | |
Diversified Consumer Services — 0.4% | | | | | | | | |
| Visant Holding Corp., Tranche B | | | | | | | | |
| 5.25%, 12/22/2016 § | | | 13,917 | | | | 13,152 | |
Food Products — 0.4% | | | | | | | | |
| Michael Foods, Inc. | | | | | | | | |
| 4.25%, 02/23/2018 * § | | | 10,820 | | | | 10,712 | |
| | | | | | | | |
Total Loan Assignments (cost $24,295) | | | | | | | 23,864 | |
| | | | | | | | |
| | | | | | | | | |
| | | Shares | | | Value (000’s) | |
| |
SECURITIES LENDING COLLATERAL — 5.0% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 140,723,443 | | | $ | 140,723 | |
Total Securities Lending Collateral (cost $140,723) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | | |
| | | (000’s) | | | Value (000’s) | |
| |
REPURCHASE AGREEMENT — 2.3% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $64,718 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 05/25/2041, with a value of $66,013. | | $ | 64,718 | | | | 64,718 | |
Total Repurchase Agreement (cost $64,718) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $2,938,602) П | | | | | | | 2,951,725 | |
| Other Assets and Liabilities — Net | | | | | | | (130,636 | ) |
| | | | | | | | |
| | | | | |
Net Assets | | | | | | $ | 2,821,089 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 45 | | Annual Report 2011 |
Transamerica AEGON Short-Term Bond
(formerly, Transamerica Short-Term Bond)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $133,764. |
| § | | Illiquid. These securities aggregated to $41,272, or 1.46%, of the fund’s net assets. |
| |
| Ə | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of $22,344, or 0.79%, of the fund’s net assets. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $2,938,681. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $34,553 and $21,509, respectively. Net unrealized appreciation for tax purposes is $13,044. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated to $1,512,106, or 53.63%, of the fund’s net assets. |
| |
REMIC | | Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities) |
CURRENCY ABBREVIATION:
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Asset-Backed Securities | | $ | — | | | $ | 260,222 | | | $ | — | | | $ | 260,222 | |
| Corporate Debt Securities | | | — | | | | 1,762,774 | | | | — | | | | 1,762,774 | |
| Loan Assignments | | | — | | | | 23,864 | | | | — | | | | 23,864 | |
| Mortgage-Backed Securities | | | — | | | | 664,332 | | | | — | | | | 664,332 | |
| Municipal Government Obligations | | | — | | | | 33,284 | | | | — | | | | 33,284 | |
| Repurchase Agreement | | | — | | | | 64,718 | | | | — | | | | 64,718 | |
| Securities Lending Collateral | | | 140,723 | | | | — | | | | — | | | | 140,723 | |
| U.S. Government Agency Obligations | | | — | | | | 1,808 | | | | — | | | | 1,808 | |
Total | | $ | 140,723 | | | $ | 2,811,002 | | | $ | — | | | $ | 2,951,725 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 46 | | Annual Report 2011 |
Transamerica Logan Circle Emerging Markets Debt
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
FOREIGN GOVERNMENT OBLIGATIONS — 54.2% | | | | | | | | |
Argentina — 3.5% | | | | | | | | |
| Argentine Republic Government International Bond | | | | | | | | |
| 7.82%, 12/31/2033 | | EUR | 1,297 | | | $ | 1,077 | |
| Republic of Argentina | | | | | | | | |
| 1.33%, 12/31/2038 | | $ | 2,500 | | | | 931 | |
| 7.00%, 10/03/2015 | | | 1,655 | | | | 1,468 | |
Brazil — 2.0% | | | | | | | | |
| Brazilian Government International Bond | | | | | | | | |
| 4.88%, 01/22/2021 | | | 800 | | | | 884 | |
| Republic of Brazil | | | | | | | | |
| 10.25%, 01/10/2028 | | BRL | 1,650 | | | | 1,069 | |
Cayman Islands — 1.0% | | | | | | | | |
| Government of the Cayman Islands | | | | | | | | |
| 5.95%, 11/24/2019 — 144A | | $ | 1,000 | | | | 1,045 | |
Chile — 2.7% | | | | | | | | |
| Chile Government International Bond | | | | | | | | |
| 3.25%, 09/14/2021 | | | 950 | | | | 938 | |
| Republic of Chile | | | | | | | | |
| 5.50%, 08/05/2020 | | CLP | 856,000 | | | | 1,837 | |
Colombia — 4.5% | | | | | | | | |
| Colombia Government International Bond | | | | | | | | |
| 4.38%, 07/12/2021 | | $ | 2,000 | | | | 2,090 | |
| Republic of Colombia | | | | | | | | |
| 12.00%, 10/22/2015 | | COP | 3,500,000 | | | | 2,377 | |
Croatia — 1.2% | | | | | | | | |
| Croatia Government International Bond | | | | | | | | |
| 6.38%, 03/24/2021 — 144A | | $ | 1,250 | | | | 1,222 | |
Hungary — 1.1% | | | | | | | | |
| Hungary Government Bond | | | | | | | | |
| 5.50%, 02/12/2014 | | HUF | 260,000 | | | | 1,141 | |
Indonesia — 4.2% | | | | | | | | |
| Indonesia Government International Bond | | | | | | | | |
| 4.88%, 05/05/2021 — 144A | | $ | 1,550 | | | | 1,662 | |
| Indonesia Treasury Bond | | | | | | | | |
| 8.38%, 09/15/2026 | | IDR | 19,628,000 | | | | 2,550 | |
Lithuania — 0.8% | | | | | | | | |
| Republic of Lithuania | | | | | | | | |
| 6.13%, 03/09/2021 — 144A | | $ | 800 | | | | 824 | |
Mexico — 4.9% | | | | | | | | |
| Mexican Bonos | | | | | | | | |
| 6.50%, 06/10/2021 | | MXN | 12,100 | | | | 928 | |
| 7.25%, 12/15/2016 | | | 11,000 | | | | 905 | |
| United Mexican States | | | | | | | | |
| 6.05%, 01/11/2040 | | $ | 1,900 | | | | 2,228 | |
| 8.00%, 06/11/2020 | | MXN | 11,000 | | | | 935 | |
Peru — 1.0% | | | | | | | | |
| Republic of Peru | | | | | | | | |
| 8.20%, 08/12/2026 | | PEN | 2,250 | | | | 1,000 | |
Philippines — 1.4% | | | | | | | | |
| Republic of The Philippines | | | | | | | | |
| 4.95%, 01/15/2021 | | PHP | 62,000 | | | | 1,400 | |
Poland — 3.0% | | | | | | | | |
| Poland Government Bond | | | | | | | | |
| 5.25%, 10/25/2020 | | PLN | 1,500 | | | | 458 | |
| Poland Government International Bond | | | | | | | | |
| 5.00%, 03/23/2022 | | $ | 800 | | | | 790 | |
| 5.13%, 04/21/2021 | | | 1,640 | | | | 1,673 | |
Russian Federation — 4.3% | | | | | | | | |
| Russian Federation | | | | | | | | |
| 7.50%, 03/31/2030 | | $ | 1,044 | | | $ | 1,237 | |
| Russian Foreign Bond — Eurobond | | | | | | | | |
| 5.00%, 04/29/2020 — 144A | �� | | 2,000 | | | | 2,080 | |
| 7.50%, 03/31/2030 — 144A | | | 835 | | | | 989 | |
Senegal — 0.8% | | | | | | | | |
| Republic of Senegal | | | | | | | | |
| 8.75%, 05/13/2021 — 144A | | | 750 | | | | 773 | |
South Africa — 2.1% | | | | | | | | |
| Eskom Holdings SOC, Ltd. | | | | | | | | |
| 5.75%, 01/26/2021 — 144A | | | 1,000 | | | | 1,055 | |
| Republic of South Africa | | | | | | | | |
| 5.50%, 03/09/2020 | | | 1,000 | | | | 1,113 | |
Supranational — 1.0% | | | | | | | | |
| Eastern and Southern African Trade and Development Bank | | | | | | | | |
| 6.88%, 01/09/2016 | | | 1,050 | | | | 1,005 | |
Turkey — 9.3% | | | | | | | | |
| Export Credit Bank of Turkey | | | | | | | | |
| 5.38%, 11/04/2016 — 144A | | | 1,200 | | | | 1,200 | |
| Turkey Government Bond | | | | | | | | |
| 10.00%, 06/17/2015 | | TRY | 3,000 | | | | 1,729 | |
| 10.09%, 07/17/2013 ▲ | | | 2,000 | | | | 964 | |
| Turkey Government International Bond | | | | | | | | |
| 5.13%, 03/25/2022 | | $ | 2,415 | | | | 2,418 | |
| 6.00%, 01/14/2041 | | | 3,000 | | | | 2,981 | |
Ukraine — 0.7% | | | | | | | | |
| Ukraine Government International Bond | | | | | | | | |
| 6.39%, 06/26/2012 — 144A | | | 750 | | | | 739 | |
Venezuela — 4.7% | | | | | | | | |
| Republic of Venezuela | | | | | | | | |
| 9.25%, 09/15/2027 | | | 2,225 | | | | 1,608 | |
| Venezuela Government International Bond | | | | | | | | |
| 11.95%, 08/05/2031 | | | 4,075 | | | | 3,229 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $54,970) | | | | | | | 54,552 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 46.3% | | | | | | | | |
Barbados — 0.7% | | | | | | | | |
| Columbus International, Inc. | | | | | | | | |
| 11.50%, 11/20/2014 — 144A | | | 680 | | | | 704 | |
Bermuda — 2.7% | | | | | | | | |
| Digicel Group, Ltd. | | | | | | | | |
| 9.13%, 01/15/2015 — 144A Ώ | | | 1,700 | | | | 1,713 | |
| Qtel International Finance, Ltd. | | | | | | | | |
| 5.00%, 10/19/2025 — 144A | | | 1,000 | | | | 1,006 | |
Brazil — 5.9% | | | | | | | | |
| Brasil Telecom SA | | | | | | | | |
| 9.75%, 09/15/2016 — 144A | | BRL | 3,000 | | | | 1,712 | |
| Centrais Eletricas Brasileiras SA | | | | | | | | |
| 5.75%, 10/27/2021 — 144A | | $ | 815 | | | | 844 | |
| OGX Petroleo e Gas Participacoes SA | | | | | | | | |
| 8.50%, 06/01/2018 — 144A | | | 2,500 | | | | 2,474 | |
| Telemar Norte Leste SA | | | | | | | | |
| 5.50%, 10/23/2020 — 144A | | | 1,000 | | | | 1,008 | |
Canada — 1.6% | | | | | | | | |
| Pacific Rubiales Energy Corp. | | | | | | | | |
| 8.75%, 11/10/2016 — 144A | | | 725 | | | | 805 | |
| PTTEP Canada International Finance, Ltd. | | | | | | | | |
| 5.69%, 04/05/2021 — 144A | | | 800 | | | | 818 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 47 | | Annual Report 2011 |
Transamerica Logan Circle Emerging Markets Debt
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Cayman Islands — 6.9% | | | | | | | | |
| Country Garden Holdings Co., Ltd. | | | | | | | | |
| 11.75%, 09/10/2014 — 144A | | $ | 1,000 | | | $ | 970 | |
| Fibria Overseas Finance, Ltd. | | | | | | | | |
| 7.50%, 05/04/2020 — 144A | | | 700 | | | | 716 | |
| IPIC GMTN, Ltd. | | | | | | | | |
| 5.00%, 11/15/2020 — 144A | | | 500 | | | | 501 | |
| 5.50%, 03/01/2022 — 144A | | | 1,255 | | | | 1,247 | |
| 6.88%, 11/01/2041 — 144A | | | 1,255 | | | | 1,248 | |
| MIE Holdings Corp. | | | | | | | | |
| 9.75%, 05/12/2016 — 144A | | | 500 | | | | 450 | |
| Petrobras International Finance Co. | | | | | | | | |
| 6.75%, 01/27/2041 | | | 600 | | | | 686 | |
| Vale Overseas, Ltd. | | | | | | | | |
| 4.63%, 09/15/2020 | | | 500 | | | | 505 | |
| Virgolino de Oliveira Finance, Ltd. | | | | | | | | |
| 10.50%, 01/28/2018 — 144A | | | 700 | | | | 679 | |
Chile — 0.2% | | | | | | | | |
| Corp. Nacional del Cobre de Chile | | | | | | | | |
| 3.88%, 11/03/2021 — 144A | | | 200 | | | | 199 | |
Colombia — 1.0% | | | | | | | | |
| BanColombia SA | | | | | | | | |
| 5.95%, 06/03/2021 | | | 1,000 | | | | 1,020 | |
Finland — 0.6% | | | | | | | | |
| Nokia OYJ | | | | | | | | |
| 6.63%, 05/15/2039 | | | 600 | | | | 572 | |
Indonesia — 0.5% | | | | | | | | |
| Berau Capital Resources Pte, Ltd. | | | | | | | | |
| 12.50%, 07/08/2015 — 144A | | | 500 | | | | 550 | |
Ireland — 0.8% | | | | | | | | |
| Vnesheconombank Via VEB Finance PLC | | | | | | | | |
| 6.90%, 07/09/2020 — 144A | | | 750 | | | | 810 | |
Korea, Republic of — 0.6% | | | | | | | | |
| Export-Import Bank of Korea | | | | | | | | |
| 4.38%, 09/15/2021 | | | 600 | | | | 600 | |
Luxembourg — 3.7% | | | | | | | | |
| ALROSA Finance SA | | | | | | | | |
| 7.75%, 11/03/2020 — 144A | | | 1,300 | | | | 1,347 | |
| Gazprom OAO Via Gaz Capital SA | | | | | | | | |
| 6.51%, 03/07/2022 — 144A | | | 2,300 | | | | 2,415 | |
Mexico — 2.9% | | | | | | | | |
| Petroleos Mexicanos | | | | | | | | |
| 6.50%, 06/02/2041 | | | 1,750 | | | | 1,877 | |
| Sigma Alimentos SA de CV | | | | | | | | |
| 5.63%, 04/14/2018 — 144A | | | 1,000 | | | | 1,018 | |
Netherlands — 3.5% | | | | | | | | |
| Hyva Global BV | | | | | | | | |
| 8.63%, 03/24/2016 — 144A | | | 750 | | | | 675 | |
| Metinvest BV | | | | | | | | |
| 10.25%, 05/20/2015 — 144A | | | 700 | | | | 707 | |
| VimpelCom Holdings BV | | | | | | | | |
| 7.50%, 03/01/2022 — 144A | | | 2,300 | | | | 2,156 | |
Singapore — 2.3% | | | | | | | | |
| Bakrie Telecom Pte, Ltd. | | | | | | | | |
| 11.50%, 05/07/2015 — 144A | | | 550 | | | | 363 | |
| Bumi Investment Pte, Ltd. | | | | | | | | |
| 10.75%, 10/06/2017 — 144A | | | 1,800 | | | | 1,862 | |
Thailand — 0.9% | | | | | | | | |
| Bangkok Bank PCL | | | | | | | | |
| 4.80%, 10/18/2020 — 144A | | | 900 | | | | 879 | |
Trinidad and Tobago — 0.6% | | | | | | | | |
| Petroleum Co. of Trinidad & Tobago, Ltd. | | | | | | | | |
| 6.00%, 05/08/2022 — 144A | | | 642 | | | | 622 | |
United Arab Emirates — 0.5% | | | | | | | | |
| DP World, Ltd. | | | | | | | | |
| 6.85%, 07/02/2037 — 144A | | | 500 | | | | 476 | |
United Kingdom — 2.9% | | | | | | | | |
| Oschadbank Via SSB #1 PLC | | | | | | | | |
| 8.25%, 03/10/2016 | | | 900 | | | | 779 | |
| Vedanta Resources PLC | | | | | | | | |
| 8.25%, 06/07/2021 — 144A | | | 2,250 | | | | 2,081 | |
United States — 3.1% | | | | | | | | |
| Braskem America Finance Co. | | | | | | | | |
| 7.13%, 07/22/2041 — 144A | | | 1,000 | | | | 983 | |
| CEDC Finance Corp International, Inc. | | | | | | | | |
| 9.13%, 12/01/2016 — 144A | | | 500 | | | | 360 | |
| Reliance Holdings USA, Inc. | | | | | | | | |
| 4.50%, 10/19/2020 — 144A | | | 750 | | | | 727 | |
| Southern Copper Corp. | | | | | | | | |
| 7.50%, 07/27/2035 | | | 900 | | | | 997 | |
Venezuela — 2.7% | | | | | | | | |
| Petroleos de Venezuela SA | | | | | | | | |
| 5.00%, 10/28/2015 | | | 1,500 | | | | 1,016 | |
| 8.50%, 11/02/2017 — 144A | | | 2,320 | | | | 1,682 | |
Virgin Islands, British — 1.7% | | | | | | | | |
| Franshion Development, Ltd. | | | | | | | | |
| 6.75%, 04/15/2021 — 144A | | | 800 | | | | 706 | |
| QGOG Atlantic / Alaskan Rigs, Ltd. | | | | | | | | |
| 5.25%, 07/30/2018 — 144A | | | 1,000 | | | | 1,008 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $46,785) | | | | | | | 46,573 | |
| | | | | | | | |
| | | | | | | | | |
REPURCHASE AGREEMENT — 1.7% | | | | | | | | |
| State Street Bank & Trust Co. | | | | | | | | |
| 0.03% ▲, dated 10/31/2011, to be repurchased at $1,679 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/15/2040, with a value of $1,716. | | | 1,679 | | | | 1,679 | |
Total Repurchase Agreement (cost $1,679) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $103,434)П | | | | | | | 102,804 | |
| Other Assets and Liabilities — Net | | | | | | | (2,235 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 100,569 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 48 | | Annual Report 2011 |
Transamerica Logan Circle Emerging Markets Debt
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | Contracts | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Bought | | | | | Dollars Bought | | | Appreciation | |
| | | | | (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000’s) | | | Settlement Date | | (000’s) | | | (000’s) | |
| |
| Brazilian Real | | HUS | | | 760 | | | 11/03/2011 | | $ | 450 | | | $ | (8 | ) |
| Brazilian Real | | HUS | | | (760 | ) | | 11/03/2011 | | | (400 | ) | | | (42 | ) |
| Colombian Peso | | BRC | | | 3,285,200 | | | 11/25/2011 | | | 1,720 | | | | 41 | |
| Colombian Peso | | JPM | | | (3,280,899 | ) | | 11/25/2011 | | | (1,720 | ) | | | (39 | ) |
| Euro | | BRC | | | 477 | | | 11/14/2011 | | | 658 | | | | 1 | |
| Euro | | MYC | | | (155 | ) | | 11/14/2011 | | | (219 | ) | | | 4 | |
| Euro | | JPM | | | (450 | ) | | 11/14/2011 | | | (620 | ) | | | (2 | ) |
| Euro | | JPM | | | (1,965 | ) | | 11/14/2011 | | | (2,678 | ) | | | (40 | ) |
| Euro | | BOA | | | 155 | | | 11/14/2011 | | | 216 | | | | (1 | ) |
| Hungarian Forint | | BRC | | | (166,567 | ) | | 11/14/2011 | | | (754 | ) | | | (♦ | ) |
| Hungarian Forint | | JPM | | | 68,554 | | | 11/14/2011 | | | 320 | | | | (10 | ) |
| Hungarian Forint | | JPM | | | (68,554 | ) | | 11/14/2011 | | | (318 | ) | | | 7 | |
| Malaysian Ringgit | | JPM | | | 2,838 | | | 11/21/2011 | | | 905 | | | | 19 | |
| Mexican Peso | | JPM | | | (13,234 | ) | | 11/14/2011 | | | (989 | ) | | | (2 | ) |
| Polish Zloty | | BRC | | | (8,555 | ) | | 11/14/2011 | | | (2,734 | ) | | | 49 | |
| Polish Zloty | | JPM | | | 4,865 | | | 11/14/2011 | | | 1,535 | | | | (8 | ) |
| Polish Zloty | | HUS | | | 5,320 | | | 11/14/2011 | | | 1,705 | | | | (35 | ) |
| Turkish Lira | | BRC | | | (2,637 | ) | | 11/14/2011 | | | (1,485 | ) | | | (1 | ) |
| Turkish Lira | | JPM | | | 2,623 | | | 11/14/2011 | | | 1,417 | | | | 61 | |
| Turkish Lira | | MYC | | | 1,826 | | | 12/15/2011 | | | 1,025 | | | | (3 | ) |
| Turkish Lira | | JPM | | | (1,155 | ) | | 12/15/2011 | | | (647 | ) | | | ♦ | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (9 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Foreign Government Obligation | | | 53.1 | % | | $ | 54,552 | |
| Oil, Gas & Consumable Fuels | | | 14.7 | | | | 15,131 | |
| Diversified Financial Services | | | 6.1 | | | | 6,254 | |
| Metals & Mining | | | 5.7 | | | | 5,837 | |
| Diversified Telecommunication Services | | | 4.0 | | | | 4,089 | |
| Commercial Banks | | | 4.0 | | | | 4,088 | |
| Wireless Telecommunication Services | | | 3.8 | | | | 3,869 | |
| Real Estate Management & Development | | | 1.6 | | | | 1,676 | |
| Food Products | | | 1.0 | | | | 1,017 | |
| Chemicals | | | 0.9 | | | | 982 | |
| Electric Utilities | | | 0.8 | | | | 843 | |
| Media | | | 0.7 | | | | 704 | |
| Auto Components | | | 0.7 | | | | 675 | |
| Communications Equipment | | | 0.5 | | | | 572 | |
| Transportation Infrastructure | | | 0.5 | | | | 476 | |
| Beverages | | | 0.3 | | | | 360 | |
| | | | | | | |
| Investment Securities, at Value | | | 98.4 | | | | 101,125 | |
| Short-Term Investments | | | 1.6 | | | | 1,679 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 102,804 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Ώ | | Payment in-kind. Securities pay interest or dividends in the form of additional bonds or preferred stock. |
| |
| П | | Aggregate cost for federal income tax purposes is $103,525. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,067 and $1,788, respectively. Net unrealized depreciation for tax purposes is $721. |
| |
| ♦ | | Amount rounds to less than 1. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 49 | | Annual Report 2011 |
Transamerica Logan Circle Emerging Markets Debt
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated to $50,110, or 49.83%, of the fund’s net assets. |
| |
BOA | | Bank of America |
| |
BRC | | Barclays Bank PLC |
| |
GMTN | | Global Medium Term Note |
| |
HUS | | HSBC Bank USA |
| |
JPM | | JPMorgan Chase Bank |
| |
MYC | | Morgan Stanley Capital Services |
| |
| | | |
| CURRENCY ABBREVIATIONS: |
| | | |
BRL | | Brazilian Real |
| |
CLP | | Chilean Peso |
| |
COP | | Columbian Peso |
| |
EUR | | Euro |
| |
HUF | | Hungarian Forint |
| |
IDR | | Indonesian Rupiah |
| |
MXN | | Mexican Peso |
| |
PEN | | Peru Nuevo Sol |
| |
PHP | | Philippines Peso |
| |
PLN | | Polish Zloty |
| |
TRY | | Turkish New Lira |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Corporate Debt Securities | | $ | — | | | $ | 46,573 | | | $ | — | | | $ | 46,573 | |
| Foreign Government Obligations | | | — | | | | 54,552 | | | | — | | | | 54,552 | |
| Repurchase Agreement | | | — | | | | 1,679 | | | | — | | | | 1,679 | |
Total | | $ | — | | | $ | 102,804 | | | $ | — | | | $ | 102,804 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Forward Foreign Currency Contracts — Appreciation | | $ | — | | | $ | 182 | | | $ | — | | | $ | 182 | |
| Forward Foreign Currency Contracts — Depreciation | | $ | — | | | $ | (191 | ) | | $ | — | | | $ | (191 | ) |
Total | | $ | — | | | $ | (9 | ) | | $ | — | | | $ | (9 | ) |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value | | | Collateral | | | | |
| | | of OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| BOA | | $ | (1 | ) | | | — | | | $ | (1 | ) |
| BRC | | | 90 | | | | — | | | | 90 | |
| HUS | | | (85 | ) | | | — | | | | (85 | ) |
| JPM | | | (14 | ) | | | — | | | | (14 | ) |
| MYC | | | 1 | | | | — | | | | 1 | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 50 | | Annual Report 2011 |
Transamerica Morgan Stanley Capital Growth
(formerly, Transamerica Focus)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 96.5% | | | | | | | | |
Air Freight & Logistics — 2.0% | | | | | | | | |
| Expeditors International of Washington, Inc. | | | 257,257 | | | $ | 11,731 | |
Beverages — 0.4% | | | | | | | | |
| Anheuser-Busch InBev NV ADR ^ | | | 41,553 | | | | 2,305 | |
Capital Markets — 1.5% | | | | | | | | |
| Charles Schwab Corp. | | | 550,435 | | | | 6,759 | |
| Goldman Sachs Group, Inc. | | | 14,829 | | | | 1,625 | |
Chemicals — 3.0% | | | | | | | | |
| Monsanto Co. | | | 237,649 | | | | 17,289 | |
Commercial Services & Supplies — 3.3% | | | | | | | | |
| Edenred | | | 671,376 | | | | 18,938 | |
Communications Equipment — 4.1% | | | | | | | | |
| Motorola Solutions, Inc. | | | 500,834 | | | | 23,494 | |
Computers & Peripherals — 9.3% | | | | | | | | |
| Apple, Inc. ‡ | | | 132,227 | | | | 53,523 | |
Distributors — 1.7% | | | | | | | | |
| Li & Fung, Ltd. | | | 5,130,000 | | | | 9,887 | |
Diversified Financial Services — 7.3% | | | | | | | | |
| Bank of America Corp. | | | 223,676 | | | | 1,528 | |
| BM&FBovespa SA | | | 1,821,993 | | | | 10,877 | |
| Citigroup, Inc. | | | 56,501 | | | | 1,785 | |
| CME Group, Inc. — Class A | | | 28,658 | | | | 7,897 | |
| Leucadia National Corp. ^ | | | 401,541 | | | | 10,773 | |
| MSCI, Inc. — Class A ‡^ | | | 278,277 | | | | 9,292 | |
Electrical Equipment — 0.9% | | | | | | | | |
| First Solar, Inc. ‡ ^ | | | 104,187 | | | | 5,185 | |
Food & Staples Retailing — 1.3% | | | | | | | | |
| Costco Wholesale Corp. | | | 93,059 | | | | 7,747 | |
Food Products — 3.1% | | | | | | | | |
| Mead Johnson Nutrition Co. — Class A | | | 246,643 | | | | 17,721 | |
Health Care Equipment & Supplies — 3.4% | | | | | | | | |
| Intuitive Surgical, Inc. ‡ ^ | | | 45,590 | | | | 19,780 | |
Hotels, Restaurants & Leisure — 4.9% | | | | | | | | |
| Las Vegas Sands Corp. ‡ | | | 191,500 | | | | 8,991 | |
| Starbucks Corp. | | | 233,885 | | | | 9,902 | |
| Yum! Brands, Inc. | | | 168,801 | | | | 9,043 | |
Insurance — 0.3% | | | | | | | | |
| American International Group, Inc. ‡ | | | 63,605 | | | | 1,570 | |
Internet & Catalog Retail — 11.8% | | | | | | | | |
| Amazon.com, Inc. ‡ | | | 245,244 | | | | 52,363 | |
| NetFlix, Inc. ‡ ^ | | | 68,276 | | | | 5,604 | |
| priceline.com, Inc. ‡ | | | 19,738 | | | | 10,021 | |
Internet Software & Services — 13.2% | | | | | | | | |
| Baidu, Inc. ADR ‡ | | | 145,514 | | | | 20,398 | |
| eBay, Inc. ‡ | | | 399,561 | | | | 12,718 | |
| Google, Inc. — Class A ‡ | | | 59,857 | | | | 35,474 | |
| Yandex NV — Class A ‡ ^ | | | 280,377 | | | | 7,716 | |
Life Sciences Tools & Services — 1.4% | | | | | | | | |
| Illumina, Inc. ‡ ^ | | | 263,524 | | | | 8,069 | |
Media — 3.0% | | | | | | | | |
| McGraw-Hill Cos., Inc. | | | 211,228 | | | | 8,977 | |
| Naspers, Ltd. — Class N | | | 173,499 | | | | 8,231 | |
Metals & Mining — 1.7% | | | | | | | | |
| Molycorp, Inc. ‡^ | | | 258,798 | | | | 9,904 | |
Oil, Gas & Consumable Fuels — 3.4% | | | | | | | | |
| Range Resources Corp. | | | 119,459 | | | | 8,224 | |
| Ultra Petroleum Corp. ‡ ^ | | | 352,604 | | | | 11,234 | |
Pharmaceuticals — 3.1% | | | | | | | | |
| Allergan, Inc. | | | 111,098 | | | | 9,346 | |
| Valeant Pharmaceuticals International, Inc. | | | 220,100 | | | | 8,707 | |
Professional Services — 1.4% | | | | | | | | |
| SGS SA | | | 4,767 | | | | 8,177 | |
Real Estate Management & Development — 3.6% | | | | | | | | |
| Brookfield Asset Management, Inc. - Class A ^ | | | 708,700 | | | | 20,552 | |
Semiconductors & Semiconductor Equipment — 2.0% | | | | | | | | |
| ARM Holdings PLC ADR ^ | | | 353,349 | | | | 9,925 | |
| NVIDIA Corp. ‡^ | | | 124,511 | | | | 1,843 | |
| | | | | | | | | |
|
Software — 3.7% | | | | | | | | |
| Salesforce.com, Inc. ‡^ | | | 115,693 | | | | 15,407 | |
| VMware, Inc. — Class A ‡^ | | | 61,856 | | | | 6,046 | |
Trading Companies & Distributors — 1.7% | | | | | | | | |
| Fastenal Co. ^ | | | 251,043 | | | | 9,562 | |
| | | | | | | | |
Total Common Stocks (cost $531,514) | | | | | | | 556,140 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 9.4% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 53,899,629 | | | | 53,900 | |
Total Securities Lending Collateral (cost $53,900) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 15.1% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $86,854 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $88,592. | | $ | 86,854 | | | | 86,854 | |
Total Repurchase Agreement (cost $86,854) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $672,268) Π | | | | | | | 696,894 | |
| Other Assets and Liabilities — Net | | | | | | | (121,005 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 575,889 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 51 | | Annual Report 2011 |
Transamerica Morgan Stanley Capital Growth
(formerly, Transamerica Focus)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $52,684. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $672,287. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $36,356 and $11,749, respectively. Net unrealized appreciation for tax purposes is $24,607. |
DEFINITION:
ADR American Depositary Receipt
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 500,847 | | | $ | 55,293 | | | $ | — | | | $ | 556,140 | |
| Repurchase Agreement | | | — | | | | 86,854 | | | | — | | | | 86,854 | |
| Securities Lending Collateral | | | 53,900 | | | | — | | | | — | | | | 53,900 | |
Total | | $ | 554,747 | | | $ | 142,147 | | | $ | — | | | $ | 696,894 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 52 | | Annual Report 2011 |
Transamerica Morgan Stanley Growth Opportunities
(formerly, Transamerica Growth Opportunities)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCK — 0.2% | | | | | | | | |
Software — 0.2% | | | | | | | | |
Workday, Inc. ‡ Ə § D | | | 40,043 | | | $ | 531 | |
Total Preferred Stock (cost $531) | | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 97.4% | | | | | | | | |
Air Freight & Logistics — 3.5% | | | | | | | | |
| CH Robinson Worldwide, Inc.^ | | | 67,692 | | | | 4,700 | |
| Expeditors International of Washington, Inc. | | | 162,042 | | | | 7,389 | |
Capital Markets — 0.7% | | | | | | | | |
| Greenhill & Co., Inc. ^ | | | 62,183 | | | | 2,349 | |
Chemicals — 3.0% | | | | | | | | |
| Intrepid Potash, Inc. ‡^ | | | 180,689 | | | | 5,029 | |
| Rockwood Holdings, Inc. ‡ | | | 116,800 | | | | 5,377 | |
Commercial Services & Supplies — 6.4% | | | | | | | | |
| Covanta Holding Corp. ^ | | | 264,394 | | | | 3,876 | |
| Edenred | | | 456,122 | | | | 12,866 | |
| Stericycle, Inc. ‡^ | | | 66,693 | | | | 5,574 | |
Communications Equipment — 4.4% | | | | | | | | |
| Motorola Solutions, Inc. | | | 328,400 | | | | 15,405 | |
Construction Materials — 1.1% | | | | | | | | |
| Martin Marietta Materials, Inc. ^ | | | 51,434 | | | | 3,712 | |
Diversified Consumer Services — 3.2% | | | | | | | | |
| New Oriental Education & Technology Group ADR ‡ | | | 142,560 | | | | 4,225 | |
| Weight Watchers International, Inc. ^ | | | 92,642 | | | | 6,913 | |
Diversified Financial Services — 5.7% | | | | | | | | |
| IntercontinentalExchange, Inc. ‡ | | | 41,999 | | | | 5,455 | |
| Leucadia National Corp. ^ | | | 194,799 | | | | 5,226 | |
| MSCI, Inc. — Class A ‡ | | | 275,780 | | | | 9,209 | |
Electric Utilities — 1.4% | | | | | | | | |
| Brookfield Infrastructure Partners, LP | | | 201,397 | | | | 5,053 | |
Electrical Equipment — 0.9% | | | | | | | | |
| First Solar, Inc. ‡^ | | | 60,926 | | | | 3,032 | |
Food & Staples Retailing — 1.1% | | | | | | | | |
| Sun Art Retail Group, Ltd.‡ | | | 3,044,000 | | | | 3,942 | |
Food Products — 2.7% | | | | | | | | |
| Mead Johnson Nutrition Co. — Class A | | | 131,700 | | | | 9,463 | |
Health Care Equipment & Supplies — 6.8% | | | | | | | | |
| Gen-Probe, Inc. ‡ | | | 100,235 | | | | 6,024 | |
| IDEXX Laboratories, Inc. ‡^ | | | 68,483 | | | | 4,930 | |
| Intuitive Surgical, Inc. ‡ | | | 29,325 | | | | 12,723 | |
Health Care Technology — 0.9% | | | | | | | | |
| Athenahealth, Inc. ‡^ | | | 57,836 | | | | 3,060 | |
Hotels, Restaurants & Leisure — 4.0% | | | | | | | | |
| Chipotle Mexican Grill, Inc. — Class A ‡ ^ | | | 14,218 | | | | 4,779 | |
| Ctrip.com International, Ltd. ADR ‡^ | | | 136,152 | | | | 4,746 | |
| Dunkin’ Brands Group, Inc. ‡ | | | 149,923 | | | | 4,364 | |
Internet & Catalog Retail — 1.2% | | | | | | | | |
| NetFlix, Inc. ‡^ | | | 49,670 | | | | 4,077 | |
Internet Software & Services — 7.2% | | | | | | | | |
| Akamai Technologies, Inc. ‡^ | | | 183,060 | | | | 4,932 | |
| Alibaba.com, Ltd. | | | 1,833,000 | | | | 2,153 | |
| LinkedIn Corp. — Class A ‡^ | | | 55,300 | | | | 4,971 | |
| Renren, Inc. ADR ‡^ | | | 255,776 | | | | 1,801 | |
| Yandex NV — Class A ‡ | | | 287,094 | | | | 7,900 | |
| Youku.com, Inc. ADR ‡^ | | | 166,805 | | | | 3,543 | |
IT Services — 1.6% | | | | | | | | |
| Gartner, Inc. ‡ | | | 147,825 | | | | 5,694 | |
Life Sciences Tools & Services — 2.8% | | | | | | | | |
| Illumina, Inc. ‡^ | | | 170,181 | | | | 5,211 | |
| Techne Corp. | | | 68,321 | | | | 4,700 | |
Machinery — 1.7% | | | | | | | | |
| Schindler Holding AG | | | 49,266 | | | | 5,769 | |
Media — 1.5% | | | | | | | | |
| McGraw-Hill Cos., Inc. | | | 123,474 | | | | 5,248 | |
Metals & Mining — 2.1% | | | | | | | | |
| Lynas Corp., Ltd. ‡^ | | | 1,336,625 | | | | 1,654 | |
| Molycorp, Inc. ‡^ | | | 150,725 | | | | 5,768 | |
Multiline Retail — 1.6% | | | | | | | | |
| Dollar Tree, Inc. ‡ | | | 71,443 | | | | 5,713 | |
Oil, Gas & Consumable Fuels — 3.9% | | | | | | | | |
| Range Resources Corp. | | | 118,549 | | | | 8,161 | |
| Ultra Petroleum Corp. ‡^ | | | 172,628 | | | | 5,500 | |
Personal Products — 0.9% | | | | | | | | |
| Natura Cosmeticos SA | | | 157,336 | | | | 3,061 | |
Pharmaceuticals — 2.2% | | | | | | | | |
| Ironwood Pharmaceuticals, Inc. — Class A ‡^ | | | 184,854 | | | | 2,514 | |
| Valeant Pharmaceuticals International, Inc. | | | 127,292 | | | | 5,036 | |
Professional Services — 7.3% | | | | | | | | |
| IHS, Inc. — Class A ‡ | | | 67,282 | | | | 5,651 | |
| Intertek Group PLC | | | 188,241 | | | | 6,206 | |
| Qualicorp SA ‡ | | | 602,280 | | | | 5,508 | |
| Verisk Analytics, Inc. — Class A ‡ | | | 233,277 | | | | 8,200 | |
Semiconductors & Semiconductor Equipment — 2.1% | | | | | | | | |
| ARM Holdings PLC ADR ^ | | | 224,819 | | | | 6,315 | |
| NVIDIA Corp. ‡ | | | 79,912 | | | | 1,183 | |
Software — 10.0% | | | | | | | | |
| Citrix Systems, Inc. ‡ | | | 45,358 | | | | 3,303 | |
| FactSet Research Systems, Inc. ^ | | | 59,041 | | | | 5,870 | |
| Red Hat, Inc. ‡ | | | 186,082 | | | | 9,239 | |
| Salesforce.com, Inc. ‡^ | | | 60,531 | | | | 8,061 | |
| Solera Holdings, Inc. | | | 156,781 | | | | 8,565 | |
Textiles, Apparel & Luxury Goods — 1.4% | | | | | | | | |
| Lululemon Athletica, Inc. ‡^ | | | 87,740 | | | | 4,956 | |
Trading Companies & Distributors — 2.9% | | | | | | | | |
| Fastenal Co. ^ | | | 265,940 | | | | 10,130 | |
Wireless Telecommunication Services — 1.2% | | | | | | | | |
| Millicom International Cellular SA | | | 38,697 | | | | 4,268 | |
| | | | | | | | |
Total Common Stocks (cost $347,918) | | | | | | | 340,282 | |
| | | | | | | | |
| |
SECURITIES LENDING COLLATERAL — 20.9% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 73,152,942 | | | | 73,153 | |
Total Securities Lending Collateral (cost $73,153) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 2.4% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $8,369 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 05/01/2025, with a value of $8,540. | | $ | 8,369 | | | | 8,369 | |
Total Repurchase Agreement (cost $8,369) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $429,971) П | | | | | | | 422,335 | |
| Other Assets and Liabilities — Net | | | | | | | (72,910 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 349,425 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 53 | | Annual Report 2011 |
Transamerica Morgan Stanley Growth Opportunities
(formerly, Transamerica Growth Opportunities)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts except share amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| Ə | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of $531, or 0.15%, of the fund’s net assets. |
| |
| § | | Illiquid. This security had a value of $531, or 0.15%, of the fund’s net assets. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $71,483. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $429,971. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $33,203 and $40,839 respectively. Net unrealized depreciation for tax purposes is $7,636. |
| |
| D | | Restricted security. At 10/31/2011, the fund owned the following security (representing 0.15% of net assets) which were restricted as to public resale: |
| | | | | | | | | | | | | | | | | | | |
| Description | | Date of Acquisition | | Shares | | Cost | | Value | | Price |
| |
Workday, Inc. | | 10/12/2011 | | | 40,043 | | | $ | 531 | | | $ | 531 | | | $ | 13.26 | |
DEFINITION:
ADR American Depositary Receipt
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 291,361 | | | $ | 48,921 | | | $ | — | | | $ | 340,282 | |
| Preferred Stock | | | — | | | | — | | | | 531 | | | | 531 | |
| Repurchase Agreement | | | — | | | | 8,369 | | | | — | | | | 8,369 | |
| Securities Lending Collateral | | | 73,153 | | | | — | | | | — | | | | 73,153 | |
Total | | $ | 364,514 | | | $ | 57,290 | | | $ | 531 | | | $ | 422,335 | |
Level 3 Rollforward—Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in Unrealized |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | Appreciation/ |
| | | Beginning | | | | | | | | | | Accrued | | | | | | Unrealized | | | | | | Transfers | | Ending | | (Depreciation) on |
| | | Balance at | | | | | | | | | | Discounts | | Total Realized | | Appreciation/ | | Transfers | | out of | | Balance at | | Investments Held at |
| Security | | 10/31/2010 | | Purchases | | Sales | | /(Premiums) | | Gain/(Loss) | | (Depreciation) | | into Level 3 | | Level 3 | | 10/31/2011 | | 10/31/2011 |
| Preferred Stock | | $ | — | | | $ | 531 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 531 | | | $ | — | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 54 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT OBLIGATIONS — 2.1% | | | | | | | | |
| U.S. Treasury Bond | | | | | | | | |
| 2.13%, 08/15/2021 | | $ | 230 | | | $ | 229 | |
3.75%, 08/15/2041 g | | | 1,770 | | | | 1,955 | |
4.38%, 05/15/2040 g | | | 1,020 | | | | 1,250 | |
4.75%, 02/15/2041 g | | | 720 | | | | 936 | |
| U.S. Treasury Inflation Indexed Bond | | | | | | | | |
| 2.13%, 02/15/2041 | | | 352 | | | | 465 | |
| U.S. Treasury Note | | | | | | | | |
0.63%, 06/30/2012 g | | | 150 | | | | 151 | |
| 1.00%, 10/31/2016 | | | 2,235 | | | | 2,233 | |
| | | | | | | | |
Total U.S. Government Obligations (cost $6,824) | | | | | | | 7,219 | |
| | | | | | | | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS — 18.2% | | | | | | | | |
| Fannie Mae | | | | | | | | |
| 3.92%, 10/09/2019 ▲ | | | 435 | | | | 329 | |
| 4.00%, 05/01/2026 — 10/01/2041 | | | 8,739 | | | | 9,116 | |
| 4.50%, 10/01/2040 — 06/01/2041 | | | 4,843 | | | | 5,164 | |
| 5.00%, 05/01/2018 — 07/01/2035 | | | 2,371 | | | | 2,558 | |
| 5.50%, 07/01/2019 — 01/01/2039 | | | 8,075 | | | | 8,824 | |
| 6.00%, 08/01/2036 — 12/01/2037 | | | 310 | | | | 344 | |
| 6.50%, 07/01/2037 — 10/01/2039 | | | 1,760 | | | | 1,952 | |
| Fannie Mae, TBA | | | | | | | | |
| 3.50% | | | 1,800 | | | | 1,829 | |
| 4.50% | | | 10,200 | | | | 10,787 | |
| 5.00% | | | 1,400 | | | | 1,505 | |
| 5.50% | | | 700 | | | | 758 | |
| 6.00% | | | 3,200 | | | | 3,506 | |
| Freddie Mac | | | | | | | | |
| 3.97%, 01/25/2021 * | | | 420 | | | | 450 | |
| 4.00%, 06/01/2026 | | | 3,873 | | | | 4,120 | |
| 5.00%, 04/01/2018 | | | 63 | | | | 67 | |
| 5.50%, 09/01/2018 — 11/01/2018 | | | 71 | | | | 76 | |
| Freddie Mac, TBA | | | | | | | | |
| 5.00% | | | 200 | | | | 214 | |
| Ginnie Mae, TBA | | | | | | | | |
| 4.00% | | | 1,300 | | | | 1,387 | |
| 4.50% | | | 2,500 | | | | 2,717 | |
| 5.00% | | | 2,700 | | | | 2,967 | |
| 5.50% | | | 1,200 | | | | 1,332 | |
| 6.00% | | | 1,100 | | | | 1,229 | |
| | | | | | | | |
Total U.S. Government Agency Obligations (cost $60,525) | | | | | | | 61,231 | |
| | | | | | | | |
| |
FOREIGN GOVERNMENT OBLIGATIONS — 1.6% | | | | | | | | |
| Hydro Quebec | | | | | | | | |
| 8.05%, 07/07/2024 | | $ | 1,900 | | | | 2,804 | |
| 9.40%, 02/01/2021 | | | 165 | | | | 249 | |
| Indonesia Government International Bond | | | | | | | | |
| 4.88%, 05/05/2021 | | | 200 | | | | 215 | |
| Poland Government International Bond | | | | | | | | |
| 5.13%, 04/21/2021 | | | 350 | | | | 356 | |
| Republic of Brazil | | | | | | | | |
| 7.13%, 01/20/2037 | | | 100 | | | | 134 | |
| Republic of Poland | | | | | | | | |
| 6.38%, 07/15/2019 | | | 80 | | | | 90 | |
| Republic of South Africa | | | | | | | | |
| 5.50%, 03/09/2020 | | | 300 | | | | 334 | |
| Republic of Turkey | | | | | | | | |
| 5.63%, 03/30/2021 | | | 265 | | | | 280 | |
| 7.00%, 03/11/2019 | | | 100 | | | | 116 | |
| Russian Federation | | | | | | | | |
| 7.50%, 03/31/2030 Reg S | | | 501 | | | | 593 | |
| United Mexican States | | | | | | | | |
| 5.13%, 01/15/2020 | | | 260 | | | | 290 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $5,260) | | | | | | | 5,461 | |
| | | | | | | | |
| |
MORTGAGE-BACKED SECURITIES — 6.6% | | | | | | | | |
| American General Mortgage Loan Trust | | | | | | | | |
| Series 2009-1, Class A6 | | | | | | | | |
| 5.75%, 09/25/2048 — 144A * | | | 1,060 | | | | 1,069 | |
| American Tower Trust | | | | | | | | |
| Series 2007-1A, Class AFX | | | | | | | | |
| 5.42%, 04/15/2037 — 144A | | | 910 | | | | 970 | |
| Series 2007-1A, Class C | | | | | | | | |
| 5.62%, 04/15/2037 — 144A | | | 1,080 | | | | 1,144 | |
| Banc of America Large Loan, Inc. | | | | | | | | |
| Series 2010-UB4, Class A4A | | | | | | | | |
| 5.01%, 12/20/2041 — 144A * | | | 315 | | | | 332 | |
| BCAP LLC Trust | | | | | | | | |
| Series 2009-RR3, Class 2A1 | | | | | | | | |
| 5.41%, 05/26/2037 — 144A * | | | 205 | | | | 204 | |
| Series 2009-RR6, Class 2A1 | | | | | | | | |
| 5.20%, 08/26/2035 — 144A * | | | 407 | | | | 370 | |
| Series 2009-RR10, Class 2A1 | | | | | | | | |
| 2.81%, 08/26/2035 — 144A * | | | 607 | | | | 582 | |
| Series 2009-RR13, Class 13A3 | | | | | | | | |
| 5.25%, 03/26/2037 — 144A * | | | 327 | | | | 328 | |
| Series 2009-RR14, Class 1A1 | | | | | | | | |
| 6.00%, 05/26/2037 — 144A * | | | 649 | | | | 666 | |
| Series 2010-RR1, Class 12A1 | | | | | | | | |
| 5.25%, 08/26/2036 — 144A * | | | 664 | | | | 687 | |
| Series 2010-RR6, Class 1A5 | | | | | | | | |
| 5.00%, 08/26/2022 — 144A * | | | 331 | | | | 337 | |
| Credit Suisse First Boston Mortgage Securities Corp. | | | | | | | | |
| Series 2004-C5, Class A4 | | | | | | | | |
| 4.83%, 11/15/2037 | | | 420 | | | | 454 | |
| Credit Suisse Mortgage Capital Certificates | | | | | | | | |
| Series 2006-C4, Class A3 | | | | | | | | |
| 5.47%, 09/15/2039 | | | 600 | | | | 635 | |
| Series 2006-C5, Class AM | | | | | | | | |
| 5.34%, 12/15/2039 | | | 360 | | | | 299 | |
| Series 2007-C4, Class A3 | | | | | | | | |
| 5.80%, 09/15/2039 * | | | 765 | | | | 803 | |
| Series 2009-16R, Class 11A1 | | | | | | | | |
| 7.00%, 08/26/2036 — 144A | | | 310 | | | | 316 | |
| Series 2010-15R, Class 2A1 | | | | | | | | |
| 3.50%, 05/26/2036 — 144A * | | | 403 | | | | 398 | |
| Series 2010-18R, Class 3A1 | | | | | | | | |
| 4.00%, 03/26/2037 — 144A | | | 478 | | | | 485 | |
| Series 2010-RR1, Class 2A | | | | | | | | |
| 5.70%, 09/15/2040 — 144A * | | | 705 | | | | 786 | |
| Extended Stay America Trust | | | | | | | | |
| Series 2010-ESHA, Class B | | | | | | | | |
| 4.22%, 11/05/2027 — 144A | | | 450 | | | | 442 | |
| Series 2010-ESHA, Class D | | | | | | | | |
| 5.50%, 11/05/2027 — 144A | | | 510 | | | | 502 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 55 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| GS Mortgage Securities Corp. II | | | | | | | | |
| Series 2007-GG10, Class A4 | | | | | | | | |
| 5.79%, 08/10/2045 * | | $ | 195 | | | $ | 208 | |
| Jefferies & Co., Inc. | | | | | | | | |
| Series 2009-R2, Class 2A | | | | | | | | |
| 6.02%, 12/26/2037 — 144A * | | | 387 | | | | 389 | |
| Series 2009-R7, Class 1A1 | | | | | | | | |
| 5.23%, 02/26/2036 — 144A * | | | 603 | | | | 581 | |
| Series 2009-R7, Class 4A1 | | | | | | | | |
| 2.74%, 09/26/2034 — 144A * | | | 633 | | | | 587 | |
| Series 2009-R7, Class 10A3 | | | | | | | | |
| 6.00%, 12/26/2036 — 144A | | | 307 | | | | 305 | |
| Series 2009-R7, Class 12A1 | | | | | | | | |
| 5.17%, 08/26/2036 — 144A * | | | 345 | | | | 340 | |
| Series 2009-R9, Class 1A1 | | | | | | | | |
| 2.57%, 08/26/2046 — 144A * | | | 385 | | | | 376 | |
| Series 2010-R2, Class 1A1 | | | | | | | | |
| 6.00%, 05/26/2036 — 144A | | | 607 | | | | 621 | |
| Series 2010-R3, Class 1A1 | | | | | | | | |
| 2.84%, 03/21/2036 — 144A * | | | 414 | | | | 410 | |
| Series 2010-R6, Class 1A1 | | | | | | | | |
| 4.00%, 09/26/2037 — 144A | | | 285 | | | | 286 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
| Series 2004-CB8, Class A1A | | | | | | | | |
| 4.16%, 01/12/2039 — 144A | | | 683 | | | | 709 | |
| Series 2004-LN2, Class A2 | | | | | | | | |
| 5.12%, 07/15/2041 | | | 300 | | | | 320 | |
| Series 2010-C1, Class B | | | | | | | | |
| 5.95%, 06/15/2043 — 144A | | | 370 | | | | 363 | |
| JPMorgan Re-REMIC | | | | | | | | |
| Series 2009-7, Class 8A1 | | | | | | | | |
| 5.48%, 01/27/2047 — 144A * | | | 342 | | | | 343 | |
| Series 2010-4, Class 7A1 | | | | | | | | |
| 4.28%, 08/26/2035 — 144A * | | | 481 | | | | 472 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
| Series 2004-C8, Class C | | | | | | | | |
| 4.93%, 12/15/2039 * | | | 605 | | | | 591 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
| Series 2004-KEY2, Class A4 | | | | | | | | |
| 4.86%, 08/12/2039 * | | | 225 | | | | 239 | |
| Merrill Lynch/Countrywide Commercial Mortgage Trust | | | | | | | | |
| Series 2007-9, Class A4 | | | | | | | | |
| 5.70%, 09/12/2049 | | | 720 | | | | 751 | |
| Morgan Stanley Capital I | | | | | | | | |
| Series 2007-HQ12, Class A2FL | | | | | | | | |
| 0.49%, 04/12/2049 * | | | 100 | | | | 96 | |
| Series 2007-HQ12, Class A2FX | | | | | | | | |
| 5.59%, 04/12/2049 * | | | 190 | | | | 196 | |
| Morgan Stanley Re-REMIC Trust | | | | | | | | |
| Series 2011-IO, Class A | | | | | | | | |
| 2.50%, 03/23/2051 — 144A | | | 129 | | | | 128 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
| Series 2007-C33, Class A4 | | | | | | | | |
| 5.90%, 02/15/2051 * | | | 230 | | | | 245 | |
| WaMu Mortgage Pass-Through Certificates | | | | | | | | |
| Series 2003-S9, Class A6 | | | | | | | | |
| 5.25%, 10/25/2033 | | | 1,236 | | | | 1,244 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
| Series 2003-G, Class A1 | | | | | | | | |
| 4.10%, 06/25/2033 * | | | 529 | | | | 530 | |
| Wells Fargo Mortgage Loan Trust | | | | | | | | |
| Series 2010-RR1, Class 2A1 | | | | | | | | |
| 0.34%, 08/27/2047 — 144A * | | | 43 | | | | 43 | |
| | | | | | | | |
Total Mortgage-Backed Securities (cost $21,973) | | | | | | | 22,182 | |
| | | | | | | | |
| |
ASSET-BACKED SECURITIES — 2.1% | | | | | | | | |
| AmeriCredit Automobile Receivables Trust | | | | | | | | |
| Series 2011-2, Class C | | | | | | | | |
| 3.19%, 10/12/2016 | | | 430 | | | | 432 | |
| Series 2011-5, Class C | | | | | | | | |
| 3.44%, 10/08/2017 | | | 200 | | | | 200 | |
| Citibank Omni Master Trust | | | | | | | | |
| Series 2009-A17, Class A17 | | | | | | | | |
| 4.90%, 11/15/2018 — 144A | | | 600 | | | | 659 | |
| Dominos Pizza Master Issuer LLC | | | | | | | | |
| Series 2007-1, Class A2 | | | | | | | | |
| 5.26%, 04/25/2037 — 144A | | | 700 | | | | 704 | |
| Gazprom OAO Via GAZ Capital SA | | | | | | | | |
| 8.13%, 07/31/2014 — 144A | | | 880 | | | | 979 | |
| Santander Drive Auto Receivables Trust | | | | | | | | |
| Series 2010-B, Class C | | | | | | | | |
| 3.02%, 10/17/2016 — 144A | | | 755 | | | | 749 | |
| Series 2011-S1A, Class B | | | | | | | | |
| 1.48%, 07/15/2013 — 144A | | | 666 | | | | 660 | |
| Series 2011-S2A, Class C | | | | | | | | |
| 2.86%, 06/15/2017 — 144A | | | 475 | | | | 474 | |
| SLM Student Loan Trust | | | | | | | | |
| Series 2004-B, Class A2 | | | | | | | | |
| 0.55%, 06/15/2021 * | | | 318 | | | | 304 | |
| Series 2005-B, Class A2 | | | | | | | | |
| 0.53%, 03/15/2023 * | | | 456 | | | | 440 | |
| Series 2008-5, Class A4 | | | | | | | | |
| 2.12%, 07/25/2023 * | | | 300 | | | | 308 | |
| TAL Advantage LLC | | | | | | | | |
| Series 2011-1A, Class A | | | | | | | | |
| 4.60%, 01/20/2026 — 144A | | | 1,059 | | | | 1,059 | |
| | | | | | | | |
Total Asset-Backed Securities (cost $6,911) | | | | | | | 6,968 | |
| | | | | | | | |
| |
PREFERRED CORPORATE DEBT SECURITIES — 0.1% | | | | | | | | |
Capital Markets — 0.0% ∞ | | | | | | | | |
| Credit Suisse | | | | | | | | |
| 5.86%, 05/15/2017 * Ž | | | 176 | | | | 152 | |
Commercial Banks — 0.1% | | | | | | | | |
| ABN Amro North American Holding Preferred | | | | | | | | |
| Capital Repackage Trust I | | | | | | | | |
| 6.52%, 11/08/2012 — 144A * Ž | | | 240 | | | | 187 | |
Diversified Financial Services — 0.0% ∞ | | | | | | | | |
| JPMorgan Chase Capital XXV- Series Y | | | | | | | | |
| 6.80%, 10/01/2037 | | | 90 | | | | 90 | |
| | | | | | | | |
Total Preferred Corporate Debt Securities (cost $499) | | | | | | | 429 | |
| | | | | | | | |
| |
CORPORATE DEBT SECURITIES — 11.2% | | | | | | | | |
Beverages — 0.2% | | | | | | | | |
| Anheuser-Busch InBev Worldwide, Inc. | | | | | | | | |
| 9.75%, 11/17/2015 | | | BRL900 | | | | 553 | |
Capital Markets — 0.2% | | | | | | | | |
| Credit Suisse | | | | | | | | |
| 5.40%, 01/14/2020 | | $ | 110 | | | | 110 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 56 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Capital Markets (continued) | | | | | | | | |
| Goldman Sachs Group, Inc. | | | | | | | | |
| 3.63%, 02/07/2016 | | $ | 418 | | | $ | 414 | |
| Morgan Stanley | | | | | | | | |
| 5.50%, 07/28/2021 | | | 120 | | | | 117 | |
Chemicals — 0.2% | | | | | | | | |
| CF Industries Holdings, Inc. | | | | | | | | |
| 7.13%, 05/01/2020 | | | 410 | | | | 477 | |
| Lyondell Chemical Co. | | | | | | | | |
| 11.00%, 05/01/2018 | | | 280 | | | | 312 | |
Commercial Banks — 0.6% | | | | | | | | |
| Barclays Bank PLC | | | | | | | | |
| 5.93%, 09/29/2049 — 144A * Ž | | | 100 | | | | 81 | |
| Capital One Capital VI | | | | | | | | |
| 8.88%, 05/15/2040 | | | 70 | | | | 72 | |
| CIT Group, Inc. | | | | | | | | |
| 6.63%, 04/01/2018 — 144A | | | 125 | | | | 131 | |
| 7.00%, 05/01/2017 | | | 205 | | | | 205 | |
| Discover Bank | | | | | | | | |
| 7.00%, 04/15/2020 | | | 420 | | | | 439 | |
| Fifth Third Capital Trust IV | | | | | | | | |
| 6.50%, 04/15/2037 * | | | 155 | | | | 152 | |
| HSBC Bank Brasil SA — Banco Multiplo | | | | | | | | |
| 4.00%, 05/11/2016 — 144A | | | 610 | | | | 598 | |
| HSBC Bank PLC | | | | | | | | |
| 3.10%, 05/24/2016 — 144A | | | 300 | | | | 303 | |
Construction Materials — 0.0% ∞ | | | | | | | | |
| Lafarge SA | | | | | | | | |
| 7.13%, 07/15/2036 | | | 75 | | | | 66 | |
Consumer Finance — 0.4% | | | | | | | | |
| Capital One Financial Corp. | | | | | | | | |
| 3.15%, 07/15/2016 | | | 1,050 | | | | 1,069 | |
| 4.75%, 07/15/2021 | | | 290 | | | | 304 | |
Containers & Packaging — 0.4% | | | | | | | | |
| Rexam PLC | | | | | | | | |
| 6.75%, 06/01/2013 — 144A | | | 1,121 | | | | 1,195 | |
Crude Petroleum & Natural Gas — 0.1% | | | | | | | | |
| Range Resources Corp. | | | | | | | | |
| 7.25%, 05/01/2018 | | | 300 | | | | 323 | |
Diversified Financial Services — 2.8% | | | | | | | | |
| AngloGold Ashanti Holdings PLC | | | | | | | | |
| 5.38%, 04/15/2020 | | | 145 | | | | 142 | |
| CDP Financial, Inc. | | | | | | | | |
| 3.00%, 11/25/2014 — 144A | | | 925 | | | | 963 | |
| Citigroup, Inc. | | | | | | | | |
| 4.50%, 01/14/2022 | | | 125 | | | | 125 | |
| 4.59%, 12/15/2015 | | | 1,520 | | | | 1,587 | |
| 5.00%, 09/15/2014 | | | 120 | | | | 122 | |
| 6.00%, 08/15/2017 | | | 45 | | | | 49 | |
| Ford Motor Credit Co., LLC | | | | | | | | |
| 6.63%, 08/15/2017 | | | 200 | | | | 219 | |
| General Electric Capital Corp. | | | | | | | | |
| 5.50%, 01/08/2020 | | | 535 | | | | 597 | |
| Irish Life & Permanent PLC | | | | | | | | |
| 3.60%, 01/14/2013 — 144A | | | 990 | | | | 863 | |
| JPMorgan Chase & Co. | | | | | | | | |
| 3.15%, 07/05/2016 | | | 89 | | | | 89 | |
| 4.63%, 05/10/2021 | | | 450 | | | | 461 | |
| JPMorgan Chase Bank NA | | | | | | | | |
| 6.00%, 10/01/2017 | | | 985 | | | | 1,061 | |
| Northern Rock Asset Management PLC | | | | | | | | |
| 5.63%, 06/22/2017 — 144A | | | 200 | | | | 211 | |
| QHP Royalty Sub LLC | | | | | | | | |
| 10.25%, 03/15/2015 — 144A | | | 267 | | | | 271 | |
| Reynolds Group Issuer, Inc. | | | | | | | | |
| 6.88%, 02/15/2021 — 144A | | | 700 | | | | 707 | |
| 7.88%, 08/15/2019 — 144A | | | 100 | | | | 105 | |
| Swiss Re Capital I LP | | | | | | | | |
| 6.85%, 05/29/2049 — 144A * ž | | | 240 | | | | 216 | |
| WCP Wireless Site Funding LLC | | | | | | | | |
| 4.14%, 11/15/2015 — 144A | | | 1,083 | | | | 1,130 | |
| WEA Finance LLC | | | | | | | | |
| 4.63%, 05/10/2021 — 144A | | | 135 | | | | 134 | |
| Woodside Finance, Ltd. | | | | | | | | |
| 4.60%, 05/10/2021 — 144A | | | 90 | | | | 93 | |
Diversified Telecommunication Services — 0.5% | | | | | | | | |
| America Movil SAB de CV | | | | | | | | |
| 2.38%, 09/08/2016 | | | 300 | | | | 300 | |
| Level 3 Financing, Inc. | | | | | | | | |
| 8.13%, 07/01/2019 — 144A | | | 53 | | | | 52 | |
| 8.75%, 02/15/2017 | | | 410 | | | | 419 | |
| Sprint Capital Corp. | | | | | | | | |
| 6.88%, 11/15/2028 | | | 410 | | | | 299 | |
| Telefonica Emisiones SAU | | | | | | | | |
| 4.95%, 01/15/2015 | | | 350 | | | | 360 | |
| Verizon Communications, Inc. | | | | | | | | |
| 3.50%, 11/01/2021 | | | 170 | | | | 172 | |
| 6.40%, 02/15/2038 | | | 100 | | | | 125 | |
Electric Utilities — 0.5% | | | | | | | | |
| Alabama Power Co. | | | | | | | | |
| 3.95%, 06/01/2021 | | | 200 | | | | 214 | |
| Cleveland Electric Illuminating Co. | | | | | | | | |
| 5.95%, 12/15/2036 | | | 117 | | | | 125 | |
| 8.88%, 11/15/2018 | | | 25 | | | | 33 | |
| Energy Future Intermediate Holding Co., LLC | | | | | | | | |
| 10.00%, 12/01/2020 | | | 500 | | | | 525 | |
| Florida Power & Light Co. | | | | | | | | |
| 5.95%, 02/01/2038 | | | 150 | | | | 195 | |
| Georgia Power Co. | | | | | | | | |
| 3.00%, 04/15/2016 | | | 365 | | | | 383 | |
| Jersey Central Power & Light Co. | | | | | | | | |
| 7.35%, 02/01/2019 | | | 105 | | | | 133 | |
Energy Equipment & Services — 0.2% | | | | | | | | |
| El Paso Pipeline Partners Operating Co., LLC | | | | | | | | |
| 6.50%, 04/01/2020 | | | 255 | | | | 282 | |
| Ensco PLC | | | | | | | | |
| 4.70%, 03/15/2021 | | | 205 | | | | 216 | |
| Enterprise Products Operating LLC | | | | | | | | |
| 6.13%, 10/15/2039 | | | 240 | | | | 278 | |
Food Products — 0.2% | | | | | | | | |
| Kraft Foods, Inc. | | | | | | | | |
| 5.38%, 02/10/2020 | | | 300 | | | | 346 | |
| Sara Lee Corp. | | | | | | | | |
| 4.10%, 09/15/2020 | | | 180 | | | | 181 | |
Health Care Equipment & Supplies — 0.0% ∞ | | | | | | | | |
| CareFusion Corp. | | | | | | | | |
| 6.38%, 08/01/2019 | | | 130 | | | | 153 | |
Health Care Providers & Services — 0.2% | | | | | | | | |
| HCA, Inc. | | | | | | | | |
| 6.50%, 02/15/2020 | | | 108 | | | | 113 | |
| 7.25%, 09/15/2020 | | | 150 | | | | 161 | |
| Tenet Healthcare Corp. | | | | | | | | |
| 8.88%, 07/01/2019 | | | 410 | | | | 463 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 57 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Hotels, Restaurants & Leisure — 0.5% | | | | | | | | |
| Caesars Entertainment Operating Co., Inc. | | | | | | | | |
| 11.25%, 06/01/2017 | | $ | 410 | | | $ | 439 | |
| International Game Technology | | | | | | | | |
| 7.50%, 06/15/2019 | | | 430 | | | | 505 | |
| MGM Resorts International | | | | | | | | |
| 10.38%, 05/15/2014 | | | 150 | | | | 167 | |
| 11.13%, 11/15/2017 | | | 400 | | | | 454 | |
| Yum! Brands, Inc. | | | | | | | | |
| 5.30%, 09/15/2019 | | | 77 | | | | 87 | |
| 6.25%, 04/15/2016 | | | 116 | | | | 135 | |
Insurance — 0.5% | | | | | | | | |
| American International Group, Inc. | | | | | | | | |
| 5.45%, 05/18/2017 | | | 165 | | | | 164 | |
| Fairfax Financial Holdings, Ltd. | | | | | | | | |
| 5.80%, 05/15/2021 — 144A | | | 265 | | | | 249 | |
| Hartford Financial Services Group, Inc. | | | | | | | | |
| 6.00%, 01/15/2019 | | | 130 | | | | 135 | |
| Lincoln National Corp. | | | | | | | | |
| 7.00%, 06/15/2040 | | | 115 | | | | 128 | |
| MetLife Capital Trust IV | | | | | | | | |
| 7.88%, 12/15/2037 — 144A | | | 100 | | | | 106 | |
| Prudential Financial, Inc. | | | | | | | | |
| 4.75%, 09/17/2015 | | | 560 | | | | 599 | |
| 5.38%, 06/21/2020 | | | 210 | | | | 234 | |
| XL Group PLC | | | | | | | | |
| 6.50%, 12/29/2049 * Ž | | | 170 | | | | 143 | |
Machinery — 0.0% ∞ | | | | | | | | |
| Joy Global, Inc. | | | | | | | | |
| 5.13%, 10/15/2021 | | | 75 | | | | 80 | |
Media — 0.5% | | | | | | | | |
| CBS Corp. | | | | | | | | |
| 4.63%, 05/15/2018 | | | 70 | | | | 73 | |
| 8.88%, 05/15/2019 | | | 220 | | | | 284 | |
| CCH II LLC | | | | | | | | |
| 13.50%, 11/30/2016 | | | 100 | | | | 115 | |
| Clear Channel Worldwide Holdings, Inc. — Series B | | | | | | | | |
| 9.25%, 12/15/2017 | | | 240 | | | | 260 | |
| COX Communications, Inc. | | | | | | | | |
| 8.38%, 03/01/2039 — 144A | | | 200 | | | | 280 | |
| CSC Holdings LLC | | | | | | | | |
| 8.50%, 04/15/2014 | | | 102 | | | | 112 | |
| DIRECTV Holdings LLC | | | | | | | | |
| 3.13%, 02/15/2016 | | | 220 | | | | 226 | |
| NBCUniversal Media LLC | | | | | | | | |
| 4.38%, 04/01/2021 | | | 50 | | | | 53 | |
| Time Warner Cable, Inc. | | | | | | | | |
| 5.50%, 09/01/2041 | | | 180 | | | | 194 | |
| Time Warner, Inc. | | | | | | | | |
| 6.10%, 07/15/2040 | | | 100 | | | | 115 | |
Metals & Mining — 0.3% | | | | | | | | |
| Barrick Gold Corp. | | | | | | | | |
| 2.90%, 05/30/2016 | | | 830 | | | | 862 | |
| Barrick North America Finance LLC | | | | | | | | |
| 4.40%, 05/30/2021 | | | 5 | | | | 5 | |
| Cliffs Natural Resources, Inc. | | | | | | | | |
| 4.88%, 04/01/2021 | | | 75 | | | | 75 | |
Multiline Retail — 0.1% | | | | | | | | |
| Macy’s Retail Holdings, Inc. | | | | | | | | |
| 5.90%, 12/01/2016 | | | 335 | | | | 375 | |
| 7.45%, 07/15/2017 | | | 75 | | | | 87 | |
Multi-Utilities — 0.1% | | | | | | | | |
| Dominion Resources, Inc. | | | | | | | | |
| 1.95%, 08/15/2016 | | | 235 | | | | 235 | |
Oil, Gas & Consumable Fuels — 1.7% | | | | | | | | |
| Anadarko Petroleum Corp. | | | | | | | | |
| 5.95%, 09/15/2016 | | | 512 | | | | 589 | |
| 6.38%, 09/15/2017 | | | 203 | | | | 239 | |
| Chesapeake Energy Corp. | | | | | | | | |
| 6.63%, 08/15/2020 | | | 410 | | | | 444 | |
| Consol Energy, Inc. | | | | | | | | |
| 8.00%, 04/01/2017 | | | 410 | | | | 449 | |
| El Paso Corp. | | | | | | | | |
| 6.50%, 09/15/2020 | | | 145 | | | | 158 | |
| Enterprise Products Operating LLC | | | | | | | | |
| 5.20%, 09/01/2020 | | | 35 | | | | 39 | |
| 6.30%, 09/15/2017 | | | 175 | | | | 205 | |
| KeySpan Gas East Corp. | | | | | | | | |
| 5.82%, 04/01/2041 — 144A | | | 160 | | | | 192 | |
| Kinder Morgan Energy Partners, LP | | | | | | | | |
| 5.95%, 02/15/2018 | | | 500 | | | | 571 | |
| 6.55%, 09/15/2040 | | | 50 | | | | 57 | |
| Kinder Morgan Finance Co., ULC | | | | | | | | |
| 5.70%, 01/05/2016 | | | 560 | | | | 574 | |
| Marathon Petroleum Corp. | | | | | | | | |
| 6.50%, 03/01/2041 — 144A | | | 325 | | | | 378 | |
| MEG Energy Corp. | | | | | | | | |
| 6.50%, 03/15/2021 — 144A | | | 150 | | | | 156 | |
| Nexen, Inc. | | | | | | | | |
| 7.50%, 07/30/2039 | | | 295 | | | | 357 | |
| Petroleum Co., of Trinidad & Tobago, Ltd. | | | | | | | | |
| 9.75%, 08/14/2019 — 144A | | | 420 | | | | 488 | |
| Plains Exploration & Production Co. | | | | | | | | |
| 10.00%, 03/01/2016 | | | 40 | | | | 44 | |
| Range Resources Corp. | | | | | | | | |
| 5.75%, 06/01/2021 | | | 40 | | | | 43 | |
| Western Gas Partners, LP | | | | | | | | |
| 5.38%, 06/01/2021 | | | 315 | | | | 335 | |
| Williams Partners, LP | | | | | | | | |
| 4.13%, 11/15/2020 | | | 420 | | | | 431 | |
Real Estate Investment Trusts — 0.0% ∞ | | | | | | | | |
| Ventas Realty, LP | | | | | | | | |
| 4.75%, 06/01/2021 | | | 120 | | | | 118 | |
Real Estate Management & Development — 0.1% | | | | | | | | |
| Realogy Corp. | | | | | | | | |
| 7.88%, 02/15/2019 — 144A | | | 270 | | | | 243 | |
Road & Rail — 0.1% | | | | | | | | |
| Burlington Northern Santa Fe LLC | | | | | | | | |
| 5.75%, 05/01/2040 | | | 350 | | | | 415 | |
Software — 0.1% | | | | | | | | |
| First Data Corp. | | | | | | | | |
| 8.25%, 01/15/2021 — 144A | | | 30 | | | | 29 | |
| Oracle Corp. | | | | | | | | |
| 5.38%, 07/15/2040 — 144A | | | 150 | | | | 179 | |
Wireless Telecommunication Services — 0.7% | | | | | | | | |
| Crown Castle Towers LLC | | | | | | | | |
| 6.11%, 01/15/2020 — 144A | | | 545 | | | | 602 | |
| MetroPCS Wireless, Inc. | | | | | | | | |
| 7.88%, 09/01/2018 | | | 42 | | | | 43 | |
| SBA Tower Trust | | | | | | | | |
| 5.10%, 04/15/2017 — 144A | | | 1,465 | | | | 1,596 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $37,059) | | | | | | | 37,544 | |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 58 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCK — 0.0% ∞ | | | | | | | | |
Diversified Financial Services — 0.0% ∞ | | | | | | | | |
| Citigroup Capital XIII, 7.88% * | | | 4,321 | | | $ | 116 | |
Total Preferred Stock (cost $113) | | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 59.7% | | | | | | | | |
Aerospace & Defense — 1.4% | | | | | | | | |
| Honeywell International, Inc. | | | 29,170 | | | | 1,529 | |
| L-3 Communications Holdings, Inc. | | | 1,665 | | | | 113 | |
| Northrop Grumman Corp. | | | 4,621 | | | | 267 | |
| Raytheon Co. | | | 6,164 | | | | 272 | |
| United Technologies Corp. | | | 33,160 | | | | 2,585 | |
Airlines — 0.1% | | | | | | | | |
| Southwest Airlines Co. | | | 37,731 | | | | 323 | |
Auto Components — 0.4% | | | | | | | | |
| Johnson Controls, Inc. | | | 36,314 | | | | 1,196 | |
Automobiles — 0.3% | | | | | | | | |
| General Motors Co. ‡ | | | 39,038 | | | | 1,009 | |
Beverages — 1.9% | | | | | | | | |
| Coca-Cola Co. | | | 48,323 | | | | 3,301 | |
| Constellation Brands, Inc. — Class A ‡ | | | 7,394 | | | | 150 | |
| Dr. Pepper Snapple Group, Inc. | | | 12,668 | | | | 474 | |
| PepsiCo, Inc. | | | 36,966 | | | | 2,327 | |
Biotechnology — 1.2% | | | | | | | | |
| Biogen Idec, Inc. ‡ | | | 15,815 | | | | 1,840 | |
| Celgene Corp. ‡ | | | 30,250 | | | | 1,961 | |
| Dendreon Corp. ‡ | | | 11,393 | | | | 125 | |
Capital Markets — 1.3% | | | | | | | | |
| Bank of New York Mellon Corp. | | | 3,726 | | | | 79 | |
| Goldman Sachs Group, Inc. | | | 8,765 | | | | 960 | |
| Invesco, Ltd. | | | 64,147 | | | | 1,288 | |
| Legg Mason, Inc. | | | 2,067 | | | | 57 | |
| Morgan Stanley | | | 38,885 | | | | 686 | |
| State Street Corp. | | | 30,010 | | | | 1,212 | |
Chemicals — 1.3% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 17,015 | | | | 1,466 | |
| CF Industries Holdings, Inc. | | | 2,653 | | | | 431 | |
| Dow Chemical Co. | | | 4,547 | | | | 127 | |
| E.I. du Pont de Nemours & Co. | | | 47,312 | | | | 2,273 | |
| Georgia Gulf Corp. ‡ | | | 12,247 | | | | 222 | |
Commercial Banks — 1.4% | | | | | | | | |
| First Republic Bank ‡ | | | 3,240 | | | | 90 | |
| SVB Financial Group ‡ | | | 3,873 | | | | 178 | |
| U.S. Bancorp | | | 41,134 | | | | 1,053 | |
| Wells Fargo & Co. | | | 129,020 | | | | 3,342 | |
| Zions Bancorporation | | | 3,061 | | | | 53 | |
Communications Equipment — 1.3% | | | | | | | | |
| Cisco Systems, Inc. | | | 134,532 | | | | 2,494 | |
| Juniper Networks, Inc. ‡ | | | 9,251 | | | | 226 | |
| QUALCOMM, Inc. | | | 31,809 | | | | 1,641 | |
Computers & Peripherals — 3.0% | | | | | | | | |
| Apple, Inc. ‡ | | | 20,760 | | | | 8,403 | |
| EMC Corp. ‡ | | | 36,063 | | | | 884 | |
| Hewlett-Packard Co. | | | 26,799 | | | | 713 | |
| Western Digital Corp. ‡ | | | 4,059 | | | | 108 | |
Construction & Engineering — 0.4% | | | | | | | | |
| Fluor Corp. | | | 22,153 | | | | 1,259 | |
Consumer Finance — 1.0% | | | | | | | | |
| American Express Co. | | | 28,284 | | | | 1,432 | |
| Capital One Financial Corp. | | | 41,159 | | | | 1,879 | |
Containers & Packaging — 0.3% | | | | | | | | |
| Ball Corp. | | | 18,230 | | | | 630 | |
| Crown Holdings, Inc. ‡ | | | 5,852 | | | | 198 | |
| Sealed Air Corp. | | | 18,436 | | | | 328 | |
Diversified Financial Services — 1.4% | | | | | | | | |
| Bank of America Corp. | | | 252,876 | | | | 1,727 | |
| Citigroup, Inc. | | | 69,252 | | | | 2,188 | |
| CME Group, Inc. — Class A | | | 2,058 | | | | 567 | |
| IntercontinentalExchange, Inc. ‡ | | | 972 | | | | 126 | |
Diversified Telecommunication Services — 1.6% | | | | | | | | |
| AT&T, Inc. | | | 95,733 | | | | 2,806 | |
| Frontier Communications Corp. | | | 17,593 | | | | 110 | |
| Verizon Communications, Inc. | | | 63,366 | | | | 2,343 | |
Electric Utilities — 0.9% | | | | | | | | |
| American Electric Power Co., Inc. | | | 19,118 | | | | 751 | |
| Exelon Corp. | | | 11,347 | | | | 504 | |
| Nextera Energy, Inc. | | | 18,962 | | | | 1,069 | |
| Northeast Utilities | | | 21,586 | | | | 746 | |
| PPL Corp. | | | 3,300 | | | | 97 | |
Electrical Equipment — 0.5% | | | | | | | | |
| Emerson Electric Co. | | | 37,065 | | | | 1,784 | |
Electronic Equipment & Instruments — 0.1% | | | | | | | | |
| TE Connectivity, Ltd. | | | 5,815 | | | | 207 | |
Energy Equipment & Services — 1.7% | | | | | | | | |
| Baker Hughes, Inc. | | | 24,373 | | | | 1,413 | |
| Helmerich & Payne, Inc. | | | 7,035 | | | | 374 | |
| Nabors Industries, Ltd. ‡ | | | 4,714 | | | | 86 | |
| National Oilwell Varco, Inc. | | | 14,132 | | | | 1,008 | |
| Schlumberger, Ltd. | | | 36,287 | | | | 2,667 | |
| Weatherford International, Ltd. ‡ | | | 13,745 | | | | 213 | |
Food & Staples Retailing — 1.4% | | | | | | | | |
| CVS Caremark Corp. | | | 31,294 | | | | 1,136 | |
| Kroger Co. | | | 52,187 | | | | 1,210 | |
| Safeway, Inc. | | | 5,688 | | | | 110 | |
| SUPERVALU, Inc. | | | 3,525 | | | | 28 | |
| Sysco Corp. | | | 23,199 | | | | 643 | |
| Wal-Mart Stores, Inc. | | | 30,450 | | | | 1,727 | |
Food Products — 1.1% | | | | | | | | |
| General Mills, Inc. | | | 14,910 | | | | 574 | |
| JM Smucker Co. | | | 1,534 | | | | 118 | |
| Kellogg Co. | | | 7,460 | | | | 404 | |
| Kraft Foods, Inc. — Class A | | | 69,435 | | | | 2,444 | |
| Tyson Foods, Inc. — Class A | | | 4,973 | | | | 96 | |
Gas Utilities — 0.2% | | | | | | | | |
| AGL Resources, Inc. | | | 12,644 | | | | 530 | |
Health Care Equipment & Supplies — 1.1% | | | | | | | | |
| Becton, Dickinson and Co. | | | 13,788 | | | | 1,079 | |
| Covidien PLC | | | 36,656 | | | | 1,724 | |
| St. Jude Medical, Inc. | | | 19,478 | | | | 760 | |
Health Care Providers & Services — 1.4% | | | | | | | | |
| Aetna, Inc. | | | 8,750 | | | | 348 | |
| Express Scripts, Inc. ‡ | | | 8,575 | | | | 392 | |
| Humana, Inc. | | | 12,771 | | | | 1,084 | |
| McKesson Corp. | | | 14,324 | | | | 1,168 | |
| Quest Diagnostics, Inc. | | | 2,754 | | | | 154 | |
| UnitedHealth Group, Inc. | | | 33,347 | | | | 1,600 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 59 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Hotels, Restaurants & Leisure — 0.9% | | | | | | | | |
| Carnival Corp. | | | 13,647 | | | $ | 481 | |
| Marriott International, Inc. — Class A | | | 17,472 | | | | 550 | |
| McDonald’s Corp. | | | 7,507 | | | | 697 | |
| Wynn Resorts, Ltd. | | | 3,759 | | | | 499 | |
| Yum! Brands, Inc. | | | 13,399 | | | | 718 | |
Household Durables — 0.1% | | | | | | | | |
| D.R. Horton, Inc. | | | 4,697 | | | | 52 | |
| Lennar Corp. — Class A | | | 15,345 | | | | 254 | |
| Whirlpool Corp. | | | 3,654 | | | | 186 | |
Household Products — 1.3% | | | | | | | | |
| Colgate-Palmolive Co. | | | 3,087 | | | | 279 | |
| Procter & Gamble Co. | | | 63,446 | | | | 4,060 | |
Independent Power Producers & Energy Traders —0.1% | | | | | | | | |
| Calpine Corp. ‡ | | | 24,512 | | | | 372 | |
Industrial Conglomerates — 1.6% | | | | | | | | |
| 3M Co. | | | 14,996 | | | | 1,185 | |
| General Electric Co. | | | 173,343 | | | | 2,897 | |
| Tyco International, Ltd. | | | 30,429 | | | | 1,386 | |
Insurance — 1.9% | | | | | | | | |
| ACE, Ltd. | | | 17,144 | | | | 1,237 | |
| Aflac, Inc. | | | 8,043 | | | | 363 | |
| Allstate Corp. | | | 16,959 | | | | 447 | |
| Axis Capital Holdings, Ltd. | | | 15,929 | | | | 499 | |
| Berkshire Hathaway, Inc. — Class B ‡ | | | 14,564 | | | | 1,134 | |
| Everest RE Group, Ltd. | | | 2,574 | | | | 231 | |
| Hartford Financial Services Group, Inc. | | | 7,689 | | | | 148 | |
| Lincoln National Corp. | | | 14,662 | | | | 279 | |
| MetLife, Inc. | | | 23,003 | | | | 809 | |
| PartnerRe, Ltd. | | | 1,435 | | | | 89 | |
| Prudential Financial, Inc. | | | 22,726 | | | | 1,232 | |
Internet & Catalog Retail — 0.6% | | | | | | | | |
| Amazon.com, Inc. ‡ | | | 9,155 | | | | 1,955 | |
Internet Software & Services — 0.5% | | | | | | | | |
| Google, Inc. — Class A ‡ | | | 3,029 | | | | 1,795 | |
IT Services — 2.5% | | | | | | | | |
| Accenture PLC — Class A | | | 17,555 | | | | 1,058 | |
| Cognizant Technology Solutions Corp. — Class A ‡ | | | 10,432 | | | | 759 | |
| Genpact, Ltd. ‡ | | | 12,290 | | | | 198 | |
| International Business Machines Corp. | | | 25,746 | | | | 4,754 | |
| Mastercard, Inc. — Class A | | | 3,775 | | | | 1,311 | |
| Western Union Co. | | | 10,385 | | | | 181 | |
Leisure Equipment & Products — 0.1% | | | | | | | | |
| Hasbro, Inc. | | | 5,135 | | | | 195 | |
Machinery — 0.6% | | | | | | | | |
| Kennametal, Inc. | | | 3,100 | | | | 121 | |
| PACCAR, Inc. | | | 40,798 | | | | 1,764 | |
Media — 2.4% | | | | | | | | |
| CBS Corp. — Class B | | | 83,454 | | | | 2,154 | |
| Comcast Corp. — Class A | | | 89,344 | | | | 2,095 | |
| DIRECTV — Class A ‡ | | | 4,125 | | | | 188 | |
| Time Warner, Inc. | | | 62,875 | | | | 2,200 | |
| Viacom, Inc. — Class B | | | 9,600 | | | | 421 | |
| Walt Disney Co. | | | 31,950 | | | | 1,114 | |
Metals & Mining — 0.5% | | | | | | | | |
| Alcoa, Inc. | | | 101,127 | | | | 1,088 | |
| Newmont Mining Corp. | | | 8,607 | | | | 575 | |
Multiline Retail — 0.8% | | | | | | | | |
| Big Lots, Inc. ‡ | | | 2,984 | | | | 112 | |
| Family Dollar Stores, Inc. | | | 13,051 | | | | 765 | |
| Kohl’s Corp. | | | 6,193 | | | | 328 | |
| Macy’s, Inc. | | | 21,680 | | | | 662 | |
| Target Corp. | | | 16,323 | | | | 895 | |
Multi—Utilities — 1.1% | | | | | | | | |
| CenterPoint Energy, Inc. | | | 62,833 | | | | 1,310 | |
| CMS Energy Corp. | | | 14,010 | | | | 292 | |
| Dominion Resources, Inc. | | | 12,433 | | | | 641 | |
| DTE Energy Co. | | | 4,160 | | | | 217 | |
| Public Service Enterprise Group, Inc. | | | 19,624 | | | | 661 | |
| Sempra Energy | | | 11,900 | | | | 639 | |
Oil, Gas & Consumable Fuels — 5.3% | | | | | | | | |
| Anadarko Petroleum Corp. | | | 8,384 | | | | 658 | |
| Chevron Corp. | | | 45,008 | | | | 4,728 | |
| ConocoPhillips | | | 36,824 | | | | 2,565 | |
| Devon Energy Corp. | | | 16,530 | | | | 1,074 | |
| Exxon Mobil Corp. | | | 59,914 | | | | 4,679 | |
| Marathon Oil Corp. | | | 12,451 | | | | 324 | |
| Marathon Petroleum Corp. | | | 7,814 | | | | 281 | |
| Occidental Petroleum Corp. | | | 27,849 | | | | 2,588 | |
| Pioneer Natural Resources Co. | | | 1,429 | | | | 120 | |
| Southwestern Energy Co. ‡ | | | 5,640 | | | | 237 | |
| Williams Cos., Inc. | | | 35,044 | | | | 1,055 | |
Pharmaceuticals — 3.4% | | | | | | | | |
| Abbott Laboratories | | | 51,279 | | | | 2,762 | |
| Johnson & Johnson | | | 18,342 | | | | 1,181 | |
| Merck & Co., Inc. | | | 106,400 | | | | 3,672 | |
| Mylan, Inc. ‡ | | | 20,276 | | | | 397 | |
| Pfizer, Inc. | | | 174,223 | | | | 3,356 | |
| Teva Pharmaceutical Industries, Ltd. ADR | | | 2,505 | | | | 102 | |
Real Estate Investment Trusts — 1.2% | | | | | | | | |
| Alexandria Real Estate Equities, Inc. | | | 514 | | | | 34 | |
| Apartment Investment & Management Co. — Class A | | | 13,987 | | | | 345 | |
| AvalonBay Communities, Inc. | | | 1,543 | | | | 206 | |
| Brandywine Realty Trust | | | 7,774 | | | | 71 | |
| Digital Realty Trust, Inc. | | | 9,499 | | | | 592 | |
| Duke Realty Corp. | | | 27,649 | | | | 340 | |
| Dupont Fabros Technology, Inc. | | | 1,572 | | | | 33 | |
| EastGroup Properties, Inc. | | | 1,019 | | | | 44 | |
| Equity Lifestyle Properties, Inc. | | | 2,934 | | | | 194 | |
| Lasalle Hotel Properties | | | 5,145 | | | | 123 | |
| Mack-Cali Realty Corp. | | | 10,324 | | | | 290 | |
| Regency Centers Corp. | | | 8,647 | | | | 354 | |
| Senior Housing Properties Trust | | | 23,618 | | | | 530 | |
| Ventas, Inc. | | | 13,301 | | | | 739 | |
Road & Rail — 1.9% | | | | | | | | |
| CSX Corp. | | | 104,642 | | | | 2,324 | |
| Norfolk Southern Corp. | | | 26,193 | | | | 1,938 | |
| Union Pacific Corp. | | | 22,278 | | | | 2,218 | |
Semiconductors & Semiconductor Equipment — 1.5% | | | | | | | | |
| Altera Corp. | | | 10,795 | | | | 409 | |
| Broadcom Corp. — Class A ‡ | | | 14,700 | | | | 531 | |
| Freescale Semiconductor Holdings I, Ltd. ‡ | | | 34,243 | | | | 452 | |
| Intel Corp. | | | 8,203 | | | | 201 | |
| LAM Research Corp. ‡ | | | 18,279 | | | | 786 | |
| LSI Corp. ‡ | | | 85,223 | | | | 533 | |
| Novellus Systems, Inc. ‡ | | | 6,160 | | | | 213 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 60 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Semiconductors & Semiconductor Equipment (continued) | | | | | | | | |
| NVIDIA Corp. ‡ | | | 23,142 | | | $ | 343 | |
| Texas Instruments, Inc. | | | 9,938 | | | | 305 | |
| Xilinx, Inc. | | | 40,255 | | | | 1,346 | |
Software — 2.2% | | | | | | | | |
| Adobe Systems, Inc. ‡ | | | 23,180 | | | | 682 | |
| Microsoft Corp. | | | 164,208 | | | | 4,373 | |
| Oracle Corp. | | | 69,067 | | | | 2,263 | |
Specialty Retail — 1.1% | | | | | | | | |
| AutoZone, Inc. ‡ | | | 3,683 | | | | 1,192 | |
| Bed Bath & Beyond, Inc. ‡ | | | 1,543 | | | | 95 | |
| GameStop Corp. — Class A ‡ | | | 2,190 | | | | 56 | |
| Home Depot, Inc. | | | 23,794 | | | | 852 | |
| Lowe’s Cos., Inc. | | | 27,359 | | | | 575 | |
| Staples, Inc. | | | 8,302 | | | | 124 | |
| TJX Cos., Inc. | | | 13,135 | | | | 774 | |
Textiles, Apparel & Luxury Goods — 0.4% | | | | | | | | |
| Nike, Inc. — Class B | | | 10,608 | | | | 1,022 | |
| V.F. Corp. | | | 2,636 | | | | 364 | |
Tobacco — 0.9% | | | | | | | | |
| Altria Group, Inc. | | | 32,338 | | | | 891 | |
| Philip Morris International, Inc. | | | 32,087 | | | | 2,242 | |
Wireless Telecommunication Services — 0.1% | | | | | | | | |
| Sprint Nextel Corp. ‡ | | | 116,943 | | | | 301 | |
| | | | | | | | |
Total Common Stocks (cost $189,762) | | | | | | | 200,910 | |
| | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
PURCHASED OPTIONS — 0.0% ∞ | | | | | | | | |
Call Options — 0.0% ∞ | | | | | | | | |
| 10-Year U.S. Treasury Note Future | | $ | 16 | | | | 11 | |
| Call Strike $130.00 | | | | | | | | |
| Expires 11/25/2011 | | | | | | | | |
| 10-Year U.S. Treasury Note Future | | | 33 | | | | 13 | |
| Call Strike $131.00 | | | | | | | | |
| Expires 11/25/2011 | | | | | | | | |
| 10-Year U.S. Treasury Note Future | | | 33 | | | | 2 | |
| Call Strike $134.00 | | | | | | | | |
| Expires 11/25/2011 | | | | | | | | |
Put Options — 0.0% ∞ | | | | | | | | |
| 10-Year U.S. Treasury Note Future | | | 32 | | | | 9 | |
| Put Strike $126.50 | | | | | | | | |
| Expires 11/25/2011 | | | | | | | | |
| Eurodollar, Mid-Curve 1-Year Future | | | 423 | | | | 21 | |
| Put Strike $99.00 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| | | | | | | | |
Total Purchased Options (cost $127) | | | | | | | 56 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 6.4% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $21,427 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 3.50% - 4.00%, due 12/25/2024 - 11/25/2038, with a total value of $21,858. | | $ | 21,427 | | | $ | 21,427 | |
Total Repurchase Agreement (cost $21,427) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $350,480) П | | | | | | | 363,543 | |
| Other Assets and Liabilities — Net | | | | | | | (26,994 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 336,549 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES SOLD SHORT — (4.2%) | | | | | | | | |
| U.S. GOVERNMENT AGENCY OBLIGATIONS — (4.2%) | | | | |
| Fannie Mae, TBA | | | | | | | | |
| 4.00% | | | (7,300 | ) | | | (7,580 | ) |
| 5.50% | | | (2,500 | ) | | | (2,712 | ) |
| Freddie Mac, TBA | | | | | | | | |
| 4.00% | | | (3,700 | ) | | | (3,877 | ) |
| | | | | | | | |
Total Securities Sold Short (proceeds $(14,111)) | | | | | | | (14,169 | ) |
| | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
WRITTEN OPTIONS — 0.0% ∞ | | | | | | | | |
Call Options — 0.0% ∞ | | | | | | | | |
| 10-Year U.S. Treasury Note Future | | $ | (33 | ) | | | (7 | ) |
| Call Strike $132.00 | | | | | | | | |
| Expires 11/25/2011 | | | | | | | | |
| 10-Year U.S. Treasury Note Future | | | (33 | ) | | | (4 | ) |
| Call Strike $133.00 | | | | | | | | |
| Expires 11/25/2011 | | | | | | | | |
| | | | | | | | |
Total Written Options (premiums: $(42)) | | | | | | | (11 | ) |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 61 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FUTURES CONTRACTS: g
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | Appreciation | |
| | | | | | | | | | | | | | | (Depreciation) | |
| Description | | Type | | | Contracts Г | | | Expiration Date | | | (000’s) | |
| |
| 10-Year U.S. Treasury Note | | Long | | | 26 | | | | 12/20/2011 | | | $ | 12 | |
| 2-Year U.S. Treasury Note | | Long | | | 7 | | | | 12/30/2011 | | | | 2 | |
| 30-Year U.S. Treasury Bond | | Long | | | 26 | | | | 12/20/2011 | | | | (5 | ) |
| 5-Year U.S. Treasury Note | | Long | | | 9 | | | | 12/30/2011 | | | | 6 | |
| 90-Day Euro | | Long | | | 21 | | | | 12/15/2014 | | | | 4 | |
| 90-Day Euro | | Long | | | 21 | | | | 03/16/2015 | | | | 4 | |
| S&P 500 E-Mini Index | | Long | | | 47 | | | | 12/16/2011 | | | | 44 | |
| Ultra Long U.S. Treasury Bond | | Long | | | 6 | | | | 12/20/2011 | | | | 59 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 126 | |
| | | | | | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| g | | A portion of this security in the amount of $380 and cash in the amount of $48 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| Ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| ‡ | | Non-income producing security. |
| |
| П | | Aggregate cost for federal income tax purposes is $350,482. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $20,583 and $7,522, respectively. Net unrealized appreciation for tax purposes is $13,061. |
| |
| Г | | Contract amounts are not in thousands. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated to $32,593, or 9.68%, of the fund’s net assets. |
| |
ADR | | American Depositary Receipt |
| |
REMIC | | Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities) |
| |
TBA | | To Be Announced |
CURRENCY ABBREVIATIONS:
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 62 | | Annual Report 2011 |
Transamerica Multi-Managed Balanced
(formerly, Transamerica Balanced)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Asset-Backed Securities | | $ | — | | | $ | 6,968 | | | $ | — | | | $ | 6,968 | |
| Common Stocks | | | 194,982 | | | | 5,928 | | | | — | | | | 200,910 | |
| Corporate Debt Securities | | | — | | | | 37,544 | | | | — | | | | 37,544 | |
| Foreign Government Obligations | | | — | | | | 5,461 | | | | — | | | | 5,461 | |
| Mortgage-Backed Securities | | | — | | | | 22,182 | | | | — | | | | 22,182 | |
| Preferred Corporate Debt Securities | | | — | | | | 429 | | | | — | | | | 429 | |
| Preferred Stock | | | 116 | | | | — | | | | — | | | | 116 | |
| Purchased Options | | | 56 | | | | — | | | | — | | | | 56 | |
| Repurchase Agreement | | | — | | | | 21,427 | | | | — | | | | 21,427 | |
| U.S. Government Agency Obligations | | | — | | | | 61,231 | | | | — | | | | 61,231 | |
| U.S. Government Obligations | | | — | | | | 7,219 | | | | — | | | | 7,219 | |
| | | | |
Total | | $ | 195,154 | | | $ | 168,389 | | | $ | — | | | $ | 363,543 | |
| | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Securities Sold Short | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| U.S. Government Agency Obligations | | $ | — | | | $ | (14,169 | ) | | $ | — | | | $ | (14,169 | ) |
| | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Written Options | | $ | — | | | $ | (11 | ) | | $ | — | | | $ | (11 | ) |
| | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Futures Contracts — Appreciation | | $ | 131 | | | $ | — | | | $ | — | | | $ | 131 | |
| Futures Contracts — Depreciation | | $ | (5 | ) | | $ | — | | | $ | — | | | $ | (5 | ) |
| | | | |
Total | | $ | 126 | | | $ | — | | | $ | — | | | $ | 126 | |
| | | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 63 | | Annual Report 2011 |
Transamerica Systematic Small/Mid Cap Value
(formerly, Transamerica Small/Mid Cap Value)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 96.0% | | | | | | | | |
Aerospace & Defense — 1.3% | | | | | | | | |
Curtiss-Wright Corp. ^ | | | 36,500 | | | $ | 1,196 | |
Ducommun, Inc. ^ | | | 110,751 | | | | 1,580 | |
Triumph Group, Inc. ^ | | | 87,725 | | | | 5,098 | |
Air Freight & Logistics — 0.4% | | | | | | | | |
| Atlas Air Worldwide Holdings, Inc. ‡ | | | 68,940 | | | | 2,656 | |
Auto Components — 1.3% | | | | | | | | |
| Lear Corp. | | | 176,393 | | | | 8,275 | |
Automobiles — 0.8% | | | | | | | | |
| Harley-Davidson, Inc. | | | 120,500 | | | | 4,687 | |
Beverages — 0.6% | | | | | | | | |
| Constellation Brands, Inc. — Class A ‡ | | | 187,600 | | | | 3,793 | |
Building Products — 1.4% | | | | | | | | |
| A.O. Smith Corp. | | | 54,000 | | | | 2,007 | |
| Fortune Brands Home & Security, Inc. ‡ | | | 51,400 | | | | 747 | |
Gibraltar Industries, Inc. ‡ ^ | | | 180,119 | | �� | | 2,010 | |
| Owens Corning, Inc. ‡ | | | 132,800 | | | | 3,768 | |
Capital Markets — 4.1% | | | | | | | | |
Duff & Phelps Corp. — Class A ^ | | | 92,500 | | | | 1,174 | |
| Invesco, Ltd. | | | 337,500 | | | | 6,774 | |
| LPL Investment Holdings, Inc. ‡ | | | 55,000 | | | | 1,596 | |
Piper Jaffray Cos. ‡ ^ | | | 60,000 | | | | 1,246 | |
| Raymond James Financial, Inc. | | | 269,235 | | | | 8,176 | |
| State Street Corp. | | | 86,100 | | | | 3,478 | |
Stifel Financial Corp. ‡ ^ | | | 58,000 | | | | 1,848 | |
| Waddell & Reed Financial, Inc. — Class A | | | 36,000 | | | | 998 | |
Chemicals — 1.8% | | | | | | | | |
A. Schulman, Inc. ^ | | | 43,900 | | | | 927 | |
| Agrium, Inc. | | | 54,700 | | | | 4,501 | |
Ferro Corp. ‡ ^ | | | 120,000 | | | | 776 | |
| Huntsman Corp. | | | 330,200 | | | | 3,877 | |
| PolyOne Corp. | | | 103,300 | | | | 1,156 | |
Commercial Banks — 5.7% | | | | | | | | |
| City National Corp. | | | 26,500 | | | | 1,124 | |
| Fifth Third Bancorp | | | 771,650 | | | | 9,267 | |
| First Citizens BancShares, Inc. — Class A | | | 29,113 | | | | 4,747 | |
First Community Bancshares, Inc. ^ | | | 120,240 | | | | 1,444 | |
| KeyCorp | | | 1,099,000 | | | | 7,758 | |
Lakeland Bancorp, Inc. ^ | | | 50,332 | | | | 468 | |
Sandy Spring Bancorp, Inc. ^ | | | 120,000 | | | | 2,041 | |
Texas Capital Bancshares, Inc. ‡ ^ | | | 52,600 | | | | 1,473 | |
Umpqua Holdings Corp. ^ | | | 190,000 | | | | 2,176 | |
Washington Trust Bancorp, Inc. ^ | | | 56,921 | | | | 1,337 | |
Webster Financial Corp. ^ | | | 195,000 | | | | 3,830 | |
Commercial Services & Supplies — 0.3% | | | | | | | | |
HNI Corp. ^ | | | 39,500 | | | | 950 | |
Steelcase, Inc. — Class A ^ | | | 108,400 | | | | 803 | |
Communications Equipment — 0.4% | | | | | | | | |
| Harmonic Lightwaves, Inc. ‡ | | | 280,000 | | | | 1,540 | |
KVH Industries, Inc. ‡ ^ | | | 145,791 | | | | 1,073 | |
Computers & Peripherals — 0.9% | | | | | | | | |
| QLogic Corp. ‡ | | | 104,000 | | | | 1,453 | |
| SanDisk Corp. ‡ | | | 36,400 | | | | 1,844 | |
| Western Digital Corp. ‡ | | | 91,825 | | | | 2,446 | |
Construction & Engineering — 1.3% | | | | | | | | |
| Chicago Bridge & Iron Co. NV | | | 10,700 | | | | 391 | |
EMCOR Group, Inc. ^ | | | 74,000 | | | | 1,855 | |
| KBR, Inc. | | | 205,887 | | | | 5,747 | |
Consumer Finance — 2.7% | | | | | | | | |
| Discover Financial Services | | | 354,100 | | | | 8,343 | |
| SLM Corp. | | | 607,925 | | | | 8,310 | |
Diversified Consumer Services — 0.3% | | | | | | | | |
| Weight Watchers International, Inc. | | | 23,300 | | | | 1,739 | |
Electric Utilities — 3.0% | | | | | | | | |
| FirstEnergy Corp. | | | 200,000 | | | | 8,992 | |
MGE Energy, Inc. ^ | | | 38,000 | | | | 1,658 | |
| PPL Corp. | | | 276,600 | | | | 8,124 | |
Electrical Equipment — 1.1% | | | | | | | | |
PowerSecure International, Inc. ‡ ^ | | | 313,761 | | | | 1,333 | |
| Regal Beloit Corp. | | | 24,000 | | | | 1,275 | |
| Thomas & Betts Corp. ‡ | | | 39,000 | | | | 1,938 | |
Woodward, Inc. ^ | | | 58,500 | | | | 1,982 | |
Electronic Equipment & Instruments — 1.7% | | | | | | | | |
| Orbotech, Ltd. ‡ | | | 305,000 | | | | 3,248 | |
Park Electrochemical Corp. ^ | | | 73,286 | | | | 2,074 | |
Rofin-Sinar Technologies, Inc. ‡ ^ | | | 54,000 | | | | 1,404 | |
TTM Technologies, Inc. ‡ ^ | | | 119,994 | | | | 1,340 | |
Universal Display Corp. ‡ ^ | | | 21,100 | | | | 988 | |
Vishay Intertechnology, Inc. ‡ ^ | | | 130,400 | | | | 1,402 | |
Energy Equipment & Services — 2.4% | | | | | | | | |
Dresser-Rand Group, Inc. ‡ ^ | | | 28,000 | | | | 1,355 | |
Oil States International, Inc. ‡ ^ | | | 97,325 | | | | 6,775 | |
| Superior Energy Services, Inc. ‡ | | | 241,950 | | | | 6,804 | |
Food Products — 2.3% | | | | | | | | |
Hain Celestial Group, Inc. ‡ ^ | | | 215,500 | | | | 7,231 | |
J&J Snack Foods Group ^ | | | 25,145 | | | | 1,297 | |
Smithfield Foods, Inc. ‡ ^ | | | 247,050 | | | | 5,648 | |
Health Care Equipment & Supplies — 1.1% | | | | | | | | |
| Align Technology, Inc. ‡ | | | 49,600 | | | | 1,142 | |
| Zimmer Holdings, Inc. ‡ | | | 112,200 | | | | 5,905 | |
Health Care Providers & Services — 4.7% | | | | | | | | |
AMN Healthcare Services, Inc. ‡ ^ | | | 221,500 | | | | 1,050 | |
| Cardinal Health, Inc. | | | 161,100 | | | | 7,131 | |
| CIGNA Corp. | | | 104,500 | | | | 4,634 | |
| Coventry Health Care, Inc. ‡ | | | 117,000 | | | | 3,722 | |
| Health Management Associates, Inc. - Class A ‡ | | | 725,300 | | | | 6,354 | |
| Health Net, Inc. ‡ | | | 216,800 | | | | 6,025 | |
Health Care Technology — 0.4% | | | | | | | | |
Omnicell, Inc. ‡ ^ | | | 168,500 | | | | 2,519 | |
Hotels, Restaurants & Leisure — 0.7% | | | | | | | | |
| PF Chang’s China Bistro, Inc. | | | 16,500 | | | | 513 | |
| Wendy’s Co. | | | 400,000 | | | | 2,024 | |
| Wyndham Worldwide Corp. | | | 62,500 | | | | 2,105 | |
Household Durables — 0.5% | | | | | | | | |
| Harman International Industries, Inc. | | | 42,000 | | | | 1,813 | |
MDC Holdings, Inc. ^ | | | 33,400 | | | | 748 | |
Ryland Group, Inc. ^ | | | 54,400 | | | | 734 | |
Household Products — 0.4% | | | | | | | | |
| Spectrum Brands Holdings, Inc. ‡ | | | 90,200 | | | | 2,289 | |
Industrial Conglomerates — 0.4% | | | | | | | | |
| Carlisle Cos., Inc. | | | 58,000 | | | | 2,420 | |
Insurance — 6.5% | | | | | | | | |
| Alleghany Corp. | | | 7,500 | | | | 2,380 | |
| Aspen Insurance Holdings, Ltd. | | | 82,800 | | | | 2,193 | |
| Hartford Financial Services Group, Inc. | | | 98,200 | | | | 1,890 | |
| Lincoln National Corp. | | | 314,475 | | | | 5,991 | |
| Marsh & McLennan Cos., Inc. | | | 293,100 | | | | 8,976 | |
| Selective Insurance Group, Inc. | | | 265,000 | | | | 4,248 | |
| United Fire & Casualty Co. | | | 261,643 | | | | 4,922 | |
| Validus Holdings, Ltd. | | | 67,100 | | | | 1,836 | |
| XL Group PLC — Class A | | | 383,600 | | | | 8,339 | |
Internet Software & Services — 1.5% | | | | | | | | |
| IAC/InterActiveCorp ‡ | | | 40,000 | | | | 1,633 | |
Valueclick, Inc. ‡ ^ | | | 314,710 | | | | 5,539 | |
XO Group, Inc. ‡ ^ | | | 210,000 | | | | 1,938 | |
IT Services — 0.2% | | | | | | | | |
VeriFone Holdings, Inc. ‡ ^ | | | 26,000 | | | | 1,097 | |
Leisure Equipment & Products — 0.5% | | | | | | | | |
Arctic Cat, Inc. ‡ ^ | | | 88,800 | | | | 1,804 | |
Jakks Pacific, Inc. ^ | | | 18,600 | | | | 353 | |
Leapfrog Enterprises, Inc. — Class A ‡ ^ | | | 299,800 | | | | 1,118 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 64 | | Annual Report 2011 |
Transamerica Systematic Small/Mid Cap Value
(formerly, Transamerica Small/Mid Cap Value)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Machinery — 5.4% | | | | | | | | |
Altra Holdings, Inc. ‡ ^ | | | 212,400 | | | $ | 3,122 | |
| CIRCOR International, Inc. | | | 59,900 | | | | 2,086 | |
Columbus McKinnon Corp. ‡ ^ | | | 114,400 | | | | 1,715 | |
| Crane Co. | | | 29,200 | | | | 1,288 | |
| Eaton Corp. | | | 116,200 | | | | 5,208 | |
| Gardner Denver, Inc. | | | 15,000 | | | | 1,160 | |
| Harsco Corp. | | | 14,800 | | | | 341 | |
| Kennametal, Inc. | | | 38,200 | | | | 1,486 | |
Mueller Industries, Inc. ^ | | | 62,000 | | | | 2,508 | |
NN, Inc. ‡ ^ | | | 163,400 | | | | 1,444 | |
Pentair, Inc. ^ | | | 129,150 | | | | 4,643 | |
| Sauer-Danfoss, Inc. ‡ | | | 48,300 | | | | 1,870 | |
| Timken Co. | | | 130,425 | | | | 5,494 | |
Wabash National Corp. ‡ ^ | | | 120,000 | | | | 828 | |
Media — 0.5% | | | | | | | | |
| CBS Corp. — Class B | | | 119,000 | | | | 3,071 | |
Metals & Mining — 0.9% | | | | | | | | |
| Noranda Aluminum Holding Corp. ‡ | | | 76,700 | | | | 710 | |
| Nucor Corp. | | | 73,800 | | | | 2,789 | |
| Reliance Steel & Aluminum Co. | | | 32,800 | | | | 1,449 | |
Worthington Industries, Inc. ^ | | | 36,600 | | | | 632 | |
Multiline Retail — 1.5% | | | | | | | | |
| Macy’s, Inc. | | | 302,500 | | | | 9,235 | |
Multi — Utilities — 2.9% | | | | | | | | |
| CMS Energy Corp. | | | 331,800 | | | | 6,908 | |
| NiSource, Inc. | | | 293,025 | | | | 6,473 | |
| NorthWestern Corp. | | | 135,000 | | | | 4,651 | |
Oil, Gas & Consumable Fuels — 4.3% | | | | | | | | |
Carrizo Oil & Gas, Inc. ‡ ^ | | | 27,500 | | | | 748 | |
| Energen Corp. | | | 160,525 | | | | 7,874 | |
McMoRan Exploration Co. ‡ ^ | | | 76,900 | | | | 937 | |
| SM Energy Co. | | | 34,000 | | | | 2,819 | |
| Spectra Energy Corp. | | | 64,250 | | | | 1,839 | |
| Tesoro Corp. ‡ | | | 69,000 | | | | 1,790 | |
| Valero Energy Corp. | | | 61,650 | | | | 1,517 | |
W&T Offshore, Inc. ^ | | | 102,575 | | | | 2,020 | |
| Western Refining, Inc. ‡ | | | 451,300 | | | | 7,212 | |
Paper & Forest Products — 1.2% | | | | | | | | |
| Domtar Corp. | | | 19,000 | | | | 1,556 | |
| MeadWestvaco Corp. | | | 132,600 | | | | 3,701 | |
P.H. Glatfelter Co. ^ | | | 130,000 | | | | 1,950 | |
Personal Products — 1.5% | | | | | | | | |
| Herbalife, Ltd. | | | 83,250 | | | | 5,191 | |
Nu Skin Enterprises, Inc. — Class A ^ | | | 79,300 | | | | 4,007 | |
Pharmaceuticals — 0.4% | | | | | | | | |
Impax Laboratories, Inc. ‡ ^ | | | 80,000 | | | | 1,513 | |
Nektar Therapeutics ‡ ^ | | | 207,733 | | | | 1,126 | |
Professional Services — 0.3% | | | | | | | | |
On Assignment, Inc. ‡ ^ | | | 185,000 | | | | 1,996 | |
Real Estate Investment Trusts — 7.1% | | | | | | | | |
| Annaly Capital Management, Inc. | | | 286,900 | | | | 4,834 | |
BioMed Realty Trust, Inc. ^ | | | 300,106 | | | | 5,435 | |
Brandywine Realty Trust ^ | | | 326,200 | | | | 2,972 | |
CBL & Associates Properties, Inc. ^ | | | 449,125 | | | | 6,908 | |
DiamondRock Hospitality Co. ^ | | | 345,000 | | | | 3,122 | |
Dupont Fabros Technology, Inc. ^ | | | 128,200 | | | | 2,665 | |
Equity One, Inc. ^ | | | 130,000 | | | | 2,230 | |
Excel Trust, Inc. ^ | | | 246,119 | | | | 2,587 | |
Home Properties, Inc. ^ | | | 140,025 | | | | 8,247 | |
National Retail Properties, Inc. ^ | | | 90,000 | | | | 2,453 | |
Piedmont Office Realty Trust, Inc. — Class A ^ | | | 52,100 | | | | 885 | |
| Realty Income Corp. | | | 22,100 | | | | 738 | |
Weingarten Realty Investors ^ | | | 73,000 | | | | 1,694 | |
Road & Rail — 2.2% | | | | | | | | |
Hertz Global Holdings, Inc. ‡ ^ | | | 488,413 | | | | 5,666 | |
| Ryder System, Inc. | | | 153,050 | | | | 7,796 | |
Semiconductors & Semiconductor Equipment. — 2.9% | | | | | | | | |
Applied Micro Circuits Corp. ‡ ^ | | | 235,000 | | | | 1,584 | |
| Atmel Corp. ‡ | | | 472,005 | | | | 4,983 | |
| Brooks Automation, Inc. | | | 230,000 | | | | 2,404 | |
| COHU, Inc. | | | 85,000 | | | | 943 | |
| Entegris, Inc. ‡ | | | 275,000 | | | | 2,464 | |
| MKS Instruments, Inc. | | | 44,000 | | | | 1,172 | |
Omnivision Technologies, Inc. ‡ ^ | | | 58,100 | | | | 948 | |
RF Micro Devices, Inc. ‡ ^ | | | 225,002 | | | | 1,652 | |
| TriQuint Semiconductor, Inc. ‡ | | | 322,894 | | | | 1,718 | |
Software — 3.1% | | | | | | | | |
| Cadence Design Systems, Inc. ‡ | | | 432,548 | | | | 4,788 | |
| Electronic Arts, Inc. ‡ | | | 156,275 | | | | 3,649 | |
| Progress Software Corp. ‡ | | | 97,000 | | | | 2,043 | |
| Symantec Corp. ‡ | | | 395,000 | | | | 6,720 | |
Websense, Inc. ‡ ^ | | | 112,300 | | | | 2,003 | |
Specialty Retail — 4.2% | | | | | | | | |
| American Eagle Outfitters, Inc. | | | 153,100 | | | | 2,010 | |
Ann, Inc. ‡ ^ | | | 125,401 | | | | 3,341 | |
| Finish Line, Inc. — Class A | | | 225,000 | | | | 4,523 | |
| Foot Locker, Inc. | | | 202,750 | | | | 4,432 | |
Pier 1 Imports, Inc. ‡ ^ | | | 375,400 | | | | 4,696 | |
| Signet Jewelers, Ltd. | | | 163,475 | | | | 7,047 | |
Textiles, Apparel & Luxury Goods — 2.5% | | | | | | | | |
Columbia Sportswear Co. ^ | | | 29,000 | | | | 1,558 | |
G-III Apparel Group, Ltd. ‡ ^ | | | 54,500 | | | | 1,536 | |
K-Swiss, Inc. — Class A ‡ ^ | | | 171,172 | | | | 770 | |
Oxford Industries, Inc. ^ | | | 70,000 | | | | 2,765 | |
| PVH Corp. | | | 79,600 | | | | 5,924 | |
| Steven Madden, Ltd. ‡ | | | 75,000 | | | | 2,768 | |
Thrifts & Mortgage Finance — 3.0% | | | | | | | | |
Berkshire Hills Bancorp, Inc. ^ | | | 130,331 | | | | 2,609 | |
Brookline Bancorp, Inc. ^ | | | 180,000 | | | | 1,505 | |
Dime Community Bancshares, Inc. ^ | | | 100,000 | | | | 1,192 | |
| First Niagara Financial Group, Inc. | | | 178,070 | | | | 1,636 | |
Northwest Bancshares, Inc. ^ | | | 138,000 | | | | 1,721 | |
Oritani Financial Corp. ^ | | | 71,000 | | | | 920 | |
Provident Financial Services, Inc. ^ | | | 135,000 | | | | 1,748 | |
Provident New York Bancorp ^ | | | 235,000 | | | | 1,633 | |
Trustco Bank Corp. ^ | | | 225,000 | | | | 1,116 | |
United Financial Bancorp, Inc. ^ | | | 80,685 | | | | 1,302 | |
| Washington Federal, Inc. | | | 217,000 | | | | 2,963 | |
Tobacco — 0.3% | | | | | | | | |
| Lorillard, Inc. | | | 15,975 | | | | 1,768 | |
Water Utilities — 1.1% | | | | | | | | |
| American Water Works Co., Inc. | | | 233,550 | | | | 7,130 | |
| | | | | | | | |
Total Common Stocks (cost $635,401) | | | | | | | 595,579 | |
| | | | | | | | |
| | | | | | | | | |
| SECURITIES LENDING COLLATERAL — 15.0% | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 92,766,113 | | | | 92,766 | |
| Total Securities Lending Collateral (cost $92,766) | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 2.7% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $16,700 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 04/01/2025, with a value of $17,036. | | $ | 16,700 | | | | 16,700 | |
Total Repurchase Agreement (cost $16,700) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $744,867) П | | | | | | | 705,045 | |
| Other Assets and Liabilities — Net | | | | | | | (84,869 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 620,176 | |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 65 | | Annual Report 2011 |
Transamerica Systematic Small/Mid Cap Value
(formerly, Transamerica Small/Mid Cap Value)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $88,976. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $746,996. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $26,793 and $68,744, respectively. Net unrealized depreciation for tax purposes is $41,951. |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 583,601 | | | $ | 11,978 | | | $ | — | | | $ | 595,579 | |
| Repurchase Agreement | | | — | | | | 16,700 | | | | — | | | | 16,700 | |
| Securities Lending Collateral | | | 92,766 | | | | — | | | | — | | | | 92,766 | |
| | | | | | | | | | | | | |
Total | | $ | 676,367 | | | $ | 28,678 | | | $ | — | | | $ | 705,045 | |
| | | | | | | | | | | | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 66 | | Annual Report 2011 |
Transamerica TS&W International Equity
(formerly, TS&W International Equity)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCK — 0.9% | | | | | | | | |
Russian Federation — 0.9% | | | | | | | | |
| Sberbank of Russia , 1.85% ▲ | | | 540,000 | | | $ | 1,188 | |
Total Preferred Stock (cost $1,337) | | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 97.3% | | | | | | | | |
Australia — 3.3% | | | | | | | | |
| Apa Group | | | 386,000 | | | | 1,760 | |
| Computershare, Ltd. | | | 140,400 | | | | 1,109 | |
| Telstra Corp., Ltd. | | | 415,000 | | | | 1,347 | |
Belgium — 1.2% | | | | | | | | |
| Anheuser-Busch InBev NV | | | 26,700 | | | | 1,481 | |
Bermuda — 3.9% | | | | | | | | |
| Cosan, Ltd. — Class A | | | 123,000 | | | | 1,476 | |
| First Pacific Co. | | | 2,050,200 | | | | 2,131 | |
| RenaissanceRe Holdings, Ltd. | | | 19,000 | | | | 1,294 | |
Brazil — 0.5% | | | | | | | | |
| Cia de Saneamento Basico do Estado de Sao Paulo ADR ‡ | | | 11,800 | | | | 640 | |
Canada — 1.1% | | | | | | | | |
| Canadian Imperial Bank of Commerce | | | 18,000 | | | | 1,357 | |
Denmark — 0.7% | | | | | | | | |
| TDC A/S | | | 110,000 | | | | 903 | |
Finland — 0.9% | | | | | | | | |
| Sampo OYJ — Class A | | | 41,578 | | | | 1,143 | |
France — 7.5% | | | | | | | | |
| AXA SA | | | 80,283 | | | | 1,291 | |
| Bouygues SA ‡ | | | 36,600 | | | | 1,367 | |
| Etablissements Maurel et Prom | | | 45,000 | | | | 905 | |
| Euler Hermes SA | | | 15,500 | | | | 1,119 | |
| Sanofi | | | 31,500 | | | | 2,253 | |
| Societe Generale SA | | | 21,100 | | | | 604 | |
| Vivendi SA | | | 83,300 | | | | 1,861 | |
Germany — 8.7% | | | | | | | | |
| Adidas AG | | | 22,100 | | | | 1,556 | |
| Allianz SE | | | 11,000 | | | | 1,224 | |
| Bayer AG | | | 31,600 | | | | 2,013 | |
| Gerresheimer AG | | | 18,600 | | | | 824 | |
| HeidelbergCement AG | | | 27,900 | | | | 1,263 | |
| Hochtief AG | | | 15,400 | | | | 1,120 | |
| Linde AG | | | 4,200 | | | | 665 | |
| Rheinmetall AG | | | 12,000 | | | | 636 | |
| Siemens AG | | | 16,000 | | | | 1,677 | |
Greece — 0.5% | | | | | | | | |
| Opap SA | | | 51,536 | | | | 598 | |
Guernsey, Channel Islands — 1.0% | | | | | | | | |
| Resolution, Ltd. | | | 293,800 | | | | 1,293 | |
Hong Kong — 1.0% | | | | | | | | |
| Guangdong Investment, Ltd. | | | 2,032,000 | | | | 1,218 | |
Ireland — 2.9% | | | | | | | | |
| Ryanair Holdings PLC ADR ‡ | | | 69,900 | | | | 2,011 | |
| Smurfit Kappa Group PLC ‡ | | | 241,700 | | | | 1,647 | |
Italy — 4.4% | | | | | | | | |
| Fiat Industrial SpA ‡ | | | 158,349 | | | | 969 | |
| Fiat SpA | | | 184,349 | | | | 973 | |
| Pirelli & C SpA | | | 230,500 | | | | 2,035 | |
| Prysmian SpA | | | 98,001 | | | | 1,481 | |
Japan — 18.1% | | | | | | | | |
| Air Water, Inc. | | | 153,400 | | | | 1,948 | |
| Aisin Seiki Co., Ltd. | | | 55,500 | | | | 1,755 | |
| Daito Trust Construction Co., Ltd. | | | 9,400 | | | | 833 | |
| DeNA Co., Ltd. | | | 26,300 | | | | 1,135 | |
| Fukuoka Financial Group, Inc. | | | 270,000 | | | | 1,045 | |
| Hitachi, Ltd. | | | 440,000 | | | | 2,358 | |
| Japan Petroleum Exploration Co. | | | 22,000 | | | | 869 | |
| Jupiter Telecommunications Co., Ltd. | | | 2,061 | | | | 2,011 | |
| Kintetsu World Express, Inc. | | | 55,000 | | | | 1,675 | |
| Komatsu, Ltd. | | | 39,800 | | | | 984 | |
| Kuraray Co., Ltd. | | | 62,000 | | | | 868 | |
| Mitsubishi Corp. | | | 96,800 | | | | 1,991 | |
| Nippon Telegraph & Telephone Corp. | | | 57,900 | | | | 2,970 | |
| USS Co., Ltd. | | | 25,300 | | | | 2,092 | |
Jersey, Channel Islands — 1.9% | | | | | | | | |
| WPP PLC | | | 235,100 | | | | 2,434 | |
Korea, Republic of — 2.3% | | | | | | | | |
| Kangwon Land, Inc. | | | 60,300 | | | | 1,608 | |
| SK Telecom Co., Ltd. | | | 9,500 | | | | 1,265 | |
Mexico — 0.7% | | | | | | | | |
| Grupo Mexico SAB de CV — Series B | | | 325,000 | | | | 901 | |
Netherlands — 3.4% | | | | | | | | |
| Binckbank NV | | | 110,546 | | | | 1,282 | |
| European Aeronautic Defence and Space Co., NV | | | 72,600 | | | | 2,140 | |
| Wolters Kluwer NV | | | 49,700 | | | | 877 | |
Singapore — 3.4% | | | | | | | | |
| Flextronics International, Ltd. ‡ | | | 154,000 | | | | 1,011 | |
| Fraser and Neave, Ltd. | | | 376,900 | | | | 1,836 | |
| Sia Engineering Co., Ltd. | | | 467,000 | | | | 1,365 | |
Spain — 1.0% | | | | | | | | |
| Amadeus IT Holding SA — Class A | | | 17,500 | | | | 330 | |
| Viscofan SA | | | 23,600 | | | | 906 | |
Sweden — 2.7% | | | | | | | | |
| Investor AB — Class B | | | 99,700 | | | | 1,950 | |
| Kinnevik Investment AB — Class B | | | 69,900 | | | | 1,461 | |
Switzerland — 7.6% | | | | | | | | |
| GAM Holding, Ltd. ‡ | | | 129,000 | | | | 1,542 | |
| Nestle SA | | | 34,000 | | | | 1,966 | |
| Noble Corp. ‡ | | | 35,000 | | | | 1,258 | |
| Novartis AG | | | 59,300 | | | | 3,341 | |
| Zurich Financial Services AG ‡ | | | 6,200 | | | | 1,430 | |
Thailand — 0.8% | | | | | | | | |
| Bangkok Bank PCL | | | 208,000 | | | | 1,002 | |
United Kingdom — 17.8% | | | | | | | | |
| Afren PLC ‡ | | | 247,600 | | | | 392 | |
| BHP Billiton PLC ADR | | | 18,300 | | | | 1,152 | |
| BP PLC ADR | | | 56,000 | | | | 2,474 | |
| Diageo PLC ADR | | | 18,325 | | | | 1,518 | |
| HSBC Holdings PLC | | | 217,624 | | | | 1,903 | |
| Imperial Tobacco Group PLC | | | 45,000 | | | | 1,639 | |
| Inmarsat PLC | | | 233,800 | | | | 1,764 | |
| Johnson Matthey PLC | | | 42,500 | | | | 1,278 | |
| Royal Dutch Shell PLC — Class A | | | 93,400 | | | | 3,309 | |
| Tesco PLC | | | 309,000 | | | | 1,992 | |
| Unilever PLC | | | 67,600 | | | | 2,267 | |
| Vodafone Group PLC | | | 1,001,600 | | | | 2,781 | |
| | | | | | | | |
Total Common Stocks (cost $125,407) | | | | | | | 122,152 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 1.5% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $1,882 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $1,920. | | $ | 1,882 | | | | 1,882 | |
Total Repurchase Agreement (cost $1,882) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $128,626) П | | | | | | | 125,222 | |
| Other Assets and Liabilities — Net | | | | | | | 432 | |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 125,654 | |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 67 | | Annual Report 2011 |
Transamerica TS&W International Equity
(formerly, TS&W International Equity)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Insurance | | | 7.0 | % | | $ | 8,793 | |
| Food Products | | | 7.0 | | | | 8,745 | |
| Oil, Gas & Consumable Fuels | | | 6.3 | | | | 7,948 | |
| Pharmaceuticals | | | 6.1 | | | | 7,607 | |
| Commercial Banks | | | 5.7 | | | | 7,193 | |
| Media | | | 5.7 | | | | 7,183 | |
| Diversified Telecommunication Services | | | 5.6 | | | | 6,985 | |
| Chemicals | | | 3.8 | | | | 4,759 | |
| Industrial Conglomerates | | | 3.3 | | | | 4,149 | |
| Wireless Telecommunication Services | | | 3.2 | | | | 4,046 | |
| Auto Components | | | 3.0 | | | | 3,790 | |
| Diversified Financial Services | | | 2.7 | | | | 3,411 | |
| Electronic Equipment & Instruments | | | 2.7 | | | | 3,369 | |
| Beverages | | | 2.4 | | | | 2,999 | |
| Capital Markets | | | 2.2 | | | | 2,730 | |
| Construction & Engineering | | | 2.0 | | | | 2,487 | |
| Hotels, Restaurants & Leisure | | | 1.8 | | | | 2,206 | |
| Aerospace & Defense | | | 1.7 | | | | 2,140 | |
| Specialty Retail | | | 1.7 | | | | 2,092 | |
| Metals & Mining | | | 1.6 | | | | 2,053 | |
| Airlines | | | 1.6 | | | | 2,011 | |
| Food & Staples Retailing | | | 1.6 | | | | 1,992 | |
| Trading Companies & Distributors | | | 1.6 | | | | 1,991 | |
| Machinery | | | 1.6 | | | | 1,953 | |
| Water Utilities | | | 1.5 | | | | 1,858 | |
| Gas Utilities | | | 1.4 | | | | 1,760 | |
| Air Freight & Logistics | | | 1.3 | | | | 1,676 | |
| Containers & Packaging | | | 1.3 | | | | 1,647 | |
| Tobacco | | | 1.3 | | | | 1,639 | |
| Textiles, Apparel & Luxury Goods | | | 1.2 | | | | 1,556 | |
| Electrical Equipment | | | 1.2 | | | | 1,482 | |
| IT Services | | | 1.2 | | | | 1,439 | |
| Transportation Infrastructure | | | 1.1 | | | | 1,365 | |
| Construction Materials | | | 1.0 | | | | 1,263 | |
| Energy Equipment & Services | | | 1.0 | | | | 1,258 | |
| Internet & Catalog Retail | | | 0.9 | | | | 1,135 | |
| Automobiles | | | 0.8 | | | | 973 | |
| Real Estate Management & Development | | | 0.7 | | | | 833 | |
| Life Sciences Tools & Services | | | 0. 7 | | | | 824 | |
| | | | | | | |
| Investment Securities, at Value | | | 98. 5 | | | | 123,340 | |
| Short-Term Investments | | | 1. 5 | | | | 1,882 | |
| | | | | | | |
| Total Investments | | | 100. 0 | % | | $ | 125,222 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| ‡ | | Non-income producing security. |
| |
| П | | Aggregate cost for federal income tax purposes is $129,458. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $7,641 and $11,877, respectively. Net unrealized depreciation for tax purposes is $4,236. |
DEFINITION:
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 7,798 | | | $ | 114,354 | | | $ | — | | | $ | 122,152 | |
| Preferred Stock | | | — | | | | 1,188 | | | | — | | | | 1,188 | |
| Repurchase Agreement | | | — | | | | 1,882 | | | | — | | | | 1,882 | |
| | | | |
Total | | $ | 7,798 | | | $ | 117,424 | | | $ | — | | | $ | 125,222 | |
| | | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 68 | | Annual Report 2011 |
Transamerica WMC Diversified Equity
(formerly, Transamerica Diversified Equity)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 99.6% | | | | | | | | |
Aerospace & Defense — 2.3% | | | | | | | | |
| Boeing Co. | | | 106,229 | | | $ | 6,989 | |
| Honeywell International, Inc. | | | 118,513 | | | | 6,210 | |
Biotechnology — 1.7% | | | | | | | | |
| Amgen, Inc. | | | 152,738 | | | | 8,747 | |
| Gilead Sciences, Inc. ‡ | | | 21,049 | | | | 877 | |
Chemicals — 0.5% | | | | | | | | |
| Sherwin-Williams Co. | | | 32,854 | | | | 2,717 | |
Communications Equipment — 6.7% | | | | | | | | |
| Cisco Systems, Inc. | | | 1,469,488 | | | | 27,229 | |
Emulex Corp. ‡ ^ | | | 322,660 | | | | 2,704 | |
| F5 Networks, Inc. ‡ | | | 15,041 | | | | 1,564 | |
| QUALCOMM, Inc. | | | 45,135 | | | | 2,329 | |
| Riverbed Technology, Inc. ‡ | | | 115,354 | | | | 3,181 | |
Computers & Peripherals — 13.4% | | | | | | | | |
| Apple, Inc. ‡ | | | 85,251 | | | | 34,509 | |
| Dell, Inc. ‡ | | | 308,885 | | | | 4,883 | |
| EMC Corp. ‡ | | | 699,108 | | | | 17,136 | |
| NetApp, Inc. ‡ | | | 196,929 | | | | 8,066 | |
| QLogic Corp. ‡ | | | 550,049 | | | | 7,684 | |
| SanDisk Corp. ‡ | | | 46,675 | | | | 2,365 | |
Consumer Finance — 0.9% | | | | | | | | |
| American Express Co. | | | 103,369 | | | | 5,233 | |
Diversified Consumer Services — 1.6% | | | | | | | | |
| Apollo Group, Inc. — Class A ‡ | | | 189,361 | | | | 8,966 | |
Energy Equipment & Services — 4.0% | | | | | | | | |
| Baker Hughes, Inc. | | | 51,308 | | | | 2,975 | |
| Cameron International Corp. ‡ | | | 89,958 | | | | 4,421 | |
| Core Laboratories NV | | | 34,023 | | | | 3,683 | |
| Diamond Offshore Drilling, Inc. ^ | | | 98,862 | | | | 6,479 | |
| Oceaneering International, Inc. | | | 124,518 | | | | 5,209 | |
Health Care Equipment & Supplies — 2.0% | | | | | | | | |
Edwards Lifesciences Corp. ‡ ^ | | | 762 | | | | 57 | |
| Hologic, Inc. ‡ | | | 283,494 | | | | 4,570 | |
Intuitive Surgical, Inc. ‡ ^ | | | 15,090 | | | | 6,547 | |
Health Care Providers & Services — 3.8% | | | | | | | | |
| AmerisourceBergen Corp. — Class A | | | 104,386 | | | | 4,259 | |
| Cardinal Health, Inc. | | | 111,027 | | | | 4,915 | |
| Laboratory Corp. of America Holdings ‡ | | | 33,532 | | | | 2,812 | |
| UnitedHealth Group, Inc. | | | 201,759 | | | | 9,682 | |
Hotels, Restaurants & Leisure — 1.1% | | | | | | | | |
| Starbucks Corp. | | | 141,671 | | | | 5,998 | |
Industrial Conglomerates — 1.9% | | | | | | | | |
| General Electric Co. | | | 444,567 | | | | 7,428 | |
| Tyco International, Ltd. | | | 67,745 | | | | 3,086 | |
Internet & Catalog Retail — 1.8% | | | | | | | | |
| Amazon.com, Inc. ‡ | | | 30,071 | | | | 6,421 | |
| priceline.com, Inc. ‡ | | | 7,629 | | | | 3,873 | |
Internet Software & Services — 5.3% | | | | | | | | |
| eBay, Inc. ‡ | | | 297,267 | | | | 9,462 | |
| Google, Inc. — Class A ‡ | | | 17,029 | | | | 10,091 | |
| IAC/InterActiveCorp ‡ ^ | | | 222,130 | | | | 9,070 | |
Sohu.com, Inc. ‡ ^ | | | 24,546 | | | | 1,483 | |
IT Services — 5.6% | | | | | | | | |
| Cognizant Technology Solutions Corp. — Class A ‡ | | | 38,068 | | | | 2,769 | |
| International Business Machines Corp. | | | 155,349 | | | | 28,683 | |
Life Sciences Tools & Services — 2.6% | | | | | | | | |
Bruker Corp. ‡ ^ | | | 262,026 | | | | 3,781 | |
| Life Technologies Corp. ‡ | | | 49,376 | | | | 2,008 | |
Waters Corp. ‡ ^ | | | 112,008 | | | | 8,974 | |
Machinery — 5.9% | | | | | | | | |
| Caterpillar, Inc. | | | 125,302 | | | | 11,836 | |
| Cummins, Inc. | | | 38,263 | | | | 3,804 | |
| Dover Corp. ^ | | | 58,662 | | | | 3,258 | |
| Joy Global, Inc. | | | 65,124 | | | | 5,679 | |
| Parker Hannifin Corp. | | | 107,840 | | | | 8,794 | |
Media — 3.6% | | | | | | | | |
| DIRECTV — Class A ‡ | | | 81,728 | | | | 3,715 | |
| News Corp. — Class A | | | 283,687 | | | | 4,970 | |
| Omnicom Group, Inc. | | | 178,881 | | | | 7,958 | |
Sirius XM Radio, Inc. ‡^ | | | 2,172,294 | | | | 3,888 | |
Metals & Mining — 2.9% | | | | | | | | |
| Cliffs Natural Resources, Inc. | | | 59,388 | | | | 4,051 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 91,678 | | | | 3,691 | |
| Rio Tinto PLC ADR ^ | | | 45,094 | | | | 2,438 | |
| Teck Resources, Ltd. — Class B | | | 93,089 | | | | 3,733 | |
| Walter Energy, Inc. | | | 34,236 | | | | 2,590 | |
Oil, Gas & Consumable Fuels — 5.8% | | | | | | | | |
| Anadarko Petroleum Corp. | | | 44,051 | | | | 3,458 | |
| Canadian Natural Resources, Ltd. | | | 80,909 | | | | 2,860 | |
| Exxon Mobil Corp. | | | 156,981 | | | | 12,259 | |
| Occidental Petroleum Corp. | | | 72,900 | | | | 6,775 | |
| Valero Energy Corp. | | | 299,012 | | | | 7,356 | |
Pharmaceuticals — 0.8% | | | | | | | | |
| Abbott Laboratories | | | 88,681 | | | | 4,777 | |
Semiconductors & Semiconductor Equipment — 5.9% | | | | | | | | |
| Altera Corp. | | | 437,246 | | | | 16,581 | |
| Analog Devices, Inc. | | | 152,566 | | | | 5,579 | |
| Intersil Corp. — Class A ^ | | | 339,241 | | | | 4,061 | |
| Xilinx, Inc. ^ | | | 207,749 | | | | 6,951 | |
Software — 12.5% | | | | | | | | |
| Adobe Systems, Inc. ‡ | | | 151,624 | | | | 4,459 | |
| Autodesk, Inc. ‡ | | | 142,760 | | | | 4,939 | |
| BMC Software, Inc. ‡ | | | 95,658 | | | | 3,325 | |
| Check Point Software Technologies, Ltd. ‡ | | | 98,286 | | | | 5,664 | |
| Citrix Systems, Inc. ‡ | | | 63,233 | | | | 4,605 | |
| Microsoft Corp. | | | 757,339 | | | | 20,169 | |
| Oracle Corp. | | | 641,998 | | | | 21,039 | |
| Red Hat, Inc. ‡ | | | 89,903 | | | | 4,464 | |
| Symantec Corp. ‡ | | | 82,979 | | | | 1,411 | |
Specialty Retail — 3.7% | | | | | | | | |
| Bed Bath & Beyond, Inc. ‡ | | | 57,168 | | | | 3,535 | |
| Buckle, Inc. ^ | | | 84,609 | | | | 3,770 | |
| PetSmart, Inc. | | | 58,982 | | | | 2,769 | |
| Ross Stores, Inc. | | | 65,507 | | | | 5,748 | |
| TJX Cos., Inc. | | | 88,773 | | | | 5,231 | |
Textiles, Apparel & Luxury Goods — 2.6% | | | | | | | | |
| Coach, Inc. | | | 81,223 | | | | 5,284 | |
Deckers Outdoor Corp. ‡^ | | | 16,345 | | | | 1,884 | |
Fossil, Inc. ‡^ | | | 13,580 | | | | 1,408 | |
Lululemon Athletica, Inc. ‡^ | | | 40,207 | | | | 2,271 | |
| Ralph Lauren Corp. — Class A | | | 24,898 | | | | 3,954 | |
Wireless Telecommunication Services — 0.7% | | | | | | | | |
| Vodafone Group PLC ADR | | | 134,419 | | | | 3,742 | |
Total Common Stocks (cost $528,439) | | | | | | | 560,858 | |
| |
SECURITIES LENDING COLLATERAL — 7.5% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 42,107,528 | | | | 42,108 | |
Total Securities Lending Collateral (cost $42,108) | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 69 | | Annual Report 2011 |
Transamerica WMC Diversified Equity
(formerly, Transamerica Diversified Equity)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 1.7% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $9,546 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $9,740. | | $ | 9,546 | | | $ | 9,546 | |
Total Repurchase Agreement (cost $9,546) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $580,093) П | | | | | | | 612,512 | |
| Other Assets and Liabilities — Net | | | | | | | (49,426 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 563,086 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $41,181. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $586,306. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $57,467 and $31,261, respectively. Net unrealized appreciation for tax purposes is $26,206. |
DEFINITION:
ADR American Depositary Receipt
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 542,245 | | | $ | 18,613 | | | $ | — | | | $ | 560,858 | |
| Repurchase Agreement | | | — | | | | 9,546 | | | | — | | | | 9,546 | |
| Securities Lending Collateral | | | 42,108 | | | | — | | | | — | | | | 42,108 | |
Total | | $ | 584,353 | | | $ | 28,159 | | | $ | — | | | $ | 612,512 | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | Appreciation/ | |
| | | Beginning | | | | | | | | | | | Accrued | | | | | | | Unrealized | | | | | | | Transfers | | | Ending | | | (Depreciation) on | |
| | | Balance at | | | | | | | | | | | Discounts/ | | | Total Realized | | | Appreciation | | | Transfers | | | out of | | | Balance at | | | Investments Held | |
| Securities | | 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | /(Depreciation) ƒ | | | into Level 3 | | | Level 3 | | | 10/31/2011 | | | at 10/31/2011 ƒ | |
| Corporate Debt Securities | | $ | 1 | | | $ | — | | | $ | (8 | ) | | $ | — | | | $ | (♦ | ) | | $ | 7 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ¦ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 70 | | Annual Report 2011 |
Transamerica WMC Diversified Growth
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 100.2% | | | | | | | | |
Aerospace & Defense — 2.3% | | | | | | | | |
| Boeing Co. | | | 205,486 | | | $ | 13,519 | |
| Honeywell International, Inc. | | | 228,805 | | | | 11,989 | |
Biotechnology — 1.7% | | | | | | | | |
| Amgen, Inc. | | | 297,057 | | | | 17,013 | |
| Gilead Sciences, Inc. ‡ | | | 40,358 | | | | 1,681 | |
Chemicals — 0.4% | | | | | | | | |
| Sherwin-Williams Co. | | | 57,800 | | | | 4,781 | |
Communications Equipment — 7.9% | | | | | | | | |
| Cisco Systems, Inc. | | | 3,121,928 | | | | 57,850 | |
Emulex Corp. ‡ ^ | | | 677,799 | | | | 5,680 | |
| F5 Networks, Inc. ‡ | | | 29,314 | | | | 3,047 | |
| QUALCOMM, Inc. | | | 266,325 | | | | 13,742 | |
Riverbed Technology, Inc. ‡ ^ | | | 182,299 | | | | 5,028 | |
Computers & Peripherals — 13.1% | | | | | | | | |
| Apple, Inc. ‡ | | | 168,615 | | | | 68,252 | |
| Dell, Inc. ‡ | | | 809,936 | | | | 12,805 | |
| EMC Corp. ‡ | | | 1,502,012 | | | | 36,814 | |
| NetApp, Inc. ‡ | | | 235,834 | | | | 9,660 | |
QLogic Corp. ‡ ^ | | | 703,678 | | | | 9,830 | |
| SanDisk Corp. ‡ | | | 89,120 | | | | 4,516 | |
Consumer Finance — 1.0% | | | | | | | | |
| American Express Co. | | | 218,684 | | | | 11,070 | |
Diversified Consumer Services — 2.0% | | | | | | | | |
| Apollo Group, Inc. — Class A ‡ | | | 244,740 | | | | 11,588 | |
ITT Educational Services, Inc. ‡ ^ | | | 171,625 | | | | 10,634 | |
Energy Equipment & Services — 3.8% | | | | | | | | |
| Baker Hughes, Inc. | | | 84,956 | | | | 4,927 | |
| Cameron International Corp. ‡ | | | 157,613 | | | | 7,745 | |
| Core Laboratories NV ^ | | | 69,706 | | | | 7,546 | |
| Diamond Offshore Drilling, Inc. ^ | | | 207,744 | | | | 13,616 | |
| Oceaneering International, Inc. ^ | | | 180,668 | | | | 7,557 | |
Health Care Equipment & Supplies — 2.1% | | | | | | | | |
| Edwards Lifesciences Corp. ‡ | | | 40,007 | | | | 3,017 | |
| Hologic, Inc. ‡ | | | 464,912 | | | | 7,494 | |
| Intuitive Surgical, Inc. ‡ | | | 28,429 | | | | 12,335 | |
Health Care Providers & Services — 3.6% | | | | | | | | |
| AmerisourceBergen Corp. — Class A | | | 194,002 | | | | 7,915 | |
| Cardinal Health, Inc. | | | 194,398 | | | | 8,606 | |
| Laboratory Corp. of America Holdings ‡ | | | 49,612 | | | | 4,160 | |
| UnitedHealth Group, Inc. | | | 395,829 | | | | 18,996 | |
Hotels, Restaurants & Leisure — 0.9% | | | | | | | | |
| Starbucks Corp. | | | 237,497 | | | | 10,056 | |
Industrial Conglomerates — 1.7% | | | | | | | | |
| General Electric Co. | | | 772,584 | | | | 12,910 | |
| Tyco International, Ltd. | | | 133,590 | | | | 6,085 | |
Internet & Catalog Retail — 2.2% | | | | | | | | |
| Amazon.com, Inc. ‡ | | | 56,394 | | | | 12,041 | |
| priceline.com, Inc. ‡ | | | 22,850 | | | | 11,601 | |
Internet Software & Services — 4.7% | | | | | | | | |
eBay, Inc. ‡ ^ | | | 464,361 | | | | 14,781 | |
| Google, Inc. — Class A ‡ | | | 32,068 | | | | 19,004 | |
| IAC/InterActiveCorp ‡ ^ | | | 356,286 | | | | 14,547 | |
| Sohu.com, Inc. ‡ | | | 49,647 | | | | 2,999 | |
IT Services — 5.6% | | | | | | | | |
| Cognizant Technology Solutions Corp. — Class A ‡ | | | 85,211 | | | | 6,199 | |
| International Business Machines Corp. | | | 295,856 | | | | 54,624 | |
Life Sciences Tools & Services — 2.3% | | | | | | | | |
Bruker Corp. ‡ ^ | | | 339,334 | | | | 4,897 | |
| Life Technologies Corp. ‡ | | | 94,700 | | | | 3,851 | |
Waters Corp. ‡ ^ | | | 210,361 | | | | 16,854 | |
Machinery — 5.8% | | | | | | | | |
| Caterpillar, Inc. | | | 233,934 | | | | 22,097 | |
| Cummins, Inc. | | | 63,891 | | | | 6,353 | |
| Dover Corp. | | | 113,737 | | | | 6,316 | |
| Joy Global, Inc. | | | 133,739 | | | | 11,662 | |
| Parker Hannifin Corp. | | | 206,327 | | | | 16,826 | |
Media — 3.5% | | | | | | | | |
| DIRECTV — Class A ‡ | | | 171,055 | | | | 7,776 | |
| News Corp. — Class A | | | 539,573 | | | | 9,453 | |
| Omnicom Group, Inc. ^ | | | 357,307 | | | | 15,894 | |
| Sirius XM Radio, Inc. ‡ ^ | | | 2,926,533 | | | | 5,238 | |
Metals & Mining — 3.0% | | | | | | | | |
| Cliffs Natural Resources, Inc. | | | 100,482 | | | | 6,855 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 214,797 | | | | 8,647 | |
| Rio Tinto PLC ADR ^ | | | 101,718 | | | | 5,499 | |
| Teck Resources, Ltd. — Class B | | | 165,614 | | | | 6,641 | |
| Walter Energy, Inc. | | | 74,112 | | | | 5,607 | |
Oil, Gas & Consumable Fuels — 6.1% | | | | | | | | |
| Anadarko Petroleum Corp. | | | 79,795 | | | | 6,264 | |
| Canadian Natural Resources, Ltd. | | | 150,700 | | | | 5,327 | |
| Exxon Mobil Corp. | | | 316,288 | | | | 24,699 | |
| Occidental Petroleum Corp. | | | 143,783 | | | | 13,363 | |
| Valero Energy Corp. | | | 680,192 | | | | 16,733 | |
Pharmaceuticals — 0.7% | | | | | | | | |
| Abbott Laboratories | | | 151,157 | | | | 8,143 | |
Semiconductors & Semiconductor Equipment — 6.5% | | | | | | | | |
| Altera Corp. | | | 911,330 | | | | 34,558 | |
| Analog Devices, Inc. | | | 298,937 | | | | 10,932 | |
| Intersil Corp. — Class A ^ | | | 940,857 | | | | 11,262 | |
| Xilinx, Inc. ^ | | | 435,109 | | | | 14,559 | |
Software — 12.3% | | | | | | | | |
| Adobe Systems, Inc. ‡ | | | 271,005 | | | | 7,970 | |
| Autodesk, Inc. ‡ | | | 268,146 | | | | 9,278 | |
| BMC Software, Inc. ‡ | | | 184,217 | | | | 6,403 | |
| Check Point Software Technologies, Ltd. ‡ | | | 184,324 | | | | 10,623 | |
| Citrix Systems, Inc. ‡ | | | 121,032 | | | | 8,815 | |
| Microsoft Corp. | | | 1,541,549 | | | | 41,052 | |
| Oracle Corp. | | | 1,169,953 | | | | 38,339 | |
| Red Hat, Inc. ‡ | | | 159,483 | | | | 7,918 | |
| Symantec Corp. ‡ | | | 162,981 | | | | 2,772 | |
Specialty Retail — 3.6% | | | | | | | | |
| Bed Bath & Beyond, Inc. ‡ | | | 118,736 | | | | 7,343 | |
| Buckle, Inc. ^ | | | 115,074 | | | | 5,128 | |
| PetSmart, Inc. ^ | | | 107,036 | | | | 5,025 | |
| Ross Stores, Inc. | | | 135,642 | | | | 11,900 | |
| TJX Cos., Inc. | | | 165,468 | | | | 9,751 | |
Textiles, Apparel & Luxury Goods — 2.8% | | | | | | | | |
| Coach, Inc. | | | 143,354 | | | | 9,328 | |
| Deckers Outdoor Corp. ‡ ^ | | | 69,370 | | | | 7,994 | |
| Fossil, Inc. ‡ ^ | | | 13,261 | | | | 1,375 | |
| Lululemon Athletica, Inc. ‡ ^ | | | 58,851 | | | | 3,324 | |
| Ralph Lauren Corp. — Class A | | | 52,429 | | | | 8,325 | |
Wireless Telecommunication Services — 0.6% | | | | | | | | |
| Vodafone Group PLC ADR | | | 218,000 | | | | 6,069 | |
| | | | | | | | |
Total Common Stocks (cost $948,518) | | | | | | | 1,093,298 | |
| | | | | | | | |
| |
SECURITIES LENDING COLLATERAL — 6.2% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 68,028,267 | | | | 68,028 | |
Total Securities Lending Collateral (cost $68,028) | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 71 | | Annual Report 2011 |
Transamerica WMC Diversified Growth
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT - 1.2% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $12,979 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $13,239. | | $ | 12,979 | | | $ | 12,979 | |
Total Repurchase Agreement (cost $12,979) | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
| Total Investment Securities (cost $1,029,525) П | | | | | | | 1,174,305 | |
| Other Assets and Liabilities — Net | | | | | | | (82,520 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 1,091,785 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $66,290. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $1,043,564. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $173,549 and $42,808, respectively. Net unrealized appreciation for tax purposes is $130,741. |
DEFINITION:
ADR American Depositary Receipt
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 1,057,476 | | | $ | 35,822 | | | $ | — | | | $ | 1,093,298 | |
| Repurchase Agreement | | | — | | | | 12,979 | | | | — | | | | 12,979 | |
| Securities Lending Collateral | | | 68,028 | | | | — | | | | — | | | | 68,028 | |
Total | | $ | 1,125,504 | | | $ | 48,801 | | | $ | — | | | $ | 1,174,305 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 72 | | Annual Report 2011 |
Transamerica WMC Quality Value
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 97.6% | | | | | | | | |
Aerospace & Defense — 2.6% | | | | | | | | |
| General Dynamics Corp. | | | 209,100 | | | $ | 13,422 | |
| Honeywell International, Inc. | | | 270,580 | | | | 14,179 | |
| Northrop Grumman Corp. | | | 123,400 | | | | 7,126 | |
Air Freight & Logistics — 1.5% | | | | | | | | |
| United Parcel Service, Inc. — Class B | | | 282,400 | | | | 19,836 | |
Auto Components — 0.5% | | | | | | | | |
| Johnson Controls, Inc. | | | 204,400 | | | | 6,731 | |
Beverages — 1.4% | | | | | | | | |
| PepsiCo, Inc. | | | 298,625 | | | | 18,798 | |
Capital Markets — 4.0% | | | | | | | | |
| Ameriprise Financial, Inc. | | | 290,300 | | | | 13,551 | |
| BlackRock, Inc. — Class A | | | 68,955 | | | | 10,880 | |
| Goldman Sachs Group, Inc. | | | 158,890 | | | | 17,407 | |
| Invesco, Ltd. | | | 579,790 | | | | 11,636 | |
Chemicals — 1.6% | | | | | | | | |
| Dow Chemical Co. | | | 511,600 | | | | 14,264 | |
| Praxair, Inc. | | | 76,200 | | | | 7,747 | |
Commercial Banks — 7.4% | | | | | | | | |
| BB&T Corp. | | | 697,800 | | | | 16,287 | |
| M&T Bank Corp. | | | 122,900 | | | | 9,354 | |
| PNC Financial Services Group, Inc. | | | 312,300 | | | | 16,774 | |
| U.S. Bancorp | | | 689,700 | | | | 17,649 | |
| Wells Fargo & Co. | | | 1,512,130 | | | | 39,179 | |
Commercial Services & Supplies — 1.5% | | | | | | | | |
| Avery Dennison Corp. | | | 286,720 | | | | 7,627 | |
| Waste Management, Inc. | | | 360,300 | | | | 11,864 | |
Communications Equipment — 1.9% | | | | | | | | |
| Cisco Systems, Inc. | | | 802,670 | | | | 14,873 | |
| QUALCOMM, Inc. | | | 201,800 | | | | 10,413 | |
Containers & Packaging — 0.7% | | | | | | | | |
| Owens-Illinois, Inc. ‡ | | | 433,700 | | | | 8,709 | |
Diversified Financial Services — 3.8% | | | | | | | | |
| Bank of America Corp. | | | 2,208,300 | | | | 15,083 | |
| JPMorgan Chase & Co. | | | 1,044,890 | | | | 36,320 | |
Diversified Telecommunication Services — 3.3% | | | | | | | | |
| AT&T, Inc. | | | 1,516,000 | | | | 44,434 | |
Electric Utilities — 1.6% | | | | | | | | |
| Exelon Corp. | | | 477,700 | | | | 21,205 | |
Electrical Equipment — 1.1% | | | | | | | | |
| Cooper Industries PLC — Class A | | | 281,400 | | | | 14,762 | |
Energy Equipment & Services — 1.2% | | | | | | | | |
| Baker Hughes, Inc. | | | 284,300 | | | | 16,487 | |
Food & Staples Retailing — 1.3% | | | | | | | | |
| CVS Caremark Corp. | | | 465,100 | | | | 16,883 | |
Food Products — 1.3% | | | | | | | | |
| Unilever NV | | | 490,280 | | | | 16,929 | |
Health Care Equipment & Supplies — 1.7% | | | | | | | | |
| Covidien PLC | | | 140,300 | | | | 6,600 | |
| Medtronic, Inc. | | | 446,800 | | | | 15,522 | |
Health Care Providers & Services — 1.3% | | | | | | | | |
| Cardinal Health, Inc. | | | 400,400 | | | | 17,726 | |
Household Products — 3.3% | | | | | | | | |
| Colgate-Palmolive Co. | | | 174,785 | | | | 15,795 | |
| Procter & Gamble Co. | | | 442,090 | | | | 28,290 | |
Industrial Conglomerates — 2.8% | | | | | | | | |
| General Electric Co. | | | 1,564,800 | | | | 26,148 | |
| Siemens AG ADR | | | 109,700 | | | | 11,515 | |
Insurance — 6.0% | | | | | | | | |
| ACE, Ltd. | | | 280,900 | | | | 20,267 | |
| Chubb Corp. | | | 296,900 | | | | 19,907 | |
| Hartford Financial Services Group, Inc. | | | 371,000 | | | | 7,142 | |
| MetLife, Inc. | | | 596,530 | | | | 20,974 | |
| RenaissanceRe Holdings, Ltd. | | | 181,500 | | | | 12,364 | |
Internet Software & Services — 0.9% | | | | | | | | |
| eBay, Inc. ‡ | | | 362,150 | | | | 11,527 | |
IT Services — 3.2% | | | | | | | | |
| Accenture PLC — Class A | | | 200,900 | | | | 12,106 | |
| Automatic Data Processing, Inc. | | | 211,100 | | | | 11,047 | |
| International Business Machines Corp. | | | 107,310 | | | | 19,813 | |
Leisure Equipment & Products — 1.1% | | | | | | | | |
| Mattel, Inc. | | | 510,400 | | | | 14,414 | |
Machinery — 2.6% | | | | | | | | |
| Caterpillar, Inc. | | | 60,300 | | | | 5,696 | |
| Deere & Co. | | | 192,500 | | | | 14,611 | |
| Eaton Corp. | | | 221,700 | | | | 9,937 | |
| Pentair, Inc. | | | 132,500 | | | | 4,763 | |
Media — 3.2% | | | | | | | | |
| Comcast Corp. — Class A | | | 1,072,600 | | | | 25,153 | |
| Omnicom Group, Inc. | | | 162,460 | | | | 7,226 | |
| Walt Disney Co. | | | 314,800 | | | | 10,980 | |
Metals & Mining — 1.1% | | | | | | | | |
| Barrick Gold Corp. | | | 160,800 | | | | 7,960 | |
| Compass Minerals International, Inc. | | | 88,800 | | | | 6,755 | |
Multiline Retail — 1.4% | | | | | | | | |
| Target Corp. | | | 344,500 | | | | 18,861 | |
Multi-Utilities — 4.5% | | | | | | | | |
| Dominion Resources, Inc. | | | 322,000 | | | | 16,612 | |
| PG&E Corp. | | | 507,700 | | | | 21,781 | |
| Xcel Energy, Inc. | | | 841,324 | | | | 21,748 | |
Oil, Gas & Consumable Fuels — 12.9% | | | | | | | | |
| Anadarko Petroleum Corp. | | | 284,400 | | | | 22,325 | |
| Chevron Corp. | | | 526,800 | | | | 55,340 | |
| Exxon Mobil Corp. | | | 493,100 | | | | 38,506 | |
| Occidental Petroleum Corp. | | | 311,400 | | | | 28,942 | |
| Petroleo Brasileiro SA ADR | | | 543,700 | | | | 14,685 | |
| Ultra Petroleum Corp. ‡ | | | 351,700 | | | | 11,205 | |
Pharmaceuticals — 9.9% | | | | | | | | |
| Eli Lilly & Co. | | | 311,450 | | | | 11,573 | |
| Johnson & Johnson | | | 406,000 | | | | 26,142 | |
| Merck & Co., Inc. | | | 1,178,900 | | | | 40,672 | |
| Pfizer, Inc. | | | 2,224,200 | | | | 42,839 | |
| Teva Pharmaceutical Industries, Ltd. ADR | | | 292,700 | | | | 11,957 | |
Semiconductors & Semiconductor Equipment — 1.1% | | | | | | | | |
| Intel Corp. | | | 603,150 | | | | 14,801 | |
Software — 1.1% | | | | | | | | |
| Microsoft Corp. | | | 568,400 | | | | 15,136 | |
Specialty Retail — 1.7% | | | | | | | | |
| Lowe’s Cos., Inc. | | | 634,100 | | | | 13,329 | |
| Staples, Inc. | | | 656,000 | | | | 9,814 | |
Tobacco — 1.1% | | | | | | | | |
| Philip Morris International, Inc. | | | 218,125 | | | | 15,240 | |
| | | | | | | | |
Total Common Stocks (cost $1,303,732) | | | | | | | 1,306,155 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 4.2% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $56,721 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 3.50% — 4.00%, due 06/15/2040 - 11/15/2040, with a value of $57,860. | | $ | 56,721 | | | | 56,721 | |
Total Repurchase Agreement (cost $56,721) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $1,360,453) П | | | | | | | 1,362,876 | |
| Other Assets and Liabilities — Net | | | | | | | (23,780 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 1,339,096 | |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 73 | | Annual Report 2011 |
Transamerica WMC Quality Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $1,363,032. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $67,570 and $67,726, respectively. Net unrealized depreciation for tax purposes is $156. |
DEFINITION:
| | | |
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 -Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 1,212,019 | | | $ | 94,136 | | | $ | — | | | $ | 1,306,155 | |
| Repurchase Agreement | | | — | | | | 56,721 | | | | — | | | | 56,721 | |
Total | | $ | 1,212,019 | | | $ | 150,857 | | | $ | — | | | $ | 1,362,876 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 74 | | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | | | | | Transamerica | | | Transamerica | | | Transamerica Logan | | | Transamerica | |
| | | AEGON Flexible | | | Transamerica AEGON | | | AEGON Money | | | AEGON Short- | | | Circle Emerging | | | Morgan Stanley | |
| | | Income(A) | | | High Yield Bond | | | Market (B) | | | Term Bond(C) | | | Markets Debt | | | Capital Growth(D) | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 277,752 | | | $ | 867,111 | | | $ | 191,856 | | | $ | 2,887,007 | | | $ | 101,125 | | | $ | 610,040 | |
| Repurchase agreements, at value | | | 4,503 | | | | 70,695 | | | | 17,280 | | | | 64,718 | | | | 1,679 | | | | 86,854 | |
| Cash | | | — | | | | — | | | | — | | | | 3,894 | | | | — | | | | — | |
| Cash on deposit with broker | | | — | | | | — | | | | — | | | | 900 | | | | — | | | | — | |
| Foreign currency, at value | | | — | | | | — | | | | — | | | | — | | | | 139 | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | — | | | | 1,145 | | | | — | | | | 12,222 | | | | 4,271 | | | | 6,387 | |
| Shares of beneficial interest sold | | | 451 | | | | 7,023 | | | | 727 | | | | 7,343 | | | | 257 | | | | 590 | |
| Interest | | | 4,124 | | | | 14,760 | | | | 135 | | | | 31,547 | | | | 1,784 | | | | — | (E) |
| Securities lending income (net) | | | 11 | | | | 39 | | | | — | | | | 36 | | | | — | | | | 16 | |
| Dividends | | | 139 | | | | 184 | | | | — | | | | — | | | | — | | | | 123 | |
| Money market waiver | | | — | | | | — | | | | 75 | | | | — | | | | — | | | | — | |
| Due from advisor | | | — | | | | — | | | | 42 | | | | — | | | | — | | | | — | |
| Prepaid expenses | | | — | | | | 1 | | | | — | | | | 5 | | | | — | | | | — | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | — | | | | 182 | | | | — | |
| | | | |
| | | $ | 286,980 | | | $ | 960,958 | | | $ | 210,115 | | | $ | 3,007,672 | | | $ | 109,437 | | | $ | 704,010 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | — | | | | 24,369 | | | | — | | | | 33,836 | | | | 8,542 | | | | 73,607 | |
| Shares of beneficial interest redeemed | | | 501 | | | | 1,564 | | | | 1,043 | | | | 5,268 | | | | 12 | | | | 219 | |
| Management and advisory fees | | | 100 | | | | 296 | | | | — | | | | 1,116 | | | | 28 | | | | 226 | |
| Distribution and service fees | | | 61 | | | | 101 | | | | 122 | | | | 884 | | | | 1 | | | | 52 | |
| Trustees fees | | | 1 | | | | 2 | | | | 1 | | | | 11 | | | | — | (E) | | | 1 | |
| Transfer agent fees | | | 16 | | | | 45 | | | | 55 | | | | 109 | | | | 1 | | | | 51 | |
| Administration fees | | | 4 | | | | 11 | | | | 4 | | | | 48 | | | | 2 | | | | 6 | |
| Distribution payable | | | — | | | | — | | | | 1 | | | | 4,342 | | | | — | | | | — | |
| Other | | | 50 | | | | 91 | | | | 49 | | | | 246 | | | | 91 | | | | 59 | |
| Collateral for securities on loan | | | 34,430 | | | | 156,717 | | | | — | | | | 140,723 | | | | — | | | | 53,900 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | — | | | | 191 | | | | — | |
| | | | |
| | | | 35,163 | | | | 183,196 | | | | 1,275 | | | | 186,583 | | | | 8,868 | | | | 128,121 | |
| | | | |
Net assets | | $ | 251,817 | | | $ | 777,762 | | | $ | 208,840 | | | $ | 2,821,089 | | | $ | 100,569 | | | $ | 575,889 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 325,557 | | | $ | 803,536 | | | $ | 208,840 | | | $ | 2,790,194 | | | $ | 100,299 | | | $ | 526,609 | |
| Undistributed (accumulated) net investment income (loss) | | | 876 | | | | 2,568 | | | | — | | | | (2,420 | ) | | | 1,010 | | | | — | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | (81,469 | ) | | | (24,556 | ) | | | — | | | | 20,216 | | | | (117 | ) | | | 24,625 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 6,863 | | | | (3,786 | ) | | | — | | | | 13,123 | | | | (630 | ) | | | 24,626 | |
| Translation of assets and liabilities denominated in foreign currencies | | | (10 | ) | | | — | | | | — | | | | (24 | ) | | | 7 | | | | 29 | |
| | | | |
Net assets | | $ | 251,817 | | | $ | 777,762 | | | $ | 208,840 | | | $ | 2,821,089 | | | $ | 100,569 | | | $ | 575,889 | |
| | | |
Net assets by class: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 65,393 | | | $ | 228,920 | | | $ | 112,490 | | | $ | 779,041 | | | $ | 2,247 | | | $ | 66,058 | |
| Class B | | | 7,066 | | | | 9,431 | | | | 15,318 | | | | | | | | | | | | 7,786 | |
| Class C | | | 50,314 | | | | 48,789 | | | | 36,078 | | | | 846,464 | | | | 1,025 | | | | 16,252 | |
| Class I | | | 19,992 | | | | 82,736 | | | | 55 | | | | 270,667 | | | | 2,064 | | | | 11,767 | |
| Class I2 | | | 109,052 | | | | 388,633 | | | | 17,612 | | | | 924,917 | | | | 95,233 | | | | 407,302 | |
| Class P | | | | | | | 19,253 | | | | 27,287 | | | | | | | | | | | | 66,724 | |
Shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 7,403 | | | | 25,572 | | | | 112,490 | | | | 75,441 | | | | 225 | | | | 4,271 | |
| Class B | | | 800 | | | | 1,054 | | | | 15,318 | | | | | | | | | | | | 548 | |
| Class C | | | 5,726 | | | | 5,470 | | | | 36,074 | | | | 82,125 | | | | 103 | | | | 1,144 | |
| Class I | | | 2,259 | | | | 9,192 | | | | 55 | | | | 26,663 | | | | 206 | | | | 752 | |
| Class I2 | | | 12,314 | | | | 43,084 | | | | 17,611 | | | | 91,178 | | | | 9,515 | | | | 37,153 | |
| Class P | | | | | | | 2,150 | | | | 27,287 | | | | | | | | | | | | 4,302 | |
Net asset value per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 8.83 | | | $ | 8.95 | | | $ | 1.00 | | | $ | 10.33 | | | $ | 10.00 | | | $ | 15.47 | |
| Class B | | | 8.83 | | | | 8.95 | | | | 1.00 | | | | | | | | | | | | 14.22 | |
| Class C | | | 8.79 | | | | 8.92 | | | | 1.00 | | | | 10.31 | | | | 9.99 | | | | 14.20 | |
| Class I | | | 8.85 | | | | 9.00 | | | | 1.00 | | | | 10.15 | | | | 10.01 | | | | 15.66 | |
| Class I2 | | | 8.86 | | | | 9.02 | | | | 1.00 | | | | 10.14 | | | | 10.01 | | | | 10.96 | |
| Class P | | | | | | | 8.96 | | | | 1.00 | | | | | | | | | | | | 15.51 | |
Maximum offering price per share (F) | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 9.27 | | | $ | 9.40 | | | $ | 1.00 | | | $ | 10.59 | | | $ | 10.50 | | | $ | 16.37 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Investment securities, at cost | | $ | 270,889 | | | $ | 870,897 | | | $ | 191,856 | | | $ | 2,873,884 | | | $ | 101,755 | | | $ | 585,414 | |
| | | | |
Repurchase agreement, at cost | | $ | 4,503 | | | $ | 70,695 | | | $ | 17,280 | | | $ | 64,718 | | | $ | 1,679 | | | $ | 86,854 | |
| | | | |
Foreign currency, at cost | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 139 | | | $ | — | |
| | | | |
Securities loaned, at value | | $ | 33,731 | | | $ | 153,365 | | | $ | — | | | $ | 133,764 | | | $ | — | | | $ | 52,684 | |
| | | | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 75 | | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | | | | Transamerica | | | Transamerica | | | | | | | |
| | | Morgan Stanley | | | Transamerica | | | Systematic | | | TS&W | | | Transamerica | | | Transamerica | |
| | | Growth | | | Multi-Managed | | | Small/Mid Cap | | | International | | | WMC Diversified | | | WMC Diversified | |
| | | Opportunities(G) | | | Balanced(H) | | | Value(I) | | | Equity(K) | | | Equity(J) | | | Growth | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 413,966 | | | $ | 342,116 | | | $ | 688,345 | | | $ | 123,340 | | | $ | 602,966 | | | $ | 1,161,326 | |
| Repurchase agreement, at value | | | 8,369 | | | | 21,427 | | | | 16,700 | | | | 1,882 | | | | 9,546 | | | | 12,979 | |
| Cash on deposit with broker | | | — | | | | 48 | | | | — | | | | — | | | | — | | | | — | |
| Foreign currency, at value | | | — | | | | — | | | | — | | | | 47 | | | | — | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 464 | | | | 29,319 | | | | 11,151 | | | | 533 | | | | 1,104 | | | | 2,117 | |
| Shares of beneficial interest sold | | | 466 | | | | 3,264 | | | | 3,102 | | | | 26 | | | | 83 | | | | 62 | |
| Interest | | | — | (E) | | | 984 | | | | — | (E) | | | — | (E) | | | — | (E) | | | — | (E) |
| Securities lending income (net) | | | 87 | | | | — | | | | 17 | | | | — | | | | 12 | | | | 31 | |
| Dividends | | | 78 | | | | 267 | | | | 286 | | | | 310 | | | | 297 | | | | 564 | |
| Dividend reclaims | | | — | | | | 2 | | | | — | | | | 156 | | | | 93 | | | | 479 | |
| Variation margin | | | — | | | | 45 | | | | — | | | | — | | | | — | | | | — | |
| Prepaid expenses | | | 1 | | | | 1 | | | | 1 | | | | — | | | | 2 | | | | 2 | |
| | | | |
| | | $ | 423,431 | | | $ | 397,473 | | | $ | 719,602 | | | $ | 126,294 | | | $ | 614,103 | | | $ | 1,177,560 | |
| | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | — | | | | 45,793 | | | | 3,937 | | | | 380 | | | | 7,748 | | | | 14,848 | |
| Shares of beneficial interest redeemed | | | 278 | | | | 399 | | | | 1,842 | | | | 106 | | | | 253 | | | | 1,337 | |
| Management and advisory fees | | | 366 | | | | 265 | | | | 393 | | | | 83 | | | | 383 | | | | 1,016 | |
| Distribution and service fees | | | 69 | | | | 108 | | | | 263 | | | | — | | | | 73 | | | | 193 | |
| Trustees fees | | | 1 | | | | 1 | | | | 2 | | | | — | | | | 2 | | | | 5 | |
| Transfer agent fees | | | 69 | | | | 69 | | | | 96 | | | | 9 | | | | 358 | | | | 199 | |
| Administration fees | | | 6 | | | | 6 | | | | 10 | | | | 2 | | | | 10 | | | | 19 | |
| Dividends from securities sold short | | | — | | | | 21 | | | | — | | | | — | | | | — | | | | — | |
| Capital gains tax | | | — | | | | — | | | | — | | | | 16 | | | | — | | | | — | |
| Other | | | 64 | | | | 82 | | | | 117 | | | | 44 | | | | 82 | | | | 130 | |
| Collateral for securities on loan | | | 73,153 | | | | — | | | | 92,766 | | | | — | | | | 42,108 | | | | 68,028 | |
| Written options and swaptions, at value | | | — | | | | 11 | | | | — | | | | — | | | | — | | | | — | |
| Securities sold short, at value | | | — | | | | 14,169 | | | | — | | | | — | | | | — | | | | — | |
| | | | |
| | | | 74,006 | | | | 60,924 | | | | 99,426 | | | | 640 | | | | 51,017 | | | | 85,775 | |
| | | | |
Net assets | | $ | 349,425 | | | $ | 336,549 | | | $ | 620,176 | | | $ | 125,654 | | | $ | 563,086 | | | $ | 1,091,785 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 286,735 | | | $ | 283,932 | | | $ | 627,531 | | | $ | 128,809 | | | $ | 482,207 | | | $ | 1,382,291 | |
| Undistributed (accumulated) net investment income (loss) | | | — | | | | 556 | | | | — | | | | 3,001 | | | | — | | | | — | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | 70,326 | | | | 38,900 | | | | 32,467 | | | | (2,719 | ) | | | 48,445 | | | | (435,430 | ) |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | (7,636 | ) | | | 13,063 | | | | (39,822 | ) | | | (3,404 | ) | | | 32,419 | | | | 144,780 | |
| Futures contracts | | | — | | | | 126 | | | | — | | | | — | | | | — | | | | — | |
| Written option and swaption contracts | | | — | | | | 31 | | | | — | | | | — | | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | — | | | | (1 | ) | | | — | | | | (33 | ) | | | 15 | | | | 144 | |
| Securities sold short | | | — | | | | (58 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | |
Net assets | | $ | 349,425 | | | $ | 336,549 | | | $ | 620,176 | | | $ | 125,654 | | | $ | 563,086 | | | $ | 1,091,785 | |
| | | | |
Net assets by class: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 103,177 | | | $ | 107,146 | | | $ | 323,147 | | | $ | 490 | | | $ | 77,197 | | | $ | 374,873 | |
| Class B | | | 9,636 | | | | 9,996 | | | | 33,830 | | | | | | | | 5,420 | | | | 21,556 | |
| Class C | | | 14,288 | | | | 38,868 | | | | 181,765 | | | | 113 | | | | 13,393 | | | | 33,092 | |
| Class I | | | 9,954 | | | | 12,086 | | | | 68,499 | | | | 78,738 | | | | 1,127 | | | | 5,954 | |
| Class I2 | | | 113,057 | | | | | | | | 12,935 | | | | 46,313 | | | | 291,409 | | | | 370,008 | |
| Class P | | | 99,313 | | | | 168,453 | | | | | | | | | | | | 174,540 | | | | 199,852 | |
| Class T | | | | | | | | | | | | | | | | | | | | | | | 86,450 | |
Shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 9,436 | | | | 4,591 | | | | 15,650 | | | | 36 | | | | 5,276 | | | | 39,835 | |
| Class B | | | 963 | | | | 430 | | | | 1,726 | | | | | | | | 372 | | | | 2,495 | |
| Class C | | | 1,422 | | | | 1,684 | | | | 9,370 | | | | 8 | | | | 920 | | | | 3,813 | |
| Class I | | | 875 | | | | 517 | | | | 3,258 | | | | 5,833 | | | | 76 | | | | 612 | |
| Class I2 | | | 9,888 | | | | | | | | 615 | | | | 3,429 | | | | 19,789 | | | | 38,163 | |
| Class P | | | 9,027 | | | | 7,218 | | | | | | | | | | | | 11,892 | | | | 21,199 | |
| Class T | | | | | | | | | | | | | | | | | | | | | | | 3,236 | |
Net asset value per share: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 10.93 | | | $ | 23.34 | | | $ | 20.65 | | | $ | 13.47 | | | $ | 14.63 | | | $ | 9.41 | |
| Class B | | | 10.01 | | | | 23.23 | | | | 19.60 | | | | | | | | 14.57 | | | | 8.64 | |
| Class C | | | 10.05 | | | | 23.09 | | | | 19.40 | | | | 13.40 | | | | 14.55 | | | | 8.68 | |
| Class I | | | 11.37 | | | | 23.40 | | | | 21.03 | | | | 13.50 | | | | 14.74 | | | | 9.72 | |
| Class I2 | | | 11.43 | | | | | | | | 21.03 | | | | 13.51 | | | | 14.73 | | | | 9.70 | |
| Class P | | | 11.00 | | | | 23.34 | | | | | | | | | | | | 14.68 | | | | 9.43 | |
| Class T | | | | | | | | | | | | | | | | | | | | | | | 26.71 | |
| Maximum offering price per share(F) | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 11.57 | | | $ | 24.70 | | | $ | 21.85 | | | $ | 14.25 | | | $ | 15.48 | | | $ | 9.96 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
Investment securities, at cost | | $ | 421,602 | | | $ | 329,053 | | | $ | 728,167 | | | $ | 126,744 | | | $ | 570,547 | | | $ | 1,016,546 | |
| | | | |
Repurchase agreement, at cost | | $ | 8,369 | | | $ | 21,427 | | | $ | 16,700 | | | $ | 1,882 | | | $ | 9,546 | | | $ | 12,979 | |
| | | | |
Foreign currency, at cost | | $ | — | | | $ | — | | | $ | — | | | $ | 47 | | | $ | — | | | $ | — | |
| | | | |
Securities loaned, at value | | $ | 71,483 | | | $ | — | | | $ | 88,976 | | | $ | — | | | $ | 41,181 | | | $ | 66,290 | |
| | | | |
Premium received on written option & swaption contracts | | $ | — | | | $ | 42 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | |
Proceeds received from securities sold short | | $ | — | | | $ | 14,111 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 76 | | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | |
| | | Transamerica | |
| | | WMC Quality | |
| | | Value | |
Assets: | | | | |
| Investment securities, at value | | $ | 1,306,155 | |
| Repurchase agreement, at value | | | 56,721 | |
| Receivables: | | | | |
| Investment securities sold | | | 5,255 | |
| Shares of beneficial interest sold | | | 10 | |
| Interest | | | — (E) | |
| Dividends | | | 1,637 | |
| Dividend reclaims | | | 45 | |
| Prepaid expenses | | | — (E) | |
| | | | |
| | | $ | 1,369,823 | |
| | | | |
Liabilities: | | | | |
| | | | | |
| Accounts payable and accrued liabilities: | | | | |
| Investment securities purchased | | | 29,035 | |
| Shares of beneficial interest redeemed | | | 788 | |
| Management and advisory fees | | | 720 | |
| Distribution and service fees | | | 2 | |
| Trustees fees | | | 5 | |
| Transfer agent fees | | | 9 | |
| Administration fees | | | 21 | |
| Other | | | 147 | |
| | | | |
| | | | 30,727 | |
| | | | |
Net assets | | $ | 1,339,096 | |
| | | | |
| | | | | |
Net assets consist of: | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 1,351,287 | |
| Undistributed (accumulated) net investment income (loss) | | | 2,504 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | (17,118 | ) |
| Net unrealized appreciation (depreciation) on: | | | | |
| Investment securities | | | 2,423 | |
| | | | |
Net assets | | $ | 1,339,096 | |
| | | | |
Net assets by class: | | | | |
| Class A | | $ | 1,021 | |
| Class C | | | 1,752 | |
| Class I | | | 7,855 | |
| Class I2 | | | 1,328,468 | |
Shares outstanding: | | | | |
| Class A | | | 99 | |
| Class C | | | 170 | |
| Class I | | | 761 | |
| Class I2 | | | 128,786 | |
Net asset value per share: | | | | |
| Class A | | $ | 10.30 | |
| Class C | | | 10.29 | |
| Class I | | | 10.31 | |
| Class I2 | | | 10.32 | |
Maximum offering price per share (F) | | | | |
| Class A | | $ | 10.90 | |
| | | | |
| | | | | |
| | | | |
Investment securities, at cost | | $ | 1,303,732 | |
| | | | |
Repurchase agreement, at cost | | $ | 56,721 | |
| | | | |
| | |
| (A) | | Formerly, Transamerica Flexible Income. |
| |
| (B) | | Formerly, Transamerica Money Market. |
| |
| (C) | | Formerly, Transamerica Short-Term Bond. |
| |
| (D) | | Formerly, Transamerica Focus. |
| |
| (E) | | Rounds to less than $1. |
| |
| (F) | | Includes the maximum selling commission (represented as a percentage of offering price) which is reduced on certain levels of sales as set forth in the Prospectus. Net asset value per share for Classes B, C, I, I2, P, and T shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge. |
| |
| (G) | | Formerly, Transamerica Growth Opportunities. |
| |
| (H) | | Formerly, Transamerica Balanced. |
| |
| (I) | | Formerly, Transamerica Small/Mid Cap Value. |
| |
| (J) | | Formerly, Transamerica Diversified Equity. |
| |
| (K) | | Formerly, TS&W International Equity. |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 77 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Transamerica | |
| | | Transamerica | | | Transamerica | | | Transamerica | | | Transamerica | | | Logan Circle | |
| | | AEGON Flexible | | | AEGON High Yield | | | AEGON Money | | | AEGON Short-Term | | | Emerging Markets | |
| | | Income(A) | | | Bond | | | Market(B) | | | Bond(C) | | | Debt(K) | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 701 | | | $ | 643 | | | $ | — | | | $ | — | | | $ | — | |
| Withholding taxes on foreign income | | | (2 | ) | | | — | | | | — | | | | — | | | | (8 | ) |
| Interest income | | | 15,827 | | | | 56,375 | | | | 433 | | | | 125,736 | | | | 901 | |
| Securities lending income (net) | | | 105 | | | | 392 | | | | — | | | | 278 | | | | — | |
| | | | |
| | | | 16,631 | | | | 57,410 | | | | 433 | | | | 126,014 | | | | 893 | |
| | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 1,183 | | | | 4,280 | | | | 837 | | | | 13,385 | | | | 94 | |
| Distribution and service: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 217 | | | | 662 | | | | 393 | | | | 2,901 | | | | 1 | |
| Class B | | | 87 | | | | 116 | | | | 159 | | | | | | | | | |
| Class C | | | 431 | | | | 467 | | | | 324 | | | | 8,443 | | | | 1 | |
| Class P | | | | | | | 53 | | | | — | | | | | | | | | |
| Transfer agent: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 88 | | | | 314 | | | | 408 | | | | 405 | | | | — | (D) |
| Class B | | | 21 | | | | 21 | | | | 56 | | | | | | | | | |
| Class C | | | 42 | | | | 50 | | | | 57 | | | | 571 | | | | — | (D) |
| Class I | | | 20 | | | | 37 | | | | 2 | | | | 267 | | | | — | (D) |
| Class I2 | | | 9 | | | | 32 | | | | 1 | | | | 72 | | | | 1 | |
| Class P | | | | | | | 37 | | | | 47 | | | | | | | | — | (D) |
| Printing and shareholder reports | | | 44 | | | | 88 | | | | 70 | | | | 388 | | | | | |
| Custody | | | 51 | | | | 108 | | | | 50 | | | | 324 | | | | 14 | |
| Administration | | | 50 | | | | 147 | | | | 42 | | | | 573 | | | | 3 | |
| Legal | | | 9 | | | | 27 | | | | 8 | | | | 110 | | | | 2 | |
| Audit and tax | | | 19 | | | | 20 | | | | 15 | | | | 21 | | | | 20 | |
| Trustees | | | 4 | | | | 13 | | | | 4 | | | | 51 | | | | — | (D) |
| Registration | | | 72 | | | | 118 | | | | 97 | | | | 147 | | | | 56 | |
| Other | | | 6 | | | | 14 | | | | 20 | | | | 45 | | | | 2 | |
| | | | |
| Total expenses | | | 2,353 | | | | 6,604 | | | | 2,590 | | | | 27,703 | | | | 194 | |
| | | | |
| Fund expenses waived | | | — | | | | (32 | ) | | | (749 | ) | | | — | | | | (35 | ) |
| Class expense recaptured or (reimbursed)/(waived): | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (62 | ) | | | — | | | | (783 | ) | | | (829 | ) | | | — | (D) |
| Class B | | | — | | | | — | | | | (213 | ) | | | | | | | — | (D) |
| Class C | | | — | | | | — | | | | (376 | ) | | | — | | | | — | |
| Class I | | | — | | | | — | | | | (2 | ) | | | — | | | | — | (D) |
| Class I2 | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
| Class P | | | | | | | (37 | ) | | | (47 | ) | | | | | | | | |
| | | | |
| Total expense recaptured or (reimbursed)/(waived) | | | (62 | ) | | | (69 | ) | | | (2,171 | ) | | | (829 | ) | | | (36 | ) |
| | | | |
| Net expenses | | | 2,291 | | | | 6,535 | | | | 419 | | | | 26,874 | | | | 158 | |
| | | | |
| |
Net investment income | | | 14,340 | | | | 50,875 | | | | 14 | | | | 99,140 | | | | 735 | |
| | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 3,727 | | | | 28,507 | | | | — | | | | 26,796 | | | | (167 | ) |
| Futures contracts | | | — | | | | — | | | | — | | | | (5,854 | ) | | | — | |
| Foreign currency transactions | | | (51 | ) | | | — | | | | — | | | | 45 | | | | 319 | |
| | | | |
| Net realized gain (loss) | | | 3,676 | | | | 28,507 | | | | — | | | | 20,987 | | | | 152 | |
| | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | (8,685 | ) | | | (47,639 | ) | | | — | | | | (68,636 | ) | | | (630 | ) |
| Futures contracts | | | — | | | | — | | | | — | | | | 1,743 | | | | — | |
| | | | |
| Translation of assets and liabilities denominated in foreign currencies | | | (16 | ) | | | — | | | | — | | | | (49 | ) | | | 7 | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | (8,701 | ) | | | (47,639 | ) | | | — | | | | (66,942 | ) | | | (623 | ) |
| | | | |
Net realized and change in unrealized loss: | | | (5,025 | ) | | | (19,132 | ) | | | — | | | | (45,955 | ) | | | (471 | ) |
| | | | |
Net increase in net assets resulting from operations | | $ | 9,315 | | | $ | 31,743 | | | $ | 14 | | | $ | 53,185 | | | $ | 264 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 78 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS (Continued)
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Transamerica | | | | | | | Transamerica | | | | |
| | | Transamerica | | | Morgan Stanley | | | Transamerica | | | Systematic | | | Transamerica | |
| | | Morgan Stanley | | | Growth | | | Multi-Managed | | | Small/Mid Cap | | | TS&W International | |
| | | Capital Growth(E) | | | Opportunities(F) | | | Balanced(G) | | | Value(H) | | | Equity(I) | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 1,364 | | | $ | 2,716 | | | $ | 3,544 | | | $ | 7,453 | | | $ | 4,797 | |
| Withholding taxes on foreign income | | | (52 | ) | | | (70 | ) | | | (26 | ) | | | (6 | ) | | | (365 | ) |
| Interest income | | | — | (D) | | | 2 | | | | 6,141 | | | | 2 | | | | — | |
| Securities lending income (net) | | | 97 | | | | 905 | | | | 44 | | | | 250 | | | | — | |
| | | |
| | | | 1,409 | | | | 3,553 | | | | 9,703 | | | | 7,699 | | | | 4,432 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 1,458 | | | | 2,888 | | | | 2,846 | | | | 5,206 | | | | 850 | |
| Distribution and service: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 216 | | | | 346 | | | | 436 | | | | 1,211 | | | | 1 | |
| Class B | | | 94 | | | | 121 | | | | 126 | | | | 398 | | | | | |
| Class C | | | 157 | | | | 149 | | | | 347 | | | | 1,948 | | | | 1 | |
| Class P | | | 189 | | | | 291 | | | | 504 | | | | | | | | | |
| Transfer agent: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 218 | | | | 400 | | | | 325 | | | | 704 | | | | — | (D) |
| Class B | | | 49 | | | | 49 | | | | 56 | | | | 84 | | | | | |
| Class C | | | 39 | | | | 59 | | | | 61 | | | | 337 | | | | — | (D) |
| Class I | | | 6 | | | | 8 | | | | 8 | | | | 77 | | | | 101 | |
| Class I2 | | | 1 | | | | 9 | | | | | | | | 1 | | | | 2 | |
| Class P | | | 165 | | | | 221 | | | | 368 | | | | | | | | | |
| Printing and shareholder reports | | | 61 | | | | 82 | | | | 86 | | | | 218 | | | | 27 | |
| Custody | | | 35 | | | | 82 | | | | 124 | | | | 85 | | | | 81 | |
| Administration | | | 36 | | | | 74 | | | | 76 | | | | 132 | | | | 66 | |
| Legal | | | 10 | | | | 14 | | | | 14 | | | | 25 | | | | 13 | |
| Audit and tax | | | 17 | | | | 17 | | | | 20 | | | | 16 | | | | 18 | |
| Trustees | | | 4 | | | | 7 | | | | 7 | | | | 12 | | | | 5 | |
| Registration | | | 93 | | | | 79 | | | | 136 | | | | 88 | | | | 74 | |
| Other | | | 5 | | | | 10 | | | | 9 | | | | 13 | | | | 10 | |
| | | |
| Total expenses | | | 2,853 | | | | 4,906 | | | | 5,549 | | | | 10,555 | | | | 1,249 | |
| | | |
| Fund expenses waived | | | — | | | | — | | | | (92 | ) | | | — | | | | — | |
| Class expense recaptured or (reimbursed)/(waived): | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (51 | ) | | | 112 | | | | — | | | | — | | | | — | (D) |
| Class B | | | (23 | ) | | | 13 | | | | — | | | | — | | | | | |
| Class C | | | 3 | | | | 18 | | | | — | | | | — | | | | — | |
| Class I | | | 1 | | | | — | (D) | | | 1 | | | | — | | | | — | |
| Class P | | | 2 | | | | — | | | | (367 | ) | | | | | | | | |
| | | |
| Total expense recaptured or (reimbursed)/(waived) | | | (68 | ) | | | 143 | | | | (458 | ) | | | — | | | | — | (D) |
| | | |
| Net expenses | | | 2,785 | | | | 5,049 | | | | 5,091 | | | | 10,555 | | | | 1,249 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (1,376 | ) | | | (1,496 | ) | | | 4,612 | | | | (2,856 | ) | | | 3,183 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 39,695 | | | | 117,876 | | | | 79,075 | | | | 193,786 | | | | 1,831 | |
| Futures contracts | | | — | | | | — | | | | (55 | ) | | | — | | | | — | |
| Written option & swaption contracts | | | — | | | | — | | | | 89 | | | | — | | | | — | |
| Securities sold short | | | — | | | | — | | | | (206 | ) | | | — | | | | — | |
| Foreign currency transactions | | | (126 | ) | | | (326 | ) | | | 1 | | | | — | | | | (84 | ) |
| | | |
| Net realized gain (loss) | | | 39,569 | | | | 117,550 | | | | 78,904 | | | | 193,786 | | | | 1,747 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | (10,649 | ) | | | (80,212 | ) | | | (48,629 | ) | | | (151,551 | ) | | | (10,486 | ) |
| Futures contracts | | | — | | | | — | | | | 126 | | | | — | | | | — | |
| Written option and swaption contracts | | | — | | | | — | | | | 31 | | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | 29 | | | | — | | | | (1 | ) | | | — | | | | 9 | |
| Securities sold short | | | — | | | | — | | | | (58 | ) | | | — | | | | — | |
| | | |
Net change in unrealized appreciation (depreciation) | | | (10,620 | ) | | | (80,212 | ) | | | (48,531 | ) | | | (151,551 | ) | | | (10,477 | ) |
| | | |
Net realized and change in unrealized gain (loss): | | | 28,949 | | | | 37,338 | | | | 30,373 | | | | 42,235 | | | | (8,730 | ) |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | 27,573 | | | $ | 35,842 | | | | 34,985 | | | | 39,379 | | | $ | (5,547 | ) |
| | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 79 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS (continued)
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | |
| | | Transamerica WMC | | | Transamerica WMC | | | Transamerica WMC | |
| | | Diversified Equity(J) | | | Diversified Growth | | | Quality Value(L) | |
| |
Investment income: | | | | | | | | | | | | |
| Dividend income | | $ | 8,760 | | | $ | 14,338 | | | $ | 27,830 | |
| Withholding taxes on foreign income | | | (38 | ) | | | (48 | ) | | | (208 | ) |
| Interest income | | | 38 | | | | 3 | | | | 5 | |
| Securities lending income (net) | | | 120 | | | | 314 | | | | — | |
| | | |
| | | | 8,880 | | | | 14,607 | | | | 27,627 | |
| | | |
| | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
| Management and advisory | | | 5,864 | | | | 9,077 | | | | 8,090 | |
| Distribution and service: | | | | | | | | | | | | |
| Class A | | | 293 | | | | 1,328 | | | | 3 | |
| Class B | | | 68 | | | | 267 | | | | | |
| Class C | | | 147 | | | | 363 | | | | 12 | |
| Class P | | | 732 | | | | 603 | | | | | |
| Transfer agent: | | | | | | | | | | | | |
| Class A | | | 435 | | | | 1,182 | | | | 2 | |
| Class B | | | 35 | | | | 125 | | | | | |
| Class C | | | 67 | | | | 142 | | | | 2 | |
| Class I | | | 3 | | | | 7 | | | | 2 | |
| Class I2 | | | 31 | | | | 37 | | | | 87 | |
| Class P | | | 1,482 | | | | 506 | | | | | |
| Class T | | | | | | | 142 | | | | | |
| Printing and shareholder reports | | | 105 | | | | 79 | | | | 58 | |
| Custody | | | 108 | | | | 183 | | | | 124 | |
| Administration | | | 163 | | | | 255 | | | | 233 | |
| Legal | | | 29 | | | | 48 | | | | 62 | |
| Audit and tax | | | 24 | | | | — | | | | 18 | |
| Trustees | | | 15 | | | | 24 | | | | 24 | |
| Registration | | | 110 | | | | 103 | | | | 142 | |
| Other | | | 16 | | | | 32 | | | | 19 | |
| | | |
| Total expenses | | | 9,727 | | | | 14,503 | | | �� | 8,878 | |
| | | |
| Class expense recaptured or (reimbursed)/(waived): | | | | | | | | | | | | |
| Class A | | | (117 | ) | | | 338 | | | | — | |
| Class B | | | (9 | ) | | | (18 | ) | | | | |
| Class C | | | (11 | ) | | | 4 | | | | — | |
| Class I | | | — | (D) | | | — | | | | — | |
| Class P | | | (1,154 | ) | | | (187 | ) | | | | |
| | | |
| Total expense recaptured or (reimbursed)/(waived) | | | (1,291 | ) | | | 137 | | | | — | |
| | | |
| Net expenses | | | 8,436 | | | | 14,640 | | | | 8,878 | |
| | | |
| | | | | | | | | | | | | |
Net investment income (loss) | | | 444 | | | | (33 | ) | | | 18,749 | |
| | | |
| | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | |
| Investment securities | | | 110,534 | | | | 58,085 | | | | (17,118 | ) |
| Foreign currency transactions | | | 1 | | | | 1 | | | | — | |
| | | |
| Net realized gain (loss) | | | 110,535 | | | | 58,086 | | | | (17,118 | ) |
| | | |
| | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | |
| Investment securities | | | (76,626 | ) | | | 9,331 | | | | 2,423 | |
| Translation of assets and liabilities denominated in foreign currencies | | | 5 | | | | 51 | | | | — | |
| | | |
Net change in unrealized appreciation (depreciation) | | | (76,621 | ) | | | 9,382 | | | | 2,423 | |
| | | |
Net realized and change in unrealized gain (loss): | | | 33,914 | | | | 67,468 | | | | (14,695 | ) |
| | | |
Net increase in net assets resulting from operations | | $ | 34,358 | | | $ | 67,435 | | | $ | 4,054 | |
| | | |
| | |
| (A) | | Formerly, Transamerica Flexible Income. |
| |
| (B) | | Formerly, Transamerica Money Market. |
| |
| (C) | | Formerly, Transamerica Short-Term Bond. |
| |
| (D) | | Rounds to less than $1 or $(1). |
| |
| (E) | | Formerly, Transamerica Focus. |
| |
| (F) | | Formerly, Transamerica Growth Opportunities. |
| |
| (G) | | Formerly, Transamerica Balanced. |
| |
| (H) | | Formerly, Transamerica Small/Mid Cap Value. |
| |
| (I) | | Formerly, TS&W International Equity. |
| |
| (J) | | Formerly, Transamerica Diversified Equity. |
| |
| (K) | | Commenced operations on August 31, 2011. |
| |
| (L) | | Commenced operations on November 15, 2010. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 80 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Flexible | | | Transamerica AEGON High Yield | | | Transamerica AEGON Money | |
| | | Income(A) | | | Bond | | | Market(B) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011 | | | 2010(C) | | | 31, 2011 | | | 2010(C) | | | 2011 | | | 2010(C) | |
| |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 14,340 | | | $ | 14,706 | | | $ | 50,875 | | | $ | 48,143 | | | $ | 14 | | | $ | 16 | |
Net realized gain (loss)(D) | | | 3,676 | | | | 17,969 | | | | 28,507 | | | | 24,273 | | | | — | | | | — | |
| Net change in unrealized appreciation (depreciation) | | | (8,701 | ) | | | 1,881 | | | | (47,639 | ) | | | 30,571 | | | | — | | | | — | |
| | | |
Net increase in net assets resulting from operations | | | 9,315 | | | | 34,556 | | | | 31,743 | | | | 102,987 | | | | 14 | | | | 16 | |
| | | |
| Net equalization credit and charges | | | — | | | | — | | | | — | | | | — | | | | — | | | | (84 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (3,489 | ) | | | (2,777 | ) | | | (12,399 | ) | | | (7,929 | ) | | | (3 | ) | | | (5 | ) |
| Class B | | | (416 | ) | | | (566 | ) | | | (682 | ) | | | (917 | ) | | | (1 | ) | | | (1 | ) |
| Class C | | | (2,181 | ) | | | (1,393 | ) | | | (2,837 | ) | | | (2,048 | ) | | | (1 | ) | | | (2 | ) |
| Class I | | | (987 | ) | | | (209 | ) | | | (2,173 | ) | | | (642 | ) | | | — | (E) | | | — | (E) |
| Class I2 | | | (7,295 | ) | | | (10,854 | ) | | | (30,575 | ) | | | (35,273 | ) | | | (4 | ) | | | (3 | ) |
| Class P | | | | | | | | | | | (1,368 | ) | | | (2,091 | ) | | | (5 | ) | | | (4 | ) |
| | | |
Total distributions to shareholders | | | (14,368 | ) | | | (15,799 | ) | | | (50,034 | ) | | | (48,900 | ) | | | (14 | ) | | | (15 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 37,059 | | | | 40,020 | | | | 170,969 | | | | 175,590 | | | | 96,642 | | | | 87,174 | |
| Class B | | | 1,645 | | | | 4,135 | | | | 872 | | | | 5,029 | | | | 9,304 | | | | 7,885 | |
| Class C | | | 34,498 | | | | 34,689 | | | | 18,711 | | | | 25,217 | | | | 32,873 | | | | 20,292 | |
| Class I | | | 22,523 | | | | 10,503 | | | | 77,275 | | | | 27,869 | | | | — | | | | 55 | |
| Class I2 | | | 419 | | | | 3,933 | | | | 117,637 | | | | 16,456 | | | | 19,769 | | | | 8,382 | |
| Class P | | | | | | | | | | | 37,103 | | | | 43,121 | | | | 7,531 | | | | 11,682 | |
| | | |
| | | | 96,144 | | | | 93,280 | | | | 422,567 | | | | 293,282 | | | | 166,119 | | | | 135,470 | |
| | | |
| Issued from fund acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | 13,041 | | | | — | | | | — | | | | — | | | | — | |
| Class B | | | — | | | | 2,469 | | | | — | | | | — | | | | — | | | | — | |
| Class C | | | — | | | | 5,997 | | | | — | | | | — | | | | — | | | | — | |
| Class I2 | | | — | | | | 53,655 | | | | — | | | | 42,041 | | | | — | | | | — | |
| Class P | | | | | | | | | | | — | | | | 51,472 | | | | — | | | | 43,668 | |
| | | |
| | | | — | | | | 75,162 | | | | — | | | | 93,513 | | | | — | | | | 43,668 | |
| | | |
| Dividends and distributions reinvested: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 2,848 | | | | 2,040 | | | | 10,773 | | | | 6,300 | | | | 3 | | | | 4 | |
| Class B | | | 308 | | | | 400 | | | | 479 | | | | 565 | | | | 1 | | | | 1 | |
| Class C | | | 1,242 | | | | 718 | | | | 1,883 | | | | 1,325 | | | | 1 | | | | 1 | |
| Class I | | | 542 | | | | 41 | | | | 1,397 | | | | 264 | | | | — | (E) | | | — | (E) |
| Class I2 | | | 7,295 | | | | 10,854 | | | | 30,575 | | | | 35,273 | | | | 4 | | | | 4 | |
| Class P | | | | | | | | | | | 1,322 | | | | 2,035 | | | | 5 | | | | 4 | |
| | | |
| | | | 12,235 | | | | 14,053 | | | | 46,429 | | | | 45,762 | | | | 14 | | | | 14 | |
| | | |
| Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (30,886 | ) | | | (29,821 | ) | | | (146,735 | ) | | | (67,766 | ) | | | (106,542 | ) | | | (119,147 | ) |
| Class B | | | (2,689 | ) | | | (3,008 | ) | | | (2,719 | ) | | | (2,899 | ) | | | (10,784 | ) | | | (18,940 | ) |
| Class C | | | (20,629 | ) | | | (20,023 | ) | | | (12,369 | ) | | | (6,669 | ) | | | (30,595 | ) | | | (32,675 | ) |
| Class I | | | (12,507 | ) | | | (1,014 | ) | | | (23,545 | ) | | | (1,970 | ) | | | — | (E) | | | — | |
| Class I2 | | | (43,197 | ) | | | (66,476 | ) | | | (153,205 | ) | | | (195,700 | ) | | | (23,936 | ) | | | (20,731 | ) |
| Class P | | | | | | | | | | | (40,924 | ) | | | (76,785 | ) | | | (12,309 | ) | | | (23,294 | ) |
| | | |
| | | | (109,908 | ) | | | (120,342 | ) | | | (379,497 | ) | | | (351,789 | ) | | | (184,166 | ) | | | (214,787 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 2,688 | | | | 2,342 | | | | 2,901 | | | | 1,788 | | | | 2,643 | | | | 5,116 | |
| Class B | | | (2,688 | ) | | | (2,342 | ) | | | (2,901 | ) | | | (1,788 | ) | | | (2,643 | ) | | | (5,116 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| Fair fund settlement: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | 3 | | | | — | | | | 1 | |
| Class B | | | — | | | | — | | | | — | | | | — | (E) | | | — | | | | — | (E) |
| Class C | | | — | | | | — | | | | — | | | | 1 | | | | — | | | | — | (E) |
| Class I | | | — | | | | — | | | | — | | | | — | (E) | | | — | | | | — | (E) |
| Class I2 | | | — | | | | — | | | | — | | | | 21 | | | | — | | | | — | (E) |
| Class P | | | — | | | | — | | | | — | | | | 2 | | | | — | | | | — | (E) |
| | | |
| | | | — | | | | — | | | | — | | | | 27 | | | | — | | | | 1 | |
| | | |
| Net income equalization | | | — | | | | — | | | | — | | | | — | | | | — | | | | 84 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (1,529 | ) | | | 62,153 | | | | 89,499 | | | | 80,795 | | | | (18,033 | ) | | | (35,550 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net increase (decrease) in net assets | | | (6,582 | ) | | | 80,910 | | | | 71,208 | | | | 134,882 | | | | (18,033 | ) | | | (35,633 | ) |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 258,399 | | | $ | 177,489 | | | $ | 706,554 | | | $ | 571,672 | | | $ | 226,873 | | | $ | 262,506 | |
| | | |
| End of year | | $ | 251,817 | | | $ | 258,399 | | | $ | 777,762 | | | $ | 706,554 | | | $ | 208,840 | | | $ | 226,873 | |
| | | |
Undistributed net investment income | | $ | 876 | | | $ | 748 | | | $ | 2,568 | | | $ | 1,697 | | | $ | — | | | $ | — | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 81 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Flexible | | | Transamerica AEGON High Yield | | | Transamerica AEGON Money | |
| | | Income(A) | | | Bond | | | Market(B) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011 | | | 2010(C) | | | 2011 | | | 2010(C) | | | 2011 | | | 2010(C) | |
| |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 4,106 | | | | 4,626 | | | | 19,065 | | | | 19,958 | | | | 96,642 | | | | 87,173 | |
| Class B | | | 183 | | | | 479 | | | | 96 | | | | 578 | | | | 9,304 | | | | 7,884 | |
| Class C | | | 3,846 | | | | 4,015 | | | | 2,054 | | | | 2,873 | | | | 32,873 | | | | 20,292 | |
| Class I | | | 2,493 | | | | 1,195 | | | | 8,701 | | | | 3,130 | | | | — | | | | 55 | |
| Class I2 | | | 46 | | | | 460 | | | | 12,683 | | | | 1,868 | | | | 19,769 | | | | 8,382 | |
| Class P | | | | | | | | | | | 4,043 | | | | 4,932 | | | | 7,531 | | | | 11,681 | |
| | | |
| | | | 10,674 | | | | 10,775 | | | | 46,642 | | | | 33,339 | | | | 166,119 | | | | 135,467 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued on fund acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | 1,554 | | | | — | | | | — | | | | — | | | | — | |
| Class B | | | — | | | | 294 | | | | — | | | | — | | | | — | | | | — | |
| Class C | | | — | | | | 717 | | | | — | | | | — | | | | — | | | | — | |
| Class I2 | | | — | | | | 6,372 | | | | — | | | | 4,928 | | | | — | | | | — | |
| Class P | | | | | | | | | | | — | | | | 6,070 | | | | — | | | | 43,668 | |
| | | |
| | | | — | | | | 8,937 | | | | — | | | | 10,998 | | | | — | | | | 43,668 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued-reinvested from distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 318 | | | | 236 | | | | 1,183 | | | | 718 | | | | 3 | | | | 4 | |
| Class B | | | 34 | | | | 46 | | | | 53 | | | | 65 | | | | — | (F) | | | 1 | |
| Class C | | | 139 | | | | 83 | | | | 208 | | | | 152 | | | | 1 | | | | 1 | |
| Class I | | | 60 | | | | 5 | | | | 154 | | | | 30 | | | | — | (F) | | | — | (F) |
| Class I2 | | | 812 | | | | 1,254 | | | | 3,340 | | | | 4,026 | | | | 4 | | | | 4 | |
| Class P | | | | | | | | | | | 145 | | | | 233 | | | | 6 | | | | 4 | |
| | | |
| | | | 1,363 | | | | 1,624 | | | | 5,083 | | | | 5,224 | | | | 14 | | | | 14 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (3,446 | ) | | | (3,460 | ) | | | (16,105 | ) | | | (7,735 | ) | | | (106,542 | ) | | | (119,147 | ) |
| Class B | | | (300 | ) | | | (347 | ) | | | (297 | ) | | | (331 | ) | | | (10,784 | ) | | | (18,940 | ) |
| Class C | | | (2,308 | ) | | | (2,327 | ) | | | (1,373 | ) | | | (765 | ) | | | (30,595 | ) | | | (32,675 | ) |
| Class I | | | (1,379 | ) | | | (115 | ) | | | (2,603 | ) | | | (220 | ) | | | | | | | — | |
| Class I2 | | | (4,790 | ) | | | (7,637 | ) | | | (17,227 | ) | | | (22,168 | ) | | | (23,936 | ) | | | (20,731 | ) |
| Class P | | | | | | | | | | | (4,435 | ) | | | (8,838 | ) | | | (12,309 | ) | | | (23,294 | ) |
| | | |
| | | | (12,223 | ) | | | (13,886 | ) | | | (42,040 | ) | | | (40,057 | ) | | | (184,166 | ) | | | (214,787 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 298 | | | | 270 | | | | 315 | | | | 205 | | | | 2,643 | | | | 5,116 | |
| Class B | | | (297 | ) | | | (270 | ) | | | (315 | ) | | | (205 | ) | | | (2,643 | ) | | | (5,116 | ) |
| | | |
| | | | 1 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,276 | | | | 3,226 | | | | 4,458 | | | | 13,146 | | | | (7,254 | ) | | | (26,854 | ) |
| Class B | | | (380 | ) | | | 202 | | | | (463 | ) | | | 107 | | | | (4,123 | ) | | | (16,171 | ) |
| Class C | | | 1,677 | | | | 2,488 | | | | 889 | | | | 2,260 | | | | 2,279 | | | | (12,382 | ) |
| Class I | | | 1,174 | | | | 1,085 | | | | 6,252 | | | | 2,940 | | | | — | (F) | | | 55 | |
| Class I2 | | | (3,932 | ) | | | 449 | | | | (1,204 | ) | | | (11,346 | ) | | | (4,163 | ) | | | (12,345 | ) |
| Class P | | | | | | | | | | | (247 | ) | | | 2,397 | | | | (4,772 | ) | | | 32,059 | |
| | | |
| | | | (185 | ) | | | 7,450 | | | | 9,685 | | | | 9,504 | | | | (18,033 | ) | | | (35,638 | ) |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report |
| | | |
| Transamerica Funds | Page 82 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica Logan | | | | |
| | | Transamerica AEGON Short-Term | | | Circle Emerging | | | Transamerica Morgan Stanley Capital | |
| | | Bond(G) | | | Markets Debt(M) | | | Growth(H) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011 | | | 2010(C) | | | 2011 | | | 2011 | | | 2010(Q) | |
| |
From operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 99,140 | | | $ | 89,019 | | | $ | 735 | | | $ | (1,376 | ) | | $ | (1,060 | ) |
Net realized gain (loss)(D) | | | 20,987 | | | | 19,510 | | | | 152 | | | | 39,569 | | | | 4,802 | |
| Net change in unrealized appreciation (depreciation) | | | (66,942 | ) | | | 35,517 | | | | (623 | ) | | | (10,620 | ) | | | 22,155 | |
| | | |
Net increase in net assets resulting from operations | | | 53,185 | | | | 144,046 | | | | 264 | | | | 27,573 | | | | 25,897 | |
| | | |
| |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | |
| From net investment income: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (30,442 | ) | | | (25,649 | ) | | | — | (E) | | | — | | | | (54 | ) |
| Class B | | | | | | | | | | | | | | | — | | | | (10 | ) |
| Class C | | | (24,518 | ) | | | (20,162 | ) | | | — | (E) | | | — | | | | (9 | ) |
| Class I | | | (9,068 | ) | | | (4,071 | ) | | | (1 | ) | | | — | | | | — | (E) |
| Class I2 | | | (37,865 | ) | | | (39,448 | ) | | | (41 | ) | | | — | | | | | |
| Class P | | | | | | | | | | | | | | | — | | | | (105 | ) |
| | | |
| | | | (101,893 | ) | | | (89,330 | ) | | | (42 | ) | | | — | | | | (178 | ) |
| | | |
| From net realized gains: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (1,873 | ) | | | — | | | | — | | | | — | | | | — | |
| Class C | | | (1,877 | ) | | | — | | | | — | | | | — | | | | — | |
| Class I | | | (450 | ) | | | — | | | | — | | | | — | | | | — | |
| Class I2 | | | (2,237 | ) | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | | (6,437 | ) | | | — | | | | — | | | | — | | | | — | |
| | | |
Total distributions to shareholders | | | (108,330 | ) | | | (89,330 | ) | | | (42 | ) | | | — | | | | (178 | ) |
| | | |
| |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | | | | 127 | |
| Class A | | | 359,599 | | | | 868,148 | | | | 2,312 | | | | 23,000 | | | | 2,879 | |
| Class B | | | | | | | | | | | | | | | 838 | | | | 764 | |
| Class C | | | 268,987 | | | | 578,716 | | | | 996 | | | | 5,007 | | | | 631 | |
| Class I | | | 245,690 | | | | 274,807 | | | | 2,018 | | | | 12,513 | | | | 429 | |
| Class I2 | | | 181,462 | | | | 338,251 | | | | 95,239 | | | | 398,989 | | | | | |
| Class P | | | | | | | | | | | | | | | 11,925 | | | | 2,885 | |
| | | |
| | | | 1,055,738 | | | | 2,059,922 | | | | 100,565 | | | | 452,272 | | | | 7,715 | |
| | | |
| Issued from fund acquisition: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | — | | | | 39,661 | |
| Class B | | | | | | | | | | | | | | | — | | | | 18,628 | |
| Class C | | | — | | | | — | | | | — | | | | — | | | | 13,950 | |
| Class P | | | | | | | | | | | | | | | — | | | | 68,302 | |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | 140,541 | |
| | | |
| Dividends and distributions reinvested: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 25,781 | | | | 18,561 | | | | — | (E) | | | — | | | | 51 | |
| Class B | | | | | | | | | | | | | | | — | | | | 9 | |
| Class C | | | 18,792 | | | | 13,088 | | | | — | (E) | | | — | | | | 8 | |
| Class I | | | 4,400 | | | | 810 | | | | 1 | | | | — | | | | — | (E) |
| Class I2 | | | 40,262 | | | | 39,349 | | | | 41 | | | | — | | | | | |
| Class P | | | | | | | | | | | | | | | — | | | | 104 | |
| | | |
| | | | 89,235 | | | | 71,808 | | | | 42 | | | | — | | | | 172 | |
| | | |
| Redeemed due to acquisition: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | — | | | | — | | | | — | | | | — | | | | (68,302 | ) |
| | | |
| |
| Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | | | | (166 | ) |
| Class A | | | (446,889 | ) | | | (335,135 | ) | | | (117 | ) | | | (13,729 | ) | | | (8,976 | ) |
| Class B | | | | | | | | | | | | | | | (1,726 | ) | | | (3,226 | ) |
| Class C | | | (259,670 | ) | | | (88,854 | ) | | | — | (E) | | | (3,013 | ) | | | (3,668 | ) |
| Class I | | | (173,095 | ) | | | (79,367 | ) | | | — | (E) | | | (1,164 | ) | | | (50 | ) |
| Class I2 | | | (278,428 | ) | | | (111,416 | ) | | | (143 | ) | | | (1,581 | ) | | | | |
| Class P | | | | | | | | | | | | | | | (24,833 | ) | | | (11,367 | ) |
| | | |
| | | | (1,158,082 | ) | | | (614,772 | ) | | | (260 | ) | | | (46,046 | ) | | | (27,453 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | 2,418 | | | | 7,775 | |
| Class B | | | | | | | | | | | | | | | (2,418 | ) | | | (7,775 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (13,109 | ) | | | 1,516,958 | | | | 100,347 | | | | 406,226 | | | | 52,673 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
Net increase (decrease) in net assets | | | (68,254 | ) | | | 1,571,674 | | | | 100,569 | | | | 433,799 | | | | 78,392 | |
| | | |
| |
Net assets: | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 2,889,343 | | | $ | 1,317,669 | | | $ | — | | | $ | 142,090 | | | $ | 63,698 | |
| | | |
| End of year | | $ | 2,821,089 | | | $ | 2,889,343 | | | $ | 100,569 | | | $ | 575,889 | | | $ | 142,090 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | (2,420 | ) | | $ | (2,187 | ) | | $ | 1,010 | | | $ | — | | | $ | — | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 83 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica
Logan Circle | | | | |
| | | Transamerica AEGON Short-Term | | | Emerging | | | Transamerica Morgan Stanley | |
| | | Bond(G) | | | Markets Debt(M) | | | Capital Growth(H) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011 | | | 2010(C) | | | 2011 | | | 2011 | | | 2010(Q) | |
| |
Share activity: | | | | | | | | | | | | | | | | | | | | |
| Shares issued: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | | | | 8 | |
| Class A | | | 34,402 | | | | 83,747 | | | | 237 | | | | 1,461 | | | | 232 | |
| Class B | | | | | | | | | | | | | | | 58 | | | | 67 | |
| Class C | | | 25,782 | | | | 55,769 | | | | 103 | | | | 347 | | | | 54 | |
| Class I | | | 23,932 | | | | 26,816 | | | | 206 | | | | 794 | | | | 35 | |
| Class I2 | | | 17,710 | | | | 33,121 | | | | 9,526 | | | | 37,298 | | | | | |
| Class P | | | | | | | | | | | | | | | 766 | | | | 234 | |
| | | |
| | | | 101,826 | | | | 199,453 | | | | 10,072 | | | | 40,724 | | | | 630 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares issued on fund acquisition: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | — | | | | 3,369 | |
| Class B | | | | | | | | | | | | | | | — | | | | 1,700 | |
| Class C | | | — | | | | — | | | | — | | | | — | | | | 1,275 | |
| Class P | | | | | | | | | | | | | | | — | | | | 5,802 | |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | 12,146 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares issued-reinvested from distributions: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 2,470 | | | | 1,783 | | | | — | (F) | | | — | | | | 4 | |
| Class B | | | | | | | | | | | | | | | — | | | | 1 | |
| Class C | | | 1,804 | | | | 1,260 | | | | — | (F) | | | — | | | | 1 | |
| Class I | | | 429 | | | | 79 | | | | — | (F) | | | — | | | | — | (F) |
| Class I2 | | | 3,925 | | | | 3,852 | | | | 4 | | | | — | | | | | |
| Class P | | | | | | | | | | | | | | | — | | | | 9 | |
| | | |
| | | | 8,628 | | | | 6,974 | | | | 4 | | | | — | | | | 15 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares redeemed due to acquisition: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | — | | | | — | | | | — | | | | — | | | | 3,672 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Shares redeemed: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | | | | (10 | ) |
| Class A | | | (42,838 | ) | | | (32,381 | ) | | | (12 | ) | | | (869 | ) | | | (734 | ) |
| Class B | | | | | | | | | | | | | | | (119 | ) | | | (288 | ) |
| Class C | | | (24,915 | ) | | | (8,542 | ) | | | — | (F) | | | (209 | ) | | | (324 | ) |
| |
| Class I | | | (16,874 | ) | | | (7,719 | ) | | | — | | | | (73 | ) | | | (4 | ) |
| Class I2 | | | (27,058 | ) | | | (10,852 | ) | | | (15 | ) | | | (145 | ) | | | | |
| Class P | | | | | | | | | | | | | | | (1,566 | ) | | | (943 | ) |
| | | |
| | | | (111,685 | ) | | | (59,494 | ) | | | (27 | ) | | | (2,981 | ) | | | (2,303 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | 156 | | | | 652 | |
| Class B | | | | | | | | | | | | | | | (169 | ) | | | (702 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | (13 | ) | | | (50 | ) |
| | | |
Net increase (decrease) in shares outstanding: | | | | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | | | | | (3,674 | ) |
| Class A | | | (5,966 | ) | | | 53,149 | | | | 225 | | | | 748 | | | | 3,523 | |
| Class B | | | | | | | | | | | | | | | (230 | ) | | | 778 | |
| Class C | | | 2,671 | | | | 48,487 | | | | 103 | | | | 138 | | | | 1,006 | |
| Class I | | | 7,487 | | | | 19,176 | | | | 206 | | | | 721 | | | | 31 | |
| Class I2 | | | (5,423 | ) | | | 26,121 | | | | 9,515 | | | | 37,153 | | | | | |
| Class P | | | | | | | | | | | | | | | (800 | ) | | | 5,102 | |
| | | |
| | | | (1,231 | ) | | | 146,933 | | | | 10,049 | | | | 37,730 | | | | 6,766 | |
| | | |
| | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 84 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley | | | Transamerica Multi-Managed | | | Transamerica Systematic Small/Mid Cap |
| | | Growth Opportunities(I) | | | Balanced(J) | | | Value(K) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011 | | | 2010(C) | | | 2011 | | | 2010 | | | 2011 | | | 2010(C) | |
| |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (1,496 | ) | | $ | (384 | ) | | $ | 4,612 | | | $ | 9,489 | | | $ | (2,856 | ) | | $ | (1,635 | ) |
Net realized gain (loss)(D) | | | 117,550 | | | | 22,355 | | | | 78,904 | | | | 33,723 | | | | 193,786 | | | | 39,083 | |
| Net change in unrealized appreciation (depreciation) | | | (80,212 | ) | | | 51,638 | | | | (48,531 | ) | | | 19,335 | | | | (151,551 | ) | | | 69,238 | |
| | | |
Net increase in net assets resulting from operations | | | 35,842 | | | | 73,609 | | | | 34,985 | | | | 62,547 | | | | 39,379 | | | | 106,686 | |
| | | |
| Net equalization credit and charges | | | — | | | | — | | | | (14,794 | ) | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | (1,337 | ) | | | (2,267 | ) | | | — | | | | — | |
| Class B | | | — | | | | — | | | | (46 | ) | | | (269 | ) | | | — | | | | — | |
| Class C | | | — | | | | — | | | | (239 | ) | | | (479 | ) | | | — | | | | — | |
| Class I | | | (8 | ) | | | — | | | | (95 | ) | | | (5 | ) | | | — | | | | — | |
| Class I2 | | | (576 | ) | | | — | | | | | | | | | | | | — | | | | — | |
| Class P | | | (112 | ) | | | | | | | (2,803 | ) | | | (6,337 | ) | | | — | | | | — | |
| | | |
Total distributions to shareholders | | | (696 | ) | | | — | | | | (4,520 | ) | | | (9,357 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 53,115 | | | | 2,816 | | | | 58,119 | | | | 7,851 | | | | 144,418 | | | | 128,433 | |
| Class B | | | 805 | | | | 1,026 | | | | 1,366 | | | | 1,097 | | | | 1,532 | | | | 8,100 | |
| Class C | | | 3,521 | | | | 1,364 | | | | 19,491 | | | | 1,724 | | | | 48,478 | | | | 50,351 | |
| Class I | | | 12,282 | | | | 772 | | | | 15,514 | | | | 302 | | | | 67,684 | | | | 49,227 | |
| Class I2 | | | 1,151 | | | | 19,035 | | | | | | | | | | | | 905 | | | | 2,506 | |
| Class P | | | 12,809 | | | | 3,868 | | | | 21,072 | | | | 25,698 | | | | | | | | | |
| | | |
| | | | 83,683 | | | | 28,881 | | | | 115,562 | | | | 36,672 | | | | 263,017 | | | | 238,617 | |
| | | |
| Issued from fund acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | 18,932 | | | | — | | | | — | |
| Class B | | | — | | | | — | | | | — | | | | 3,855 | | | | — | | | | — | |
| Class C | | | — | | | | — | | | | — | | | | 5,342 | | | | — | | | | — | |
| Class P | | | — | | | | 96,199 | | | | — | | | | 281,788 | | | | — | | | | — | |
| | | |
| Dividends and distributions reinvested: | | | — | | | | 96,199 | | | | — | | | | 309,917 | | | | — | | | | — | |
| | | |
| Class A | | | — | | | | — | | | | 1,253 | | | | 2,132 | | | | — | | | | — | |
| Class B | | | — | | | | — | | | | 45 | | | | 256 | | | | — | | | | — | |
| Class C | | | — | | | | — | | | | 208 | | | | 430 | | | | — | | | | — | |
| Class I | | | 3 | | | | | | | | 49 | | | | 3 | | | | — | | | | — | |
| Class I2 | | | 576 | | | | | | | | | | | | | | | | — | | | | — | |
| Class P | | | 112 | | | | | | | | 2,782 | | | | 6,308 | | | | | | | | | |
| | | |
| | | | 691 | | | | — | | | | 4,337 | | | | 9,129 | | | | — | | | | — | |
| | | |
| Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (18,918 | ) | | | (10,186 | ) | | | (60,819 | ) | | | (16,364 | ) | | | (128,843 | ) | | | (112,530 | ) |
| Class B | | | (1,941 | ) | | | (2,202 | ) | | | (2,492 | ) | | | (3,595 | ) | | | (6,989 | ) | | | (6,385 | ) |
| Class C | | | (3,362 | ) | | | (2,378 | ) | | | (7,139 | ) | | | (4,123 | ) | | | (50,447 | ) | | | (29,483 | ) |
| Class I | | | (3,328 | ) | | | (33 | ) | | | (3,914 | ) | | | (59 | ) | | | (38,074 | ) | | | (11,419 | ) |
| Class I2 | | | (8,256 | ) | | | (55,843 | ) | | | | | | | | | | | (5,604 | ) | | | (597 | ) |
| Class P | | | (31,828 | ) | | | (15,721 | ) | | | (73,052 | ) | | | (146,174 | ) | | | | | | | | |
| | | |
| | | | (67,633 | ) | | | (86,363 | ) | | | (147,416 | ) | | | (170,315 | ) | | | (229,957 | ) | | | (160,414 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 3,139 | | | | 3,838 | | | | 4,839 | | | | 7,711 | | | | 2,578 | | | | 6,686 | |
| Class B | | | (3,139 | ) | | | (3,838 | ) | | | (4,839 | ) | | | (7,711 | ) | | | (2,578 | ) | | | (6,686 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| Fair fund settlement: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1 | | | | 31 | | | | — | | | | 2 | | | �� | — | | | | — | |
| Class B | | | — | (E) | | | 9 | | | | — | | | | — | (E) | | | — | | | | — | |
| Class C | | | — | (E) | | | 7 | | | | — | | | | 1 | | | | — | | | | — | |
| Class I | | | — | (E) | | | — | (E) | | | — | | | | — | (E) | | | — | | | | — | |
| Class I2 | | | 2 | | | | 73 | | | | | | | | | | | | — | | | | — | |
| Class P | | | 1 | | | | 57 | | | | — | | | | 6 | | | | | | | | | |
| | | | 4 | | | | 177 | | | | — | | | | 9 | | | | — | | | | — | |
| Net income equalization | | | — | | | | — | | | | 14,794 | | | | — | | | | — | | | | — | |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | 16,745 | | | | 38,894 | | | | (12,723 | ) | | | 185,412 | | | | 33,060 | | | | 78,203 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net increase in net assets | | | 51,891 | | | | 112,503 | | | | 2,948 | | | | 238,602 | | | | 72,439 | | | | 184,889 | |
| | | |
| |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 297,534 | | | $ | 185,031 | | | $ | 333,601 | | | $ | 94,999 | | | $ | 547,737 | | | $ | 362,848 | |
| | | |
| End of year | | $ | 349,425 | | | $ | 297,534 | | | $ | 336,549 | | | $ | 333,601 | | | $ | 620,176 | | | $ | 547,737 | |
| | | |
Undistributed net investment income | | $ | — | | | $ | — | | | $ | 556 | | | $ | 326 | | | $ | — | | | $ | — | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 85 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley | | | Transamerica Multi-Managed | | | Transamerica Systematic |
| | | Growth Opportunities(I) | | | Balanced(J) | | | Small/Mid Cap Value(K) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011 | | | 2010(C) | | | 2011 | | | 2010 | | | 2011 | | | 2010(C) | |
| |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 4,731 | | | | 325 | | | | 2,540 | | | | 391 | | | | 6,627 | | | | 7,470 | |
| Class B | | | 77 | | | | 129 | | | | 59 | | | | 57 | | | | 74 | | | | 493 | |
| Class C | | | 334 | | | | 169 | | | | 846 | | | | 87 | | | | 2,347 | | | | 3,065 | |
| Class I | | | 1,070 | | | | 84 | | | | 669 | | | | 15 | | | | 2,999 | | | | 2,756 | |
| Class I2 | | | 97 | | | | 2,050 | | | | | | | | | | | | 40 | | | | 141 | |
| Class P | | | 1,121 | | | | 444 | | | | 914 | | | | 1,305 | | | | | | | | | |
| | | |
| | | | 7,430 | | | | 3,201 | | | | 5,028 | | | | 1,855 | | | | 12,087 | | | | 13,925 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued on fund acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | 1,014 | | | | — | | | | — | |
| Class B | | | — | | | | — | | | | — | | | | 207 | | | | — | | | | — | |
| Class C | | | — | | | | — | | | | — | | | | 289 | | | | — | | | | — | |
| Class P | | | — | | | | 12,010 | | | | — | | | | 15,093 | | | | | | | | | |
| | | |
| | | | — | | | | 12,010 | | | | — | | | | 16,603 | | | | — | | | | — | |
| | | |
| Shares issued-reinvested from distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | 55 | | | | 108 | | | | — | | | | — | |
| Class B | | | — | | | | — | | | | 2 | | | | 13 | | | | — | | | | — | |
| Class C | | | — | | | | — | | | | 9 | | | | 22 | | | | — | | | | — | |
| Class I | | | — | (F) | | | — | | | | 2 | | | | — | (F) | | | — | | | | — | |
| Class I2 | | | 51 | | | | — | | | | | | | | | | | | — | | | | — | |
| Class P | | | 10 | | | | — | | | | 121 | | | | 322 | | | | | | | | | |
| | | |
| | | | 61 | | | | — | | | | 189 | | | | 465 | | | | — | | | | — | |
| | | |
| Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (1,647 | ) | | | (1,176 | ) | | | (2,664 | ) | | | (842 | ) | | | (6,093 | ) | | | (6,565 | ) |
| Class B | | | (187 | ) | | | (278 | ) | | | (108 | ) | | | (186 | ) | | | (345 | ) | | | (393 | ) |
| Class C | | | (319 | ) | | | (298 | ) | | | (312 | ) | | | (214 | ) | | | (2,491 | ) | | | (1,833 | ) |
| Class I | | | (275 | ) | | | (4 | ) | | | (166 | ) | | | (3 | ) | | | (1,848 | ) | | | (649 | ) |
| Class I2 | | | (713 | ) | | | (5,908 | ) | | | | | | | | | | | (256 | ) | | | (35 | ) |
| Class P | | | (2,751 | ) | | | (1,807 | ) | | | (3,127 | ) | | | (7,410 | ) | | | | | | | | |
| | | |
| | | | (5,892 | ) | | | 9,471 | | | | (6,377 | ) | | | (8,655 | ) | | | (11,033 | ) | | | (9,475 | ) |
| | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 274 | | | | 455 | | | | 209 | | | | 403 | | | | 122 | | | | 400 | |
| Class B | | | (299 | ) | | | (492 | ) | | | (210 | ) | | | (404 | ) | | | (128 | ) | | | (417 | ) |
| | | |
| | | | (25 | ) | | | (37 | ) | | | (1 | ) | | | (1 | ) | | | (6 | ) | | | (17 | ) |
| | | |
Net increase (decrease) in shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 3,358 | | | | (396 | ) | | | 140 | | | | 1,074 | | | | 656 | | | | 1,305 | |
| Class B | | | (409 | ) | | | (641 | ) | | | (257 | ) | | | (313 | ) | | | (399 | ) | | | (317 | ) |
| Class C | | | 15 | | | | (129 | ) | | | 543 | | | | 184 | | | | (144 | ) | | | 1,232 | |
| Class I | | | 795 | | | | 80 | | | | 505 | | | | 12 | | | | 1,151 | | | | 2,107 | |
| Class I2 | | | (565 | ) | | | (3,858 | ) | | | | | | | | | | | (216 | ) | | | 106 | |
| Class P | | | (1,620 | ) | | | 10,647 | | | | (2,092 | ) | | | 9,310 | | | | | | | | | |
| | | |
| | | | 1,574 | | | | 5,703 | | | | (1,161 | ) | | | 10,267 | | | | 1,048 | | | | 4,433 | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 86 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica TS&W International | | | Transamerica WMC Diversified | | | Transamerica WMC Diversified | |
| | | Equity | | | Equity(L) | | | Growth | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011(N) | | | 2010(R) * | | | 2011 | | | 2010(C) (O) | | | 2011 | | | 2010(C) | |
| |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 3,183 | | | $ | 1,185 | | | $ | 444 | | | $ | 11,516 | | | $ | (33 | ) | | $ | 1,316 | |
Net realized gain (loss)(D) | | | 1,747 | | | | 2,129 | | | | 110,535 | | | | 12,131 | | | | 58,086 | | | | 208,600 | |
| Net change in unrealized appreciation (depreciation) | | | (10,477 | ) | | | 5,643 | | | | (76,621 | ) | | | 75,160 | | | | 9,382 | | | | (14,928 | ) |
| | | |
Net increase (decrease) in net assets resulting from operations | | | (5,547 | ) | | | 8,957 | | | | 34,358 | | | | 98,807 | | | | 67,435 | | | | 194,988 | |
| | | |
| Net equalization credit and charges | | | — | | | | — | | | | (5,091 | ) | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | (1,049 | ) | | | (844 | ) | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | (879 | ) | | | | | | | | |
| Class A | | | — | | | | | | | | (914 | ) | | | (118 | ) | | | — | | | | — | |
| Class B | | | | | | | | | | | (19 | ) | | | (5 | ) | | | — | | | | — | |
| Class C | | | — | | | | | | | | (61 | ) | | | (8) | | | | — | | | | — | |
| Class I | | | — | | | | | | | | (7 | ) | | | — | (E) | | | — | | | | (45 | ) |
| Class I2 | | | | | | | | | | | (6,482 | ) | | | (144 | ) | | | — | | | | (3,761 | ) |
| Class P | | | | | | | | | | | (4,645 | ) | | | (519 | ) | | | — | | | | (2,080 | ) |
| | | |
Total distributions to shareholders | | | (1,049 | ) | | | (844 | ) | | | (12,128 | ) | | | (1,673 | ) | | | — | | | | (5,886 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | 1,812 | | | | 15,234 | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | 2,312 | | | | | | | | | |
| Class A | | | 458 | | | | | | | | 2,457 | | | | 1,803 | | | | 110,526 | | | | 13,236 | |
| Class B | | | | | | | | | | | 391 | | | | 466 | | | | 1,517 | | | | 2,191 | |
| Class C | | | 28 | | | | | | | | 505 | | | | 413 | | | | 2,496 | | | | 1,883 | |
| Class I | | | 7,302 | | | | | | | | 1,072 | | | | 469 | | | | 4,479 | | | | 12,918 | |
| Class I2 | | | 50,397 | | | | | | | | 60,732 | | | | 273,045 | | | | 62,445 | | | | 40,492 | |
| Class P | | | | | | | | | | | 49,683 | | | | 46,384 | | | | 10,161 | | | | 26,286 | |
| Class T | | | | | | | | | | | | | | | | | | | 4,639 | | | | 3,704 | |
| | | |
| | | | 59,997 | | | | 15,234 | | | | 114,840 | | | | 324,892 | | | | 196,263 | | | | 100,710 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Issued from fund acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 100 | | | | | | | | — | | | | 86,981 | | | | — | | | | — | |
| Class B | | | | | | | | | | | — | | | | 10,090 | | | | — | | | | — | |
| Class C | | | 100 | | | | | | | | — | | | | 16,272 | | | | — | | | | — | |
| Class I | | | 83,612 | | | | | | | | — | | | | — | | | | — | | | | — | |
| Class I2 | | | — | (E) | | | | | | | — | | | | 63,778 | | | | — | | | | 80,466 | |
| Class P | | | | | | | | | | | — | | | | 276,775 | | | | — | | | | 459,628 | |
| | | |
| | | | 83,812 | | | | — | | | | — | | | | 453,896 | | | | — | | | | 540,094 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends and distributions reinvested: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | 1,003 | | | | 816 | | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | 552 | | | | | | | | | |
| Class A | | | — | | | | | | | | 882 | | | | 113 | | | | — | | | | — | |
| Class B | | | | | | | | | | | 18 | | | | 5 | | | | — | | | | — | |
| Class C | | | — | | | | | | | | 57 | | | | 8 | | | | — | | | | — | |
| Class I | | | — | | | | | | | | 6 | | | | — | (E) | | | — | | | | 4 | |
| Class I2 | | | — | | | | | | | | 6,482 | | | | 144 | | | | — | | | | 3,733 | |
| Class P | | | | | | | | | | | 2,688 | | | | 325 | | | | — | | | | 2,040 | |
| | | |
| | | | 1,003 | | | | 816 | | | | 10,133 | | | | 1,147 | | | | — | | | | 5,777 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Redeemed due to acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | (83,612 | ) | | | — | | | | — | | | | | | | | — | | | | — | |
| Investor Class | | | | | | | — | | | | — | | | | (276,775 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | (1,336 | ) | | | (13,496 | ) | | | | | | | | | | | | | | | | |
| Investor Class | | | | | | | | | | | | | | | (2,056 | ) | | | | | | | | |
| Class A | | | (40 | ) | | | | | | | (14,152 | ) | | | (15,911 | ) | | | (64,099 | ) | | | (63,192 | ) |
| Class B | | | | | | | | | | | (1,115 | ) | | | (1,542 | ) | | | (4,488 | ) | | | (6,687 | ) |
| Class C | | | (1 | ) | | | | | | | (2,596 | ) | | | (3,183 | ) | | | (7,483 | ) | | | (8,859 | ) |
| Class I | | | (2,844 | ) | | | | | | | (314 | ) | | | (62 | ) | | | (1,499 | ) | | | (10,518 | ) |
| Class I2 | | | — | (E) | | | | | | | (134,434 | ) | | | (14,522 | ) | | | (139,238 | ) | | | (421,721 | ) |
| Class P | | | | | | | | | | | (220,859 | ) | | | (34,102 | ) | | | (93,202 | ) | | | (249,854 | ) |
| Class T | | | | | | | | | | | | | | | | | | | (17,820 | ) | | | (13,273 | ) |
| | | |
| | | | (4,221 | ) | | | (13,496 | ) | | | (373,470 | ) | | | (71,378 | ) | | | (327,829 | ) | | | (774,104 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Redemption fee: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | — | | | | 4 | | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | 1,868 | | | | 2,053 | | | | 7,139 | | | | 10,681 | |
| Class B | | | | | | | | | | | (1,868 | ) | | | (2,053 | ) | | | (7,139 | ) | | | (10,681 | ) |
| | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Fair fund settlement: | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | | | | | — | (E) | | | 73 | | | | — | | | | 1 | |
| Class B | | | | | | | | | | | — | (E) | | | 8 | | | | — | | | | — | (E) |
| Class C | | | — | | | | | | | | — | (E) | | | 13 | | | | — | | | | — | (E) |
| Class I | | | — | | | | | | | | — | (E) | | | — | (E) | | | — | | | | — | (E) |
| Class I2 | | | — | | | | | | | | 2 | | | | 275 | | | | — | | | | 1 | |
| Class P | | | | | | | | | | | 2 | | | | 242 | | | | — | | | | 1 | |
| Class T | | | | | | | | | | | | | | | | | | | — | | | | — | (E) |
| | | |
| | | | — | | | | — | | | | 4 | | | | 611 | | | | — | | | | 3 | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 87 | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica TS&W International | | | Transamerica WMC Diversified | | | Transamerica WMC Diversified | |
| | | Equity | | | Equity(L) | | | Growth | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2011(N) | | | 2010 (R) * | | | 2011 | | | 2010(C) (O) | | | 2011 | | | 2010(C) | |
| Net income equalization: | | | — | | | | — | | | | 5,091 | | | | — | | | | — | | | | — | |
| | | | |
| |
| | | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | 56,979 | | | | 2,558 | | | | (243,402 | ) | | | 432,393 | | | | (131,566 | ) | | | (127,520 | ) |
| | | | |
| |
| | | | |
Net increase (decrease) in net assets | | | 50,383 | | | | 10,671 | | | | (226,263 | ) | | | 529,527 | | | | (64,131 | ) | | | 61,582 | |
| | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 75,271 | | | $ | 64,600 | | | $ | 789,349 | | | $ | 259,822 | | | $ | 1,155,916 | | | $ | 1,094,334 | |
| | | | |
| End of year | | $ | 125,654 | | | $ | 75,271 | | | $ | 563,086 | | | $ | 789,349 | | | $ | 1,091,785 | | | $ | 1,155,916 | |
| | | | |
Undistributed net investment income | | $ | 3,001 | | | $ | 953 | | | $ | — | | | $ | 10,396 | | | $ | — | | | $ | — | |
| | | | |
| |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | 136 | | | | 1,216 | | | | | | | | | | | | | | | | | |
| Investor class | | | | | | | | | | | | | | | 139 | | | | | | | | | |
| Class A | | | 32 | | | | | | | | 165 | | | | 135 | | | | 11,597 | | | | 1,615 | |
| Class B | | | | | | | | | | | 26 | | | | 36 | | | | 172 | | | | 288 | |
| Class C | | | 1 | | | | | | | | 33 | | | | 31 | | | | 283 | | | | 248 | |
| Class I | | | 526 | | | | | | | | 68 | | | | 33 | | | | 449 | | | | 1,551 | |
| Class I2 | | | 3,429 | | | | | | | | 3,930 | | | | 21,090 | | | | 6,336 | | | | 4,973 | |
| Class P | | | | | | | | | | | 3,227 | | | | 3,606 | | | | 1,062 | | | | 3,236 | |
| Class T | | | | | | | | | | | | | | | | | | | 169 | | | | 158 | |
| | | | |
| | | | 4,124 | | | | 1,216 | | | | 7,449 | | | | 25,070 | | | | 20,068 | | | | 12,069 | |
| | | | |
| Shares issued on fund acquisition: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 7 | | | | | | | | — | | | | 6,767 | | | | — | | | | — | |
| Class B | | | | | | | | | | | — | | | | 785 | | | | — | | | | — | |
| Class C | | | 7 | | | | | | | | — | | | | 1,266 | | | | — | | | | — | |
| Class I | | | 5,502 | | | | | | | | — | | | | — | | | | — | | | | 9,765 | |
| Class I2 | | | — | (F) | | | | | | | — | | | | 4,961 | | | | — | | | | 9,765 | |
| Class P | | | | | | | | | | | — | | | | 21,531 | | | | — | | | | 56,955 | |
| | | | |
| | | | 5,516 | | | | — | | | | — | | | | 35,310 | | | | — | | | | 66,720 | |
| | | | |
| Shares issued-reinvested from distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | 71 | | | | 64 | | | | | | | | | | | | | | | | | |
| Investor class | | | | | | | | | | | | | | | 43 | | | | | | | | | |
| Class A | | | — | | | | | | | | 58 | | | | 9 | | | | — | | | | — | |
| Class B | | | | | | | | | | | 1 | | | | — | (F) | | | — | | | | — | |
| Class C | | | — | | | | | | | | 4 | | | | 1 | | | | — | | | | — | |
| Class I | | | — | | | | | | | | — | (F) | | | — | (F) | | | — | | | | — | (F) |
| Class I2 | | | — | | | | | | | | 427 | | | | 11 | | | | — | | | | 459 | |
| Class P | | | | | | | | | | | 177 | | | | 25 | | | | — | | | | 256 | |
| | | | |
| | | | 71 | | | | 64 | | | | 667 | | | | 89 | | | | — | | | | 715 | |
| | | | |
| Shares Redeemed due to acquisition | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | (5,502 | ) | | | — | | | | — | | | | | | | | — | | | | — | |
| Investor class | | | | | | | — | | | | — | | | | (21,531 | ) | | | — | | | | — | |
| | | | |
| Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | (94 | ) | | | (1,039 | ) | | | | | | | | | | | | | | | | |
| Investor class | | | | | | | | | | | | | | | (166 | ) | | | | | | | | |
| Class A | | | (3 | ) | | | | | | | (933 | ) | | | (1,209 | ) | | | (6,656 | ) | | | (7,654 | ) |
| Class B | | | | | | | | | | | (74 | ) | | | (118 | ) | | | (508 | ) | | | (881 | ) |
| Class C | | | — | (F) | | | | | | | (173 | ) | | | (242 | ) | | | (845 | ) | | | (1,162 | ) |
| Class I | | | (195 | ) | | | | | | | (21 | ) | | | (4 | ) | | | (154 | ) | | | (1,234 | ) |
| Class I2 | | | — | (F) | | | | | | | (9,517 | ) | | | (1,113 | ) | | | (14,915 | ) | | | (51,333 | ) |
| Class P | | | | | | | | | | | (14,091 | ) | | | (2,583 | ) | | | (9,612 | ) | | | (30,698 | ) |
| Class T | | | | | | | | | | | | | | | | | | | (647 | ) | | | (581 | ) |
| | | | |
| | | | (292 | ) | | | (1,039 | ) | | | (24,809 | ) | | | (5,435 | ) | | | (33,337 | ) | | | (93,543 | ) |
| | | | |
| Automatic conversions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | 125 | | | | 159 | | | | 748 | | | | 1,325 | |
| Class B | | | | | | | | | | | (125 | ) | | | (159 | ) | | | (812 | ) | | | (1,429 | ) |
| | | | |
| | | | | | | | — | | | | — | | | | — | | | | (64 | ) | | | (104 | ) |
| | | | |
Net increase (decrease) in shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Level | | | (5,389 | ) | | | 241 | | | | | | | | | | | | | | | | | |
| Investor class | | | | | | | | | | | | | | | (21,515 | ) | | | | | | | | |
| Class A | | | 36 | | | | | | | | (585 | ) | | | 5,861 | | | | 5,689 | | | | (4,714 | ) |
| Class B | | | | | | | | | | | (172 | ) | | | 544 | | | | (1,148 | ) | | | (2,022 | ) |
| Class C | | | 8 | | | | | | | | (136 | ) | | | 1,056 | | | | (562 | ) | | | (914 | ) |
| Class I | | | 5,833 | | | | | | | | 47 | | | | 29 | | | | 295 | | | | 317 | |
| Class I2 | | | 3,429 | | | | | | | | (5,160 | ) | | | 24,949 | | | | (8,579 | ) | | | (36,136 | ) |
| Class P | | | | | | | | | | | (10,687 | ) | | | 22,579 | | | | (8,550 | ) | | | 29,749 | |
| Class T | | | | | | | | | | | | | | | | | | | (478 | ) | | | (423 | ) |
| | | | |
| | | | 3,917 | | | | 241 | | | | (16,693 | ) | | | 33,503 | | | | (13,333 | ) | | | (14,143 | ) |
| | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 88 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the years ended:
(all amounts in thousands)
| | | | | |
| | | Transamerica | |
| | | WMC Quality | |
| | | Value(P) | |
| | | October 31, 2011 | |
| |
From operations: | | | | |
| Net investment income | | $ | 18,749 | |
Net realized gain (loss)(D) | | | (17,118 | ) |
| Net change in unrealized appreciation (depreciation) | | | | |
Net increase in net assets resulting from operations | | | 2,423 | |
| | | | |
| | | | 4,054 | |
| | | | |
| | | | | |
Distributions to shareholders: | | | | |
| From net investment income: | | | | |
| Class A | | | (8 | ) |
| Class C | | | (7 | ) |
| Class I | | | (7 | ) |
| Class I2 | | | (16,285 | ) |
| | | | |
Total distributions to shareholders | | | (16,307 | ) |
| | | | |
| | | | | |
Capital share transactions: | | | | |
| Proceeds from shares sold: | | | | |
| Class A | | | 1,252 | |
| Class C | | | 1,967 | |
| Class I | | | 7,832 | |
| Class I2 | | | 1,510,101 | |
| | | | |
| | | | 1,521,152 | |
| | | | |
| Dividends and distributions reinvested: | | | | |
| Class A | | | 7 | |
| Class C | | | 6 | |
| Class I | | | 7 | |
| Class I2 | | | 16,285 | |
| | | | |
| | | | 16,305 | |
| | | | |
| Cost of shares redeemed: | | | | |
| Class A | | | (186 | ) |
| Class C | | | (131 | ) |
| Class I | | | (330 | ) |
| Class I2 | | | (185,461 | ) |
| | | | |
| | | | (186,108 | ) |
| | | | |
Net increase in net assets resulting from capital shares transactions | | | 1,351,349 | |
| | | | |
| | | | | |
Net increase in net assets | | | 1,339,096 | |
| | | | |
| | | | | |
Net assets: | | | | |
| Beginning of year | | $ | — | |
| | | | |
| End of year | | $ | 1,339,096 | |
| | | | |
Undistributed net investment income | | $ | 2,504 | |
| | | | |
| | | | | |
Share activity: | | | | |
| Shares issued: | | | | |
| Class A | | | 115 | |
| Class C | | | 182 | |
| Class I | | | 791 | |
| Class I2 | | | 145,726 | |
| | | | |
| | | | 146,814 | |
| | | | |
| Shares issued-reinvested from distributions: | | | | |
| Class A | | | 1 | |
| Class C | | | — | (F) |
| Class I | | | 1 | |
| Class I2 | | | 1,557 | |
| | | | |
| | | | 1,559 | |
| | | | |
| Shares redeemed: | | | | |
| Class A | | | (17 | ) |
| Class C | | | (12 | ) |
| Class I | | | (31 | ) |
| Class I2 | | | (18,497 | ) |
| | | | |
| | | | (18,557 | ) |
| | | | |
Net increase (decrease) in shares outstanding: | | | | |
| Investor Class | | | | |
| Class A | | | 99 | |
| Class C | | | 170 | |
| Class I | | | 761 | |
| Class I2 | | | 128,786 | |
| | | | |
| | | | 129,816 | |
| | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 89 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the year ended:
(all amounts in thousands)
| | |
| (A) | | Formerly, Transamerica Flexible Income. |
| |
| (B) | | Formerly, Transamerica Money Market. |
| |
| (C) | | Effective November 30, 2009, all previously existing Class I shares were re-designated as Class I2 shares. |
| |
| (D) | | Net realized gain (loss) includes all items as listed in the Statement of Operations. |
| |
| (E) | | Rounds to less than $1 or $(1). |
| |
| (F) | | Rounds to less than 1 or (1) share. |
| |
| (G) | | Formerly, Transamerica Short-Term Bond. |
| |
| (H) | | Formerly, Transamerica Focus. |
| |
| (I) | | Formerly, Transamerica Growth Opportunities. |
| |
| (J) | | Formerly, Transamerica Balanced. |
| |
| (K) | | Formerly, Transamerica Small/Mid Cap Value. |
| |
| (L) | | Formerly, Transamerica Diversified Equity. |
| |
| (M) | | Commenced operations August 31,2011. |
| |
| (N) | | For this period, information is based on 120 days as TS&W International Equity Portfolio and 245 days as Transamerica TS&W International Equity. The 120 days represents Fund Level activity, which reflects activity of the predecessor’s fund. |
| |
| (O) | | For this period, information is based on 13 days as Transamerica Premier Diversified Equity Fund and 352 days as Transamerica WMC Diversified Equity (formerly, Transamerica Diversified Equity). The 13 days represents Investor Class activity, which reflects activity of the predecessor’s fund. |
| |
| (P) | | Commenced operations November 15, 2011. |
| |
| (Q) | | For this period, information is based on 13 days as Transamerica Premier Focus and 352 days as Transamerica Morgan Stanley Capital Growth (Formerly, Transamerica Focus). The 13 days represents Investor Class activity, which represents activity of the predecessor’s fund. |
| |
| (R) | | Formerly, TS&W International Equity. |
| |
| * | | Prior to November 1, 2010, the statement of changes in net assets were audited by another independent registered public accounting firm. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 90 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS
For the years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Flexible Income(A) |
| | | Class A |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.99 | | | $ | 8.33 | | | $ | 7.22 | | | $ | 9.14 | | | $ | 9.38 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.51 | | | | 0.50 | | | | 0.46 | | | | 0.44 | | | | 0.48 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.16 | ) | | | 0.70 | | | | 1.08 | | | | (1.89 | ) | | | (0.25 | ) |
| | | |
| Total from investment operations | | | 0.35 | | | | 1.20 | | | | 1.54 | | | | (1.45 | ) | | | 0.23 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.51 | ) | | | (0.54 | ) | | | (0.43 | ) | | | (0.47 | ) | | | (0.47 | ) |
| | | |
| Total distributions | | | (0.51 | ) | | | (0.54 | ) | | | (0.43 | ) | | | (0.47 | ) | | | (0.47 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.83 | | | $ | 8.99 | | | $ | 8.33 | | | $ | 7.22 | | | $ | 9.14 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 3.93 | % | | | 14.89 | % | | | 22.30 | % | | | (16.57 | %) | | | 2.42 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 65,393 | | | $ | 55,103 | | | $ | 24,173 | | | $ | 13,360 | | | $ | 15,409 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.97 | % | | | 1.07 | % (D) | | | 1.47 | % | | | 1.39 | % | | | 1.40 | % |
| Before reimbursement/fee waiver | | | 1.07 | % | | | 1.15 | %(D) | | | 1.47 | % | | | 1.39 | % | | | 1.40 | % |
| Net investment income, to average net assets | | | 5.70 | % | | | 5.79 | % | | | 6.03 | % | | | 5.12 | % | | | 5.12 | % |
| Portfolio turnover rate | | | 42 | % | | | 120 | % | | | 169 | % | | | 98 | % | | | 108 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Flexible Income(A) |
| | | Class B |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.00 | | | $ | 8.34 | | | $ | 7.23 | | | $ | 9.14 | | | $ | 9.39 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.44 | | | | 0.43 | | | | 0.40 | | | | 0.38 | | | | 0.42 | |
| Net realized and change in unrealized gain (loss) on | | | (0.18 | ) | | | 0.71 | | | | 1.09 | | | | (1.88 | ) | | | (0.26 | ) |
| investments | | | | | | | | | | | | | | | | | | | | |
| | | |
| Total from investment operations | | | 0.26 | | | | 1.14 | | | | 1.49 | | | | (1.50 | ) | | | 0.16 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.43 | ) | | | (0.48 | ) | | | (0.38 | ) | | | (0.41 | ) | | | (0.41 | ) |
| | | |
| Total distributions | | | (0.43 | ) | | | (0.48 | ) | | | (0.38 | ) | | | (0.41 | ) | | | (0.41 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.83 | | | $ | 9.00 | | | $ | 8.34 | | | $ | 7.23 | | | $ | 9.14 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 2.96 | % | | | 14.02 | % | | | 21.39 | % | | | (17.03 | %) | | | 1.66 | % |
| | | |
Net assets end of year (000’s) | | $ | 7,066 | | | $ | 10,614 | | | $ | 8,161 | | | $ | 8,628 | | | $ | 17,007 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.82 | % | | | 1.88 | % (D) | | | 2.16 | % | | | 2.05 | % | | | 2.04 | % |
| Before reimbursement/fee waiver | | | 1.82 | % | | | 1.88 | % (D) | | | 2.16 | % | | | 2.05 | % | | | 2.04 | % |
| Net investment income, to average net assets | | | 4.87 | % | | | 4.97 | % | | | 5.36 | % | | | 4.42 | % | | | 4.48 | % |
| Portfolio turnover rate | | | 42 | % | | | 120 | % | | | 169 | % | | | 98 | % | | | 108 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 91 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Flexible Income(A) |
| | | Class C |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.96 | | | $ | 8.31 | | | $ | 7.21 | | | $ | 9.12 | | | $ | 9.36 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.45 | | | | 0.44 | | | | 0.41 | | | | 0.39 | | | | 0.42 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.17 | ) | | | 0.70 | | | | 1.08 | | | | (1.88 | ) | | | (0.25 | ) |
| | | |
| Total from investment operations | | | 0.28 | | | | 1.14 | | | | 1.49 | | | | (1.49 | ) | | | 0.17 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.45 | ) | | | (0.49 | ) | | | (0.39 | ) | | | (0.42 | ) | | | (0.41 | ) |
| | | |
| Total distributions | | | (0.45 | ) | | | (0.49 | ) | | | (0.39 | ) | | | (0.42 | ) | | | (0.41 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.79 | | | $ | 8.96 | | | $ | 8.31 | | | $ | 7.21 | | | $ | 9.12 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 3.21 | % | | | 14.15 | % | | | 21.50 | % | | | (16.98 | %) | | | 1.81 | % |
| | | |
| |
Net assets end of year (000’s) | | $ | 50,314 | | | $ | 36,264 | | | $ | 12,978 | | | $ | 5,981 | | | $ | 8,982 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.68 | % | | | 1.74 | % (D) | | | 2.06 | % | | | 1.97 | % | | | 2.00 | % |
| Before reimbursement/fee waiver | | | 1.68 | % | | | 1.74 | % (D) | | | 2.06 | % | | | 1.97 | % | | | 2.00 | % |
| Net investment income, to average net assets | | | 4.98 | % | | | 5.14 | % | | | 5.43 | % | | | 4.52 | % | | | 4.51 | % |
| Portfolio turnover rate | | | 42 | % | | | 120 | % | | | 169 | % | | | 98 | % | | | 108 | % |
| | | |
| | | | | | | | | |
| | | Transamerica AEGON Flexible |
| | | Income(A) |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 9.02 | | | $ | 8.48 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | 0.53 | | | | 0.50 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.16 | ) | | | 0.57 | |
| | | |
| Total from investment operations | | | 0.37 | | | | 1.07 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.54 | ) | | | (0.53 | ) |
| | | |
| Total distributions | | | (0.54 | ) | | | (0.53 | ) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 8.85 | | | $ | 9.02 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 4.19 | % | | | 13.10 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 19,992 | | | $ | 9,787 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 0.69 | % | | | 0.76 | % (H) |
| Before reimbursement/fee waiver | | | 0.69 | % | | | 0.76 | % (H) |
| Net investment income, to average net assets | | | 5.93 | % | | | 6.25 | % (H) |
| Portfolio turnover rate | | | 42 | % | | | 120 | % (G) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 92 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Flexible Income(A) |
| | | Class I2(I) |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.03 | | | $ | 8.37 | | | $ | 7.25 | | | $ | 9.17 | | | $ | 9.42 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.55 | | | | 0.53 | | | | 0.50 | | | | 0.50 | | | | 0.53 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.17 | ) | | | 0.71 | | | | 1.10 | | | | (1.90 | ) | | | (0.26 | ) |
| | | |
| Total from investment operations | | | 0.38 | | | | 1.24 | | | | 1.60 | | | | (1.40 | ) | | | 0.27 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.55 | ) | | | (0.58 | ) | | | (0.48 | ) | | | (0.52 | ) | | | (0.52 | ) |
| | | |
| Total distributions | | | (0.55 | ) | | | (0.58 | ) | | | (0.48 | ) | | | (0.52 | ) | | | (0.52 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.86 | | | $ | 9.03 | | | $ | 8.37 | | | $ | 7.25 | | | $ | 9.17 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 4.31 | % | | | 15.39 | % | | | 23.16 | % | | | (16.02 | %) | | | 2.93 | % |
| | | |
Net assets end of year (000’s) | | $ | 109,052 | | | $ | 146,631 | | | $ | 132,177 | | | $ | 128,108 | | | $ | 370,611 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.58 | % | | | 0.64 | % (D) | | | 0.85 | % | | | 0.77 | % | | | 0.80 | % |
| Before reimbursement/fee waiver | | | 0.58 | % | | | 0.64 | % (D) | | | 0.85 | % | | | 0.77 | % | | | 0.80 | % |
| Net investment income, to average net assets | | | 6.10 | % | | | 6.18 | % | | | 6.64 | % | | | 5.67 | % | | | 5.71 | % |
| Portfolio turnover rate | | | 42 | % | | | 120 | % | | | 169 | % | | | 98 | % | | | 108 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON High Yield Bond |
| | | Class A |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.16 | | | $ | 8.45 | | | $ | 6.31 | | | $ | 9.12 | | | $ | 9.19 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.61 | | | | 0.66 | | | | 0.65 | | | | 0.64 | | | | 0.60 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.21 | ) | | | 0.73 | | | | 2.14 | | | | (2.83 | ) | | | (0.07 | ) |
| | | |
| Total from investment operations | | | 0.40 | | | | 1.39 | | | | 2.79 | | | | (2.19 | ) | | | 0.53 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.61 | ) | | | (0.68 | ) | | | (0.66 | ) | | | (0.62 | ) | | | (0.60 | ) |
| | | |
| Total distributions | | | (0.61 | ) | | | (0.68 | ) | | | (0.66 | ) | | | (0.62 | ) | | | (0.60 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.95 | | | $ | 9.16 | | | $ | 8.45 | | | $ | 6.31 | | | $ | 9.12 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 4.41 | % | | | 17.21 | % | | | 47.58 | % | | | (25.46 | %) | | | 5.90 | % |
| | | |
Net assets end of year (000’s) | | $ | 228,920 | | | $ | 193,332 | | | $ | 67,290 | | | $ | 24,506 | | | $ | 35,147 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.17 | % | | | 1.15 | % | | | 1.19 | % | | | 1.16 | % | | | 1.15 | % |
| Before reimbursement/fee waiver | | | 1.17 | % | | | 1.15 | % | | | 1.19 | % | | | 1.16 | % | | | 1.15 | % |
| Net investment income, to average net assets | | | 6.65 | % | | | 7.52 | % | | | 9.08 | % | | | 7.65 | % | | | 6.45 | % |
| Portfolio turnover rate | | | 93 | % | | | 91 | % | | | 58 | % | | | 38 | % | | | 80 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 93 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON High Yield Bond | |
| | | | | | | | | | | Class B | | | | | | | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.15 | | | $ | 8.44 | | | $ | 6.30 | | | $ | 9.11 | | | $ | 9.18 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.55 | | | | 0.61 | | | | 0.60 | | | | 0.58 | | | | 0.53 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.21 | ) | | | 0.72 | | | | 2.15 | | | | (2.83 | ) | | | (0.06 | ) |
| | | |
| Total from investment operations | | | 0.34 | | | | 1.33 | | | | 2.75 | | | | (2.25 | ) | | | 0.47 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.54 | ) | | | (0.62 | ) | | | (0.61 | ) | | | (0.56 | ) | | | (0.54 | ) |
| | | |
| Total distributions | | | (0.54 | ) | | | (0.62 | ) | | | (0.61 | ) | | | (0.56 | ) | | | (0.54 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.95 | | | $ | 9.15 | | | $ | 8.44 | | | $ | 6.30 | | | $ | 9.11 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 3.81 | % | | | 16.38 | % | | | 46.69 | % | | | (26.04 | %) | | | 5.19 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 9,431 | | | $ | 13,887 | | | $ | 11,898 | | | $ | 9,091 | | | $ | 21,370 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.83 | % | | | 1.83 | % | | | 1.91 | % | | | 1.85 | % | | | 1.83 | % |
| Before reimbursement/fee waiver | | | 1.84 | % | | | 1.83 | % | | | 1.91 | % | | | 1.85 | % | | | 1.83 | % |
| Net investment income, to average net assets | | | 5.99 | % | | | 6.93 | % | | | 8.56 | % | | | 6.83 | % | | | 5.77 | % |
| Portfolio turnover rate | | | 93 | % | | | 91 | % | | | 58 | % | | | 38 | % | | | 80 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON High Yield Bond | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.13 | | | $ | 8.42 | | | $ | 6.30 | | | $ | 9.10 | | | $ | 9.17 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.55 | | | | 0.61 | | | | 0.60 | | | | 0.58 | | | | 0.53 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.21 | ) | | | 0.73 | | | | 2.14 | | | | (2.82 | ) | | | (0.06 | ) |
| | | |
| Total from investment operations | | | 0.34 | | | | 1.34 | | | | 2.74 | | | | (2.24 | ) | | | 0.47 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.55 | ) | | | (0.63 | ) | | | (0.62 | ) | | | (0.56 | ) | | | (0.54 | ) |
| | | |
| Total distributions | | | (0.55 | ) | | | (0.63 | ) | | | (0.62 | ) | | | (0.56 | ) | | | (0.54 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.92 | | | $ | 9.13 | | | $ | 8.42 | | | $ | 6.30 | | | $ | 9.10 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 3.84 | % | | | 16.54 | % | | | 46.63 | % | | | (25.89 | %) | | | 5.21 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 48,789 | | | $ | 41,810 | | | $ | 19,548 | | | $ | 5,429 | | | $ | 10,160 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.76 | % | | | 1.77 | % | | | 1.81 | % | | | 1.80 | % | | | 1.83 | % |
| Before reimbursement/fee waiver | | | 1.76 | % | | | 1.77 | % | | | 1.81 | % | | | 1.80 | % | | | 1.83 | % |
| Net investment income, to average net assets | | | 6.07 | % | | | 6.96 | % | | | 8.23 | % | | | 6.93 | % | | | 5.77 | % |
| Portfolio turnover rate | | | 93 | % | | | 91 | % | | | 58 | % | | | 38 | % | | | 80 | % |
| | | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 94 | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | |
| | | Transamerica AEGON High | |
| | | Yield Bond | |
| | | Class I | |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 9.20 | | | $ | 8.55 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | 0.65 | | | | 0.63 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.21 | ) | | | 0.68 | |
| | | |
| Total from investment operations | | | 0.44 | | | | 1.31 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.64 | ) | | | (0.66 | ) |
| | | |
| Total distributions | | | (0.64 | ) | | | (0.66 | ) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 9.00 | | | $ | 9.20 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 4.95 | % | | | 15.92 | %(G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 82,736 | | | $ | 27,057 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 0.77 | % | | | 0.83 | %(H) |
| Before reimbursement/fee waiver | | | 0.78 | % | | | 0.83 | %(H) |
| Net investment income, to average net assets | | | 7.09 | % | | | 7.71 | %(H) |
| Portfolio turnover rate | | | 93 | % | | | 91 | %(G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON High Yield Bond | |
| | | Class I2(I) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.22 | | | $ | 8.50 | | | $ | 6.35 | | | $ | 9.17 | | | $ | 9.24 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.66 | | | | 0.71 | | | | 0.69 | | | | 0.69 | | | | 0.65 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.21 | ) | | | 0.73 | | | | 2.16 | | | | (2.85 | ) | | | (0.07 | ) |
| | | |
| Total from investment operations | | | 0.45 | | | | 1.44 | | | | 2.85 | | | | (2.16 | ) | | | 0.58 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.65 | ) | | | (0.72 | ) | | | (0.70 | ) | | | (0.66 | ) | | | (0.65 | ) |
| | | |
| Total distributions | | | (0.65 | ) | | | (0.72 | ) | | | (0.70 | ) | | | (0.66 | ) | | | (0.65 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.02 | | | $ | 9.22 | | | $ | 8.50 | | | $ | 6.35 | | | $ | 9.17 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 5.06 | % | | | 17.74 | % | | | 48.39 | % | | | (25.05 | %) | | | 6.39 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 388,633 | | | $ | 408,505 | | | $ | 472,936 | | | $ | 418,923 | | | $ | 331,300 | |
| | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.66 | % | | | 0.66 | % | | | 0.67 | % | | | 0.65 | % | | | 0.65 | % |
| Before reimbursement/fee waiver | | | 0.66 | % | | | 0.66 | % | | | 0.67 | % | | | 0.65 | % | | | 0.65 | % |
| Net investment income, to average net assets | | | 7.16 | % | | | 8.11 | % | | | 9.96 | % | | | 8.34 | % | | | 6.96 | % |
| Portfolio turnover rate | | | 93 | % | | | 91 | % | | | 58 | % | | | 38 | % | | | 80 | % |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 95 | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | |
| | Transamerica AEGON High Yield Bond | |
| | | Class P | |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(J) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 9.16 | | | $ | 8.48 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | 0.63 | | | | 0.65 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.20 | ) | | | 0.67 | |
| | | |
| Total from investment operations | | | 0.43 | | | | 1.32 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.63 | ) | | | (0.64 | ) |
| | | |
| Total distributions | | | (0.63 | ) | | | (0.64 | ) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 8.96 | | | $ | 9.16 | |
| | | |
Total return(C) | | | 4.81 | % | | | 16.21 | %(G) |
| | | |
Net assets end of year (000’s) | | $ | 19,253 | | | $ | 21,963 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 0.90 | % | | | 0.90 | %(H) |
| Before reimbursement/fee waiver | | | 1.08 | % | | | 1.07 | %(H) |
| Net investment income, to average net assets | | | 6.82 | % | | | 7.90 | %(H) |
| Portfolio turnover rate | | | 93 | % | | | 91 | %(G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Transamerica AEGON Money Market(K) |
| | | Class A |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.02 | | | | 0.05 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net realized and change in unrealized gain on investments | | | — | | | | — | (L) | | | — | (L) | | | — | (L) | | | — | |
| | | |
| Total from investment operations | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.02 | | | | 0.05 | |
| | | |
| Net Equalization credits and charges | | | — | | | | | | | | — | (L) | | | — | | | | — | (L) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.02 | ) | | | (0.05 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | — | | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.02 | ) | | | (0.05 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | — | %(M) | | | 0.01 | % | | | 0.21 | % | | | 2.52 | % | | | 4.61 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 112,490 | | | $ | 119,744 | | | $ | 146,598 | | | $ | 142,456 | | | $ | 95,766 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.20 | %(N) | | | 0.22 | %(N) | | | 0.60 | %(N) | | | 0.83 | % | | | 0.83 | % |
| Before reimbursement/fee waiver | | | 1.26 | % | | | 1.19 | % | | | 1.11 | % | | | 1.08 | % | | | 1.20 | % |
| Net investment income, to average net assets | | | — | %(M) | | | — | %(M) | | | 0.20 | % | | | 2.40 | % | | | 4.54 | % |
| | | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 96 | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Money Market(K) |
| | | Class B |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010 | | | October 31,
2009 | | | October 31,
2008 | | | October 31,
2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.02 | | | | 0.04 | |
| Net realized and change in unrealized gain on investments | | | — | | | | — | (L) | | | — | (L) | | | — | (L) | | | — | |
| | | |
| Total from investment operations | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.02 | | | | 0.04 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
| Net Equalization credits and charges | | | — | | | | — | (L) | | | — | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.02 | ) | | | (0.04 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | — | | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.02 | ) | | | (0.04 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | — | % (M) | | | 0.01 | % | | | 0.08 | % | | | 1.83 | % | | | 3.92 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 15,318 | | | $ | 19,442 | | | $ | 35,612 | | | $ | 40,110 | | | $ | 23,324 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.20 | % (N) | | | 0.21 | % (N) | | | 0.73 | % (N) | | | 1.48 | % | | | 1.48 | % |
| Before reimbursement/fee waiver | | | 1.89 | % | | | 1.81 | % | | | 1.75 | % | | | 1.75 | % | | | 1.83 | % |
| Net investment income, to average net assets | | | — | % (M) | | | — | % (M) | | | 0.08 | % | | | 1.75 | % | | | 3.87 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Money Market(K) |
| | | Class C |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010 | | | October 31,
2009 | | | October 31,
2008 | | | October 31,
2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.02 | | | | 0.04 | |
| Net realized and change in unrealized gain on investments | | | — | | | | — | (L) | | | — | (L) | | | — | (L) | | | | |
| | | |
| Total from investment operations | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.02 | | | | 0.04 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
| Net Equalization credits and charges | | | — | | | | — | (L) | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.02 | ) | | | (0.04 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | — | | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.02 | ) | | | (0.04 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | —% | (M) | | | 0.01 | % | | | 0.07 | % | | | 1.86 | % | | | 3.92 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 36,078 | | | $ | 33,800 | | | $ | 46,177 | | | $ | 59,991 | | | $ | 19,638 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.20 | % (N) | | | 0.22 | % (N) | | | 0.76 | % (N) | | | 1.48 | % | | | 1.48 | % |
| Before reimbursement/fee waiver | | | 1.73 | % | | | 1.66 | % | | | 1.64 | % | | | 1.67 | % | | | 1.73 | % |
| Net investment income, to average net assets | | | — | %(M) | | | — | % (M) | | | 0.07 | % | | | 1.65 | % | | | 3.88 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 97 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | |
| | | Transamerica AEGON Money Market(K) |
| | | Class I |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010(F) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | — | (L) | | | — | (L) |
| Net realized and change in unrealized gain on investments | | | — | | | | — | (L) |
| | | |
| Total from investment operations | | | — | (L) | | | — | (L) |
| | | |
| | | | | | | | | |
| | | |
| Net Equalization credits and charges | | | — | | | | — | (L) |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 0.01 | % | | | 0.01 | % (G) |
| | | |
Net assets end of year (000’s) | | $ | 55 | | | $ | 55 | |
| | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 0.19 | % (N) | | | 0.22 | % (H),(N) |
| Before reimbursement/fee waiver | | | 3.60 | % | | | 3.16 | % (H) |
| Net investment income, to average net assets | | | 0.02 | % | | | 0.01 | % (H) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Money Market(K) |
| | | Class I2(I) |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.03 | | | | 0.05 | |
| Net realized and change in unrealized gain on investments | | | — | | | | — | (L) | | | — | (L) | | | — | (L) | | | — | |
| | | |
| Total from investment operations | | | — | (L) | | | — | (L) | | | — | (L) | | | 0.03 | | | | 0.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
| Net Equalization credits and charges | | | — | | | | — | (L) | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.03 | ) | | | (0.05 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | — | | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) | | | — | (L) | | | (0.03 | ) | | | (0.05 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 0.01 | % | | | 0.01 | % | | | 0.35 | % | | | 2.84 | % | | | 4.98 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 17,612 | | | $ | 21,773 | | | $ | 34,119 | | | $ | 29,327 | | | $ | 34,673 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.19 | % (N) | | | 0.21 | % (N) | | | 0.45 | % (N) | | | 0.48 | % | | | 0.48 | % |
| Before reimbursement/fee waiver | | | 0.55 | % | | | 0.50 | % | | | 0.53 | % | | | 0.49 | % | | | 0.52 | % |
| Net investment income, to average net assets | | | 0.02 | % | | | 0.01 | % | | | 0.36 | % | | | 2.89 | % | | | 4.88 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 98 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the years ended:
| | | | | | | | | |
| | | Transamerica AEGON Money Market(K) |
| | | Class P |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010(J) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | — | (L) | | | — | (L) |
| Net realized and change in unrealized gain (loss) on investments | | | — | | | | — | (L) |
| | | |
| Total from investment operations | | | — | (L) | | | — | (L) |
| | | |
| | | | | | | | | |
| | | |
| Net Equalization credits and charges | | | — | | | | — | (L) |
| | | |
Distributions | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 1.00 | | | $ | 1.00 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 0.01 | % | | | 0.01 | % (G) |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 27,287 | | | $ | 32,059 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 0.19 | % (N) | | | 0.21 | % (H),(N) |
| Before reimbursement/fee waiver | | | 0.70 | % | | | 0.66 | % (H) |
| Net investment income, to average net assets | | | 0.02 | % | | | 0.01 | % (H) |
| | | |
| | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Short-Term Bond(O) |
| | | Class A |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010 | | | October 31,
2009 | | | October 31,
2008(EE) | |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 10.53 | | | $ | 10.26 | | | $ | 9.44 | | | $ | 10.00 | |
| | | |
| |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.37 | | | | 0.43 | | | | 0.51 | | | | 0.38 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.16 | ) | | | 0.29 | | | | 0.78 | | | | (0.54 | ) |
| | | |
| Total from investment operations | | | 0.21 | | | | 0.72 | | | | 1.29 | | | | (0.16 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.39 | ) | | | (0.45 | ) | | | (0.47 | ) | | | (0.40 | ) |
| Net realized gains on investments | | | (0.02 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.41 | ) | | | (0.45 | ) | | | (0.47 | ) | | | (0.40 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.33 | | | $ | 10.53 | | | $ | 10.26 | | | $ | 9.44 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(C) | | | 2.01 | % | | | 7.15 | % | | | 13.40 | % | | | (1.70 | %) (G) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 779,041 | | | $ | 856,959 | | | $ | 289,879 | | | $ | 5,663 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.82 | % | | | 0.83 | % | | | 0.91 | % | | | 1.11 | % (H) |
| Before reimbursement/fee waiver | | | 0.92 | % | | | 0.97 | % | | | 1.09 | % | | | 1.11 | % (H) |
| Net investment income, to average net assets | | | 3.58 | % | | | 4.16 | % | | | 5.14 | % | | | 3.92 | % (H) |
| Portfolio turnover rate | | | 51 | % | | | 54 | % | | | 77 | % | | | 67 | % (G) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 99 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Short-Term Bond(O) |
| | | Class C | | | Class I |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | October 31, | | | October 31, |
| For a share outstanding throughout each period | | 2011 | | 2010 | | 2009 | | 2008(EE) | | 2011 | | 2010(F) |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 10.51 | | | $ | 10.24 | | | $ | 9.42 | | | $ | 10.00 | | | $ | 10.35 | | | $ | 10.14 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.29 | | | | 0.36 | | | | 0.43 | | | | 0.32 | | | | 0.38 | | | | 0.39 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.17 | ) | | | 0.28 | | | | 0.80 | | | | (0.55 | ) | | | (0.16 | ) | | | 0.24 | |
| | | |
| Total from investment operations | | | 0.12 | | | | 0.64 | | | | 1.23 | | | | (0.23 | ) | | | 0.22 | | | | 0.63 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.30 | ) | | | (0.37 | ) | | | (0.41 | ) | | | (0.35 | ) | | | (0.40 | ) | | | (0.42 | ) |
| Net realized gains on investments | | | (0.02 | ) | | | — | | | | — | | | | — | | | | (0.02 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.32 | ) | | | (0.37 | ) | | | (0.41 | ) | | | (0.35 | ) | | | (0.42 | ) | | | (0.42 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.31 | | | $ | 10.51 | | | $ | 10.24 | | | $ | 9.42 | | | $ | 10.15 | | | $ | 10.35 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 1.23 | % | | | 6.32 | % | | | 12.74 | % | | | (2.43 | %)(G) | | | 2.16 | % | | | 6.34 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 846,464 | | | $ | 834,859 | | | $ | 317,130 | | | $ | 7,263 | | | $ | 270,667 | | | $ | 198,461 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.59 | % | | | 1.59 | % | | | 1.65 | % | | | 1.76 | %(H) | | | 0.64 | % | | | 0.65 | % (H) |
| Before reimbursement/fee waiver | | | 1.59 | % | | | 1.63 | % | | | 1.74 | % | | | 1.76 | % (H) | | | 0.64 | % | | | 0.67 | % (H) |
| Net investment income, to average net assets | | | 2.81 | % | | | 3.40 | % | | | 4.38 | % | | | 3.28 | % (H) | | | 3.75 | % | | | 4.17 | % (H) |
| Portfolio turnover rate | | | 51 | % | | | 54 | % | | | 77 | % | | | 67 | % (G) | | | 51 | % | | | 54 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AEGON Short-Term Bond(O) |
| | | Class I2(I) |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 10.34 | | | $ | 10.08 | | | $ | 9.28 | | | $ | 9.82 | | | $ | 9.84 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.40 | | | | 0.46 | | | | 0.50 | | | | 0.43 | | | | 0.47 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.17 | ) | | | 0.27 | | | | 0.80 | | | | (0.54 | ) | | | (0.04 | ) |
| | | |
| Total from investment operations | | | 0.23 | | | | 0.73 | | | | 1.30 | | | | (0.11 | ) | | | 0.43 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.41 | ) | | | (0.47 | ) | | | (0.50 | ) | | | (0.43 | ) | | | (0.45 | ) |
| Net realized gains on investments | | | (0.02 | ) | | | — | | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.43 | ) | | | (0.47 | ) | | | (0.50 | ) | | | (0.43 | ) | | | (0.45 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.14 | | | $ | 10.34 | | | $ | 10.08 | | | $ | 9.28 | | | $ | 9.82 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 2.28 | % | | | 7.37 | % | | | 14.44 | % | | | (1.22 | %) | | | 4.45 | % |
| | | |
Net assets end of year (000’s) | | $ | 924,917 | | | $ | 999,064 | | | $ | 710,660 | | | $ | 492,333 | | | $ | 563,889 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.53 | % | | | 0.53 | % | | | 0.63 | % | | | 0.68 | % | | | 0.67 | % |
| Before reimbursement/fee waiver | | | 0.53 | % | | | 0.58 | % | | | 0.69 | % | | | 0.68 | % | | | 0.67 | % |
| Net investment income, to average net assets | | | 3.87 | % | | | 4.52 | % | | | 5.14 | % | | | 4.38 | % | | | 4.81 | % |
| Portfolio turnover rate | | | 51 | % | | | 54 | % | | | 77 | % | | | 67 | % | | | 117 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 100 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | |
| | | Transamerica Logan Circle Emerging Markets Debt |
| | | Class A | | Class C | | Class I | | Class I2(I) |
| | | October 31, | | October 31, | | October 31, | | October 31, |
| For a share outstanding throughout each period | | 2011(P) | | 2011(P) | | 2011(P) | | 2011(P) |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.08 | | | | 0.07 | | | | 0.09 | | | | 0.07 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.08 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.06 | ) |
| | | |
| Total from investment operations | | | — | | | | (0.01 | ) | | | 0.01 | | | | 0.01 | |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | — | (L) | | | — | (L) | | | — | (L) | | | — | (L) |
| | | |
| Total distributions | | | — | (L) | | | — | (L) | | | — | (L) | | | — | (L) |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.00 | | | $ | 9.99 | | | $ | 10.01 | | | $ | 10.01 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(C) | | | 0.04 | % (G) | | | (0.08 | %) (G) | | | 0.14 | % (G) | | | 0.14 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 2,247 | | | $ | 1,025 | | | $ | 2,064 | | | $ | 95,233 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.35 | % (H) | | | 2.00 | % (H) | | | 1.00 | % (H) | | | 1.00 | % (H) |
| Before reimbursement/fee waiver | | | 1.65 | % (H) | | | 2.29 | % (H) | | | 1.34 | % (H) | | | 1.23 | % (H) |
| Net investment income, to average net assets | | | 5.24 | % (H) | | | 4.35 | % (H) | | | 5.46 | % (H) | | | 4.63 | % (H) |
| Portfolio turnover rate | | | 31 | % (G) | | | 31 | % (G) | | | 31 | % (G) | | | 31 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Capital Growth(Q) |
| | | Class A | | | Class B | | | Class C |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(R) | | | 2011 | | | 2010(R) | | | 2011 | | | 2010(R) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 13.78 | | | $ | 11.77 | | | $ | 12.75 | | | $ | 10.95 | | | $ | 12.74 | | | $ | 10.94 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.12 | ) | | | (0.09 | ) | | | (0.20 | ) | | | (0.15 | ) | | | (0.20 | ) | | | (0.15 | ) |
| Net realized and change in unrealized gain on investments | | | 1.81 | | | | 2.12 | | | | 1.67 | | | | 1.96 | | | | 1.66 | | | | 1.96 | |
| | | |
| Total from investment operations | | | 1.69 | | | | 2.03 | | | | 1.47 | | | | 1.81 | | | | 1.46 | | | | 1.81 | |
| | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.02 | ) | | | — | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
| | | |
| Total distributions | | | — | | | | (0.02 | ) | | | — | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 15.47 | | | $ | 13.78 | | | $ | 14.22 | | | $ | 12.75 | | | $ | 14.20 | | | $ | 12.74 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 12.34 | % | | | 17.24 | % (G) | | | 11.61 | % | | | 16.51 | %(G) | | | 11.62 | % | | | 16.53 | %(G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 66,058 | | | $ | 48,547 | | | $ | 7,786 | | | $ | 9,916 | | | $ | 16,252 | | | $ | 12,814 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.55 | % | | | 1.55 | %(H) | | | 2.20 | % | | | 2.20 | %(H) | | | 2.20 | % | | | 2.20 | %(H) |
| Before reimbursement/recapture fee waiver | | | 1.63 | % | | | 1.78 | %(H) | | | 2.45 | % | | | 2.51 | %(H) | | | 2.18 | % | | | 2.26 | %(H) |
| Net investment loss, to average net assets | | | (0.76 | %) | | | (0.75 | %)(H) | | | (1.41 | %) | | | (1.36 | %)(H) | | | (1.41 | %) | | | (1.39 | %)(H) |
| Portfolio turnover rate | | | 90 | % | | | 57 | %(G) | | | 90 | % | | | 57 | % (G) | | | 90 | % | | | 57 | % (G) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 101 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Capital Growth(Q) |
| | | Class I | | | Class I2 |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010(F) | | | October 31,
2011(T) | |
| |
Net asset value | | | | | | | | | | | | |
| Beginning of period/year | | $ | 13.89 | | | $ | 11.64 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | |
Net investment loss(B) | | | (0.06 | ) | | | (0.06 | ) | | | — | (L) |
| Net realized and change in unrealized gain on investments | | | 1.83 | | | | 2.33 | | | | 0.96 | |
| | | |
| Total from investment operations | | | 1.77 | | | | 2.27 | | | | 0.96 | |
| | | |
| | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.02 | ) | | | — | |
| | | |
| Total distributions | | | — | | | | (0.02 | ) | | | — | |
| | | |
| | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | |
| End of year | | $ | 15.66 | | | $ | 13.89 | | | $ | 10.96 | |
| | | |
| | | | | | | | | | | | | |
Total return(C) | | | 12.81 | % | | | 19.58 | % (G) | | | 9.70 | % (G) |
| | | |
| | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 11,767 | | | $ | 434 | | | $ | 407,302 | |
| | | |
| | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.13 | % | | | 1.20 | % (H) | | | 1.09 | % (H) |
| Before reimbursement/recapture fee waiver | | | 1.10 | % | | | 1.85 | % (H) | | | 1.09 | % (H) |
| Net investment loss, to average net assets | | | (0.37 | %) | | | (0.51 | %) (H) | | | (0.48 | %) (H) |
| Portfolio turnover rate | | | 90 | % | | | 57 | % (G) | | | 90 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Capital Growth(Q) |
| | | Class P(s) |
| | | | | | | | | | | 10 Months | | | | | | | | | | |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010 | | | Ended October 31,
2009 | | | December 31,
2008 | | | December 31,
2007 | | | December 31,
2006 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 13.79 | | | $ | 17.34 | | | $ | 13.28 | | | $ | 23.64 | | | $ | 19.65 | | | $ | 18.59 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.10 | ) | | | (0.08 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (0.11 | ) | | | (0.11 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 1.82 | | | | (3.45 | ) | | | 4.16 | | | | (9.65 | ) | | | 4.11 | | | | 1.17 | |
| | | |
| Total from investment operations | | | 1.72 | | | | (3.53 | ) | | | 4.06 | | | | (9.75 | ) | | | 4.00 | | | | 1.06 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Fund acquisition | | | | | | | | | | | | | | | | | | | | | | | | |
| Exchange reduction | | | — | | | | (6.83 | ) (U) | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.02 | ) | | | — | | | | — | | | | — | | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (0.61 | ) | | | (0.01 | ) | | | — | |
| Total distributions | | | — | | | | (0.02 | ) | | | — | | | | (0.61 | ) | | | (0.01 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 15.51 | | | $ | 13.79 | | | $ | 17.34 | | | $ | 13.28 | | | $ | 23.64 | | | $ | 19.65 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 12.62 | % | | | 25.87 | % | | | 30.57 | % (G) | | | (41.19 | %) | | | 20.35 | % | | | 5.70 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 66,724 | | | $ | 70,379 | | | $ | 63,698 | | | $ | 50,834 | | | $ | 95,372 | | | $ | 87,200 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.40 | % | | | 1.42 | % (V) | | | 1.45 | % (H)(V) | | | 1.37 | % | | | 1.18 | % | | | 1.20 | % |
| Before reimbursement/recapture fee waiver | | | 1.40 | % | | | 1.43 | % (V) | | | 1.56 | % (H)(V) | | | 1.37 | % | | | 1.18 | % | | | 1.20 | % |
Net investment loss, to average net assets(E) | | | (0.61 | %) | | | (0.63 | %) | | | (0.80 | %) (H) | | | (0.52 | %) | | | (0.50 | %) | | | (0.61 | %) |
| Portfolio turnover rate | | | 90 | % | | | 57 | % | | | 62 | % (G) | | | 66 | % | | | 51 | % | | | 46 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 102 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Growth Opportunities(W) |
| | | Class A |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
| Net asset value |
| Beginning of year | | $ | 9.82 | | | $ | 7.54 | | | $ | 6.57 | | | $ | 11.40 | | | $ | 8.36 | |
| | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.10 | ) | | | (0.05 | ) | | | (0.05 | ) | | | (0.06 | ) | | | (0.09 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 1.21 | | | | 2.33 | | | | 1.02 | | | | (4.77 | ) | | | 3.13 | |
| | | |
| Total from investment operations | | | 1.11 | | | | 2.28 | | | | 0.97 | | | | (4.83 | ) | | | 3.04 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.93 | | | $ | 9.82 | | | $ | 7.54 | | | $ | 6.57 | | | $ | 11.40 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 11.30 | % | | | 30.41 | % | | | 14.76 | % | | | (42.37 | %) | | | 36.20 | % |
| | | |
Net assets end of year (000’s) | | | $103,177 | | | $ | 59,685 | | | $ | 48,788 | | | $ | 41,005 | | | $ | 64,825 | |
| | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.75 | % | | | 1.75 | % | | | 1.75 | % | | | 1.75 | % | | | 1.75 | % |
| Before reimbursement/recapture fee waiver | | | 1.64 | % | | | 1.98 | % | | | 2.23 | % | | | 1.81 | % | | | 1.77 | % |
| Net investment loss, to average net assets | | | (0.83 | %) | | | (0.56 | %) | | | (0.68 | %) | | | (0.69 | %) | | | (1.00 | %) |
| Portfolio turnover rate | | | 125 | % | | | 63 | % | | | 71 | % | | | 45 | % | | | 85 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Growth Opportunities(W) |
| | | Class B |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.05 | | | $ | 6.99 | | | $ | 6.13 | | | $ | 10.72 | | | $ | 7.92 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.15 | ) | | | (0.10 | ) | | | (0.08 | ) | | | (0.12 | ) | | | (0.14 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 1.11 | | | | 2.16 | | | | 0.94 | | | | (4.47 | ) | | | 2.94 | |
| | | |
| Total from investment operations | | | 0.96 | | | | 2.06 | | | | 0.86 | | | | (4.59 | ) | | | 2.80 | |
| | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.01 | | | $ | 9.05 | | | $ | 6.99 | | | $ | 6.13 | | | $ | 10.72 | |
| | | |
Total return(C) | | | 10.61 | % | | | 29.47 | % | | | 14.03 | % | | | (42.82 | %) | | | 35.35 | % |
| | | |
Net assets end of year (000’s) | | $ | 9,636 | | | $ | 12,406 | | | $ | 14,067 | | | $ | 20,823 | | | $ | 65,123 | |
| | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % |
| Before reimbursement/recapture fee waiver | | | 2.29 | % | | | 2.41 | % | | | 2.71 | % | | | 2.46 | % | | | 2.45 | % |
| Net investment loss, to average net assets | | | (1.40 | %) | | | (1.21 | %) | | | (1.25 | %) | | | (1.39 | %) | | | (1.66 | %) |
| Portfolio turnover rate | | | 125 | % | | | 63 | % | | | 71 | % | | | 45 | % | | | 85 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 103 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Growth Opportunities(W) | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.08 | | | $ | 7.01 | | | $ | 6.16 | | | $ | 10.74 | | | $ | 7.94 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.15 | ) | | | (0.10 | ) | | | (0.08 | ) | | | (0.11 | ) | | | (0.14 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 1.12 | | | | 2.17 | | | | 0.93 | | | | (4.47 | ) | | | 2.94 | |
| | | |
| Total from investment operations | | | 0.97 | | | | 2.07 | | | | 0.85 | | | | (4.58 | ) | | | 2.80 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.05 | | | $ | 9.08 | | | $ | 7.01 | | | $ | 6.16 | | | $ | 10.74 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 10.68 | % | | | 29.53 | % | | | 13.80 | % | | | (42.64 | %) | | | 35.26 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 14,288 | | | $ | 12,781 | | | $ | 10,774 | | | $ | 10,619 | | | $ | 22,656 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 2.40 | % | | | 2.40 | % | | | 2.40 | % | | | 2.34 | % | | | 2.36 | % |
| Before reimbursement/recapture fee waiver | | | 2.28 | % | | | 2.41 | % | | | 2.62 | % | | | 2.34 | % | | | 2.36 | % |
| Net investment loss, to average net assets | | | (1.43 | %) | | | (1.21 | %) | | | (1.31 | %) | | | (1.29 | %) | | | (1.61 | %) |
| Portfolio turnover rate | | | 125 | % | | | 63 | % | | | 71 | % | | | 45 | % | | | 85 | % |
| | | |
| | | | | | | | | |
| | | Transamerica Morgan Stanley |
| | | Growth Opportunities (W) |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 10.19 | | | $ | 8.04 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment loss(B) | | | (0.02 | ) | | | (0.02 | ) |
| Net realized and change in unrealized gain on investments | | | 1.24 | | | | 2.17 | |
| | | |
| Total from investment operations | | | 1.22 | | | | 2.15 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.04 | ) | | | — | |
| | | |
| Total distributions | | | (0.04 | ) | | | — | |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 11.37 | | | $ | 10.19 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 12.01 | % | | | 26.74 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 9,954 | | | $ | 815 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.08 | % | | | 1.40 | % (H) |
| Before reimbursement/recapture fee waiver | | | 1.08 | % | | | 1.48 | % (H) |
| Net investment loss, to average net assets | | | (0.20 | %) | | | (0.23 | %) (H) |
| Portfolio turnover rate | | | 125 | % | | | 63 | % (G) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 104 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Growth Opportunities(W) |
| | | Class I2(I) |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 10.23 | | | $ | 7.78 | | | $ | 6.74 | | | $ | 11.59 | | | $ | 8.43 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | 0.01 | | | | 0.03 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 1.25 | | | | 2.42 | | | | 1.03 | | | | (4.86 | ) | | | 3.17 | |
| | | |
| Total from investment operations | | | 1.26 | | | | 2.45 | | | | 1.04 | | | | (4.85 | ) | | | 3.16 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.06 | ) | | | — | | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.06 | ) | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.43 | | | $ | 10.23 | | | $ | 7.78 | | | $ | 6.74 | | | $ | 11.59 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 12.28 | % | | | 31.49 | % | | | 15.43 | % | | | (41.85 | %) | | | 37.49 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 113,057 | | | $ | 106,970 | | | $ | 111,402 | | | $ | 86,425 | | | $ | 206,863 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.89 | % | | | 0.88 | % | | | 0.91 | % | | | 0.86 | % | | | 0.88 | % |
| Before reimbursement/fee waiver | | | 0.89 | % | | | 0.88 | % | | | 0.91 | % | | | 0.86 | % | | | 0.88 | % |
| Net investment income (loss), to average net assets | | | 0.09 | % | | | 0.32 | % | | | 0.15 | % | | | 0.15 | % | | | (0.15 | %) |
| Portfolio turnover rate | | | 125 | % | | | 63 | % | | | 71 | % | | | 45 | % | | | 85 | % |
| | | |
| | | | | | | | | |
| | | Transamerica Morgan Stanley Growth Opportunities(W) |
| | | Class P |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(R) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 9.85 | | | $ | 8.01 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment loss(B) | | | (0.04 | ) | | | (0.02 | ) |
| Net realized and change in unrealized gain on investments | | | 1.20 | | | | 1.86 | |
| | | |
| Total from investment operations | | | 1.16 | | | | 1.84 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.01 | ) | | | — | |
| | | |
| Total distributions | | | (0.01 | ) | | | — | |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 11.00 | | | $ | 9.85 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 11.78 | % | | | 22.97 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 99,313 | | | $ | 104,877 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 1.32 | % | | | 1.37 | % (H) |
| Before reimbursement/fee waiver | | | 1.32 | % | | | 1.37 | % (H) |
| Net investment loss, to average net assets | | | (0.34 | %) | | | (0.18 | %) (H) |
| Portfolio turnover rate | | | 125 | % | | | 63 | % (G) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 105 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Managed Balanced(X) |
| | | Class A |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 21.40 | | | $ | 17.85 | | | $ | 16.44 | | | $ | 25.70 | | | $ | 22.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.25 | | | | 0.52 | | | | 0.28 | | | | 0.28 | | | | 0.17 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.94 | | | | 3.55 | | | | 2.47 | | | | (8.64 | ) | | | 3.62 | |
| | | |
| Total from investment operations | | | 2.19 | | | | 4.07 | | | | 2.75 | | | | (8.36 | ) | | | 3.79 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.25 | ) | | | (0.52 | ) | | | (0.31 | ) | | | (0.24 | ) | | | (0.14 | ) |
| Net realized gains on investments | | | — | | | | — | | | | (1.03 | ) | | | (0.66 | ) | | | — | |
| | | |
| Total distributions | | | (0.25 | ) | | | (0.52 | ) | | | (1.34 | ) | | | (0.90 | ) | | | (0.14 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 23.34 | | | $ | 21.40 | | | $ | 17.85 | | | $ | 16.44 | | | $ | 25.70 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 10.26 | % | | | 23.08 | % | | | 18.43 | % | | | (33.55 | %) | | | 17.28 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 107,146 | | | $ | 95,258 | | | $ | 60,279 | | | $ | 49,917 | | | $ | 61,565 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.46 | % | | | 1.56 | %(Y) | | | 1.73 | %(Y) | | | 1.52 | % | | | 1.56 | % |
| Before reimbursement/fee waiver | | | 1.49 | % | | | 1.56 | %(Y) | | | 1.73 | %(Y) | | | 1.52 | % | | | 1.56 | % |
| Net investment income, to average net assets | | | 1.09 | % | | | 2.67 | % | | | 1.72 | % | | | 1.27 | % | | | 0.73 | % |
| Portfolio turnover rate | | | 263 | % | | | 99 | % | | | 100 | % | | | 52 | % | | | 52 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Managed Balanced(X) |
| | | Class B |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 21.34 | | | $ | 17.79 | | | $ | 16.37 | | | $ | 25.58 | | | $ | 21.98 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.06 | | | | 0.33 | | | | 0.16 | | | | 0.13 | | | | 0.04 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.92 | | | | 3.58 | | | | 2.45 | | | | (8.58 | ) | | | 3.60 | |
| | | |
| Total from investment operations | | | 1.98 | | | | 3.91 | | | | 2.61 | | | | (8.45 | ) | | | 3.64 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.09 | ) | | | (0.36 | ) | | | (0.17 | ) | | | (0.10 | ) | | | (0.04 | ) |
| Net realized gains on investments | | | — | | | | — | | | | (1.03 | ) | | | (0.66 | ) | | | — | |
| | | |
| Total distributions | | | (0.09 | ) | | | (0.36 | ) | | | (1.20 | ) | | | (0.76 | ) | | | (0.04 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 23.23 | | | $ | 21.34 | | | $ | 17.79 | | | $ | 16.37 | | | $ | 25.58 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 9.33 | % | | | 22.15 | % | | | 17.50 | % | | | (33.95 | %) | | | 16.57 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | | 9,996 | | | $ | 14,658 | | | $ | 17,787 | | | $ | 32,469 | | | $ | 96,573 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 2.29 | % | | | 2.34 | % (Y) | | | 2.46 | % (Y) | | | 2.15 | % | | | 2.14 | % |
| Before reimbursement/fee waiver | | | 2.32 | % | | | 2.34 | % (Y) | | | 2.46 | % (Y) | | | 2.15 | % | | | 2.14 | % |
| Net investment income, to average net assets | | | 0.25 | % | | | 1.73 | % | | | 1.02 | % | | | 0.59 | % | | | 0.15 | % |
| Portfolio turnover rate | | | 263 | % | | | 99 | % | | | 100 | % | | | 52 | % | | | 52 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 106 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Managed Balanced(X) |
| | | Class C |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 21.20 | | | $ | 17.69 | | | $ | 16.30 | | | $ | 25.50 | | | $ | 21.91 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.13 | | | | 0.40 | | | | 0.18 | | | | 0.15 | | | | 0.04 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.91 | | | | 3.53 | | | | 2.46 | | | | (8.56 | ) | | | 3.59 | |
| | | |
| Total from investment operations | | | 2.04 | | | | 3.93 | | | | 2.64 | | | | (8.41 | ) | | | 3.63 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.15 | ) | | | (0.42 | ) | | | (0.22 | ) | | | (0.13 | ) | | | (0.04 | ) |
| Net realized gains on investments | | | — | | | | — | | | | (1.03 | ) | | | (0.66 | ) | | | — | |
| | | |
| Total distributions | | | (0.15 | ) | | | (0.42 | ) | | | (1.25 | ) | | | (0.79 | ) | | | (0.04 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 23.09 | | | $ | 21.20 | | | $ | 17.69 | | | $ | 16.30 | | | $ | 25.50 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 9.63 | % | | | 22.43 | % | | | 17.80 | % | | | (33.92 | %) | | | 16.61 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 38,868 | | | $ | 24,194 | | | $ | 16,933 | | | $ | 17,719 | | | $ | 32,569 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 2.03 | % | | | 2.11 | % (Y) | | | 2.27 | % (Y) | | | 2.08 | % | | | 2.11 | % |
| Before reimbursement/fee waiver | | | 2.05 | % | | | 2.11 | % (Y) | | | 2.27 | % (Y) | | | 2.08 | % | | | 2.11 | % |
| Net investment income, to average net assets | | | 0.55 | % | | | 2.09 | % | | | 1.15 | % | | | 0.69 | % | | | 0.18 | % |
| Portfolio turnover rate | | | 263 | % | | | 99 | % | | | 100 | % | | | 52 | % | | | 52 | % |
| | | |
| | | | | | | | | | | | | | | | | |
| | | Transamerica Multi-Managed Balanced(X) |
| | | Class I | | | Class P | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | | | 2011 | | | 2010(R) | |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 21.46 | | | $ | 18.49 | | | $ | 21.40 | | | $ | 18.67 | |
| | | |
| | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.38 | | | | 0.57 | | | | 0.34 | | | | 0.54 | |
| Net realized and change in unrealized gain on investments | | | 1.91 | | | | 2.98 | | | | 1.93 | | | | 2.80 | |
| | | |
| Total from investment operations | | | 2.29 | | | | 3.55 | | | | 2.27 | | | | 3.34 | |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.35 | ) | | | (0.58 | ) | | | (0.33 | ) | | | (0.61 | ) |
| | | |
| Total distributions | | | (0.35 | ) | | | (0.58 | ) | | | (0.33 | ) | | | (0.61 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 23.40 | | | $ | 21.46 | | | $ | 23.34 | | | $ | 21.40 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(C) | | | 10.70 | % | | | 19.52 | % (G) | | | 10.63 | % | | | 18.19 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 12,086 | | | $ | 265 | | | $ | 168,453 | | | $ | 199,226 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.00 | % | | | 1.46 | % (D)(H) | | | 1.10 | % | | | 1.11 | % (D)(H |
| Before reimbursement/recapture fee waiver | | | 1.01 | % | | | 2.01 | % (D)(H) | | | 1.31 | % | | | 1.33 | % (D)(H) |
| Net investment income, to average net assets | | | 1.61 | % | | | 3.15 | % (H) | | | 1.46 | % | | | 2.88 | % (H) |
| Portfolio turnover rate | | | 263 | % | | | 99 | % (G) | | | 263 | % | | | 99 | % (G) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 107 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Systematic Small/Mid Cap Value(Z) |
| | | Class A |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 18.89 | | | $ | 14.72 | | | $ | 12.70 | | | $ | 23.78 | | | $ | 17.78 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | (0.06 | ) | | | (0.02 | ) | | | — | (L) | | | 0.21 | | | | 0.14 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.82 | | | | 4.19 | | | | 2.33 | | | | (8.64 | ) | | | 6.30 | |
| | | |
| Total from investment operations | | | 1.76 | | | | 4.17 | | | | 2.33 | | | | (8.43 | ) | | | 6.44 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | (0.31 | ) | | | (0.16 | ) | | | (0.13 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (2.49 | ) | | | (0.31 | ) |
| | | |
| Total distributions | | | — | | | | — | | | | (0.31 | ) | | | (2.65 | ) | | | (0.44 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 20.65 | | | $ | 18.89 | | | $ | 14.72 | | | $ | 12.70 | | | $ | 23.78 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 9.32 | % | | | 28.33 | % | | | 19.12 | % | | | (39.47 | %) | | | 36.99 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 323,147 | | | $ | 283,240 | | | $ | 201,569 | | | $ | 199,210 | | | $ | 96,667 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.43 | % | | | 1.47 | % | | | 1.59 | % | | | 1.41 | % | | | 1.41 | % |
| Before reimbursement/fee waiver | | | 1.43 | % | | | 1.47 | % | | | 1.59 | % | | | 1.41 | % | | | 1.41 | % |
| Net investment income (loss), to average net assets | | | (0.27 | %) | | | (0.12 | %) | | | — | %(M) | | | 1.18 | % | | | 0.71 | % |
| Portfolio turnover rate | | | 174 | % | | | 57 | % | | | 101 | % | | | 48 | % | | | 22 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Systematic Small/Mid Cap Value(Z) |
| | | Class B |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 18.05 | | | $ | 14.16 | | | $ | 12.19 | | | $ | 22.89 | | | $ | 17.12 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | (0.20 | ) | | | (0.12 | ) | | | (0.08 | ) | | | 0.06 | | | | 0.02 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.75 | | | | 4.01 | | | | 2.26 | | | | (8.27 | ) | | | 6.06 | |
| | | |
| Total from investment operations | | | 1.55 | | | | 3.89 | | | | 2.18 | | | | (8.21 | ) | | | 6.08 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | (0.21 | ) | | | — | | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (2.49 | ) | | | (0.31 | ) |
| | | |
| Total distributions | | | — | | | | — | | | | (0.21 | ) | | | (2.49 | ) | | | (0.31 | ) |
| | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 19.60 | | | $ | 18.05 | | | $ | 14.16 | | | $ | 12.19 | | | $ | 22.89 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 8.59 | % | | | 27.47 | % | | | 18.37 | % | | | (39.85 | %) | | | 36.09 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 33,830 | | | $ | 38,355 | | | $ | 34,573 | | | $ | 31,716 | | | $ | 53,285 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 2.09 | % | | | 2.12 | % | | | 2.24 | % | | | 2.07 | % | | | 2.07 | % |
| Before reimbursement/fee waiver | | | 2.09 | % | | | 2.12 | % | | | 2.24 | % | | | 2.07 | % | | | 2.07 | % |
| Net investment income (loss), to average net assets | | | (0.95 | %) | | | (0.74 | %) | | | (0.66 | %) | | | 0.34 | % | | | 0.12 | % |
| Portfolio turnover rate | | | 174 | % | | | 57 | % | | | 101 | % | | | 48 | % | | | 22 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 108 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Systematic Small/Mid Cap Value(Z) |
| | | Class C |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 17.86 | | | $ | 14.00 | | | $ | 12.10 | | | $ | 22.81 | | | $ | 17.09 | |
| | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | (0.18 | ) | | | (0.12 | ) | | | (0.08 | ) | | | 0.09 | | | | 0.02 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.72 | | | | 3.98 | | | | 2.23 | | | | (8.24 | ) | | | 6.05 | |
| | | |
| Total from investment operations | | | 1.54 | | | | 3.86 | | | | 2.15 | | | | (8.15 | ) | | | 6.07 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | (0.25 | ) | | | (0.07 | ) | | | (0.04 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (2.49 | ) | | | (0.31 | ) |
| | | |
| Total distributions | | | — | | | | — | | | | (0.25 | ) | | | (2.56 | ) | | | (0.35 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 19.40 | | | $ | 17.86 | | | $ | 14.00 | | | $ | 12.10 | | | $ | 22.81 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 8.62 | % | | | 27.57 | % | | | 18.42 | % | | | (39.84 | %) | | | 36.16 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 181,765 | | | $ | 169,903 | | | $ | 115,960 | | | $ | 95,729 | | | $ | 63,856 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 2.05 | % | | | 2.07 | % | | | 2.20 | % | | | 2.04 | % | | | 2.04 | % |
| Before reimbursement/fee waiver | | | 2.05 | % | | | 2.07 | % | | | 2.20 | % | | | 2.04 | % | | | 2.04 | % |
| Net investment income (loss), to average net assets | | | (0.89 | %) | | | (0.73 | %) | | | (0.63 | %) | | | 0.52 | % | | | 0.10 | % |
| Portfolio turnover rate | | | 174 | % | | | 57 | % | | | 101 | % | | | 48 | % | | | 22 | % |
| | | |
| | | | | | | | | |
| | | Transamerica Systematic | |
| | | Small/Mid Cap Value(Z) | |
| | | Class I | |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 19.15 | | | $ | 15.44 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income (loss)(B) | | | 0.05 | | | | (0.02 | ) |
| Net realized and change in unrealized gain on investments | | | 1.83 | | | | 3.73 | |
| | | |
| Total from investment operations | | | 1.88 | | | | 3.71 | |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 21.03 | | | $ | 19.15 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 9.82 | % | | | 24.03 | %(G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 68,499 | | | $ | 40,346 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 1.00 | % | | | 1.04 | % (H) |
| Before reimbursement/fee waiver | | | 1.00 | % | | | 1.04 | % (H) |
| Net investment income (loss), to average net assets | | | 0.24 | % | | | (0.11 | %)(H) |
| Portfolio turnover rate | | | 174 | % | | | 57 | %(G) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 109 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | Transamerica | |
| | | | | | | | | | | | | | | | | | | | | | | TS&W | |
| | | | | | | | | | | | | | | | | | | | | | | International | |
| | | Transamerica Systematic Small/Mid Cap Value(Z) | | | Equity | |
| | | Class I2(I) | | | Class A | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2011(AA) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 19.13 | | | $ | 14.82 | | | $ | 12.81 | | | $ | 23.91 | | | $ | 17.87 | | | $ | 15.03 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.06 | | | | 0.08 | | | | 0.11 | | | | 0.30 | | | | 0.26 | | | | 0.15 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.84 | | | | 4.23 | | | | 2.31 | | | | (8.67 | ) | | | 6.32 | | | | (1.71 | ) |
| | | |
| Total from investment operations | | | 1.90 | | | | 4.31 | | | | 2.42 | | | | (8.37 | ) | | | 6.58 | | | | (1.56 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | (0.41 | ) | | | (0.24 | ) | | | (0.23 | ) | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (2.49 | ) | | | (0.31 | ) | | | — | |
| | | |
| Total distributions | | | — | | | | — | | | | (0.41 | ) | | | (2.73 | ) | | | (0.54 | ) | | | — | |
| | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 21.03 | | | $ | 19.13 | | | $ | 14.82 | | | $ | 12.81 | | | $ | 23.91 | | | $ | 13.47 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 9.93 | % | | | 29.00 | % | | | 19.85 | % | | | (39.11 | %) | | | 37.78 | % | | | (10.38 | %) (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 12,935 | | | $ | 15,893 | | | $ | 10,746 | | | $ | 214,351 | | | $ | 487,605 | | | $ | 490 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.88 | % | | | 0.88 | % | | | 0.91 | % | | | 0.85 | % | | | 0.85 | % | | | 1.50 | % (H) |
| Before reimbursement/fee waiver | | | 0.88 | % | | | 0.88 | % | | | 0.91 | % | | | 0.85 | % | | | 0.85 | % | | | 1.52 | % (H) |
| Net investment income, to average net assets | | | 0.26 | % | | | 0.47 | % | | | 0.89 | % | | | 1.58 | % | | | 1.30 | % | | | 1.56 | % (H) |
| Portfolio turnover rate | | | 174 | % | | | 57 | % | | | 101 | % | | | 48 | % | | | 22 | % | | | 16 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica TS&W International Equity |
| | | Class C | | | Class I(BB) |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011(AA) | | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 15.03 | | | $ | 13.97 | | | $ | 12.55 | | | $ | 9.94 | | | $ | 21.16 | | | $ | 19.08 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.16 | | | | 0.40 | | | | 0.22 | | | | 0.19 | | | | 0.26 | | | | 0.28 | |
| Net realized and change in unrealized gain (loss) on investments | | | (1.79 | ) | | | (0.68 | ) | | | 1.36 | | | | 2.61 | | | | (8.99 | ) | | | 4.37 | |
| | | |
| Total from investment operations | | | (1.63 | ) | | | (0.28 | ) | | | 1.58 | | | | 2.80 | | | | (8.73 | ) | | | 4.65 | |
| | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.19 | ) | | | (0.16 | ) | | | (0.19 | ) | | | (0.20 | ) | | | (0.09 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | — | | | | (2.29 | ) | | | (2.48 | ) |
| | | |
| Total distributions | | | — | | | | (0.19 | ) | | | (0.16 | ) | | | (0.19 | ) | | | (2.49 | ) | | | (2.57 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 13.40 | | | $ | 13.50 | | | $ | 13.97 | | | $ | 12.55 | | | $ | 9.94 | | | $ | 21.16 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | (10.84 | %)(G) | | | (2.05 | %) | | | 12.73 | % | | | 28.58 | % | | | (46.36 | %) | | | 26.86 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 113 | | | $ | 78,738 | | | $ | 75,271 | | | $ | 64,600 | | | $ | 51,529 | | | $ | 91,838 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 2.14 | % (H) | | | 1.16 | % | | | 1.43 | % | | | 1.67 | % | | | 1.52 | % | | | 1.55 | % |
| Before reimbursement/fee waiver | | | 2.14 | %(H) | | | 1.16 | % | | | 1.43 | % | | | 1.67 | % | | | 1.53 | % | | | 1.55 | % |
Net investment income, to average net assets(E) | | | 1.64 | % (H) | | | 2.79 | % | | | 1.76 | % | | | 1.87 | % | | | 1.67 | % | | | 1.47 | % |
| Portfolio turnover rate | | | 16 | % (G) | | | 16 | % | | | 43 | % | | | 42 | % | | | 40 | % | | | 41 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 110 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | | | | | | |
| | | TS&W | | | | | | | | |
| | | International | | | | | | | | |
| | | Equity | | | Transamerica WMC Diversified Equity(CC) | | | | | |
| | | Class I2 | | | Class A | | | Class B | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011(AA) | | | 2011 | | | 2010(R) | | | 2011 | | | 2010(R) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 15.03 | | | $ | 14.29 | | | $ | 12.85 | | | $ | 14.22 | | | $ | 12.85 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | 0.29 | | | | (0.06 | ) | | | 0.15 | | | | (0.16 | ) | | | 0.06 | |
| Net realized and change in unrealized gain (loss) on investments | | | (1.81 | ) | | | 0.56 | | | | 1.31 | | | | 0.55 | | | | 1.32 | |
| | | |
| Total from investment operations | | | (1.52 | ) | | | 0.50 | | | | 1.46 | | | | 0.39 | | | | 1.38 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.16 | ) | | | (0.02 | ) | | | (0.04 | ) | | | (0.01 | ) |
| | | |
| Total distributions | | | — | | | | (0.16 | ) | | | (0.02 | ) | | | (0.04 | ) | | | (0.01 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 13.51 | | | $ | 14.63 | | | $ | 14.29 | | | $ | 14.57 | | | $ | 14.22 | |
| | | |
Total return(C) | | | (10.11 | %) (G) | | | 3.44 | % | | | 11.32 | % (G) | | | 2.71 | % | | | 10.68 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 46,313 | | | $ | 77,197 | | | $ | 83,766 | | | $ | 5,420 | | | $ | 7,375 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.02 | % (H) | | | 1.52 | % | | | 1.52 | % (H) | | | 2.17 | % | | | 2.17 | % (H) |
| Before reimbursement/fee waiver | | | 1.02 | % (H) | | | 1.66 | % | | | 1.72 | % (H) | | | 2.30 | % | | | 2.44 | % (H) |
Net investment income (loss), to average net assets(E) | | | 3.07 | % (H) | | | (0.42 | %) | | | 1.14 | % (H) | | | (1.07 | %) | | | 0.40 | % (H) |
| Portfolio turnover rate | | | 16 | % (G) | | | 141 | % | | | 79 | % (G) | | | 141 | % | | | 79 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Equity(CC) |
| | | Class C | | | Class I | | | Class I2(I) | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(R) | | | 2011 | | | 2010(F) | | | 2011 | | | 2010(R) | |
| | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 14.22 | | | $ | 12.85 | | | $ | 14.41 | | | $ | 12.65 | | | $ | 14.38 | | | $ | 12.85 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | (0.16 | ) | | | 0.06 | | | | — | (L) | | | 0.26 | | | | 0.04 | | | | 0.26 | |
| Net realized and change in unrealized gain on investments | | | 0.55 | | | | 1.32 | | | | 0.56 | | | | 1.53 | | | | 0.57 | | | | 1.30 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.39 | | | | 1.38 | | | | 0.56 | | | | 1.79 | | | | 0.61 | | | | 1.56 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.06 | ) | | | (0.01 | ) | | | (0.23 | ) | | | (0.03 | ) | | | (0.26 | ) | | | (0.03 | ) |
| | | |
| Total distributions | | | (0.06 | ) | | | (0.01 | ) | | | (0.23 | ) | | | (0.03 | ) | | | (0.26 | ) | | | (0.03 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 14.55 | | | $ | 14.22 | | | $ | 14.74 | | | $ | 14.41 | | | $ | 14.73 | | | $ | 14.38 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 2.72 | % | | | 10.68 | % (G) | | | 3.82 | % | | | 14.16 | % (G) | | | 4.19 | % | | | 12.12 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 13,393 | | | $ | 15,013 | | | $ | 1,127 | | | $ | 421 | | | $ | 291,409 | | | $ | 358,714 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 2.17 | % | | | 2.17 | % (H) | | | 1.17 | % | | | 1.17 | % (H) | | | 0.80 | % | | | 0.81 | % (H) |
| Before reimbursement/recapture fee waiver | | | 2.25 | % | | | 2.31 | % (H) | | | 1.15 | % | | | 1.81 | % (H) | | | 0.80 | % | | | 0.81 | % (H) |
| Net investment income (loss), to average net assets | | | (1.07 | %) | | | 0.48 | % (H) | | | 0.01 | % | | | 2.14 | % (H) | | | 0.30 | % | | | 2.02 | % (H) |
| Portfolio turnover rate | | | 141 | % | | | 79 | % (G) | | | 141 | % | | | 79 | % (G) | | | 141 | % | | | 79 | % (G) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 111 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Equity(CC) | |
| | | Class P(DD) | |
| | | October 31, | | | October 31, | | | October 31, | | | December 31, | | | December 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 14.34 | | | $ | 12.08 | | | $ | 9.82 | | | $ | 17.15 | | | $ | 14.84 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | (0.01 | ) | | | 0.21 | | | | 0.02 | | | | 0.05 | | | | 0.01 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.56 | | | | 2.12 | | | | 2.24 | | | | (7.08 | ) | | | 2.77 | |
| | | |
| Total from investment operations | | | 0.55 | | | | 2.33 | | | | 2.26 | | | | (7.03 | ) | | | 2.78 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.21 | ) | | | (0.07 | ) | | | — | | | | (0.02 | ) | | | — | (L) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (0.28 | ) | | | (0.47 | ) |
| | | |
| Total distributions | | | (0.21 | ) | | | (0.07 | ) | | | — | | | | (0.30 | ) | | | (0.47 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 14.68 | | | $ | 14.34 | | | $ | 12.08 | | | $ | 9.82 | | | $ | 17.15 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 3.80 | % | | | 19.31 | % | | | 23.01 | %(G) | | | (40.93 | %) | | | 18.68 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 174,540 | | | $ | 323,700 | | | $ | 259,822 | | | $ | 194,445 | | | $ | 305,343 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.15 | % | | | 1.15 | % | | | 1.15 | % (H) | | | 1.15 | % | | | 1.15 | % |
| Before reimbursement/fee waiver | | | 1.54 | % | | | 1.38 | % | | | 1.32 | % (H) | | | 1.29 | % | | | 1.15 | % |
| Net investment income (loss), to average net assets | | | (0.07 | %) | | | 1.56 | % | | | 0.27 | % (H) | | | 0.35 | % | | | 0.08 | % |
| Portfolio turnover rate | | | 141 | % | | | 79 | % | | | 25 | % (G) | | | 44 | % | | | 29 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Growth | |
| | | Class A | |
| For a share outstanding throughout each period | | October 31,
2011 | | | October 31,
2010 | | | October 31,
2009 | | | October 31,
2008 | | | October 31,
2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.90 | | | $ | 7.54 | | | $ | 6.85 | | | $ | 12.07 | | | $ | 9.83 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.04 | ) | | | (0.02 | ) | | | — | (L) | | | (0.01 | ) | | | (0.05 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 0.55 | | | | 1.38 | | | | 0.69 | | | | (5.21 | ) | | | 2.29 | |
| | | |
| Total from investment operations | | | 0.51 | | | | 1.36 | | | | 0.69 | | | | (5.22 | ) | | | 2.24 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.41 | | | $ | 8.90 | | | $ | 7.54 | | | $ | 6.85 | | | $ | 12.07 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 5.73 | % | | | 18.04 | % | | | 10.07 | % | | | (43.25 | %) | | | 22.79 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 374,873 | | | $ | 303,912 | | | $ | 292,838 | | | $ | 300,140 | | | $ | 532,251 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.39 | % | | | 1.40 | % |
| Before reimbursement/recapture fee waiver | | | 1.43 | % | | | 1.56 | % | | | 1.67 | % | | | 1.39 | % | | | 1.40 | % |
| Net investment income (loss), to average net assets | | | (0.38 | %) | | | (0.28 | %) | | | 0.06 | % | | | (0.07 | %) | | | (0.48 | %) |
| Portfolio turnover rate | | | 61 | % | | | 167 | % | | | 53 | % | | | 33 | % | | | 62 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 112 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Growth | |
| | | Class B | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.22 | | | $ | 7.01 | | | $ | 6.42 | | | $ | 11.39 | | | $ | 9.35 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.09 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.08 | ) | | | (0.12 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 0.51 | | | | 1.28 | | | | 0.62 | | | | (4.89 | ) | | | 2.16 | |
| | | |
| Total from investment operations | | | 0.42 | | | | 1.21 | | | | 0.59 | | | | (4.97 | ) | | | 2.04 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.64 | | | $ | 8.22 | | | $ | 7.01 | | | $ | 6.42 | | | $ | 11.39 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 5.11 | % | | | 17.26 | % | | | 9.19 | % | | | (43.63 | %) | | | 21.82 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 21,556 | | | $ | 29,958 | | | $ | 39,699 | | | $ | 59,479 | | | $ | 191,007 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 2.17 | % | | | 2.17 | % | | | 2.17 | % | | | 2.17 | % | | | 2.17 | % |
| Before reimbursement/fee waiver | | | 2.24 | % | | | 2.30 | % | | | 2.50 | % | | | 2.21 | % | | | 2.21 | % |
| Net investment loss, to average net assets | | | (1.02 | %) | | | (0.92 | %) | | | (0.53 | %) | | | (0.87 | %) | | | (1.25 | %) |
| Portfolio turnover rate | | | 61 | % | | | 167 | % | | | 53 | % | | | 33 | % | | | 62 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Growth | |
| | | Class C | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.26 | | | $ | 7.04 | | | $ | 6.44 | | | $ | 11.42 | | | $ | 9.37 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment loss(B) | | | (0.09 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.07 | ) | | | (0.11 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | 0.51 | | | | 1.29 | | | | 0.63 | | | | (4.91 | ) | | | 2.16 | |
| | | |
| Total from investment operations | | | 0.42 | | | | 1.22 | | | | 0.60 | | | | (4.98 | ) | | | 2.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.68 | | | $ | 8.26 | | | $ | 7.04 | | | $ | 6.44 | | | $ | 11.42 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 5.08 | % | | | 17.33 | % | | | 9.32 | % | | | (43.61 | %) | | | 21.88 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 33,092 | | | $ | 36,135 | | | $ | 37,225 | | | $ | 46,676 | | | $ | 101,226 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture fee waiver | | | 2.17 | % | | | 2.17 | % | | | 2.17 | % | | | 2.04 | % | | | 2.07 | % |
| Before reimbursement/recapture fee waiver | | | 2.16 | % | | | 2.22 | % | | | 2.32 | % | | | 2.04 | % | | | 2.07 | % |
| Net investment loss, to average net assets | | | (1.02 | %) | | | (0.93 | %) | | | (0.56 | %) | | | (0.72 | %) | | | (1.15 | %) |
| Portfolio turnover rate | | | 61 | % | | | 167 | % | | | 53 | % | | | 33 | % | | | 62 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 113 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | |
| | | Transamerica WMC Diversified |
| | | Growth |
| | | Class I |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(F) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 9.14 | | | $ | 8.12 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | 0.02 | | | | — | (L) |
| Net realized and change in unrealized gain on investments | | | 0.56 | | | | 1.06 | |
| | | |
| Total from investment operations | | | 0.58 | | | | 1.06 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | — | | | | (0.04 | ) |
| | | |
| Total distributions | | | — | | | | (0.04 | ) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 9.72 | | | $ | 9.14 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 6.23 | % | | | 13.14 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 5,954 | | | $ | 2,903 | |
| | | |
| | | | | | | | | |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 0.92 | % | | | 1.01 | % (H) |
| Before reimbursement/fee waiver | | | 0.92 | % | | | 1.01 | % (H) |
| Net investment income (loss), to average net assets | | | 0.23 | % | | | (0.02 | %) (H) |
| Portfolio turnover rate | | | 61 | % | | | 167 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Growth |
| | | Class I2(I) |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.10 | | | $ | 7.69 | | | $ | 6.99 | | | $ | 12.23 | | | $ | 9.90 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.04 | | | | 0.04 | | | | 0.05 | | | | 0.06 | | | | 0.01 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.56 | | | | 1.41 | | | | 0.69 | | | | (5.30 | ) | | | 2.32 | |
| | | |
| Total from investment operations | | | 0.60 | | | | 1.45 | | | | 0.74 | | | | (5.24 | ) | | | 2.33 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.04 | ) | | | (0.04 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | — | | | | (0.04 | ) | | | (0.04 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.70 | | | $ | 9.10 | | | $ | 7.69 | | | $ | 6.99 | | | $ | 12.23 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 6.59 | % | | | 18.94 | % | | | 10.73 | % | | | (42.85 | %) | | | 23.54 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 370,008 | | | $ | 425,431 | | | $ | 637,103 | | | $ | 500,722 | | | $ | 888,019 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.77 | % | | | 0.78 | % | | | 0.82 | % | | | 0.75 | % | | | 0.78 | % |
| Before reimbursement/fee waiver | | | 0.77 | % | | | 0.78 | % | | | 0.82 | % | | | 0.75 | % | | | 0.78 | % |
| Net investment income, to average net assets | | | 0.37 | % | | | 0.51 | % | | | 0.72 | % | | | 0.55 | % | | | 0.13 | % |
| Portfolio turnover rate | | | 61 | % | | | 167 | % | | | 53 | % | | | 33 | % | | | 62 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 114 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | |
| | | Transamerica WMC Diversified Growth |
| | | Class P |
| | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010(R) | |
| |
Net asset value | | | | | | | | |
| Beginning of period/year | | $ | 8.88 | | | $ | 8.07 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment income(B) | | | — | (L) | | | 0.01 | |
| Net realized and change in unrealized gain on investments | | | 0.55 | | | | 0.84 | |
| | | |
| Total from investment operations | | | 0.55 | | | | 0.85 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | — | | | | (0.04 | ) |
| | | |
| Total distributions | | | — | | | | (0.04 | ) |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 9.43 | | | $ | 8.88 | |
| | | |
| | | | | | | | | |
Total return(C) | | | 6.19 | % | | | 10.56 | % (G) |
| | | |
| | | | | | | | | |
Net assets end of year (000’s) | | $ | 199,852 | | | $ | 264,287 | |
| | | |
| | | | | | | | | |
| Ratio and supplemental data | | |
| Expenses to average net assets | | | | | | | | |
| After reimbursement/fee waiver | | | 1.15 | % | | | 1.15 | % (H) |
| Before reimbursement/fee waiver | | | 1.23 | % | | | 1.23 | % (H) |
| Net investment income, to average net assets | | | — | %(M) | | | 0.08 | % (H) |
| Portfolio turnover rate | | | 61 | % | | | 167 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Diversified Growth |
| | | Class T |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 25.12 | | | $ | 21.14 | | | $ | 19.14 | | | $ | 33.53 | | | $ | 27.18 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.06 | | | | 0.06 | | | | 0.10 | | | | 0.12 | | | | — | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.53 | | | | 3.92 | | | | 1.90 | | | | (14.51 | ) | | | 6.35 | |
| | | |
| Total from investment operations | | | 1.59 | | | | 3.98 | | | | 2.00 | | | | (14.39 | ) | | | 6.35 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | (L) | | | — | | | | — | |
| | | |
| Total distributions | | | — | | | | — | | | | — | (L) | | | — | | | | — | |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 26.71 | | | $ | 25.12 | | | $ | 21.14 | | | $ | 19.14 | | | $ | 33.53 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 6.33 | % | | | 18.83 | % | | | 10.46 | % | | | (42.92 | %) | | | 23.36 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 86,450 | | | $ | 93,290 | | | $ | 87,469 | | | $ | 90,881 | | | $ | 183,495 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 0.92 | % | | | 0.96 | % | | | 1.03 | % | | | 0.89 | % | | | 0.91 | % |
| Before reimbursement/fee waiver | | | 0.92 | % | | | 0.96 | % | | | 1.03 | % | | | 0.89 | % | | | 0.91 | % |
| Net investment income, to average net assets | | | 0.23 | % | | | 0.28 | % | | | 0.54 | % | | | 0.42 | % | | | 0.01 | % |
| Portfolio turnover rate | | | 61 | % | | | 167 | % | | | 53 | % | | | 33 | % | | | 62 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 115 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Quality Value | |
| | | Class A | | | Class C | | | Class I | | | Class I2 | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| For a share outstanding throughout each period | | 2011(FF) | | | 2011(FF) | | | 2011(FF) | | | 2011(FF) | |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of period/year | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.11 | | | | 0.06 | | | | 0.13 | | | | 0.16 | |
| Net realized and change in unrealized gain on investments | | | 0.28 | | | | 0.28 | | | | 0.30 | | | | 0.30 | |
| | | |
| Total from investment operations | | | 0.39 | | | | 0.34 | | | | 0.43 | | | | 0.46 | |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.09 | ) | | | (0.05 | ) | | | (0.12 | ) | | | (0.14 | ) |
| | | |
| Total distributions | | | (0.09 | ) | | | (0.05 | ) | | | (0.12 | ) | | | (0.14 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.30 | | | $ | 10.29 | | | $ | 10.31 | | | $ | 10.32 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(C) | | | 3.94 | % (G) | | | 3.38 | % (G) | | | 4.31 | % (G) | | | 4.60 | % (G) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 1,021 | | | $ | 1,752 | | | $ | 7,855 | | | $ | 1,328,468 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | | | | | | | | | | | | | | |
| After reimbursement/fee waiver | | | 1.32 | % (H) | | | 1.91 | % (H) | | | 0.95 | % (H) | | | 0.76 | % (H) |
| Before reimbursement/fee waiver | | | 1.32 | % (H) | | | 1.91 | % (H) | | | 0.95 | % (H) | | | 0.76 | % (H) |
| Net investment income, to average net assets | | | 1.09 | % (H) | | | 0.49 | % (H) | | | 1.38 | % (H) | | | 1.61 | % (H) |
| Portfolio turnover rate | | | 35 | % (G) | | | 35 | % (G) | | | 35 | % (G) | | | 35 | % (G) |
| | | |
| | |
| (A) | | Formerly, Transamerica Flexible Income. |
| |
| (B) | | Calculation is based on average number of shares outstanding. |
| |
| (C) | | Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. |
| |
| (D) | | Includes extraordinary expenses. The impact of the expenses was 0.01%. |
| |
| (E) | | Includes Redemption Fees, if any. The impact of Redemption Fees is less than 0.01%. |
| |
| (F) | | Commenced operations November 30, 2009. |
| |
| (G) | | Not annualized. |
| |
| (H) | | Annualized. |
| |
| (I) | | Effective November 30, 2009, all previously existing Class I shares were re-designated as Class I2 Shares. |
| |
| (J) | | Commenced operations November 20, 2009. |
| |
| (K) | | Formerly, Transamerica Money Market. |
| |
| (L) | | Rounds to less than $0.01 or $(0.01). |
| |
| (M) | | Rounds to less than 0.01% or (0.01)%. |
| |
| (N) | | Transamerica Asset Management, Inc. or any of its affiliates waive fees or reimburse expenses in order to avoid a negative yield. Refer to the notes to the financial statements for details. |
| |
| (O) | | Formerly, Transamerica Short-Term Bond. |
| |
| (P) | | Commenced operations August 31, 2011. |
| |
| (Q) | | Formerly, Transamerica Focus. |
| |
| (R) | | Commenced operations November 13, 2009. |
| |
| (S) | | Prior to November 13, 2009, information provided in previous periods reflects Transamerica Premier Focus, which is the accounting survivor pursuant to a Plan of Reorganization. |
| |
| (T) | | Commenced operations September 30, 2011. |
| |
| (U) | | Prior to the fund acquisition (see the notes to the financial statements for additional information), the accounting surviving funds’ Investor Class had a net asset value per share of $18.60. At the point of the acquisition, the Investor Class became Class P with a net asset value of $11.77. |
| |
| (V) | | Includes extraordinary expenses. The impact of the expenses were 0.02% and 0.05% for 2010 and 2009, respectively. |
| |
| (W) | | Formerly, Transamerica Growth Opportunities. |
| |
| (X) | | Formerly, Transamerica Balanced. |
| |
| (Y) | | Includes extraordinary expenses. The impact of the expenses were 0.01% and 0.02% for 2010 and 2009, respectively. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 116 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
| (Z) | | Formerly, Transamerica Small/Mid Cap Value. |
| |
| (AA) | | Commenced operations March 1, 2011. |
| |
| (BB) | | Prior to March 1, 2011, information provided in previous periods reflects TS&W International Equity Portfolio, Transamerica TS&W International Equity is accounting survivor pursuant to a Plan of Reorganization. Prior to November 1, 2010, the financial highlights were audited by another independent registered public accounting firm. |
| |
| (CC) | | Formerly, Transamerica Diversified Equity. |
| |
| (DD) | | Prior to November 13, 2009, information provided in previous periods reflects Transamerica Premier Diversified Equity, which is the accounting survivor pursuant to a Plan of Reorganization. |
| |
| (EE) | | Commenced operations November 1, 2007. |
| |
| (FF) | | Commenced operations November 15, 2010. |
Note: Prior to November 1, 2009, all the financial highlights with the exception of Transamerica TS&W International Equity, were audited by another independent registered public accounting firm.
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 117 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS
At October 31, 2011
(all amounts in thousands)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica Funds (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Transamerica WMC Quality Value commenced operations on November 15, 2010. Transamerica TS&W International Equity commenced operations on March 1, 2011 (see Reorganization note 7). Effective March 22, 2011, Transamerica Balanced changed its name to Transamerica Multi-Managed Balanced; Transamerica Diversified Equity changed its name to Transamerica WMC Diversified Equity; Transamerica Focus changed its name to Transamerica Morgan Stanley Capital Growth; Transamerica Growth Opportunities changed its name to Transamerica Morgan Stanley Growth Opportunities; Transamerica Small/Mid Cap Value changed its name to Transamerica Systematic Small/Mid Cap Value; Transamerica Flexible Income changed its name to Transamerica AEGON Flexible Income; Transamerica Money Market changed its name to Transamerica AEGON Money Market; and Transamerica Short-Term Bond changed its name to Transamerica AEGON Short-Term Bond. Transamerica Logan Circle Emerging Markets Debt commenced operations on August 31, 2011. Transamerica Morgan Stanley Capital Growth Class I2 commenced operations on September 30, 2011.
Transamerica AEGON Flexible Income, Transamerica AEGON High Yield Bond, Transamerica AEGON Money Market, Transamerica AEGON Short-Term Bond, Transamerica Logan Circle Emerging Markets Debt, Transamerica Morgan Stanley Capital Growth, Transamerica Morgan Stanley Growth Opportunities, Transamerica Multi-Managed Balanced, Transamerica Systematic Small/Mid Cap Value, Transamerica TS&W International Equity, Transamerica WMC Diversified Equity, Transamerica WMC Diversified Growth, and Transamerica WMC Quality Value (each, a “Fund”; collectively, the “Funds”) are part of Transamerica Funds.
Transamerica Logan Circle Emerging Markets Debt is “non-diversified” under the 1940 Act.
Transamerica AEGON High Yield Bond, Transamerica AEGON Money Market, Transamerica Morgan Stanley Capital Growth, Transamerica Morgan Stanley Growth Opportunities, and Transamerica WMC Diversified Equity currently have six classes of shares; Class A, Class B, Class C, Class I, Class I2, and Class P. Transamerica Multi-Managed Balanced currently has five classes of shares; Class A, Class B, Class C, Class I, and Class P. Transamerica AEGON Flexible Income and Transamerica Systematic Small/Mid Cap Value currently have five classes of shares; Class A, Class B, Class C, Class I, and Class I2. Transamerica WMC Diversified Growth currently has seven classes of shares; Class A, Class B, Class C, Class I, Class I2, Class P and Class T. Class T shares are not available to new investors. Transamerica AEGON Short-Term Bond, Transamerica Logan Circle Emerging Markets Debt, Transamerica TS&W International Equity and Transamerica WMC Quality Value currently have four classes of shares; Class A, Class C, Class I, and Class I2. Each of the above classes has a public offering price that reflects different sales charges, if any, and expense levels. Class B shares will convert to Class A shares eight years after purchase. Effective July 15, 2010, Class B shares of each Fund were no longer offered for purchase.
This report should be read in conjunction with the Funds’ current prospectuses, which contain more complete information about the Funds including investment objectives and strategies.
In the normal course of business, the Funds enter into contracts that contain a variety of representations that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
In preparing the Funds’ financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), estimates or assumptions (which could differ from actual results) may be used that affect reported amounts and disclosures. The following is a summary of significant accounting policies followed by the Funds.
Repurchase agreements: Securities purchased subject to repurchase agreements are held at the Funds’ custodian and, pursuant to the terms of the repurchase agreements, must be collateralized by securities with an aggregate market value greater than or equal to 100% of the resale price. The Funds will bear the risk of value fluctuations until the securities can be sold and may encounter delays and incur costs in liquidating the securities. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Foreign currency denominated investments: The accounting records of the Funds are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the closing exchange rate each day. The cost of foreign securities is translated at the exchange rate in effect when the investment was acquired. Each Fund combines fluctuations from currency exchange rates and fluctuations in value when computing net realized and unrealized gains or losses from investments.
Net foreign currency gains and losses resulting from changes in exchange rates include: 1) foreign currency fluctuations between trade date and settlement date of investment security transactions; 2) gains and losses on forward foreign currency contracts; and 3) the difference between the receivable amounts of interest and dividends recorded in the accounting records in U.S. dollars and the amounts actually received.
Foreign currency denominated assets may involve risks not typically associated with domestic transactions. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region.
| | | | |
| | | | | |
| Transamerica Funds | | Page 118 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1. (continued)
Foreign capital gains taxes: The Funds may be subject to taxes imposed by countries in which they invest, with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated and capital gains realized on the sale of such investments. The Funds accrue such taxes when the related income or capital gains are earned. Some countries require governmental approval for the repatriation of investment income, capital or the proceeds of sales earned by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
Forward foreign currency contracts: The Funds may be subject to foreign currency exchange rate risk exposure in the normal course of pursuing their investment objectives. The Funds enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Forward foreign currency contracts are marked to market daily, with the change in value recorded as an unrealized gain or loss. When the contracts are settled, a realized gain or loss is incurred. Risks may arise from changes in market value of the underlying currencies and from the possible inability of counterparties to meet the terms of their contracts.
Open forward foreign currency contracts at October, 31 2011 are listed in the Schedules of Investments.
Option and swaption contracts: The Funds are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds enter into option contracts to manage exposure to various market fluctuations. Options are valued at the average of the bid and ask (“Mean Quote”) established each day at the close of the board of trade or exchange on which they are traded. The primary risks associated with options are an imperfect correlation between the change in value of the securities held and the prices of the option contracts; the possibility of an illiquid market and an inability of the counterparty to meet the contract terms.
The Funds write call and put options on futures, swaps (“swaptions”), securities or currencies they own or in which they may invest. When a Fund writes a covered call or put option/swaption, an amount equal to the premium received by a Fund is included in the Fund’s Statement of Assets and Liabilities as an asset and as an equivalent liability. Premiums received from writing options/swaptions which expire are treated as realized gains. Premiums received from writing options/swaptions which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security or currency transaction to determine the realized gain or loss. Options are marked-to-market daily to reflect the current value of the option/swaption written.
Funds purchase put and call options on foreign or US securities, indices, futures, swaps (“swaptions”), and commodities. Purchasing call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure to the underlying instrument. The Funds pay premiums, which are included in the Statements of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying futures, swaps, security, commodity, or currency transaction to determine the realized gain or loss. Realized gains or losses are reflected in the realized gains or losses of investment securities on the Statements of Operations.
The underlying face amounts of open option and swaption contracts at October 31, 2011 are listed in the Schedules of Investments.
Transactions in written options were as follows:
| | | | | | | | | |
| | | | | | | Notional | |
| Transamerica Multi-Managed Balanced | | Premium | | | Amount | |
| |
| Balance at October 31, 2010 | | $ | — | | | $ | — | |
| Sales | | | 154 | | | | 168 | |
| Closing Buys | | | (72 | ) | | | (80 | ) |
| Expirations | | | (40 | ) | | | (22 | ) |
| Exercised | | | — | | | | — | |
| | | | | | | |
Balance at October 31, 2011 | | $ | 42 | | | $ | 66 | |
There were no transactions in written swaptions during the year ended October 31, 2011.
Futures contracts: The Funds are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. Certain Funds use futures contracts to gain exposure to, or hedge against, changes in the value of equities, interest rates, or foreign currencies. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Upon entering into such contracts, the Funds are required to deposit with the broker either in cash or securities an initial margin in an amount equal to a certain percentage of the contract amount.
| | | | |
| | | | | |
| Transamerica Funds | | Page 119 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1. (continued)
Subsequent payments (variation margin) are paid or received by the Funds each day, depending on the daily fluctuations in the value of the contracts, and are recorded for financial statement purposes as unrealized gains or losses by the Funds. Upon entering into such contracts, the Funds bear the risk of interest or exchange rates or security prices moving unexpectedly, in which case, the Funds may not achieve the anticipated benefits of the futures contracts and may realize losses. With futures, there is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
The open future contracts at October 31, 2011 are listed in the Schedules of Investments. The variation margin receivable or payable, as applicable, is included in the Statements of Assets and Liabilities.
Short sales: A short sale is a transaction in which a Fund sells securities it does not own, but has borrowed, in anticipation of a decline in the market price of the securities. The Funds are obligated to replace the borrowed securities at the market price at the time of replacement. The Funds’ obligation to replace the securities borrowed in connection with a short sale is fully secured by collateral deposited with the custodian. In addition, the Funds consider the short sale to be a borrowing by the Funds that is subject to the asset coverage requirements of the 1940 Act.
Short sales represent an aggressive trading practice with a high risk/return potential, and short sales involve special considerations. Risks of short sales include that possible losses from short sales may be unlimited (e.g., if the price of stocks sold short rises), whereas losses from direct purchases of securities are limited to the total amount invested, and the Funds may be unable to replace borrowed securities sold short.
The Funds investing in short sales are liable for any dividends payable on securities while those securities are in a short position and also bear other costs, such as charges for the prime brokerage accounts, in connection with its short positions. These costs are reported as broker expense on securities sold short in the Statements of Operations.
Restricted and illiquid securities: Restricted and illiquid securities are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult.
The restricted and illiquid securities at October 31, 2011 are listed in the Schedules of Investments.
Payment in-kind securities (“PIKs”): PIKs give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a “dirty price”) and require a pro-rata adjustment from interest receivable to the unrealized appreciation or depreciation on investments on the Statements of Assets and Liabilities.
The PIKs at October 31, 2011 are listed in the Schedules of Investments.
Cash overdraft: Throughout the year, the Funds may have cash overdraft balances. A fee is incurred on these overdrafts by a rate based on the federal funds rate. Expenses from cash overdrafts are included in Other Expenses on the Statement of Operations.
Real estate investment trusts (“REITs”): There are certain additional risks involved in investing in REITs. These include, but are not limited to, economic conditions, changes in zoning laws, real estate values, property taxes, and interest rates.
Securities lending: Securities are lent to qualified financial institutions and brokers. The lending of Funds’ securities exposes the Funds to risks such as the following: (i) the borrowers may fail to return the loaned securities; (ii) the borrowers may not be able to provide additional collateral; (iii) the Funds may experience delays in recovery of the loaned securities or delays in access to collateral; or (iv) the Funds may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge cash collateral equal to at least the market value of the securities loaned. Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio, a money market mutual fund registered under the 1940 Act. By lending such securities, the Funds seek to increase their net investment income through the receipt of interest (after rebates and fees).
Such income is reflected separately on the Statements of Operations. The value of loaned securities and related collateral outstanding at October 31, 2011 are shown in the Schedules of Investments and Statements of Assets and Liabilities.
Income from loaned securities on the Statements of Operations is net of fees earned by the lending agent for its services.
| | | | |
| | | | | |
| Transamerica Funds | | Page 120 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1. (continued)
Commission recapture: The sub-advisers of certain Funds, to the extent consistent with the best execution and usual commission rate policies and practices, have elected to place security transactions of the Funds with broker/dealers with which Transamerica Funds has established a Commission Recapture Program. A Commission Recapture Program is any arrangement under which a broker/dealer applies a portion of the commissions received by such broker/dealer on the security transactions to the Funds. In no event will commissions paid by the Funds be used to pay expenses that would otherwise be borne by any other funds within Transamerica Funds, or by any other party.
Commissions recaptured for the year ended October 31, 2011, are included in net realized gain (loss) in the Statements of Operations and are summarized as follows:
| | | | | |
| Fund | | Commissions | |
| Transamerica Morgan Stanley Capital Growth | | $ | 2 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 1 | |
| Transamerica Systematic Small/Mid Cap Value | | | 99 | |
| Transamerica WMC Diversified Equity | | | — | (A |
| Transamerica WMC Diversified Growth | | | — | (A) |
| Transamerica WMC Quality Value | | | 3 | |
| | |
| (A) | | Amount rounds to less than $1. |
Security transactions and investment income: Security transactions are recorded on the trade date. Security gains and losses are calculated on the specific identification basis. Dividend income, if any, is recorded on the ex-dividend date or, in the case of foreign securities, as soon as the Funds are informed of the ex-dividend date. Interest income, including accretion of discounts and amortization of premiums, is recorded on the accrual basis commencing on the settlement date.
Dividend income related to a Real Estate Investment Trust (“REIT”) is recorded at management’s estimate of the income included in distributions from the REIT investments. Distributions received in excess of the estimated amount are recorded as a reduction of the cost of investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after the fiscal year end and may differ from the estimated amounts.
Multiple class operations, income, and expenses: Income, non-class specific expenses and realized and unrealized gains and losses are allocated daily to each class, based upon net assets. In addition to the non-class specific expenses, each class bears its own specific expenses.
Dividend distributions: Distributions to shareholders are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations which may differ from GAAP.
The Funds follow the accounting practice known as “Equalization” by which a portion of the proceeds from sales and costs of reacquiring Fund shares, equivalent on a per share basis to the amount of distributable net investment income on the date of the transaction, is credited or charged to undistributed net investment income. As a result, undistributed net investment income per share is unaffected by sales or reacquisition of Fund shares. Amounts related to Equalization can be found on the Statements of Changes in Net Assets.
Foreign taxes: The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon the current interpretation of tax rules and regulations that exist in the markets in which the Funds invest.
Redemption fees: Prior to March 1, 2011, TS&W International Equity Portfolio, the predecessor fund of Transamerica TS&W International Equity, retained a redemption fee of 1.00% on redemptions of capital shares held for less than 60 days. The redemption fees received are disclosed in the Funds’ Statements of Changes in Net Assets. Effective March 1, 2011, Transamerica TS&W International Equity no longer charges redemption fees.
Fair funds settlement: The Securities and Exchange Commission (“SEC”) had investigated several companies and found that there were some companies that conducted rapid in and out trading of mutual funds, known as market timing, through deceptive means. Through a SEC order the companies found to be market timing against mutual funds were required to pay amounts to compensate for the market timing activity. Amounts received as a result of the SEC order are noted on the Statements of Changes in Net Assets.
| | | | |
| | | | | |
| Transamerica Funds | | Page 121 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 2. SECURITY VALUATIONS
All investments in securities are recorded at their estimated fair value. The Funds value their investments at the close of the NYSE, normally 4 p.m. Eastern Time, each day the NYSE is open for business. The Funds utilize various methods to measure the fair value of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three Levels of the fair value hierarchy are defined as follows:
Level 1—Unadjusted quoted prices in active markets for identical securities.
Level 2—Inputs, other than quoted prices included in Level 1, that are observable, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3—Unobservable inputs, which may include Transamerica Asset Management, Inc.’s (“TAM”) Valuation Committee’s own assumptions in determining the fair value of investments.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, but not limited to, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is generally greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy that is assigned to the fair value measurement of a security is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.
Fair value measurements: Descriptions of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Equity securities (common and preferred stock): Securities are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.
Foreign securities, in which their primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded are categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of the certain indices of securities based on a statistical analysis of their historical relationship; such valuations generally are categorized in Level 2.
Preferred stock, repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2.
Securities lending collateral: Securities lending collateral is a money market fund, which is valued at the net assets of the underlying portfolios and no valuation adjustments are applied. It is categorized in Level 1 of the fair value hierarchy.
Corporate bonds: The fair value of corporate bonds is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3.
Asset backed securities: The fair value of asset backed securities is estimated based on models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. To the extent the inputs are observable and timely, the values would generally be categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized as Level 3.
Short-term notes: Short-term notes are valued using amortized cost, which approximates fair value. To the extent the inputs are observable and timely, the values would be generally categorized in Level 2 of the fair value hierarchy.
Government securities: Government securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued by principally using dealer quotations. Government securities generally are categorized in Level 2 of the fair value hierarchy.
| | | | |
| | | | | |
| Transamerica Funds | | Page 122 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 2. (continued)
U.S. government agency securities: U.S. government agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Generally, agency issued debt securities are valued in a manner similar to U.S. government securities. Mortgage pass-throughs include to be announced (“TBA”) securities and mortgage pass-through certificates. Generally, TBA securities and mortgage pass-throughs are valued using TBA quotations. Depending on market activity levels and whether quotations or other observable data are used, these securities are typically categorized in Level 2 of the fair value hierarchy.
Restricted securities (equity and debt): Restricted securities for which quotations are not readily available are valued at fair value as determined in good faith by TAM’s Valuation Committee under the supervision of the Funds’ Board of Trustees. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted securities issued by nonpublic entities may be valued by reference to comparable public entities and/or fundamental data relating to the issuer. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy.
Derivative instruments: Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. Over the counter (“OTC”) derivative contracts include forward, swap, option and swaption contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case of interest rate swap and option contracts. A substantial majority of OTC derivative products valued by the Funds using pricing models fall into this category and are categorized within Level 2 of the fair value hierarchy.
Other: Securities for which quotations are not readily available or whose values have been determined to be unreliable are valued at fair market value as determined in good faith by TAM’s Valuation Committee under the supervision of the Funds’ Board of Trustees. For instances which daily market quotes are not readily available, securities may be valued, pursuant to procedures adopted by the Board of Trustees, with reference to other instruments or indices. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy. When a Fund must use fair valuation methods that rely on significant unobservable inputs to determine a security’s value, the Valuation Committee will choose the method that is believed to accurately reflect fair market value. These securities are categorized as Level 3 of the fair value hierarchy.
The hierarchy classification of inputs used to value the Funds’ investments, at October 31, 2011, are disclosed in the Valuation Summary of each Fund’s Schedule of Investments. Transfers between Levels are considered to have occurred at the end of the reporting period.
There were no significant transfers between Level 1 and Level 2 during the year ended October 31, 2011.
For assets and liabilities for which significant unobservable inputs (Level 3) were used, there is a reconciliation of the beginning to the ending balances for reported market values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in/out of the Level 3 category during the period. The Level 3 reconciliation, if any, is disclosed in the Valuation Summary of each respective Fund’s Schedule of Investments.
NOTE 3. RELATED PARTY TRANSACTIONS
TAM, the Funds’ investment adviser, is directly owned by Western Reserve Life Assurance Co. of Ohio and AUSA Holding Company (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.
Prior to March 22, 2011, Transamerica Investment Management, LLC, served as sub-adviser to Transamerica AEGON Flexible Income, Transamerica AEGON Money Market, Transamerica AEGON Short-Term Bond, Transamerica Morgan Stanley Capital Growth, Transamerica Morgan Stanley Growth Opportunities, Transamerica Multi-Managed Balanced, Transamerica Systematic Small/Mid Cap Value, and Transamerica WMC Diversified Equity. On March 22, 2011, Transamerica AEGON Flexible Income, Transamerica AEGON Money Market, and Transamerica AEGON Short-Term Bond each changed its sub-advisers to AEGON USA Investment Management, LLC (“AUIM”), an affiliate of the Funds.
Transamerica Fund Services, Inc. (“TFS”) is the Funds’ administrator and transfer agent. Transamerica Capital, Inc. (“TCI”) is the Funds’ distributor/principal underwriter. TAM, AUIM, TFS, and TCI are affiliates of AEGON NV.
Certain officers and trustees of the Funds are also officers of TAM, AUIM, TFS, and TCI. None of the non-independent trustees receive compensation for services as trustees of the Funds or the entities that invest in the Funds.
| | | | |
| | | | | |
| Transamerica Funds | | Page 123 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
At the commencement of operations, TAM invested in the Funds. As of October 31, 2011, TAM had investments in the Funds as follows:
| | | | | | | | | |
| | | Market | | | % of Fund’s Net | |
| Fund Name | | Value | | | Assets | |
| Transamerica AEGON Money Market | | | | | | | | |
| Class I | | $ | 50 | | | | 0.02 | % |
| |
| Transamerica Logan Circle Emerging Markets Debt | | | | | | | | |
| Class A | | | 250 | | | | 0.25 | |
| Class C | | | 250 | | | | 0.25 | |
| Class I | | | 250 | | | | 0.25 | |
| |
| Transamerica TS&W International Equity | | | | | | | | |
| Class A | | | 90 | | | | 0.07 | |
| Class C | | | 89 | | | | 0.07 | |
| |
| Transamerica WMC Quality Value | | | | | | | | |
| Class A | | | 260 | | | | 0.02 | |
| Class C | | | 258 | | | | 0.02 | |
| |
The following schedule reflects the percentage of each Fund’s assets owned by affiliated investment companies at October 31, 2011:
| | | | | | | | | |
| Transamerica AEGON Flexible Income | | Market Value | | | % of Net Assets | |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 16,705 | | | | 6.63 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 43,673 | | | | 17.35 | |
| Transamerica Asset Allocation-Conservative VP | | | 7,946 | | | | 3.16 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 16,820 | | | | 6.68 | |
| Transamerica Asset Allocation-Moderate VP | | | 23,830 | | | | 9.46 | |
| |
| Total | | $ | 108,974 | | | | 43.28 | % |
| |
Transamerica AEGON High Yield Bond | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 19,938 | | | | 2.56 | % |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 131,893 | | | | 16.96 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 88,210 | | | | 11.34 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 29,544 | | | | 3.80 | |
| Transamerica Asset Allocation-Conservative VP | | | 14,862 | | | | 1.91 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 22,237 | | | | 2.86 | |
| Transamerica Asset Allocation-Moderate VP | | | 35,483 | | | | 4.56 | |
| |
| Total | | $ | 342,167 | | | | 43.99% | |
| |
Transamerica AEGON Money Market | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 5,568 | | | | 2.67% | |
| Transamerica Asset Allocation-Growth Portfolio | | | 60 | | | | 0.03 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 4,278 | | | | 2.05 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 1,952 | | | | 0.93 | |
| Transamerica Multi-Manager International Portfolio | | | 3,029 | | | | 1.45 | |
| |
| Total | | $ | 14,887 | | | | 7.13 | % |
| |
Transamerica AEGON Short-Term Bond | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 71,759 | | | | 2.54 | % |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 16,749 | | | | 0.59 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 116,856 | | | | 4.14 | |
| Transamerica Asset Allocation-Conservative VP | | | 216,906 | | | | 7.69 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 196,724 | | | | 6.97 | |
| Transamerica Asset Allocation-Moderate VP | | | 281,984 | | | | 10.00 | |
| Transamerica International Moderate Growth VP | | | 11,691 | | | | 0.42 | |
| |
| Total | | $ | 912,669 | | | | 32.35% | |
| |
Transamerica Logan Circle Emerging Markets Debt | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 8,758 | | | | 8.71 | % |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 18,042 | | | | 17.94 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 15,375 | | | | 15.29 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 7,737 | | | | 7.69 | |
| Transamerica Asset Allocation-Conservative VP | | | 8,212 | | | | 8.16 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 19,128 | | | | 19.02 | |
| Transamerica Asset Allocation-Moderate VP | | | 17,425 | | | | 17.33 | |
| |
| Total | | $ | 94,677 | | | | 94.14 | % |
| |
Transamerica Morgan Stanley Capital Growth | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 13,611 | | | | 2.36 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 63,682 | | | | 11.06 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 80,723 | | | | 14.02 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 35,914 | | | | 6.24 | |
| Transamerica Asset Allocation-Conservative VP | | | 21,009 | | | | 3.65 | |
| Transamerica Asset Allocation-Growth VP | | | 38,187 | | | | 6.63 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 99,336 | | | | 17.25 | |
| Transamerica Asset Allocation-Moderate VP | | | 51,449 | | | | 8.93 | |
| |
| Total | | $ | 403,911 | | | | 70.14 | % |
| |
| | | | |
| | | | | |
| Transamerica Funds | | Page 124 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
| | | | | | | | | |
| Transamerica Morgan Stanley Growth Opportunities | | Market Value | | | % of Net Assets | |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 11,781 | | | | 3.37 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 14,361 | | | | 4.11 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 43,736 | | | | 12.52 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 41,889 | | | | 11.99 | |
| |
| Total | | $ | 111,767 | | | | 31.99 | % |
| |
Transamerica TS&W International Equity | | Market Value | | % of Net Assets |
| Transamerica International Moderate Growth VP | | $ | 46,329 | | | | 36.87 | % |
Transamerica WMC Diversified Equity | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 25,766 | | | | 4.58 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 77,406 | | | | 13.75 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 123,343 | | | | 21.90 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 60,816 | | | | 10.80 | |
| |
| Total | | $ | 287,331 | | | | 51.03 | % |
| |
Transamerica WMC Diversified Growth | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 30,080 | | | | 2.76 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 92,181 | | | | 8.44 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 140,470 | | | | 12.87 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 94,479 | | | | 8.65 | |
| |
| Total | | $ | 357,210 | | | | 32.72 | % |
| |
Transamerica WMC Quality Value | | Market Value | | % of Net Assets |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 54,988 | | | | 4.11 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 193,574 | | | | 14.46 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 294,989 | | | | 22.03 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 136,386 | | | | 10.18 | |
| Transamerica Asset Allocation-Conservative VP | | | 48,362 | | | | 3.61 | |
| Transamerica Asset Allocation-Growth VP | | | 119,471 | | | | 8.92 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 308,506 | | | | 23.04 | |
| Transamerica Asset Allocation-Moderate VP | | | 162,560 | | | | 12.14 | |
| |
| Total | | $ | 1,318,836 | | | | 98.49 | % |
| |
Investment advisory fees: The Funds pay management fees to TAM based on average daily net assets (“ANA”) at the following breakpoints:
| | | | | |
|
Transamerica AEGON Flexible Income | | | | |
| |
| First $250 million | | | 0.475 | % |
| Over $250 million up to $350 million | | | 0.425 | |
| Over $350 million | | | 0.40 | |
| |
Transamerica AEGON High Yield Bond | | | | |
| |
| First $400 million | | | 0.59 | % |
| Over $400 million up to $750 million | | | 0.575 | |
| Over $750 million | | | 0.55 | |
| |
Transamerica AEGON Money Market | | | | |
| |
| ANA | | | 0.40 | % |
| |
Transamerica AEGON Short-Term Bond | | | | |
| |
| First $250 million | | | 0.55 | % |
| Over $250 million up to $500 million | | | 0.50 | |
| Over $500 million up to $1 billion | | | 0.475 | |
| Over $1 billion | | | 0.45 | |
| |
Transamerica Logan Circle Emerging Markets Debt | | | | |
| |
| First $400 million | | | 0.60 | % |
| Over $400 million | | | 0.58 | |
| |
Transamerica Morgan Stanley Capital Growth | | | | |
| |
| First $500 million | | | 0.80 | % |
| Over $500 million | | | 0.675 | |
| |
Transamerica Morgan Stanley Growth Opportunities | | | | |
| |
| First $250 million | | | 0.80 | % |
| Over $250 million up to $500 million | | | 0.75 | |
| Over $500 million | | | 0.70 | |
| |
Transamerica Multi-Managed Balanced | | | | |
| |
| First $500 million | | | 0.75 | % |
| Over $500 million up to $1 billion | | | 0.65 | |
| Over $1 billion | | | 0.60 | |
| |
Transamerica Systematic Small/Mid Cap Value | | | | |
| |
| First $500 million | | | 0.80 | % |
| Over $500 million | | | 0.75 | |
| |
Transamerica TS&W International Equity (Effective March 1, 2011) | | | | |
| |
| First $250 million | | | 0.80 | % |
| Over $250 million up to 500 million | | | 0.75 | |
| Over $500 million up to $1 billion | | | 0.725 | |
| Over $1 billion | | | 0.70 | |
| |
Transamerica TS&W International Equity (Prior to March 1, 2011) | | | | |
| |
| ANA | | | 0.65 | % |
| |
Transamerica WMC Diversified Equity | | | | |
| |
| First $500 million | | | 0.73 | % |
| Over $500 million up to $2.5 billion | | | 0.70 | |
| Over $2.5 billion | | | 0.65 | |
| |
Transamerica WMC Diversified Growth | | | | |
| |
| First $500 million | | | 0.73 | % |
| Over $500 million up to $2.5 billion | | | 0.70 | |
| Over $2.5 billion | | | 0.65 | |
| |
Transamerica WMC Quality Value | | | | |
| |
| First $1 billion | | | 0.70 | % |
| Over $1 billion | | | 0.675 | |
| |
| | | | |
| |
| Transamerica Funds | | Page 125 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
TAM has contractually agreed to waive its advisory fee and will reimburse the Funds to the extent that operating expenses, excluding distribution and service fees and certain extraordinary expenses, exceed the following stated annual limit:
| | | | | | | | | |
| | | Class A, B, C, I, I2, and T | | | Class P Expense | |
| Fund | | Expense Limit | | | Limit^ | |
| Transamerica AEGON Flexible Income ø | | | 1.00 | % | | | — | % |
| Transamerica AEGON High Yield Bond ε | | | 0.95 | | | | 0.90 | |
| Transamerica AEGON Money Market | | | 0.48 | | | | 0.48 | |
| Transamerica AEGON Short-Term Bond | | | 0.85 | | | | — | |
| Transamerica Logan Circle Emerging Markets Debt | | | 1.00 | | | | — | |
| Transamerica Morgan Stanley Capital Growth | | | 1.20 | | | | 1.40 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 1.40 | | | | 1.40 | |
| Transamerica Multi-Managed Balanced | | | 1.45 | | | | 1.10 | |
| Transamerica Systematic Small/Mid Cap Value ⌂ | | | 1.25 | | | | — | |
| Transamerica TS&W International Equity ◊ | | | 1.15 | | | | — | |
| Transamerica WMC Diversified Equity | | | 1.17 | | | | 1.15 | |
| Transamerica WMC Diversified Growth | | | 1.17 | | | | 1.15 | |
| Transamerica WMC Quality Value | | | 1.00 | | | | — | |
| |
| | |
| ø | | Effective March 1, 2011, Transamerica AEGON Flexible Income had an expense cap change to 1.00%. Prior to March 1, 2011, the expense cap was 1.35%. |
| |
| ε | | Effective March 1, 2011, Transamerica AEGON High Yield Bond had an expense cap change to 0.95%. Prior to March 1, 2011, the expense cap was 1.24%. |
| |
| ⌂ | | Effective March 1, 2011, Transamerica Systematic Small/Mid Cap Value had an expense cap change to 1.25%. Prior to March 1, 2011, the expense cap was 1.40% |
| |
| ◊ | | Effective March 1, 2011, Transamerica TS&W International Equity had an expense cap change to 1.15%. Prior to March 1, 2011, the predecessor fund, TS&W International Equity Portfolio, had an expense cap of 1.75%. |
| |
| ^ | | Inclusive of 12b-1 fees. |
If total Fund expenses, excluding 12b-1 fees and certain ordinary expenses, fall below the annual expense limitation agreement agreed to by the adviser within the succeeding 36 months following any reimbursement from/by the adviser, the Funds may be required to pay the adviser a portion or all of the previously waived advisory or reimbursed fees.
Amounts recaptured by the adviser during the year ended October 31, 2011 were as follows:
| | | | | |
| Fund | | Recaptured Amount | |
| Transamerica Morgan Stanley Capital Growth | | | | |
| Class C | | $ | 3 | |
| Class I | | | 1 | |
| Class P | | | 2 | |
| |
| | | | | |
| Transamerica Morgan Stanley Growth Opportunities | | | | |
| Class A | | | 112 | |
| Class B | | | 13 | |
| Class C | | | 18 | |
| Class I | | | — | (A) |
| |
| | | | | |
| Transamerica Multi-Managed Balanced | | | | |
| Class I | | | 1 | |
| |
| | | | | |
| Transamerica WMC Diversified Equity | | | | |
| Class I | | | — | (A) |
| |
| | | | | |
| Transamerica WMC Diversified Growth | | | | |
| Class A | | | 338 | |
| Class C | | | 4 | |
| |
| | |
| (A) | | Amount rounds to less than $1. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 126 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
The following amounts were available for recapture as of October 31, 2011:
| | | | | | | | | |
| | | Reimbursement of | | | Available for | |
| Fund | | Class Expenses | | | Recapture Through | |
Transamerica AEGON High Yield Bond | | | | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Class P | | $ | 50 | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Fund Level | | | 32 | | | | | |
| Class P | | | 37 | | | | | |
| |
Transamerica AEGON Money Market | | | | | | | | |
| |
| Fiscal Year 2009: | | | | | | | 10/31/2012 | |
| Class A | | | 763 | | | | | |
| Class B | | | 422 | | | | | |
| Class C | | | 552 | | | | | |
| Class I2 | | | 30 | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Fund Level | | | 752 | | | | | |
| Class A | | | 876 | | | | | |
| Class B | | | 344 | | | | | |
| Class C | | | 446 | | | | | |
| Class I | | | 1 | | | | | |
| Class I2 | | | 1 | | | | | |
| Class P | | | 55 | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Fund Level | | | 749 | | | | | |
| Class A | | | 783 | | | | | |
| Class B | | | 213 | | | | | |
| Class C | | | 376 | | | | | |
| Class I | | | 2 | | | | | |
| Class I2 | | | 1 | | | | | |
| Class P | | | 47 | | | | | |
| |
Transamerica Logan Circle Emerging Markets Debt | | | | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Fund Level | | | 35 | | | | | |
| Class A | | | — | (A) | | | | |
| Class C | | | — | (A) | | | | |
| Class I | | | — | (A) | | | | |
| Class I2 | | | 1 | | | | | |
| |
Transamerica Morgan Stanley Capital Growth | | | | | | | | |
| |
| Fiscal Year 2009: | | | | | | | 10/31/2012 | |
Class P * | | | 48 | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Class A | | | 94 | | | | | |
| Class B | | | 39 | | | | | |
| Class C | | | 4 | | | | | |
| Class P | | | 7 | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Class A | | | 51 | | | | | |
| Class B | | | 23 | | | | | |
| |
Transamerica Morgan Stanley Growth Opportunities | | | | | | | | |
| |
| Fiscal Year 2009: | | | | | | | 10/31/2012 | |
| Class A | | | 122 | | | | | |
| Class B | | | 48 | | | | | |
| Class C | | | 4 | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Class A | | | 123 | | | | | |
| Class B | | | 1 | | | | | |
| Class C | | | 1 | | | | | |
| Class I | | | — | (A) | | | | |
| |
Transamerica Multi-Managed Balanced | | | | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Class P | | $ | 499 | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Fund Level | | | 92 | | | | | |
| Class P | | | 367 | | | | | |
| |
Transamerica TS&W International Equity | | | | | | | | |
| |
| Fiscal Year 2011: | | | — | (A) | | | 10/31/2014 | |
| Class A | | | | | | | | |
| |
Transamerica WMC Diversified Equity | | | | | | | | |
| |
| Fiscal Year 2009: | | | | | | | 10/31/2012 | |
Class P ** | | | 311 | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Class A | | | 158 | | | | | |
| Class B | | | 23 | | | | | |
| Class C | | | 20 | | | | | |
| Class I | | | 1 | | | | | |
| Class P | | | 689 | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Class A | | | 117 | | | | | |
| Class B | | | 9 | | | | | |
| Class C | | | 11 | | | | | |
| Class I | | | — | (A) | | | | |
| Class P | | | 1,154 | | | | | |
| |
Transamerica WMC Diversified Growth | | | | | | | | |
| |
| Fiscal Year 2009: | | | | | | | 10/31/2012 | |
| Class A | | | 80 | | | | | |
| Class B | | | 145 | | | | | |
| Class C | | | 54 | | | | | |
| |
| Fiscal Year 2010: | | | | | | | 10/31/2013 | |
| Class A | | | 121 | | | | | |
| Class B | | | 46 | | | | | |
| Class C | | | 18 | | | | | |
| Class P | | | 250 | | | | | |
| |
| Fiscal Year 2011: | | | | | | | 10/31/2014 | |
| Class B | | | 18 | | | | | |
| Class P | | | 187 | | | | | |
| |
| | |
| * | | Formerly, Transamerica Premier Focus Fund, Investor Class. |
| |
| ** | | Formerly, Transamerica Premier Diversified Equity Fund, Investor Class. |
| |
| (A) | | Amount rounds to less than $1. |
In addition to the advisory fee waiver for Transamerica AEGON Money Market, TAM or any of its affiliates waive fees or reimburse expenses of one or more classes of Transamerica AEGON Money Market in order to avoid a negative yield. At any point in which Transamerica AEGON Money Market, or any classes thereof, achieves a positive yield, the expenses previously waived or reimbursed within the succeeding three years pursuant to this paragraph may be reimbursed to TAM, to the extent that such reimbursement does not cause classes of Transamerica AEGON Money Market to experience a negative yield. Waived expenses related to the maintenance of the yield are included in the Statements of Operations, within the class expense (reimbursed). As of year ended October 31, 2011 and year ended October 31, 2010, the amounts waived were as follows:
| | | | |
| | | | | |
| Transamerica Funds | | Page 127 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
| | | | | | | | | | | | | | | | | |
| | | | | | | 2011 Amount Waived | | | | | | | 2010 Amount Waived | |
| Fund/Class | | 2011 Amount Waived ($) | | | (Basis Points) | | | 2010 Amount Waived ($) | | | (Basis Points) | |
| Fund | | $ | 610 | | | | 29 | | | $ | 700 | | | | 27 | |
| A | | | 375 | | | | 33 | | | | 441 | | | | 34 | |
| B | | | 157 | | | | 98 | | | | 263 | | | | 99 | |
| C | | | 319 | | | | 98 | | | | 382 | | | | 99 | |
| P | | | — | | | | — | | | | — | (A) | | | — | (B) |
| | |
| (A) | | Amount rounds to less than $1. |
| |
| (B) | | Amount rounds to less than 1 basis point. |
Distribution and service fees: The Funds have 12b-1 distribution plans under the 1940 Act pursuant to which an annual fee, based on ANA, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Funds. The Funds are authorized under the 12b-1 plans to pay fees on each class up to the following limits: 0.35% for Class A, 1.00% for Class B, 1.00% for Class C, and 0.25% for Class P. 12b-1 fees are not applicable for Class I, Class I2, and Class T. TAM has contractually agreed to waive 0.10% of 12b-1 fees on Class A shares of Transamerica AEGON Flexible Income and Transamerica AEGON Short-Term Bond through March 1, 2012.
Underwriter commissions relate to front-end sales charges imposed for Class A shares and contingent deferred sales charges from Class B, Class C, and certain Class A share redemptions. For the year ended October 31, 2011, the underwriter commissions were as follows:
| | | | | |
|
Transamerica AEGON Flexible Income | | | | |
| |
| Received by Underwriter | | $ | 274 | |
| Retained by Underwriter | | | 50 | |
| Contingent Deferred Sales Charge | | | 34 | |
| |
| | | | | |
Transamerica AEGON High Yield Bond | | | | |
| |
| Received by Underwriter | | | 353 | |
| Retained by Underwriter | | | 67 | |
| Contingent Deferred Sales Charge | | | 30 | |
| |
| | | | | |
Transamerica AEGON Money Market | | | | |
| |
| Received by Underwriter | | | — | |
| Retained by Underwriter | | | — | |
| Contingent Deferred Sales Charge | | | 78 | |
| |
| | | | | |
Transamerica AEGON Short-Term Bond | | | | |
| |
| Received by Underwriter | | | 1,202 | |
| Retained by Underwriter | | | 245 | |
| Contingent Deferred Sales Charge | | | 627 | |
| |
| | | | | |
Transamerica Logan Circle Emerging Markets Debt | | | | |
| |
| Received by Underwriter | | | 4 | |
| Retained by Underwriter | | | 1 | |
| Contingent Deferred Sales Charge | | | — | |
| |
| | | | | |
Transamerica Morgan Stanley Capital Growth | | | | |
| |
| Received by Underwriter | | | 386 | |
| Retained by Underwriter | | | 58 | |
| Contingent Deferred Sales Charge | | | 15 | |
| |
| | | | | |
Transamerica Morgan Stanley Growth Opportunities | | | | |
| |
| Received by Underwriter | | | 151 | |
| Retained by Underwriter | | | 23 | |
| Contingent Deferred Sales Charge | | | 18 | |
| |
| | | | | |
Transamerica Multi-Managed Balanced | | | | |
| |
| Received by Underwriter | | $ | 305 | |
| Retained by Underwriter | | | 47 | |
| Contingent Deferred Sales Charge | | | 17 | |
| |
| | | | | |
Transamerica Systematic Small/Mid Cap Value | | | | |
| |
| Received by Underwriter | | | 643 | |
| Retained by Underwriter | | | 97 | |
| Contingent Deferred Sales Charge | | | 113 | |
| |
| | | | | |
Transamerica TS&W International Equity | | | | |
| |
| Received by Underwriter | | | 2 | |
| Retained by Underwriter | | | — | (A) |
| Contingent Deferred Sales Charge | | | — | |
| |
| | | | | |
Transamerica WMC Diversified Equity | | | | |
| |
| Received by Underwriter | | | 268 | |
| Retained by Underwriter | | | 40 | |
| Contingent Deferred Sales Charge | | | 28 | |
| |
| | | | | |
Transamerica WMC Diversified Growth | | | | |
| |
| Received by Underwriter | | | 45 | |
| Retained by Underwriter | | | 7 | |
| Contingent Deferred Sales Charge | | | 8 | |
| |
| | | | | |
Transamerica WMC Quality Value | | | | |
| |
| Received by Underwriter | | | 19 | |
| Retained by Underwriter | | | 3 | |
| Contingent Deferred Sales Charge | | | —(A | ) |
| |
Administrative services: The Funds have entered into an agreement with TFS for financial and legal fund administration services. The Funds pay TFS an annual fee of 0.02% of ANA. The Legal fees on the Statements of Operations are fees paid to external legal counsel.
Transfer agent fees: Pursuant to a Transfer Agency Agreement, as amended, the Funds pay TFS a fee for providing transfer agent services. Fees paid and the amounts due to TFS for the year ended October 31, 2011 are as follows:
| | | | | | | | | |
| Fund | | Fees Paid to TFS | | | Fees Due to TFS | |
| Transamerica AEGON Flexible Income | | $ | 171 | | | $ | 14 | |
| Transamerica AEGON High Yield Bond | | | 480 | | | | 42 | |
| Transamerica AEGON Money Market | | | 513 | | | | 44 | |
| Transamerica AEGON Short-Term Bond | | | 1,299 | | | | 106 | |
| Transamerica Logan Circle Emerging Markets Debt | | | 2 | | | | 1 | |
| Transamerica Morgan Stanley Capital Growth | | | 452 | | | | 45 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 701 | | | | 60 | |
| Transamerica Multi-Managed Balanced | | | 782 | | | | 62 | |
| Transamerica TS&W International Equity | | | 98 | | | | 7 | |
| Transamerica Systematic Small/Mid Cap Value | | | 1,188 | | | | 93 | |
| Transamerica WMC Diversified Equity | | | 2,011 | | | | 350 | |
| Transamerica WMC Diversified Growth | | | 1,990 | | | | 169 | |
| Transamerica WMC Quality Value | | | 92 | | | | 9 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 128 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
Deferred compensation plan: Under a non-qualified deferred compensation plan effective January 1, 1996, as amended and restated (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the Trust to an Independent Trustee on a current basis for services rendered as Trustee. Deferred compensation amounts will accumulate based on the value of Class A (or comparable) shares of a series of Transamerica Funds (without imposition of sales charge), or investment options under Transamerica Partners Institutional Funds and Transamerica Institutional Asset Allocation Funds, as elected by the Trustee.
Brokerage commissions: Transamerica Morgan Stanley Growth Opportunities incurred $1 on security transactions placed with affiliates of the advisers or sub-advisers for the year ended October 31, 2011. There were no other brokerage commissions incurred on security transactions placed with affiliates of the advisers or sub-advisers for the year ended October 31, 2011.
NOTE 4. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the year ended October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | | |
| | | Purchases of securities: | | | Proceeds from maturities and sales of securities: | |
| Fund | | Long-term | | | U.S. Government | | | Long-term | | | U.S. Government | |
| Transamerica AEGON Flexible Income | | $ | 81,478 | | | $ | 20,336 | | | $ | 101,526 | | | $ | 5,957 | |
| |
| Transamerica AEGON High Yield Bond | | | 694,760 | | | | 17,130 | | | | 626,788 | | | | 17,530 | |
| |
| Transamerica AEGON Short-Term Bond | | | 1,436,160 | | | | — | | | | 1,484,052 | | | | — | |
| |
| Transamerica Logan Circle Emerging Markets Debt | | | 127,243 | | | | 2,642 | | | | 28,707 | | | | — | |
| |
| Transamerica Morgan Stanley Capital Growth | | | 563,294 | | | | — | | | | 174,845 | | | | — | |
| |
| Transamerica Morgan Stanley Growth Opportunities | | | 458,349 | | | | — | | | | 450,801 | | | | — | |
| |
| Transamerica Multi-Managed Balanced | | | 912,020 | | | | 71,544 | | | | 889,384 | | | | 169,086 | |
| |
| Transamerica Systematic Small/Mid Cap Value | | | 1,148,435 | | | | — | | | | 1,136,505 | | | | — | |
| |
| Transamerica TS&W International Equity | | | 76,899 | | | | — | | | | 21,007 | | | | — | |
| |
| Transamerica WMC Diversified Equity | | | 1,112,718 | | | | — | | | | 1,363,111 | | | | — | |
| |
| Transamerica WMC Diversified Growth | | | 764,984 | | | | — | | | | 894,607 | | | | — | |
| |
| Transamerica WMC Quality Value | | | 1,747,680 | | | | — | | | | 426,582 | | | | — | |
| |
NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS
Transamerica AEGON Flexible Income:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of derivatives held at year end is indicative of the volume held throughout the year. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Effect of Derivative Instruments on the Statements of Operations for the year ended October 31, 2011:
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Foreign exchange | |
| Location | | contracts | |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized gain (loss) on transactions from forward foreign currency contracts | | $ | (60 | ) |
| |
Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net increase (decrease) in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | 3 | |
| |
| Total | | $ | (57 | ) |
| |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
| | | | |
| | | | | |
| Transamerica Funds | | Page 129 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica AEGON Short-Term Bond:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of derivatives held at year end is indicative of the volume held throughout the year. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Effect of Derivative Instruments on the Statements of Operations for the year ended October 31, 2011:
Derivatives not accounted for as hedging instruments
| | | | | |
| Location | | Interest rate
contracts | |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized gain (loss) on futures contracts | | $ | (5,854 | ) |
| | | | |
Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net increase (decrease) in unrealized appreciation (depreciation) on futures contracts | | | 1,743 | |
| | | | |
| Total | | $ | (4,111 | ) |
| | | | |
Transamerica Logan Circle Emerging Markets Debt:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of derivatives held at year end is indicative of the volume held throughout the year. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2011:
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Foreign exchange | |
| Location | | contracts | |
Asset derivatives | | | | |
| Unrealized appreciation on forward foreign currency contracts | | $ | 182 | |
| | | | |
Liability derivatives | | | | |
| Unrealized depreciation on forward foreign currency contracts | | | (191 | ) |
| | | | |
| Total | | $ | (9 | ) |
| | | | |
Effect of Derivative Instruments on the Statements of Operations for the year ended October 31, 2011:
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Foreign exchange | |
| Location | | contracts | |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized gain (loss) from forward foreign currency contracts | | $ | 254 | |
| | | | |
Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net increase (decrease) in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | (9 | ) |
| | | | |
| Total | | $ | 245 | |
| | | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
| | | | |
| | | | | |
| Transamerica Funds | | Page 130 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica Multi-Managed Balanced:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of futures rose throughout the year to eight and decreased to three at year end. The volume of written options and swaptions held at year end is indicative of the volume held throughout the year. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2011:
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | |
| Location | | Equity contracts | | | Interest rate
contracts | | | Total | |
Asset derivatives | | | | | | | | | | | | |
| Purchased options and swaptions, at value | | $ | — | | | $ | 56 | | | $ | 56 | |
| Unrealized appreciation on futures contracts | | | 44 | | | | 87 | | | | 131 | * |
Liability derivatives | | | | | | | | | | | | |
| Written options and swaptions, at value | | | — | | | | (11 | ) | | | (11 | ) |
| Unrealized depreciation on futures contracts | | | — | | | | (5 | ) | | | (5) | * |
| | | | |
| |
| Total | | $ | 44 | | | $ | 127 | | | $ | 171 | |
| | | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011:
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | |
| Location | | Equity contracts | | | Interest rate
contracts | | | Total | |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | |
| Net realized gain (loss) on purchased option and swaption contracts | | $ | — | | | $ | (58 | ) | | $ | (58 | ) |
| Net realized gain (loss) on written option and swaption contracts | | | — | | | | 89 | | | | 89 | |
| Net realized gain (loss) on futures contracts | | | (105 | ) | | | 50 | | | | (55 | ) |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | |
| Net increase (decrease) in unrealized appreciation (depreciation) on purchased option and swaption contracts | | | — | | | | (71 | ) | | | (71 | ) |
| Net increase (decrease) in unrealized appreciation (depreciation) on written option and swaption contracts | | | — | | | | 31 | | | | 31 | |
| Net increase (decrease) in unrealized appreciation (depreciation) on futures contracts | | | 44 | | | | 82 | | | | 126 | |
| | | | |
| |
| Total | | $ | (61 | ) | | $ | 123 | | | $ | 62 | |
| | | | |
NOTE 6. FEDERAL INCOME TAX MATTERS
The Funds have not made any provision for federal income or excise taxes due to their policy to distribute all of their taxable income and capital gains to their shareholders and otherwise qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has evaluated the Funds’ tax positions taken for all open tax years (2008 — 2010), if applicable, or expected to be taken in the Funds’ 2011 tax returns, and has concluded that no provision for income tax is required in the Funds’ financial statements. If applicable, the funds recognize interest accrued related to unrecognized tax benefits in interest and penalties expense in Other on the Statements of Operations. The Funds identify their major tax jurisdictions as U.S. Federal, the state of Florida, and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to different treatment for items including, but not limited to wash sales, structured notes, foreign bonds, swaps, net operating losses, distribution reclasses for REITs, passive foreign investment companies, foreign currency transactions, and capital loss carryforwards, undistributed income associated with the redemption of shares.
Therefore, distributions determined in accordance with tax regulations may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. These reclassifications are as follows:
| | | | |
| | | | | |
| Transamerica Funds | | Page 131 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 6. (continued)
| | | | | | | | | | | | | |
| | | | | | | | | | | Undistributed | |
| | | | | | | | | | | (accumulated) net | |
| | | Shares of | | | Undistributed | | | realized gain | |
| | | beneficial | | | (accumulated) net | | | (loss) from | |
| | | interest, unlimited | | | investment income | | | investment | |
| Fund | | shares authorized | | | (loss) | | | securities | |
| Transamerica AEGON Flexible Income | | $ | — | | | $ | 156 | | | $ | (156 | ) |
| Transamerica AEGON High Yield Bond | | | (30 | ) | | | 30 | | | | — | |
| Transamerica AEGON Short-Term Bond | | | — | | | | 2,520 | | | | (2,520 | ) |
| Transamerica Logan Circle Emerging Markets Debt | | | (48 | ) | | | 317 | | | | (269 | ) |
| Transamerica Morgan Stanley Capital Growth | | | 484 | | | | 1,376 | | | | (1,860 | ) |
| Transamerica Morgan Stanley Growth Opportunities | | | (2,025 | ) | | | 2,192 | | | | (167 | ) |
| Transamerica Multi-Managed Balanced | | | (9 | ) | | | 138 | | | | (129 | ) |
| Transamerica Systematic Small/Mid Cap Value | | | (2,856 | ) | | | 2,856 | | | | — | |
| Transamerica TS&W International Equity | | | — | | | | (86 | ) | | | 86 | |
| Transamerica WMC Diversified Equity | | | (852 | ) | | | 1,288 | | | | (436 | ) |
| Transamerica WMC Diversified Growth | | | (32 | ) | | | 33 | | | | (1 | ) |
| Transamerica WMC Quality Value | | | (62 | ) | | | 62 | | | | — | |
The capital loss carryforwards are available to offset future realized capital gains through the periods listed below. Funds not listed in the table below do not have any capital loss carryforwards.
| | | | | | | | | |
| Fund | | Capital Loss Carryforwards | | | Available Through | |
| Transamerica AEGON Flexible Income | | $ | 9,421 | | | October 31, 2015 |
| Transamerica AEGON Flexible Income | | | 51,526 | | | October 31, 2016 |
| Transamerica AEGON Flexible Income | | | 20,523 | | | October 31, 2017 |
| Transamerica AEGON High Yield Bond | | | 24,499 | | | October 31, 2017 |
| Transamerica AEGON Money Market | | | 1 | | | October 31, 2013 |
| Transamerica AEGON Money Market | | | 1 | | | October 31, 2014 |
| Transamerica AEGON Money Market | | | — | (A) | | October 31, 2015 |
| Transamerica AEGON Money Market | | | 1 | | | October 31, 2017 |
| Transamerica Logan Circle Emerging Markets Debt | | | 65 | | | October 31, 2019 |
| Transamerica Multi-Managed Balanced | | | 1,201 | | | October 31, 2016 |
| Transamerica Multi-Managed Balanced | | | 4,174 | | | October 31, 2017 |
| Transamerica TS&W International Equity | | | 1,886 | | | October 31, 2017 |
| Transamerica WMC Diversified Equity | | | 12,339 | | | October 31, 2016 |
| Transamerica WMC Diversified Equity | | | 6,050 | | | October 31, 2017 |
| Transamerica WMC Diversified Growth | | | 421,389 | | | October 31, 2017 |
| Transamerica WMC Quality Value | | | 14,538 | | | October 31, 2019 |
| | |
| (A) | | Amount rounds to less than $1. |
The capital loss carryforwards utilized or expired during the year ended October 31, 2011 were as follows:
| | | | | |
| | | Capital Loss Carryforwards | |
| | | Utilized/Expired During the | |
| Fund | | Year Ended October 31, 2011 | |
| Transamerica AEGON Flexible Income | | $ | 3,522 | |
| Transamerica AEGON High Yield Bond | | | 28,428 | |
| Transamerica Morgan Stanley Capital Growth | | | 13,568 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 46,703 | |
| Transamerica Multi-Managed Balanced | | | 19,360 | |
| Transamerica Systematic Small/Mid Cap Value | | | 161,135 | |
| Transamerica TS&W International Equity | | | 2,482 | |
| Transamerica WMC Diversified Equity | | | 38,011 | |
| Transamerica WMC Diversified Growth | | | 63,562 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 132 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 6. (continued)
The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term gains being treated as ordinary income for tax purposes. The tax character of distributions paid during 2011 and 2010 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2011 Distributions Paid From | | | 2010 Distributions Paid From | |
| | | Ordinary | | | Long-term | | | | | | | | | Long-term | | | | |
| | | income | | | Capital Gain | | | Return of Capital | | | Ordinary income | | | Capital Gain | | | Return of Capital | |
| Transamerica AEGON Flexible Income | | $ | 14,368 | | | $ | — | | | $ | — | | | $ | 15,799 | | | $ | — | | | $ | — | |
| Transamerica AEGON High Yield Bond | | | 50,034 | | | | — | | | | — | | | | 48,900 | | | | — | | | | — | |
| Transamerica AEGON Money Market | | | 14 | | | | — | | | | — | | | | 15 | | | | — | | | | — | |
| Transamerica AEGON Short-Term Bond | | | 101,889 | | | | 6,441 | | | | — | | | | 89,330 | | | | — | | | | — | |
| Transamerica Logan Circle Emerging Markets Debt | | | 42 | | | | — | | | | — | | | | | | | | | | | | | |
| Transamerica Morgan Stanley Capital Growth | | | — | | | | — | | | | — | | | | 178 | | | | — | | | | — | |
| Transamerica Morgan Stanley Growth Opportunities | | | — | | | | 696 | | | | — | | | | — | | | | — | | | | — | |
| Transamerica Multi-Managed Balanced | | | 4,520 | | | | — | | | | — | | | | 9,357 | | | | — | | | | — | |
| Transamerica TS&W International Equity | | | 1,049 | | | | — | | | | — | | | | 844 | | | | — | | | | — | |
| Transamerica WMC Diversified Equity | | | 11,530 | | | | 598 | | | | — | | | | 1,673 | | | | — | | | | — | |
| Transamerica WMC Diversified Growth | | | — | | | | — | | | | — | | | | 5,886 | | | | — | | | | — | |
| Transamerica WMC Quality Value | | | 16,307 | | | | — | | | | — | | | | | | | | | | | | | |
The tax basis components of distributable earnings as of October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Undistributed | | | | | | | | | | | Net Unrealized | |
| | | Undistributed | | | Long-term Capital | | | Capital Loss | | | Other Temporary | | | Appreciation | |
| Fund | | Ordinary income | | | Gain | | | Carryforward | | | Differences | | | (Depreciation) (A) |
| Transamerica AEGON Flexible Income | | $ | 877 | | | $ | — | | | $ | (81,470 | ) | | $ | — | | | $ | 6,853 | |
| Transamerica AEGON High Yield Bond | | | 2,665 | | | | — | | | | (24,499 | ) | | | (97 | ) | | | (3,843 | ) |
| Transamerica AEGON Money Market | | | 3 | | | | — | | | | (3 | ) | | | — | | | | — | |
| Transamerica AEGON Short-Term Bond | | | 6,359 | | | | 15,858 | | | | — | | | | (4,342 | ) | | | 13,020 | |
| Transamerica Logan Circle Emerging Markets Debt | | | 1,033 | | | | — | | | | (65 | ) | | | (12 | ) | | | (687 | ) |
| Transamerica Morgan Stanley Capital Growth | | | 755 | | | | 23,887 | | | | — | | | | — | | | | 24,638 | |
| Transamerica Morgan Stanley Growth Opportunities | | | — | | | | 70,326 | | | | — | | | | — | | | | (7,636 | ) |
| Transamerica Multi-Managed Balanced | | | 3,446 | | | | 41,471 | | | | (5,375 | ) | | | — | | | | 13,075 | |
| Transamerica Systematic Small/Mid Cap Value | | | — | | | | 34,566 | | | | — | | | | — | | | | (41,921 | ) |
| Transamerica TS&W International Equity | | | 3,000 | | | | — | | | | (1,886 | ) | | | — | | | | (4,269 | ) |
| Transamerica WMC Diversified Equity | | | — | | | | 73,047 | | | | (18,389 | ) | | | — | | | | 26,221 | |
| Transamerica WMC Diversified Growth | | | — | | | | — | | | | (421,389 | ) | | | — | | | | 130,884 | |
| Transamerica WMC Quality Value | | | 2,504 | | | | — | | | | (14,538 | ) | | | — | | | | (157 | ) |
| | |
| (A) | | Amounts include unrealized gain/loss from wash sales, foreign currency, securities sold short, and derivative instruments, if applicable. |
NOTE 7. REORGANIZATION
Transamerica AEGON Flexible Income:
On November 13, 2009, Transamerica AEGON Flexible Income (formerly, Transamerica Flexible Income) acquired all of the net assets of Transamerica Convertible Securities pursuant to a Plan of Reorganization. Transamerica AEGON Flexible Income is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 8,937 shares of Transamerica AEGON Flexible Income for 8,540 shares of Transamerica Convertible Securities outstanding on November 13, 2009. Transamerica Convertible Securities net assets at that date, $75,162, including $5,629 unrealized appreciation, were combined with those of Transamerica AEGON Flexible Income. The aggregate net assets of Transamerica AEGON Flexible Income immediately before the acquisition were $186,259; the combined net assets of Transamerica AEGON Flexible Income immediately after the acquisition were $261,421. Shares issued with the acquisition were as follows:
Transamerica Convertible Securities
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| A | | | 1,554 | | | $ | 13,041 | |
| B | | | 294 | | | | 2,469 | |
| C | | | 717 | | | | 5,997 | |
| I2 | | | 6,372 | | | | 53,655 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 133 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
The exchange ratios of the reorganization for each class are as follows (Transamerica AEGON Flexible Income shares issuable/Transamerica Convertible Securities):
Transamerica Convertible Securities
| | | | | |
| Classes | | Exchange Ratio | |
| A | | | 1.05 | |
| B | | | 1.04 | |
| C | | | 1.04 | |
| I2 | | | 1.05 | |
Transamerica AEGON High Yield Bond:
On November 20, 2009, Transamerica AEGON High Yield Bond (formerly, Transamerica High Yield Bond) acquired all of the net assets of Transamerica Premier High Yield Bond Fund pursuant to a Plan of Reorganization. AEGON High Yield Bond is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 10,998 shares of Transamerica AEGON High Yield Bond for 14,218 shares of Transamerica Premier High Yield Bond Fund outstanding on November 20, 2009. Transamerica Premier High Yield Bond Fund’s net assets at that date, $93,513, including $7,786 unrealized appreciation, were combined with those of Transamerica AEGON High Yield Bond. The aggregate net assets of Transamerica AEGON High Yield Bond immediately before the acquisition were $582,106; the combined net assets of Transamerica AEGON High Yield Bond immediately after the acquisition were $675,619. Shares issued with the acquisition were as follows:
Transamerica Premier High Yield Bond Fund
| | | | | | | | | |
| Classes | | Shares | | | Amount | |
| I | | | 4,928 | | | $ | 42,041 | |
| P | | | 6,070 | | | | 51,472 | |
The exchange ratios of the reorganization for each class are as follows (Transamerica AEGON High Yield Bond shares issuable/ Transamerica Premier High Yield Bond Fund):
Transamerica Premier High Yield Bond Fund
| | | | | |
| Classes | | Exchange Ratio | |
| I2 | | | 0.77 | |
| P | | | 0.78 | |
Transamerica AEGON Money Market:
On November 20, 2009, Transamerica AEGON Money Market (formerly, Transamerica Money Market) acquired all of the net assets of Transamerica Premier Cash Reserve Fund pursuant to a Plan of Reorganization. Transamerica AEGON Money Market is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 43,668 shares of Transamerica AEGON Money Market for 43,668 shares of Transamerica Premier Cash Reserve Fund outstanding on November 20, 2009. Transamerica Premier Cash Reserve Fund’s net assets at that date, $43,668, were combined with those of Transamerica AEGON Money Market. The aggregate net assets of Transamerica AEGON Money Market immediately before the acquisition were $254,159; the combined net assets of Transamerica AEGON Money Market immediately after the acquisition were $297,827. Shares issued with the acquisition were as follows:
Transamerica Premier Cash Reserve Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| P | | | 43,668 | | | $ | 43,668 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 134 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
The exchange ratio of the reorganization for the class is as follows (Transamerica AEGON Money Market shares issuable/Transamerica Premier Cash Reserve Fund):
Transamerica Premier Cash Reserve Fund
| | | | | |
| Class | | Exchange Ratio | |
| P | | | 1.00 | |
Transamerica Morgan Stanley Capital Growth:
On November 13, 2009, Transamerica Morgan Stanley Capital Growth (formerly, Transamerica Focus) acquired all of the net assets of Transamerica Premier Focus Fund pursuant to a Plan of Reorganization. Transamerica Premier Focus Fund is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 6,344 shares of Transamerica Premier Focus Fund for 6,344 shares of Transamerica Morgan Stanley Capital Growth. As part of the acquisition shareholders of the accounting survivor, Transamerica Premier Focus Fund, received an additional 2,130 shares; resulting in a total shares of 5,802 of Transamerica Morgan Stanley Capital Growth. Transamerica Morgan Stanley Capital Growth’s net assets at that date, $72,239, including $4,752 unrealized appreciation, were combined with those of Transamerica Premier Focus Fund. The aggregate net assets of Transamerica Premier Focus Fund immediately before the acquisition was $68,302; the combined net assets of Transamerica Morgan Stanley Capital Growth immediately after the acquisition was $140,541. Shares issued with the acquisition were as follows:
Transamerica Premier Focus Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| P | | | 5,802 | | | $ | 68,302 | |
Transamerica Morgan Stanley Capital Growth
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| A | | | 3,369 | | | $ | 39,661 | |
| B | | | 1,700 | | | | 18,628 | |
| C | | | 1,275 | | | | 13,950 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica Morgan Stanley Capital Growth shares issuable/Transamerica Premier Focus Fund):
Transamerica Premier Focus Fund
| | | | | |
| Class | | Exchange Ratio | |
| P | | | 1.58 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica Morgan Stanley Capital Growth shares issuable/Transamerica Morgan Stanley Capital Growth)
Transamerica Morgan Stanley Capital Growth
| | | | | |
| Class | | Exchange Ratio | |
| A | | | 1.00 | |
| B | | | 1.00 | |
| C | | | 1.00 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 135 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
Transamerica Morgan Stanley Growth Opportunities:
On November 13, 2009, Transamerica Morgan Stanley Growth Opportunities (formerly, Transamerica Growth Opportunities) acquired all of the net assets of Transamerica Premier Growth Opportunities Fund pursuant to a Plan of Reorganization. Transamerica Morgan Stanley Growth Opportunities is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 12,010 shares of Transamerica Morgan Stanley Growth Opportunities for 4,478 shares of Transamerica Premier Growth Opportunities Fund outstanding on November 13, 2009. Transamerica Premier Growth Opportunities Fund’s net assets at that date, $96,199, including $12,641 unrealized appreciation, were combined with those of Transamerica Morgan Stanley Growth Opportunities. The aggregate net assets of Transamerica Morgan Stanley Growth Opportunities immediately before the acquisition were $197,060; the combined net assets of Transamerica Morgan Stanley Growth Opportunities immediately after the acquisition were $293,259. Shares issued with the acquisition were as follows:
Transamerica Premier Growth Opportunities Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| P | | | 12,010 | | | $ | 96,199 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica Morgan Stanley Growth Opportunities shares issuable/Transamerica Premier Growth Opportunities Fund):
Transamerica Premier Growth Opportunities Fund
| | | | | |
| Class | | Exchange Ratio | |
| P | | | 2.68 | |
Transamerica Multi-Managed Balanced:
On November 13, 2009, Transamerica Multi-Managed Balanced (formerly, Transamerica Balanced) acquired all of the net assets of Transamerica Value Balanced and Transamerica Premier Balanced Fund pursuant to a Plan of Reorganization. Transamerica Multi-Managed Balanced is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 16,603 shares of Transamerica Multi-Managed Balanced for 2,784 shares of Transamerica Value Balanced and 13,545 shares of Transamerica Premier Balanced Fund outstanding on November 13, 2009. Transamerica Value Balanced net assets at that date, $28,129, including $4,036 unrealized appreciation, were combined with those of Transamerica Multi-Managed Balanced. Transamerica Premier Balanced Fund’s net assets at that date, $281,788, including $32,655 unrealized appreciation, were combined with those of Transamerica Multi-Managed Balanced. The aggregate net assets of Transamerica Multi-Managed Balanced immediately before the acquisition were $98,823; the combined net assets of Transamerica Multi-Managed Balanced immediately after the acquisition were $408,740. Shares issued with the acquisition were as follows:
Transamerica Value Balanced
| | | | | | | | | |
| Classes | | Shares | | | Amount | |
| A | | | 1,014 | | | $ | 18,932 | |
| B | | | 207 | | | | 3,855 | |
| C | | | 289 | | | | 5,342 | |
Transamerica Premier Balanced Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| P | | | 15,093 | | | $ | 281,788 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 136 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
The exchange ratios of the reorganization for each class are as follows (Transamerica Multi-Managed Balanced shares issuable/Transamerica Value Balanced):
Transamerica Value Balanced
| | | | | |
| Classes | | Exchange Ratio | |
| A | | | 0.54 | |
| B | | | 0.54 | |
| C | | | 0.54 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica Multi-Managed Balanced shares issuable/Transamerica Premier Balanced Fund):
Transamerica Premier Balanced Fund
| | | | | |
| Class | | Exchange Ratio | |
| P | | | 1.11 | |
Transamerica TS&W International Equity
On March 1, 2011, Transamerica TS&W International Equity acquired all of the net assets of TS&W International Equity Portfolio pursuant to a Plan of Reorganization. TS&W International Equity Portfolio is the accounting survivor. The purpose of the transaction was to achieve additional international exposure with a new client base within the Trust. The acquisition was accomplished by a tax-free exchange of 5,502 shares of Transamerica TS&W International Equity for 5,502 shares of TS&W International Equity Portfolio outstanding on March 1, 2011. Transamerica TS&W International Equity’s net assets at that date were $200, which were combined with those of TS&W International Equity Portfolio. The aggregate net assets of TS&W International Equity Portfolio were $83,612; the combined net assets of Transamerica TS&W International Equity immediately after the acquisition were $83,812. Shares issued with the acquisition were as follows:
TS&W International Equity Portfolio
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| I | | | 5,502 | | | $ | 83,612 | |
Transamerica TS&W International Equity
| | | | | | | | | |
| Classes | | Shares | | | Amount | |
| A | | | 7 | | | $ | 100 | |
| C | | | 7 | | | | 100 | |
| I | | | (a | ) | | | (a | ) |
| I2 | | | (a | ) | | | (a | ) |
| | |
| (a) | | Classes I and I2 held less 1 share and $1 at time of acquisition. |
The exchange ratios of the reorganization for each class are as follows (Transamerica TS&W International Equity shares issuable/TS&W International Equity Portfolio):
TS&W International Equity Portfolio
| | | | | |
| Class | | Exchange Ratio | |
| I | | | 1.00 | |
| | | | |
| Transamerica Funds | | Page 137 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
The exchange ratios of the reorganization for each class are as follows (Transamerica TS&W International Equity shares issuable/ Transamerica TS&W International Equity):
Transamerica TS&W International Equity
| | | | | |
| Classes | | Exchange Ratio | |
| A | | | 1.00 | |
| C | | | 1.00 | |
| I | | | 1.00 | |
| I2 | | | 1.00 | |
Assuming the reorganization had been completed on November 1, 2010, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operations for the year ended October 31, 2011, are as follows:
| | | | | |
|
| Net investment income | | $ | 6,717 | |
| Net realized and unrealized gain | | | 17,130 | |
| Net increase in net assets resulting from operations | | | 23,847 | |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Transamerica TS&W International Equity that have been included in the Fund’s Statement of Operations since March 1, 2011.
Transamerica WMC Diversified Equity:
On November 13, 2009, Transamerica WMC Diversified Equity (formerly, Transamerica Diversified Equity) acquired all of the net assets of Transamerica Science & Technology, Transamerica Templeton Global, Transamerica Premier Diversified Equity Fund and Transamerica Premier Institutional Diversified Equity Fund pursuant to a Plan of Reorganization. Transamerica Premier Diversified Equity Fund is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 35,310 shares of Transamerica WMC Diversified Equity for 17,970 shares of Transamerica Science & Technology, 4,437 shares of Transamerica Templeton Global, 21,531 shares of Transamerica Premier Diversified Equity Fund and 216 shares of Transamerica Premier Institutional Diversified Equity Fund outstanding on November 13, 2009. Transamerica Science & Technology’s net assets at that date, $71,411, including $16,691 unrealized appreciation, were combined with those of Transamerica WMC Diversified Equity. Transamerica Templeton Global net assets at that date, $103,595, including $5,276 unrealized appreciation, were combined with those of Transamerica WMC Diversified Equity. Transamerica Premier Diversified Equity Fund’s net assets at that date, $276,775, including $29,067 unrealized appreciation, were combined with those of Transamerica WMC Diversified Equity. Transamerica Premier Institutional Diversified Equity Fund’s net assets at that date, $2,115, including $346 unrealized appreciation, were combined with those of Transamerica WMC Diversified Equity, which was newly organized on November 13, 2009; therefore, it had no assets before the acquisition. The combined net assets of Transamerica WMC Diversified Equity immediately after the acquisition were $453,896. Shares issued with the acquisition were as follows:
Transamerica Science & Technology
| | | | | | | | | |
| Classes | | Shares | | | Amount | |
| A | | | 500 | | | $ | 6,423 | |
| B | | | 131 | | | | 1,678 | |
| C | | | 128 | | | | 1,647 | |
| I2 | | | 4,796 | | | | 61,663 | |
Transamerica Templeton Global
| | | | | | | | | |
| Classes | | Shares | | | Amount | |
| A | | | 6,267 | | | $ | 80,558 | |
| B | | | 654 | | | | 8,412 | |
| C | | | 1,138 | | | | 14,625 | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 138 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
Transamerica Premier Diversified Equity Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| P | | | 21,531 | | | $ | 276,775 | |
Transamerica Premier Institutional Diversified Equity Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| I2 | | | 165 | | | $ | 2,115 | |
The exchange ratios of the reorganization for each class are as follows (Transamerica WMC Diversified Equity shares issuable/Transamerica Science & Technology):
Transamerica Science & Technology
| | | | | |
| Classes | | Exchange Ratio | |
| A | | | 0.30 | |
| B | | | 0.28 | |
| C | | | 0.28 | |
| I2 | | | 0.31 | |
The exchange ratios of the reorganization for each class are as follows (Transamerica WMC Diversified Equity shares issuable/Transamerica Templeton Global):
Transamerica Templeton Global
| | | | | |
| Classes | | Exchange Ratio | |
| A | | | 1.84 | |
| B | | | 1.74 | |
| C | | | 1.72 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica WMC Diversified Equity shares issuable/Transamerica Premier Diversified Equity Fund):
Transamerica Premier Diversified Equity Fund
| | | | | |
| Class | | Exchange Ratio | |
| P | | | 1.00 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica WMC Diversified Equity shares issuable/Transamerica Premier Institutional Diversified Equity Fund):
Transamerica Premier Institutional Diversified Equity Fund
| | | | | |
| Class | | Exchange Ratio | |
| I2 | | | 0.76 | |
Transamerica WMC Diversified Growth:
On November 13, 2009, Transamerica WMC Diversified Growth acquired all of the net assets of Transamerica Premier Equity Fund and Transamerica Premier Institutional Equity Fund pursuant to a Plan of Reorganization. Transamerica WMC Diversified Growth is the accounting survivor. The purpose of the transaction was to achieve a more cohesive, focused, and streamlined fund complex. The acquisition was accomplished by a tax-free exchange of 66,720 shares of Transamerica WMC Diversified Growth for 25,932 shares of Transamerica Premier Equity Fund and 8,477 shares of Transamerica Premier Institutional Equity Fund outstanding on November 13, 2009. Transamerica Premier Equity Fund’s net assets at that date, $459,628, including $49,578 unrealized appreciation, were combined with those of Transamerica WMC Diversified Growth. Transamerica Premier Institutional Equity Fund’s net assets at that date, $80,466, including $7,579 unrealized appreciation, were combined with those of Transamerica WMC Diversified Growth. The aggregate net assets of Transamerica WMC Diversified Growth immediately before the acquisition were $1,167,181; the combined net assets of Transamerica WMC Diversified Growth immediately after the acquisition were $1,707,275. Shares issued with the acquisition were as follows:
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| Transamerica Funds | | Page 139 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 7. (continued)
Transamerica Premier Equity Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| P | | | 56,955 | | | $ | 459,628 | |
Transamerica Premier Institutional Equity Fund
| | | | | | | | | |
| Class | | Shares | | | Amount | |
| I2 | | | 9,765 | | | $ | 80,466 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica WMC Diversified Growth shares issuable/ Transamerica Premier Equity Fund):
Transamerica Premier Equity Fund
| | | | | |
| Class | | Exchange Ratio | |
| P | | | 2.20 | |
The exchange ratio of the reorganization for the class is as follows (Transamerica WMC Diversified Growth shares issuable/ Transamerica Premier Institutional Equity Fund):
Transamerica Premier Institutional Equity Fund
| | | | | |
| Class | | Exchange Ratio | |
| I2 | | | 1.15 | |
NOTE 8 SUBSEQUENT EVENTS
The Board of Trustees has approved reorganization pursuant to which Transamerica Morgan Stanley Mid-Cap Growth’s assets would be acquired, and its liabilities would be assumed, by Transamerica Morgan Stanley Growth Opportunities in exchange for shares of Transamerica Morgan Stanley Growth Opportunities. The reorganization is anticipated to be effective on or about February 10, 2012.
The Board of Trustees has approved reorganization pursuant to which Transamerica WMC Diversified Growth assets would be acquired, and its liabilities would be assumed, by Transamerica WMC Diversified Equity in exchange for shares of Transamerica WMC Diversified Equity. The reorganization is anticipated to be effective on or about February 10, 2012.
Effective on or about February 10, 2012, Class P shares of Transamerica AEGON High Yield Bond, Transamerica AEGON Money Market, Transamerica Morgan Stanley Capital Growth, Transamerica Morgan Stanley Growth Opportunities, Transamerica Multi-Managed Balanced, Transamerica WMC Diversified Equity and Transamerica WMC Diversified Growth will be converted into Class I shares. It is anticipated that the conversion of Class P shares into Class I shares will be tax-free for Fund shareholders.
Management has evaluated subsequent events through the date of issuance of the financial statements, and determined that no other material events or transactions would require recognition or disclosure in the Funds’ financial statements.
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Transamerica Funds | | Page 140 | | Annual Report 2011 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees & Shareholders of Transamerica Funds:
We have audited the accompanying statements of assets and liabilities of Transamerica AEGON Flexible Income, Transamerica AEGON High Yield Bond, Transamerica AEGON Money Market, Transamerica AEGON Short-Term Bond, Transamerica Logan Circle Emerging Markets Debt, Transamerica Morgan Stanley Capital Growth, Transamerica Morgan Stanley Growth Opportunities, Transamerica Multi-Managed Balanced, Transamerica Systematic Small/Mid Cap Value, Transamerica TS&W International Equity, Transamerica WMC Diversified Equity, Transamerica WMC Diversified Growth and Transamerica WMC Quality Value, (collectively, the “Funds”) (thirteen of the funds of the Transamerica Funds), including the schedules of investments, as of October 31, 2011, and the related statements of operations and changes in net assets, and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statement of changes in net assets and the financial highlights of Transamerica TS&W International Equity for the year ended October 31, 2010, as well as all the financial highlights of the Funds for periods prior to November 1, 2009, were audited by another independent registered public accounting firm, whose reports dated December 17, 2010 and December 21, 2009, respectively, expressed an unqualified opinions on that statement of changes in net assets and those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned thirteen Funds of the Transamerica Funds at October 31, 2011, the results of their operations and changes in their net assets, and the financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
December 30, 2011
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Transamerica Funds | | Page 141 | | Annual Report 2011 |
TRANSAMERICA AEGON FLEXIBLE INCOME
(FORMERLY TRANSAMERICA FLEXIBLE INCOME)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica AEGON Flexible Income (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was above the median for its peer universe for the past 1-year period and below the median for the past 3-, 5- and 10-year periods. The Board noted that it had approved replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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Transamerica Funds | | Page 142 | | Annual Report 2011 |
TRANSAMERICA AEGON HIGH YIELD BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica AEGON High Yield Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and AEGON USA Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about standard fees for accounts managed by the Sub-Adviser in this strategy. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was below the median for its peer universe for the past 1-year period, above the median for the past 3- and 5-year periods and in line with the median for the past 10-year period. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Fund. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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Transamerica Funds | | Page 143 | | Annual Report 2011 |
TRANSAMERICA AEGON MONEY MARKET
(FORMERLY TRANSAMERICA MONEY MARKET)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica AEGON Money Market (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was in line with the median for its peer universe for the past 1-year period and below the median for the past 3- and 5- year periods. The Board noted that it had approved replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was in line with the median for its peer group and above the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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Transamerica Funds | | Page 144 | | Annual Report 2011 |
TRANSAMERICA AEGON SHORT-TERM BOND
(FORMERLY TRANSAMERICA SHORT-TERM BOND)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica AEGON Short-Term Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was above the median for its peer universe for the past 1- and 3-year periods. The Board noted that it had approved replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was in line with the median for its peer group and above the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were in line with the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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Transamerica Funds | | Page 145 | | Annual Report 2011 |
TRANSAMERICA LOGAN CIRCLE EMERGING MARKETS DEBT
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on July 14, 2011, the Board reviewed and considered the approval of a proposed mandate to establish Transamerica Logan Circle Emerging Markets Debt as a new series of Transamerica Funds. The Board reviewed and considered the proposed investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Logan Circle Emerging Markets Debt (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the proposed investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Logan Circle Partners, LP (“Logan Circle”) (the “Sub-Adviser”), to determine whether the agreements should be approved for an initial two-year period.
Following their review and consideration, the Board determined that the proposed Investment Advisory Agreement and the proposed Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the proposed Investment Advisory Agreement and Sub-Advisory Agreement.
In reaching their decision, the Board requested and obtained from TAM and Logan Circle such information as they deemed reasonably necessary to evaluate the proposed agreements. In considering the proposed approval of Investment Advisory Agreement and Sub-Advisory Agreement, the Board evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. The Board based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions and each member of the Board may have attributed different weights to the various factors.
The nature, extent and quality of the advisory services to be provided. The Board considered the nature, extent and quality of the services expected to be provided by TAM and Logan Circle. The Board considered the services to be provided by TAM for the portion of the management fee it will retain after payment of Logan Circle’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM will provide in the form of selection and oversight of Logan Circle. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and Logan Circle, TAM’s management oversight process and the professional qualifications of Logan Circle’s portfolio management team. The Board determined that TAM and Logan Circle can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Fund was not yet in existence and therefore had no historical performance for the Board to review. However, the Board was provided with return, risk and risk-adjusted composite performance data for the Logan Circle Emerging Markets Debt strategy against the eVestment All Emerging Markets Fixed Income peer group and the Fund’s proposed benchmark. The Board noted that the annualized performance of the Logan Circle emerging markets debt strategy was higher than both its peer group and benchmark over the 1- and 3-year periods ended March 2011. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and Logan Circle, the Board concluded that TAM and Logan Circle are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies.
The cost of advisory services provided and the level of profitability. The Fund was not yet in existence and therefore no revenue, cost or profitability data was available for the Board to review. However, the Board reviewed projected profitability information regarding TAM’s costs of procuring portfolio management services as well as the costs of providing administration, transfer agency, fund accounting and other services to the Fund by TAM and its affiliates. The Board noted that the proposed advisory fee for the Fund was in line with the Lipper category median. The Board also noted the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and Logan Circle, as applicable, and determined that the management and sub-advisory fees to be received by TAM and Logan Circle under the agreements are consistent with TAM’s fiduciary duty under applicable law.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the new Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board took note of TAM’s and Logan Circle’s pricing schedules and the proposed advisory and sub-advisory fee breakpoints, as detailed in the materials provided to the Board, and noted each fee breakpoint with respect to the various asset levels to be achieved by the Fund. The Board concluded that the proposed fees and breakpoints may benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows for the Fund. The Board also noted that, in the future, they would have the opportunity to periodically reexamine whether the Fund has achieved economies of scale and the appropriateness of management fees payable to TAM and fees payable by TAM to Logan Circle.
Benefits to TAM, its affiliates, or Logan Circle from their relationship with the Fund. The Board noted that TAM believes that other benefits anticipated to be derived by TAM, its affiliates, and Logan Circle from their relationships with the Fund are expected to be consistent with industry practice. The Board noted that TAM would not realize soft dollar benefits from its relationship with the Fund. The Board also considered the potential for visibility in the marketplace as a result of Logan Circle’s relationship with the Fund.
Other considerations. The Board considered the investment objective of the Fund and its investment strategy and noted that TAM believes that the Fund would enhance the investment options for the asset allocation funds, and would also provide an additional retail investment offering. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Board favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of Logan Circle. The Board also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, as reflected by TAM’s expense limitation arrangement with the Fund that may result in TAM waiving fees for the benefit of shareholders.
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Transamerica Funds | | Page 146 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY CAPITAL GROWTH
(FORMERLY TRANSAMERICA FOCUS)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Morgan Stanley Capital Growth (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was above the median for its peer universe for the past 1-, 3-, 5- and 10-year periods. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was above the median for its peer group and in line with the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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Transamerica Funds | | Page 147 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY GROWTH OPPORTUNITIES
(FORMERLY TRANSAMERICA GROWTH OPPORTUNITIES)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Morgan Stanley Growth Opportunities (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was above the median for its peer universe for the past 1-, 3-, 5- and 10-year periods. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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Transamerica Funds | | Page 148 | | Annual Report 2011 |
TRANSAMERICA MULTI-MANAGED BALANCED
(FORMERLY TRANSAMERICA BALANCED)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Multi-Managed Balanced (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fees to the Fund’s sub-advisers, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-advisers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was above the median for its peer universe for the past 1-, 3-, 5- and 10-year periods. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fees to the Fund’s sub-advisers. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-advisers. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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Transamerica Funds | | Page 149 | | Annual Report 2011 |
TRANSAMERICA SYSTEMATIC SMALL/MID CAP VALUE
(FORMERLY TRANSAMERICA SMALL/MID CAP VALUE)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Systematic Small/Mid Cap Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1-, 3- and 5-year periods. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates, from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
| | | | | |
|
Transamerica Funds | | Page 150 | | Annual Report 2011 |
TRANSAMERICA WMC DIVERSIFIED EQUITY
(FORMERLY TRANSAMERICA DIVERSIFIED EQUITY)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica WMC Diversified Equity (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for the one-year period ended December 31, 2010. The Board noted that the performance of Class A of the Fund was in line with the median for its peer universe for the past 1-year period. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was below the median for its peer group and in line with the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
| | | | | |
|
Transamerica Funds | | Page 151 | | Annual Report 2011 |
TRANSAMERICA WMC DIVERSIFIED GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica WMC Diversified Growth (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Wellington Management Company, LLP, to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser, as well as information about standard fees and performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class A of the Fund was above the median for its peer universe for the past 1- and 10-year periods and below the median for the past 3- and 5-year periods. The Board also noted that the Fund’s performance included the management of the Fund’s previous sub-adviser and the Board agreed to continue to monitor the Fund’s performance going forward. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class A of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
| | | | | |
|
Transamerica Funds | | Page 152 | | Annual Report 2011 |
SUPPLEMENTAL INFORMATION (unaudited)
TAX INFORMATION
For dividends paid during the year ended October 31, 2011, the Funds designated the following as qualified dividend income:
| | | | | |
| | | Qualified Dividend | |
| Fund | | Income (000’s) | |
| Transamerica AEGON Flexible Income | | $ | 196 | |
| Transamerica AEGON High Yield Bond | | | 566 | |
| Transamerica Morgan Stanley Capital Growth | | | 809 | |
| Transamerica Morgan Stanley Growth Opportunities | | | 2,040 | |
| Transamerica Multi-Managed Balanced | | | 3,367 | |
| Transamerica Systematic Small/Mid Cap Value | | | 4,027 | |
| Transamerica TS&W International Equity | | | 3,322 | |
| Transamerica WMC Diversified Equity | | | 7,380 | |
| Transamerica WMC Diversified Growth | | | 11,685 | |
| Transamerica WMC Quality Value | | | 26,435 | |
For corporate shareholders, investment income (dividend income plus short-term gains, if any) qualifies for the dividends received deductions as follows:
| | | | | |
| | | Dividend Received | |
| Fund | | Deduction Percentage | |
| Transamerica AEGON Flexible Income | | | 1.18 | % |
| Transamerica AEGON High Yield Bond | | | 0.99 | |
| Transamerica Multi-Managed Balanced | | | 48.00 | |
| Transamerica TS&W International Equity | | | 0.73 | |
| Transamerica WMC Diversified Equity | | | 100.00 | |
| Transamerica WMC Diversified Growth | | | 100.00 | |
The information and distributions reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2011. Complete information will be computed and reported in conjunction with your 2011 Form 1099-DIV.
| | | | | |
|
Transamerica Funds | | Page 153 | | Annual Report 2011 |
TRANSAMERICA FUNDS
Management of the Funds
(unaudited)
The Board Members and executive officers of the Trust are listed below. The Board governs each fund and is responsible for protecting the interests of the shareholders. The Board Members are experienced executives who meet periodically throughout the year to oversee the business affairs of each fund and the operation of the Trust by its officers. The Board also reviews the management of each fund’s assets by the investment adviser and its respective sub-adviser. The funds are among the funds advised and sponsored by TAM (collectively, “Transamerica Asset Management Group”). Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Income Shares, Inc. (“TIS”), Transamerica Partners Funds Group (“TPFG”), Transamerica Partners Funds Group II (“TPFG II”), Transamerica Partners Portfolios (“TPP”), and Transamerica Asset Allocation Variable Funds (“TAAVF”) and consists of 164 funds as of the date of this report.
The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their year of birth, their positions with the Trust, and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | With Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| INTERESTED BOARD MEMBER** | | | | | | | | |
| |
| John K. Carter (1961) | | Chairman, Board Member, President, and Chief Executive Officer | | Since 1999 | | Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Chief Compliance Officer, General Counsel and Secretary (1999 — 2006), Transamerica Funds and TST; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (2002 — 2006), General Counsel, Secretary and Chief Compliance Officer (2002 — 2006), TIS; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer (2006 — present), Director (2002 — present), Senior Vice President (1999 — 2006), General Counsel and Secretary (2000 — 2006), Chief Compliance Officer (2004 — 2006), TAM; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2002 — present), General Counsel and Secretary (2001 — 2006), Transamerica Fund Services, Inc. (“TFS”); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, AFSG Securities Corporation (2001 — present); | | | | | | |
| | | | |
| |
| Transamerica Funds | | Page 154 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | With Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| | | | | | | Chairman and Board Member (2008 — 2010), President (2007 — 2010), Chief Executive Officer (2006 — 2010), Vice President, Secretary and Chief Compliance Officer (2003 — 2006), Transamerica Investors, Inc. (“TII”); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 — 2004); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, (2008 — present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 — 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 — 2005). | | | | | | |
| | | | | | | | | | | | | |
| INDEPENDENT BOARD MEMBERS*** | | | | | | | | |
| | | | | | | | | | | | | |
Sandra N. Bane
(1952) | | Board Member | | Since 2008 | | Retired (1999 — present); | | | 164 | | | Big 5 Sporting Goods (2002 — present); AGL Resources, Inc. (energy services holding company) (2008 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2003 — 2010); and Partner, KPMG (1975 — 1999). | | | | | | |
| | | | | | | | | | | | | |
Leo J. Hill
(1956) | | Lead Independent
Board Member | | Since 2002 | | Principal, Advisor Network Solutions, LLC (business consulting) (2006 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TST (2001 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds and TIS (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, L. J. Hill & Company (a holding company for privately-held assets) (1999 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Market President, Nations Bank of Sun Coast Florida (1998 — 1999); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer, Barnett Banks of Treasure Coast Florida (1994 — 1998); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Executive Vice President and Senior Credit Officer, Barnett Banks of Jacksonville, Florida (1991 — 1994); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Senior Vice President and Senior Loan Administration Officer, Wachovia Bank of Georgia (1976 — 1991). | | | | | | |
| | | | |
| |
| Transamerica Funds | | Page 155 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | With Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
David W. Jennings
(1946) | | Board Member | | Since 2009 | | Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2009 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Managing Director, Hilton Capital (2010 — 2011); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Principal, Maxam Capital Management, LLC (2006 — 2008); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Principal, Cobble Creek Management LP (2004 — 2006). | | | | | | |
| | | | | | | | | | | | | |
Russell A. Kimball, Jr.
(1944) | | Board Member | | 1986 — 1990 and Since 2002 | | General Manager, Sheraton Sand Key Resort (1975 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TST (1986 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, (1986 — 1990), (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TIS (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010). | | | | | | |
| | | | | | | | | | | | | |
| Eugene M. Mannella (1954) | | Board Member | | Since 2007 | | Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Self-employed consultant (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Managing Member and Chief Compliance Officer, HedgeServ Investment Services, LLC (limited purpose broker-dealer) (April 2011 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 — 2008); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, International Fund Services (alternative asset administration) (1993 — 2005). | | | | | | |
| | | | |
| |
| Transamerica Funds | | Page 156 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | With Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
Norman R.
Nielsen,
Ph.D. (1939) | | Board Member | | Since 2006 | | Retired (2005 — present); | | | 164 | | | Buena Vista University Board of Trustees (2004 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, lowa Student Loan Service Corporation (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, League for Innovation in the Community Colleges (1985 — 2005); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, lowa Health Systems (1994 — 2003); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, U.S. Bank (1985 — 2006); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, Kirkwood Community College (1985 — 2005). | | | | | | |
| | | | | | | | | | | | | |
Joyce G. Norden
(1939) | | Board Member | | Since 2007 | | Retired (2004 — present); | | | 164 | | | Board of Governors, Reconstruction — ist Rabbinical College (2007 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 — 2004). | | | | | | |
| | | | | | | | | | | | | |
Patricia L. Sawyer
(1950) | | Board Member | | Since 2007 | | Retired (2007 — present); | | | 164 | | | Honorary Trustee,
Bryant University
(1996 —
present) |
| | | | | | | | | | | | | |
| | | | | | | President/Founder, Smith & Sawyer LLC (management consulting) (1989 — 2007); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Trustee, Chair of Finance Committee and Chair of Nominating Committee (1987 — 1996), Bryant University; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, American Express (1987 — 1989); | | | | | | |
| | | | |
| |
| Transamerica Funds | | Page 157 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | With Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| | | | | | | Vice President, The Equitable (1986 — 1987); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Strategy Consultant, Booz, Allen & Hamilton (1982 — 1986). | | | | | | |
| | | | | | | | | | | | | |
| John W. Waechter (1952) | | Board Member | | Since 2005 | | Attorney, Englander and Fischer, LLP (2008 — present); | | | 164 | | | Operation PAR, Inc. (2008 — present); West Central Florida Council — Boy Scouts of America (2008 — present) |
| | | | | | | | | | | | | |
| | | | | | | Retired (2004 — 2008); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TST and TIS (2004 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds (2005 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Employee, RBC Dain Rauscher (securities dealer) (2004); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Executive Vice President, Chief Financial Officer and Chief Compliance Officer, William R. Hough & Co. (securities dealer) (1979 — 2004); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Treasurer, The Hough Group of Funds (1993 — 2004). | | | | | | |
| | |
| * | | Each Board Member shall hold office until: 1) his or her successor is elected and qualified or 2) he or she resigns, retires or his or her term as a Board Member is terminated in accordance with the Trust’s Declaration of Trust. |
| |
| ** | | May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Trust because of his employment with TAM or an affiliate of TAM. |
| |
| *** | | Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Trust. |
| | | | |
| |
| Transamerica Funds | | Page 158 | | Annual Report 2011 |
OFFICERS
The mailing address of each officer is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The following table shows information about the officers, including their year of birth, their positions held with the Trust and their principal occupations during the past five years (their titles may have varied during that period). Each officer will hold office until his or her successor has been duly elected or appointed or until his or her earlier death, resignation or removal.
| | | | | | | |
| | | | | Term of | | |
| | | | | Office and | | |
| | | | | Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
John K. Carter
(1961) | | Chairman, Board Member, President, and Chief Executive Officer | | Since 1999 | | See the table above. |
| | | | | | | |
Dennis P. Gallagher
(1970) | | Vice President,
General Counsel and Secretary | | Since 2006 | | Vice President, General Counsel and Secretary, Transamerica Funds, TST and TIS (2006 — present); |
| | | | | | | |
| | | | | | | Vice President, General Counsel and Secretary,
TPP, TPFG, TPFG II and TAAVF (2007 — present); |
| | | | | | | |
| | | | | | | Vice President, General Counsel and Secretary, TII, (2006 — 2010); |
| | | | | | | |
| | | | | | | Director, Senior Vice President, General Counsel, Operations and Secretary, TAM (2006 — present); |
| | | | | | | |
| | | | | | | Director, Senior Vice President, General Counsel, Chief Administrative Officer and Secretary, TFS
(2006 — present); |
| | | | | | | |
| | | | | | | Assistant Vice President, TCI (2007 — present); |
| | | | | | | |
| | | | | | | Director, Deutsche Asset Management (1998 — 2006); and |
| | | | | | | |
| | | | | | | Corporate Associate, Ropes & Gray LLP (1995 — 1998). |
| | | | | | | |
Christopher A. Staples
(1970) | | Vice President and
Chief Investment Officer | | Since 2005 | | Vice President and Chief Investment Officer (2007 — present), Senior Vice President — Investment Management (2006 — 2007), Vice President — Investment Management (2005 — 2006), Transamerica Funds, TST and TIS; |
| | | | | | | |
| | | | | | | Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); |
| | | | | | | |
| | | | | | | Vice President and Chief Investment Officer (2007 — 2010); Vice President — Investment Administration (2005 — 2007), TII; |
| | | | | | | |
| | | | | | | Director (2005 — present), Senior Vice President — Investment Management (2006 — present) and Chief Investment Officer (2007 — present), TAM; |
| | | | | | | |
| | | | | | | Director, TFS (2005 — present); and |
| | | | | | | |
| | | | | | | Assistant Vice President, Raymond James &
Associates (1999 — 2004). |
| | | | |
| |
| Transamerica Funds | | Page 159 | | Annual Report 2011 |
| | | | | | | |
| | | | | Term of | | |
| | | | | Office and | | |
| | | | | Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
Elizabeth Strouse
(1974) | | Vice President,
Treasurer and Principal Financial Officer | | Since 2010 | | Vice President, Treasurer and Principal Financial Officer (December 2011 — present), Assistant Treasurer (2010 — December 2011), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF; |
| | | | | | | |
| | | | | | | Director, Fund Financial Services (2009 — 2011), TFS; |
| | | | | | | |
| | | | | | | Director, Fund Administration, TIAA-CREF (2007 - 2009); and |
| | | | | | | |
| | | | | | | Manager (2006 — 2007) and Senior (2003 — 2006) Accounting and Assurance, PricewaterhouseCoopers, LLC. |
| | | | | | | |
Robert S. Lamont, Jr.
(1973) | | Vice President, Chief Compliance Officer and
Conflicts of Interest Officer | | Since 2010 | | Vice President, Chief Compliance Officer and Conflicts of Interest Officer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2010 -present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, TAM and TFS (2007 — present); |
| | | | | | | |
| | | | | | | Senior Counsel, United States Securities and Exchange Commission (2004 — 2007); and |
| | | | | | | |
| | | | | | | Associate, Dechert, LLP (1999 — 2004). |
| | | | | | | |
Bradley O. Ackerman
(1966) | | Anti-Money
Laundering
Officer | | Since 2007 | | Anti-Money Laundering Officer, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Anti-Money Laundering Officer, Transamerica Funds (2007 — present); |
| | | | | | | |
| | | | | | | Senior Compliance Officer, TAM (2007 — present); and |
| | | | | | | |
| | | | | | | Director, Institutional Services, Rydex Investments (2002 — 2007). |
| | | | | | | |
Sarah L. Bertrand
(1967) | | Assistant Secretary | | Since 2009 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary, TII (2009 — 2010); |
| | | | | | | |
| | | | | | | Assistant Vice President and Director, Legal Administration, TAM and TFS (2007 — present);
Assistant Secretary and Chief Compliance Officer, 40/86 Series Trust and 40/86 Strategic Income Fund (2000 — 2007); and |
| | | | | | | |
| | | | | | | Second Vice President and Assistant Secretary, Legal and Compliance, 40/86 Capital Management, Inc. (1994 — 2007). |
| | | | | | | |
Timothy J. Bresnahan
(1968) | | Assistant Secretary | | Since 2009 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary, TII (2009 — 2010); |
| | | | | | | |
| | | | | | | Counsel, TAM (2008 — present); |
| | | | |
| |
| Transamerica Funds | | Page 160 | | Annual Report 2011 |
| | | | | | | |
| | | | | Term of | | |
| | | | | Office and | | |
| | | | | Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
| | | | | | | Counsel (contract), Massachusetts Financial Services, Inc. (2007); |
| | | | | | | |
| | | | | | | Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 — 2007); and |
| | | | | | | |
| | | | | | | Associate, Greenberg Traurig, P.A. (2004 — 2005). |
| | | | | | | |
| Margaret A. Cullem-Fiore (1957) | | Assistant Secretary | | Since 2010 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2010 — present); |
| | | | | | | |
| | | | | | | Assistant Vice President, TCI (2009 — present);
Vice President and Senior Counsel, TAM and TFS (2006 — present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, Transamerica Financial Advisors, Inc. (2004 — 2007); and |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, Western Reserve Life Assurance Co. of Ohio (2006). |
| | |
| * | | Elected and serves at the pleasure of the Board of the Trust. |
If an officer has held offices for different funds for different periods of time, the earliest applicable date is shown. No officer of the Trust, except for the Chief Compliance Officer, receives any compensation from the Trust.
Additional information about the Funds’ Board Members can be found in the Statement of Additional Information, available, without charge, upon request, by calling toll free 1-888-233-4339 or on the Trust’s website at www.transamericainvestments.com.
| | | | |
| |
| Transamerica Funds | | Page 161 | | Annual Report 2011 |
PROXY VOTING POLICIES AND PROCEDURES AND QUARTERLY PORTFOLIO HOLDINGS
(unaudited)
A description of the Transamerica Funds’ proxy voting policies and procedures is available in the Statement of Additional Information of the Portfolios, available without charge upon request by calling 1 -888-233-4339 (toll free) or on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
In addition, the Funds are required to file Form N-PX, with their complete proxy voting records for the 12 months ended June 30th, no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-888-233-4339; and (2) on the SEC’s website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q, which is available on the SEC’s website at http://www.sec.gov. The Funds’ Form N-Q 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 1-800-SEC-0330.
You may also visit the Trust’s website at www.transamericainvestments.com for this and other information about the Funds and the Trust.
Important Notice Regarding Delivery of Shareholder Documents
Every year we send shareholders informative materials such as the Transamerica Funds Annual Report, the Transamerica Funds Prospectus, and other required documents that keep you informed regarding your Funds. Transamerica Funds will only send one piece per mailing address, a method that saves your Funds money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Customer Service Representative toll free at 1 -888-233-4339, 8 a.m. to 7 p.m. Eastern Time, Monday-Friday. Your request will take effect within 30 days.
| | | | |
| |
| Transamerica Funds | | Page 162 | | Annual Report 2011 |
NOTICE OF PRIVACY POLICY
(unaudited)
Protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.
What Information We Collect and From Whom We Collect It
We may collect nonpublic personal information about you from the following sources:
| • | | Information we receive from you on applications or other forms, such as your name, address, and account number; |
| |
| • | | Information about your transactions with us, our affiliates, or others, such as your account balance and purchase/redemption history; and |
| |
| • | | Information we receive from non-affiliated third parties, including consumer reporting agencies. |
What Information We Disclose and To Whom We Disclose It
We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.
Our Security Procedures
We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.
If you have any questions about our Privacy Policy, please call 1-888-233-4339 on any business day between 8 a.m. and 7 p.m. Eastern Time.
Note: This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of our funds in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.
| | | | |
| |
| Transamerica Funds | | Page 163 | | Annual Report 2011 |
P.O. Box 9012
Clearwater, FL 33758-9012
Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.
Class I2 Funds
Annual Report
October 31, 2011
www.transamericainvestments.com
Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.
Dear Fellow Shareholder,
On behalf of Transamerica Funds, we would like to thank you for your continued support and confidence in our products as we look forward to continuing to serve you and your financial adviser in the future. We value the trust you have placed in us.
This annual report is provided to you with the intent of presenting a comprehensive review of the investments of each of your funds. The Securities and Exchange Commission requires that annual and semi-annual reports be sent to all shareholders, and we believe this report to be an important part of the investment process. In addition to providing a comprehensive review, this report also provides a discussion of accounting policies as well as matters presented to shareholders that may have required their vote.
We believe it is important to understand market developments that took place over the last year in order to provide a context when reading this report. Last fall, U.S. economic growth was being restrained by persistent high unemployment and high government debt levels. In response, the Federal Reserve began implementing a second round of monetary stimulus known as quantitative easing (“QE2”). This effort began pumping what would eventually total $600 billion into the U.S. economy. As a result, the U.S. economy and corporate earnings began picking up steam throughout the winter. Corporate equity and bond markets followed suit. At the same time, commodities prices and inflation began surging. In order to fight the inflation the Federal Reserve stimulus was creating, most central banks across the globe tightened monetary policy. In the spring, this global tightening collided with a global supply chain disruption caused by the Japanese tsunami. As a result, the global economy began slowing in late spring. As summer arrived, concerns about U.S. and European debt levels began resurfacing. Developments came to a head in late summer as the credit rating of the U.S. was lowered and Europe faced the possibility of a sovereign debt default. As a result, the global equity and corporate bond markets fell sharply while U.S. Treasuries rallied as investors sought safety. Fortunately, commodity prices also fell, putting more disposable income in consumer pockets. As summer transitioned to fall, the U.S. economy re-strengthened. As a result, the U.S. corporate equity and bond markets responded by recovering much of the summer’s losses. For the twelve months ending October 31, 2011, the Dow Jones Industrial Average returned 10.39%, the Standard & Poor’s 500® Index returned 8.09%, and the Barclays Capital U.S. Aggregate Bond Index returned 5.00%. However, the rest of the global economy continued to experience slowing growth as previous tightening remained mostly in place and government austerity programs continued to be implemented. So, despite European politicians’ efforts to address default fears, European and Asian markets failed to recover the summer’s losses and as a result the MSCI World ex-US returned (3.25)% for the year ending October 31, 2011. Please keep in mind it is important to maintain a diversified portfolio as investment returns have historically been difficult to predict.
In addition to your active involvement in the investment process, we firmly believe that a financial adviser is a key resource to help you build a complete picture of your current and future financial needs. Financial advisers are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial adviser, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.
Please contact your financial adviser if you have any questions about the contents of this report, and thanks again for the confidence you have placed in us.
Sincerely,
| | | |
|
| John K. Carter | | Christopher A. Staples |
| Chairman of the Board, | | Vice President & Chief Investment Officer |
| President & Chief Executive Officer | | Transamerica Funds |
| Transamerica Funds | | |
The views expressed in this report reflect those of the portfolio managers only and may not necessarily represent the views of Transamerica Funds. These views are subject to change based upon market conditions. These views should not be relied upon as investment advice and are not indicative of trading intent on behalf of Transamerica Funds.
Transamerica BlackRock Large Cap Value
(unaudited)
MARKET ENVIRONMENT
Investors have faced one of the most volatile periods in recent months. Financial markets across the world weathered a storm of whipsaw movements fueled by panic selling and short-lived rebounds of hope as the European debt crisis and concerns about slowing global economic growth dominated headlines and sentiment.
One year ago, the global economy appeared to be solidly in recovery mode and investors were optimistic as the US Federal Reserve Board (“Fed”) launched its second round of quantitative easing. Stock markets rallied despite the ongoing sovereign debt crisis in Europe and inflationary pressures looming over emerging markets.
Early 2011 saw spikes of volatility as political turmoil swept across the Middle East/North Africa region and prices of oil and other commodities soared. Natural disasters in Japan disrupted industrial supply chains and concerns mounted regarding US debt and deficit issues. Nevertheless, equities generally performed well early in the year as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data.
However, the environment changed dramatically in the middle of the second quarter. Markets reversed sharply in May when political unrest in Greece pushed the nation closer to defaulting on its debt, rekindling fears about the broader sovereign debt crisis. Concurrently, economic data signaled that the recovery had slowed in the United States and other developed nations. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5, Standard & Poor’s downgraded the US government’s credit rating, sending financial markets into turmoil. Extraordinary levels of volatility persisted in the months that followed as investors witnessed financial problems intensify in Italy and Spain and debt worries spread to the core European nations, France and Germany. Toward the end of the third quarter, economic data out of the United States and Europe grew increasingly bleak and emerging economies, including China, began to show signs of slowing growth. However, October brought enough positive economic data to assuage fears of a double-dip recession in the United States and corporate earnings continued to be strong. Additionally, European policymakers demonstrated an increased willingness to unite in their struggle to resolve the region’s debt crisis. These encouraging developments brought many investors back from the sidelines and risk assets rallied through the month, albeit with large daily swings as investor reactions to news from Europe vacillated between faith and skepticism.
PERFORMANCE
For the year ended October 31, 2011, Transamerica BlackRock Large Cap Value Class I2 returned 7.92%. By comparison, its benchmark, the Russell 1000® Value Index, returned 6.16%.
STRATEGY REVIEW
Overall, both stock selection and allocation decision contributed positively to performance. The health care sector accounted for the largest contribution to portfolio results. Strength was notable in the providers & services industry, where a combination of disciplined pricing and muted medical cost trends resulted in rising earnings expectations for managed care organizations, a segment in which the portfolio was overweight. The greatest individual contributor in health care was Humana, Inc.. More broadly, a substantial overweight position aided results as the market flocked to the safety of the defensive sector.
An underweight and stock selection in financials also contributed to results as macroeconomic and regulatory uncertainties continued to plague the sector. In general, the ongoing European sovereign debt crisis, coupled with a still-evolving regulatory paradigm, creates numerous concerns for us and, thus, we remain broadly on the sidelines. That said, we have found small pockets of opportunity within financials. Specifically, we continue to overweight consumer finance holdings, which we believe have much less business risk given their relatively short credit cycles and somewhat more transparent balance sheets. At the stock level, an underweight in Bank of America Corp. (exited by the end of the reporting period) and lack of exposure to Goldman Sachs Group Inc. helped.
The largest detractors for the portfolio at the sector level included utilities and telecommunication services (“telecom”). Within utilities, the portfolio’s underweight in the defensive sector (specifically, regulated utilities) hurt amid the highly volatile market. Stock selection also hindered results. Overall, we maintain our preference for non-regulated utilities. We continue to underweight the traditional regulated utilities as valuations are not compelling and the prospect of higher interest rates and concerns about state regulators allowing lower returns on equity going forward warrant caution. In the telecom sector, stock selection was the primary detractor and this related specifically to the portfolio’s preference for wireless holdings, which underperformed over the period on disappointing results that included a surprising uptick in the competitive environment and customer churn rates. Additionally, our weighting principally comprises leveraged, turnaround stories in the wireless space. Core holdings were rewarded over the last several quarters as they demonstrated progress in their turnarounds; but the stocks were hit hard on weak third quarter performance. Nevertheless, we maintain our preference for the wireless segment as we expect the ongoing trend of smartphone penetration to continue to drive better pricing power and “stickier” customer bases (i.e., less churn), and thereby result in improved margin performance and earnings power for names in the industry.
Robert C. Doll, Jr., CFA
Daniel Hanson, CFA
Peter Stournaras, CFA
Co-Portfolio Managers
BlackRock Investment Management, LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 1 | | Annual Report 2011 |
Transamerica BlackRock Large Cap Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | 7.92% | | (3.23)% | | (0.21)% | | 11/15/2005 |
Russell 1000® Value* | | 6.16% | | (2.05)% | | 1.29% | | 11/15/2005 |
| |
NOTES
| | |
| * | | The Russell 1000® Value Index (“Russell 1000® Value”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Stock markets, especially foreign markets, are volatile and can decline significantly. Value stocks can perform differently from other types of stocks and can continue to be undervalued by the market for long periods of time. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 2 | | Annual Report 2011 |
Transamerica Clarion Global Real Estate Securities
(unaudited)
MARKET ENVIRONMENT
The past twelve months have been a period of modestly positive total returns for global real estate stocks as the continued improvement in listed real estate company fundamentals have been tempered by uneven macro-economic news. Investor concerns regarding the uncertainty surrounding the political processes in Europe and the U.S. to address high levels of government debt have weighed on market sentiment as have worries on whether the Chinese government can engineer a soft landing. The mixed nature of macro-economic news continues to remind investors that patience will be required in this recovery. During the period North American property stocks posted the best performance, up 10%, and was more than strong enough to offset negative total returns posted by the European and Asia-Pacific regions, which were down 4.8% and 4.1%, respectively.
During the period, gross fund performance bested its benchmark as the result of both country allocation and stock selection decisions. The majority of the relative outperformance was due to allocation decisions, primarily due to an underweight to the underperforming European region as well as favorable decisions in the Asia-Pacific region, most notably an overweight to the outperforming Australian property market and an underweight to the underperforming Hong Kong property market. Allocation decisions in the Americas region were a modest drag, as the portfolio was slightly underweight to this outperforming market. Stock selection contributed positively to relative performance and was driven by strong stock selection in the U.S. as well as in Hong Kong, which more than offset relative underperformance in Singapore and Japan. U.S. positioning benefited from strong performance of holdings in the mall, office and apartment sectors while positioning in Hong Kong benefited from an underweight exposure to the underperforming property developers, especially those with exposure to mainland China.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Clarion Global Real Estate Securities Class I2 returned net 0.51%. By comparison, its benchmark, the S&P Developed Property Index (“S&P Developed Property”), returned 1.61%.
STRATEGY REVIEW
Transamerica Clarion Global Real Estate Securities offers a global strategy for real estate securities investors in the U.S. The fund generally owns between 80 -110 real estate stocks with the goal of outperforming the S&P Developed Property. The fund seeks to invest in attractively priced stocks that own property in markets with favorable underlying real estate fundamentals. The global universe of public real estate companies is approximately three times the size of the U.S. public company universe, which offers additional choices and diversification opportunities to the manager.
Given the economic and policy headwinds stated above, we increasingly believe that a global real estate securities portfolio should be positioned conservatively. Property company share prices tend to discount future expectations quickly so caution is warranted in the current uncertain market. This means carefully underwriting risk and focusing on current cash flow versus potential future income. As such, we are focusing on owning companies which provide the majority if not all of their income from the ownership of property rather than merchant building or development activities. This also means focusing on companies with strong balance sheets, experienced management teams, and resilient property types and geographies. We prefer companies in stable, mature markets versus newer or less stable markets, which might mean, as an example, London or New York over peripheral Central and Eastern Europe, or Tokyo and Sydney over emerging Asia. We prefer longer-lease property types over shorter-lease property types, and therefore would prefer a regional shopping mall with 5-10 year lease terms versus a hotel company with a 1-2 night average length of stay. This also means focusing on companies that can provide a high proportion of total return prospects via the dividend, since we believe dividend yield to be the anchor of total return prospects looking forward. Near-term uncertainty dictates a conservative stance in portfolio construction
The rationale for a global listed property strategy remains very much intact including diversification via low long-term correlation to broad equities and bonds, attractive current yield, reasonable valuations and the continued, gradual spread of the Real Estate Investment Trust (“REIT”) structure globally. Real estate fundamentals will, as always, reflect improving economic conditions on a lagged basis as a result of the underlying lease structures. We continue to believe total return looking forward to be anchored by a dividend yield in the 4% range plus growth in cash flow per share, which we believe will be in the 5% range in 2012 as economic recovery takes hold. While there have been some setbacks in the road to economic recovery of late, and macro-economic risks that remain above average as the result of political processes, we believe that they are not sufficient to derail the positive case for real estate fundamentals over the long run.
T. Ritson Ferguson, CFA
Joseph P. Smith, CFA
Steven D. Burton, CFA
Co-Portfolio Managers
CBRE Clarion Securities LLC
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| Transamerica Funds | | Page 3 | | Annual Report 2011 |
Transamerica Clarion Global Real Estate Securities
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | 0.51% | | (2.10)% | | 4.11% | | 11/15/2005 |
| S&P Developed Property* | | 1.61% | | (2.82)% | | 3.14% | | 11/15/2005 |
| |
NOTES
| | |
| * | | The S&P Developed Property Index (“S&P Developed Property”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in real estate securities and real estate investment trusts (“REITs”) involve special risks, such as the possible decline in value of real estate, extended vacancies, and uninsured damages from natural disasters. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 4 | | Annual Report 2011 |
Transamerica First Quadrant Global Macro
(unaudited)
MARKET ENVIRONMENT
Since the financial crisis of 2008, the markets have been dominated by macro-economic news. The influence of company specific news on individual stocks or bonds has been less dramatic than trends in the overall economy, both global and local. This reflects the high level of uncertainty and volatility in the markets. During periods of high uncertainty, there is less faith in long-term information like valuations that are the primary long-term measure of value for individual securities. Instead, investors try to project broad economic outcomes on all securities. This environment continues until the economy becomes more stable and the long-term becomes clearer. Towards the end of 2010, the markets were clearly moving towards this lower uncertainty environment. Economic growth was becoming more firmly established. Unemployment was falling. The credit crisis in Europe appeared to be resolving.
Then, in January the global financial markets experienced the first in a series of “exogenous” shocks that defined the beginning of 2011 (Middle East and earthquakes). While the economic fundamentals continued improving, the future economic impact of these shocks was still not clear and expected to plague the markets.
The overarching themes of the latter part of fiscal year 2011 was political uncertainty and increased volatility. Eurozone leaders struggled without success to resolve the European sovereign debt crisis and the US struggled with debt-ceilings throughout the summer. These political failures developed against a backdrop of stagnant economic growth. Global economies stumbled under the weight of soaring oil prices in the spring and the fiscal drag of government stimulus programs winding down.
The fiscal year ended with a strong increase in risk sentiment and equities rallied. The rally was fueled by optimism that European policymakers would finally take decisive action to resolve their sovereign debt crisis. However, many issues are still unclear.
PERFORMANCE
For the year ended October 31, 2011, Transamerica First Quadrant Global Macro Class I2 returned (4.90)%. By comparison, its benchmark, the Citigroup 1-Month Treasury Bill Index, returned 0.07%.
STRATEGY REVIEW
The fund underperformed the benchmark for the fiscal year. The global asset class strategy was profitable during the first two thirds of the fiscal year as the global equity tilt was beneficial until the August timeframe when the portfolio moved to a global bond tilt which struggled in the early part of October before transitioning back towards a constrained global equity tilt. This strategy ended the fiscal year with a mild loss.
The stock country selection strategy ended the year basically flat with gains from positions in Japanese (long at the beginning of period then short by end) and long US equities mostly offsetting losses from long Italian and Spanish equity positions.
The volatility management sleeve had muted performance over the year, adding during the first half of the year only to give back those gains during the volatile summer months.
The bond country selection strategy struggled in the early part of 2011 and during the summer of 2011. The United Kingdom (“UK”) gilt and German BUND positions hurt the portfolio during the early part of the year; however, by the end of the period the long bund position added value. Japanese bonds reacted only tepidly to the global crises over the summer, benefiting to a lesser extent from safe haven flows toward fixed income, and thus underperformed the other bonds. The portfolio’s bullish positioning in Japanese bonds was chiefly responsible for the third quarter’s poor bond country selection performance.
The currency selection strategy began the period down, rebounded nicely in the first quarter of 2011, and had a significant downdraft during May to August only to regain most of the downdraft by the end of the fiscal year. The short Australian dollar and long UK pound were the largest detractors over the entire period. The strong rebound was a result of positions in Australia, Switzerland, the US, and the UK. The short position in the Australian Dollar benefitted from the sharp sell off in risky assets during July and the first part of August, reversed briefly, and then gained again in September as concerns about economic growth spread globally, and signs that the Reserve Bank of Australia would cut rates if needed. The Swiss Franc short position had the largest impact on the path of performance during the latter period, first significantly detracting and then sharply rebounding to end with a strongly positive contribution for the 3rd quarter. The performance of the dollar followed suit, recovering in August and September as money market funding pressures rose to levels not seen since 2008.
Kenneth J. Ferguson
Dori Levanoni
Chuck Fannin, CFA
Co-Portfolio Managers
First Quadrant, L.P.
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| | | | | |
| Transamerica Funds | | Page 5 | | Annual Report 2011 |
Transamerica First Quadrant Global Macro
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | |
| | | | | 10 Years or | | |
| | | 1 Year | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | (4.90)% | | (2.69)% | | 01/03/2007 |
| Citigroup 1-Month Treasury Bill* | | 0.07% | | 1.26% | | 01/03/2007 |
| |
NOTES
| | |
| * | | The Citigroup 1-Month Treasury Bill Index (“Citigroup 1-Month Treasury Bill”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Global, foreign, and emerging market investing involves special considerations, including risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 6 | | Annual Report 2011 |
Transamerica Hansberger International Value
(unaudited)
MARKET ENVIRONMENT
The fiscal year ended October 31, 2011, was a very difficult period for international equity markets. The period had started brightly as a combination of abundant liquidity, investor optimism on the outlook for global economic growth, and the implementation of quantitative easing (“QE2”) by central banks created a positive environment for equities worldwide. However, during the period, investors became increasingly concerned that unsustainable levels of sovereign debt for many countries in Europe could eventually threaten the viability of many European banks. In addition, weakness in manufacturing data in the U.S., Europe and China led to heightened fears of a double dip global recession. Global markets were further unsettled by the downgrade of the U.S. credit rating. Against this uncertainty, investors shunned risky assets such as equities.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Hansberger International Value Class I2 returned (12.56)%. By comparison, its primary and former benchmarks, the Morgan Stanley Capital International All Country World Index ex-U.S. and the Morgan Stanley Capital International-Europe, Australasia, Far East Index, returned (4.25)% and (3.64)%, respectively.
STRATEGY REVIEW
Market performance among the various regions was mostly negative for the year with emerging markets and Europe registering the largest losses. Our holdings in China had the largest negative contribution to performance while our Australian holdings made the largest positive impact.
The primary detractor from relative performance during the period was stock selection in the Materials and Consumer Discretionary sectors. Concerns that the global economy could be on the verge of a double dip recession hurt companies in the Materials sector. In our portfolio, Evraz Group SA, Kazakhyms PLC and Eurasian Natural Resources Corp., PLC negatively impacted performance. In the Consumer Discretionary sector, emerging market holdings were particularly weak as policymakers in many emerging market countries raised interest rates to combat rising inflationary pressures. Many investors worried that these policies could slow economic growth and hurt corporate profits. Companies such as China-based Guangzhou Automobile Group Co., Ltd., and Brazil-based Gafisa SA underperformed in this environment. The Financials sector also endured a tough year with BNP Paribas SA and Lloyds TSB Group PLC among those hit hard by the fallout from the worsening European sovereign debt crisis. Our holdings in Telecommunication Services underperformed mainly due to weakness in America Movil and MTN Group, Ltd. Although our overweight exposure to the Industrials sector detracted from performance, positive stock selection in the sector partly offset this effect. Most of this positive impact came from an investment in Canadian National Railway Co., which benefited from continued growth in volumes, higher prices and ongoing improvements in profitability.
Our investments in the Information Technology and Energy sectors were the most significant positive contributors to performance over the past year. In the Information Technology sector SAP AG and Ericsson Telefon AB performed well. Both companies benefited from continued strength in corporate spending on technology products as well as growing demand for consumer electronic devices such as tablets and smartphones. Energy stocks had a volatile year with ENI SpA making the largest positive contribution. In this nervous market environment the Health Care and Consumer Staples sectors were the top performers in absolute terms. In Health Care European pharmaceutical giants GlaxoSmithKline PLC and Roche Holding AG both benefited from investors moving into a defensive mode, while Unilever PLC was the top contributor in the Consumer Staples sector. Finally, our utilities holdings outperformed with Brazil’s Cia Energetica de Minas Gerais generating positive returns in the year.
While macroeconomic risks continue to be quite high, the corporate sector remains in relatively good health. In recent months, corporate earnings have remained strong while market weakness has led to a contraction in valuations. While uncertainty and periodic increases in risk aversion will likely contribute to ongoing volatility, in our view, valuations are attractive and many of these risks have been well flagged.
In this volatile environment, we continue to seek high quality businesses that have strong balance sheets, visible cash flows and attractive valuations. We believe these companies will be well positioned to provide positive returns for investors over the long-term.
Ronald W. Holt, CFA
Moira McLachlan, CFA
Lauretta (Retz) Reeves, CFA
Co-Portfolio Managers
Hansberger Global Investors, Inc.
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| | | | | |
| Transamerica Funds | | Page 7 | | Annual Report 2011 |
Transamerica Hansberger International Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | |
| | | | | 10 Years or | | |
| | | 1 Year | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | (12.56)% | | (2.70)% | | 12/06/2005 |
| MSCI-ACWI ex-US* | | (4.25)% | | 3.45% | | 12/06/2005 |
| MSCI-EAFE* | | (3.64)% | | 1.74% | | 12/06/2005 |
| |
NOTES
| | |
| * | | Prior to December 15, 2010, the Morgan Stanley Capital International-Europe, Australasia, Far East Index (“MSCI-EAFE”) served as the primary benchmark for the fund, at which time, it was replaced with the Morgan Stanley Capital International All Country World Index ex-U.S. (“MSCI-ACWI ex US”). The MSCI-ACWI ex US is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the fund. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 8 | | Annual Report 2011 |
Transamerica ICAP Select Equity
(unaudited)
MARKET ENVIRONMENT
During the two-month period ending October 31, 2011, equity markets were particularly volatile as the uncertainty over economic growth and the European sovereign debt crisis influenced investors’ outlooks. Markets fell in September and rebounded in October as investors alternated from pessimism to a more improved outlook on these issues. Several recent policy and economic developments have contributed to improvement in the overall outlook; however, key issues remain unresolved and a number of headwinds remain.
Global monetary policy is starting to shift toward additional accommodation. The Federal Reserve Board (“Fed”) has embarked on a modified form of quantitative easing (Operation Twist) and the European Central Bank is anticipated to cut interest rates. European and non-European policy makers have finally begun to see the magnitude of the financial crisis on the continent and are starting to formulate a response. Europe’s policymakers are actively exploring options to provide increased liquidity and financial support to their financial system. The United States and China have increased pressure on European political heads as they have recognized the vulnerability of their economies to weakness in Europe. Energy and commodity prices have eased with oil and raw industrial commodity prices now down moderately from their spring peaks. This increases the potential for lower global inflation over the next six months, which would provide some support for real incomes. There has been increased recognition of slower economic growth and a more challenging earnings environment in the stock market.
However, global economic activity is still decelerating and the potential for recession in the developed markets remains elevated. Elevated stress levels in bank funding markets — particularly in Europe — are adding to deflationary pressures. The policy response to the European financial crisis remains inadequate, with institutional and political constraints continuing to limit action. Monetary authorities in the developed economies remain hamstrung by very low interest rate conditions and high sovereign debt levels constrain the flexibility of fiscal policy in the developed economies.
PERFORMANCE
For the period from inception August 31, 2011 through October 31, 2011, Transamerica ICAP Select Equity Class I2 returned 2.31%. By comparison, its benchmark, the Russell 1000® Value Index (‘Russell 1000® Value”), returned 3.03%.
STRATEGY REVIEW
Overall, the portfolio is built on a stock-by-stock basis and reflects the individual names that we believe have a combination of attractive valuation and catalysts likely to trigger appreciation over a 12-18 month time frame. Stock-specific catalysts can be related to a company’s management, a restructuring, a problem-fixing situation, a new product or pricing flexibility.
During the period, two themes were in place that we believe are timely in an environment of persistently slow economic growth. One, the “strong will get stronger” theme was maintained. The portfolio seeks to emphasize companies with strong operational and financial characteristics. We believe these companies can gain share from weaker competitors and thus improve their earnings. Two, a new theme of “earn and return cash” was initiated. We believe stocks of companies that can both grow earnings and provide significant cash returns to shareholders should be attractive to many investors.
During the short period, the portfolio underperformed the Russell 1000® Value, driven by a number of key factors. In the health care sector, stock selection detracted from relative performance as drug-maker Hospira, Inc. underperformed due to ongoing manufacturing issues. Stock selection in consumer staples detracted as Pepsico, Inc. lagged the sector on weak results in its North American beverages business. Stock selection also detracted in the consumer services sector as media company Viacom, Inc. lagged on concerns a weak economy would lead to a soft advertising market. Pepsico and Viacom remained in the portfolio at the end of the period as we still believed the stocks had attractive valuation and catalysts.
Stock selection in the energy sector added value where integrated oil and gas company Occidental Petroleum Corp. was a notable performer as it showed improvement in production levels. In the capital spending sector, diversified manufacturer Honeywell International, Inc. added to relative performance as the company delivered solid financial results and outlook. In the technology sector, Texas Instruments, Inc. outperformed as they reported that sales improved and orders stabilized.
Jerrold K. Senser, CFA
Thomas R. Wenzel, CFA
Co-Portfolio Managers
Institutional Capital, LLC
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| Transamerica Funds | | Page 9 | | Annual Report 2011 |
Transamerica ICAP Select Equity
(unaudited)
Average Annual Total Return for Period Ended 10/31/2011
| | | | | |
| | | 10 Years or | | Inception |
| | | Life of Fund | | Date |
| |
| Class I2 (NAV) | | 2.31% | | 08/31/2011 |
Russell 1000® Value* | | 3.03% | | 08/31/2011 |
| |
NOTES
| | |
| * | | The Russell 1000® Value Index (“Russell 1000® Value”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Stocks may be volatile, their prices may go up and down dramatically over the shorter term. The prices of the securities the sub-adviser believes are undervalued may not appreciate as anticipated, or may go down. Value stocks as a group may be out of favor and underperform the overall equity market for a long period of time, for example, while the market favors “growth” stocks. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 10 | | Annual Report 2011 |
Transamerica Jennison Growth
(unaudited)
MARKET ENVIRONMENT
The US stock market rallied in the first six months of the reporting period on indications of continued global expansion. It relinquished much of its advance in the last several months, as investors’ worries about government debt and slowing economic growth drove heightened volatility.
Solid corporate earnings gains and continued spending provided tailwinds that allowed the US economy to continue expanding, although at a generally lackluster rate. Business production and housing measures were mixed and overall job growth remained anemic.
Strong commodity prices earlier in the period reflected continued demand in developing economies, which remained the primary drivers of global growth. However, raw materials, commodities, food, and energy prices grew more volatile as markets faced new challenges posed by a sovereign debt crisis in Europe, political turmoil in the Middle East, and a devastating earthquake and tsunami in Japan. In China, the government applied the brakes on growth and attempted to ease resource constraints, which spurred commodity cost inflation, rising real estate prices, and tightening labor rates.
Stock prices were also pressured late in the period by acrimony and political gamesmanship related to the Congressional debate over the US debt ceiling. A last-minute accord averted an immediate crisis, but the lack of a longer-term solution highlighted the scope of Washington’s fiscal problems. The subsequent downgrade of US long-term sovereign credit fueled additional anxiety.
Reductions in gross domestic product (“GDP”) growth forecasts and corporate expectations came as prognosticators looked to gauge the impact of falling confidence across the globe.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Jennison Growth Class I2 returned 9.96%. By comparison, its benchmark, the Russell 1000® Growth Index, returned 9.92%.
STRATEGY REVIEW
The portfolio is built from the bottom up, based on the fundamentals of individual companies. Consumer discretionary positions contributed most to portfolio return, as both stock selection and an overweight position were beneficial. Amazon.com, Inc.’s strong earnings reflected market share gains and the ongoing long-term shift to e-commerce. Apparel and accessories retailer Ralph Lauren Corp. benefited from growth in Europe and Asia. Starbucks Corp.’s advance reflected strong domestic and international growth and enthusiasm about a strategic relationship that furthers the company’s goal of expanding its presence in the premium single-cup coffee market.
Stock selection was also strong in consumer staples, although an underweight stance detracted from relative return. Natural foods retailer Whole Foods Market, Inc. climbed on strong sales trends and market share gains. Costco Wholesale Corp. reported better-than-projected earnings on solid traffic and sales growth, strong membership renewal trends, and solid margin expansion.
Several information technology holdings posted substantial gains. Apple Inc.’s financial results beat consensus forecasts by a wide margin, as sales of iPhones and iPads continued to impress. MasterCard, Inc’s revenues and earnings exceeded consensus forecasts; the company received an additional boost as the Federal Reserve Board’s decision to limit debit transaction fees charged by banks was less onerous than feared. International Business Machine Corp. climbed on better-than-expected revenue and earnings, growth across global geographies, and strong cash flow.
Stock selection hurt portfolio performance in health care, where Illumina, Inc. and Novo Nordisk A/S lost ground. Illumina was hurt by purchasing delays caused by research funding concerns. It develops and markets genotyping, next-generation sequencing, and gene-expression tools to isolate and analyze genetic information. Novo Nordisk, the world’s biggest maker of insulin, fell on lower than projected revenue and earnings.
In energy, an underweight position and security selection were detrimental. In financials, Goldman Sachs Group, Inc.’s decline largely reflected concerns about potential litigation against the company related to allegations it misled clients by not disclosing its proprietary interest in certain collateralized debt transactions.
Detractors of note in the information technology sector included Juniper Networks, Inc. and NetApp, Inc. Internet protocol routing company Juniper was hurt by a deteriorating macroeconomic backdrop. NetApp’s earnings were in line with consensus projections, but revenues were shy of estimates, and sales guidance came in below consensus forecasts. The company provides data-management solutions that simplify the complexities of storing, managing, protecting, and archiving enterprise data.
Michael A. Del Balso
Blair A. Boyer
Spiros “Sig” Segalas
Co-Portfolio Managers
Jennison Associates LLC
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| | | | | |
| Transamerica Funds | | Page 11 | | Annual Report 2011 |
Transamerica Jennison Growth
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | 5 Years | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | 9.96% | | 3.51% | | 3.20% | | 11/15/2005 |
Russell 1000® Growth * | | 9.92% | | 3.04% | | 3.91% | | 11/15/2005 |
| |
NOTES
| | |
| * | | The Russell 1000® Growth Index (“Russell 1000® Growth”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 12 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
(unaudited)
MARKET ENVIRONMENT
The fourth quarter of 2010 began with a number of unanswered questions regarding the U.S. midterm elections, tax policy and the size of the Federal Reserve Board’s (“Fed”) second round of quantitative easing (“QE2”). The shift of control in the House of Representatives to the Republican Party led to a compromise between President Obama and Congressional Republicans on the Bush-era tax cuts, extending them in addition to emergency unemployment benefits. The deal also included a surprise payroll tax cut. This was in addition to the announcement at the November Federal Open Market Committee Meeting that the Fed would purchase an additional $600 billion in Treasury securities through the middle of 2011.
In the first quarter of 2011, risk assets buoyed by stimulative monetary and fiscal policy were able to maintain their momentum despite significant global events that threatened to derail the recovery. U.S. equity markets saw their strongest first quarter since 1999, recovering from concerns in March about oil prices and the impact of the earthquake and tsunami in Japan. During the quarter, oil prices jumped above $105 per barrel as investors worried that turmoil in the Middle East and North Africa could disrupt supplies, particularly as conflicts in Libya and Bahrain escalated. Increases in commodity and food prices generally heightened inflation concerns in the market. While Japan’s natural disasters will likely continue to have ripple effects on the global supply chain and investors will continue to monitor progress of the Japanese nuclear crisis, in general, it does not appear that these events would derail the global recovery. Elsewhere, despite political turmoil and ratings downgrades for Portugal, investors seemed to affirm the policy steps that the European Central Bank (“ECB”) proposed to prevent financial concerns from spreading beyond Greece, Ireland and Portugal.
While risk assets started and finished the second quarter of 2011 on a strong note, much of the quarter was characterized by a flight to quality as economic data reflected a soft patch in the global recovery and investor concerns heightened about the finances of peripheral Europe. In particular, markets closely followed developments in Greece, as disagreements among European policy makers brought uncertainty regarding another bailout to the forefront in June. The approval of new austerity measures by the Greek parliament at the end of June averted an immediate government funding crisis, but the muted reaction of peripheral Eurozone government debt spreads arguably said more than the euphoria of global equity markets. Further austerity may mean less growth and, in the shorter term at least, a rising debt/gross domestic product ratio and a deeper solvency problem.
During the third quarter of 2011, investors were on edge as uncertainty over prospects for global economic growth and worries over the inability of policymakers in the U.S. and Europe to tackle sovereign debt woes caused significant volatility in markets. In Europe, the approval of €109 billion in new subsidized European Financial Stability Facility (“EFSF”) loans for Greece and the proposal to increase the lending capacity of the EFSF to €440 billion, did little to quell market fears of a debt and growth crisis causing a disorderly Greek default, which would then lead to destabilization of Spain and Italy, and even core Europe. As a result, credit spreads of Eurozone member countries widened and those of banks followed suit. In the U.S., Congress brought the country to the brink of default as both political parties only agreed to increase the debt limit at the last minute. However, this was not enough to keep Standard & Poor’s from downgrading the U.S. sovereign rating one notch, from AAA to AA+.
PERFORMANCE
For the year ended October 31, 2011, Transamerica JPMorgan Core Bond Class I2 returned 4.62%. By comparison, its benchmark, the Barclays Capital U.S. Aggregate Bond Index, returned 5.00%.
STRATEGY REVIEW
Transamerica JPMorgan Core Bond underperformed its benchmark for the 12 months ended October 31, 2011. The portfolio’s underweight in Treasuries was the largest detractor over the period, as Treasury debt performed well versus comparable-duration spread sectors during a period of heightened economic instability. The underweight in credit was positive for performance as credit underperformed mortgages on a duration-neutral basis. The portfolio remained overweight in seasoned AAA-rated mortgage-backed securities (“MBS”), with most of its exposure in seasoned collateralized mortgage obligations (“CMOs”). We continue to favor seasoned agency CMOs, along with select high-quality non-agency structures.
The fundamentals for most investment-grade corporate issuers finished the period strong, with well-positioned balance sheets and appropriate levels of cash. Overall, the corporate sector underperformed comparable-duration Treasuries, with financial names being the worst performing sub-sector, trailing Treasuries. Sector allocations did not change dramatically throughout the year, remaining overweight in mortgage securities, underweight in agency debentures and underweight in corporate bonds.
Douglas S. Swanson
Portfolio Manager
J.P. Morgan Investment Management Inc.
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| Transamerica Funds | | Page 13 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | |
| | | | | 10 Years or | | |
| | | 1 Year | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | 4.62% | | 6.05% | | 07/01/2009 |
| Barclays Capital U.S. Aggregate Bond* | | 5.00% | | 7.43% | | 07/01/2009 |
| |
NOTES
| | |
| * | | The Barclays Capital U.S. Aggregate Bond Index (“Barclays Capital U.S. Aggregate Bond”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in bond funds entails interest rate and credit risk as well as additional risks in that the fund may invest in high-yield/high-risk bonds and is subject to greater levels of liquidity risk, which are described in more detail in the prospectus. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 14 | | Annual Report 2011 |
Transamerica JPMorgan International Bond
(unaudited)
MARKET ENVIRONMENT
The Federal Reserve Board (“Fed”) initiated a second round of quantitative easing (“QE2”) in November 2010, a stimulative policy that helped risk assets extend their strong performance into 2011 despite the natural disaster in Japan. Considerable turmoil in the Middle East and North Africa also threatened economic progress as escalating oil prices contributed to inflation concerns. Fears about peripheral European sovereign debt also flared up as the European Central Bank (“ECB”) announced a rescue package for Ireland.
Attention remained on Europe for most of 2011 as the sovereign debt crisis continued to evolve. At the end of June, an immediate government funding crisis in Greece was narrowly averted when its parliament approved new austerity measures. The July 21st proposal to increase the lending capacity of the European Financial Stability Facility (“EFSF”) relief fund was eventually ratified by all national governments in October, though questions remained about the plan’s adequacy and implementation. As contagion spread to core Europe, the ECB reluctantly initiated its Securities Markets Program (“SMP”) in August by purchasing Italian and Spanish bonds in the secondary market.
Meanwhile, the United States came extremely close to default as politicians agreed at the last minute to raise the debt ceiling in August. Even so, Standard & Poor’s downgraded the U.S. sovereign rating from AAA to AA+. The Fed announced in August that it would keep interest rates exceptionally low through mid-2013. In September, the Fed introduced a new easing policy, termed “Operation Twist,” essentially a maturity extension program intended to put downward pressure on longer-term interest rates.
Skepticism surrounding U.S. policy actions and the ongoing European crisis kept risk markets depressed and the flight to quality extended into the end of the third quarter of 2011. After bottoming at the beginning of October, global markets began to rebound with improved U.S. economic data and progress on the European debt front. Although the announcement from the European summit on October 26th provided a framework agreement for Greek bond write-offs, EFSF leveraging capabilities and European bank recapitalizations, it did not solve the underlying problem of generating long-term growth.
PERFORMANCE
For the year ended October 31, 2011, Transamerica JPMorgan International Bond Class I2 returned 2.20%. By comparison its benchmark, the JPMorgan Government Bond ex-U.S. unhedged Index, returned 3.47%.
STRATEGY REVIEW
Transamerica JPMorgan International Bond underperformed its benchmark for the 12 months ended October 31, 2011. After a strong start to the period, performance was hurt in June, July and August, due primarily to unhedged exposure to Mexican bonds, which came under acute pressure over the period, wiping out the gain from the rally in yields. By contrast, our hedged exposure to South African local currency debt contributed to returns as yields fell. Earlier in the year allocation in emerging market local bonds had enhanced performance.
G10 currency positioning also detracted. The short Japanese yen and long Canadian dollar and Norwegian krone stance came under pressure as the foreign exchange carry trade unwound against a backdrop of declining economic data and the conclusion of the QE2 program in the U.S. Our short Australian positioning proved to be a slight mitigating factor. Allocations in high-quality agency and supranational issuers (such as the European Investment Bank and Kreditanstalt fuer Wiederaufbau, the German-owned development bank) provided alpha, as did our decision to maintain a long duration throughout 2011. However, our allocation in European covered bonds, which we have been gradually increasing over recent months, detracted as the front-end of the swap curve widened significantly in response to escalating Eurozone peripheral stress.
We made a timely decision to cut corporate exposure to neutral in the middle of the second quarter, avoiding the sharp sell-off that occurred over the summer. Exposure to peripheral Europe remained relatively flat for much of the period, although, at times, there were small underweights in Italy and Spain, which provided some outperformance. The long Belgium versus short Germany positioning in August also detracted as the rally in Belgium did not match the fall in German yields on flight-to-quality flows.
Jon B. Jonsson
Portfolio Manager
J.P. Morgan Investment Management Inc.
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| Transamerica Funds | | Page 15 | | Annual Report 2011 |
Transamerica JPMorgan International Bond
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 2.20 | % | | | 7.23 | % | | | 7.34 | % | | | 12/06/2005 | |
| |
| JPMorgan Gov Bond ex US unhedged* | | | 3.47 | % | | | 8.23 | % | | | 8.23 | % | | | 12/06/2005 | |
| |
NOTES
| | |
| * | | The JPMorgan Government Bond Index ex-U.S. unhedged (“JP Morgan Gov Bond ex US unhedged”) is an unmanaged index used as a general measure of market performance. Calculations assumed dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in bond funds entails interest rate and credit risk as well as additional risks in that the fund may invest in high-yield/high-risk bonds and is subject to greater levels of liquidity risk, which are described in more detail in the prospectus. Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 16 | | Annual Report 2011 |
Transamerica JPMorgan Long/Short Strategy
(formerly, Transamerica BNY Mellon Market Neutral Strategy)
(unaudited)
MARKET ENVIRONMENT
The Federal Reserve Board (“Fed”) initiated a second round of quantitative easing (“QE2”) in November 2010, a stimulative policy that helped risk assets extend their strong performance into 2011 despite the natural disaster in Japan. Considerable turmoil in the Middle East and North Africa also threatened economic progress as escalating oil prices contributed to inflation concerns. Fears about peripheral European sovereign debt also flared up as the European Central Bank (“ECB”) announced a rescue package for Ireland.
Attention remained on Europe for most of 2011 as the sovereign debt crisis continued to evolve. At the end of June, an immediate government funding crisis in Greece was narrowly averted when its parliament approved new austerity measures. The July 21st proposal to increase the lending capacity of the European Financial Stability Facility (“EFSF”) relief fund was eventually ratified by all national governments in October, though questions remained about the plan’s adequacy and implementation. As contagion spread to core Europe, the ECB reluctantly initiated its Securities Markets Program (“SMP”) in August by purchasing Italian and Spanish bonds in the secondary market.
Meanwhile, the United States came extremely close to default as politicians agreed at the last minute to raise the debt ceiling in August. Even so, Standard & Poor’s downgraded the U.S. sovereign rating from AAA to AA+. The Fed announced in August that it would keep interest rates exceptionally low through mid-2013. In September, the Fed introduced a new easing policy, termed “Operation Twist,” essentially a maturity extension program intended to put downward pressure on longer-term interest rates.
Skepticism surrounding U.S. policy actions and the ongoing European crisis kept risk markets depressed and the flight to quality extended into the end of the third quarter of 2011. However, there have been a few positive developments in Europe. In late September, dozens of key policymakers from around the world descended on Washington, D.C., for the semi-annual meeting of the International Monetary Fund (“IMF”), including the Group of Twenty (“G-20”) Finance Ministers and Central Bank Governors. It appears that the volatility seen in the markets made it clear to an increasing number of European officials that they need to change their approach to the crisis. The key proposals from the meeting were to increase the flexibility of the EFSF and to ensure that European banks have strong capital positions and access to adequate funding. Additionally, while there are a few countries that still had to vote, the Eurozone’s largest economy, Germany agreed to increase the lending capacity of the EFSF.
Despite increasingly attractive valuations, it is questionable whether markets will remain patient. It is equally questionable whether all European constituents can actually agree on steps which will convince markets that policy is finally ahead of the curve. The coming few weeks will be critical as investors expect the IMF communication to be followed by action. A successful resolution to the European crisis would most certainly bode well for a healthy rebalancing into equities.
PERFORMANCE
For the year ended October 31, 2011, Transamerica JPMorgan Long/Short Strategy Class I2 returned (5.53)%. By comparison its primary and secondary benchmarks, the Bank of America Merrill Lynch 3-Month Treasury Bill Index and Standard & Poor’s 500® Index, returned 0.13% and 8.09%, respectively. The former primary benchmark, the Bank of America Merrill Lynch 3-Month Treasury Bill + 3% Wrap Fee, returned 3.18%.
Prior to January 6, 2011, the fund was named Transamerica BNY Mellon Market Neutral Strategy and had a different sub-adviser.
STRATEGY REVIEW
Transamerica JPMorgan Long/Short Strategy underperformed its benchmarks during the 12 months ended October 31, 2011. Stock selection in the financials, semiconductor and telecommunications sectors detracted from returns. Alternatively, stock selection in the media, software and hardware, and basic materials sectors contributed to performance.
At the individual stock level, telecommunications company Sprint Nextel Corp. detracted from results. Shares dropped after the company reported disappointing margins and issued a negative outlook. Increased promotion costs drove margin weakness, while the company’s planned network build is expected to negatively impact cash flow later in the year. However, we continue to think that the company’s long-term position is solid. Consolidation among its key competitors should help drive margin improvement going forward, as margins tend to be higher in markets with fewer wireless players and less price competition.
Within internet & catalog retail, an overweight in online retailer Amazon.com contributed to returns. The stock gains were driven by another strong quarter of revenue growth. Amazon.com is a key player that is competitively positioned for continued share gains from the offline to online commerce space. We remain bullish on the stock, given the secular tailwind and believe the company can sustain its long-term growth.
Terance Chen, CFA
Portfolio Manager
J.P. Morgan Investment Management Inc.
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| |
| Transamerica Funds | | Page 17 | | Annual Report 2011 |
Transamerica JPMorgan Long/Short Strategy
(formerly, Transamerica BNY Mellon Market Neutral Strategy)
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or Life of | | | | |
| | | 1 Year | | | Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | (5.53 | )% | | | (3.43 | )% | | | 01/03/2007 | |
| BofA Merrill Lynch 3-Month Treasury Bill * | | | 0.13 | % | | | 1.53 | % | | | 01/03/2007 | |
| S&P 500 * | | | 8.09 | % | | | (0.4 | )% | | | 01/03/2007 | |
| BofA Merrill Lynch 3-Month Treasury Bill + 3% Wrap Fee * | | | 3.18 | % | | | 4.62 | % | | | 01/03/2007 | |
| |
NOTES
| | |
| * | | Prior to January 6, 2011, the Bank of America Merrill Lynch 3-Month Treasury Bill + 3% Wrap Fee Index (“BofA Merrill Lynch 3-Month Treasury Bill + 3% Wrap Fee”) served as the primary benchmark for the fund at which time, it was replaced with the Bank of America Merrill Lynch 3-Month Treasury Bill Index (“BofA Merrill Lynch 3-Month Treasury Bill”) and the Standard & Poor’s 500 ® Index (“S&P 500”). The BofA Merrill Lynch 3-Month Treasury Bill, S&P 500, and BofA America Merrill Lynch 3-Month Treasury Bill + 3% Wrap Fee Index are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Securities purchased for an arbitrage strategy are intended to take advantage of a perceived relationship between the value of two securities and may not perform as expected. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 18 | | Annual Report 2011 |
Transamerica JPMorgan Mid Cap Value
(unaudited)
MARKET ENVIRONMENT
The Federal Reserve Board (“Fed”) initiated a second round of quantitative easing (“QE2”) in 2010, a stimulative policy that helped risk assets extend their strong performance into 2011 despite the natural disaster in Japan. Considerable turmoil in the Middle East and North Africa also threatened economic progress as escalating oil prices contributed to inflation concerns. Fears about peripheral European sovereign debt also flared up as the European Central Bank (“ECB”) announced a rescue package for Ireland.
Attention remained on Europe for most of 2011 as the sovereign debt crisis continued to evolve. At the end of June, an immediate government funding crisis in Greece was narrowly averted when its parliament approved new austerity measures. The July proposal to increase the lending capacity of the European Financial Stability Facility (“EFSF”) relief fund was eventually ratified by all national governments in October, though questions remained about the plan’s adequacy and implementation. As contagion spread to core Europe, the ECB reluctantly initiated its Securities Markets Program (“SMP”) in August by purchasing Italian and Spanish bonds in the secondary market.
Meanwhile, the United States came extremely close to default as politicians agreed at the last minute to raise the debt ceiling in August. Even so, Standard & Poor’s downgraded the U.S. sovereign rating from AAA to AA+. The Fed announced in August that it would keep interest rates exceptionally low through mid-2013. In September, the Fed introduced a new easing policy, termed “Operation Twist,” which was essentially a maturity extension program intended to put downward pressure on longer-term interest rates.
Skepticism surrounding U.S. policy actions and the ongoing European crisis kept risk markets depressed and the flight to quality extended into the end of the third quarter of 2011. However, there have been a few positive developments in Europe. In late September, dozens of key policymakers from around the world descended on Washington, D.C., for the semi-annual meeting of the International Monetary Fund (IMF), including the Group of Twenty (“G-20”) Finance Ministers and Central Bank Governors. It appears that the volatility seen in the markets made it clear to an increasing number of European officials that they need to change their approach to the crisis. The key proposals from the meeting were to increase the flexibility of the EFSF and to ensure that European banks have strong capital positions and access to adequate funding. Additionally, while there are a few countries that still had to vote, the Eurozone’s largest economy, Germany agreed to increase the lending capacity of the EFSF.
Despite increasingly attractive valuations, it is questionable whether markets will remain patient. It is equally questionable whether all European constituents can actually agree on steps which will convince markets that policy is finally ahead of the curve. The coming few weeks will be critical as investors expect the IMF communication to be followed by action. A successful resolution to the European crisis would most certainly bode well for a healthy rebalancing into equities.
PERFORMANCE
For the year ended October 31, 2011, Transamerica JPMorgan Mid Cap Value Class I2 returned 8.88%. By comparison its benchmark, the Russell Midcap® Value Index, returned 5.83%.
STRATEGY REVIEW
Transamerica JPMorgan Mid Cap Value outperformed its benchmark for the 12 months ended October 31, 2011. Stock selection in the information technology sector and a combination of stock selection and an overweight in the consumer discretionary sector contributed to returns. Stock selection and an overweight in the telecommunication services sector and an underweight in the consumer staples sector detracted from performance.
At the individual stock level, Williams Cos, Inc., an integrated natural gas company, was the top contributor to performance. Shares rallied on announcements that Williams Companies will be separated into two publicly traded companies and increase its quarterly dividend by 60%. The restructuring plan calls for the separation of the company’s exploration and production business via an initial public offering (“IPO”) of up to 20% of its interest. The remaining interest is expected to be distributed to Williams’ shareholders via a tax-free spinoff in 2012. After the separation is complete, Williams will be an operator of midstream infrastructure and natural gas pipeline assets. Finally, Williams intends to maintain its investment-grade credit rating by using IPO proceeds to pay down debt.
The biggest detractor from performance was Newfield Exploration Co., an oil and gas company. Shares declined over the period as the company reported earnings results, which were below expectations, driven by higher operating expenses. Additionally, Newfield lowered its production guidance due to recent asset sales and production outages at an offshore development site. However, the site impacted by the outage is now fully operational. We believe the company can achieve its planned production growth targets as several new projects are under development.
Gloria Fu, CFA
Lawrence Playford,CFA
Jonathan K.L.Simon
Co-Portfolio Managers J.P.
Morgan Investment Management Inc.
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| | | | | |
| Transamerica Funds | | Page 19 | | Annual Report 2011 |
Transamerica JPMorgan Mid Cap Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 8.88 | % | | | 2.23 | % | | | 4.55 | % | | | 11/15/2005 | |
Russell Midcap® Value * | | | 5.83 | % | | | 0.73 | % | | | 3.58 | % | | | 11/15/2005 | |
| |
NOTES
| | |
| * | | The Russell Midcap® Value Index (Russell Midcap® Value”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. Value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that an undervalued stock is actually appropriately priced. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 20 | | Annual Report 2011 |
Transamerica Loomis Sayles Bond
(unaudited)
MARKET ENVIRONMENT
Brought on by the Federal Reserve Board’s initiation of the second round of quantitative easing (“QE2”), the market was showing signs of stability in the closing months of 2010. The power of easy money policy to dampen volatility was evident in the global bond markets as investor confidence was generally improving and macro indicators were supportive for the continuation of the global growth story. Even after significant political upheaval in the Middle East and North Africa, and the devastating earthquake, tsunami and nuclear accident in Japan, there were no major jumps in risk aversion. Interest rates trended higher and credit spreads moved generally tighter as overall investor sentiment remained favorable for risk assets during this period.
By the end of second quarter 2011; however, it became clear that significant headwinds had emerged to challenge the recovery. The resurgence of the European debt crisis fanned concerns of financial system turmoil and contagion, while weaker than expected domestic macroeconomic data, and general uncertainty concerning the winding down of QE2 eroded investor confidence. Disappointment over trends in the labor market and fears over higher energy prices, along with supply disruptions from Japan, led to downward revisions to U.S. growth forecasts. Consensus estimates for rate hikes were pushed out and Treasury yields steadily declined as investors began to fear that the twin engines of growth, the U.S., and China, were also beginning to stall.
The third quarter was an incredibly challenging period for riskier fixed income and equity assets, with the primary drivers continuing to be the European sovereign crisis and concerns about U.S. growth. In the U.S., the protracted debt ceiling debate, threat of a U.S. default coupled with gross domestic product revisions lowering economic growth to 0.85% in the first half of 2011, dealt a blow to investor confidence. As dealers moved to significantly lighten their balance sheets and many investors dug in, a severe lack of liquidity became the main culprit with regards to downward pressure on riskier bond prices. Despite a downgrade of U.S. sovereign debt by Standard & Poor’s, the flight to quality pushed Treasury yields lower, with the yield on the 10 year moving below 2% as worries intensified about the strength of the global economic recovery. This precipitous drop in yield demonstrated that investors still favor the depth and liquidity offered by U.S. government debt in times of uncertainty. Technical factors and general de-risking were the dominant themes in the market.
As we moved into October, the markets were offered some relief as policy makers in Europe signaled that they were close to an agreement that would effectively amount to a European bailout. This and domestic macroeconomic data that pointed only to slower growth as opposed to a recessionary environment, were strong recent positives for the market.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Loomis Sayles Bond Class I2 returned 3.31%. By comparison, its benchmark, the Barclays Capital U.S. Government/Credit Bond Index (“Barclays Government/Credit Bond”), returned 5.26%.
STRATEGY REVIEW
From November 1, 2010 through June 30, 2011, the portfolio was well ahead of the benchmark, returning 6.16% versus 0.37% of the Barclays Government Credit/Bond. The flight to quality trade that dominated the third quarter was what hurt returns in the portfolio as credit spreads were pushed significantly wider across risk assets. Treasuries rallied strongly as yields fell, and outperformed most all other sectors by a significant margin. A significant underweight in Treasuries and an overweight to corporate credit, including convertible securities were the primary drivers of underperformance over this period. October saw a rebound in investor risk appetites and the portfolio took advantage, rallying by 4.43% versus 0.12% of the Barclays Government Credit/Bond. Most of the gains over the past month are attributed to strong gains among commodity driven non U.S. Dollar sovereign debt, including bonds issued out of Brazil, Mexico, and Canada. Corporate bonds, which represent a significant weight in the portfolio, also rallied. High yield corporates in particular experienced resurgence in price appreciation as spreads moved tighter from the wide spreads experienced over the prior two months. While challenges certainly may exist in the shorter term, including further pockets of volatility, longer term we still believe the global economic recovery will continue and we have positioned the portfolio accordingly. Additionally we will continue to keep the portfolio well diversified going forward.
Kathleen C. Gaffney, CFA
Mathew J. Eagan, CFA
Daniel J. Fuss, CFA
Elaine M. Stokes
Co-Portfolio Managers
Loomis, Sayles & Company, L.P.
| | | | |
| | | | | |
| Transamerica Funds | | Page 21 | | Annual Report 2011 |
Transamerica Loomis Sayles Bond
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 3.31 | % | | | 7.76 | % | | | 01/03/2007 | |
| Barclays Capital U.S. Government/Credit Bond* | | | 5.26 | % | | | 6.50 | % | | | 01/03/2007 | |
| |
NOTES
| | |
| * | | The Barclays Capital U.S. Government/Credit Bond Index (“Barclays Capital U.S. Government/Credit Bond”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Fixed income investing is subject to credit risk, inflation risk, and interest rate risk. Credit risk is the risk that the issuer of a bond won’t meet their payments. Inflation risk is the risk that inflation could outpace a bond’s interest income. Interest rate risk is the risk that fluctuations in interest rates will affect the price of a bond. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 22 | | Annual Report 2011 |
Transamerica MFS International Equity
(unaudited)
MARKET ENVIRONMENT
Early in the period, the U.S. Federal Reserve Board (“Fed”) indicated that further monetary loosening would be forthcoming if macroeconomic activity did not show signs of improvement. The prospects for, and subsequent implementation of, more easing by the Fed improved market sentiment and drove risk-asset prices markedly higher. The December 2010 agreement on a surprisingly large (relative to expectations) expansionary U.S. fiscal package also boosted sentiment. During the subsequent several months, the renewed positive market sentiment, coupled with better indications of global macroeconomic activity, pushed many asset valuations to post-crisis highs. At the same time, global sovereign bond yields rose amidst the more “risk-seeking” environment.
However, towards the middle of the period, a weakening macroeconomic backdrop and renewed concerns over Greek debt sustainability began to challenge equity valuations and pushed high-quality sovereign bond yields lower. Towards the end of the reporting period, uncertainty in financial markets continued to increase. European policy makers debated and disagreed over elements of a new Greek bailout package, while Spanish and Italian bond yields increased markedly signaling a widening European crisis. In the U.S., concerns about sovereign debt default and the long-term sustainability of the trend in U.S. fiscal policy resulted in one agency downgrading U.S. credit quality. Amidst this turmoil, global equity markets declined sharply. As a result of these developments, global consumer and producer sentiment indicators fell precipitously; highly-rated sovereign bond yields hit multi-decade lows and; despite a more mixed picture emanating from the “hard” data, markets grew increasingly worried about a return to global recession.
PERFORMANCE
For the year ended October 31, 2011, Transamerica MFS International Equity Class I2 returned (2.69)%. By comparison, its benchmark, the Morgan Stanley Capital International-Europe, Australasia, Far East Index (“MSCI-EAFE”), returned (3.64)%.
STRATEGY REVIEW
Contributors to performance
Security selection in the semiconductors & semiconductor equipment sector contributed to performance relative to the MSCI-EAFE. Within this sector, the fund’s ownership of South Korean microchip and electronics manufacturer Samsung Electronics and contract semiconductor manufacturer in the world Taiwan Semiconductor (Taiwan) aided relative results as both stocks outperformed the broad market.
In the chemicals sector, strong stock selection also contributed to relative performance. Here, the fund’s overweight allocation to industrial gas supplier Linde AG (Germany) boosted relative results.
Stock selection in telecommunication services and transportation sectors also contributed to relative performance. Within these sectors, the fund’s holdings of strong-performing railroad company Canadian National Railway Co. and telecommunications company China Unicom (Hong Kong) strengthened relative returns.
Elsewhere, the fund’s overweight allocation to medical device manufacturer Synthes, Inc. (Switzerland, traded on U.S. markets), oil and gas exploration company INPEX Corp. (Japan), convenience store chain Lawson Inc. (Japan), alcoholic drink producer Diageo PLC (United Kingdom), and luxury goods company LVMH Moet Hennessy Louis Vuitton SA (France) aided relative performance.
Detractors from performance
Security selection in the professional services sector detracted from relative performance. The fund’s overweight position in poor-performing staffing and human resource service provider Randstad Holding NV (Netherlands) hindered relative performance.
Within other sectors, the fund’s overweight position in poor-performing Hong Kong-headquartered retailer Esprit Holdings Ltd. and investment management and banking firm UBS AG (Switzerland), and Austrian financial services company Erste Group Bank AG hindered relative performance. The fund’s holdings of banking and treasury management firm ICICI Bank, Ltd. (India) and financial services firm Banco Santander SA (Spain) also held back relative performance. Not holding shares of strong-performing integrated oil company BP PLC (United Kingdom), U.K.-based pharmaceutical firm GlaxoSmithKline, tobacco distributor British American Tobacco (United Kingdom), and food supplier Unilever N.V. (Netherlands) also weakened relative results.
Daniel Ling
Marcus L. Smith
Co-Portfolio Managers
MFS® Investment Management
| | | | |
| | | | | |
| Transamerica Funds | | Page 23 | | Annual Report 2011 |
Transamerica MFS International Equity
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | (2.69 | )% | | | (2.60 | )% | | | 06/10/2008 | |
| MSCI-EAFE* | | | (3.64 | )% | | | (5.59 | )% | | | 06/10/2008 | |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International-Europe, Australasia, Far East Index (“MSCI-EAFE”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. Investments in developing markets involve greater risks than investments in developed markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 24 | | Annual Report 2011 |
Transamerica Morgan Stanley Emerging Markets Debt
(unaudited)
MARKET ENVIRONMENT
Emerging markets (“EM”) fixed income, like most risk assets, faced considerable volatility in the 12 months ended October 31, 2011 as represented by the JPMorgan Emerging Markets Bond Index Global. The asset class had negative returns during the last couple of months of 2010, as the global risk appetite subsided in November due to the fiscal crisis in Ireland. Nevertheless, positive EM data releases confirmed that well established and favorable fundamentals remained intact.
The first three months of 2011 were volatile with a number of unexpected global events from political turmoil in the Middle East and Africa, to the Japan earthquake, to the precarious fiscal situation in Europe. During the period, emerging market central banks adopted divergent tightening strategies. Some central banks, such as Chile and Israel, surprised the market by stepping up the pace of rate hikes; others such as Brazil and Turkey tightened regulations in lieu of rate hikes.
In the second quarter of 2011, developed market worries began to take center stage as European officials still lacked a clear resolution to Greece’s sovereign-debt crisis; other European countries were showing signs of significant distress; and U.S. economic data disappointed. Inflationary pressures in the emerging markets prompted many emerging EM central banks to resume monetary tightening policies.
Global risk sentiment further weakened in the third quarter. Emerging markets assets in general came under immense pressure in September as investors shed all risk assets in favor of traditional “safe-havens”, the U.S. dollar and U.S. Treasuries. However, investors’ concerns eased in October due to signs that U.S. recession risks were receding and sentiment was improving about the European Union’s debt crisis management plan. In October, EM currencies reversed some of the previous month’s declines versus the U.S. dollar.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Morgan Stanley Emerging Markets Debt Class I2 returned 2.36%. By comparison, its benchmark, the JPMorgan Emerging Markets Bond Index Global, returned 4.06%.
STRATEGY REVIEW
Against this backdrop, U.S. Treasuries have rallied, with yields on the 10-year Treasury hovering around 2% since early September 2011. The risk premium on the JPMorgan Emerging Markets Bond Index Global (“Index”) widened 109 basis points to 392 basis points above U.S. Treasuries for the year ended October 31, 2011. The fund underperformed the Index during the period.
The portfolio benefited from overweight exposure to Ecuador and Kazakhstan, and the profitable sale of distressed positions in Indonesia. Exposure to local markets in Hungary early in the year and Chile also lifted performance. Ecuador benefited from high oil prices and improved expectations that the government will be able to attract external funds to finance its fiscal deficit, against a poor debt service record. Kazakhstan and Chile were bolstered by rising oil and copper prices, respectively. The market was optimistic toward Hungary early in the year due to government reforms to reduce the budget deficit.
Conversely, underweight exposure to Malaysia, the Philippines, and Uruguay as well as Peru late in the year detracted from relative returns. The Philippines benefited from steps taken to reduce its budget deficit and central bank efforts to keep inflation in check, while Malaysia was helped by resilient economic growth despite recent fears that a developed market-led recession would exhaust demand for Asian exports. Uruguay’s economy continued to exhibit strong growth supported by domestic demand. Peru gained on rising mineral prices and reassurance from President Ollanta Humala that he will boost the state’s control of the economy. An underweight to external markets in Colombia as well as exposure to local markets in South Africa and Turkey also hurt performance. In addition, exposure to Mexican corporates detracted from relative returns.
We believe growth in the developed world will stabilize at a lower level in the fourth quarter of 2011 and to slowly recover in 2012. However, the risk of a recession in the developed world has increased significantly. The unresolved fiscal troubles and apparent lack of political consensus to resolve them in the U.S. and in Europe are likely to cause bouts of high volatility and risk aversion in the marketplace, and depressed economic growth in the next few quarters.
In our opinion, developed central banks will provide liquidity as needed, supporting commodity prices and capital inflows into EM countries, which could somewhat offset the negative impact of heightened risk, aversion and subpar growth in the developed world. We believe EM countries will show resilient, albeit lower, growth in the next couple of quarters, aided by robust domestic policies, supportive terms of trade, and capital inflows. Subsiding inflationary pressures and balanced growth will likely allow EM central banks to adopt looser monetary policies in coming months.
In general, sovereign risk premiums are now too high relative to the fundamental macroeconomic strength of most emerging economies, in our opinion. In addition, we believe there are pockets of undervaluation in certain Asian and commodity currencies.
Eric J. Baurmeister
Federico L. Kaune
Co-Portfolio Managers
Morgan Stanley Investment Management Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 25 | | Annual Report 2011 |
Transamerica Morgan Stanley Emerging Markets Debt
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 2.36 | % | | | 7.31 | % | | | 8.09 | % | | | 11/08/2004 | |
| JPMorgan Emerging Markets Bond Global* | | | 4.06 | % | | | 8.37 | % | | | 9.14 | % | | | 11/08/2004 | |
| |
NOTES
| | |
| * | | The JPMorgan Emerging Markets Bond Index Global (“JPMorgan Emerging Markets Bond Global”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
The risks of investing in foreign securities are magnified in emerging markets. These may include risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets. Debt investing is subject to credit risk, inflation risk, and interest rate risk. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 26 | | Annual Report 2011 |
Transamerica Morgan Stanley Mid-Cap Growth
(unaudited)
MARKET ENVIRONMENT
The end of 2010 saw renewed optimism in the equity market, as represented by the Standard & Poor’s 500® Index, with the Federal Reserve Board’s second asset purchase program and improving economic data buoying stock prices. In March, the market retreated slightly due to political turmoil in the Middle East (which caused oil prices to rise) and a major natural disaster in Japan (which prompted fears of supply chain disruptions for the auto and electronics industries). Delays in approving an increase for the U.S. debt ceiling followed by the downgrade of U.S. bonds by credit rating agency Standard & Poor’s led to a major sell-off in the stock market in July and August. The European sovereign debt crisis also appeared to worsen during the period and its policy solutions continued to face significant political hurdles. Investors also began to fear that a double-dip recession was imminent in the developed world, although those concerns faded somewhat in October with positive surprises from some economic data in the U.S. and a well-received new debt management plan in the eurozone.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Morgan Stanley Mid-Cap Growth Class I2 returned 6.45%. By comparison, its benchmark, the Russell Midcap® Growth Index (“Russell Midcap® Growth”), returned 10.08%.
STRATEGY REVIEW
The investment team looks for high-quality growth companies that they believe have the following attributes: sustainable competitive advantages, business visibility, rising return on invested capital, free cash flow, and a favorable risk/reward profile. We find these companies through intense fundamental research. Our emphasis is on secular growth, and as a result short-term market events are not as meaningful in the stock selection process.
The fund underperformed the Russell Midcap® Growth during the period. The fund’s relative performance was hindered by the consumer discretionary sector, where holdings in video streaming service Netflix, Inc. and in China’s online travel booking site Ctrip.com International, Ltd. (a stock not represented in the benchmark) underperformed. The energy sector further dampened results with weakness from solar panel manufacturer First Solar, Inc. and crude oil producer Ultra Petroleum Corp. The financial services sector also detracted from relative performance. Within the sector, exposure to independent investment bank Greenhill & Co., Inc. was disadvantageous.
Stock selection in the producer durables sector, however, was the top contributor to relative performance during the period. In the sector, holdings across a variety of industries performed well, led by corporate services provider Edenred. The health care sector also contributed positively. Several holdings in the health care equipment & supplies industry (Intuitive Surgical, Inc., IDEXX Laboratories, Inc. and Gen-Probe, Inc.) and the life sciences tools & services industry (Techne Corp.) bolstered performance.
Dennis P. Lynch
David S. Cohen
Sam G. Chainani
Alexander T. Norton
Jason C. Yeung
Armistead B. Nash
Co-Portfolio Managers
Morgan Stanley Investment Management Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 27 | | Annual Report 2011 |
Transamerica Morgan Stanley Mid-Cap Growth
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 6.45 | % | | | 7.66 | % | | | 7.14 | % | | | 01/03/2006 | |
| |
Russell Midcap® Growth* | | | 10.08 | % | | | 3.46 | % | | | 3.98 | % | | | 01/03/2006 | |
| |
NOTES
| | |
| * | | The Russell Midcap ® Growth Index (“Russell Midcap ® Growth”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 28 | | Annual Report 2011 |
Transamerica Morgan Stanley Small Company Growth
(unaudited)
MARKET ENVIRONMENT
The end of 2010 saw renewed optimism in the equity market, as represented by Standard & Poor’s 500® Index, with the Federal Reserve Board’s second asset purchase program and improving economic data buoying stock prices. In March, the market retreated slightly due to political turmoil in the Middle East (which caused oil prices to rise) and a major natural disaster in Japan (which prompted fears of supply chain disruptions for the auto and electronics industries). Delays in approving an increase for the U.S. debt ceiling followed by the downgrade of U.S. bonds by credit rating agency Standard & Poor’s led to a major sell-off in the stock market in July and August. The European sovereign debt crisis also appeared to worsen during the period and its policy solutions continued to face significant political hurdles. Investors also began to fear that a double-dip recession was imminent in the developed world, although those concerns faded somewhat in October with positive surprises from some economic data in the U.S. and a well-received new debt management plan in the eurozone.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Morgan Stanley Small Company Growth Class I2 returned 5.71%. By comparison, its benchmark, the Russell 2000® Growth Index (“Russell 2000® Growth”), returned 9.84%.
STRATEGY REVIEW
The investment team looks for high-quality growth companies that they believe have these attributes: sustainable competitive advantages; business visibility; rising return on invested capital; free cash flow; and a favorable risk/reward profile. We find these companies through intense fundamental research. Our emphasis is on secular growth, and as a result short-term market events are not as meaningful in the stock selection process.
The fund underperformed the Russell 2000® Growth during the period. Stock selection in the consumer discretionary sector was the largest detractor from the fund’s performance relative to the benchmark. Positions in Chinese online retailer E-Commerce China Dangdang, Inc., a stock which is not represented in the benchmark, and in U.S. restaurant chain P.F. Chang’s China Bistro, Inc. were among the most detrimental to the fund’s performance. Stock selection in the financial services sector also dampened relative performance, with weakness from a holding in independent investment bank Greenhill & Co. Inc, (which is not represented in the benchmark). Stock selection and the fund’s overweight in the materials and processing sector impeded performance. A position in Lynas Corp., Ltd. (“Lynas”), a rare earth minerals miner, was the largest relative detractor in the sector and in the overall portfolio. (Lynas’ stock is also not represented in the benchmark.)
Areas of relative strength, however, included the technology sector, with positions in social networking service Twitter, Inc. and China’s online video web site Youku.com, Inc. contributing positively to performance. The energy sector was additive due to gains from crude oil producers Brigham Exploration Co. and Atlas Energy. (Atlas Energy is not represented in the benchmark.) The utilities sector — in which the fund held only three names, all of which performed well — also boosted relative results.
Dennis P. Lynch
David S. Cohen
Sam G. Chainani
Alexander T. Norton
Jason C. Yeung
Armistead B. Nash
Co-Portfolio Managers
Morgan Stanley Investment Management Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 29 | | Annual Report 2011 |
Transamerica Morgan Stanley Small Company Growth
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 5.71 | % | | | 1.46 | % | | | 4.88 | % | | | 11/08/2004 | |
Russell 2000® Growth * | | | 9.84 | % | | | 2.68 | % | | | 5.27 | % | | | 11/08/2004 | |
| |
NOTES
| | |
| * | | The Russell 2000® Growth Index (“Russell 2000® Growth”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in small- and medium-sized companies present additional risks such as increased volatility because their earnings are less predictable, their share price more volatile, and their securities less liquid than larger or more established companies. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 30 | | Annual Report 2011 |
Transamerica Neuberger Berman International
(unaudited)
MARKET ENVIRONMENT
International markets, as measured by the Morgan Stanley Capital International-Europe, Australasia, Far East Index (“MSCI-EAFE”), were down during the period. Declines were widespread with most countries and over half of sectors posting negative returns. Utilities and Financials were the largest underperformers with double digit declines. Energy and the traditionally defensive sectors - Consumer Staples, Healthcare and Telecom — outperformed. By country, unsurprisingly, Greece was the weakest market, down nearly sixty percent, followed by Austria, Italy and Portugal. New Zealand (a very small market), and Ireland, benefiting from credible structural changes, were the best performing markets. Norway, Australia, Switzerland and the United Kingdom also posted positive returns
PERFORMANCE
For the year ended October 31, 2011, Transamerica Neuberger Berman International Class I2 returned (3.80)%. By comparison its benchmark, the MSCI-EAFE, returned (3.64)%.
STRATEGY REVIEW
The fund declined slightly in the period of November 1, 2010 — October 31, 2011, performing in line with its benchmark, the MSCI-EAFE.
During the period Industrials and Telecom were solid contributors to relative returns, predominantly driven by strong stock performance. No exposure to Utilities as well as strong stock performance in Materials and Telecom also benefited the portfolio. Holdings in Consumer Staples, Energy and Financials detracted from performance. From a country perspective, strong relative stock performance in France, Spain (where we had one position) and Japan positively impacted the fund. Conversely, weak stock performance and an underweight position in Australia negatively impacted the fund. Exposure to emerging markets — China and Brazil — also negatively impacted the fund.
The sovereign debt situation in Europe is likely to remain the key issue for investors for some time. The Greek economy is unable to cope with government debt at its current level. The question is whether policy makers can control contagion to Italy and other countries where public debt is also excessive. Until the markets have a sense for how the challenges can be resolved — and any solution is likely to involve a contractionary combination of higher taxes and reduced government spending — equity prices are likely to remain volatile.
At the same time, investors are concerned about the possibility that Chinese growth will slow significantly. The Chinese government is struggling to cope with increasing inflation (most clearly evident in property prices and wages), a managed exchange rate, and a banking system that could be accumulating bad debts. With economic growth clearly under pressure in the U.S. and Europe, deterioration in China’s growth prospects could significantly undermine global GDP forecasts.
Accordingly, we have positioned the portfolio relatively defensively, focusing on companies able to perform in tougher economic times. In Europe our focus is on countries outside the Euro area — such as Switzerland, Norway and Denmark — as well as on companies which derive a large portion of their revenues from North America and Emerging Markets. Where we maintain exposure to continental European consumers, it is via companies with stable demand characteristics, such as retail food, telecommunications, and healthcare.
From a sector perspective, we are modestly overweight Materials, where we have particular exposure to precious metals and agriculture as well as specialty chemical companies with pricing power and relatively stable end markets. We are also modestly overweight telecoms, where increased smartphone penetration should drive average revenue per user. The focus of our holdings in consumer discretionary is pay TV, contract catering and professional publishers — where we believe demand to be less sensitive to overall economic conditions. In technology, where we are neutral weighted, we are focused on telecom equipment providers as well as software businesses recurring revenue streams.
Our largest underweight continues to be Financials — especially Financials with balance sheet exposure to the eurozone. We find select opportunities in the Nordic region and in emerging markets; we also hold financial companies with fee related income streams such as insurance brokerage and exchanges. Lastly, we remain underweight Utilities in favor of telecoms — where demand is similarly stable, but growth is superior and the risk of government regulation is less.
Benjamin Segal, CFA
Portfolio Manager
Neuberger Berman Management LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 31 | | Annual Report 2011 |
Transamerica Neuberger Berman International
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | (3.80 | )% | | | (2.37 | )% | | | 0.72 | % | | | 12/06/2005 | |
| MSCI-EAFE* | | | (3.64 | )% | | | (1.95 | )% | | | 1.74 | % | | | 12/06/2005 | |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International — Europe, Australasia, and Far East Index (“MSCI-EAFE”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. Investments in developing markets involve greater risks than investments in developed markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 32 | | Annual Report 2011 |
Transamerica Oppenheimer Developing Markets
(unaudited)
MARKET ENVIRONMENT
During the fall of 2010, encouraging data from the U.S. labor market, including a declining unemployment rate, seemed to indicate that the long-awaited revival of consumer and business confidence was at hand. The global economy also appeared to provide reasons for an upbeat outlook. In Europe, policymakers continued to take measures to contain the sovereign debt problems of peripheral Europe and, in February, strong corporate earnings led to an upward revision of the European Central Bank’s 2011 growth forecast. Fears that had surfaced in 2010 over rising inflationary pressures in the fast-growing emerging markets lessened to a degree as 2011 began.
International uncertainty worsened as it became clearer that Greece was probably headed for default and other members of the European Union continued to struggle with heavy debt burdens, leading to worries over the health of the European banking system. Indeed, market turbulence throughout the world was particularly severe over the final three months of the reporting period, as investors grew more worried about a possible return to recession in the United States and Europe. The markets also grew concerned that a double-dip recession in the developed markets could also mean an eventual slowdown in growth in the emerging markets.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Oppenheimer Developing Markets Class I2 returned (7.77)%. By comparison, its benchmark the Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”), returned (7.44)%.
STRATEGY REVIEW
Top Individual Contributors
Among the top contributors to performance were Mexican beverage company Fomento Economico Mexicano SAB de CV (“FEMSA”), High Tech Computer Corp. (“HTC”), and NovaTek OAO. On a country basis, Mexico, Russia and South Korea were top contributors to performance for the fund. FEMSA was a top five holding of the fund at period end. It owns and operates OXXO, the largest convenience store chain in Latin America. It controls Coca-Cola FEMSA, one of the largest independent Coca-Cola bottlers in the world. FEMSA’s profits grew at a healthy rate as modern retail formats continued to gain popularity in Mexico. In information technology, HTC was the top performer for the fund. HTC, the Taiwanese manufacturer of the Android phone, continued to perform well this period, as demand for Android phones and other HTC products remained strong. Outside of consumer staples and information technology, energy holding NovaTek OAO was a top performer for the fund. Novatek is a Russian-based natural gas producer, which benefited over the first quarter of 2011 as the market anticipated a substantial ramp-up in production over the coming years, matched by a sharp rise in profitability.
Top Individual Detractors
The fund’s top performance detractor was consumer staples holding Carlsberg AS. Carlsberg is a Denmark-based company active within the brewing industry. The company reduced its full year outlook in August and subsequently experienced significant losses to close the period. Information technology stock Infosys Ltd. detracted from fund performance. Consumer discretionary holding B2W Cia Global Do Varejo did not perform well for the fund. Its stock declined on market fears that growing competition of other online sites might weaken the company’s growth prospects and eat into profits. Enka Insaat ve Sanayi AS, the Turkish industrial giant, saw its stock decline during the period as it reported below market expectation. Its stock also lost value towards the end of the reporting period amid the volatility in the equity markets, which led to overall sell-offs of many emerging market securities. On a country basis, laggards included India, Brazil, Turkey and Egypt.
Justin Leverenz, CFA
Portfolio Manager
OppenheimerFunds, Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 33 | | Annual Report 2011 |
Transamerica Oppenheimer Developing Markets
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | (7.77 | )% | | | 9.22 | % | | | 10.28 | % | | | 12/06/2005 | |
| MSCI-EMI * | | | (7.44 | )% | | | 6.83 | % | | | 9.30 | % | | | 12/06/2005 | |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in emerging and developing markets involves special considerations. These may include risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
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| Transamerica Funds | | Page 34 | | Annual Report 2011 |
Transamerica Oppenheimer Small- & Mid-Cap Value
(unaudited)
MARKET ENVIRONMENT
A number of dramatic global events resulted in increased market volatility this period. As a result, equities across the globe generally significantly declined over the second half of the period, while historically defensive securities, particularly higher-quality fixed-income products, generally performed better. Behind the backdrop of a credit rating downgrade of the U.S., rising uncertainty over the pace of global growth, and intensification of the European sovereign debt crisis, stocks posted their weakest performing quarter since 2008 in the third quarter of 2011.
Market concerns resurfaced over the second quarter of 2011 when Greece again teetered on the brink of defaulting on its sovereign debt, rekindling worries from 2010 that fiscal instability might spread to other parts of Europe. Concerns over the economic problems in European countries such as Italy and Spain intensified. At the same time, the Federal Reserve Board’s (“Fed”) latest round of quantitative easing measures labeled “QE2” officially ended on June 30th, adding to questions around what the Fed’s next move might be to help stimulate the U.S. economy. These developments, in addition to persistently high levels of U.S. unemployment and a depressed U.S. housing market, contributed to a weaker-than-expected estimate of U.S. gross domestic product (“GDP”).
PERFORMANCE
For the year ended October 31, 2011, Transamerica Oppenheimer Small- & Mid-Cap Value Class I2 returned 2.39%. By comparison, its benchmark, the Russell 2500® Value Index (“Russell 2500® Value”), returned 4.49%.
STRATEGY REVIEW
During the 12-month period ended October 31, 2011, the portfolio underperformed its benchmark, the Russell 2500® Value. The portfolio underperformed the benchmark primarily due to stock selection in energy and financials. The portfolio outperformed versus the benchmark primarily in information technology.
Top Individual Contributors
Agilent Technologies, Inc., a maker of electronic test and measurement products, was a top performer for the fund. The company reported strong profits based on higher demand for its products, and issued an upbeat forecast, topping analyst expectations. Managed health care holding Humana, Inc. (“Humana”) was another top performing stock for the portfolio located within the health care sector. As fears over the new health care overhaul abated to a degree, the market generally responded more positively to health care stocks. Humana also raised its 2011 forecast and reported earnings that beat Wall Street expectations. Within energy, natural gas producer EQT Corp. had a stellar reporting period. The company reported very healthy profits — for instance, its second quarter profit represented an increase of 192.5% from a year prior and also reported higher third quarter profits.
Top Individual Detractors
Within health care, pharmaceutical company Hospira, Inc. saw significant stock declines after announcing in late October that it had swung to a third quarter loss and had lowered its outlook. In consumer discretionary, the weakening U.S. economy and pessimistic American consumer adversely affected the stock performance of apparel retailer Talbots, Inc. Cablevision Systems Corp. — Class A, also was a detractor to portfolio performance within consumer discretionary. Cablevision Systems Corp. missed analyst forecasts and saw declines in its video subscribership. The stock also was driven lower after a spinoff of former subdivision AMC in July, which gave Cablevision shareholders one AMC share for every four Cablevision shares. At period end, the portfolio had its greatest overweight positions relative to the benchmark in the consumer staples, energy, and health care sectors. The portfolio had its most substantial underweight positions in financials and industrials.
John Damian
Portfolio Manager
OppenheimerFunds, Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 35 | | Annual Report 2011 |
Transamerica Oppenheimer Small- & Mid-Cap Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| Class I2 (NAV) | | | 2.39 | % | | | (0.65 | )% | | | 1.09 | % | | | 08/01/2006 | |
| Russell 2500® Value * | | | 4.49 | % | | | (0.01 | )% | | | 1.72 | % | | | 08/01/2006 | |
| |
NOTES
| | |
| * | | The Russell 2500® Value Index (“Russell 2500® Value”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in small- and medium-sized companies present additional risks such as increased volatility because their earnings are less predictable, their share price more volatile, and their securities less liquid than larger or more established companies. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 36 | | Annual Report 2011 |
Transamerica PIMCO Real Return TIPS
(unaudited)
MARKET ENVIRONMENT
During the last months of 2010, policy initiatives were the major market drivers. On the monetary front, the Federal Reserve Board (“Fed”) continued its unconventional efforts to spur faster growth, launching a second round of quantitative easing in November. On the fiscal policy front, in December, the Obama administration and Congress reached a major compromise on tax policy that included a cut in payroll taxes, an extension of unemployment benefits and a tax credit for business capital expenditures.
Signs of economic strength as well as market reaction to expanded fiscal and monetary stimulus drove yields higher during the first quarter of 2011. Treasury yields fell during the second quarter as the earthquake in Japan, political unrest in the Middle East and North Africa, and the sovereign debt crisis in the Eurozone all helped spark a flight to quality and boosted demand for Treasuries.
The third quarter of 2011 was marked by unprecedented market volatility. A flight to safety due to economic instability in the U.S. and Eurozone led to a significant decline in Treasury yields. Despite the passage of legislation raising the U.S. debt ceiling, Standard & Poor’s ratings services lowered its long-term sovereign credit rating on the U.S. to AA+ with a negative rating outlook. Equity markets followed with the most volatile week of trading in history. In its September meeting, the Fed left the federal funds rate at the zero lower bound and, in an effort to reinvigorate the faltering economy, announced its implementation of “Operation Twist.” In this program, the Fed will purchase $400 billion of long-dated Treasuries, defined as Treasury securities with remaining maturities of 6 to 30 years, by the end of June 2012. U.S. gross domestic product grew at a 2.5 percent inflation-adjusted annual rate during the third quarter, the strongest performance in a year, after growing at a 1.3 percent rate in the second quarter. However, continued turmoil in the Eurozone, highlighted by uncertainties over a Greek debt restructuring package and the widening of Spanish and Italian sovereign spreads, contributed to continued market fears and volatility.
PERFORMANCE
For the year ended October 31, 2011, Transamerica PIMCO Real Return TIPS Class I2 returned 6.23%. By comparison, its benchmark, the Barclays Capital Global Real U.S. Treasury Inflation Protected Securities Index, returned 9.01%.
STRATEGY REVIEW
Exposure to non-U.S. developed nominal interest rates, particularly core Europe, added to performance as rates fell on fears of a global economic slowdown. An overweight to U.S. nominal yields was also positive for performance as nominal yields fell. However, an underweight to U.S. TIPS was negative for performance as real yields rallied.
On the spread sector front, exposure to bonds of financial companies was negative for returns, as they lagged the broader corporate market in 2011 amid negative sentiment following bank downgrades and investor concerns about contagion related to European sovereign risk. Exposure to a select basket of emerging market currencies also detracted from performance as the U.S. dollar appreciated against most currencies. A modest allocation to senior commercial mortgage-backed securities and senior non-agency mortgages added to returns as these securities outperformed like-duration Treasuries during the year.
Mihir Worah
Portfolio Manager
Pacific Investment Management Company LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 37 | | Annual Report 2011 |
Transamerica PIMCO Real Return TIPS
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 6.23 | % | | | 7.63 | % | | | 6.27 | % | | | 11/08/2004 | |
| Barclays Capital Global Real U.S. TIPS* | | | 9.01 | % | | | 7.54 | % | | | 6.31 | % | | | 11/08/2004 | |
| |
NOTES
| | |
| * | | The Barclays Capital Global Real U.S. Treasury Inflation Protected Securities Index (“Barclays Capital Global Real U.S. TIPS”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursement by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
This fund invests in inflation-indexed bonds of varying maturities. It may invest in non-U.S. securities. The fund may also invest in mortgage related securities as well as a portion in high-yield securities. Inflation-indexed bonds issued by the U.S. Government, known as TIPS, are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation, which will affect the interest payable on them. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and polices of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 38 | | Annual Report 2011 |
Transamerica PIMCO Total Return
(unaudited)
MARKET ENVIRONMENT
During the last months of 2010, policy initiatives were the major market drivers. On the monetary front, the Federal Reserve Board (“Fed”) continued its unconventional efforts to spur faster growth, launching a second round of quantitative easing in November. On the fiscal policy front, in December the Obama administration and Congress reached a major compromise on tax policy that included a cut in payroll taxes, an extension of unemployment benefits and a tax credit for business capital expenditures.
Signs of economic strength as well as market reaction to expanded fiscal and monetary stimulus drove yields higher during the first quarter of 2011. Treasury yields fell during the second quarter as the earthquake in Japan, political unrest in the Middle East and North Africa, and the sovereign debt crisis in the Eurozone, all helped spark a flight to quality and boosted demand for Treasuries.
The third quarter of 2011 was marked by unprecedented market volatility. A flight to safety due to economic instability in the U.S. and Eurozone led to a significant decline in Treasury yields. Despite the passage of legislation raising the U.S. debt ceiling, Standard & Poor’s ratings services lowered its long-term sovereign credit rating on the U.S. to AA+ with a negative rating outlook. Equity markets followed with the most volatile week of trading in history. In its September meeting, the Fed left the federal funds rate at the zero lower bound and, in an effort to reinvigorate the faltering economy, announced its implementation of “Operation Twist.” In this program, the Fed will purchase $400 billion of long-dated Treasuries, defined as Treasury securities with remaining maturities of 6 to 30 years, by the end of June 2012. U.S. gross domestic product grew at a 2.5 percent inflation-adjusted annual rate during the third quarter, the strongest performance in a year, after growing at a 1.3 percent rate in the second quarter. However, continued turmoil in the Eurozone, highlighted by uncertainties over a Greek debt restructuring package and the widening of Spanish and Italian sovereign spreads, contributed to continued market fears and volatility.
PERFORMANCE
For the year ended October 31, 2011, Transamerica PIMCO Total Return Class I2 returned 2.45%. By comparison, its benchmark, the Barclays Capital U.S. Aggregate Bond Index, returned 5.00%.
STRATEGY REVIEW
Transamerica PIMCO Total Return’s portfolio underperformed the benchmark for the fiscal year ending October 31, 2011. An underweight to U.S. duration for most of the period, particularly the long-end of the yield curve, detracted from performance as interest rates fell across the curve. Conversely, exposure to non-U.S. developed interest rates, particularly core Europe, Canada, and Australia, added to performance as rates fell on fears of a global economic slowdown. On the spread sector front, an overweight to bonds of financial companies was negative for returns, as they lagged the broader corporate market amid negative sentiment following bank downgrades and investor concerns about contagion related to European sovereign risk. Tactical positioning in Agency mortgage-backed securities was also negative for performance, as was exposure to non-agency mortgages, as both sectors underperformed like-duration Treasuries. Exposure to emerging market local debt, particularly Brazil and Mexico, added to performance as rates fell sharply in these countries. In addition, exposure to Build America Bonds also added to returns as technical factors improved, causing spreads to narrow.
Chris P. Dialynas
Portfolio Manager
Pacific Investment Management Company LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 39 | | Annual Report 2011 |
Transamerica PIMCO Total Return
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 2.45 | % | | | 7.36 | % | | | 7.07 | % | | | 11/15/2005 | |
| Barclays Capital U.S. Aggregate Bond* | | | 5.00 | % | | | 6.41 | % | | | 6.25 | % | | | 11/15/2005 | |
| |
NOTES
| | |
| * | | The Barclays Capital U.S Aggregate Bond Index (“Barclays Capital U.S. Aggregate Bond”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expenses reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
This fund will normally invest its assets in a diversified portfolio of fixed-income securities. The fund may invest in non-U.S. securities and may invest a portion of its assets in high-yield securities. Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be enhanced when investing in emerging markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 40 | | Annual Report 2011 |
Transamerica Schroders International Small Cap
(unaudited)
MARKET ENVIRONMENT
Despite a significant correction in the final quarter of the fiscal year, international small cap equities were only modestly down over the twelve month period and outperformed their larger peers. The 2.01% decline in the S&P Euro Pacific SmallCap Index compares with a 3.2% decline in the Standard & Poor’s Large/Midcap EuroPacific Index.
Investor sentiment was buoyed in the first half of the year by the confirmation of further quantitative easing by the US Federal Reserve Board in November and the accompanying fiscal package. Strains in the Euro were somewhat quiescent as investors anticipated a healthy recovery in developed economies in line with improvements in leading indicators. However, the mood changed in the second half amid slowing global growth, continued inflationary pressures and credit tightening in a number of developing markets, and a re-emergence of the Greek (and peripheral European market) debt problems.
In terms of regional divergences, Japan has been the best performing market, and also where outperformance by smaller companies was most marked. Small caps underperformed in other regions, and in absolute term the continental European markets offered the weakest returns. In sector terms, consumer staples, utilities and materials were the only sectors that offered positive returns, while financials and information technology were the laggards.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Schroders International Small Cap Class I2 returned (5.39)%. By comparison, its benchmark, the S&P SmallCap EuroPacific Index, returned (2.01)%.
STRATEGY REVIEW
The market environment has been a difficult one for the relative performance of the fund’s portfolio. Regional allocation has been a negative factor due to the underweighting of Japan, which performed relatively well due to the strength of the yen and anticipation of the impact of the fiscal packages that have been announced in the wake of the March earthquake and tsunami in the Tohoku region. There was also a negative impact from our two Canadian holdings, Sino-Forest and Niko Resources, Ltd., as well as from selection in continental Europe, primarily in the materials, energy and consumer cyclical sectors.
Some offset was provided by stock selection in the United Kingdom (“UK”) and in the Pacific ex Japan region. In the UK, the key contributors were in the consumer cyclical (Eaga, a services group taken over in the period, Bovis Homes Group PLC and Dignity PLC) and industrial (Hamworthy PLC, specialist marine engineering) sectors, while in Pacific ex Japan materials stocks were the main contributor (most notably lluka Resources, Ltd., an Australian producer of mineral sands), along with smaller contributions from utilities and information technology.
Our focus remains upon identifying companies offering sustainable and relatively visible long-term growth prospects, with sound balance sheets and strong management. These are present across a wide range of regions and sectors, and the portfolio continues to exhibit a high degree of diversification. Regional positioning has remained fairly stable over the year, although we have added modestly to the Pacific ex Japan and Emerging market exposures at the expense of Europe. In sector terms, we added to consumer cyclicals, health care and financials (although the latter remains our biggest under weighting versus the benchmark) while reducing industrials and information technology.
Matthew Dobbs
Portfolio Manager
Schroder Investment Management North America Inc.
| | | | |
| | | | | |
| Transamerica Funds | | Page 41 | | Annual Report 2011 |
Transamerica Schroders International Small Cap
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Fund | | | Inception Date | |
| Class I2 (NAV) | | | (5.39 | )% | | | (1.82 | )% | | | 03/01/2008 | |
| S&P SmallCap EPAC* | | | (2.01 | )% | | | (3.08 | )% | | | 03/01/2008 | |
| |
NOTES
| | |
| * | | The S&P SmallCap EuroPacific Index (“S&P SmallCap EPAC”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. Investing in small size companies involves greater risk than is customarily associated with more established companies. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 42 | | Annual Report 2011 |
Transamerica Third Avenue Value
(unaudited)
MARKET ENVIRONMENT
The fiscal year ended October 31, 2011 was marked by volatility caused by the confluence of three major macro issues. The first was the United States economy, dogged by persistently high unemployment and low levels of economic growth than we typically see during post-recession years. The second issue was Euro zone sovereign debt, with Greece and Italy spending most of the year seemingly on the precipice of default. The third issue was Asia, specifically China. China’s government has been attempting to control inflation, particularly in its residential real estate markets. As China has tightened its fiscal policies, some investors have fled the region, fearing that lower growth in China will hurt growth throughout the region and in emerging markets generally.
Markets held up generally well during a 12 month period marked by dramatic events. We also saw the clean-up of BP’s oil spill in the Gulf of Mexico, several dictatorships toppled in the Middle East, through both the Arab Spring uprisings and a North Atlantic Treaty Organization campaign in Libya, and the March earthquake in Japan. The Russell 3000® Value Index was up 5.94% for the year while the Morgan Stanley Capital International World Index was up 2.30%. The fund, owing mostly to its overweighting of securities in Hong Kong and South Korea, was down 1.87% for the period.
Overall, our portfolio companies performed well operationally and in some cases were quite dramatically rewarded for it in the market. In other areas, where macro concerns have taken precedence, stock price performance and operational performance have diverged. As a result, we believe the portfolio has substantial embedded value that the market will eventually recognize.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Third Avenue Value Class I2 returned (1.87)%. By comparison, its primary and secondary benchmarks, the Russell 3000® Value Index and the Morgan Stanley Capital International World Index, returned 5.94% and 2.30%, respectively.
STRATEGY REVIEW
Transamerica Third Avenue Value employs a disciplined, fundamental value approach to stock selection, seeking to invest in well-managed, well-capitalized companies trading at a discount to our conservative estimate of net asset value. Transamerica Third Avenue Value is a globally diversified, concentrated portfolio of our highest conviction investment ideas.
Over the last year, the largest detractors from performance were our investments in Hong Kong real estate and investment holding companies. Henderson Land Development Co., Ltd. was the biggest detractor. Henderson delivered strong operating results this year and we believe that it has a business that is far more diverse than the market gives it credit for.
The increased volatility at the end of the fiscal year allowed us to add several new positions to the portfolio. We invested in Pargesa Holdings SA (Bearer Shares), a Swiss holding company that owns large stakes in blue chip infrastructure and energy companies worldwide. By owning the undervalued Pargesa, we are able to more cheaply invest in companies like Total S.A., Imerys S.A. and Lafarge Group, which have good fundamental business prospects but trade at premiums if you buy them directly.
We also added a stake in Lowe’s Cos., Inc., a U.S.-based home goods and improvement company. It is our view that Lowe’s is one of only a handful of retailers with an ultra-strong financial position and a durable competitive position. Lowe’s has a net debt-to-asset ratio below 15%, owns approximately 90% of its store base, and generates nearly $3 billion of cash flow each year. Further, Lowe’s maintains a duopoly position in the home improvement market alongside Home Depot. The two companies account for about 27% of home improvement spending in the United States and dominate the retail channel with approximately 60% market share.
We also invested in Segro PLC, a United Kingdom (“UK”)-based real estate investment trust that owns more than 60 million square feet of industrial properties, approximately two-thirds of which is located in the UK. Segro has a dominant position in London’s key industrial sub-markets of Heathrow, Royal Park, and Slough Estate. The remaining one-third is located in Europe, primarily in Germany, France, and Poland. The stock price seems even more attractive considering the company’s in-place cash flow is depressed, with more than 13% of the portfolio currently vacant. Segro’s management team expects to be able to lease out the vacant space. As the cash flows increase from this leasing activity, and macro concerns subside, Segro Common should trade back in-line with net asset value.
During the year we exited several positions including Cimarex (top contributor for the year, sold after stock price appreciated above intrinsic value), St. Joe (sold after a change in its management team), Electro Scientific Industries (sold after stock price appreciation) and Wilmington Trust, and for portfolio management considerations, MDC Holdings.
Yang Lie
Curtis R. Jensen
Kathleen K. Crawford
Co-Portfolio Managers
Third Avenue Management LLC
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| Transamerica Funds | | Page 43 | | Annual Report 2011 |
Transamerica Third Avenue Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Fund | | | Inception Date | |
| Class I2 (NAV) | | | (1.87 | )% | | | (5.15 | )% | | | 05/01/2007 | |
Russell 3000® Value * | | | 5.94 | % | | | (4.22 | )% | | | 05/01/2007 | |
| MSCI World* | | | 2.30 | % | | | (2.97 | )% | | | 05/01/2007 | |
| |
NOTES
| | |
| * | | The Russell 3000® Value Index (“Russell 3000® Value”) and the Morgan Stanley Capital International World Index (“MSCI World”) are unmanaged indices used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Growth stocks can be volatile and experience sharp price declines and certain types of stocks, especially technology, can be extremely volatile and subject to greater price swings than the broader market. Value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that an undervalued stock is actually appropriately priced. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 44 | | Annual Report 2011 |
Transamerica Thornburg International Value
(unaudited)
MARKET ENVIRONMENT
Market conditions for the annual reporting period November 1, 2010 through October 31, 2011 were challenging; myriad events had a volatile effect on equity markets worldwide. The sovereign debt crisis in the Eurozone exerted pressure on most developed markets; the Japanese earthquake in the first quarter of 2011 put a strain on the manufacturing and supply chain of industries around the world; unrest in the Middle East and North Africa caused major swings in oil prices; and the recession and political wrangling over the debt situation in the U.S. allowed fear to once again infect investors’ psyches. While the economic recovery around the globe has been fragile, positive economic news, including solid corporate earnings, strong cash flows, and an easing of commodity pricing pressures continues to trickle out and has helped stave off further deterioration of economic conditions. However, it is still unclear when or if the global economy will return to “normal”.
The European situation has weighed the most on global equity markets during the annual reporting period. Most imminently, the Greek situation has not yet been resolved. This dynamic poses risks to peripheral sovereign countries such as Italy and Spain who may not be able to refinance existing debt at reasonable rates; and healthier European countries including Germany, France and the Nordics who must sell any resolution to their respective constituencies. Confidence is ebbing and flowing with each comment made by the European Central Bank and various European leaders — resulting in uncertainty that we expect will be resolved over time, but not without continued austerity initiatives and a long road ahead. Also of concern is the slowdown in emerging market growth, particularly in China, where the government is taking steps to cool the robust economic growth of the past several years. The move has had a negative ripple effect on numerous industries and markets around the world, dampening growth for Chinese companies as well as foreign companies that serve the Chinese market.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Thornburg International Value Class I2 returned (6.31)%. By comparison, its benchmark the Morgan Stanley Capital International All Country World Index ex-U.S. (“MSCI ACWI ex-US”), returned (4.25)%.
STRATEGY REVIEW
The portfolio is built from the bottom up, with stocks selected one at a time, based on the fundamentals of individual companies. The portfolio modestly underperformed relative to the MSCI ACWI ex-US during the period, largely due to stock selection in the financials sector.
Stock selection drove the positive relative performance within the consumer discretionary and information technology sectors. On a country basis, top contributors to relative return were Germany and Japan. British American Tobacco PLC and Volkswagen AG were the portfolio’s top contributors to return for the annual period. British American Tobacco PLC was helped by its strong results, particularly in the third quarter of 2011, reflecting the resilience of its business model and market share gains. Volkswagen continued to gain market share—partially at the expense of interrupted operations at their Japanese counterparts—and to benefit from increased demand in developing markets such as China.
Stock selection was the primary driver of negative relative performance in the financials and health care sectors. Leading country detractors were China and Switzerland. Sovereign debt issues plagued BNP Paribas SA and Deutsche Bank, the two worst detractors from performance. Questions about the companies’ capital adequacy arose as access to short-term dollar funding markets became constrained for European banks, and uncertainty regarding the fate of the banks’ Greek and Italian sovereign holdings became more apparent.
For the year ended 10/31/11, the derivative positions of the fund, which were limited to currency forward contracts, were slightly beneficial to performance.
William V. Fries, CFA
Wendy Trevisani
Lei Wang, CFA
Co-Portfolio Managers
Thornburg Investment Management, Inc.
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| Transamerica Funds | | Page 45 | | Annual Report 2011 |
Transamerica Thornburg International Value
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | Life of Fund | | Inception Date |
| Class I2 (NAV) | | | (6.31 | )% | | | 1.81 | % | | 09/15/2008 |
| MSCI ACWI ex-US* | | | (4.25 | )% | | | 2.21 | % | | 09/15/2008 |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International All Country World ex-U.S. Index (“MSCI ACWI ex-US”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investments in global/international markets involve risks not associated with U.S. markets, such as currency fluctuations, adverse social and political developments, and the relatively small size and lesser liquidity of the markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 46 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
(unaudited)
MARKET ENVIRONMENT
Merger arbitrage is a sub-set of a broader event-driven strategy, which seeks to profit from investing in securities that are involved in a broad range of corporate events such as mergers and acquisitions. Typically a low volatility strategy pursued by absolute-return-minded investors, our goal is to capture a return stream having a low correlation to the overall markets.
The prior six months were anything but “low vol” for most event-driven managers. From the first hints of increased volatility in May, to the difficult markets in August and September, to the subsequent rally in October, volatility was the norm during this period. Many arbitrageurs and event-driven managers who found themselves with either too much leverage or risk in their portfolios disappointed their investors.
As background, most event-driven managers enjoyed forgiving markets and plentiful corporate events for the 12-18 months prior to May 1, 2011 — a date coinciding with the Transamerica Water Island Arbitrage Strategy launch. During this 12-18 month period and amidst largely positive and buoyant stock and bond markets, risk-taking, leverage, and concentrated bets on the outcomes of corporate events were typically rewarded. Beginning in the spring of 2011; however, many event-driven portfolios began to deteriorate on the back of faltering markets, as investors began to question the financial leverage, optimistic valuations, and credit availability underlying more speculative situations. As is typical during periods of market stress, exposure to non-definitive, non-strategic merger situations can lead to losses — particularly for those investors that employ substantial leverage. The key to success during such periods is to be positioned to take advantage of this distress through selective investing, while maintaining an opportunistic stance with regard to risk-taking.
For example, investors in the high-profile, speculative deal surrounding auto rental firm Dollar Thrifty saw their investment tumble close to 30% from early June to early August when one of two suitors, Avis, abandoned their interests in Dollar Thrifty in favor of another acquisition target. With rival Hertz as the sole remaining bidder for an asset with significant exposure to a deteriorating economy, shareholders fled in droves. Deutsche Boerse’s pursuit of New York Stock Exchange Euronext also cost investors who were speculating on a smooth regulatory process in Europe. Telegraphing their intent to closely scrutinize the deal earlier this summer, the tougher European Union Competition Bureau stance sent the shares of both companies tumbling in reaction to the regulatory delays, coupled with plunging markets both at home and abroad. The spread — or difference between deal value and the target’s shares—widened considerably during this period. And finally, the hostile bid by News Corp. for the shares of British Sky Broadcasting ended poorly for shareholders when the Murdoch clan was forced to abandon the bid due to legal woes stemming from the phone hacking scandals that enveloped their company in late June.
Looking ahead: while low interest rates continue to pressure spreads, we believe the long-term specter of rising short-term interest rates will eventually become a tailwind for our strategy. Additionally, global merger & acquisition (“M&A”) activity continues to build a base off the 2008-2009 lows and we believe global M&A to be in the early innings of a multi-year uptrend.
PERFORMANCE
For the period from inception May 1, 2011 through October 31, 2011, Transamerica Water Island Arbitrage Strategy Class I2 returned 2.50%. By comparison, its benchmark, Bank of America Merrill Lynch 3-Month USD LIBOR Index, returned 0.15%.
STRATEGY REVIEW
In our view, high-profile deals involving non-definitive situations with numerous hurdles to closure can be successful in a bull market; however, these situations can be devastating in a down market and cannot be considered templates for long-term success in merger arbitrage. The fund was positioned accordingly and generated a positive return of 2.50% for the six months ending October 31, 2011.
Our discipline focuses on building a diversified global portfolio of deals, each having a sound strategic rationale across all sectors, market capitalizations and jurisdictions. We seek to hedge our portfolio, usually on a deal by deal basis, with the use of options, short selling, and currency forwards (when investing overseas to achieve a dollar-neutral portfolio). We also invest in swaps to gain exposure to certain foreign securities in a tax efficient manner. The derivatives we utilize, and the exposure to such, therefore must be viewed as a tool we employ to engage in our overall global merger arbitrage strategy seeking low volatility and low correlation to the capital markets. We do not utilize derivatives on a stand-alone basis apart from this overall context. We are pleased to report that our derivatives exposure performed as expected and provided needed downside protection with a modest contribution to returns during the period.
During the critical months of August and September, when deal spreads widened as market participants panicked and forced sellers emerged, we rotated cash into strategic deals with attractive return opportunities. Examples of target companies we added to during this time included Cephalon, BJ’s Wholesale Club, Progress Energy, Inc., Kinetic Concepts, Inc., and Foster’s Group.
Positions in the portfolio exhibiting the largest negative impact to returns were Medco Health Solutions, Inc. (“MHS”) and Advanced Analogic Technologies, Inc. (“AATI”). In the case of the former, fears of regulatory pushback on the merger of MHS with its largest competitor in the pharmacy benefit management sector, Express Scripts, sent the spread out on this $29 billion transaction to abnormally wide levels. AATI’s deal to be bought by Skyworks Solutions for close to $400 million suffered a significant setback when Skyworks suffered “buyer’s remorse” and attempted to back out of the transaction. That dispute has yet to be settled.
The portfolio invests globally, vetting the most attractive transactions on a risk/reward basis with a focus on high-quality strategic transactions. Our portfolio will typically reflect the deal landscape at any one time, with a majority of the assets invested in North America. More recently, the strong level of activity in the commodities sector has tilted the portfolio towards those jurisdictions with exposure to precious and industrial metals, oil, and coal assets such as the African continent, Australia, Canada, and South America. Activity in Europe has been more recently subdued — not unexpected given the debt concerns impacting that region. Asia and North America continue to be the largest drivers of merger activity worldwide, and the largest contributors towards the portfolio’s gains as well.
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| Transamerica Funds | | Page 47 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy (continued)
(unaudited)
The portfolio’s performance during the period was buttressed by the presence of a few merger deals that witnessed improved terms. Macarthur Coal, Ltd. (Australia) received a sweetened bid from Peabody Coal (US) following Peabody’s second attempt in two years to acquire the reserve-rich coal company. On the other side of the globe, NY-based Transatlantic Holdings resisted two competing bids to its agreed-upon deal with Allied World Assurance, a competitor in the insurance sector. The fund profited when it sold its position as the shares moved higher in response to the unsolicited competing bids. In Canada, semiconductor technology provider Zarlink Semiconductor saw its shares — and the fund’s profits — rise after holding out for a higher price from its unsolicited suitor Microsemi Corporation. The final price to shareholders rose 18% from the original hostile bid.
The fund’s performance was impacted positively across a number of sectors, which reflects the portfolio’s wide diversification. We believe the commodities, energy/natural resources, healthcare, and technology sectors will continue to enjoy strong consolidation trends across the globe. China’s seemingly unending appetite for raw materials, coupled with the growth in emerging markets such as India, Brazil, and Turkey, is providing our team with exciting opportunities to invest throughout the globe.
John S. Orrico, CFA
Todd W. Munn Roger
P. Foltynowicz
Co-Portfolio Managers
Water Island Capital, LLC
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| Transamerica Funds | | Page 48 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
(unaudited)
Average Annual Total Return for Period Ended 10/31/2011
| | | | | | | | | |
| | | 10 Years or | | | | |
| | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 2.50 | % | | | 05/01/2011 | |
| BofAML US Dollar Libor 3-Month* | | | 0.15 | % | | | 05/01/2011 | |
| |
NOTES
| | |
| * | | Bank of America Merrill Lynch 3-Month USD LIBOR Index (“BofAML US Dollar Libor 3-Month”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Securities purchased for an arbitrage strategy are intended to take advantage of a perceived relationship between the value of two securities and may not perform as expected. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 49 | | Annual Report 2011 |
Transamerica WMC Emerging Markets
(unaudited)
MARKET ENVIRONMENT
Emerging markets declined during the one-year period ending October 31, 2011. After posting gains early in the period, emerging market equities fell significantly in August and September as fallout from the sovereign debt crisis in Europe, fears of slowing global economic growth, and concerns about the banking system and policy framework in China weighed on markets. All three regions — Latin America, Europe, the Middle East, and Africa (“EMEA”) and Asia — fell during the period. Within Latin America, Brazil fell on continued concerns over building inflationary pressures in the country and the potential impact of decelerating world economic growth on exports. Chile also declined as slowing global growth pressured industrial metals prices and the equity markets of commodity exporting countries. Within EMEA, Hungary posted the largest decline in the Index as slowing growth and an appreciating Swiss franc have negatively impacted household borrowers with Swiss franc-denominated mortgages. The government was forced to step in with proposed policies that would help borrowers, with banks accepting the losses. Within Asia, China fell as inflation continued to climb, raising prospects for additional policy tightening. Despite these economic headwinds, markets rallied in October to end the period as a potential solution to sovereign debt troubles in Europe and signs that the Chinese government will adopt a more accommodative policy stance increased investors’ risk appetites.
PERFORMANCE
For the year ended October 31, 2011, Transamerica WMC Emerging Markets Class I2 returned (13.03)%. By comparison, its benchmark the Morgan Stanley Capital International Emerging Markets Index, returned (7.44)%.
STRATEGY REVIEW
The fund’s approach draws on the research insights of the fund’s dedicated portfolio manager and team analysts, as well as the work of Wellington Management’s global industry analysts, macro-analysts, currency specialists, and emerging markets debt team. The approach seeks to overweight countries that either present exceptional opportunity due to positive secular changes, or are showing positive cyclical movement. At the sector level, the approach evaluates opportunities using both a global and country-specific framework. The fund’s core investments are drawn from a universe of liquid large-cap and mid-cap stocks and reflects top-down country and sector views. In addition, the fund may invest in smaller or newer companies that the investment team believes represent exceptional long-term growth opportunities. These companies are typically in industries that we believe will do well on a global basis, and often are in new sectors of the market.
From a sector perspective, stock selection within the Financials, Materials, and Energy sectors were the main drivers of underperformance during the period. Strong stock selection within Information Technology partially offset negative results. A modest cash position also helped relative results in a declining market. From a country perspective, stock selection in China and South Korea contributed positively to relative results during the period. This was more than offset by weak stock selection within Brazil, Taiwan, and India, as well as a negative impact from our holdings in Egypt.
The fund’s largest relative detractors during the period included Brazil-based integrated oil and gas company Petroleo Brasileiro SA, Egypt-based financial services company EFG-Hermes, and TPK Holding Co., Ltd., a developer and manufacturer of capacitive touch technology based in Taiwan. Positions in mining company Aquarius Platinum, Ltd. and Brazil-based oil exploration company OGX Petroleo e Gas Participacoes also hurt relative and absolute performance results.
The fund’s largest contributors to relative performance during the period included South Korea-based consumer electronics products company Samsung Electronics Co., Ltd., South Africa-based distributor of construction and mining equipment and automobiles Barloworld, and Chinese internet search provider Baidu, Inc.
As of the end of the period, we remained underweight most of the cyclical sectors, including Financials and Materials. Our largest overweight was to the Information Technology sector, where we continue to emphasize consumer-oriented and internet companies, but have also recently added to undervalued technology product manufacturers. From a country standpoint, our largest overweights were in South Korea, Russia, and Thailand, and we were most underweight Taiwan and South Africa relative to the benchmark.
The fund used currency forwards during the period to hedge the currency risk associated with non-USD denominated equity holdings. These did not have a material impact on the fund’s performance.
Vera M. Trojan, CFA
Portfolio Manager
Wellington Management Company, LLP
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| Transamerica Funds | | Page 50 | | Annual Report 2011 |
Transamerica WMC Emerging Markets
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | (13.03 | )% | | | 8.05 | % | | | 09/30/2008 | |
| MSCI-EMI * | | | (7.44 | )% | | | 10.78 | % | | | 09/30/2008 | |
| |
NOTES
| | |
| * | | The Morgan Stanley Capital International Emerging Markets Index (“MSCI-EMI”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 years of Life or Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericainvestments.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Investing in emerging markets involves special considerations. These may include risks related to market and currency volatility, adverse social and political developments and the relatively small size and lesser liquidity of these markets. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
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| Transamerica Funds | | Page 51 | | Annual Report 2011 |
Understanding Your Funds’ Expenses
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees, dividend expense on short-sales, and other fund expenses.
The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the funds and to compare these costs with the ongoing costs of investing in other funds.
The examples are based on an investment of $1,000 invested at May 1, 2011 and held for the entire period until October 31, 2011.
ACTUAL EXPENSES
The information in the table under the heading “Actual Expenses” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, 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 = $8.60), then multiply the result by the number in the appropriate column for your share class titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The information in the table under the heading “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the funds’ actual returns. 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 your fund versus other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Expenses” 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 transaction costs were included, your costs would have been higher. The expenses shown in the table do not reflect any fees that may be charged to you by brokers, financial intermediaries or other financial institutions.
Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not covered by the advisory and administrative fees, such as fees and expenses of the trustees and their counsel, extraordinary expenses and interest expense.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Actual Expenses | | | Hypothetical Expenses (B) | | | | |
| | | Beginning | | | Ending Account | | | Expenses Paid | | | Ending Account | | | Expenses Paid | | | Annualized | |
| Fund Name | | Account Value | | | Value | | | During Period | | | Value | | | During Period | | | Expense Ratio | |
| Transamerica BlackRock Large Cap Value | | $ | 1,000.00 | | | $ | 897.90 | | | $ | 4.02 | (A) | | $ | 1,020.97 | | | $ | 4.28 | (A) | | | 0.84 | % |
| Transamerica Clarion Global Real Estate Securities | | | 1,000.00 | | | | 907.40 | | | | 4.38 | (A) | | | 1,020.62 | | | | 4.63 | (A) | | | 0.91 | |
| Transamerica First Quadrant Global Macro | | | 1,000.00 | | | | 957.20 | | | | 7.30 | (A) | | | 1,017.74 | | | | 7.53 | (A) | | | 1.48 | |
| Transamerica Hansberger International Value | | | 1,000.00 | | | | 805.60 | | | | 4.51 | (A) | | | 1,020.21 | | | | 5.04 | (A) | | | 0.99 | |
| Transamerica ICAP Select Equity | | | 1,000.00 | | | | 1,023.10 | | | | 1.40 | (C) | | | 1,006.97 | | | | 1.39 | (C) | | | 0.83 | |
| Transamerica Jennison Growth | | | 1,000.00 | | | | 955.00 | | | | 3.99 | (A) | | | 1,021.12 | | | | 4.13 | (A) | | | 0.81 | |
| Transamerica JPMorgan Core Bond | | | 1,000.00 | | | | 1,042.40 | | | | 2.42 | (A) | | | 1,022.84 | | | | 2.40 | (A) | | | 0.47 | |
| Transamerica JPMorgan International Bond | | | 1,000.00 | | | | 1,008.00 | | | | 3.19 | (A) | | | 1,022.03 | | | | 3.21 | (A) | | | 0.63 | |
| Transamerica JPMorgan Long/Short Strategy | | | 1,000.00 | | | | 963.20 | | | | 16.53 | (A) | | | 1,008.37 | | | | 16.91 | (A) | | | 3.34 | (E) |
| Transamerica JPMorgan Mid Cap Value | | | 1,000.00 | | | | 922.40 | | | | 4.36 | (A) | | | 1,020.67 | | | | 4.58 | (A) | | | 0.90 | |
| Transamerica Loomis Sayles Bond | | | 1,000.00 | | | | 969.50 | | | | 3.52 | (A) | | | 1,021.63 | | | | 3.62 | (A) | | | 0.71 | |
| Transamerica MFS International Equity | | | 1,000.00 | | | | 852.80 | | | | 4.72 | (A) | | | 1,020.11 | | | | 5.14 | (A) | | | 1.01 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 1,000.00 | | | | 1,043.38 | | | | 5.15 | (A) | | | 1,020.16 | | | | 5.09 | (A) | | | 1.00 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 1,000.00 | | | | 867.30 | | | | 4.09 | (A) | | | 1,020.82 | | | | 4.43 | (A) | | | 0.87 | |
| Transamerica Morgan Stanley Small Company Growth | | | 1,000.00 | | | | 845.30 | | | | 4.74 | (A) | | | 1,020.06 | | | | 5.19 | (A) | | | 1.02 | |
| Transamerica Neuberger Berman International | | | 1,000.00 | | | | 823.60 | | | | 5.01 | (A) | | | 1,019.71 | | | | 5.55 | (A) | | | 1.09 | |
| Transamerica Oppenheimer Developing Markets | | | 1,000.00 | | | | 855.60 | | | | 6.22 | (A) | | | 1,018.50 | | | | 6.77 | (A) | | | 1.33 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 1,000.00 | | | | 852.60 | | | | 4.53 | (A) | | | 1,020.32 | | | | 4.94 | (A) | | | 0.97 | |
| Transamerica PIMCO Real Return TIPS | | | 1,000.00 | | | | 1,058.60 | | | | 3.79 | (A) | | | 1,021.53 | | | | 3.72 | (A) | | | 0.73 | |
| Transamerica PIMCO Total Return | | | 1,000.00 | | | | 1,028.10 | | | | 3.83 | (A) | | | 1,021.42 | | | | 3.82 | (A) | | | 0.75 | |
| Transamerica Schroders International Small Cap | | | 1,000.00 | | | | 808.60 | | | | 5.29 | (A) | | | 1,019.36 | | | | 5.90 | (A) | | | 1.16 | |
| Transamerica Third Avenue Value | | | 1,000.00 | | | | 846.20 | | | | 4.00 | (A) | | | 1,020.87 | | | | 4.38 | (A) | | | 0.86 | |
| Transamerica Thornburg International Value | | | 1,000.00 | | | | 820.70 | | | | 5.05 | (A) | | | 1,019.66 | | | | 5.60 | (A) | | | 1.10 | |
| Transamerica Water Island Arbitrage Strategy | | | 1,000.00 | | | | 1,025.00 | | | | 7.87 | (D) | | | 1,017.30 | | | | 7.84 | (D) | | | 1.55 | (F) |
| Transamerica WMC Emerging Markets | | | 1,000.00 | | | | 833.80 | | | | 6.29 | (A) | | | 1,018.35 | | | | 6.92 | (A) | | | 1.36 | |
| | |
| (A) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days), and divided by the number of days in the year (365 days). |
| |
| (B) | | 5% return per year before expenses. |
| |
| (C) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (62 days), and divided by the number of days in the year (365 days). |
| |
| (D) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (183 days), and divided by the number of days in the year (365 days). |
| |
| (E) | | Includes dividends and interest on securities sold short (representing 2.17% of average net assets). |
| |
| (F) | | Includes dividends and interest on securities sold short (representing 0.30% of average net assets). |
| | | | |
| | | | | |
| Transamerica Funds | | Page 52 | | Annual Report 2011 |
Schedules of Investments Composition
At October 31, 2011
(The following charts summarize the Schedules of Investments of the Funds by asset type.)
(unaudited)
| | | | | |
| | | % of Net | |
| Transamerica BlackRock Large Cap Value | | Assets | |
| Common Stocks | | | 100.2 | % |
| Securities Lending Collateral | | | 8.6 | |
| Other Assets and Liabilities — Net | | | (8.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Clarion Global Real Estate Securities | | Assets | |
| Common Stocks | | | 99.1 | % |
| Securities Lending Collateral | | | 11.7 | |
| Repurchase Agreement | | | 0.7 | |
| Other Assets and Liabilities — Net | | | (11.5 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica First Quadrant Global Macro | | Assets | |
| Repurchase Agreement | | | 64.2 | |
| Short-Term U.S. Government Obligations | | | 34.9 | % |
| Purchased Options | | | 1.7 | |
Other Assets and Liabilities — Net(A) | | | (0.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Hansberger International Value | | Assets | |
| Common Stocks | | | 97.1 | % |
| Securities Lending Collateral | | | 12.6 | |
| Preferred Stock | | | 1.2 | |
| Repurchase Agreement | | | 1.1 | |
| Other Assets and Liabilities — Net | | | (12.0 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica ICAP Select Equity | | Assets | |
| Common Stocks | | | 97.0 | % |
| Repurchase Agreement | | | 9.2 | |
| Other Assets and Liabilities — Net | | | (6.2 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Jennison Growth | | Assets | |
| Common Stocks | | | 98.7 | % |
| Securities Lending Collateral | | | 4.5 | |
| Repurchase Agreement | | | 1.6 | |
| Other Assets and Liabilities — Net | | | (4.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica JPMorgan Core Bond | | Assets | |
| U.S. Government Agency Obligations | | | 48.7 | % |
| U.S. Government Obligations | | | 18.9 | |
| Corporate Debt Securities | | | 11.4 | |
| Mortgage-Backed Securities | | | 8.6 | |
| Repurchase Agreement | | | 8.2 | |
| Securities Lending Collateral | | | 6.9 | |
| Asset-Backed Securities | | | 2.6 | |
| Foreign Government Obligations | | | 1.4 | |
| Municipal Government Obligations | | | 0.1 | |
| Other Assets and Liabilities — Net | | | (6.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica JPMorgan International Bond | | Assets | |
| Foreign Government Obligations | | | 70.8 | % |
| Corporate Debt Securities | | | 23.6 | |
| Repurchase Agreement | | | 4.1 | |
| Mortgage-Backed Security | | | 0.7 | |
| Short-Term Foreign Government Obligation | | | 0.3 | |
Other Assets and Liabilities — Net (A) | | | 0.5 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica JPMorgan Long/Short Strategy | | Assets | |
| Common Stocks | | | 91.8 | % |
| Repurchase Agreement | | | 7.3 | |
Other Assets and Liabilities — Net (A) | | | 0.9 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica JPMorgan Mid Cap Value | | Assets | |
| Common Stocks | | | 97.8 | % |
| Securities Lending Collateral | | | 12.3 | |
| Repurchase Agreement | | | 1.9 | |
| Other Assets and Liabilities — Net | | | (12.0 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Loomis Sayles Bond | | Assets | |
| Corporate Debt Securities | | | 37.0 | % |
| Foreign Government Obligations | | | 26.4 | |
| Convertible Bonds | | | 11.3 | |
| Mortgage-Backed Securities | | | 7.7 | |
| Securities Lending Collateral | | | 7.7 | |
| Asset-Backed Securities | | | 4.0 | |
| Preferred Stocks | | | 4.0 | |
| Repurchase Agreement | | | 2.0 | |
| Convertible Preferred Stocks | | | 1.8 | |
| Structured Notes Debt | | | 1.4 | |
| Common Stocks | | | 1.2 | |
| U.S. Government Obligation | | | 1.1 | |
| Loan Assignment | | | 0.7 | |
| Preferred Corporate Debt Securities | | | 0.3 | |
| Municipal Government Obligation | | | 0.1 | |
| Other Assets and Liabilities — Net | | | (6.7 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica MFS International Equity | | Assets | |
| Common Stocks | | | 99.7 | % |
| Securities Lending Collateral | | | 4.2 | |
| Repurchase Agreement | | | 0.3 | |
| Other Assets and Liabilities — Net | | | (4.2 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica Morgan Stanley Emerging Markets | | % of Net | |
| Debt | | Assets | |
| Foreign Government Obligations | | | 62.0 | % |
| Corporate Debt Securities | | | 27.3 | |
| Securities Lending Collateral | | | 11.5 | |
| Repurchase Agreement | | | 10.6 | |
Other Assets and Liabilities — Net (A) | | | (11.4 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 53 | | Annual Report 2011 |
Schedules of Investments Composition (continued)
At October 31, 2011
(The following charts summarize the Schedules of Investments of the Funds by asset type.)
(unaudited)
| | | | | |
| | | % of Net | |
| Transamerica Morgan Stanley Mid-Cap Growth | | Assets | |
| Common Stocks | | | 97.3 | % |
| Securities Lending Collateral | | | 19.5 | |
| Preferred Stocks | | | 1.6 | |
| Repurchase Agreement | | | 1.0 | |
| Other Assets and Liabilities — Net | | | (19.4 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| Transamerica Morgan Stanley Small Company | | % of Net | |
| Growth | | Assets | |
| Common Stocks | | | 95.2 | % |
| Securities Lending Collateral | | | 25.4 | |
| Preferred Stocks | | | 2.9 | |
| Repurchase Agreement | | | 1.9 | |
| Other Assets and Liabilities — Net | | | (25.4 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Neuberger Berman International | | Assets | |
| Common Stocks | | | 95.9 | % |
| Securities Lending Collateral | | | 9.9 | |
| Repurchase Agreement | | | 4.5 | |
| Other Assets and Liabilities — Net | | | (10.3 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Oppenheimer Developing Markets | | Assets | |
| Common Stocks | | | 96.7 | % |
| Securities Lending Collateral | | | 8.8 | |
| Repurchase Agreement | | | 1.8 | |
| Preferred Stocks | | | 1.3 | |
| Convertible Bond | | | 0.0 | * |
| Right | | | 0.0 | * |
| Other Assets and Liabilities — Net | | | (8.6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | Assets | |
| Common Stocks | | | 93.5 | % |
| Securities Lending Collateral | | | 11.4 | |
| Repurchase Agreement | | | 8.7 | |
| Other Assets and Liabilities — Net | | | (13.6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica PIMCO Real Return TIPS | | Assets | |
| U.S. Government Obligations | | | 91.4 | % |
| Corporate Debt Securities | | | 17.2 | |
| Foreign Government Obligations | | | 4.5 | |
| Securities Lending Collateral | | | 4.3 | |
| Mortgage-Backed Securities | | | 3.7 | |
| Asset-Backed Securities | | | 1.2 | |
| Loan Assignments | | | 0.6 | |
| U.S. Government Agency Obligations | | | 0.5 | |
| Repurchase Agreement | | | 0.2 | |
| Preferred Corporate Debt Security | | | 0.2 | |
| Purchased Swaptions | | | 0.1 | |
| Municipal Government Obligations | | | 0.1 | |
| Short-Term U.S. Government Obligation | | | 0.1 | |
| Commercial Paper | | | 0.0 | * |
| Convertible Preferred Stock | | | 0.0 | * |
Other Assets and Liabilities — Net(A) | | | (24.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica PIMCO Total Return | | Assets | |
| U.S. Government Agency Obligations | | | 49.7 | % |
| Corporate Debt Securities | | | 19.4 | |
| Foreign Government Obligations | | | 16.7 | |
| U.S. Government Obligations | | | 12.1 | |
| Securities Lending Collateral | | | 7.3 | |
| Mortgage-Backed Securities | | | 7.3 | |
| Municipal Government Obligations | | | 6.5 | |
| Asset-Backed Securities | | | 4.8 | |
| Short-Term U.S. Government Obligations | | | 2.2 | |
| Repurchase Agreements | | | 2.0 | |
| Preferred Corporate Debt Securities | | | 1.6 | |
| Convertible Preferred Stock | | | 0.3 | |
| Loan Assignment | | | 0.1 | |
| Preferred Stock | | | 0.1 | |
Other Assets and Liabilities — Net (A) | | | (30.1 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Schroders International Small Cap | | Assets | |
| Common Stocks | | | 98.4 | % |
| Securities Lending Collateral | | | 12.5 | |
| Repurchase Agreement | | | 0.4 | |
| Other Assets and Liabilities — Net | | | (11.3 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Third Avenue Value | | Assets | |
| Common Stocks | | | 90.6 | % |
| Repurchase Agreement | | | 9.4 | |
| Securities Lending Collateral | | | 9.3 | |
| Other Assets and Liabilities — Net | | | (9.3 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Thornburg International Value | | Assets | |
| Common Stocks | | | 97.0 | % |
| Securities Lending Collateral | | | 3.4 | |
| Preferred Stock | | | 2.1 | |
| Repurchase Agreement | | | 0.2 | |
Other Assets and Liabilities — Net (A) | | | (2.7 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Water Island Arbitrage Strategy | | Assets | |
| Common Stocks | | | 90.8 | % |
| Repurchase Agreement | | | 29.9 | |
| Investment Company | | | 1.8 | |
| Purchased Options | | | 0.1 | |
Other Assets and Liabilities — Net (A) | | | (22.6 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica WMC Emerging Markets | | Assets | |
| Common Stocks | | | 98.3 | % |
| Securities Lending Collateral | | | 3.7 | |
| Preferred Stocks | | | 1.3 | |
Other Assets and Liabilities — Net (A) | | | (3.3 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | |
| (A) | | The Other Assets and Liabilities — Net category may include, but is not limited to, Forward Currency contracts, Futures contracts, Swap Agreements, Written Options and Swaptions, Securities Sold Short, and Cash Collateral. |
| |
| * | | Amount rounds to less than 0.1%. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 54 | | Annual Report 2011 |
Transamerica BlackRock Large Cap Value
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Shares | | | Value (000’s) | |
| |
COMMON STOCKS — 100.2% | | | | | | | | |
Aerospace & Defense — 5.9% | | | | | | | | |
| General Dynamics Corp. | | | 114,000 | | | $ | 7,317 | |
| L-3 Communications Holdings, Inc. | | | 81,000 | | | | 5,490 | |
| Lockheed Martin Corp. | | | 77,000 | | | | 5,844 | |
| Northrop Grumman Corp. | | | 117,000 | | | | 6,757 | |
| Raytheon Co. | | | 150,000 | | | | 6,629 | |
Auto Components — 1.6% | | | | | | | | |
Autoliv, Inc. ^ | | | 54,000 | | | | 3,120 | |
| TRW Automotive Holdings Corp. ‡ | | | 133,000 | | | | 5,599 | |
Beverages — 1.4% | | | | | | | | |
| Coca-Cola Enterprises, Inc. | | | 62,000 | | | | 1,663 | |
| Constellation Brands, Inc. — Class A ‡ | | | 295,000 | | | | 5,965 | |
Biotechnology — 2.9% | | | | | | | | |
| Amgen, Inc. | | | 176,000 | | | | 10,080 | |
| Biogen Idec, Inc. ‡ | | | 51,000 | | | | 5,934 | |
Capital Markets — 0.6% | | | | | | | | |
| American Capital, Ltd. ‡ | | | 426,000 | | | | 3,310 | |
Chemicals — 2.3% | | | | | | | | |
| CF Industries Holdings, Inc. | | | 34,000 | | | | 5,517 | |
| Huntsman Corp. | | | 87,000 | | | | 1,021 | |
| Lyondellbasell Industries NV — Class A | | | 186,000 | | | | 6,113 | |
Commercial Banks — 1.3% | | | | | | | | |
| East-West Bancorp, Inc. | | | 42,000 | | | | 818 | |
| KeyCorp | | | 881,000 | | | | 6,220 | |
Commercial Services & Supplies — 0.8% | | | | | | | | |
| Corrections Corp., of America ‡ | | | 184,000 | | | | 4,090 | |
Communications Equipment — 1.3% | | | | | | | | |
| Motorola Solutions, Inc. | | | 147,000 | | | | 6,896 | |
Computers & Peripherals — 4.2% | | | | | | | | |
| Dell, Inc. ‡ | | | 402,000 | | | | 6,355 | |
Lexmark International, Inc. — Class A ‡ ^ | | | 175,000 | | | | 5,548 | |
Seagate Technology PLC ^ | | | 360,000 | | | | 5,814 | |
| Western Digital Corp. ‡ | | | 199,000 | | | | 5,301 | |
Construction & Engineering — 0.4% | | | | | | | | |
| KBR, Inc. | | | 72,000 | | | | 2,010 | |
Consumer Finance — 3.6% | | | | | | | | |
| Capital One Financial Corp. | | | 158,000 | | | | 7,214 | |
| Discover Financial Services | | | 269,000 | | | | 6,338 | |
| SLM Corp. | | | 443,000 | | | | 6,056 | |
Diversified Consumer Services — 0.3% | | | | | | | | |
Education Management Corp. ‡ ^ | | | 26,000 | | | | 516 | |
| Service Corp., International | | | 126,000 | | | | 1,260 | |
Diversified Financial Services — 2.4% | | | | | | | | |
| CME Group, Inc. — Class A | | | 26,000 | | | | 7,165 | |
| JPMorgan Chase & Co. | | | 7,000 | | | | 243 | |
Moody’s Corp. ^ | | | 155,000 | | | | 5,501 | |
Diversified Telecommunication Services — 0.7% | | | | | | | | |
| AT&T, Inc. | | | 125,000 | | | | 3,664 | |
Electronic Equipment & Instruments — 0.4% | | | | | | | | |
Tech Data Corp. ‡ ^ | | | 42,000 | | | | 2,066 | |
Energy Equipment & Services — 2.5% | | | | | | | | |
Diamond Offshore Drilling, Inc. ^ | | | 85,000 | | | | 5,571 | |
| Oceaneering International, Inc. | | | 92,000 | | | | 3,848 | |
SEACOR Holdings, Inc. ^ | | | 30,000 | | | | 2,555 | |
| Unit Corp. ‡ | | | 36,000 | | | | 1,766 | |
Food & Staples Retailing — 3.3% | | | | | | | | |
| Kroger Co. | | | 263,000 | | | | 6,097 | |
Safeway, Inc. ^ | | | 312,000 | | | | 6,043 | |
| Walgreen Co. | | | 169,000 | | | | 5,611 | |
Gas Utilities — 0.5% | | | | | | | | |
| Atmos Energy Corp. | | | 81,000 | | | | 2,780 | |
Health Care Equipment & Supplies — 1.1% | | | | | | | | |
| Baxter International, Inc. | | | 104,000 | | | | 5,718 | |
| Cooper Cos., Inc. | | | 7,000 | | | | 485 | |
Health Care Providers & Services — 10.9% | | | | | | | | |
| Aetna, Inc. | | | 169,000 | | | | 6,719 | |
AmerisourceBergen Corp. — Class A ^ | | | 153,000 | | | | 6,242 | |
| Cardinal Health, Inc. | | | 141,000 | | | | 6,242 | |
| CIGNA Corp. | | | 151,000 | | | | 6,695 | |
Health Care Providers & Services (continued) | | | | | | | | |
| Coventry Health Care, Inc. ‡ | | | 188,000 | | | | 5,980 | |
| Humana, Inc. | | | 84,000 | | | | 7,131 | |
Lincare Holdings, Inc. ^ | | | 77,700 | | | | 1,830 | |
| UnitedHealth Group, Inc. | | | 211,000 | | | | 10,127 | |
| WellPoint, Inc. | | | 118,000 | | | | 8,130 | |
Household Products — 0.6% | | | | | | | | |
| Procter & Gamble Co. | | | 47,000 | | | | 3,008 | |
Independent Power Producers & Energy Traders — 2.0% | | | | | | | | |
| AES Corp. ‡ | | | 520,000 | | | | 5,834 | |
| NRG Energy, Inc. ‡ | | | 247,800 | | | | 5,308 | |
Industrial Conglomerates — 1.0% | | | | | | | | |
| General Electric Co. | | | 249,000 | | | | 4,161 | |
| Tyco International, Ltd. | | | 28,000 | | | | 1,275 | |
Insurance — 7.2% | | | | | | | | |
| ACE, Ltd. | | | 42,000 | | | | 3,030 | |
| American Financial Group, Inc. | | | 133,800 | | | | 4,794 | |
| American National Insurance Co. | | | 2,000 | | | | 143 | |
Arch Capital Group, Ltd. ‡ ^ | | | 64,000 | | | | 2,302 | |
Aspen Insurance Holdings, Ltd. ^ | | | 58,000 | | | | 1,536 | |
| Assurant, Inc. | | | 46,000 | | | | 1,773 | |
| Berkshire Hathaway, Inc. — Class B ‡ | | | 12,000 | | | | 934 | |
| HCC Insurance Holdings, Inc. | | | 197,000 | | | | 5,242 | |
| PartnerRe, Ltd. | | | 23,000 | | | | 1,431 | |
| Principal Financial Group, Inc. | | | 234,000 | | | | 6,033 | |
Torchmark Corp. ^ | | | 143,000 | | | | 5,853 | |
| Unum Group | | | 256,000 | | | | 6,104 | |
Internet & Catalog Retail — 0.8% | | | | | | | | |
Expedia, Inc. ^ | | | 173,000 | | | | 4,543 | |
Internet Software & Services — 0.7% | | | | | | | | |
IAC/InterActiveCorp ‡ ^ | | | 96,000 | | | | 3,920 | |
IT Services — 0.3% | | | | | | | | |
| DST Systems, Inc. | | | 34,000 | | | | 1,706 | |
Life Sciences Tools & Services — 0.2% | | | | | | | | |
| PerkinElmer, Inc. | | | 57,000 | | | | 1,178 | |
Machinery — 1.0% | | | | | | | | |
| AGCO Corp. ‡ | | | 127,000 | | | | 5,566 | |
Media — 2.2% | | | | | | | | |
| CBS Corp. — Class B | | | 264,000 | | | | 6,814 | |
| Time Warner Cable, Inc. | | | 81,000 | | | | 5,159 | |
Multiline Retail — 0.7% | | | | | | | | |
| Macy’s, Inc. | | | 121,000 | | | | 3,694 | |
Multi-Utilities — 0.4% | | | | | | | | |
| Ameren Corp. | | | 71,000 | | | | 2,263 | |
Oil, Gas & Consumable Fuels — 11.1% | | | | | | | | |
| Chevron Corp. | | | 211,000 | | | | 22,165 | |
| ConocoPhillips | | | 201,000 | | | | 13,999 | |
| Marathon Oil Corp. | | | 260,000 | | | | 6,768 | |
| Murphy Oil Corp. | | | 99,000 | | | | 5,482 | |
Tesoro Corp. ‡ ^ | | | 224,000 | | | | 5,811 | |
| Valero Energy Corp. | | | 257,000 | | | | 6,322 | |
Paper & Forest Products — 2.2% | | | | | | | | |
| Domtar Corp. | | | 34,000 | | | | 2,785 | |
| International Paper Co. | | | 223,000 | | | | 6,177 | |
| MeadWestvaco Corp. | | | 107,600 | | | | 3,003 | |
Pharmaceuticals — 8.1% | | | | | | | | |
| Bristol-Myers Squibb Co. | | | 320,000 | | | | 10,109 | |
| Eli Lilly & Co. | | | 209,000 | | | | 7,766 | |
| Forest Laboratories, Inc. ‡ | | | 201,000 | | | | 6,291 | |
| Johnson & Johnson | | | 24,000 | | | | 1,545 | |
| Pfizer, Inc. | | | 949,000 | | | | 18,279 | |
Semiconductors & Semiconductor Equipment — 3.9% | | | | | | | | |
| Applied Materials, Inc. | | | 546,000 | | | | 6,726 | |
KLA-Tencor Corp. ^ | | | 121,000 | | | | 5,698 | |
| Marvell Technology Group, Ltd. ‡ | | | 467,000 | | | | 6,533 | |
Novellus Systems, Inc. ‡ ^ | | | 70,000 | | | | 2,419 | |
Software — 4.1% | | | | | | | | |
| Activision Blizzard, Inc. | | | 479,000 | | | | 6,413 | |
| Amdocs, Ltd. ‡ | | | 128,000 | | | | 3,843 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 55 | | Annual Report 2011 |
Transamerica BlackRock Large Cap Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Shares | | | Value (000’s) | |
Software (continued) | | | | | | | | |
| CA, Inc. | | | 207,600 | | | $ | 4,497 | |
| Microsoft Corp. | | | 207,000 | | | | 5,512 | |
| Symantec Corp. ‡ | | | 107,000 | | | | 1,820 | |
Specialty Retail — 1.5% | | | | | | | | |
GameStop Corp. — Class A ‡ ^ | | | 225,000 | | | | 5,753 | |
Gap, Inc. ^ | | | 114,000 | | | | 2,155 | |
Tobacco — 2.6% | | | | | | | | |
| Lorillard, Inc. | | | 64,000 | | | | 7,082 | |
| Philip Morris International, Inc. | | | 99,000 | | | | 6,917 | |
Wireless Telecommunication Services — 1.2% | | | | | | | | |
| Sprint Nextel Corp. ‡ | | | 1,678,000 | | | | 4,313 | |
Telephone & Data Systems, Inc. ^ | | | 101,000 | | | | 2,341 | |
| | | | | | | | |
Total Common Stocks (cost $495,799) | | | | | | | 545,132 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 8.6% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 46,733,813 | | | | 46,734 | |
Total Securities Lending Collateral (cost $46,734) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $542,533) Π | | | | | | | 591,866 | |
| Other Assets and Liabilities — Net | | | | | | | (47,817 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 544,049 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $45,618. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $551,502. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $60,488 and $20,124, respectively. Net unrealized appreciation for tax purposes is $40,364. |
VALUATION SUMMARY (all amounts in thousands): ��
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 525,058 | | | $ | 20,074 | | | $ | — | | | $ | 545,132 | |
| Securities Lending Collateral | | | 46,734 | | | | — | | | | — | | | | 46,734 | |
| | | | |
Total | | $ | 571,792 | | | $ | 20,074 | | | $ | — | | | $ | 591,866 | |
| | | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 56 | | Annual Report 2011 |
Transamerica Clarion Global Real Estate Securities
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 99.1% | | | | | | | | |
Australia — 9.8% | | | | | | | | |
| Dexus Property Group REIT | | | 1,788,298 | | | $ | 1,591 | |
| Goodman Group REIT | | | 2,287,055 | | | | 1,486 | |
| GPT Group REIT | | | 694,773 | | | | 2,293 | |
| Investa Office Fund REIT | | | 1,604,100 | | | | 1,049 | |
| Lend Lease Corp., Ltd. | | | 33,613 | | | | 273 | |
| Mirvac Group REIT | | | 710,951 | | | | 931 | |
| Stockland REIT | | | 323,040 | | | | 1,067 | |
| Westfield Group REIT | | | 446,543 | | | | 3,595 | |
| Westfield Retail Trust REIT | | | 825,727 | | | | 2,201 | |
Bermuda — 1.3% | | | | | | | | |
| Great Eagle Holdings, Ltd. | | | 202,400 | | | | 446 | |
| Hongkong Land Holdings, Ltd. ^ | | | 206,897 | | | | 1,087 | |
| Kerry Properties, Ltd. | | | 115,000 | | | | 422 | |
Brazil — 0.5% | | | | | | | | |
| BR Malls Participacoes SA | | | 37,600 | | | | 406 | |
| Sonae Sierra Brasil SA | | | 19,400 | | | | 260 | |
Canada — 3.6% | | | | | | | | |
| Brookfield Asset Management, Inc. — Class A ^ | | | 15,300 | | | | 444 | |
| Brookfield Office Properties, Inc. | | | 99,500 | | | | 1,644 | |
| Calloway Real Estate Investment Trust | | | 28,800 | | | | 760 | |
| Canadian Real Estate Investment Trust | | | 8,400 | | | | 299 | |
| Primaris Retail Real Estate Investment Trust | | | 21,100 | | | | 437 | |
| RioCan Real Estate Investment Trust | | | 69,200 | | | | 1,756 | |
Cayman Islands — 0.5% | | | | | | | | |
| Longfor Properties Co., Ltd. | | | 304,000 | | | | 388 | |
| Soho China, Ltd. | | | 346,000 | | | | 245 | |
France — 5.0% | | | | | | | | |
| ICADE REIT | | | 9,210 | | | | 824 | |
| Klepierre REIT | | | 18,140 | | | | 565 | |
| Mercialys SA REIT | | | 18,281 | | | | 681 | |
| Societe Immobiliere de Location pour | | | | | | | | |
| I’Industrie et le Commerce REIT ^ | | | 3,930 | | | | 413 | |
| Unibail-Rodamco Se REIT | | | 22,860 | | | | 4,544 | |
Germany — 0.6% | | | | | | | | |
| GSW Immobilien AG ‡ | | | 28,640 | | | | 930 | |
Hong Kong — 9.2% | | | | | | | | |
| Cheung Kong Holdings, Ltd. | | | 283,924 | | | | 3,509 | |
| Hang Lung Group, Ltd. | | | 155,848 | | | | 944 | |
| Hang Lung Properties, Ltd. | | | 493,748 | | | | 1,789 | |
| Link Real Estate Investment Trust | | | 640,300 | | | | 2,199 | |
| Sino Land Co., Ltd. | | | 279,000 | | | | 441 | |
| Sun Hung Kai Properties, Ltd. | | | 283,245 | | | | 3,889 | |
| Wharf Holdings, Ltd. | | | 169,405 | | | | 901 | |
Japan — 12.5% | | | | | | | | |
| Advance Residence Investment Corp. - | | | | | | | | |
| Class A REIT | | | 299 | | | | 566 | |
| Daito Trust Construction Co., Ltd. | | | 22,200 | | | | 1,967 | |
| Daiwa House Industry Co., Ltd. | | | 30,000 | | | | 376 | |
| Frontier Real Estate Investment Corp. REIT ^ | | | 108 | | | | 937 | |
| Japan Real Estate Investment Corp. REIT ^ | | | 153 | | | | 1,305 | |
| Japan Retail Fund Investment Corp. REIT ^ | | | 520 | | | | 805 | |
| Kenedix Realty Investment Corp. REIT ^ | | | 123 | | | | 357 | |
| Mitsubishi Estate Co., Ltd. ^ | | | 300,820 | | | | 5,096 | |
| Mitsui Fudosan Co., Ltd. | | | 241,046 | | | | 4,009 | |
| Nippon Accommodations Fund, Inc. REIT | | | 91 | | | | 603 | |
| Nippon Building Fund, Inc. REIT ^ | | | 154 | | | | 1,487 | |
| Nomura Real Estate Holdings, Inc. ^ | | | 50,000 | | | | 806 | |
| United Urban Investment Corp. — Class A REIT | | | 392 | | | | 442 | |
Netherlands — 0.5% | | | | | | | | |
| Corio NV REIT | | | 15,670 | | | | 796 | |
Singapore — 4.6% | | | | | | | | |
| Ascendas Real Estate Investment Trust | | | 518,000 | | | | 843 | |
| Capitacommercial Trust REIT ^ | | | 1,192,000 | | | | 1,065 | |
| Capitaland, Ltd. ^ | | | 857,050 | | | | 1,846 | |
| CapitaMall Trust REIT ^ | | | 619,214 | | | | 920 | |
| Frasers Centrepoint Trust REIT | | | 124,100 | | | | 146 | |
| Global Logistic Properties, Ltd. — Class L ‡ | | | 1,124,200 | | | | 1,565 | |
| Keppel Land, Ltd. ^ | | | 118,000 | | | | 260 | |
Sweden — 0.5% | | | | | | | | |
| Castellum AB | | | 33,530 | | | | 454 | |
| Hufvudstaden AB — Class A | | | 27,070 | | | | 294 | |
Switzerland — 0.8% | | | | | | | | |
| PSP Swiss Property AG ‡ | | | 2,990 | | | | 272 | |
| Swiss Prime Site AG ‡ | | | 10,070 | | | | 824 | |
United Kingdom — 5.0% | | | | | | | | |
| British Land Co., PLC REIT | | | 202,088 | | | | 1,653 | |
| Derwent London PLC REIT | | | 45,839 | | | | 1,248 | |
| Great Portland Estates PLC REIT | | | 153,960 | | | | 920 | |
| Hammerson PLC REIT | | | 260,792 | | | | 1,704 | |
| Land Securities Group PLC REIT | | | 100,807 | | | | 1,103 | |
| Safestore Holdings PLC | | | 170,100 | | | | 283 | |
| Segro PLC REIT | | | 94,485 | | | | 369 | |
United States — 44.7% | | | | | | | | |
| Apartment Investment & Management Co. - | | | | | | | | |
| Class A REIT ^ | | | 57,400 | | | | 1,416 | |
| AvalonBay Communities, Inc. REIT | | | 27,125 | | | | 3,626 | |
| Boston Properties, Inc. REIT ^ | | | 43,800 | | | | 4,336 | |
| BRE Properties, Inc. REIT | | | 33,300 | | | | 1,669 | |
| DDR Corp. REIT | | | 99,300 | | | | 1,272 | |
| Equity Residential REIT ^ | | | 77,600 | | | | 4,553 | |
| Essex Property Trust, Inc. REIT ^ | | | 11,400 | | | | 1,627 | |
| Federal Realty Investment Trust REIT ^ | | | 20,400 | | | | 1,811 | |
| General Growth Properties, Inc. REIT | | | 169,090 | | | | 2,486 | |
| HCP, Inc. REIT | | | 60,500 | | | | 2,411 | |
| Health Care REIT, Inc. ^ | | | 39,100 | | | | 2,060 | |
| Highwoods Properties, Inc. REIT ^ | | | 14,100 | | | | 437 | |
| Host Hotels & Resorts, Inc. REIT ^ | | | 164,677 | | | | 2,350 | |
| Kimco Realty Corp. REIT ^ | | | 60,800 | | | | 1,062 | |
| Liberty Property Trust REIT | | | 58,700 | | | | 1,878 | |
| Macerich Co. REIT ^ | | | 60,307 | | | | 3,001 | |
| Pebblebrook Hotel Trust REIT ^ | | | 28,900 | | | | 550 | |
| ProLogis, Inc. REIT | | | 126,913 | | | | 3,777 | |
| Public Storage REIT | | | 25,500 | | | | 3,291 | |
| Simon Property Group, Inc. REIT | | | 62,103 | | | | 7,976 | |
| SL Green Realty Corp. REIT ^ | | | 31,500 | | | | 2,173 | |
| Starwood Hotels & Resorts Worldwide, Inc. | | | 17,700 | | | | 887 | |
| Tanger Factory Outlet Centers REIT ^ | | | 21,900 | | | | 617 | |
| Taubman Centers, Inc. REIT | | | 24,900 | | | | 1,525 | |
| UDR, Inc. REIT | | | 89,783 | | | | 2,238 | |
| Ventas, Inc. REIT ^ | | | 55,035 | | | | 3,060 | |
| Vornado Realty Trust REIT | | | 42,937 | | | | 3,556 | |
| | | | | | | |
Total Common Stocks (cost $113,685) | | | | | | | 145,675 | |
| | | | | | | |
SECURITIES LENDING COLLATERAL — 11.7% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 17,265,157 | | | | 17,265 | |
Total Securities Lending Collateral (cost 17,265) | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 57 | | Annual Report 2011 |
Transamerica Clarion Global Real Estate Securities
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT — 0.7% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $1,023 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $1,046. | | $ | 1,023 | | | $ | 1,023 | |
Total Repurchase Agreement (cost $1,023) | | | | | | | | |
| | | | | | | |
| Total Investment Securities (cost $131,973) Π | | | | | | | 163,963 | |
| Other Assets and Liabilities — Net | | | | | | | (16,906 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 147,057 | |
| | | | | | | | |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| Real Estate Investment Trusts | | | 66.3 | % | | $ | 108,718 | |
| Real Estate Management & Development | | | 22.0 | | | | 36,070 | |
| Hotels, Restaurants & Leisure | | | 0.5 | | | | 887 | |
| | | | | | | |
| Investment Securities, at Value | | | 88.8 | | | | 145,675 | |
| Short-Term Investments | | | 11.2 | | | | 18,288 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 163,963 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $16,694. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $140,413. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $26,273 and $2,723, respectively. Net unrealized appreciation for tax purposes is $23,550. |
DEFINITION:
REIT Real Estate Investment Trust (includes domestic REITs and Foreign Real Estate Investment Companies)
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 74,239 | | | $ | 71,436 | | | $ | — | | | $ | 145,675 | |
| Repurchase Agreement | | | — | | | | 1,023 | | | | — | | | | 1,023 | |
| Securities Lending Collateral | | | 17,265 | | | | — | | | | — | | | | 17,265 | |
Total | | $ | 91,504 | | | $ | 72,459 | | | $ | — | | | $ | 163,963 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 58 | | Annual Report 2011 |
Transamerica First Quadrant Global Macro
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS — 34.9% | | | | | | | | |
| U.S. Treasury Bill | | | | | | | | |
| 0.00%, 02/16/2012 ▲ ■ γ | | $ | 7,000 | | | $ | 6,999 | |
| 0.01%, 02/09/2012 ▲ | | | 6,000 | | | | 5,999 | |
| 0.02%, 03/08/2012 ▲ ■ γ | | | 23,500 | | | | 23,496 | |
| 0.03%, 03/22/2012 ▲ ■ γ | | | 11,500 | | | | 11,499 | |
| | | | | | | | |
Total Short-Term U.S. Government Obligations (cost $47,993) | | | | | | | 47,993 | |
| | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
PURCHASED OPTIONS — 1.7% | | | | | | | | |
Call Options — 1.6% | | | | | | | | |
| S&P 500 Index | | $ | 3 | | | | 386 | |
| Call Strike $1140.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| S&P 500 Index | | | 3 | | | | 278 | |
| Call Strike $1190.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| S&P 500 Index | | | 2 | | | | 171 | |
| Call Strike $1155.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | 1 | | | | 154 | |
| Call Strike $1160.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | 1 | | | | 39 | |
| Call Strike $1250.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | 11 | | | | 935 | |
| Call Strike $1200.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | 1 | | | | 90 | |
| Call Strike $1205.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
Put Options — 0.1% | | | | | | | | |
| S&P 500 Index | | | 3 | | | | 40 | |
| Put Strike $1190.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| S&P 500 Index | | | 3 | | | | 20 | |
| Put Strike $1140.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| S&P 500 Index | | | 7 | | | | 23 | |
| Put Strike $1100.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| S&P 500 Index | | | 16 | | | | 19 | |
| Put Strike $850.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | 16 | | | | 141 | |
| Put Strike $1050.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | 4 | | | | 54 | |
| Put Strike $1125.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | ♦ | | | | 2 | |
| Put Strike $1150.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| | | | | | | | |
Total Purchased Options (cost $2,715) | | | | | | | 2,352 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT — 64.2% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $88,345 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 4.00%, due 05/01/2025 - 08/01/2026, with a total value of $90,116. | | $ | 88,345 | | | $ | 88,345 | |
Total Repurchase Agreement (cost $88,345) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $139,053) п | | | | | | | 138,690 | |
| Other Assets and Liabilities — Net | | | | | | | (1,139 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 137,551 | |
| | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
WRITTEN OPTIONS — (1.4%) | | | | | | | | |
Call Options — (1.1%) | | | | | | | | |
| S&P 500 Index | | $ | (4 | ) | | $ | (529 | ) |
| Call Strike $1,125.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | ♦ | | | | (13 | ) |
| Call Strike $1,150.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | (33 | ) | | | (987 | ) |
| Call Strike $1,275.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
Put Options — (0.3%) | | | | | | | | |
| S&P 500 Index | | | (2 | ) | | | (25 | ) |
| Put Strike $1,155.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | (1 | ) | | | (30 | ) |
| Put Strike $1,205.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | (1 | ) | | | (23 | ) |
| Put Strike $1,160.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | (1 | ) | | | (43 | ) |
| Put Strike $1,250.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| S&P 500 Index | | | (11 | ) | | | (338 | ) |
| Put Strike $1,200.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| | | | | | | | |
Total Written Options (premiums: $(1,868)) | | | | | | | (1,988 | ) |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 59 | | Annual Report 2011 |
Transamerica First Quadrant Global Macro
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FUTURES CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | Appreciation | |
| | | | | | | | | | | | | | | (Depreciation) | |
| Description | | Type | | | Contracts ┌ | | | Expiration Date | | | (000’s) | |
| |
| 10-Year Australian Treasury Bond | | Short | | | (413 | ) | | | 12/15/2011 | | | $ | 1,576 | |
| 10-Year Government of Canada Bond | | Long | | | 31 | | | | 12/19/2011 | | | | 28 | |
| 10-Year Japan Government Bond Mini | | Short | | | (45 | ) | | | 12/08/2011 | | | | 8 | |
| 10-Year U.S. Treasury Note | | Long | | | 46 | | | | 12/20/2011 | | | | (16 | ) |
| AEX Index | | Long | | | 30 | | | | 11/18/2011 | | | | 61 | |
| ASX SPI 200 Index | | Short | | | (20 | ) | | | 12/15/2011 | | | | (160 | ) |
| DAX Index | | Long | | | 13 | | | | 12/16/2011 | | | | 205 | |
| FTSE 100 Index | | Long | | | 22 | | | | 12/16/2011 | | | | 66 | |
| German Euro Bund | | Long | | | 140 | | | | 12/08/2011 | | | | (130 | ) |
| Hang Seng Index | | Long | | | 2 | | | | 11/29/2011 | | | | 12 | |
| IBEX 35 Index | | Long | | | 1 | | | | 11/18/2011 | | | | 1 | |
| S&P 500 E-Mini Index | | Long | | | 39 | | | | 12/16/2011 | | | | 42 | |
| S&P TSE 60 Index | | Long | | | 6 | | | | 12/15/2011 | | | | 19 | |
| TOPIX Index | | Short | | | (35 | ) | | | 12/09/2011 | | | | (81 | ) |
| United Kingdom Long Gilt Bond | | Long | | | 82 | | | | 12/28/2011 | | | | (20 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 1,611 | |
| | | | | | | | | | | | | | | | |
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | Settlement | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | MYC | | | 2,709 | | | | 12/21/2011 | | | $ | 2,592 | | | $ | 245 | |
| Australian Dollar | | MYC | | | 1,097 | | | | 12/21/2011 | | | | 1,032 | | | | 117 | |
| Australian Dollar | | MYC | | | (24,907 | ) | | | 12/21/2011 | | | | (26,206 | ) | | | 124 | |
| Australian Dollar | | MYC | | | (1,497 | ) | | | 12/21/2011 | | | | (1,535 | ) | | | (33 | ) |
| Australian Dollar | | MYC | | | (1,869 | ) | | | 12/21/2011 | | | | (1,884 | ) | | | (73 | ) |
| Australian Dollar | | MYC | | | 1,692 | | | | 12/21/2011 | | | | 1,675 | | | | 97 | |
| Australian Dollar | | MYC | | | 1,728 | | | | 12/21/2011 | | | | 1,756 | | | | 54 | |
| Australian Dollar | | MYC | | | (780 | ) | | | 12/21/2011 | | | | (818 | ) | | | 2 | |
| Australian Dollar | | MYC | | | (1,314 | ) | | | 12/21/2011 | | | | (1,275 | ) | | | (100 | ) |
| Australian Dollar | | MYC | | | (2,099 | ) | | | 12/21/2011 | | | | (2,022 | ) | | | (176 | ) |
| Australian Dollar | | MYC | | | 1,784 | | | | 12/21/2011 | | | | 1,719 | | | | 149 | |
| Australian Dollar | | MYC | | | 1,859 | | | | 12/21/2011 | | | | 1,771 | | | | 175 | |
| Australian Dollar | | MYC | | | 400 | | | | 12/21/2011 | | | | 397 | | | | 22 | |
| Australian Dollar | | MYC | | | 1,536 | | | | 12/21/2011 | | | | 1,557 | | | | 53 | |
| Canadian Dollar | | MYC | | | (2,060 | ) | | | 12/21/2011 | | | | (2,056 | ) | | | (8 | ) |
| Canadian Dollar | | MYC | | | (3,438 | ) | | | 12/21/2011 | | | | (3,303 | ) | | | (143 | ) |
| Canadian Dollar | | MYC | | | (951 | ) | | | 12/21/2011 | | | | (927 | ) | | | (26 | ) |
| Canadian Dollar | | MYC | | | (1,655 | ) | | | 12/21/2011 | | | | (1,571 | ) | | | (87 | ) |
| Canadian Dollar | | MYC | | | 1,779 | | | | 12/21/2011 | | | | 1,792 | | | | (10 | ) |
| Canadian Dollar | | MYC | | | (1,170 | ) | | | 12/21/2011 | | | | (1,151 | ) | | | (21 | ) |
| Canadian Dollar | | MYC | | | 2,582 | | | | 12/21/2011 | | | | 2,531 | | | | 56 | |
| Canadian Dollar | | MYC | | | (2,134 | ) | | | 12/21/2011 | | | | (2,065 | ) | | | (73 | ) |
| Canadian Dollar | | MYC | | | (1,339 | ) | | | 12/21/2011 | | | | (1,311 | ) | | | (31 | ) |
| Canadian Dollar | | MYC | | | (3,198 | ) | | | 12/21/2011 | | | | (3,100 | ) | | | (105 | ) |
| Canadian Dollar | | MYC | | | 2,358 | | | | 12/21/2011 | | | | 2,234 | | | | 129 | |
| Canadian Dollar | | MYC | | | 5,897 | | | | 12/21/2011 | | | | 5,968 | | | | (59 | ) |
| Canadian Dollar | | MYC | | | (2,398 | ) | | | 12/21/2011 | | | | (2,409 | ) | | | 6 | |
| Canadian Dollar | | MYC | | | (1,638 | ) | | | 12/21/2011 | | | | (1,615 | ) | | | (27 | ) |
| Canadian Dollar | | MYC | | | (2,358 | ) | | | 12/21/2011 | | | | (2,379 | ) | | | 16 | |
| Canadian Dollar | | MYC | | | 4,971 | | | | 12/21/2011 | | | | 4,925 | | | | 57 | |
| Euro | | MYC | | | (1,265 | ) | | | 12/21/2011 | | | | (1,695 | ) | | | (55 | ) |
| Euro | | MYC | | | 1,781 | | | | 12/21/2011 | | | | 2,457 | | | | 7 | |
| Euro | | MYC | | | (2,349 | ) | | | 12/21/2011 | | | | (3,263 | ) | | | 14 | |
| Euro | | MYC | | | 2,400 | | | | 12/21/2011 | | | | 3,249 | | | | 70 | |
| Euro | | MYC | | | 2,753 | | | | 12/21/2011 | | | | 3,774 | | | | 33 | |
| Euro | | MYC | | | (14,915 | ) | | | 12/21/2011 | | | | (20,827 | ) | | | 200 | |
| Euro | | MYC | | | 1,083 | | | | 12/21/2011 | | | | 1,473 | | | | 25 | |
| Euro | | MYC | | | (1,540 | ) | | | 12/21/2011 | | | | (2,184 | ) | | | 54 | |
| Euro | | MYC | | | 1,237 | | | | 12/21/2011 | | | | 1,717 | | | | (6 | ) |
| Euro | | MYC | | | 1,771 | | | | 12/21/2011 | | | | 2,454 | | | | (5 | ) |
| Euro | | MYC | | | 1,408 | | | | 12/21/2011 | | | | 1,941 | | | | 7 | |
| Euro | | MYC | | | 1,552 | | | | 12/21/2011 | | | | 2,116 | | | | 30 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 60 | | Annual Report 2011 |
Transamerica First Quadrant Global Macro
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Euro | | MYC | | | 1,659 | | | | 12/21/2011 | | | $ | 2,228 | | | $ | 67 | |
| Euro | | MYC | | | 2,809 | | | | 12/21/2011 | | | | 3,831 | | | | 54 | |
| Euro | | MYC | | | 2,175 | | | | 12/21/2011 | | | | 2,996 | | | | 12 | |
| Euro | | MYC | | | 3,474 | | | | 12/21/2011 | | | | 4,791 | | | | 13 | |
| Euro | | MYC | | | 1,616 | | | | 12/21/2011 | | | | 2,200 | | | | 35 | |
| Euro | | MYC | | | 1,462 | | | | 12/21/2011 | | | | 2,003 | | | | 19 | |
| Euro | | MYC | | | 2,195 | | | | 12/21/2011 | | | | 3,004 | | | | 32 | |
| Japanese Yen | | MYC | | | (162,307 | ) | | | 12/21/2011 | | | | (2,120 | ) | | | 41 | |
| Japanese Yen | | MYC | | | (133,788 | ) | | | 12/21/2011 | | | | (1,744 | ) | | | 30 | |
| Japanese Yen | | MYC | | | (147,808 | ) | | | 12/21/2011 | | | | (1,929 | ) | | | 36 | |
| Japanese Yen | | MYC | | | (310,662 | ) | | | 12/21/2011 | | | | (4,050 | ) | | | 72 | |
| Japanese Yen | | MYC | | | (106,907 | ) | | | 12/21/2011 | | | | (1,394 | ) | | | 25 | |
| Japanese Yen | | MYC | | | (179,472 | ) | | | 12/21/2011 | | | | (2,362 | ) | | | 64 | |
| Japanese Yen | | MYC | | | (153,284 | ) | | | 12/21/2011 | | | | (2,004 | ) | | | 41 | |
| Japanese Yen | | MYC | | | (98,817 | ) | | | 12/21/2011 | | | | (1,291 | ) | | | 25 | |
| Japanese Yen | | MYC | | | (106,595 | ) | | | 12/21/2011 | | | | (1,377 | ) | | | 12 | |
| Japanese Yen | | MYC | | | (108,027 | ) | | | 12/21/2011 | | | | (1,402 | ) | | | 19 | |
| Japanese Yen | | MYC | | | 573,548 | | | | 12/21/2011 | | | | 7,428 | | | | (84 | ) |
| New Zealand Dollar | | MYC | | | 3,053 | | | | 12/21/2011 | | | | 2,476 | | | | (16 | ) |
| New Zealand Dollar | | MYC | | | 14,767 | | | | 12/21/2011 | | | | 12,227 | | | | (329 | ) |
| New Zealand Dollar | | MYC | | | (1,306 | ) | | | 12/21/2011 | | | | (1,036 | ) | | | (17 | ) |
| New Zealand Dollar | | MYC | | | (1,414 | ) | | | 12/21/2011 | | | | (1,119 | ) | | | (20 | ) |
| New Zealand Dollar | | MYC | | | (3,689 | ) | | | 12/21/2011 | | | | (3,008 | ) | | | 35 | |
| New Zealand Dollar | | MYC | | | (1,365 | ) | | | 12/21/2011 | | | | (1,102 | ) | | | 2 | |
| New Zealand Dollar | | MYC | | | 3,496 | | | | 12/21/2011 | | | | 2,628 | | | | 189 | |
| New Zealand Dollar | | MYC | | | (2,732 | ) | | | 12/21/2011 | | | | (2,128 | ) | | | (73 | ) |
| New Zealand Dollar | | MYC | | | (2,251 | ) | | | 12/21/2011 | | | | (1,742 | ) | | | (72 | ) |
| New Zealand Dollar | | MYC | | | 3,320 | | | | 12/21/2011 | | | | 2,512 | | | | 163 | |
| New Zealand Dollar | | MYC | | | 2,955 | | | | 12/21/2011 | | | | 2,238 | | | | 143 | |
| New Zealand Dollar | | MYC | | | (2,861 | ) | | | 12/21/2011 | | | | (2,200 | ) | | | (105 | ) |
| New Zealand Dollar | | MYC | | | (2,649 | ) | | | 12/21/2011 | | | | (2,113 | ) | | | (21 | ) |
| Pound Sterling | | MYC | | | (1,008 | ) | | | 12/21/2011 | | | | (1,573 | ) | | | (46 | ) |
| Pound Sterling | | MYC | | | (823 | ) | | | 12/21/2011 | | | | (1,299 | ) | | | (24 | ) |
| Pound Sterling | | MYC | | | (1,319 | ) | | | 12/21/2011 | | | | (2,044 | ) | | | (76 | ) |
| Pound Sterling | | MYC | | | (1,388 | ) | | | 12/21/2011 | | | | (2,138 | ) | | | (93 | ) |
| Pound Sterling | | MYC | | | 1,025 | | | | 12/21/2011 | | | | 1,584 | | | | 63 | |
| Pound Sterling | | MYC | | | 2,400 | | | | 12/21/2011 | | | | 3,747 | | | | 109 | |
| Pound Sterling | | MYC | | | (1,141 | ) | | | 12/21/2011 | | | | (1,760 | ) | | | (74 | ) |
| Pound Sterling | | MYC | | | 19,197 | | | | 12/21/2011 | | | | 30,715 | | | | 135 | |
| Pound Sterling | | MYC | | | 935 | | | | 12/21/2011 | | | | 1,442 | | | | 60 | |
| Pound Sterling | | MYC | | | (7,428 | ) | | | 12/21/2011 | | | | (11,684 | ) | | | (253 | ) |
| Pound Sterling | | MYC | | | (874 | ) | | | 12/21/2011 | | | | (1,376 | ) | | | (29 | ) |
| Pound Sterling | | MYC | | | 3,145 | | | | 12/21/2011 | | | | 5,041 | | | | 13 | |
| Pound Sterling | | MYC | | | 1,456 | | | | 12/21/2011 | | | | 2,249 | | | | 90 | |
| Pound Sterling | | MYC | | | (693 | ) | | | 12/21/2011 | | | | (1,090 | ) | | | (24 | ) |
| Pound Sterling | | MYC | | | (537 | ) | | | 12/21/2011 | | | | (864 | ) | | | 1 | |
| Pound Sterling | | MYC | | | 1,049 | | | | 12/21/2011 | | | | 1,638 | | | | 48 | |
| Swedish Krona | | MYC | | | 19,408 | | | | 12/21/2011 | | | | 2,930 | | | | 39 | |
| Swedish Krona | | MYC | | | (8,385 | ) | | | 12/21/2011 | | | | (1,240 | ) | | | (43 | ) |
| Swedish Krona | | MYC | | | (17,371 | ) | | | 12/21/2011 | | | | (2,689 | ) | | | 32 | |
| Swedish Krona | | MYC | | | 56,812 | | | | 12/21/2011 | | | | 8,855 | | | | (162 | ) |
| Swedish Krona | | MYC | | | 7,768 | | | | 12/21/2011 | | | | 1,120 | | | | 68 | |
| Swedish Krona | | MYC | | | (12,427 | ) | | | 12/21/2011 | | | | (1,858 | ) | | | (44 | ) |
| Swedish Krona | | MYC | | | (7,522 | ) | | | 12/21/2011 | | | | (1,100 | ) | | | (51 | ) |
| Swedish Krona | | MYC | | | 10,641 | | | | 12/21/2011 | | | | 1,566 | | | | 62 | |
| Swedish Krona | | MYC | | | (14,790 | ) | | | 12/21/2011 | | | | (2,226 | ) | | | (37 | ) |
| Swedish Krona | | MYC | | | 26,407 | | | | 12/21/2011 | | | | 4,007 | | | | 34 | |
| Swedish Krona | | MYC | | | (9,608 | ) | | | 12/21/2011 | | | | (1,444 | ) | | | (26 | ) |
| Swiss Franc | | MYC | | | 1,354 | | | | 12/21/2011 | | | | 1,528 | | | | 16 | |
| Swiss Franc | | MYC | | | (939 | ) | | | 12/21/2011 | | | | (1,070 | ) | | | (♦ | ) |
| Swiss Franc | | MYC | | | (1,770 | ) | | | 12/21/2011 | | | | (1,969 | ) | | | (49 | ) |
| Swiss Franc | | MYC | | | 2,205 | | | | 12/21/2011 | | | | 2,392 | | | | 123 | |
| Swiss Franc | | MYC | | | 1,939 | | | | 12/21/2011 | | | | 2,112 | | | | 99 | |
| Swiss Franc | | MYC | | | 1,778 | | | | 12/21/2011 | | | | 1,933 | | | | 95 | |
| Swiss Franc | | MYC | | | (3,507 | ) | | | 12/21/2011 | | | | (3,891 | ) | | | (108 | ) |
| Swiss Franc | | MYC | | | (25,661 | ) | | | 12/21/2011 | | | | (29,634 | ) | | | 374 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 61 | | Annual Report 2011 |
Transamerica First Quadrant Global Macro
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Swiss Franc | | MYC | | | (1,428 | ) | | | 12/21/2011 | | | $ | (1,629 | ) | | $ | (♦ | ) |
| Swiss Franc | | MYC | | | (1,246 | ) | | | 12/21/2011 | | | | (1,374 | ) | | | (47 | ) |
| Swiss Franc | | MYC | | | (1,747 | ) | | | 12/21/2011 | | | | (2,010 | ) | | | 18 | |
| Swiss Franc | | MYC | | | (2,005 | ) | | | 12/21/2011 | | | | (2,269 | ) | | | (17 | ) |
| Swiss Franc | | MYC | | | 6,044 | | | | 12/21/2011 | | | | 6,959 | | | | (66 | ) |
| Swiss Franc | | MYC | | | (641 | ) | | | 12/21/2011 | | | | (716 | ) | | | (15 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 1,291 | |
| | | | | | | | | | | | | | | | | | | | |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| MYC | | $ | 1,291 | | | $ | 16,498 | | | $ | 17,789 | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| γ | | A portion of these securities in the amount of $19,208 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| ■ | | A portion of these securities in the amount of $16,498, has been segregated with the broker to cover open written options. |
| |
| Π | | Aggregate cost for federal income tax purposes is $139,053. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $806 and $1,169, respectively. Net unrealized depreciation for tax purposes is $363. |
| |
| Г | | Contract amounts are not in thousands. |
DEFINITIONS :
| | |
| MYC | | Morgan Stanley Capital Services |
VALUATION SUMMARY (all amounts in thousands):Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Purchased Options | | $ | 2,352 | | | $ | — | | | $ | — | | | $ | 2,352 | |
| Repurchase Agreement | | | — | | | | 88,345 | | | | — | | | | 88,345 | |
| Short-Term U.S. Government Obligations | | | — | | | | 47,993 | | | | — | | | | 47,993 | |
Total | | $ | 2,352 | | | $ | 136,338 | | | $ | — | | | $ | 138,690 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Written Options | | $ | — | | | $ | (1,988 | ) | | $ | — | | | $ | (1,988 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial InstrumentsF | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Futures Contracts — Appreciation | | $ | 2,018 | | | $ | — | | | $ | — | | | $ | 2,018 | |
| Futures Contracts — Depreciation | | | (407 | ) | | | — | | | | — | | | | (407 | ) |
| Forward Contracts — Appreciation | | | | | | | 4,350 | | | | — | | | | 4,350 | |
| Forward Contracts — Depreciation | | | — | | | | (3,059 | ) | | | — | | | | (3,059 | ) |
Total | | $ | 1,611 | | | $ | 1,291 | | | $ | — | | | $ | 2,902 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 62 | | Annual Report 2011 |
Transamerica Hansberger international Value
(formerly, Transamerica AllianceBernstein International Value)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCK — 1.2% | | | | | | | | |
Germany — 1.2% | | | | | | | | |
| Henkel AG & Co., KGaA , 1.68% ▲ | | | 30,671 | | | $ | 1,823 | |
Total Preferred Stock (cost $1,885) | | | | | | | | |
COMMON STOCKS — 97.1% | | | | | | | | |
Australia — 2.9% | | | | | | | | |
| Commonwealth Bank of Australia ^ | | | 41,156 | | | | 2,114 | |
| Westpac Banking Corp. ^ | | | 110,089 | | | | 2,556 | |
Bermuda — 0.9% | | | | | | | | |
| GOME Electrical Appliances Holdings, Ltd. | | | 4,784,000 | | | | 1,473 | |
Brazil — 4.8% | | | | | | | | |
| Banco Bradesco SA ADR ^ | | | 43,433 | | | | 790 | |
| Cia Energetica de Minas Gerais ADR ^ | | | 112,041 | | | | 1,909 | |
| Gafisa SA ADR ^ | | | 194,693 | | | | 1,449 | |
| Petroleo Brasileiro SA ADR | | | 62,976 | | | | 1,701 | |
| Vale SA — Class B ADR ^ | | | 75,732 | | | | 1,787 | |
Canada — 6.2% | | | | | | | | |
| Bank of Nova Scotia | | | 52,053 | | | | 2,744 | |
| Canadian National Railway Co. | | | 35,615 | | | | 2,793 | |
| Suncor Energy, Inc. | | | 63,691 | | | | 2,032 | |
| Teck Resources, Ltd. — Class B | | | 53,628 | | | | 2,150 | |
Cayman Islands — 2.4% | | | | | | | | |
| China State Construction International Holdings, Ltd. | | | 4,654,800 | | | | 3,585 | |
| China ZhengTong Auto Services Holdings, Ltd. ‡ | | | 117,500 | | | | 127 | |
China — 6.5% | | | | | | | | |
| China Construction Bank Corp. — Class H | | | 2,979,000 | | | | 2,189 | |
| China Shenhua Energy Co., Ltd. — Class H | | | 512,000 | | | | 2,342 | |
| Guangzhou Automobile Group Co., Ltd. | | | 656,000 | | | | 655 | |
| Ping An Insurance Group Co. — Class H | | | 245,500 | | | | 1,819 | |
| Weichai Power Co., Ltd. | | | 643,000 | | | | 3,228 | |
France — 5.8% | | | | | | | | |
| BNP Paribas SA | | | 48,147 | | | | 2,150 | |
| Faurecia | | | 54,345 | | | | 1,437 | |
| GDF Suez | | | 47,458 | | | | 1,337 | |
| Sanofi | | | 28,750 | | | | 2,057 | |
| Total SA | | | 38,739 | | | | 2,021 | |
Germany — 5.7% | | | | | | | | |
| Adidas AG | | | 30,334 | | | | 2,136 | |
| Bayer AG | | | 28,812 | | | | 1,836 | |
| SAP AG | | | 40,137 | | | | 2,427 | |
| Siemens AG | | | 22,047 | | | | 2,311 | |
Hong Kong — 2.2% | | | | | | | | |
| China Overseas Land & Investment, Ltd. | | | 996,000 | | | | 1,848 | |
| Wing Hang Bank, Ltd. | | | 172,000 | | | | 1,555 | |
India — 2.1% | | | | | | | | |
| ICICI Bank, Ltd. ADR ^ | | | 39,620 | | | | 1,472 | |
| Infosys, Ltd. ADR ^ | | | 31,813 | | | | 1,864 | |
Italy — 1.3% | | | | | | | | |
| ENI SpA | | | 93,095 | | | | 2,058 | |
Japan — 16.0% | | | | | | | | |
| Asahi Glass Co., Ltd. ^ | | | 141,000 | | | | 1,235 | |
| Astellas Pharma, Inc. | | | 60,200 | | | | 2,202 | |
| Bank of Yokohama, Ltd. ^ | | | 331,000 | | | | 1,515 | |
| Canon, Inc. | | | 59,500 | | | | 2,701 | |
| Fanuc Corp. | | | 18,500 | | | | 2,991 | |
| Mitsui & Co., Ltd. | | | 157,800 | | | | 2,303 | |
| Nintendo Co., Ltd. | | | 11,500 | | | | 1,735 | |
| Shin-Etsu Chemical Co., Ltd. | | | 50,800 | | | | 2,609 | |
| Sumitomo Corp. ^ | | | 127,200 | | | | 1,575 | |
| Sumitomo Mitsui Trust Holdings, Inc. ^ | | | 582,999 | | | | 1,995 | |
| THK Co., Ltd. ^ | | | 92,500 | | | | 1,803 | |
| Yamada Denki Co., Ltd. ^ | | | 28,690 | | | | 2,063 | |
Jersey, Channel Islands — 1.1% | | | | | | | | |
| WPP PLC | | | 162,354 | | | | 1,681 | |
Korea, Republic of — 2.4% | | | | | | | | |
| KB Financial Group, Inc. | | | 37,305 | | | | 1,445 | |
| Samsung Electronics Co., Ltd. | | | 2,630 | | | | 2,264 | |
Luxembourg — 3.0% | | | | | | | | |
| ArcelorMittal | | | 79,533 | | | | 1,649 | |
| Evraz Group SA GDR ^ | | | 69,892 | | | | 1,238 | |
| Subsea 7 SA ‡ ^ | | | 82,018 | | | | 1,769 | |
Russian Federation — 4.3% | | | | | | | | |
| Gazprom OAO ADR ^ | | | 165,260 | | | | 1,919 | |
| Lukoil OAO ADR | | | 27,313 | | | | 1,576 | |
| MMC Norilsk Nickel OJSC ADR ^ | | | 75,133 | | | | 1,470 | |
| Sberbank of Russian Federation | | | 658,976 | | | | 1,808 | |
Singapore — 1.3% | | | | | | | | |
| DBS Group Holdings, Ltd. ^ | | | 205,000 | | | | 2,002 | |
South Africa — 1.7% | | | | | | | | |
| MTN Group, Ltd. | | | 154,912 | | | | 2,693 | |
Spain — 0.8% | | | | | | | | |
| Banco Santander SA | | | 152,794 | | | | 1,293 | |
Sweden — 1.1% | | | | | | | | |
| Sandvik AB | | | 128,707 | | | | 1,769 | |
Switzerland — 7.3% | | | | | | | | |
| ABB, Ltd. ‡ | | | 115,556 | | | | 2,175 | |
| Credit Suisse Group AG ‡ | | | 52,610 | | | | 1,518 | |
| Nestle SA | | | 61,875 | | | | 3,579 | |
| Novartis AG | | | 30,180 | | | | 1,700 | |
| Roche Holding AG | | | 13,956 | | | | 2,289 | |
Taiwan — 1.8% | | | | | | | | |
| High Tech Computer Corp. | | | 55,000 | | | | 1,236 | |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 127,093 | | | | 1,604 | |
United Kingdom — 15.5% | | | | | | | | |
| Barclays PLC | | | 703,885 | | | | 2,182 | |
| BHP Billiton PLC | | | 79,164 | | | | 2,494 | |
| BP PLC | | | 236,250 | | | | 1,739 | |
| Eurasian Natural Resources Corp., PLC | | | 151,276 | | | | 1,593 | |
| GlaxoSmithKline PLC | | | 93,363 | | | | 2,095 | |
| HSBC Holdings PLC | | | 174,800 | | | | 1,528 | |
| ICAP PLC | | | 224,096 | | | | 1,445 | |
| Lloyds TSB Group PLC ‡ | | | 2,787,514 | | | | 1,441 | |
| Standard Chartered PLC | | | 70,036 | | | | 1,634 | |
| Tesco PLC | | | 321,331 | | | | 2,072 | |
| Unilever PLC | | | 114,460 | | | | 3,836 | |
| Vodafone Group PLC | | | 934,589 | | | | 2,595 | |
| | | | | | | | |
Total Common Stocks (cost $173,543) | | | | | | | 152,010 | |
| | | | | | | | |
SECURITIES LENDING COLLATERAL — 12.6% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 19,754,150 | | | | 19,754 | |
Total Securities Lending Collateral (Cost 19,754) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT-1.1% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $1,776 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 12/25/2024, with a value of $1,812. | | $ | 1,776 | | | | 1,776 | |
Total Repurchase Agreement (cost $1,776) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $196,958) п | | | | | | | 175,363 | |
| Other Assets and Liabilities — Net | | | | | | | (18,763 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 156,600 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 63 | | Annual Report 2011 |
Transamerica Hansberger international Value
(formerly, Transamerica AllianceBernstein International Value)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY(unaudited): | | Total Investments | | | (000’s) | |
| |
| Commercial Banks | | | 18.5 | % | | $ | 32,414 | |
| Oil, Gas & Consumable Fuels | | | 8.8 | | | | 15,388 | |
| Metals & Mining | | | 7.1 | | | | 12,381 | |
| Pharmaceuticals | | | 6.9 | | | | 12,179 | |
| Machinery | | | 5.6 | | | | 9,791 | |
| Food Products | | | 4.2 | | | | 7,415 | |
| Wireless Telecommunication Services | | | 3.0 | | | | 5,288 | |
| Software | | | 2.4 | | | | 4,162 | |
| Trading Companies & Distributors | | | 2.2 | | | | 3,878 | |
| Semiconductors & Semiconductor Equipment | | | 2.2 | | | | 3,868 | |
| Construction & Engineering | | | 2.0 | | | | 3,585 | |
| Specialty Retail | | | 2.0 | | | | 3,536 | |
| Capital Markets | | | 1.7 | | | | 2,963 | |
| Road & Rail | | | 1.6 | | | | 2,793 | |
| Office Electronics | | | 1.5 | | | | 2,701 | |
| Chemicals | | | 1.5 | | | | 2,609 | |
| Industrial Conglomerates | | | 1.3 | | | | 2,311 | |
| Electrical Equipment | | | 1.2 | | | | 2,175 | |
| Textiles, Apparel & Luxury Goods | | | 1.2 | | | | 2,136 | |
| Food & Staples Retailing | | | 1.2 | | | | 2,072 | |
| Electric Utilities | | | 1.1 | | | | 1,909 | |
| IT Services | | | 1.1 | | | | 1,864 | |
| Real Estate Management & Development | | | 1.1 | | | | 1,848 | |
| Household Products | | | 1.0 | | | | 1,823 | |
| Insurance | | | 1.0 | | | | 1,819 | |
| Energy Equipment & Services | | | 1.0 | | | | 1,769 | |
| Media | | | 1.0 | | | | 1,681 | |
| Household Durables | | | 0.8 | | | | 1,448 | |
| Auto Components | | | 0.8 | | | | 1,437 | |
| Multi-Utilities | | | 0.8 | | | | 1,337 | |
| Communications Equipment | | | 0.7 | | | | 1,236 | |
| Building Products | | | 0.7 | | | | 1,235 | |
| Automobiles | | | 0.5 | | | | 782 | |
| | | | | | | |
| Investment Securities, at Value | | | 87.7 | | | | 153,833 | |
| Short-Term Investments | | | 12.3 | | | | 21,530 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 175,363 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS: (all amounts in thousands)
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $18,962. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $199,705. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,890 and $26,232, respectively. Net unrealized depreciation for tax purposes is $24,342. |
DEFINITIONS:
| | |
| ADR | | American Depositary Receipt |
| |
| GDR | | Global Depositary Receipt |
| |
| OAO | | Otkrytoe Aktsionernoe Obschesto (Russian: Open Joint Stock Corporation) |
| |
| OJSC | | Open Joint Stock Company |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1- | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 22,541 | | | $ | 129,469 | | | $ | — | | | $ | 152,010 | |
| Preferred Stock | | | — | | | | 1,823 | | | | — | | | | 1,823 | |
| Repurchase Agreement | | | — | | | | 1,776 | | | | — | | | | 1,776 | |
| Securities Lending Collateral | | | 19,754 | | | | — | | | | — | | | | 19,754 | |
Total | | $ | 42,295 | | | $ | 133,068 | | | $ | — | | | $ | 175,363 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 64 | | Annual Report 2011 |
Transamerica ICAP Select Equity
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 97.0% | | | | | | | | |
Aerospace & Defense — 4.2% | | | | | | | | |
| Honeywell International, Inc. | | | 750,250 | | | $ | 39,313 | |
Auto Components — 3.5% | | | | | | | | |
| Johnson Controls, Inc. | | | 988,050 | | | | 32,536 | |
Beverages — 5.0% | | | | | | | | |
| Coca-Cola Co. | | | 392,800 | | | | 26,836 | |
| PepsiCo, Inc. | | | 324,650 | | | | 20,437 | |
Capital Markets — 2.0% | | | | | | | | |
| BlackRock, Inc. — Class A | | | 121,250 | | | | 19,132 | |
Chemicals — 1.6% | | | | | | | | |
| Monsanto Co. | | | 208,650 | | | | 15,179 | |
Commercial Banks — 5.5% | | | | | | | | |
| BB&T Corp. | | | 903,650 | | | | 21,091 | |
| Wells Fargo & Co. | | | 1,169,100 | | | | 30,292 | |
Communications Equipment — 3.9% | | | | | | | | |
| Cisco Systems, Inc. | | | 1,969,950 | | | | 36,503 | |
Diversified Financial Services — 4.7% | | | | | | | | |
| JPMorgan Chase & Co. | | | 1,275,000 | | | | 44,319 | |
Food Products — 2.1% | | | | | | | | |
| Archer-Daniels-Midland Co. | | | 673,500 | | | | 19,491 | |
Health Care Equipment & Supplies — 2.1% | | | | | | | | |
| Covidien PLC | | | 408,150 | | | | 19,199 | |
Household Products — 5.2% | | | | | | | | |
| Procter & Gamble Co. | | | 756,400 | | | | 48,402 | |
Insurance — 3.3% | | | | | | | | |
| MetLife, Inc. | | | 880,700 | | | | 30,965 | |
Media — 8.3% | | | | | | | | |
| Time Warner, Inc. | | | 1,308,700 | | | | 45,791 | |
| Viacom, Inc. — Class B | | | 722,600 | | | | 31,686 | |
Oil, Gas & Consumable Fuels — 11.3% | | | | | | | | |
| Exxon Mobil Corp. | | | 555,400 | | | | 43,372 | |
| Marathon Petroleum Corp. | | | 280,800 | | | | 10,081 | |
| Occidental Petroleum Corp. | | | 453,400 | | | | 42,139 | |
| Southwestern Energy Co. ‡ | | | 251,650 | | | | 10,579 | |
Pharmaceuticals — 16.2% | | | | | | | | |
| Johnson & Johnson | | | 618,450 | | | | 39,822 | |
| Merck & Co., Inc. | | | 898,700 | | | | 31,005 | |
| Pfizer, Inc. | | | 3,197,350 | | | | 61,582 | |
| Sanofi ADR | | | 547,700 | | | | 19,580 | |
Semiconductors & Semiconductor Equipment — 5.6% | | | | | | | | |
| Applied Materials, Inc. | | | 1,641,650 | | | | 20,225 | |
| Texas Instruments, Inc. | | | 1,049,400 | | | | 32,248 | |
Software — 6.3% | | | | | | | | |
| Microsoft Corp. | | | 2,221,650 | | | | 59,163 | |
Specialty Retail — 1.6% | | | | | | | | |
| Lowe’s Cos., Inc. | | | 697,700 | | | | 14,666 | |
Wireless Telecommunication Services — 4.6% | | | | | | | | |
| Vodafone Group PLC ADR | | | 1,537,350 | | | | 42,800 | |
| | | | | | | | |
Total Common Stocks (cost $881,366) | | | | | | | 908,434 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT-9.2% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $85,998 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 06/15/2040, with a value of $87,719. | | $ | 85,998 | | | | 85,998 | |
Total Repurchase Agreement (cost $85,998) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $967,364) п | | | | | | | 994,432 | |
| Other Assets and Liabilities — Net | | | | | | | (58,153 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 936,279 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $967,705. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $31,170 and $4,443, respectively. Net unrealized appreciation for tax purposes is $26,727. |
DEFINITION:
| | |
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 826,855 | | | $ | 81,579 | | | $ | — | | | $ | 908,434 | |
| Repurchase Agreement | | | — | | | | 85,998 | | | | — | | | | 85,998 | |
Total | | $ | 826,855 | | | $ | 167,577 | | | $ | — | | | $ | 994,432 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 65 | | Annual Report 2011 |
Transamerica Jennison Growth
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 98.7% | | | | | | | | |
Aerospace & Defense — 5.2% | | | | | | | | |
| Boeing Co. | | | 126,165 | | | $ | 8,300 | |
| Precision Castparts Corp. | | | 88,997 | | | | 14,521 | |
| United Technologies Corp. | | | 122,358 | | | | 9,541 | |
Auto Components — 1.2% | | | | | | | | |
| BorgWarner, Inc. ‡ ^ | | | 94,402 | | | | 7,221 | |
Automobiles — 1.5% | | | | | | | | |
| Bayerische Motoren Werke AG | | | 54,237 | | | | 4,406 | |
| Harley-Davidson, Inc. ^ | | | 124,299 | | | | 4,835 | |
Biotechnology — 2.9% | | | | | | | | |
| Alexion Pharmaceuticals, Inc. ‡ | | | 50,431 | | | | 3,405 | |
| Celgene Corp. ‡ | | | 175,019 | | | | 11,346 | |
| Vertex Pharmaceuticals, Inc. ‡ | | | 76,330 | | | | 3,022 | |
Capital Markets — 1.3% | | | | | | | | |
| Goldman Sachs Group, Inc. | | | 44,405 | | | | 4,865 | |
| Morgan Stanley | | | 182,258 | | | | 3,215 | |
Chemicals — 3.1% | | | | | | | | |
| E.I. du Pont de Nemours & Co. | | | 110,481 | | | | 5,311 | |
| Monsanto Co. | | | 188,199 | | | | 13,691 | |
Communications Equipment — 2.0% | | | | | | | | |
| Juniper Networks, Inc. ‡ | | | 115,485 | | | | 2,826 | |
| QUALCOMM, Inc. | | | 188,759 | | | | 9,740 | |
Computers & Peripherals — 8.4% | | | | | | | | |
| Apple, Inc. ‡ | | | 82,637 | | | | 33,449 | |
| EMC Corp. ‡ | | | 506,817 | | | | 12,422 | |
| NetApp, Inc. ‡ | | | 158,928 | | | | 6,510 | |
Consumer Finance — 2.1% | | | | | | | | |
| American Express Co. | | | 257,022 | | | | 13,010 | |
Energy Equipment & Services — 3.0% | | | | | | | | |
| National Oilwell Varco, Inc. | | | 102,212 | | | | 7,291 | |
| Schlumberger, Ltd. | | | 151,832 | | | | 11,155 | |
Food & Staples Retailing — 3.2% | | | | | | | | |
| Costco Wholesale Corp. | | | 123,750 | | | | 10,302 | |
| Whole Foods Market, Inc. | | | 131,005 | | | | 9,448 | |
Food Products — 1.2% | | | | | | | | |
| Mead Johnson Nutrition Co. — Class A | | | 105,245 | | | | 7,562 | |
Health Care Providers & Services — 1.6% | | | | | | | | |
| Express Scripts, Inc. ‡ | | | 218,113 | | | | 9,974 | |
Hotels, Restaurants & Leisure — 5.8% | | | | | | | | |
| Arcos Dorados Holdings, Inc. — Class A | | | 115,279 | | | | 2,698 | |
| Chipotle Mexican Grill, Inc. — Class A ‡ ^ | | | 28,640 | | | | 9,626 | |
| McDonald’s Corp. | | | 114,175 | | | | 10,601 | |
| Starbucks Corp. | | | 302,794 | | | | 12,820 | |
Internet & Catalog Retail — 5.3% | | | | | | | | |
| Amazon.com, Inc. ‡ | | | 124,350 | | | | 26,550 | |
| priceline.com, Inc. ‡ | | | 12,156 | | | | 6,172 | |
Internet Software & Services — 4.9% | | | | | | | | |
| Baidu, Inc. ADR ‡ | | | 85,382 | | | | 11,969 | |
| Google, Inc. — Class A ‡ | | | 23,281 | | | | 13,796 | |
| Tencent Holdings, Ltd. | | | 159,235 | | | | 3,665 | |
| Youku.com, Inc. ADR ‡ ^ | | | 38,068 | | | | 809 | |
IT Services — 6.6% | | | | | | | | |
| Cognizant Technology Solutions Corp. - | | | | | | | | |
| Class A ‡ | | | 70,258 | | | | 5,111 | |
| International Business Machines Corp. | | | 98,319 | | | | 18,153 | |
| Mastercard, Inc. — Class A | | | 50,594 | | | | 17,568 | |
Life Sciences Tools & Services — 1.7% | | | | | | | | |
| Agilent Technologies, Inc. ‡ | | | 200,464 | | | | 7,432 | |
| Illumina, Inc. ‡ ^ | | | 102,886 | | | | 3,150 | |
Machinery — 0.5% | | | | | | | | |
| Deere & Co. | | | 42,856 | | | | 3,253 | |
Media — 1.3% | | | | | | | | |
| Walt Disney Co. | | | 226,680 | | | | 7,907 | |
Oil, Gas & Consumable Fuels — 3.9% | | | | | | | | |
| Anadarko Petroleum Corp. | | | 78,301 | | | | 6,147 | |
| Concho Resources, Inc.‡ | | | 63,424 | | | | 6,008 | |
| EOG Resources, Inc. | | | 54,057 | | | | 4,834 | |
| Occidental Petroleum Corp. | | | 74,749 | | | | 6,947 | |
Personal Products — 1.4% | | | | | | | | |
| Estee Lauder Cos., Inc. — Class A | | | 88,349 | | | | 8,698 | |
Pharmaceuticals — 7.1% | | | | | | | | |
| Allergan, Inc. | | | 122,729 | | | | 10,324 | |
| Bristol-Myers Squibb Co. | | | 208,450 | | | | 6,585 | |
| Johnson & Johnson | | | 110,932 | | | | 7,143 | |
| Novo Nordisk A/S ADR | | | 83,814 | | | | 8,909 | |
| Shire PLC ADR | | | 113,882 | | | | 10,739 | |
Road & Rail — 1.1% | | | | | | | | |
| Union Pacific Corp. | | | 66,822 | | | | 6,653 | |
Semiconductors & Semiconductor Equipment — 2.6% | | | | | | | | |
| Altera Corp. | | | 90,924 | | | | 3,448 | |
| ARM Holdings PLC ADR | | | 126,539 | | | | 3,554 | |
| Avago Technologies, Ltd. | | | 176,967 | | | | 5,977 | |
| Broadcom Corp. — Class A ‡ | | | 93,049 | | | | 3,358 | |
Software — 7.8% | | | | | | | | |
| Oracle Corp. | | | 549,813 | | | | 18,018 | |
| Red Hat, Inc. ‡ | | | 142,084 | | | | 7,054 | |
| Salesforce.com, Inc. ‡ ^ | | | 92,269 | | | | 12,288 | |
| VMware, Inc. — Class A ‡ | | | 110,560 | | | | 10,807 | |
Specialty Retail — 2.4% | | | | | | | | |
| Bed Bath & Beyond, Inc. ‡ | | | 101,460 | | | | 6,274 | |
| Inditex SA ^ | | | 33,451 | | | | 3,037 | |
| Tiffany & Co. ^ | | | 67,263 | | | | 5,363 | |
Textiles, Apparel & Luxury Goods — 8.0% | | | | | | | | |
| Burberry Group PLC | | | 262,903 | | | | 5,644 | |
| Coach, Inc. | | | 104,495 | | | | 6,799 | |
| Lululemon Athletica, Inc. ‡ ^ | | | 103,692 | | | | 5,857 | |
| LVMH Moet Hennessy Louis Vuitton SA ADR | | | 191,297 | | | | 6,313 | |
| Nike, Inc. — Class B | | | 128,993 | | | | 12,428 | |
| Ralph Lauren Corp. — Class A ^ | | | 79,460 | | | | 12,617 | |
Wireless Telecommunication Services — 1.6% | | | | | | | | |
| American Tower Corp. — Class A ‡ | | | 182,519 | | | | 10,057 | |
| | | | | | | |
Total Common Stocks (cost $451,376) | | | | | | | 610,528 | |
| | | | | | | | |
SECURITIES LENDING COLLATERAL — 4.5% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 27,848,700 | | | | 27,849 | |
Total Securities Lending Collateral (cost $27,849) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT — 1.6% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $9,829 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 04/01/2025, with a value of $10,027. | | $ | 9,829 | | | | 9,829 | |
Total Repurchase Agreement (cost $9,829) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $489,054) п | | | | | | | 648,206 | |
| Other Assets and Liabilities — Net | | | | | | | (29,439 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 618,767 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 66 | | Annual Report 2011 |
Transamerica Jennison Growth
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $27,262. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $493,995. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $159,593 and $5,382, respectively. Net unrealized appreciation for tax purposes is $154,211. |
DEFINITION:
| | |
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2— | | | | | | | |
| | | | | | | Other | | | Level 3— | | | | |
| | | Level 1— | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 561,949 | | | $ | 48,579 | | | $ | — | | | $ | 610,528 | |
| Repurchase Agreement | | | — | | | | 9,829 | | | | — | | | | 9,829 | |
| Securities Lending Collateral | | | 27,849 | | | | — | | | | — | | | | 27,849 | |
Total | | $ | 589,798 | | | $ | 58,408 | | | $ | — | | | $ | 648,206 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 67 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT OBLIGATIONS—18.9% | | | | | | | | |
| U.S. Treasury Bond | | | | | | | | |
| 2.75%, 02/28/2018 ^ | | $ | 5,000 | | | $ | 5,409 | |
| 4.50%, 02/15/2036 | | | 7,650 | | | | 9,486 | |
| 4.75%, 02/15/2037 ^ | | | 600 | | | | 772 | |
| 5.38%, 02/15/2031 | | | 3,000 | | | | 4,080 | |
| 5.50%, 08/15/2028 ^ | | | 800 | | | | 1,084 | |
| 6.00%, 02/15/2026 ^ | | | 200 | | | | 279 | |
| 6.13%, 11/15/2027 ^ | | | 350 | | | | 501 | |
| 6.25%, 05/15/2030 | | | 1,200 | | | | 1,778 | |
| 6.38%, 08/15/2027 ^ | | | 50 | | | | 73 | |
| 6.50%, 11/15/2026 | | | 600 | | | | 879 | |
| 6.63%, 02/15/2027 | | | 150 | | | | 223 | |
| 6.75%, 08/15/2026 | | | 1,250 | | | | 1,866 | |
| 7.50%, 11/15/2016 - 11/15/2024 | | | 12,250 | | | | 16,392 | |
| 8.13%, 08/15/2019 ^ | | | 9,783 | | | | 14,372 | |
| 8.50%, 02/15/2020 ^ | | | 50 | | | | 76 | |
| 8.75%, 08/15/2020 | | | 1,600 | | | | 2,484 | |
| 8.75%, 05/15/2020 ^ | | | 1,500 | | | | 2,316 | |
| 8.88%, 08/15/2017 ^ | | | 21,305 | | | | 30,451 | |
| U.S. Treasury Inflation Indexed Bond | | | | | | | | |
| 2.50%, 01/15/2029 ^ | | | 2,638 | | | | 3,455 | |
| U.S. Treasury Note | | | | | | | | |
| 1.38%, 11/15/2012 ^ | | | 20,000 | | | | 20,247 | |
| 1.50%, 08/31/2018 | | | 2,000 | | | | 1,991 | |
| 2.00%, 04/30/2016 ^ | | | 3,000 | | | | 3,153 | |
| 2.13%, 05/31/2015 - 12/31/2015 | | | 7,535 | | | | 7,959 | |
| 2.38%, 02/28/2015 | | | 300 | | | | 318 | |
| 2.63%, 04/30/2016 | | | 6,815 | | | | 7,347 | |
| 2.75%, 05/31/2017 | | | 5,580 | | | | 6,050 | |
| 2.88%, 03/31/2018 ^ | | | 1,425 | | | | 1,551 | |
| 3.00%, 09/30/2016 | | | 1,000 | | | | 1,097 | |
| 3.13%, 09/30/2013 - 05/15/2019 ^ | | | 44,227 | | | | 47,811 | |
| 3.13%, 10/31/2016 | | | 8,200 | | | | 9,041 | |
| 3.25%, 12/31/2016 ^ | | | 30,450 | | | | 33,792 | |
| 3.25%, 03/31/2017 | | | 2,300 | | | | 2,554 | |
| 3.38%, 11/15/2019 ^ | | | 6,500 | | | | 7,261 | |
| 3.88%, 05/15/2018 | | | 3,330 | | | | 3,831 | |
| 4.13%, 05/15/2015 | | | 3,100 | | | | 3,488 | |
| 4.25%, 11/15/2017 | | | 1,250 | | | | 1,464 | |
| 4.50%, 11/30/2011 ^ | | | 15,000 | | | | 15,053 | |
| 4.50%, 05/15/2017 | | | 6,180 | | | | 7,287 | |
| 4.75%, 08/15/2017 ^ | | | 7,630 | | | | 9,130 | |
| 6.13%, 08/15/2029 | | | 1,000 | | | | 1,453 | |
| U.S. Treasury STRIPS ▲ | | | | | | | | |
| 0.32%, 02/15/2014 | | | 3,900 | | | | 3,869 | |
| 0.34%, 05/15/2014 | | | 5,400 | | | | 5,348 | |
| 0.38%, 08/15/2014 ^ | | | 4,000 | | | | 3,955 | |
| 0.57%, 02/15/2015 ^ | | | 5,100 | | | | 4,999 | |
| 0.88%, 05/15/2016 | | | 200 | | | | 192 | |
| 1.07%, 11/15/2016 ^ | | | 150 | | | | 142 | |
| 1.15%, 02/15/2017 | | | 3,960 | | | | 3,717 | |
| 1.30%, 08/15/2017 ^ | | | 300 | | | | 277 | |
| 1.38%, 11/15/2017 | | | 3,625 | | | | 3,324 | |
| 1.48%, 02/15/2018 ^ | | | 2,500 | | | | 2,270 | |
| 1.62%, 08/15/2018 | | | 550 | | | | 491 | |
| 1.81%, 05/15/2019 | | | 3,090 | | | | 2,684 | |
| 1.87%, 08/15/2019 ^ | | | 2,550 | | | | 2,194 | |
| 2.07%, 05/15/2020 ^ | | | 45,173 | | | | 37,658 | |
| 2.15%, 08/15/2020 ^ | | | 29,150 | | | | 24,025 | |
| 2.19%, 11/15/2020 ^ | | | 2,200 | | | | 1,796 | |
| 2.35%, 08/15/2021 ^ | | | 10,400 | | | | 8,222 | |
| 2.43%, 02/15/2022 | | | 400 | | | | 310 | |
| 2.75%, 02/15/2024 | | | 75 | | | | 53 | |
| 2.78%, 05/15/2024 | | | 300 | | | | 210 | |
| 2.82%, 08/15/2024 | | | 975 | | | | 676 | |
| 2.85%, 11/15/2024 ^ | | | 1,600 | | | | 1,097 | |
| 2.88%, 02/15/2025 ^ | | | 1,150 | | | | 779 | |
| 2.91%, 05/15/2025 | | | 700 | | | | 469 | |
| 2.94%, 08/15/2025 ^ | | | 400 | | | | 265 | |
| 3.02%, 05/15/2026 | | | 600 | | | | 385 | |
| 3.04%, 08/15/2026 ^ | | | 1,000 | | | | 634 | |
| 3.08%, 02/15/2027 ^ | | | 2,600 | | | | 1,614 | |
| 3.09%, 05/15/2027 ^ | | | 850 | | | | 522 | |
| 3.10%, 08/15/2027 | | | 100 | | | | 61 | |
| 3.12%, 11/15/2027 | | | 350 | | | | 211 | |
| 3.13%, 02/15/2028 | | | 1,250 | | | | 745 | |
| 3.14%, 05/15/2028 | | | 100 | | | | 59 | |
| 3.15%, 08/15/2028 | | | 1,000 | | | | 585 | |
| 3.17%, 11/15/2028 | | | 2,000 | | | | 1,158 | |
| 3.18%, 02/15/2029 ^ | | | 2,950 | | | | 1,691 | |
| 3.19%, 05/15/2029 | | | 100 | | | | 57 | |
| 3.20%, 08/15/2029 ^ | | | 3,800 | | | | 2,132 | |
| 3.21%, 11/15/2029 | | | 1,500 | | | | 834 | |
| 3.21%, 02/15/2030 ^ | | | 4,350 | | | | 2,395 | |
| 3.23%, 05/15/2030 - 08/15/2030 ^ | | | 2,775 | | | | 1,508 | |
| 3.23%, 11/15/2030 | | | 900 | | | | 482 | |
| 3.26%, 05/15/2031 - 02/15/2032 | | | 300 | | | | 157 | |
| 3.29%, 11/15/2032 | | | 1,850 | | | | 918 | |
| 3.30%, 05/15/2033 | | | 1,150 | | | | 559 | |
| 3.30%, 08/15/2033 ^ | | | 5,000 | | | | 2,408 | |
| 3.31%, 11/15/2033 - 02/15/2034 | | | 1,100 | | | | 522 | |
| 3.32%, 05/15/2034 | | | 400 | | | | 187 | |
| 3.36%, 05/15/2036 | | | 100 | | | | 43 | |
| | | | | | | | |
Total U.S. Government Obligations (cost $387,728) | | | | | | | 416,743 | |
| | | | | | | | |
| | | | | | | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS—48.7% | | | | | | | | |
| Fannie Mae | | | | | | | | |
| Zero Coupon, 07/05/2014 ^ | | | 4,000 | | | | 3,904 | |
| Zero Coupon, 06/01/2017 | | | 800 | | | | 726 | |
| 0.44%, 10/27/2037 * | | | 1,600 | | | | 1,590 | |
| 0.46%, 02/25/2036 - 03/25/2045 * | | | 641 | | | | 641 | |
| 0.48%, 10/25/2046 * | | | 626 | | | | 626 | |
| 0.49%, 06/27/2036 - 09/25/2036 * | | | 5,499 | | | | 5,464 | |
| 0.50%, 11/25/2046 * | | | 4,745 | | | | 4,752 | |
| 0.53%, 07/25/2036 * | | | 659 | | | | 658 | |
| 0.54%, 03/25/2036 * | | | 490 | | | | 489 | |
| 0.56%, 03/25/2037 * | | | 5,173 | | | | 5,112 | |
| 0.59%, 08/25/2036 * | | | 1,148 | | | | 1,146 | |
| 0.64%, 06/25/2037 - 05/25/2042 * | | | 1,075 | | | | 1,072 | |
| 0.69%, 07/25/2034 * | | | 468 | | | | 467 | |
| 0.79%, 08/25/2041 * | | | 2,259 | | | | 2,272 | |
| 0.84%, 04/25/2040 * | | | 2,592 | | | | 2,606 | |
| 1.90%, 09/01/2036 * | | | 142 | | | | 148 | |
| 2.37%, 09/01/2036 * | | | 373 | | | | 393 | |
| 2.42%, 10/01/2036 * | | | 217 | | | | 227 | |
| 2.57%, 06/01/2036 - 09/01/2036 * | | | 429 | | | | 455 | |
| 2.60%, 05/01/2036 * | | | 527 | | | | 558 | |
| 2.95%, 03/01/2036 * | | | 1,299 | | | | 1,366 | |
| 2.97%, 11/01/2018 | | | 1,477 | | | | 1,519 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 68 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued) | | | | | | | | |
| Fannie Mae (continued) | | | | | | | | |
| 2.99%, 11/01/2036 * | | $ | 138 | | | $ | 144 | |
| 3.00%, 01/25/2021 | | | 3,784 | | | | 3,915 | |
| 3.13%, 03/01/2036 * | | | 483 | | | | 510 | |
| 3.23%, 11/01/2020 | | | 700 | | | | 717 | |
| 3.27%, 11/01/2020 | | | 2,000 | | | | 2,051 | |
| 3.31%, 12/25/2039 * | | | 1,127 | | | | 1,198 | |
| 3.38%, 01/01/2018 | | | 4,000 | | | | 4,211 | |
| 3.43%, 11/01/2020 | | | 4,800 | | | | 4,978 | |
| 3.50%, 12/25/2018 - 09/01/2020 | | | 4,971 | | | | 5,216 | |
| 3.52%, 01/01/2018 - 12/01/2020 | | | 11,655 | | | | 12,142 | |
| 3.54%, 01/01/2018 | | | 3,961 | | | | 4,203 | |
| 3.63%, 01/01/2018 | | | 1,500 | | | | 1,596 | |
| 3.64%, 06/01/2018 | | | 6,000 | | | | 6,390 | |
| 3.73%, 06/25/2021 | | | 3,500 | | | | 3,626 | |
| 3.74%, 06/01/2018 | | | 1,996 | | | | 2,150 | |
| 3.74%, 11/01/2037 * | | | 281 | | | | 297 | |
| 3.76%, 06/25/2021 - 07/25/2021 | | | 10,500 | | | | 10,990 | |
| 3.77%, 01/01/2021 - 08/01/2021 | | | 6,500 | | | | 6,855 | |
| 3.80%, 03/01/2018 | | | 1,984 | | | | 2,130 | |
| 3.86%, 07/01/2021 | | | 1,993 | | | | 2,113 | |
| 3.89%, 07/01/2021 | | | 6,000 | | | | 6,373 | |
| 3.92%, 08/01/2021 | | | 2,300 | | | | 2,446 | |
| 3.95%, 07/01/2021 | | | 7,000 | | | | 7,463 | |
| 3.97%, 06/01/2021 - 07/01/2021 | | | 12,474 | | | | 13,308 | |
| 3.98%, 08/01/2021 | | | 4,991 | | | | 5,324 | |
| 3.99%, 07/01/2021 - 07/01/2026 | | | 6,916 | | | | 7,333 | |
| 4.00%, 04/01/2020 - 08/25/2023 | | | 6,725 | | | | 7,193 | |
| 4.02%, 08/01/2021 | | | 3,989 | | | | 4,275 | |
| 4.03%, 06/01/2021 | | | 4,904 | | | | 5,256 | |
| 4.05%, 01/01/2021 - 08/01/2021 | | | 10,060 | | | | 10,782 | |
| 4.06%, 07/01/2021 | | | 6,000 | | | | 6,443 | |
| 4.07%, 07/01/2020 | | | 1,800 | | | | 1,931 | |
| 4.13%, 08/01/2021 | | | 1,498 | | | | 1,615 | |
| 4.16%, 03/01/2021 | | | 2,480 | | | | 2,684 | |
| 4.18%, 12/01/2019 | | | 4,874 | | | | 5,295 | |
| 4.22%, 07/01/2021 | | | 8,300 | | | | 9,003 | |
| 4.23%, 03/01/2020 | | | 4,856 | | | | 5,290 | |
| 4.24%, 06/01/2021 | | | 3,000 | | | | 3,259 | |
| 4.25%, 04/01/2021 - 04/01/2021 | | | 2,500 | | | | 2,710 | |
| 4.26%, 07/01/2021 | | | 2,500 | | | | 2,720 | |
| 4.28%, 01/01/2020 | | | 1,465 | | | | 1,605 | |
| 4.30%, 01/01/2021 | | | 1,489 | | | | 1,635 | |
| 4.31%, 06/01/2021 | | | 9,957 | | | | 10,870 | |
| 4.32%, 06/01/2021 | | | 2,491 | | | | 2,720 | |
| 4.34%, 06/01/2021 | | | 7,000 | | | | 7,629 | |
| 4.36%, 05/01/2021 | | | 2,000 | | | | 2,253 | |
| 4.37%, 04/01/2020 | | | 984 | | | | 1,085 | |
| 4.38%, 01/01/2021 - 04/01/2021 | | | 4,477 | | | | 4,911 | |
| 4.39%, 05/01/2021 | | | 1,000 | | | | 1,097 | |
| 4.40%, 02/01/2020 | | | 2,000 | | | | 2,207 | |
| 4.43%, 07/01/2037 * | | | 230 | | | | 243 | |
| 4.45%, 07/01/2026 | | | 1,497 | | | | 1,615 | |
| 4.48%, 06/01/2021 | | | 2,180 | | | | 2,397 | |
| 4.50%, 09/25/2018 - 10/25/2039 | | | 15,588 | | | | 16,895 | |
| 4.53%, 12/01/2019 | | | 2,166 | | | | 2,409 | |
| 4.54%, 01/01/2020 | | | 978 | | | | 1,084 | |
| 4.55%, 06/25/2043 | | | 283 | | | | 304 | |
| 4.65%, 03/01/2021 | | | 3,627 | | | | 4,040 | |
| 4.75%, 09/25/2018 | | | 984 | | | | 1,050 | |
| 4.94%, 12/01/2036 * | | | 254 | | | | 270 | |
| 5.00%, 04/25/2016 - 09/25/2040 | | | 54,673 | | | | 60,560 | |
| 5.07%, 11/01/2036 * | | | 476 | | | | 508 | |
| 5.14%, 12/01/2036 * | | | 532 | | | | 559 | |
| 5.24%, 05/01/2017 | | | 6,000 | | | | 6,726 | |
| 5.26%, 11/01/2037 * | | | 319 | | | | 339 | |
| 5.38%, 06/12/2017 | | | 10,000 | | | | 12,033 | |
| 5.50%, 01/01/2018 - 10/25/2040 | | | 80,454 | | | | 88,701 | |
| 5.53%, 05/01/2018 | | | 958 | | | | 1,081 | |
| 5.54%, 07/01/2037 * | | | 207 | | | | 220 | |
| 5.61%, 01/25/2032 * | | | 274 | | | | 300 | |
| 5.72%, 08/01/2037 * | | | 374 | | | | 398 | |
| 5.73%, 04/01/2037 * | | | 95 | | | | 101 | |
| 5.75%, 08/25/2034 | | | 1,000 | | | | 1,095 | |
| 5.87%, 09/01/2037 * | | | 265 | | | | 286 | |
| 5.90%, 05/25/2051 * | | | 1,819 | | | | 1,955 | |
| 5.92%, 02/01/2037 * | | | 152 | | | | 163 | |
| 5.94%, 04/01/2036 - 06/25/2040 * | | | 1,121 | | | | 1,231 | |
| 5.99%, 09/01/2037 * | | | 22 | | | | 23 | �� |
| 6.00%, 03/01/2019 - 12/25/2049 | | | 83,207 | | | | 92,579 | |
| 6.08%, 07/01/2037 * | | | 250 | | | | 266 | |
| 6.15%, 02/25/2040 * | | | 858 | | | | 969 | |
| 6.22%, 08/01/2036 * | | | 128 | | | | 138 | |
| 6.25%, 09/25/2038 | | | 702 | | | | 788 | |
| 6.34%, 02/01/2037 * | | | 292 | | | | 306 | |
| 6.44%, 03/25/2040 * | | | 781 | | | | 895 | |
| 6.50%, 05/25/2017 - 07/25/2042 | | | 22,948 | | | | 25,507 | |
| 6.75%, 04/25/2037 | | | 812 | | | | 905 | |
| 7.00%, 12/25/2033 - 02/25/2044 | | | 28,695 | | | | 33,288 | |
| 7.16%, 12/25/2042 * | | | 259 | | | | 307 | |
| 7.50%, 05/17/2024 - 12/25/2045 | | | 3,708 | | | | 4,323 | |
| 8.00%, 02/25/2023 - 10/01/2031 | | | 2,684 | | | | 3,257 | |
| 8.60%, 11/25/2037 * | | | 1,264 | | | | 1,553 | |
| 12.17%, 03/25/2040 * | | | 1,292 | | | | 1,536 | |
| 15.71%, 01/25/2034 * | | | 147 | | | | 189 | |
| 16.26%, 08/25/2035 - 10/25/2035 * | | | 533 | | | | 677 | |
| 16.85%, 04/25/2040 * | | | 398 | | | | 588 | |
| 17.20%, 09/25/2024 * | | | 573 | | | | 776 | |
| 18.85%, 05/25/2034 * | | | 466 | | | | 635 | |
| 19.46%, 05/25/2035 * | | | 834 | | | | 1,147 | |
| 21.85%, 04/25/2037 * | | | 542 | | | | 798 | |
| 23.67%, 11/25/2035 * | | | 415 | | | | 658 | |
| Fannie Mae, IO | | | | | | | | |
| 0.64%, 10/25/2016 * | | | 826 | | | | 11 | |
| 3.00%, 01/25/2021 | | | 4,413 | | | | 377 | |
| 4.00%, 10/25/2014 | | | 2,413 | | | | 159 | |
| 4.20%, 11/25/2040 * | | | 4,666 | | | | 532 | |
| 4.75%, 04/25/2041 * | | | 4,100 | | | | 276 | |
| 4.76%, 07/25/2040 * | | | 5,457 | | | | 689 | |
| 5.00%, 07/25/2039 | | | 678 | | | | 110 | |
| 5.50%, 10/25/2039 | | | 1,513 | | | | 215 | |
| 5.66%, 10/25/2039 * | | | 1,038 | | | | 119 | |
| 5.76%, 02/25/2038 - 06/25/2039 * | | | 8,952 | | | | 1,204 | |
| 5.94%, 12/25/2039 * | | | 258 | | | | 31 | |
| 6.01%, 01/25/2040 * | | | 3,493 | | | | 462 | |
| 6.11%, 12/25/2037 * | | | 4,788 | | | | 693 | |
| 6.16%, 07/25/2037 - 05/25/2040 * | | | 7,538 | | | | 1,076 | |
| 6.18%, 04/25/2040 * | | | 1,755 | | | | 225 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 69 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued) | | | | | | | | |
| Fannie Mae, IO (continued) | | | | | | | | |
| 6.21%, 10/25/2037 - 12/25/2037 * | | $ | 2,088 | | | $ | 302 | |
| 6.37%, 01/25/2038 * | | | 339 | | | | 23 | |
| 6.38%, 07/25/2037 * | | | 2,837 | | | | 441 | |
| 6.41%, 10/25/2026 - 03/25/2039 * | | | 5,948 | | | | 962 | |
| 6.75%, 03/25/2038 * | | | 1,194 | | | | 191 | |
| 6.86%, 02/25/2040 * | | | 1,465 | | | | 218 | |
| Fannie Mae, PO | | | | | | | | |
| 04/25/2019 - 07/25/2040 | | | 14,530 | | | | 13,092 | |
| Fannie Mae STRIPS | | | | | | | | |
| 2.89%, 11/15/2021 ▲ | | | 1,000 | | | | 734 | |
| Fannie Mae STRIPS, PO | | | | | | | | |
| 12/01/2024 - 08/01/2032 | | | 2,351 | | | | 2,109 | |
| Federal Farm Credit Bank | | | | | | | | |
| 5.13%, 11/15/2018 | | | 2,000 | | | | 2,374 | |
| Financing Corp. STRIPS | | | | | | | | |
| 2.52%, 09/26/2019 ▲ | | | 500 | | | | 415 | |
| Freddie Mac | | | | | | | | |
| 0.49%, 08/15/2023 * | | | 1,101 | | | | 1,099 | |
| 0.54%, 06/15/2024 - 03/15/2036 * | | | 2,571 | | | | 2,569 | |
| 0.59%, 07/15/2034 * | | | 1,716 | | | | 1,711 | |
| 0.64%, 02/15/2033 * | | | 1,771 | | | | 1,769 | |
| 1.00%, 11/01/2041 ә | | | 1,500 | | | | 1,558 | |
| 1.44%, 07/15/2039 * | | | 896 | | | | 899 | |
| 2.10%, 10/01/2036 * | | | 301 | | | | 318 | |
| 3.07%, 05/01/2036 * | | | 248 | | | | 262 | |
| 3.22%, 03/01/2036 * | | | 1,066 | | | | 1,137 | |
| 3.50%, 06/15/2021 | | | 2,000 | | | | 2,060 | |
| 4.00%, 01/15/2018 | | | 542 | | | | 570 | |
| 4.10%, 12/01/2036 * | | | 650 | | | | 690 | |
| 4.12%, 12/01/2036 * | | | 586 | | | | 620 | |
| 4.25%, 10/15/2030 | | | 488 | | | | 495 | |
| 4.32%, 11/01/2036 * | | | 998 | | | | 1,054 | |
| 4.50%, 07/01/2014 - 05/01/2041 | | | 59,013 | | | | 63,199 | |
| 4.66%, 11/01/2036 * | | | 73 | | | | 77 | |
| 4.76%, 10/25/2037 * | | | 1,001 | | | | 1,027 | |
| 4.91%, 02/01/2036 * | | | 3,139 | | | | 3,345 | |
| 5.00%, 10/01/2018 - 07/15/2041 | | | 32,609 | | | | 35,776 | |
| 5.00%, 01/01/2035 - 05-01-2037 * | | | 3,127 | | | | 3,348 | |
| 5.07%, 07/01/2036 * | | | 2,370 | | | | 2,539 | |
| 5.13%, 11/17/2017 | | | 19,930 | | | | 23,955 | |
| 5.23%, 05/25/2043 | | | 1,841 | | | | 1,996 | |
| 5.28%, 05/01/2038 * | | | 179 | | | | 190 | |
| 5.30%, 06/15/2012 - 01/15/2033 | | | 2,051 | | | | 2,221 | |
| 5.31%, 12/01/2031 * | | | 939 | | | | 997 | |
| 5.34%, 11/01/2036 * | | | 278 | | | | 291 | |
| 5.50%, 08/23/2017 - 01/15/2039 | | | 43,666 | | | | 48,246 | |
| 5.61%, 06/01/2037 * | | | 352 | | | | 380 | |
| 5.62%, 04/01/2037 * | | | 80 | | | | 86 | |
| 5.69%, 10/15/2038 * | | | 1,820 | | | | 2,001 | |
| 5.73%, 05/01/2037 - 05/01/2037 * | | | 1,115 | | | | 1,187 | |
| 5.75%, 10/15/2035 | | | 1,561 | | | | 1,687 | |
| 5.84%, 04/01/2037 * | | | 228 | | | | 243 | |
| 5.93%, 04/01/2037 * | | | 110 | | | | 118 | |
| 5.95%, 03/01/2037 * | | | 489 | | | | 521 | |
| 6.00%, 05/01/2017 - 06/15/2038 | | | 30,030 | | | | 33,694 | |
| 6.06%, 10/01/2037 * | | | 257 | | | | 272 | |
| 6.09%, 05/01/2037 * | | | 230 | | | | 244 | |
| 6.18%, 09/01/2037 * | | | 209 | | | | 223 | |
| 6.25%, 10/15/2023 | | | 1,041 | | | | 1,097 | |
| 6.39%, 02/01/2037 * | | | 283 | | | | 305 | |
| 6.47%, 10/01/2037 * | | | 348 | | | | 382 | |
| 6.50%, 08/15/2021 - 09/25/2043 * | | | 13,153 | | | | 14,811 | |
| 6.50%, 12/01/2036 * ә | | | 1,638 | | | | 1,815 | |
| 6.82%, 11/15/2021 * | | | 1,341 | | | | 1,547 | |
| 7.00%, 12/15/2036 - 07/25/2043 | | | 3,222 | | | | 3,763 | |
| 7.16%, 11/15/2046 * | | | 2,580 | | | | 3,048 | |
| 7.50%, 11/15/2036 - 09/25/2043 | | | 4,831 | | | | 5,692 | |
| 8.00%, 06/15/2035 * | | | 435 | | | | 475 | |
| 8.50%, 09/01/2015 | | | 123 | | | | 133 | |
| 8.64%, 11/15/2033 * | | | 24 | | | | 24 | |
| 8.71%, 11/15/2033 * | | | 331 | | | | 328 | |
| 8.78%, 10/15/2033 * | | | 226 | | | | 222 | |
| 9.20%, 12/15/2028 * | | | 91 | | | | 92 | |
| 10.00%, 03/17/2026 - 10/01/2030 | | | 1,284 | | | | 1,521 | |
| 11.00%, 02/17/2021 | | | 504 | | | | 563 | |
| 14.40%, 06/15/2033 * | | | 224 | | | | 276 | |
| 15.82%, 10/15/2033 * | | | 131 | | | | 147 | |
| 15.96%, 10/15/2033 * | | | 327 | | | | 369 | |
| 16.69%, 02/15/2040 * | | | 500 | | | | 733 | |
| 16.84%, 02/15/2038 * | | | 116 | | | | 148 | |
| 19.49%, 07/15/2035 * | | | 134 | | | | 172 | |
| 20.30%, 08/15/2031 * | | | 208 | | | | 278 | |
| 21.03%, 05/15/2035 * | | | 148 | | | | 199 | |
| 23.66%, 06/15/2035 * | | | 133 | | | | 193 | |
| Freddie Mac, IO | | | | | | | | |
| 3.50%, 09/15/2024 | | | 2,563 | | | | 261 | |
| 4.00%, 11/15/2029 - 10/15/2037 | | | 16,997 | | | | 2,412 | |
| 4.50%, 12/15/2024 - 07/15/2037 | | | 7,981 | | | | 931 | |
| 4.57%, 01/15/2040 * | | | 4,214 | | | | 252 | |
| 5.00%, 04/15/2032 - 08/15/2040 | | | 8,020 | | | | 1,244 | |
| 5.50%, 07/15/2037 | | | 710 | | | | 91 | |
| 5.76%, 11/15/2037 - 10/15/2040 * | | | 5,490 | | | | 892 | |
| 5.81%, 05/15/2038 * | | | 3,563 | | | | 470 | |
| 5.86%, 05/15/2039 * | | | 2,644 | | | | 359 | |
| 6.01%, 12/15/2039 * | | | 2,894 | | | | 386 | |
| 6.10%, 12/15/2039 * | | | 1,973 | | | | 368 | |
| 6.16%, 01/15/2037 * | | | 1,336 | | | | 198 | |
| 6.21%, 11/15/2037 * | | | 210 | | | | 31 | |
| 6.46%, 01/15/2019 * | | | 1,197 | | | | 84 | |
| 6.56%, 09/15/2039 * | | | 1,278 | | | | 212 | |
| 7.46%, 08/15/2036 * | | | 5,400 | | | | 852 | |
| Freddie Mac, PO | | | | | | | | |
| 03/15/2019 - 01/15/2040 | | | 16,116 | | | | 14,581 | |
| Freddie Mac Re-REMIC | | | | | | | | |
| 6.00%, 05/15/2036 | | | 3,181 | | | | 3,711 | |
| Freddie Mac STRIPS, PO | | | | | | | | |
| 04/01/2028 | | | 662 | | | | 597 | |
| Ginnie Mae | | | | | | | | |
| 0.44%, 04/16/2037 * | | | 216 | | | | 215 | |
| 5.50%, 05/16/2019 - 09/20/2039 | | | 10,490 | | | | 12,031 | |
| 5.54%, 07/20/2040 * | | | 6,000 | | | | 6,611 | |
| 5.75%, 02/20/2036 - 10/20/2037 | | | 11,639 | | | | 12,890 | |
| 5.85%, 10/20/2033 * | | | 794 | | | | 891 | |
| 6.00%, 04/20/2020 - 12/20/2039 | | | 16,743 | | | | 18,775 | |
| 6.13%, 06/16/2031 | | | 1,584 | | | | 1,799 | |
| 6.50%, 04/20/2028 - 12/15/2035 | | | 4,335 | | | | 4,882 | |
| 7.00%, 09/15/2031 - 10/16/2040 | | | 3,434 | | | | 4,090 | |
| 7.00%, 09/20/2034 * | | | 74 | | | | 74 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 70 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued) | | | | | | | | |
| Ginnie Mae (continued) | | | | | | | | |
| 7.39%, 03/17/2033 * | | $ | 288 | | | $ | 305 | |
| 7.50%, 12/20/2029 - 10/15/2037 | | | 1,667 | | | | 1,971 | |
| 8.76%, 04/20/2034 * | | | 415 | | | | 458 | |
| 14.26%, 11/17/2032 * | | | 127 | | | | 159 | |
| 16.79%, 02/20/2034 * | | | 73 | | | | 96 | |
| Ginnie Mae, IO | | | | | | | | |
| 4.00%, 09/16/2037 | | | 4,746 | | | | 744 | |
| 5.59%, 02/20/2038 * | | | 441 | | | | 57 | |
| 5.66%, 09/20/2038 * | | | 3,396 | | | | 471 | |
| 5.71%, 02/20/2039 - 06/20/2039 * | | | 1,560 | | | | 211 | |
| 5.76%, 02/20/2038 * | | | 4,193 | | | | 629 | |
| 5.80%, 02/20/2039 * | | | 521 | | | | 72 | |
| 5.81%, 08/16/2039 * | | | 3,049 | | | | 418 | |
| 5.85%, 09/20/2039 * | | | 3,072 | | | | 431 | |
| 5.86%, 11/20/2034 - 08/20/2039 * | | | 8,861 | | | | 1,257 | |
| 5.91%, 07/20/2038 * | | | 2,811 | | | | 404 | |
| 5.96%, 03/20/2037 - 06/20/2038 * | | | 6,808 | | | | 1,017 | |
| 6.06%, 03/20/2039 * | | | 563 | | | | 71 | |
| 6.16%, 12/20/2038 - 11/16/2039 * | | | 5,450 | | | | 777 | |
| 6.29%, 12/20/2037 * | | | 216 | | | | 32 | |
| 6.31%, 11/16/2033 - 11/20/2037 * | | | 620 | | | | 101 | |
| 6.36%, 05/20/2041 * | | | 2,535 | | | | 388 | |
| 6.41%, 09/20/2033 * | | | 2,427 | | | | 245 | |
| 6.44%, 07/20/2037 * | | | 1,980 | | | | 280 | |
| 6.46%, 06/20/2037 * | | | 3,336 | | | | 492 | |
| 6.50%, 03/20/2039 | | | 287 | | | | 58 | |
| 7.06%, 12/20/2038 * | | | 2,291 | | | | 358 | |
| 7.36%, 09/20/2038 * | | | 266 | | | | 43 | |
| 7.46%, 04/16/2038 * | | | 166 | | | | 27 | |
| Ginnie Mae, PO | | | | | | | | |
| 12/20/2032 - 12/20/2040 | | | 7,421 | | | | 6,753 | |
| Government Trust Certificate | | | | | | | | |
| Zero Coupon, 04/01/2016 - 04/01/2020 | | | 15,890 | | | | 13,096 | |
| 1.42%, 10/01/2015 ▲ | | | 4,000 | | | | 3,751 | |
| Residual Funding Corp. STRIPS, PO | | | | | | | | |
| 2.61%, 07/15/2020 ▲ | | | 1,400 | | | | 1,137 | |
| Tennessee Valley Authority | | | | | | | | |
| 4.63%, 09/15/2060 | | | 236 | | | | 267 | |
| 5.25%, 09/15/2039 | | | 40 | | | | 49 | |
| Tennessee Valley Authority Generic STRIPS | | | | | | | | |
| 2.19%, 05/01/2019 ▲ | | | 500 | | | | 415 | |
| Tennessee Valley Authority Principal STRIPS | | | | | | | | |
| 3.92%, 11/01/2025 ▲ | | | 1,000 | | | | 606 | |
| | | | | | | | |
Total U.S. Government Agency Obligations (cost $1,051,844) | | | | | | | 1,074,892 | |
| | | | | | | | |
| | | | | | | | | |
FOREIGN GOVERNMENT OBLIGATIONS — 1.4% | | | | | | | | |
| Israel Government AID Bond ▲ | | | | | | | | |
| 2.55%, 03/15/2019 | | | 10,000 | | | | 8,510 | |
| 2.69%, 09/15/2019 | | | 7,500 | | | | 6,255 | |
| 2.79%, 02/15/2020 | | | 6,500 | | | | 5,326 | |
| 2.93%, 09/15/2020 | | | 7,996 | | | | 6,366 | |
| 3.65%, 02/15/2025 | | | 2,250 | | | | 1,436 | |
| 3.81%, 11/15/2026 | | | 1,400 | | | | 805 | |
| Province of Manitoba Canada | | | | | | | | |
| 2.13%, 04/22/2013 ^ | | | 100 | | | | 102 | |
| Province of Ontario Canada | | | | | | | | |
| 2.70%, 06/16/2015 | | | 700 | | | | 735 | |
| 2.95%, 02/05/2015 | | | 515 | | | | 543 | |
| Province of Quebec Canada | | | | | | | | |
| 6.35%, 01/30/2026 | | | 285 | | | | 375 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $30,180) | | | | | | | 30,453 | |
| | | | | | | | |
| |
MORTGAGE-BACKED SECURITIES — 8.6% | | | | | | | | |
| ABN Amro Mortgage Corp. | | | | | | | | |
| Series 2003-7, Class A3 | | | | | | | | |
| 4.50%, 07/25/2018 | | | 805 | | | | 807 | |
| American General Mortgage Loan Trust | | | | | | | | |
| Series 2006-1, Class A5 | | | | | | | | |
| 5.73%, 12/25/2035 - 144A * | | | 366 | | | | 385 | |
| Series 2009-1, Class A4 | | | | | | | | |
| 5.75%, 09/25/2048 — 144A * | | | 1,650 | | | | 1,655 | |
| Series 2009-1, Class A5 | | | | | | | | |
| 5.75%, 09/25/2048 - 144A * | | | 1,100 | | | | 1,110 | |
| Series 2009-1, Class A7 | | | | | | | | |
| 5.75%, 09/25/2048 - 144A * | | | 1,900 | | | | 1,926 | |
| Series 2010-1A, Class A1 | | | | | | | | |
| 5.15%, 03/25/2058 - 144A * | | | 1,178 | | | | 1,206 | |
| ASG Resecuritization Trust | | | | | | | | |
| Series 2009-1, Class A60 | | | | | | | | |
| 5.13%, 06/26/2037 - 144A * | | | 176 | | | | 175 | |
| Series 2009-2, Class A55 | | | | | | | | |
| 5.31%, 05/24/2036 - 144A * | | | 268 | | | | 265 | |
| Series 2009-2, Class G60 | | | | | | | | |
| 5.31%, 05/24/2036 - 144A * | | | 400 | | | | 379 | |
| Series 2009-3, Class A65 | | | | | | | | |
| 5.15%, 03/26/2037 - 144A * | | | 1,387 | | | | 1,369 | |
| Series 2009-4, Class A60 | | | | | | | | |
| 6.00%, 06/28/2037 - 144A | | | 239 | | | | 249 | |
| Series 2010-3, Class 2A22 | | | | | | | | |
| 0.42%, 10/28/2036 - 144A * | | | 765 | | | | 756 | |
| Series 2010-4, Class 2A20 | | | | | | | | |
| 0.37%, 11/28/2036 - 144A * | | | 479 | | | | 473 | |
| Series 2011-1, Class 3A50 | | | | | | | | |
| 2.49%, 11/28/2035 - 144A * | | | 511 | | | | 498 | |
| Banc of America Alternative Loan Trust | | | | | | | | |
| Series 2003-7, Class 2A4 | | | | | | | | |
| 5.00%, 09/25/2018 | | | 498 | | | | 508 | |
| Series 2003-9, Class 1CB2 | | | | | | | | |
| 5.50%, 11/25/2033 | | | 238 | | | | 245 | |
| Series 2003-11, Class 1A1 | | | | | | | | |
| 6.00%, 01/25/2034 | | | 175 | | | | 176 | |
| Series 2003-11, Class 2A1 | | | | | | | | |
| 6.00%, 01/25/2034 | | | 228 | | | | 228 | |
| Series 2004-1, Class 1A1 | | | | | | | | |
| 6.00%, 02/25/2034 | | | 712 | | | | 748 | |
| Series 2004-1, Class 5A1 | | | | | | | | |
| 5.50%, 02/25/2019 | | | 93 | | | | 94 | |
| Series 2004-6, Class 3A2 | | | | | | | | |
| 6.00%, 07/25/2034 | | | 269 | | | | 273 | |
| Series 2004-8, Class 3A1 | | | | | | | | |
| 5.50%, 09/25/2019 | | | 129 | | | | 129 | |
| Banc of America Funding Corp. | | | | | | | | |
| Series 2004-3, Class 1A1 | | | | | | | | |
| 5.50%, 10/25/2034 | | | 795 | | | | 816 | |
| Series 2004-3, Class 1A7 | | | | | | | | |
| 5.50%, 10/25/2034 | | | 34 | | | | 34 | |
| Series 2004-C, Class 1A1 | | | | | | | | |
| 5.03%, 12/20/2034 * | | | 216 | | | | 202 | |
| Series 2010-R4, Class 5A1 | | | | | | | | |
| 0.39%, 07/26/2036 - 144A * | | | 321 | | | | 311 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 71 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Banc of America Funding Corp. (continued) | | | | | | | | |
| Series 2010-R5, Class 5A6 | | | | | | | | |
| 0.54%, 05/26/2037 - 144A * | | $ | 2,037 | | | $ | 1,976 | |
| Series 2010-R7, Class A1 | | | | | | | | |
| 0.41%, 06/25/2046 - 144A * | | | 175 | | | | 175 | |
| Series 2010-R11A, Class 1A6 | | | | | | | | |
| 5.40%, 08/26/2035 - 144A * | | | 969 | | | | 1,013 | |
| Banc of America Merrill Lynch Commercial Mortgage, Inc. | | | | | | | | |
| Series 2005-3, Class A4 | | | | | | | | |
| 4.67%, 07/10/2043 | | | 300 | | | | 323 | |
| Series 2005-3, Class AM | | | | | | | | |
| 4.73%, 07/10/2043 | | | 800 | | | | 805 | |
| Series 2005-5, Class A4 | | | | | | | | |
| 5.12%, 10/10/2045 * | | | 200 | | | | 219 | |
| Series 2006-3, Class A4 | | | | | | | | |
| 5.89%, 07/10/2044 * | | | 600 | | | | 661 | |
| Series 2006-4, Class A4 | | | | | | | | |
| 5.63%, 07/10/2046 | | | 500 | | | | 551 | |
| Series 2006-5, Class A4 | | | | | | | | |
| 5.41%, 09/10/2047 | | | 150 | | | | 161 | |
| Banc of America Mortgage Securities, Inc. | | | | | | | | |
| Series 2003-3, Class 1A7 | | | | | | | | |
| 5.50%, 05/25/2033 | | | 1,000 | | | | 1,025 | |
| Series 2003-3, Class 2A1 | | | | | | | | |
| 0.79%, 05/25/2018 * | | | 121 | | | | 115 | |
| Series 2003-4, Class 2A1 | | | | | | | | |
| 0.79%, 06/25/2018 * | | | 532 | | | | 503 | |
| Series 2003-6, Class 2A1 | | | | | | | | |
| 0.69%, 08/25/2018 * | | | 223 | | | | 213 | |
| Series 2003-C, Class 3A1 | | | | | | | | |
| 2.87%, 04/25/2033 * | | | 351 | | | | 337 | |
| Series 2003-E, Class 2A2 | | | | | | | | |
| 2.88%, 06/25/2033 * | | | 515 | | | | 468 | |
| Series 2004-3, Class 1A26 | | | | | | | | |
| 5.50%, 04/25/2034 | | | 1,300 | | | | 1,328 | |
| Series 2004-3, Class 3A1 | | | | | | | | |
| 5.00%, 04/25/2019 | | | 185 | | | | 188 | |
| Series 2004-5, Class 4A1 | | | | | | | | |
| 4.75%, 06/25/2019 | | | 137 | | | | 141 | |
| Series 2004-C, Class 2A2 | | | | | | | | |
| 2.89%, 04/25/2034 * | | | 1,039 | | | | 944 | |
| BCAP LLC Trust | | | | | | | | |
| Series 2009-RR5, Class 8A1 | | | | | | | | |
| 5.50%, 11/26/2034 - 144A | | | 625 | | | | 658 | |
| Series 2009-RR10, Class 17A1 | | | | | | | | |
| 5.75%, 06/26/2037 - 144A | | | 191 | | | | 192 | |
| Series 2009-RR13, Class 17A2 | | | | | | | | |
| 5.50%, 04/26/2037 - 144A * | | | 677 | | | | 706 | |
| Series 2009-RR14, Class 3A2 | | | | | | | | |
| 2.71%, 08/26/2035 - 144A * | | | 500 | | | | 475 | |
| Series 2010-RR4, Class 12A1 | | | | | | | | |
| 4.00%, 07/26/2036 - 144A * | | | 691 | | | | 616 | |
| Series 2010-RR5, Class 2A5 | | | | | | | | |
| 5.20%, 04/26/2037 - 144A * | | | 888 | | | | 883 | |
| Series 2010-RR6, Class 5A1 | | | | | | | | |
| 5.50%, 11/26/2037 - 144A * | | | 377 | | | | 365 | |
| Series 2010-RR6, Class 22A3 | | | | | | | | |
| 5.11%, 06/26/2036 - 144A * | | | 727 | | | | 727 | |
| Series 2010-RR7, Class 1A5 | | | | | | | | |
| 5.01%, 04/26/2035 - 144A * | | | 1,213 | | | | 1,189 | |
| Series 2010-RR7, Class 2A1 | | | | | | | | |
| 5.47%, 07/26/2045 - 144A * | | | 1,457 | | | | 1,371 | |
| Series 2010-RR7, Class 15A1 | | | | | | | | |
| 1.04%, 01/26/2036 - 144A * | | | 606 | | | | 586 | |
| Series 2010-RR7, Class 16A1 | | | | | | | | |
| 0.93%, 02/26/2047 - 144A * | | | 734 | | | | 678 | |
| Series 2010-RR8, Class 3A3 | | | | | | | | |
| 5.09%, 05/26/2035 - 144A * | | | 604 | | | | 603 | |
| Series 2010-RR8, Class 3A4 | | | | | | | | |
| 5.09%, 05/26/2035 - 144A * | | | 773 | | | | 694 | |
| Series 2010-RR12, Class 2A5 | | | | | | | | |
| 4.50%, 01/26/2036 - 144A * | | | 878 | | | | 902 | |
| Series 2011-RR4, Class 6A3 | | | | | | | | |
| 5.00%, 08/26/2037 - 144A * | | | 948 | | | | 905 | |
| Series 2011-RR5, Class 11A3 | | | | | | | | |
| 0.39%, 05/28/2036 - 144A * | | | 1,293 | | | | 1,151 | |
| Series 2011-RR5, Class 14A3 | | | | | | | | |
| 2.84%, 07/26/2036 - 144A * | | | 1,362 | | | | 1,304 | |
| Series 2011-RR10, Class TR | | | | | | | | |
| 1.06%, 09/26/2037 | | | 2,579 | | | | 2,186 | |
| Bear Stearns Adjustable Rate Mortgage Trust | | | | | | | | |
| Series 2003-4, Class 3A1 | | | | | | | | |
| 4.99%, 07/25/2033 * | | | 231 | | | | 222 | |
| Series 2004-2, Class 14A | | | | | | | | |
| 5.04%, 05/25/2034 * | | | 302 | | | | 299 | |
| Series 2005-5, Class A1 | | | | | | | | |
| 2.22%, 08/25/2035 * | | | 399 | | | | 370 | |
| Bear Stearns Alt-A Trust | | | | | | | | |
| Series 2005-2, Class 1A1 | | | | | | | | |
| 0.74%, 03/25/2035 * | | | 487 | | | | 379 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
| Series 2004-PWR4, Class A3 | | | | | | | | |
| 5.47%, 06/11/2041 * | | | 1,000 | | | | 1,085 | |
| Series 2006-PW11, Class A4 | | | | | | | | |
| 5.45%, 03/11/2039 * | | | 200 | | | | 223 | |
| Bear Stearns Commercial Mortgage Securities, IO | | | | | | | | |
| Series 2005-PWR8, Class X1 | | | | | | | | |
| 0.24%, 06/11/2041 - 144A * | | | 14,787 | | | | 222 | |
| Chase Mortgage Finance Corp. | | | | | | | | |
| Series 2003-S2, Class A1 | | | | | | | | |
| 5.00%, 03/25/2018 | | | 337 | | | | 340 | |
| Series 2004-S3, Class 2A5 | | | | | | | | |
| 5.50%, 03/25/2034 | | | 985 | | | | 1,025 | |
| Series 2007-A1, Class 1A3 | | | | | | | | |
| 2.78%, 02/25/2037 * | | | 3,170 | | | | 3,053 | |
| Series 2007-A1, Class 2A1 | | | | | | | | |
| 2.75%, 02/25/2037 * | | | 732 | | | | 697 | |
| Series 2007-A1, Class 7A1 | | | | | | | | |
| 2.75%, 02/25/2037 * | | | 557 | | | | 518 | |
| Series 2007-A1, Class 9A1 | | | | | | | | |
| 2.74%, 02/25/2037 * | | | 254 | | | | 242 | |
| Series 2007-A2, Class 1A1 | | | | | | | | |
| 2.78%, 07/25/2037 * | | | 144 | | | | 126 | |
| Series 2007-A2, Class 2A1 | | | | | | | | |
| 2.80%, 07/25/2037 * | | | 905 | | | | 888 | |
| Chase Mortgage Finance Corp., PO | | | | | | | | |
| Series 2003-S9, Class AP | | | | | | | | |
| 10/25/2018 | | | 95 | | | | 83 | |
| Citicorp Mortgage Securities, Inc. | | | | | | | | |
| Series 2003-6, Class 1A2 | | | | | | | | |
| 4.50%, 05/25/2033 | | | 56 | | | | 56 | |
| Series 2004-4, Class A4 | | | | | | | | |
| 5.50%, 06/25/2034 | | | 877 | | | | 915 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 72 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Citigroup Commercial Mortgage Trust (continued) | | | | | | | | |
| Series 2005-C3, Class AM | | | | | | | | |
| 4.83%, 05/15/2043 * | | $ | 440 | | | $ | 459 | |
| Series 2006-C5, Class A4 | | | | | | | | |
| 5.43%, 10/15/2049 | | | 500 | | | | 543 | |
| Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
| Series 2003-1, Class 3A4 | | | | | | | | |
| 5.25%, 09/25/2033 | | | 756 | | | | 794 | |
| Series 2005-2, Class 2A11 | | | | | | | | |
| 5.50%, 05/25/2035 | | | 442 | | | | 426 | |
| Series 2008-AR4, Class 1A1A | | | | | | | | |
| 5.17%, 11/25/2038 - 144A * | | | 1,207 | | | | 1,207 | |
| Series 2009-10, Class 1A1 | | | | | | | | |
| 2.47%, 09/25/2033 - 144A * | | | 1,068 | | | | 1,004 | |
| Series 2009-11, Class 3A1 | | | | | | | | |
| 5.75%, 05/25/2037 - 144A * | | | 1,000 | | | | 1,018 | |
| Series 2010-7, Class 10A1 | | | | | | | | |
| 2.74%, 02/25/2035 - 144A * | | | 473 | | | | 452 | |
| Series 2011-3, Class 1A1 | | | | | | | | |
| 0.32%, 02/25/2047 - 144A * | | | 590 | | | | 580 | |
| Series 2011-10, Class 4A1 | | | | | | | | |
| 0.42%, 02/25/2046 - 144A * | | | 1,556 | | | | 1,473 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust, IO | | | | | | | | |
| Series 2007-CD4, Class XC | | | | | | | | |
| 0.17%, 12/11/2049 - 144A * | | | 48,156 | | | | 400 | |
| Commercial Mortgage Asset Trust | | | | | | | | |
| Series 1999-C1, Class D | | | | | | | | |
| 7.35%, 01/17/2032 * | | | 1,000 | | | | 1,077 | |
| Countrywide Alternative Loan Trust, PO | | | | | | | | |
| Series 2002-7 | | | | | | | | |
| 08/25/2032 | | | 140 | | | | 93 | |
| Countrywide Home Loan Mortgage Pass-Through Trust | | | | | | | | |
| Series 2003-34, Class A6 | | | | | | | | |
| 5.25%, 09/25/2033 | | | 91 | | | | 92 | |
| Series 2003-39, Class A6 | | | | | | | | |
| 5.00%, 10/25/2033 | | | 752 | | | | 739 | |
| Series 2003-50, Class A1 | | | | | | | | |
| 5.00%, 11/25/2018 | | | 635 | | | | 652 | |
| Series 2003-J13, Class 1A7 | | | | | | | | |
| 5.25%, 01/25/2034 | | | 1,514 | | | | 1,568 | |
| Series 2004-3, Class A4 | | | | | | | | |
| 5.75%, 04/25/2034 | | | 1,154 | | | | 1,188 | |
| Series 2004-5, Class 1A4 | | | | | | | | |
| 5.50%, 06/25/2034 | | | 936 | | | | 968 | |
| Series 2004-8, Class 2A1 | | | | | | | | |
| 4.50%, 06/25/2019 | | | 129 | | | | 131 | |
| Series 2004-J4, Class 2A1 | | | | | | | | |
| 5.00%, 05/25/2019 | | | 259 | | | | 266 | |
| Credit Suisse First Boston Mortgage Securities Corp. | | | | | | | | |
| Series 2003-21, Class 1A4 | | | | | | | | |
| 5.25%, 09/25/2033 | | | 432 | | | | 440 | |
| Series 2003-27, Class 5A3 | | | | | | | | |
| 5.25%, 11/25/2033 | | | 757 | | | | 785 | |
| Series 2003-27, Class 5A4 | | | | | | | | |
| 5.25%, 11/25/2033 | | | 644 | | | | 665 | |
| Series 2003-29, Class 5A1 | | | | | | | | |
| 7.00%, 12/25/2033 | | | 295 | | | | 314 | |
| Series 2003-29, Class 8A1 | | | | | | | | |
| 6.00%, 11/25/2018 | | | 141 | | | | 145 | |
| Series 2003-AR15, Class 3A1 | | | | | | | | |
| 2.82%, 06/25/2033 * | | | 416 | | | | 391 | |
| Series 2004-4, Class 2A4 | | | | | | | | |
| 5.50%, 09/25/2034 | | | 862 | | | | 908 | |
| Series 2004-5, Class 3A1 | | | | | | | | |
| 5.25%, 08/25/2019 | | | 516 | | | | 532 | |
| Series 2004-8, Class 1A4 | | | | | | | | |
| 5.50%, 12/25/2034 | | | 822 | | | | 874 | |
| Series 2004-8, Class 3A5 | | | | | | | | |
| 5.50%, 12/25/2034 | | | 526 | | | | 541 | |
| Series 2005-C3, Class AM | | | | | | | | |
| 4.73%, 07/15/2037 | | | 400 | | | | 414 | |
| Credit Suisse Mortgage Capital Certificates | | | | | | | | |
| Series 2006-C2, Class A3 | | | | | | | | |
| 5.66%, 03/15/2039 * | | | 600 | | | | 639 | |
| Series 2009-3R, Class 19A3 | | | | | | | | |
| 6.00%, 01/27/2038 - 144A | | | 446 | | | | 476 | |
| Series 2010-1R, Class 5A1 | | | | | | | | |
| 5.00%, 01/27/2036 - 144A * | | | 722 | | | | 749 | |
| Series 2010-11R, Class A1 | | | | | | | | |
| 1.25%, 06/28/2047 - 144A * | | | 449 | | | | 445 | |
| Series 2010-12R, Class 14A1 | | | | | | | | |
| 2.67%, 09/26/2046 - 144A * | | | 601 | | | | 590 | |
| Series 2010-15R, Class 7A1 | | | | | | | | |
| 5.21%, 10/26/2037 - 144A * | | | 319 | | | | 311 | |
| Series 2010-16, Class A3 | | | | | | | | |
| 4.19%, 06/25/2050 - 144A * | | | 400 | | | | 370 | |
| Series 2010-16, Class A4 | | | | | | | | |
| 4.19%, 06/25/2050 - 144A * | | | 1,000 | | | | 781 | |
| Series 2010-17R, Class 1A1 | | | | | | | | |
| 2.46%, 06/26/2036 - 144A * | | | 408 | | | | 386 | |
| Series 2011-1R, Class A1 | | | | | | | | |
| 1.24%, 02/27/2047 - 144A * | | | 1,539 | | | | 1,514 | |
| Series 2011-6R, Class 3A1 | | | | | | | | |
| 2.86%, 07/28/2036 - 144A * | | | 903 | | | | 849 | |
| Series 2011-7R, Class A1 | | | | | | | | |
| 1.49%, 08/28/2047 - 144A * | | | 2,196 | | | | 2,191 | |
| Series 2011-9R, Class A1 | | | | | | | | |
| 2.24%, 03/27/2046 - 144A * | | | 3,912 | | | | 3,892 | |
| CW Capital Cobalt, Ltd. | | | | | | | | |
| Series 2006-C1, Class A4 | | | | | | | | |
| 5.22%, 08/15/2048 | | | 600 | | | | 639 | |
| CW Capital Cobalt, Ltd., IO | | | | | | | | |
| Series 2006-C1 | | | | | | | | |
| 0.71%, 08/15/2048 * | | | 13,266 | | | | 317 | |
| Deutsche ALT-A Securities, Inc., Alternate Loan Trust | | | | | | | | |
| Series 2005-1, Class 2A1 | | | | | | | | |
| 5.58%, 02/25/2020 * | | | 318 | | | | 325 | |
| Deutsche Mortgage Securities, Inc. | | | | | | | | |
| Series 2009-RS2, Class 4A1 | | | | | | | | |
| 0.36%, 04/26/2037 - 144A * | | | 379 | | | | 369 | |
| Series 2010-RS2, Class A1 | | | | | | | | |
| 1.50%, 06/28/2047 - 144A * | | | 509 | | | | 504 | |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
| Series 2010-C1, Class A | | | | | | | | |
| 2.98%, 12/06/2020 - 144A | | | 1,284 | | | | 1,331 | |
| First Horizon Asset Securities, Inc. | | | | | | | | |
| Series 2003-8, Class 2A1 | | | | | | | | |
| 4.50%, 09/25/2018 | | | 184 | | | | 186 | |
| Series 2004-AR2, Class 2A1 | | | | | | | | |
| 2.76%, 05/25/2034 * | | | 857 | | | | 766 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 73 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| GE Capital Commercial Mortgage Corp. | | | | | | | | |
| Series 2005-C1, Class AJ | | | | | | | | |
| 4.83%, 06/10/2048 * | | $ | 1,000 | | | $ | 968 | |
| GMAC Mortgage Corp., Loan Trust | | | | | | | | |
| Series 2003-AR1, Class A4 | | | | | | | | |
| 3.03%, 10/19/2033 * | | | 235 | | | | 221 | |
| Series 2003-AR2, Class 2A4 | | | | | | | | |
| 3.06%, 12/19/2033 * | | | 1,295 | | | | 1,179 | |
| Series 2004-J2, Class A2 | | | | | | | | |
| 0.74%, 06/25/2034 * | | | 82 | | | | 81 | |
| Series 2004-J5, Class A7 | | | | | | | | |
| 6.50%, 01/25/2035 | | | 2,170 | | | | 2,285 | |
| Series 2004-J6, Class 1A1 | | | | | | | | |
| 5.00%, 01/25/2020 | | | 261 | | | | 268 | |
| Series 2010-1, Class A | | | | | | | | |
| 4.25%, 07/25/2040 - 144A | | | 36 | | | | 36 | |
| Greenwich Capital Commercial Funding Corp. | | | | | | | | |
| Series 2005-GG3, Class AJ | | | | | | | | |
| 4.86%, 08/10/2042 * | | | 220 | | | | 206 | |
| GS Mortgage Securities Corp. II | | | | | | | | |
| Series 2004-GG2, Class A6 | | | | | | | | |
| 5.40%, 08/10/2038 * | | | 1,000 | | | | 1,073 | |
| GS Mortgage Securities Corp. II, IO | | | | | | | | |
| Series 2006-GG8, Class X | | | | | | | | |
| 0.64%, 11/10/2039 - 144A * | | | 11,386 | | | | 263 | |
| GSR Mortgage Loan Trust | | | | | | | | |
| Series 2003-7F, Class 1A4 | | | | | | | | |
| 5.25%, 06/25/2033 | | | 1,541 | | | | 1,521 | |
| Series 2004-8F, Class 2A3 | | | | | | | | |
| 6.00%, 09/25/2034 | | | 1,741 | | | | 1,789 | |
| Series 2005-5F, Class 2A3 | | | | | | | | |
| 5.50%, 06/25/2035 | | | 163 | | | | 163 | |
| Series 2005-5F, Class 8A3 | | | | | | | | |
| 0.74%, 06/25/2035 * | | | 349 | | | | 338 | |
| Impac CMB Trust | | | | | | | | |
| Series 2005-4, Class 2A1 | | | | | | | | |
| 0.54%, 05/25/2035 * | | | 486 | | | | 409 | |
| Impac Secured Assets CMN Owner Trust | | | | | | | | |
| Series 2003-2, Class A1 | | | | | | | | |
| 5.50%, 08/25/2033 | | | 147 | | | | 153 | |
| Series 2006-1, Class 2A1 | | | | | | | | |
| 0.59%, 05/25/2036 * | | | 612 | | | | 545 | |
| Series 2006-2, Class 2A1 | | | | | | | | |
| 0.59%, 08/25/2036 * | | | 1,089 | | | | 938 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
| Series 2004-CB8, Class A4 | | | | | | | | |
| 4.40%, 01/12/2039 | | | 1,000 | | | | 1,057 | |
| Series 2004-CB9, Class A4 | | | | | | | | |
| 5.60%, 06/12/2041 * | | | 1,000 | | | | 1,089 | |
| Series 2005-CB11, Class AJ | | | | | | | | |
| 5.36%, 08/12/2037 * | | | 700 | | | | 644 | |
| Series 2005-CB13, Class A4 | | | | | | | | |
| 5.28%, 01/12/2043 * | | | 385 | | | | 409 | |
| Series 2006-CB15, Class A4 | | | | | | | | |
| 5.81%, 06/12/2043 * | | | 1,500 | | | | 1,620 | |
| Series 2006-CB16, Class A4 | | | | | | | | |
| 5.55%, 05/12/2045 | | | 100 | | | | 109 | |
| Series 2006-LDP9, Class A3SF | | | | | | | | |
| 0.40%, 05/15/2047 * | | | 1,000 | | | | 903 | |
| JPMorgan Chase Commercial Mortgage Securities Corp., IO | | | | | | | | |
| Series 2006-CB15, Class X1 | | | | | | | | |
| 0.07%, 06/12/2043 * | | | 55,238 | | | | 380 | |
| JPMorgan Mortgage Trust | | | | | | | | |
| Series 2004-A3, Class 4A1 | | | | | | | | |
| 2.75%, 07/25/2034 * | | | 176 | | | | 166 | |
| Series 2004-A4, Class 1A1 | | | | | | | | |
| 2.76%, 09/25/2034 * | | | 242 | | | | 233 | |
| Series 2004-S1, Class 1A7 | | | | | | | | |
| 5.00%, 09/25/2034 | | | 101 | | | | 104 | |
| Series 2005-A1, Class 3A4 | | | | | | | | |
| 5.02%, 02/25/2035 * | | | 688 | | | | 637 | |
| Series 2005-A1, Class 5A1 | | | | | | | | |
| 4.47%, 02/25/2035 * | | | 155 | | | | 154 | |
| Series 2006-A2, Class 4A1 | | | | | | | | |
| 2.75%, 08/25/2034 * | | | 561 | | | | 517 | |
| Series 2006-A2, Class 5A3 | | | | | | | | |
| 2.71%, 11/25/2033 * | | | 1,267 | | | | 1,160 | |
| Series 2006-A3, Class 6A1 | | | | | | | | |
| 2.78%, 08/25/2034 * | | | 141 | | | | 121 | |
| JPMorgan Re-REMIC | | | | | | | | |
| Series 2009-6, Class 4A1 | | | | | | | | |
| 5.85%, 09/26/2036 - 144A * | | | 501 | | | | 490 | |
| Series 2010-4, Class 7A1 | | | | | | | | |
| 4.28%, 08/26/2035 - 144A * | | | 576 | | | | 565 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
| Series 2004-C2, Class A4 | | | | | | | | |
| 4.37%, 03/15/2036 | | | 1,110 | | | | 1,178 | |
| Series 2006-C1, Class A4 | | | | | | | | |
| 5.16%, 02/15/2031 | | | 150 | | | | 165 | |
| Series 2006-C4, Class A4 | | | | | | | | |
| 5.87%, 06/15/2038 * | | | 400 | | | | 447 | |
| LB-UBS Commercial Mortgage Trust, IO | | | | | | | | |
| Series 2006-C1, Class XCL | | | | | | | | |
| 0.12%, 02/15/2041 - 144A * | | | 24,807 | | | | 265 | |
| LVII Resecuritization Trust | | | | | | | | |
| Series 2009-2, Class A4 | | | | | | | | |
| 3.00%, 09/27/2037 - 144A * | | | 708 | | | | 675 | |
| Series 2009-2, Class A5 | | | | | | | | |
| 3.00%, 09/27/2037 - 144A * | | | 2,000 | | | | 1,975 | |
| MASTR Adjustable Rate Mortgages Trust | | | | | | | | |
| Series 2004-13, Class 3A6 | | | | | | | | |
| 2.72%, 11/21/2034 * | | | 124 | | | | 121 | |
| Series 2004-13, Class 3A7 | | | | | | | | |
| 2.72%, 11/21/2034 * | | | 700 | | | | 652 | |
| MASTR Alternative Loans Trust | | | | | | | | |
| Series 2003-9, Class 2A1 | | | | | | | | |
| 6.00%, 12/25/2033 | | | 208 | | | | 209 | |
| Series 2004-5, Class 5A1 | | | | | | | | |
| 4.75%, 06/25/2019 | | | 271 | | | | 278 | |
| MASTR Asset Securitization Trust | | | | | | | | |
| Series 2003-2, Class 1A1 | | | | | | | | |
| 5.00%, 03/25/2018 | | | 140 | | | | 143 | |
| Series 2003-3, Class 3A18 | | | | | | | | |
| 5.50%, 04/25/2033 | | | 417 | | | | 432 | |
| Series 2003-11, Class 9A6 | | | | | | | | |
| 5.25%, 12/25/2033 | | | 1,060 | | | | 1,098 | |
| Series 2004-P7, Class A6 | | | | | | | | |
| 5.50%, 12/27/2033 - 144A | | | 658 | | | | 697 | |
| MASTR Resecuritization Trust, PO | | | | | | | | |
| Series 2005, Class 3 | | | | | | | | |
| 05/28/2035 - 144A | | | 295 | | | | 218 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 74 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Merrill Lynch Mortgage Investors, Inc. | | | | | | | | |
| Series 2003-A4, Class 2A | | | | | | | | |
| 2.73%, 07/25/2033 * | | $ | 196 | | | $ | 180 | |
| Series 2003-A5, Class 2A6 | | | | | | | | |
| 2.40%, 08/25/2033 * | | | 210 | | | | 190 | |
| Series 2004-A4, Class A2 | | | | | | | | |
| 2.61%, 08/25/2034 * | | | 323 | | | | 302 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
| Series 2005-LC1, Class AJ | | | | | | | | |
| 5.33%, 01/12/2044 * | | | 500 | | | | 459 | |
| Series 2006-C1, Class A4 | | | | | | | | |
| 5.67%, 05/12/2039 * | | | 730 | | | | 818 | |
| Merrill Lynch/Countrywide Commercial | | | | | | | | |
| Mortgage Trust, IO | | | | | | | | |
| Series 2006-4, Class XC | | | | | | | | |
| 0.28%, 12/12/2049 - 144A * | | | 17,753 | | | | 226 | |
| MLCC Mortgage Investors, Inc. | | | | | | | | |
| Series 2004-1, Class 2A1 | | | | | | | | |
| 2.08%, 12/25/2034 * | | | 674 | | | | 635 | |
| Series 2004-D, Class A2 | | | | | | | | |
| 0.84%, 08/25/2029 * | | | 441 | | | | 413 | |
| Morgan Stanley Capital I | | | | | | | | |
| Series 2004-HQ4, Class A7 | | | | | | | | |
| 4.97%, 04/14/2040 | | | 2,500 | | | | 2,638 | |
| Series 2006-T21, Class A4 | | | | | | | | |
| 5.16%, 10/12/2052 * | | | 200 | | | | 221 | |
| Series 2007-T27, Class A4 | | | | | | | | |
| 5.64%, 06/11/2042 * | | | 200 | | | | 227 | |
| Series 2011-C3, Class A3 | | | | | | | | |
| 4.05%, 07/15/2049 | | | 637 | | | | 660 | |
| Morgan Stanley Capital I, IO | | | | | | | | |
| Series 2006-IQ12, Class X1 | | | | | | | | |
| 0.14%, 12/15/2043 - 144A * | | | 40,446 | | | | 578 | |
| Series 2006-T21, Class X | | | | | | | | |
| 0.18%, 10/12/2052 - 144A * | | | 100,793 | | | | 854 | |
| Series 2007-HQ11, Class X | | | | | | | | |
| 0.23%, 02/12/2044 - 144A * | | | 72,304 | | | | 603 | |
| Morgan Stanley Mortgage Loan Trust | | | | | | | | |
| Series 2004-3, Class 4A | | | | | | | | |
| 5.65%, 04/25/2034 * | | | 749 | | | | 759 | |
| Morgan Stanley Re-REMIC Trust | | | | | | | | |
| Series 2009-IO, Class A1 | | | | | | | | |
| 3.00%, 07/17/2056 - 144A | | | 361 | | | | 362 | |
| Series 2009-IO, Class A2 | | | | | | | | |
| 5.00%, 07/17/2056 - 144A | | | 2,500 | | | | 2,549 | |
| Series 2010-HQ4B, Class A7A | | | | | | | | |
| 4.97%, 04/16/2040 - 144A | | | 1,400 | | | | 1,465 | |
| Series 2011-IO, Class A | | | | | | | | |
| 2.50%, 03/23/2051 - 144A | | | 2,576 | | | | 2,566 | |
| NCUA Guaranteed Notes | | | | | | | | |
| Series 2010-C1, Class APT | | | | | | | | |
| 2.65%, 10/29/2020 | | | 3,067 | | | | 3,178 | |
| Series 2010-R3, Class 1A | | | | | | | | |
| 0.81%, 12/08/2020 * | | | 933 | | | | 939 | |
| Series 2010-R3, Class 3A | | | | | | | | |
| 2.40%, 12/08/2020 | | | 463 | | | | 473 | |
| Prime Mortgage Trust | | | | | | | | |
| Series 2004-CL1, Class 1A1 | | | | | | | | |
| 6.00%, 02/25/2034 | | | 308 | | | | 325 | |
| Prime Mortgage Trust, PO | | | | | | | | |
| Series 2004-CL1, Class 1 | | | | | | | | |
| 02/25/2034 | | | 30 | | | | 20 | |
| RBSSP Resecuritization Trust | | | | | | | | |
| Series 2009-1, Class 1A1 | | | | | | | | |
| 6.50%, 02/26/2036 - 144A | | | 651 | | | | 693 | |
| Series 2010-4, Class 12A1 | | | | | | | | |
| 4.50%, 03/26/2021 - 144A | | | 573 | | | | 571 | |
| Series 2010-9, Class 7A5 | | | | | | | | |
| 4.00%, 05/26/2037 - 144A * | | | 1,000 | | | | 989 | |
| Residential Accredit Loans, Inc. | | | | | | | | |
| Series 2003-QS1, Class A6 | | | | | | | | |
| 4.25%, 01/25/2033 | | | 186 | | | | 186 | |
| Series 2003-QS13, Class A5 | | | | | | | | |
| 0.89%, 07/25/2033 * | | | 504 | | | | 437 | |
| Series 2003-QS15, Class A7 | | | | | | | | |
| 5.50%, 08/25/2033 | | | 1,252 | | | | 1,257 | |
| Series 2003-QS18, Class A1 | | | | | | | | |
| 5.00%, 09/25/2018 | | | 183 | | | | 188 | |
| Series 2004-QS7, Class A4 | | | | | | | | |
| 5.50%, 05/25/2034 | | | 376 | | | | 328 | |
| Residential Asset Mortgage Products, Inc. | | | | | | | | |
| Series 2004-SL2, Class A3 | | | | | | | | |
| 7.00%, 10/25/2031 | | | 501 | | | | 526 | |
| Residential Asset Securitization Trust | | | | | | | | |
| Series 2002-A13, Class A4 | | | | | | | | |
| 5.25%, 12/25/2017 | | | 105 | | | | 108 | |
| Residential Funding Mortgage Securities I | | | | | | | | |
| Series 2003-S4, Class A4 | | | | | | | | |
| 5.75%, 03/25/2033 | | | 843 | | | | 890 | |
| Series 2003-S20, Class 2A1 | | | | | | | | |
| 4.75%, 12/25/2018 | | | 160 | | | | 164 | |
| Salomon Brothers Mortgage Securities VII, Inc. | | | | | | | | |
| Series 2003-HYB1, Class A | | | | | | | | |
| 2.74%, 09/25/2033 * | | | 585 | | | | 540 | |
| Series 2003-UP1, Class A | | | | | | | | |
| 3.95%, 04/25/2032 - 144A * | | | 53 | | | | 45 | |
| Sequoia Mortgage Trust | | | | | | | | |
| Series 2004-11, Class A1 | | | | | | | | |
| 0.54%, 12/20/2034 * | | | 745 | | | | 597 | |
| Series 2004-11, Class A3 | | | | | | | | |
| 0.54%, 12/20/2034 * | | | 926 | | | | 803 | |
| Series 2004-12, Class A3 | | | | | | | | |
| 0.72%, 01/20/2035 * | | | 483 | | | | 377 | |
| Springleaf Mortgage Loan Trust | | | | | | | | |
| Series 2011-1A, Class A1 | | | | | | | | |
| 4.05%, 01/25/2058 - 144A * | | | 2,189 | | | | 2,185 | |
| Structured Adjustable Rate Mortgage Loan Trust | | | | | | | | |
| Series 2004-6, Class 5A4 | | | | | | | | |
| 4.95%, 06/25/2034 * | | | 800 | | | | 754 | |
| Structured Asset Mortgage Investments, Inc. | | | | | | | | |
| Series 2004-AR5, Class 1A1 | | | | | | | | |
| 0.90%, 10/19/2034 * | | | 626 | | | | 515 | |
| Structured Asset Securities Corp. | | | | | | | | |
| Series 2003-16, Class A3 | | | | | | | | |
| 0.74%, 06/25/2033 * | | | 159 | | | | 151 | |
| Series 2003-32, Class 1A1 | | | | | | | | |
| 5.23%, 11/25/2033 * | | | 227 | | | | 238 | |
| Series 2003-33H, Class 1A1 | | | | | | | | |
| 5.50%, 10/25/2033 | | | 206 | | | | 209 | |
| Series 2003-35, Class 3A1 | | | | | | | | |
| 0.74%, 12/25/2033 * | | | 606 | | | | 566 | |
| Series 2003-37A, Class 2A | | | | | | | | |
| 5.02%, 12/25/2033 * | | | 297 | | | | 293 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 75 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Structured Asset Securities Corp. (continued) | | | | | | | | |
| Series 2004-4XS, Class 1A5 | | | | | | | | |
| 5.49%, 02/25/2034 * | | $ | 756 | | | $ | 766 | |
| Series 2004-5H, Class A4 | | | | | | | | |
| 5.54%, 12/25/2033 | | | 955 | | | | 932 | |
| Thornburg Mortgage Securities Trust | | | | | | | | |
| Series 2003-4, Class A1 | | | | | | | | |
| 0.88%, 09/25/2043 * | | | 554 | | | | 497 | |
| Series 2004-1, Class II2A | | | | | | | | |
| 1.74%, 03/25/2044 * | | | 249 | | | | 210 | |
| TIAA Seasoned Commercial Mortgage Trust | | | | | | | | |
| Series 2007-C4, Class A3 | | | | | | | | |
| 5.91%, 08/15/2039 * | | | 650 | | | | 701 | |
| Vendee Mortgage Trust | | | | | | | | |
| Series 1993-1, Class ZB | | | | | | | | |
| 7.25%, 02/15/2023 | | | 443 | | | | 516 | |
| Series 1998-2, Class 1G | | | | | | | | |
| 6.75%, 06/15/2028 | | | 775 | | | | 914 | |
| Vericrest Opportunity Loan Transferee | | | | | | | | |
| Series 2011-NL1A, Class A1 | | | | | | | | |
| 5.93%, 12/26/2050 - 144A * | | | 1,124 | | | | 1,126 | |
| Series 2011-NL1A, Class A2 | | | | | | | | |
| 9.08%, 12/26/2050 - 144A * | | | 1,400 | | | | 1,396 | |
| Series 2011-NL2A, Class A1 | | | | | | | | |
| 5.68%, 06/25/2051 - 144A * | | | 1,212 | | | | 1,212 | |
| Series 2011-NL2A, Class A2 | | | | | | | | |
| 9.32%, 06/25/2051 - 144A * | | | 1,300 | | | | 768 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
| Series 2003-C9, Class A4 | | | | | | | | |
| 5.01%, 12/15/2035 * | | | 1,500 | | | | 1,597 | |
| Series 2004-C11, Class A5 | | | | | | | | |
| 5.22%, 01/15/2041 * | | | 1,118 | | | | 1,204 | |
| Wachovia Bank Commercial Mortgage Trust, IO | | | | | | | | |
| Series 2006-C24, Class XC | | | | | | | | |
| 0.05%, 03/15/2045 - 144A * | | | 153,452 | | | | 676 | |
| WaMu Mortgage Pass-Through Certificates | | | | | | | | |
| Series 2003-AR6, Class A1 | | | | | | | | |
| 2.57%, 06/25/2033 * | | | 1,124 | | | | 1,045 | |
| Series 2003-AR7, Class A7 | | | | | | | | |
| 2.44%, 08/25/2033 * | | | 407 | | | | 384 | |
| Series 2003-AR8, Class A | | | | | | | | |
| 2.48%, 08/25/2033 * | | | 140 | | | | 132 | |
| Series 2003-AR9, Class 1A6 | | | | | | | | |
| 2.47%, 09/25/2033 * | | | 710 | | | | 672 | |
| Series 2003-S3, Class 1A4 | | | | | | | | |
| 5.50%, 06/25/2033 | | | 842 | | | | 859 | |
| Series 2003-S4, Class 2A10 | | | | | | | | |
| 16.79%, 06/25/2033 * | | | 55 | | | | 62 | |
| Series 2003-S8, Class A4 | | | | | | | | |
| 4.50%, 09/25/2018 | | | 239 | | | | 242 | |
| Series 2003-S9, Class A8 | | | | | | | | |
| 5.25%, 10/25/2033 | | | 611 | | | | 632 | |
| Series 2004-AR3, Class A1 | | | | | | | | |
| 2.57%, 06/25/2034 * | | | 96 | | | | 93 | |
| Series 2004-AR3, Class A2 | | | | | | | | |
| 2.57%, 06/25/2034 * | | | 984 | | | | 952 | |
| Series 2004-CB2, Class 7A | | | | | | | | |
| 5.50%, 08/25/2019 | | | 536 | | | | 561 | |
| Series 2004-CB3, Class 4A | | | | | | | | |
| 6.00%, 10/25/2019 | | | 617 | | | | 640 | |
| Series 2004-S1, Class 1A3 | | | | | | | | |
| 0.64%, 03/25/2034 * | | | 187 | | | | 182 | |
| Series 2004-S2, Class 2A4 | | | | | | | | |
| 5.50%, 06/25/2034 | | | 601 | | | | 600 | |
| Washington Mutual MSC Mortgage Pass-Through Certificates | | | | | | | | |
| Series 2003-MS2, Class 1A1 | | | | | | | | |
| 5.75%, 02/25/2033 | | | 618 | | | | 646 | |
| Series 2004-RA2, Class 2A | | | | | | | | |
| 7.00%, 07/25/2033 | | | 187 | | | | 193 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
| Series 2003-11, Class 1A10 | | | | | | | | |
| 4.75%, 10/25/2018 | | | 1,193 | | | | 1,225 | |
| Series 2003-11, Class 2A1 | | | | | | | | |
| 4.75%, 10/25/2018 | | | 812 | | | | 834 | |
| Series 2003-15, Class 1A1 | | | | | | | | |
| 4.75%, 12/25/2018 | | | 229 | | | | 236 | |
| Series 2003-J, Class 2A5 | | | | | | | | |
| 4.42%, 10/25/2033 * | | | 26 | | | | 26 | |
| Series 2003-K, Class 1A1 | | | | | | | | |
| 4.43%, 11/25/2033 * | | | 86 | | | | 87 | |
| Series 2004-4, Class A9 | | | | | | | | |
| 5.50%, 05/25/2034 | | | 707 | | | | 726 | |
| Series 2004-7, Class 2A2 | | | | | | | | |
| 5.00%, 07/25/2019 | | | 330 | | | | 341 | |
| Series 2004-EE, Class 2A1 | | | | | | | | |
| 2.71%, 12/25/2034 * | | | 526 | | | | 501 | |
| Series 2004-EE, Class 2A2 | | | | | | | | |
| 2.71%, 12/25/2034 * | | | 132 | | | | 127 | |
| Series 2004-EE, Class 3A1 | | | | | | | | |
| 2.75%, 12/25/2034 * | | | 127 | | | | 122 | |
| Series 2004-EE, Class 3A2 | | | | | | | | |
| 2.75%, 12/25/2034 * | | | 190 | | | | 185 | |
| Series 2004-I, Class 1A1 | | | | | | | | |
| 2.74%, 07/25/2034 * | | | 168 | | | | 162 | |
| Series 2004-R, Class 2A1 | | | | | | | | |
| 2.62%, 09/25/2034 * | | | 1,492 | | | | 1,485 | |
| Series 2004-U, Class A1 | | | | | | | | |
| 2.74%, 10/25/2034 * | | | 1,707 | | | | 1,607 | |
| Series 2004-V, Class 1A1 | | | | | | | | |
| 2.72%, 10/25/2034 * | | | 300 | | | | 288 | |
| Series 2004-V, Class 1A2 | | | | | | | | |
| 2.72%, 10/25/2034 * | | | 134 | | | | 130 | |
| Series 2004-W, Class A9 | | | | | | | | |
| 2.62%, 11/25/2034 * | | | 428 | | | | 413 | |
| Series 2005-1, Class 2A1 | | | | | | | | |
| 5.00%, 01/25/2020 | | | 356 | | | | 370 | |
| Series 2005-13, Class A1 | | | | | | | | |
| 5.00%, 11/25/2020 | | | 228 | | | | 237 | |
| Series 2005-AR8, Class 2A1 | | | | | | | | |
| 2.72%, 06/25/2035 * | | | 675 | | | | 626 | |
| Series 2005-AR9, Class 2A1 | | | | | | | | |
| 2.67%, 05/25/2035 * | | | 260 | | | | 242 | |
| WF-RBS Commercial Mortgage Trust | | | | | | | | |
| Series 2011-C3, Class A4 | | | | | | | | |
| 4.38%, 03/15/2044 - 144A | | | 550 | | | | 556 | |
| | | | | | | | |
Total Mortgage-Backed Securities (cost $190,245) | | | | | | | 189,399 | |
| | | | | | | | |
| |
ASSET-BACKED SECURITIES - 2.6% | | | | | | | | |
| AH Mortgage Advance Trust | | | | | | | | |
| Series SART-1, Class A1 | | | | | | | | |
| 2.63%, 05/10/2042 - 144A | | | 691 | | | | 688 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | | Page 76 | | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
ASSET-BACKED SECURITIES (continued) | | | | | | | | |
| AH Mortgage Advance Trust (continued) | | | | | | | | |
| Series SART-1, Class A2 | | | | | | | | |
| 3.37%, 05/10/2043 — 144A | | $ | 4,434 | | | $ | 4,415 | |
| Series SART-2, Class A1 | | | | | | | | |
| 3.27%, 09/15/2043 — 144A | | | 2,134 | | | | 2,133 | |
| Series SART-2, Class B1 | | | | | | | | |
| 6.90%, 09/15/2043 — 144A | | | 800 | | | | 800 | |
| Ally Auto Receivables Trust | | | | | | | | |
| Series 2009-A, Class A3 | | | | | | | | |
| 2.33%, 06/17/2013 — 144A | | | 60 | | | | 61 | |
| Series 2010-1, Class A3 | | | | | | | | |
| 1.45%, 05/15/2014 | | | 256 | | | | 258 | |
| Series 2010-3, Class A3 | | | | | | | | |
| 1.11%, 10/15/2014 | | | 920 | | | | 925 | |
| Series 2010-3, Class A4 | | | | | | | | |
| 1.55%, 08/17/2015 | | | 357 | | | | 363 | |
| Series 2010-4, Class A3 | | | | | | | | |
| 0.91%, 11/17/2014 | | | 431 | | | | 432 | |
| Series 2011-1, Class A3 | | | | | | | | |
| 1.38%, 01/15/2015 | | | 285 | | | | 288 | |
| American Airlines Pass-Through Trust | | | | | | | | |
| Series 2011-1, Class A | | | | | | | | |
| 5.25%, 01/31/2021 ^ | | | 109 | | | | 99 | |
| Series 2011-2, Class A | | | | | | | | |
| 8.63%, 04/15/2023 | | | 628 | | | | 628 | |
| AmeriCredit Automobile Receivables Trust | | | | | | | | |
| Series 2010-1, Class A3 | | | | | | | | |
| 1.66%, 03/17/2014 | | | 70 | | | | 70 | |
| Series 2010-3, Class A3 | | | | | | | | |
| 1.14%, 04/08/2015 | | | 535 | | | | 535 | |
| Series 2010-4, Class A2 | | | | | | | | |
| 0.96%, 05/08/2014 | | | 181 | | | | 181 | |
| Series 2010-4, Class A3 | | | | | | | | |
| 1.27%, 04/08/2015 | | | 125 | | | | 125 | |
| Series 2011-1, Class A2 | | | | | | | | |
| 0.84%, 06/09/2014 | | | 387 | | | | 387 | |
| Series 2011-1, Class A3 | | | | | | | | |
| 1.39%, 09/08/2015 | | | 200 | | | | 201 | |
| Series 2011-3, Class A2 | | | | | | | | |
| 0.84%, 11/10/2014 | | | 787 | | | | 786 | |
| Series 2011-4, Class A2 | | | | | | | | |
| 0.92%, 03/09/2015 | | | 667 | | | | 667 | |
| Series 2011-4, Class A3 | | | | | | | | |
| 1.17%, 05/09/2016 | | | 1,885 | | | | 1,883 | |
| Series 2011-5, Class A3 | | | | | | | | |
| 1.55%, 07/08/2016 | | | 1,593 | | | | 1,593 | |
| Arch Bay Asset-Backed Securities | | | | | | | | |
| Series 2010-2, Class A | | | | | | | | |
| 4.13%, 04/25/2057 — 144A * | | | 300 | | | | 299 | |
| Asset Backed Funding Certificates | | | | | | | | |
| Series 2005-AQ1, Class A4 | | | | | | | | |
| 5.01%, 06/25/2035 * | | | 769 | | | | 711 | |
| Bank of America Auto Trust | | | | | | | | |
| Series 2009-2A, Class A3 | | | | | | | | |
| 2.13%, 09/15/2013 — 144A | | | 32 | | | | 32 | |
| Series 2009-3A, Class A3 | | | | | | | | |
| 1.67%, 12/16/2013 — 144A | | | 46 | | | | 46 | |
| Series 2010-1A, Class A3 | | | | | | | | |
| 1.39%, 03/15/2014 — 144A | | | 150 | | | | 151 | |
| Series 2010-1A, Class A4 | | | | | | | | |
| 2.18%, 02/15/2017 — 144A | | | 185 | | | | 189 | |
| Series 2010-2, Class A3 | | | | | | | | |
| 1.31%, 07/15/2014 | | | 271 | | | | 273 | |
| Series 2010-2, Class A4 | | | | | | | | |
| 1.94%, 06/15/2017 | | | 510 | | | | 520 | |
| CarMax Auto Owner Trust | | | | | | | | |
| Series 2010-1, Class A3 | | | | | | | | |
| 1.56%, 07/15/2014 | | | 171 | | | | 172 | |
| Series 2011-1, Class A3 | | | | | | | | |
| 1.29%, 09/15/2015 | | | 630 | | | | 636 | |
| Series 2011-1, Class A4 | | | | | | | | |
| 2.16%, 09/15/2016 | | | 530 | | | | 545 | |
| Chase Funding Mortgage Loan Asset-Backed Certificates | | | | | | | | |
| Series 2003-2, Class 2A2 | | | | | | | | |
| 0.80%, 02/25/2033 * | | | 617 | | | | 571 | |
| Series 2003-5, Class 1A4 | | | | | | | | |
| 4.40%, 02/25/2030 | | | 293 | | | | 294 | |
| Series 2003-6, Class 1A4 | | | | | | | | |
| 4.50%, 11/25/2034 | | | 396 | | | | 391 | |
| Series 2003-6, Class 1A5 | | | | | | | | |
| 5.35%, 11/25/2034 * | | | 500 | | | | 431 | |
| Chrysler Financial Auto Securitization Trust | | | | | | | | |
| Series 2010-A, Class A3 | | | | | | | | |
| 0.91%, 08/08/2013 | | | 1,000 | | | | 1,002 | |
| Series 2010-A, Class B | | | | | | | | |
| 1.65%, 11/08/2013 | | | 2,000 | | | | 1,996 | |
| Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
| Series 2011-5, Class 1A1 | | | | | | | | |
| 0.43%, 02/25/2046 — 144A * | | | 897 | | | | 852 | |
| CNH Equipment Trust | | | | | | | | |
| Series 2009-C, Class A3 | | | | | | | | |
| 1.85%, 12/16/2013 | | | 3 | | | | 3 | |
| Series 2010-A, Class A3 | | | | | | | | |
| 1.54%, 07/15/2014 | | | 302 | | | | 303 | |
| Series 2010-C, Class A3 | | | | | | | | |
| 1.17%, 05/15/2015 | | | 500 | | | | 501 | |
| Series 2011-A, Class A3 | | | | | | | | |
| 1.20%, 05/16/2016 | | | 350 | | | | 352 | |
| Series 2011-A, Class A4 | | | | | | | | |
| 2.04%, 10/17/2016 | | | 267 | | | | 274 | |
| Continental Airlines Pass-Through Trust | | | | | | | | |
| Series 2007-1A, Class A | | | | | | | | |
| 5.98%, 04/19/2022 | | | 279 | | | | 284 | |
| Credit Acceptance Auto Loan Trust | | | | | | | | |
| Series 2011-1, Class A | | | | | | | | |
| 2.61%, 03/15/2019 — 144A | | | 860 | | | | 860 | |
| Delta Air Lines, Inc., Pass-Through Trust | | | | | | | | |
| Series 2010-2, Class A | | | | | | | | |
| 4.95%, 05/23/2019 ^ | | | 276 | | | | 269 | |
| Series 2011-1, Class A | | | | | | | | |
| 5.30%, 04/15/2019 | | | 92 | | | | 92 | |
| Ford Credit Auto Lease Trust | | | | | | | | |
| Series 2011-A, Class A2 | | | | | | | | |
| 0.74%, 09/15/2013 | | | 1,800 | | | | 1,801 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
| Series 2011-B, Class A2 | | | | | | | | |
| 0.68%, 01/15/2014 | | | 400 | | | | 401 | |
| Fortress Opportunities Residential Transaction | | | | | | | | |
| Series 2011-1A, Class A1 | | | | | | | | |
| 7.21%, 10/25/2047 — 144A * Ә | | | 2,500 | | | | 2,500 | |
| Freedom Trust | | | | | | | | |
| Series 2011-1, Class A13 | | | | | | | | |
| 1.70%, 11/30/2037 — 144A * | | | 591 | | | | 581 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 77 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
ASSET-BACKED SECURITIES (continued) | | | | | | | | |
| GE Capital Credit Card Master Note Trust | | | | | | | | |
| Series 2009-2, Class A | | | | | | | | |
| 3.69%, 07/15/2015 | | $ | 600 | | | $ | 613 | |
| HSBC Home Equity Loan Trust | | | | | | | | |
| Series 2005-2, Class A1 | | | | | | | | |
| 0.51%, 01/20/2035 * | | | 87 | | | | 77 | |
| Series 2006-1, Class A1 | | | | | | | | |
| 0.40%, 01/20/2036 * | | | 158 | | | | 147 | |
| Series 2007-1, Class A2F | | | | | | | | |
| 5.60%, 03/20/2036 * | | | 165 | | | | 166 | |
| Series 2007-1, Class AS | | | | | | | | |
| 0.44%, 03/20/2036 * | | | 171 | | | | 143 | |
| Series 2007-3, Class APT | | | | | | | | |
| 1.44%, 11/20/2036 * | | | 122 | | | | 109 | |
| Huntington Auto Trust | | | | | | | | |
| Series 2011-1A, Class A2 | | | | | | | | |
| 0.76%, 04/15/2014 — 144A | | | 2,400 | | | | 2,399 | |
| Series 2011-1A, Class A3 | | | | | | | | |
| 1.01%, 01/15/2016 — 144A | | | 2,000 | | | | 1,998 | |
| Series 2011-1A, Class A4 | | | | | | | | |
| 1.31%, 11/15/2016 — 144A | | | 1,500 | | | | 1,496 | |
| Hyundai Auto Receivables Trust | | | | | | | | |
| Series 2010-B, Class A3 | | | | | | | | |
| 0.97%, 04/15/2015 | | | 340 | | | | 341 | |
| Series 2010-B, Class A4 | | | | | | | | |
| 1.63%, 03/15/2017 | | | 375 | | | | 381 | |
| Series 2011-A, Class A3 | | | | | | | | |
| 1.16%, 04/15/2015 | | | 275 | | | | 277 | |
| Series 2011-A, Class A4 | | | | | | | | |
| 1.78%, 12/15/2015 | | | 310 | | | | 317 | |
| Series 2011-B, Class A3 | | | | | | | | |
| 1.04%, 09/15/2015 | | | 257 | | | | 258 | |
| Series 2011-B, Class A4 | | | | | | | | |
| 1.65%, 02/15/2017 | | | 288 | | | | 293 | |
| John Deere Owner Trust | | | | | | | | |
| Series 2011-A, Class A3 | | | | | | | | |
| 1.29%, 01/15/2016 | | | 335 | | | | 338 | |
| Series 2011-A, Class A4 | | | | | | | | |
| 1.96%, 04/16/2018 | | | 285 | | | | 292 | |
| LAI Vehicle Lease Securitization Trust | | | | | | | | |
| Series 2010-A, Class A | | | | | | | | |
| 2.55%, 09/15/2016 — 144A | | | 524 | | | | 524 | |
| Lake Country Mortgage Loan Trust | | | | | | | | |
| Series 2006-HE1, Class A3 | | | | | | | | |
| 0.59%, 07/25/2034 — 144A * | | | 739 | | | | 706 | |
| Madison Avenue Manufactured Housing Contract | | | | | | | | |
| Series 2002-A, Class M2 | | | | | | | | |
| 2.49%, 03/25/2032 * | | | 657 | | | | 602 | |
| Mercedes-Benz Auto Receivables Trust | | | | | | | | |
| Series 2010-1, Class A3 | | | | | | | | |
| 1.42%, 08/15/2014 | | | 223 | | | | 224 | |
| Series 2011-1, Class A3 | | | | | | | | |
| 0.85%, 03/16/2015 | | | 545 | | | | 546 | |
| Morgan Stanley ABS Capital I | | | | | | | | |
| Series 2004-WMC3, Class M1 | | | | | | | | |
| 0.99%, 01/25/2035 * | | | 42 | | | | 41 | |
| NCUA Guaranteed Notes | | | | | | | | |
| Series 2010-A1, Class A | | | | | | | | |
| 0.59%, 12/07/2020 * | | | 257 | | | | 258 | |
| Newcastle Investment Trust | | | | | | | | |
| Series 2011-MH1, Class A | | | | | | | | |
| 2.45%, 12/10/2033 — 144A | | | 279 | | | | 282 | |
| Nissan Auto Receivables Owner Trust | | | | | | | | |
| Series 2010-A, Class A3 | | | | | | | | |
| 0.87%, 07/15/2014 | | | 455 | | | | 456 | |
| Series 2010-A, Class A4 | | | | | | | | |
| 1.31%, 09/15/2016 | | | 300 | | | | 303 | |
| PennyMac Loan Trust | | | | | | | | |
| Series 2010-NPL1, Class A | | | | | | | | |
| 4.25%, 05/25/2050 — 144A * | | | 35 | | | | 35 | |
| Series 2010-NPL1, Class M1 | | | | | | | | |
| 5.00%, 05/25/2050 — 144A * | | | 800 | | | | 788 | |
| Real Estate Asset Trust | | | | | | | | |
| Series 2011-3A, Class A1 | | | | | | | | |
| 5.44%, 06/25/2031 — 144A | | | 193 | | | | 194 | |
| Residential Asset Mortgage Products, Inc. | | | | | | | | |
| Series 2004-RS6, Class AI4 | | | | | | | | |
| 5.46%, 05/25/2032 * | | | 359 | | | | 356 | |
| Series 2004-RZ1, Class M1 | | | | | | | | |
| 4.32%, 03/25/2034 * | | | 571 | | | | 357 | |
| Series 2005-EFC5, Class A3 | | | | | | | | |
| 0.58%, 10/25/2035 * | | | 600 | | | | 493 | |
| Residential Asset Securities Corp. | | | | | | | | |
| Series 2005-KS9, Class A3 | | | | | | | | |
| 0.61%, 10/25/2035 * | | | 500 | | | | 473 | |
| Residential Credit Solutions Trust | | | | | | | | |
| Series 2011-1, Class A1 | | | | | | | | |
| 6.00%, 03/25/2041 — 144A | | | 994 | | | | 993 | |
| Santander Drive Auto Receivables Trust | | | | | | | | |
| Series 2010-A, Class A3 | | | | | | | | |
| 1.83%, 11/17/2014 — 144A | | | 400 | | | | 404 | |
| Series 2010-A, Class A4 | | | | | | | | |
| 2.39%, 06/15/2017 — 144A | | | 400 | | | | 407 | |
| Series 2011-S2A, Class B | | | | | | | | |
| 2.06%, 06/15/2017 — 144A | | | 197 | | | | 197 | |
| Saxon Asset Securities Trust | | | | | | | | |
| Series 2003-1, Class AF6 | | | | | | | | |
| 4.80%, 06/25/2033 * | | | 349 | | | | 349 | |
| Structured Asset Investment Loan Trust | | | | | | | | |
| Series 2005-5, Class A9 | | | | | | | | |
| 0.51%, 06/25/2035 * | | | 400 | | | | 371 | |
| Structured Asset Securities Corp. | | | | | | | | |
| Series 2002-AL1, Class A2 | | | | | | | | |
| 3.45%, 02/25/2032 | | | 290 | | | | 264 | |
| Series 2004-6XS, Class A5A | | | | | | | | |
| 5.53%, 03/25/2034 * | | | 591 | | | | 563 | |
| Series 2004-6XS, Class A5B | | | | | | | | |
| 5.55%, 03/25/2034 * | | | 591 | | | | 563 | |
| Series 2005-NC1, Class A11 | | | | | | | | |
| 4.69%, 02/25/2035 * | | | 1,120 | | | | 1,107 | |
| Toyota Auto Receivables Owner Trust | | | | | | | | |
| Series 2010-C, Class A3 | | | | | | | | |
| 0.77%, 04/15/2014 | | | 70 | | | | 70 | |
| Series 2011-A, Class A3 | | | | | | | | |
| 0.98%, 10/15/2014 | | | 845 | | | | 849 | |
| USAA Auto Owner Trust | | | | | | | | |
| Series 2009-2, Class A3 | | | | | | | | |
| 1.54%, 10/15/2012 | | | 46 | | | | 47 | |
| Series 2009-2, Class A4 | | | | | | | | |
| 2.53%, 06/17/2013 | | | 115 | | | | 118 | |
| Westlake Automobile Receivables Trust | | | | | | | | |
| Series 2011-1A, Class A2 | | | | | | | | |
| 1.08%, 07/15/2013 — 144A | | | 217 | | | | 217 | |
| Series 2011-1A, Class A3 | | | | | | | | |
| 1.49%, 06/16/2014 — 144A | | | 303 | | | | 303 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 78 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
ASSET-BACKED SECURITIES (continued) | | | | | | | | |
| World Omni Auto Receivables Trust | | | | | | | | |
| Series 2010-A, Class A4 | | | | | | | | |
| 2.21%, 05/15/2015 | | $ | 275 | | | $ | 280 | |
| | | | | | | | |
Total Asset-Backed Securities (cost $58,274) | | | | | | | 58,235 | |
| | | | | | | | |
| | | | | | | | | |
MUNICIPAL GOVERNMENT OBLIGATIONS — 0.1% | | | | | | | | |
| American Municipal Power, Inc. | | | | | | | | |
| 7.50%, 02/15/2050 | | | 640 | | | | 820 | |
| New York State Dormitory Authority, Revenue Bond | | | | | | | | |
| 5.60%, 03/15/2040 | | | 280 | | | | 334 | |
| Ohio State University | | | | | | | | |
| 4.80%, 06/01/2111 | | | 1,370 | | | | 1,387 | |
| Port Authority of New York & New Jersey | | | | | | | | |
| 5.65%, 11/01/2040 | | | 485 | | | | 551 | |
| State of Illinois | | | | | | | | |
| 5.10%, 06/01/2033 | | | 85 | | | | 77 | |
| | | | | | | | |
Total Municipal Government Obligations (cost $2,849) | | | | | | | 3,169 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 11.4% | | | | | | | | |
Aerospace & Defense — 0.1% | | | | | | | | |
| BAE Systems Holdings, Inc. | | | | | | | | |
| 5.20%, 08/15/2015 — 144A | | | 380 | | | | 409 | |
| BAE Systems PLC | | | | | | | | |
| 5.80%, 10/11/2041 — 144A ^ | | | 439 | | | | 449 | |
| Lockheed Martin Corp. | | | | | | | | |
| 2.13%, 09/15/2016 | | | 320 | | | | 323 | |
| 4.25%, 11/15/2019 | | | 150 | | | | 161 | |
| 4.85%, 09/15/2041 | | | 190 | | | | 201 | |
| 5.72%, 06/01/2040 | | | 108 | | | | 127 | |
| United Technologies Corp. | | | | | | | | |
| 8.88%, 11/15/2019 | | | 250 | | | | 343 | |
Air Freight & Logistics — 0.0% ∞ | | | | | | | | |
| United Parcel Service of America, Inc. | | | | | | | | |
| 8.38%, 04/01/2020 | | | 60 | | | | 82 | |
| 8.38%, 04/01/2030 * | | | 200 | | | | 294 | |
Auto Components — 0.0% ∞ | | | | | | | | |
| Johnson Controls, Inc. | | | | | | | | |
| 4.25%, 03/01/2021 ^ | | | 335 | | | | 350 | |
Automobiles — 0.1% | | | | | | | | |
| Daimler Finance North America LLC | | | | | | | | |
| 2.63%, 09/15/2016 — 144A | | | 778 | | | | 773 | |
| 6.50%, 11/15/2013 | | | 80 | | | | 88 | |
| 7.30%, 01/15/2012 | | | 460 | | | | 466 | |
Beverages — 0.1% | | | | | | | | |
| Anheuser-Busch InBev Worldwide, Inc. | | | | | | | | |
| 1.50%, 07/14/2014 | | | 136 | | | | 138 | |
| 7.75%, 01/15/2019 | | | 650 | | | | 850 | |
| 8.20%, 01/15/2039 | | | 240 | | | | 375 | |
| PepsiCo, Inc. | | | | | | | | |
| 3.00%, 08/25/2021 ^ | | | 250 | | | | 255 | |
| 7.90%, 11/01/2018 | | | 21 | | | | 28 | |
| SABMiller PLC | | | | | | | | |
| 5.50%, 08/15/2013 — 144A | | | 180 | | | | 193 | |
| 5.70%, 01/15/2014 — 144A | | | 330 | | | | 360 | |
Biotechnology — 0.0% ∞ | | | | | | | | |
| Amgen, Inc. | | | | | | | | |
| 3.45%, 10/01/2020 | | | 400 | | | | 414 | |
| 4.50%, 03/15/2020 | | | 56 | | | | 62 | |
| 5.65%, 06/15/2042 | | | 252 | | | | 305 | |
| 5.75%, 03/15/2040 | | | 165 | | | | 200 | |
Capital Markets — 1.6% | | | | | | | | |
| Bank of New York Mellon Corp. | | | | | | | | |
| 2.95%, 06/18/2015 ^ | | | 675 | | | | 702 | |
| 3.10%, 01/15/2015 | | | 125 | | | | 131 | |
| 3.55%, 09/23/2021 ^ | | | 509 | | | | 510 | |
| 4.60%, 01/15/2020 | | | 40 | | | | 43 | |
| BlackRock, Inc. | | | | | | | | |
| 6.25%, 09/15/2017 | | | 635 | | | | 735 | |
| BP Capital Markets PLC | | | | | | | | |
| 3.88%, 03/10/2015 | | | 675 | | | | 723 | |
| 4.74%, 03/11/2021 ^ | | | 100 | | | | 112 | |
| Charles Schwab Corp. | | | | | | | | |
| 4.95%, 06/01/2014 | | | 100 | | | | 110 | |
| Credit Suisse | | | | | | | | |
| 4.38%, 08/05/2020 | | | 316 | | | | 321 | |
| 5.30%, 08/13/2019 | | | 1,200 | | | | 1,290 | |
| 5.40%, 01/14/2020 | | | 200 | | | | 200 | |
| 6.00%, 02/15/2018 | | | 1,825 | | | | 1,880 | |
| Credit Suisse USA, Inc. | | | | | | | | |
| 5.13%, 08/15/2015 ^ | | | 170 | | | | 180 | |
| Deutsche Bank AG | | | | | | | | |
| 2.38%, 01/11/2013 | | | 250 | | | | 250 | |
| 3.25%, 01/11/2016 ^ | | | 400 | | | | 409 | |
| 3.88%, 08/18/2014 ^ | | | 100 | | | | 103 | |
| Goldman Sachs Group, Inc. | | | | | | | | |
| 3.63%, 02/07/2016 ^ | | | 255 | | | | 253 | |
| 3.70%, 08/01/2015 | | | 308 | | | | 308 | |
| 5.25%, 10/15/2013 — 07/27/2021 | | | 691 | | | | 704 | |
| 5.38%, 03/15/2020 | | | 390 | | | | 395 | |
| 6.00%, 06/15/2020 | | | 2,047 | | | | 2,156 | |
| 6.15%, 04/01/2018 | | | 200 | | | | 214 | |
| 6.25%, 09/01/2017 | | | 650 | | | | 703 | |
| 6.75%, 10/01/2037 | | | 200 | | | | 192 | |
| 7.50%, 02/15/2019 | | | 4,875 | | | | 5,508 | |
| Jefferies Group, Inc. | | | | | | | | |
| 3.88%, 11/09/2015 | | | 171 | | | | 163 | |
| 6.25%, 01/15/2036 | | | 260 | | | | 224 | |
| 6.45%, 06/08/2027 | | | 180 | | | | 169 | |
| 8.50%, 07/15/2019 | | | 1,720 | | | | 1,853 | |
| Macquarie Group, Ltd. | | | | | | | | |
| 6.25%, 01/14/2021 — 144A | | | 525 | | | | 519 | |
| 7.30%, 08/01/2014 — 144A | | | 500 | | | | 538 | |
| Morgan Stanley | | | | | | | | |
| 4.00%, 07/24/2015 | | | 333 | | | | 323 | |
| 4.20%, 11/20/2014 | | | 156 | | | | 154 | |
| 5.45%, 01/09/2017 | | | 500 | | | | 503 | |
| 5.63%, 09/23/2019 | | | 2,610 | | | | 2,577 | |
| 5.75%, 01/25/2021 | | | 400 | | | | 395 | |
| 5.95%, 12/28/2017 | | | 700 | | | | 706 | |
| 7.30%, 05/13/2019 | | | 1,800 | | | | 1,932 | |
| Morgan Stanley — Series F | | | | | | | | |
| 5.55%, 04/27/2017 | | | 170 | | | | 171 | |
| 6.25%, 08/28/2017 | | | 450 | | | | 467 | |
| Morgan Stanley — Series MTN | | | | | | | | |
| 6.63%, 04/01/2018 | | | 1,200 | | | | 1,251 | |
| Nomura Holdings, Inc. | | | | | | | | |
| 4.13%, 01/19/2016 | | | 200 | | | | 202 | |
| 5.00%, 03/04/2015 | | | 350 | | | | 363 | |
| 6.70%, 03/04/2020 | | | 543 | | | | 606 | |
| UBS AG | | | | | | | | |
| 2.25%, 08/12/2013 | | | 250 | | | | 249 | |
| 3.88%, 01/15/2015 | | | 600 | | | | 602 | |
| 4.88%, 08/04/2020 | | | 525 | | | | 539 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 79 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Capital Markets (continued) | | | | | | | | |
| UBS AG (continued) | | | | | | | | |
| 5.88%, 12/20/2017 | | $ | 110 | | | $ | 120 | |
Chemicals — 0.2% | | | | | | | | |
| Dow Chemical Co. | | | | | | | | |
| 4.25%, 11/15/2020 ^ | | | 174 | | | | 179 | |
| 7.60%, 05/15/2014 | | | 640 | | | | 727 | |
| 8.55%, 05/15/2019 | | | 456 | | | | 592 | |
| E.I. du Pont de Nemours & Co. | | | | | | | | |
| 1.95%, 01/15/2016 ^ | | | 173 | | | | 177 | |
| 4.90%, 01/15/2041 | | | 125 | | | | 140 | |
| 5.60%, 12/15/2036 | | | 550 | | | | 672 | |
| Mosaic Co. | | | | | | | | |
| 3.75%, 11/15/2021 | | | 209 | | | | 214 | |
| 4.88%, 11/15/2041 | | | 253 | | | | 259 | |
| Potash Corp., of Saskatchewan, Inc. | | | | | | | | |
| 6.50%, 05/15/2019 ^ | | | 260 | | | | 319 | |
| PPG Industries, Inc. | | | | | | | | |
| 5.75%, 03/15/2013 | | | 120 | | | | 127 | |
| 7.40%, 08/15/2019 | | | 300 | | | | 361 | |
| 9.00%, 05/01/2021 | | | 310 | | | | 430 | |
| Praxair, Inc. | | | | | | | | |
| 4.38%, 03/31/2014 | | | 375 | | | | 404 | |
| 5.20%, 03/15/2017 | | | 150 | | | | 172 | |
| Union Carbide Corp. | | | | | | | | |
| 7.50%, 06/01/2025 | | | 400 | | | | 468 | |
| 7.75%, 10/01/2096 | | | 210 | | | | 245 | |
Commercial Banks — 1.8% | | | | | | | | |
| ANZ National International, Ltd. | | | | | | | | |
| 2.38%, 12/21/2012 — 144A | | | 105 | | | | 106 | |
| Australia & New Zealand Banking Group, Ltd. | | | | | | | | |
| 3.25%, 03/01/2016 — 144A | | | 130 | | | | 134 | |
| 4.88%, 01/12/2021 — 144A ^ | | | 137 | | | | 146 | |
| Bank of Montreal | | | | | | | | |
| 1.30%, 10/31/2014 — 144A | | | 642 | | | | 644 | |
| Bank of Nova Scotia | | | | | | | | |
| 1.65%, 10/29/2015 — 144A ^ | | | 359 | | | | 359 | |
| 3.40%, 01/22/2015 | | | 405 | | | | 429 | |
| Bank of Tokyo-Mitsubishi UFJ, Ltd. | | | | | | | | |
| 3.85%, 01/22/2015 — 144A | | | 227 | | | | 240 | |
| Barclays Bank PLC | | | | | | | | |
| 2.50%, 01/23/2013 | | | 150 | | | | 150 | |
| 2.50%, 09/21/2015 — 144A ^ | | | 510 | | | | 509 | |
| 3.90%, 04/07/2015 ^ | | | 170 | | | | 173 | |
| 5.00%, 09/22/2016 ^ | | | 100 | | | | 106 | |
| 5.13%, 01/08/2020 | | | 350 | | | | 364 | |
| 5.20%, 07/10/2014 | | | 125 | | | | 132 | |
| 6.75%, 05/22/2019 | | | 400 | | | | 459 | |
| BB&T Corp. | | | | | | | | |
| 3.85%, 07/27/2012 | | | 485 | | | | 496 | |
| 3.95%, 04/29/2016 ^ | | | 515 | | | | 548 | |
| 4.90%, 06/30/2017 | | | 550 | | | | 589 | |
| 5.20%, 12/23/2015 | | | 250 | | | | 273 | |
| 5.25%, 11/01/2019 | | | 90 | | | | 97 | |
| 5.70%, 04/30/2014 ^ | | | 195 | | | | 214 | |
| 6.85%, 04/30/2019 ^ | | | 250 | | | | 303 | |
| Canadian Imperial Bank of Commerce | | | | | | | | |
| 2.60%, 07/02/2015 — 144A ^ | | | 1,750 | | | | 1,813 | |
| Comerica, Inc. | | | | | | | | |
| 3.00%, 09/16/2015 | | | 150 | | | | 150 | |
| Cooperatieve Centrale Raiffeisen-Boerenleenbank BA | | | | | | | | |
| 4.50%, 01/11/2021 | | | 300 | | | | 329 | |
| 5.80%, 09/30/2110 — 144A | | | 300 | | | | 316 | |
| Corp. Andina de Fomento | | | | | | | | |
| 3.75%, 01/15/2016 | | | 795 | | | | 798 | |
| DnB NOR Boligkreditt | | | | | | | | |
| 2.10%, 10/14/2015 — 144A | | | 1,057 | | | | 1,068 | |
| HSBC Bank PLC | | | | | | | | |
| 1.63%, 07/07/2014 — 144A ^ | | | 837 | | | | 839 | |
| 3.10%, 05/24/2016 — 144A | | | 262 | | | | 264 | |
| 3.50%, 06/28/2015 — 144A | | | 1,175 | | | | 1,212 | |
| 4.13%, 08/12/2020 — 144A ^ | | | 275 | | | | 278 | |
| HSBC Holdings PLC | | | | | | | | |
| 5.10%, 04/05/2021 | | | 911 | | | | 981 | |
| KeyBank NA | | | | | | | | |
| 5.70%, 11/01/2017 | | | 245 | | | | 266 | |
| 5.80%, 07/01/2014 | | | 250 | | | | 269 | |
| M&T Bank Corp. | | | | | | | | |
| 5.38%, 05/24/2012 | | | 80 | | | | 82 | |
| Manufacturers & Traders Trust Co. | | | | | | | | |
| 1.87%, 04/01/2013 * | | | 300 | | | | 299 | |
| 6.63%, 12/04/2017 | | | 250 | | | | 289 | |
| National Australia Bank, Ltd. | | | | | | | | |
| 2.50%, 01/08/2013 — 144A | | | 400 | | | | 405 | |
| 2.75%, 09/28/2015 — 144A | | | 280 | | | | 284 | |
| 3.00%, 07/27/2016 — 144A ^ | | | 1,730 | | | | 1,741 | |
| 3.75%, 03/02/2015 — 144A | | | 280 | | | | 293 | |
| National Bank of Canada | | | | | | | | |
| 1.65%, 01/30/2014 — 144A ^ | | | 271 | | | | 275 | |
| National City Corp. | | | | | | | | |
| 4.90%, 01/15/2015 | | | 165 | | | | 177 | |
| Nordea Bank AB | | | | | | | | |
| 1.75%, 10/04/2013 — 144A ^ | | | 200 | | | | 199 | |
| 4.88%, 05/13/2021 — 144A | | | 384 | | | | 345 | |
| PNC Bank NA | | | | | | | | |
| 6.88%, 04/01/2018 | | | 600 | | | | 684 | |
| PNC Funding Corp. | | | | | | | | |
| 2.70%, 09/19/2016 | | | 720 | | | | 729 | |
| 3.00%, 05/19/2014 | | | 180 | | | | 187 | |
| 4.38%, 08/11/2020 | | | 433 | | | | 457 | |
| 5.13%, 02/08/2020 | | | 250 | | | | 276 | |
| 5.25%, 11/15/2015 | | | 130 | | | | 141 | |
| 5.63%, 02/01/2017 | | | 130 | | | | 143 | |
| 6.70%, 06/10/2019 | | | 150 | | | | 179 | |
| Rabobank Nederland NV | | | | | | | | |
| 2.13%, 10/13/2015 | | | 105 | | | | 106 | |
| 3.20%, 03/11/2015 — 144A | | | 500 | | | | 515 | |
| Royal Bank of Canada | | | | | | | | |
| 2.30%, 07/20/2016 ^ | | | 800 | | | | 812 | |
| Stadshypotek AB | | | | | | | | |
| 1.45%, 09/30/2013 — 144A | | | 1,394 | | | | 1,403 | |
| Svenska Handelsbanken AB | | | | | | | | |
| 3.13%, 07/12/2016 ^ | | | 388 | | | | 395 | |
| Toronto-Dominion Bank | | | | | | | | |
| 2.20%, 07/29/2015 — 144A | | | 295 | | | | 302 | |
| 2.50%, 07/14/2016 | | | 718 | | | | 735 | |
| U.S. Bancorp | | | | | | | | |
| 2.45%, 07/27/2015 ^ | | | 540 | | | | 557 | |
| 2.88%, 11/20/2014 ^ | | | 121 | | | | 126 | |
| 4.13%, 05/24/2021 ^ | | | 133 | | | | 146 | |
| Wachovia Bank NA | | | | | | | | |
| 0.68%, 03/15/2016 * | | | 450 | | | | 403 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 80 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Commercial Banks (continued) | | | | | | | | |
| Wachovia Bank NA (continued) | | | | | | | | |
| 5.00%, 08/15/2015 | | $ | 500 | | | $ | 532 | |
| 6.00%, 11/15/2017 | | | 3,100 | | | | 3,483 | |
| Wachovia Corp. | | | | | | | | |
| 5.50%, 05/01/2013 | | | 420 | | | | 447 | |
| 5.75%, 06/15/2017 — 02/01/2018 | | | 2,170 | | | | 2,482 | |
| Wells Fargo & Co. | | | | | | | | |
| 3.68%, 06/15/2016 ^ | | | 390 | | | | 410 | |
| 5.63%, 12/11/2017 | | | 550 | | | | 633 | |
| Wells Fargo Bank NA — Series AI | | | | | | | | |
| 4.75%, 02/09/2015 | | | 2,000 | | | | 2,119 | |
| Westpac Banking Corp. | | | | | | | | |
| 4.88%, 11/19/2019 | | | 750 | | | | 796 | |
Commercial Services & Supplies — 0.0% ∞ | | | | | | | | |
| Pitney Bowes, Inc. | | | | | | | | |
| 4.88%, 08/15/2014 | | | 350 | | | | 370 | |
| 5.00%, 03/15/2015 ^ | | | 250 | | | | 265 | |
| 5.60%, 03/15/2018 | | | 100 | | | | 106 | |
| Waste Management, Inc. | | | | | | | | |
| 4.75%, 06/30/2020 | | | 319 | | | | 348 | |
Communications Equipment — 0.0% ∞ | | | | | | | | |
| Cisco Systems, Inc. | | | | | | | | |
| 4.45%, 01/15/2020 | | | 150 | | | | 169 | |
| 5.50%, 01/15/2040 | | | 250 | | | | 298 | |
| 5.90%, 02/15/2039 | | | 100 | | | | 125 | |
Computers & Peripherals — 0.1% | | | | | | | | |
| Dell, Inc. | | | | | | | | |
| 3.10%, 04/01/2016 ^ | | | 371 | | | | 390 | |
| 5.65%, 04/15/2018 ^ | | | 90 | | | | 104 | |
| Hewlett-Packard Co. | | | | | | | | |
| 4.30%, 06/01/2021 | | | 200 | | | | 208 | |
| 4.38%, 09/15/2021 ^ | | | 312 | | | | 327 | |
| 6.00%, 09/15/2041 | | | 1,360 | | | | 1,552 | |
| HP Enterprise Services LLC | | | | | | | | |
| 7.45%, 10/15/2029 | | | 500 | | | | 628 | |
Construction & Engineering — 0.0% ∞ | | | | | | | | |
| Fluor Corp. | | | | | | | | |
| 3.38%, 09/15/2021 | | | 547 | | | | 546 | |
Construction Materials — 0.0% ∞ | | | | | | | | |
| CRH America, Inc. | | | | | | | | |
| 6.00%, 09/30/2016 | | | 221 | | | | 237 | |
Consumer Finance — 0.4% | | | | | | | | |
| American Express Co. | | | | | | | | |
| 7.00%, 03/19/2018 ^ | | | 700 | | | | 832 | |
| American Express Credit Corp. | | | | | | | | |
| 2.80%, 09/19/2016 ^ | | | 1,050 | | | | 1,066 | |
| 5.13%, 08/25/2014 | | | 200 | | | | 217 | |
| 7.30%, 08/20/2013 | | | 200 | | | | 219 | |
| American Express Credit Corp. — Series C | | | | | | | | |
| 5.88%, 05/02/2013 | | | 300 | | | | 319 | |
| Capital One Financial Corp. | | | | | | | | |
| 4.75%, 07/15/2021 ^ | | | 625 | | | | 656 | |
| 6.75%, 09/15/2017 | | | 730 | | | | 850 | |
| 7.38%, 05/23/2014 | | | 75 | | | | 84 | |
| Caterpillar Financial Services Corp. | | | | | | | | |
| 7.15%, 02/15/2019 | | | 100 | | | | 128 | |
| Caterpillar Financial Services Corp. — Series F | | | | | | | | |
| 5.85%, 09/01/2017 | | | 150 | | | | 178 | |
| 7.05%, 10/01/2018 | | | 150 | | | | 190 | |
| HSBC Finance Corp. | | | | | | | | |
| 4.75%, 07/15/2013 ^ | | | 165 | | | | 172 | |
| 5.00%, 06/30/2015 ^ | | | 455 | | | | 474 | |
| 5.50%, 01/19/2016 | | | 260 | | | | 272 | |
| John Deere Capital Corp. | | | | | | | | |
| 3.15%, 10/15/2021 ^ | | | 290 | | | | 297 | |
| PACCAR Financial Corp. | | | | | | | | |
| 1.55%, 09/29/2014 | | | 497 | | | | 501 | |
| Toyota Motor Credit Corp. | | | | | | | | |
| 2.00%, 09/15/2016 ^ | | | 1,675 | | | | 1,683 | |
| 3.20%, 06/17/2015 | | | 385 | | | | 407 | |
Diversified Financial Services — 2.1% | | | | | | | | |
| AGL Capital Corp. | | | | | | | | |
| 5.88%, 03/15/2041 | | | 109 | | | | 128 | |
| Allstate Life Global Funding Trust | | | | | | | | |
| 5.38%, 04/30/2013 | | | 200 | | | | 213 | |
| American Honda Finance Corp. | | | | | | | | |
| 2.60%, 09/20/2016 — 144A | | | 902 | | | | 911 | |
| 7.63%, 10/01/2018 — 144A | | | 300 | | | | 379 | |
| ASIF Global Financing XIX | | | | | | | | |
| 4.90%, 01/17/2013 — 144A | | | 836 | | | | 861 | |
| Associates Corp. | | | | | | | | |
| 6.95%, 11/01/2018 | | | 3,010 | | | | 3,381 | |
| Bank of America Corp. | | | | | | | | |
| 5.00%, 05/13/2021 | | | 75 | | | | 70 | |
| 5.63%, 07/01/2020 | | | 3,840 | | | | 3,701 | |
| 5.75%, 12/01/2017 | | | 220 | | | | 219 | |
| 6.50%, 08/01/2016 | | | 500 | | | | 520 | |
| Bank of America Corp. — Series L | | | | | | | | |
| 7.38%, 05/15/2014 | | | 650 | | | | 695 | |
| Bank of America Corp. — Series MTNL | | | | | | | | |
| 5.65%, 05/01/2018 | | | 770 | | | | 771 | |
| Blackstone Holdings Finance Co., LLC | | | | | | | | |
| 5.88%, 03/15/2021 — 144A | | | 1,205 | | | | 1,222 | |
| Caisse Centrale Desjardins du Quebec | | | | | | | | |
| 2.55%, 03/24/2016 — 144A | | | 580 | | | | 603 | |
| Capital One Bank USA NA | | | | | | | | |
| 8.80%, 07/15/2019 | | | 1,300 | | | | 1,544 | |
| Citigroup, Inc. | | | | | | | | |
| 4.59%, 12/15/2015 | | | 485 | | | | 507 | |
| 4.75%, 05/19/2015 | | | 842 | | | | 876 | |
| 5.38%, 08/09/2020 | | | 355 | | | | 379 | |
| 6.00%, 12/13/2013 — 08/15/2017 | | | 1,870 | | | | 2,028 | |
| 6.01%, 01/15/2015 | | | 420 | | | | 452 | |
| 6.13%, 11/21/2017 | | | 345 | | | | 380 | |
| 6.38%, 08/12/2014 | | | 310 | | | | 335 | |
| 6.50%, 08/19/2013 | | | 110 | | | | 117 | |
| 6.88%, 03/05/2038 | | | 340 | | | | 419 | |
| 8.13%, 07/15/2039 | | | 100 | | | | 137 | |
| 8.50%, 05/22/2019 | | | 550 | | | | 681 | |
| CME Group, Inc. | | | | | | | | |
| 5.75%, 02/15/2014 | | | 196 | | | | 216 | |
| Countrywide Financial Corp. | | | | | | | | |
| 6.25%, 05/15/2016 | | | 550 | | | | 537 | |
| Diageo Capital PLC | | | | | | | | |
| 4.83%, 07/15/2020 | | | 90 | | | | 101 | |
| 5.75%, 10/23/2017 ^ | | | 230 | | | | 271 | |
| Diageo Finance BV | | | | | | | | |
| 5.50%, 04/01/2013 | | | 290 | | | | 309 | |
| ERAC USA Finance LLC | | | | | | | | |
| 2.25%, 01/10/2014 — 144A | | | 257 | | | | 258 | |
| 4.50%, 08/16/2021 — 144A ^ | | | 175 | | | | 179 | |
| FUEL Trust | | | | | | | | |
| 3.98%, 06/15/2016 — 144A | | | 555 | | | | 549 | |
| 4.21%, 04/15/2016 — 144A | | | 401 | | | | 403 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 81 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Diversified Financial Services (continued) | | | | | | | | |
| General Electric Capital Corp. | | | | | | | | |
| 4.38%, 09/16/2020 | | $ | 1,190 | | | $ | 1,211 | |
| 5.40%, 02/15/2017 | | | 400 | | | | 445 | |
| 5.50%, 06/04/2014 ^ | | | 685 | | | | 747 | |
| 5.50%, 01/08/20 | | | 1,140 | | | | 1,271 | |
| 5.63%, 09/15/2017 — 05/01/2018 | | | 6,213 | | | | 6,881 | |
| 6.00%, 08/07/2019 | | | 1,420 | | | | 1,613 | |
| 6.75%, 03/15/2032 | | | 485 | | | | 567 | |
| Goldman Sachs Group, LP | | | | | | | | |
| 8.00%, 03/01/2013 — 144A | | | 325 | | | | 339 | |
| GTP Acquisition Partners I LLC | | | | | | | | |
| 4.35%, 06/15/2016 — 144A | | | 758 | | | | 761 | |
| John Deere Capital Corp. | | | | | | | | |
| 5.75%, 09/10/2018 | | | 100 | | | | 120 | |
| MassMutual Global Funding II | | | | | | | | |
| 2.88%, 04/21/2014 — 144A | | | 100 | | | | 103 | |
| 3.63%, 07/16/2012 — 144A | | | 600 | | | | 612 | |
| Merrill Lynch & Co., Inc. | | | | | | | | |
| 5.00%, 01/15/2015 | | | 650 | | | | 656 | |
| 5.45%, 02/05/2013 | | | 390 | | | | 394 | |
| 6.88%, 04/25/2018 | | | 600 | | | | 616 | |
| Merrill Lynch & Co., Inc. — Series C | | | | | | | | |
| 6.40%, 08/28/2017 | | | 2,325 | | | | 2,358 | |
| National Rural Utilities Cooperative Finance Corp. | | | | | | | | |
| 2.63%, 09/16/2012 | | | 25 | | | | 25 | |
| 10.38%, 11/01/2018 | | | 250 | | | | 358 | |
| Tyco International Finance SA | | | | | | | | |
| 8.50%, 01/15/2019 | | | 100 | | | | 129 | |
| Volkswagen International Finance NV | | | | | | | | |
| 1.63%, 08/12/2013 — 144A | | | 116 | | | | 116 | |
Diversified Telecommunication Services — 1.0% | | | | | | | | |
| America Movil SAB de CV | | | | | | | | |
| 2.38%, 09/08/2016 | | | 421 | | | | 420 | |
| AT&T Corp. | | | | | | | | |
| 8.00%, 11/15/2031 | | | 27 | | | | 38 | |
| AT&T, Inc. | | | | | | | | |
| 4.45%, 05/15/2021 | | | 1,200 | | | | 1,304 | |
| 4.85%, 02/15/2014 | | | 400 | | | | 435 | |
| 5.35%, 09/01/2040 | | | 898 | | | | 980 | |
| 5.50%, 02/01/2018 | | | 300 | | | | 348 | |
| 6.30%, 01/15/2038 | | | 500 | | | | 601 | |
| BellSouth Corp. | | | | | | | | |
| 6.55%, 06/15/2034 | | | 500 | | | | 594 | |
| 6.88%, 10/15/2031 | | | 270 | | | | 334 | |
| BellSouth Telecommunications, Inc. | | | | | | | | |
| 6.30%, 12/15/2015 | | | 137 | | | | 146 | |
| 7.00%, 10/01/2025 | | | 300 | | | | 364 | |
| British Telecommunications PLC | | | | | | | | |
| 5.95%, 01/15/2018 | | | 200 | | | | 222 | |
| 9.88%, 12/15/2030 | | | 180 | | | | 263 | |
| Centel Capital Corp. | | | | | | | | |
| 9.00%, 10/15/2019 | | | 450 | | | | 509 | |
| CenturyLink, Inc. | | | | | | | | |
| 6.45%, 06/15/2021 | | | 540 | | | | 541 | |
| 7.60%, 09/15/2039 | | | 360 | | | | 357 | |
| COX Enterprises, Inc. | | | | | | | | |
| 7.38%, 07/15/2027 — 144A | | | 200 | | | | 240 | |
| Deutsche Telekom International Finance BV | | | | | | | | |
| 6.00%, 07/08/2019 | | | 395 | | | | 459 | |
| 8.75%, 06/15/2030 | | | 330 | | | | 465 | |
| France Telecom SA | | | | | | | | |
| 2.75%, 09/14/2016 ^ | | | 350 | | | | 357 | |
| 8.50%, 03/01/2031 | | | 130 | | | | 190 | |
| GTE Corp. | | | | | | | | |
| 6.84%, 04/15/2018 | | | 1,792 | | | | 2,133 | |
| 8.75%, 11/01/2021 | | | 250 | | | | 353 | |
| Qwest Corp. | | | | | | | | |
| 6.75%, 12/01/2021 ^ | | | 1,296 | | | | 1,378 | |
| Telecom Italia Capital SA | | | | | | | | |
| 4.95%, 09/30/2014 | | | 250 | | | | 246 | |
| 6.18%, 06/18/2014 | | | 281 | | | | 285 | |
| 7.00%, 06/04/2018 | | | 250 | | | | 260 | |
| Telefonica Emisiones SAU | | | | | | | | |
| 5.46%, 02/16/2021 | | | 91 | | | | 92 | |
| 6.22%, 07/03/2017 | | | 650 | | | | 690 | |
| 6.42%, 06/20/2016 | | | 380 | | | | 407 | |
| Verizon Communications, Inc. | | | | | | | | |
| 4.75%, 11/01/2041 | | | 200 | | | | 205 | |
| 6.10%, 04/15/2018 | | | 411 | | | | 492 | |
| 8.75%, 11/01/2018 ^ | | | 1,000 | | | | 1,351 | |
| 8.95%, 03/01/2039 | | | 520 | | | | 826 | |
| Verizon Global Funding Corp. | | | | | | | | |
| 5.85%, 09/15/2035 | | | 175 | | | | 209 | |
| 7.75%, 12/01/2030 | | | 300 | | | | 420 | |
| Verizon Maryland, Inc. | | | | | | | | |
| 7.15%, 05/01/2023 | | | 600 | | | | 645 | |
| Verizon Pennsylvania, Inc. | | | | | | | | |
| 8.35%, 12/15/2030 | | | 240 | | | | 321 | |
Electric Utilities — 0.7% | | | | | | | | |
| AEP Texas Central Co. | | | | | | | | |
| 6.65%, 02/15/2033 | | | 100 | | | | 120 | |
| Alabama Power Co. | | | | | | | | |
| 6.13%, 05/15/2038 ^ | | | 77 | | | | 99 | |
| Alabama Power Co. — Series S | | | | | | | | |
| 5.88%, 12/01/2022 | | | 370 | | | | 449 | |
| Appalachian Power Co. | | | | | | | | |
| 5.95%, 05/15/2033 | | | 50 | | | | 56 | |
| 6.38%, 04/01/2036 | | | 200 | | | | 238 | |
| 6.70%, 08/15/2037 | | | 225 | | | | 277 | |
| Arizona Public Service Co. | | | | | | | | |
| 5.05%, 09/01/2041 | | | 303 | | | | 329 | |
| Carolina Power & Light Co. | | | | | | | | |
| 3.00%, 09/15/2021 | | | 610 | | | | 616 | |
| 5.30%, 01/15/2019 ^ | | | 80 | | | | 94 | |
| CenterPoint Energy Houston Electric LLC — Series U | | | | | | | | |
| 7.00%, 03/01/2014 | | | 100 | | | | 113 | |
| Cleveland Electric Illuminating Co. | | | | | | | | |
| 7.88%, 11/01/2017 | | | 180 | | | | 226 | |
| 8.88%, 11/15/2018 | | | 200 | | | | 268 | |
| Comision Federal de Electricidad | | | | | | | | |
| 4.88%, 05/26/2021 — 144A | | | 261 | | | | 266 | |
| Consolidated Edison Co., of New York, Inc. | | | | | | | | |
| 5.70%, 06/15/2040 | | | 154 | | | | 191 | |
| Consumers Energy Co. | | | | | | | | |
| 6.70%, 09/15/2019 | | | 100 | | | | 126 | |
| Duke Energy Carolinas LLC | | | | | | | | |
| 3.90%, 06/15/2021 | | | 260 | | | | 284 | |
| 4.30%, 06/15/2020 ^ | | | 156 | | | | 176 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 82 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Electric Utilities (continued) | | | | | | | | |
| Duke Energy Carolinas LLC (continued) | | | | | | | | |
| 6.45%, 10/15/2032 | | $ | 100 | | | $ | 127 | |
| Duke Energy Corp. | | | | | | | | |
| 3.55%, 09/15/2021 | | | 348 | | | | 357 | |
| Duke Energy Indiana, Inc. | | | | | | | | |
| 3.75%, 07/15/2020 | | | 200 | | | | 213 | |
| Enel Finance International NV | | | | | | | | |
| 5.13%, 10/07/2019 — 144A | | | 450 | | | | 436 | |
| Exelon Generation Co., LLC | | | | | | | | |
| 4.00%, 10/01/2020 | | | 600 | | | | 615 | |
| 5.75%, 10/01/2041 | | | 86 | | | | 97 | |
| Florida Power & Light Co. | | | | | | | | |
| 5.13%, 06/01/2041 | | | 112 | | | | 132 | |
| 5.95%, 10/01/2033 | | | 150 | | | | 190 | |
| Great Plains Energy, Inc. | | | | | | | | |
| 4.85%, 06/01/2021 | | | 26 | | | | 27 | |
| Indiana Michigan Power Co. | | | | | | | | |
| 7.00%, 03/15/2019 | | | 338 | | | | 411 | |
| Jersey Central Power & Light Co. | | | | | | | | |
| 7.35%, 02/01/2019 ^ | | | 330 | | | | 417 | |
| Kansas City Power & Light Co. | | | | | | | | |
| 5.30%, 10/01/2041 | | | 1,040 | | | | 1,060 | |
| KCP&L Greater Missouri Operations Co. | | | | | | | | |
| 11.88%, 07/01/2012 | | | 300 | | | | 320 | |
| Massachusetts Electric Co. | | | | | | | | |
| 5.90%, 11/15/2039 — 144A | | | 55 | | | | 66 | |
| MidAmerican Energy, Co. | | | | | | | | |
| 5.30%, 03/15/2018 | | | 500 | | | | 583 | |
| Nevada Power Co. | | | | | | | | |
| 5.38%, 09/15/2040 | | | 52 | | | | 60 | |
| 6.50%, 08/01/2018 | | | 910 | | | | 1,086 | |
| Nevada Power Co. — Series V | | | | | | | | |
| 7.13%, 03/15/2019 | | | 100 | | | | 124 | |
| Niagara Mohawk Power Corp. | | | | | | | | |
| 4.88%, 08/15/2019 — 144A | | | 50 | | | | 56 | |
| NiSource Finance Corp. | | | | | | | | |
| 6.80%, 01/15/2019 | | | 604 | | | | 722 | |
| Northern States Power Co. | | | | | | | | |
| 5.35%, 11/01/2039 | | | 19 | | | | 23 | |
| 6.25%, 06/01/2036 | | | 100 | | | | 133 | |
| Oncor Electric Delivery Co., LLC | | | | | | | | |
| 6.80%, 09/01/2018 | | | 775 | | | | 939 | |
| Pacific Gas & Electric Co. | | | | | | | | |
| 3.25%, 09/15/2021 ^ | | | 159 | | | | 161 | |
| 5.40%, 01/15/2040 | | | 42 | | | | 49 | |
| 6.05%, 03/01/2034 | | | 60 | | | | 74 | |
| 8.25%, 10/15/2018 ^ | | | 150 | | | | 198 | |
| PacifiCorp | | | | | | | | |
| 5.65%, 07/15/2018 | | | 100 | | | | 119 | |
| 6.25%, 10/15/2037 | | | 200 | | | | 261 | |
| Pennsylvania Electric Co. | | | | | | | | |
| 6.05%, 09/01/2017 | | | 150 | | | | 171 | |
| Progress Energy, Inc. | | | | | | | | |
| 4.40%, 01/15/2021 | | | 140 | | | | 152 | |
| 4.88%, 12/01/2019 ^ | | | 200 | | | | 223 | |
| 6.00%, 12/01/2039 | | | 50 | | | | 62 | |
| 7.75%, 03/01/2031 | | | 150 | | | | 207 | |
| Public Service Co., of Colorado | | | | | | | | |
| 3.20%, 11/15/2020 | | | 56 | | | | 57 | |
| Public Service Co., of Oklahoma | | | | | | | | |
| 5.15%, 12/01/2019 | | | 133 | | | | 147 | |
| Public Service Electric & Gas Co. | | | | | | | | |
| 2.70%, 05/01/2015 | | | 150 | | | | 157 | |
| 5.38%, 11/01/2039 ^ | | | 28 | | | | 33 | |
| Southern California Edison Co. | | | | | | | | |
| 5.50%, 03/15/2040 | | | 130 | | | | 160 | |
| 6.65%, 04/01/2029 | | | 300 | | | | 384 | |
| Southern Co. | | | | | | | | |
| 1.95%, 09/01/2016 ^ | | | 254 | | | | 256 | |
| Southwestern Public Service Co. — Series G | | | | | | | | |
| 8.75%, 12/01/2018 | | | 405 | | | | 547 | |
| Wisconsin Electric Power Co. | | | | | | | | |
| 2.95%, 09/15/2021 ^ | | | 26 | | | | 26 | |
Electronic Equipment & Instruments — 0.0% ∞ | | | | | | | | |
| Arrow Electronics, Inc. | | | | | | | | |
| 3.38%, 11/01/2015 | | | 35 | | | | 35 | |
| 6.00%, 04/01/2020 | | | 385 | | | | 411 | |
| 6.88%, 07/01/2013 — 06/01/2018 | | | 292 | | | | 316 | |
Energy Equipment & Services — 0.1% | | | | | | | | |
| ANR Pipeline Co. | | | | | | | | |
| 9.63%, 11/01/2021 | | | 200 | | | | 299 | |
| Halliburton Co. | | | | | | | | |
| 6.15%, 09/15/2019 ^ | | | 70 | | | | 86 | |
| Spectra Energy Capital LLC | | | | | | | | |
| 6.20%, 04/15/2018 | | | 325 | | | | 366 | |
| 7.50%, 09/15/2038 | | | 125 | | | | 162 | |
| 8.00%, 10/01/2019 | | | 490 | | | | 616 | |
| TransCanada PipeLines, Ltd. | | | | | | | | |
| 6.50%, 08/15/2018 | | | 175 | | | | 210 | |
| 7.13%, 01/15/2019 | | | 400 | | | | 508 | |
| Transocean, Inc. | | | | | | | | |
| 6.50%, 11/15/2020 | | | 500 | | | | 558 | |
Food & Staples Retailing — 0.1% | | | | | | | | |
| CVS Caremark Corp. | | | | | | | | |
| 4.13%, 05/15/2021 ^ | | | 360 | | | | 384 | |
| 6.13%, 09/15/2039 | | | 150 | | | | 182 | |
| Kroger Co. | | | | | | | | |
| 5.40%, 07/15/2040 | | | 51 | | | | 55 | |
| 6.15%, 01/15/2020 | | | 300 | | | | 360 | |
| 7.50%, 04/01/2031 | | | 100 | | | | 130 | |
| 8.00%, 09/15/2029 | | | 175 | | | | 235 | |
Food Products — 0.2% | | | | | | | | |
| Bunge, Ltd. Finance Corp. | | | | | | | | |
| 5.88%, 05/15/2013 | | | 400 | | | | 421 | |
| 8.50%, 06/15/2019 | | | 310 | | | | 379 | |
| Cargill, Inc. | | | | | | | | |
| 6.00%, 11/27/2017 — 144A | | | 220 | | | | 260 | |
| 7.35%, 03/06/2019 — 144A ^ | | | 250 | | | | 316 | |
| Kraft Foods, Inc. | | | | | | | | |
| 5.38%, 02/10/2020 | | | 609 | | | | 702 | |
| 6.13%, 08/23/2018 | | | 225 | | | | 268 | |
| 6.50%, 08/11/2017 | | | 1,171 | | | | 1,399 | |
Gas Utilities — 0.1% | | | | | | | | |
| AGL Capital Corp. | | | | | | | | |
| 4.45%, 04/15/2013 | | | 300 | | | | 313 | |
| 5.25%, 08/15/2019 | | | 100 | | | | 112 | |
| Atmos Energy Corp. | | | | | | | | |
| 4.95%, 10/15/2014 | | | 200 | | | | 220 | |
| CenterPoint Energy Resources Corp. | | | | | | | | |
| 4.50%, 01/15/2021 | | | 352 | | | | 370 | |
| 5.95%, 01/15/2014 | | | 150 | | | | 163 | |
| 6.13%, 11/01/2017 | | | 630 | | | | 718 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 83 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Health Care Providers & Services — 0.0% ∞ | | | | | | | | |
| Medco Health Solutions, Inc. | | | | | | | | |
| 2.75%, 09/15/2015 | | $ | 140 | | | $ | 141 | |
| 7.13%, 03/15/2018 | | | 250 | | | | 298 | |
Household Durables — 0.0% ∞ | | | | | | | | |
| Newell Rubbermaid, Inc. | | | | | | | | |
| 4.70%, 08/15/2020 | | | 183 | | | | 188 | |
Independent Power Producers & Energy Traders — 0.1% | | | | | | | | |
| PSEG Power LLC | | | | | | | | |
| 4.15%, 09/15/2021 ^ | | | 417 | | | | 428 | |
| 5.13%, 04/15/2020 ^ | | | 151 | | | | 164 | |
| 5.32%, 09/15/2016 ^ | | | 800 | | | | 891 | |
| 5.50%, 12/01/2015 | | | 100 | | | | 111 | |
| Southern Power Co. | | | | | | | | |
| 5.15%, 09/15/2041 | | | 360 | | | | 377 | |
Industrial Conglomerates — 0.1% | | | | | | | | |
| Danaher Corp. | | | | | | | | |
| 3.90%, 06/23/2021 | | | 261 | | | | 281 | |
| Eaton Corp. | | | | | | | | |
| 7.63%, 04/01/2024 | | | 500 | | | | 673 | |
| Koninklijke Philips Electronics NV | | | | | | | | |
| 7.20%, 06/01/2026 | | | 500 | | | | 651 | |
| Tyco International, Ltd. | | | | | | | | |
| 7.00%, 12/15/2019 | | | 325 | | | | 403 | |
Insurance — 0.7% | | | | | | | | |
| ACE INA Holdings, Inc. | | | | | | | | |
| 5.60%, 05/15/2015 | | | 425 | | | | 474 | |
| Aflac, Inc. | | | | | | | | |
| 6.45%, 08/15/2040 | | | 108 | | | | 115 | |
| 8.50%, 05/15/2019 | | | 235 | | | | 295 | |
| AIG SunAmerica Global Financing X | | | | | | | | |
| 6.90%, 03/15/2032 — 144A | | | 350 | | | | 381 | |
| Allstate Corp. | | | | | | | | |
| 5.00%, 08/15/2014 | | | 70 | | | | 77 | |
| 7.45%, 05/16/2019 | | | 100 | | | | 124 | |
| AON Corp. | | | | | | | | |
| 3.13%, 05/27/2016 | | | 235 | | | | 239 | |
| 3.50%, 09/30/2015 | | | 46 | | | | 48 | |
| 6.25%, 09/30/2040 ^ | | | 83 | | | | 99 | |
| Berkshire Hathaway Finance Corp. | | | | | | | | |
| 2.45%, 12/15/2015 | | | 187 | | | | 194 | |
| 5.40%, 05/15/2018 ^ | | | 2,000 | | | | 2,287 | |
| 5.75%, 01/15/2040 | | | 100 | | | | 115 | |
| Berkshire Hathaway, Inc. | | | | | | | | |
| 3.75%, 08/15/2021 ^ | | | 727 | | | | 746 | |
| CNA Financial Corp. | | | | | | | | |
| 5.85%, 12/15/2014 | | | 200 | | | | 212 | |
| 5.88%, 08/15/2020 | | | 282 | | | | 286 | |
| Jackson National Life Global Funding | | | | | | | | |
| 4.70%, 06/01/2018 — 144A | | | 800 | | | | 855 | |
| 5.38%, 05/08/2013 — 144A | | | 950 | | | | 1,003 | |
| Lincoln National Corp. | | | | | | | | |
| 4.85%, 06/24/2021 | | | 58 | | | | 57 | |
| MetLife Institutional Funding II | | | | | | | | |
| 1.27%, 04/04/2014 — 144A * | | | 230 | | | | 229 | |
| Metropolitan Life Global Funding I | | | | | | | | |
| 2.00%, 01/10/2014 — 144A | | | 200 | | | | 201 | |
| 2.50%, 01/11/2013 — 144A | | | 870 | | | | 884 | |
| 3.65%, 06/14/2018 — 144A | | | 520 | | | | 524 | |
| 5.13%, 06/10/2014 — 144A | | | 300 | | | | 324 | |
| Nationwide Mutual Insurance Co. | | | | | | | | |
| 6.60%, 04/15/2034 — 144A | | | 260 | | | | 242 | |
| 9.38%, 08/15/2039 — 144A | | | 1,425 | | | | 1,748 | |
| New York Life Global Funding | | | | | | | | |
| 3.00%, 05/04/2015 — 144A ^ | | | 600 | | | | 623 | |
| 4.65%, 05/09/2013 — 144A | | | 150 | | | | 158 | |
| Pacific Life Global Funding | | | | | | | | |
| 5.00%, 05/15/2017 — 144A | | | 100 | | | | 106 | |
| 5.15%, 04/15/2013 — 144A | | | 280 | | | | 294 | |
| Principal Life Income Funding Trusts | | | | | | | | |
| 5.10%, 04/15/2014 | | | 385 | | | | 415 | |
| 5.30%, 12/14/2012 — 04/24/2013 | | | 510 | | | | 537 | |
| Prudential Insurance Co. of America | | | | | | | | |
| 8.30%, 07/01/2025 — 144A | | | 900 | | | | 1,122 | |
| Travelers Property Casualty Corp. | | | | | | | | |
| 7.75%, 04/15/2026 | | | 450 | | | | 594 | |
IT Services — 0.0% ∞ | | | | | | | | |
| International Business Machines Corp. | | | | | | | | |
| 1.95%, 07/22/2016 | | | 264 | | | | 270 | |
| 8.00%, 10/15/2038 | | | 100 | | | | 156 | |
Machinery — 0.0% ∞ | | | | | | | | |
| Caterpillar, Inc. | | | | | | | | |
| 7.90%, 12/15/2018 ^ | | | 250 | | | | 332 | |
Media — 0.6% | | | | | | | | |
| CBS Corp. | | | | | | | | |
| 5.50%, 05/15/2033 | | | 150 | | | | 156 | |
| 5.75%, 04/15/2020 | | | 63 | | | | 71 | |
| 7.88%, 07/30/2030 | | | 130 | | | | 172 | |
| 8.88%, 05/15/2019 | | | 100 | | | | 129 | |
| Comcast Cable Communications LLC | | | | | | | | |
| 8.88%, 05/01/2017 ^ | | | 250 | | | | 322 | |
| Comcast Cable Holdings LLC | | | | | | | | |
| 10.13%, 04/15/2022 ^ | | | 414 | | | | 598 | |
| Comcast Corp. | | | | | | | | |
| 5.85%, 11/15/2015 | | | 300 | | | | 343 | |
| 6.45%, 03/15/2037 | | | 100 | | | | 120 | |
| 6.50%, 11/15/2035 | | | 100 | | | | 119 | |
| COX Communications, Inc. | | | | | | | | |
| 5.45%, 12/15/2014 | | | 50 | | | | 56 | |
| DIRECTV Holdings LLC | | | | | | | | |
| 4.60%, 02/15/2021 ^ | | | 400 | | | | 425 | |
| 6.00%, 08/15/2040 | | | 700 | | | | 798 | |
| 6.38%, 03/01/2041 | | | 240 | | | | 287 | |
| Discovery Communications LLC | | | | | | | | |
| 4.38%, 06/15/2021 ^ | | | 344 | | | | 361 | |
| Historic TW, Inc. | | | | | | | | |
| 9.15%, 02/01/2023 | | | 200 | | | | 278 | |
| NBCUniversal Media LLC | | | | | | | | |
| 4.38%, 04/01/2021 | | | 1,000 | | | | 1,062 | |
| 5.95%, 04/01/2041 | | | 210 | | | | 245 | |
| News America, Inc. | | | | | | | | |
| 6.20%, 12/15/2034 | | | 250 | | | | 272 | |
| 6.65%, 11/15/2037 | | | 600 | | | | 692 | |
| 7.25%, 05/18/2018 | | | 155 | | | | 183 | |
| 7.30%, 04/30/2028 | | | 130 | | | | 149 | |
| 7.70%, 10/30/2025 | | | 300 | | | | 364 | |
| 8.88%, 04/26/2023 | | | 200 | | | | 258 | |
| TCI Communications, Inc. | | | | | | | | |
| 7.13%, 02/15/2028 | | | 100 | | | | 123 | |
| 8.75%, 08/01/2015 | | | 700 | | | | 863 | |
| Thomson Reuters Corp. | | | | | | | | |
| 3.95%, 09/30/2021 | | | 1,005 | | | | 1,032 | |
| 4.70%, 10/15/2019 ^ | | | 75 | | | | 81 | |
| Time Warner Cable, Inc. | | | | | | | | |
| 5.50%, 09/01/2041 | | | 388 | | | | 417 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 84 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Media (continued) | | | | | | | | |
| Time Warner Cable, Inc. (continued) | | | | | | | | |
| 6.55%, 05/01/2037 | | $ | 700 | | | $ | 824 | |
| 6.75%, 07/01/2018 | | | 40 | | | | 48 | |
| 7.30%, 07/01/2038 | | | 90 | | | | 116 | |
| 8.25%, 02/14/2014 — 04/01/2019 | | | 930 | | | | 1,131 | |
| 8.75%, 02/14/2019 | | | 380 | | | | 494 | |
| Time Warner Entertainment Co., LP | | | | | | | | |
| 8.38%, 07/15/2033 | | | 250 | | | | 339 | |
| Time Warner, Inc. | | | | | | | | |
| 4.75%, 03/29/2021 | | | 140 | | | | 152 | |
| 5.38%, 10/15/2041 | | | 112 | | | | 118 | |
| 6.20%, 03/15/2040 | | | 100 | | | | 117 | |
| 6.25%, 03/29/2041 | | | 87 | | | | 103 | |
| 7.63%, 04/15/2031 | | | 300 | | | | 386 | |
| 7.70%, 05/01/2032 | | | 100 | | | | 130 | |
Metals & Mining — 0.1% | | | | | | | | |
| BHP Billiton Finance USA, Ltd. | | | | | | | | |
| 6.50%, 04/01/2019 ^ | | | 270 | | | | 330 | |
| Rio Tinto Finance USA, Ltd. | | | | | | | | |
| 3.50%, 11/02/2020 ^ | | | 80 | | | | 82 | |
| 3.75%, 09/20/2021 ^ | | | 941 | | | | 977 | |
| 8.95%, 05/01/2014 | | | 400 | | | | 474 | |
Multiline Retail — 0.0% ∞ | | | | | | | | |
| Kohl’s Corp. | | | | | | | | |
| 4.00%, 11/01/2021 | | | 262 | | | | 268 | |
| Nordstrom, Inc. | | | | | | | | |
| 4.00%, 10/15/2021 | | | 301 | | | | 311 | |
| Target Corp. | | | | | | | | |
| 7.00%, 01/15/2038 | | | 140 | | | | 193 | |
Multi-Utilities — 0.1% | | | | | | | | |
| CenterPoint Energy, Inc. | | | | | | | | |
| 6.50%, 05/01/2018 ^ | | | 180 | | | | 210 | |
| Dominion Resources, Inc. | | | | | | | | |
| 4.90%, 08/01/2041 | | | 103 | | | | 113 | |
| 6.00%, 11/30/2017 | | | 450 | | | | 529 | |
| 6.40%, 06/15/2018 | | | 170 | | | | 204 | |
| Sempra Energy | | | | | | | | |
| 2.00%, 03/15/2014 | | | 110 | | | | 111 | |
| 6.00%, 10/15/2039 | | | 150 | | | | 188 | |
| 8.90%, 11/15/2013 | | | 180 | | | | 205 | |
| 9.80%, 02/15/2019 | | | 300 | | | | 415 | |
| Xcel Energy, Inc. | | | | | | | | |
| 4.70%, 05/15/2020 ^ | | | 50 | | | | 56 | |
| 4.80%, 09/15/2041 | | | 116 | | | | 126 | |
Office Electronics — 0.0% ∞ | | | | | | | | |
| Xerox Corp. | | | | | | | | |
| 4.50%, 05/15/2021 ^ | | | 80 | | | | 83 | |
| 6.75%, 02/01/2017 | | | 330 | | | | 382 | |
| 8.25%, 05/15/2014 | | | 90 | | | | 102 | |
Oil, Gas & Consumable Fuels — 0.4% | | | | | | | | |
| AGL Capital Corp. | | | | | | | | |
| 3.50%, 09/15/2021 | | | 601 | | | | 594 | |
| Alberta Energy Co., Ltd. | | | | | | | | |
| 7.38%, 11/01/2031 | | | 500 | | | | 617 | |
| Anadarko Holding Co. | | | | | | | | |
| 7.15%, 05/15/2028 | | | 52 | | | | 61 | |
| Anadarko Petroleum Corp. | | | | | | | | |
| 7.63%, 03/15/2014 | | | 400 | | | | 451 | |
| 8.70%, 03/15/2019 ^ | | | 150 | | | | 196 | |
| Apache Corp. | | | | | | | | |
| 6.90%, 09/15/2018 | | | 180 | | | | 230 | |
| BG Energy Capital PLC | | | | | | | | |
| 5.13%, 10/15/2041 — 144A | | | 200 | | | | 209 | |
| ConocoPhillips | | | | | | | | |
| 6.00%, 01/15/2020 | | | 105 | | | | 130 | |
| 6.65%, 07/15/2018 | | | 350 | | | | 431 | |
| EnCana Corp. | | | | | | | | |
| 6.50%, 05/15/2019 — 08/15/2034 | | | 610 | | | | 732 | |
| ENI SpA | | | | | | | | |
| 5.70%, 10/01/2040 — 144A | | | 900 | | | | 976 | |
| EOG Resources, Inc. | | | | | | | | |
| 4.10%, 02/01/2021 | | | 300 | | | | 326 | |
| Occidental Petroleum Corp. | | | | | | | | |
| 1.75%, 02/15/2017 ^ | | | 208 | | | | 209 | |
| Petro-Canada | | | | | | | | |
| 5.35%, 07/15/2033 | | | 100 | | | | 104 | |
| 6.05%, 05/15/2018 | | | 312 | | | | 368 | |
| 7.88%, 06/15/2026 | | | 100 | | | | 124 | |
| Schlumberger Investment SA | | | | | | | | |
| 3.30%, 09/14/2021 — 144A | | | 344 | | | | 352 | |
| Shell International Finance BV | | | | | | | | |
| 3.10%, 06/28/2015 ^ | | | 478 | | | | 509 | |
| 4.30%, 09/22/2019 ^ | | | 300 | | | | 336 | |
| 4.38%, 03/25/2020 ^ | | | 410 | | | | 467 | |
| 6.38%, 12/15/2038 | | | 100 | | | | 137 | |
| Statoil ASA | | | | | | | | |
| 3.13%, 08/17/2017 ^ | | | 200 | | | | 215 | |
| Suncor Energy, Inc. | | | | | | | | |
| 6.10%, 06/01/2018 | | | 250 | | | | 296 | |
| Talisman Energy, Inc. | | | | | | | | |
| 7.75%, 06/01/2019 | | | 385 | | | | 479 | |
| Tosco Corp. | | | | | | | | |
| 7.80%, 01/01/2027 | | | 160 | | | | 223 | |
| 8.13%, 02/15/2030 | | | 230 | | | | 331 | |
| Total Capital SA | | | | | | | | |
| 2.30%, 03/15/2016 | | | 400 | | | | 412 | |
| 4.13%, 01/28/2021 ^ | | | 82 | | | | 89 | |
| Transocean, Inc. | | | | | | | | |
| 7.50%, 04/15/2031 | | | 200 | | | | 219 | |
Pharmaceuticals — 0.0% ∞ | | | | | | | | |
| Pharmacia Corp. | | | | | | | | |
| 6.50%, 12/01/2018 | | | 260 | | | | 326 | |
Real Estate Investment Trusts — 0.2% | | | | | | | | |
| CommonWealth REIT | | | | | | | | |
| 5.88%, 09/15/2020 ^ | | | 400 | | | | 396 | |
| 6.25%, 08/15/2016 | | | 100 | | | | 106 | |
| 6.65%, 01/15/2018 | | | 215 | | | | 230 | |
| ERP Operating, LP | | | | | | | | |
| 5.25%, 09/15/2014 ^ | | | 860 | | | | 927 | |
| 5.75%, 06/15/2017 | | | 120 | | | | 134 | |
| HCP, Inc. | | | | | | | | |
| 5.38%, 02/01/2021 | | | 105 | | | | 108 | |
| Simon Property Group, LP | | | | | | | | |
| 4.38%, 03/01/2021 ^ | | | 210 | | | | 217 | |
| 5.65%, 02/01/2020 ^ | | | 247 | | | | 276 | |
| 6.13%, 05/30/2018 | | | 280 | | | | 321 | |
| 6.75%, 05/15/2014 | | | 50 | | | | 56 | |
| 10.35%, 04/01/2019 | | | 220 | | | | 299 | |
| WEA Finance LLC | | | | | | | | |
| 6.75%, 09/02/2019 — 144A | | | 580 | | | | 655 | |
| 7.13%, 04/15/2018 — 144A | | | 60 | | | | 68 | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 85 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Road & Rail — 0.2% | | | | | | | | |
| Burlington Northern Santa Fe LLC | | | | | | | | |
| 3.45%, 09/15/2021 | | $ | 176 | | | $ | 179 | |
| 3.60%, 09/01/2020 | | | 125 | | | | 129 | |
| 4.70%, 10/01/2019 | | | 75 | | | | 83 | |
| 5.40%, 06/01/2041 | | | 175 | | | | 199 | |
| 5.65%, 05/01/2017 | | | 387 | | | | 445 | |
| 5.75%, 03/15/2018 — 05/01/2040 | | | 1,000 | | | | 1,173 | |
| 7.29%, 06/01/2036 | | | 90 | | | | 126 | |
| Canadian National Railway Co. | | | | | | | | |
| 5.85%, 11/15/2017 | | | 180 | | | | 215 | |
| CSX Corp. | | | | | | | | |
| 4.25%, 06/01/2021 | | | 65 | | | | 70 | |
| 6.25%, 04/01/2015 — 03/15/2018 | | | 285 | | | | 335 | |
| 7.38%, 02/01/2019 ^ | | | 350 | | | | 443 | |
| 7.90%, 05/01/2017 | | | 400 | | | | 499 | |
| Norfolk Southern Corp. | | | | | | | | |
| 6.00%, 03/15/2105 — 05/23/2111 | | | 686 | | | | 789 | |
| Ryder System, Inc. | | | | | | | | |
| 3.60%, 03/01/2016 | | | 132 | | | | 137 | |
| Union Pacific Corp. | | | | | | | | |
| 4.16%, 07/15/2022 | | | 306 | | | | 324 | |
| 5.78%, 07/15/2040 | | | 300 | | | | 354 | |
Semiconductors & Semiconductor Equipment — 0.1% | | | | | | | | |
| Intel Corp. | | | | | | | | |
| 3.30%, 10/01/2021 | | | 586 | | | | 605 | |
| 4.80%, 10/01/2041 | | | 535 | | | | 584 | |
| National Semiconductor Corp. | | | | | | | | |
| 3.95%, 04/15/2015 | | | 500 | | | | 539 | |
| 6.60%, 06/15/2017 | | | 200 | | | | 243 | |
Software — 0.0% ∞ | | | | | | | | |
| Intuit, Inc. | | | | | | | | |
| 5.75%, 03/15/2017 | | | 70 | | | | 79 | |
| Microsoft Corp. | | | | | | | | |
| 1.63%, 09/25/2015 | | | 390 | | | | 399 | |
| 4.50%, 10/01/2040 | | | 70 | | | | 77 | |
| Oracle Corp. | | | | | | | | |
| 5.00%, 07/08/2019 | | | 100 | | | | 117 | |
| 5.38%, 07/15/2040 — 144A | | | 123 | | | | 147 | |
| 6.50%, 04/15/2038 | | | 200 | | | | 270 | |
Specialty Retail — 0.1% | | | | | | | | |
| Gap, Inc. | | | | | | | | |
| 5.95%, 04/12/2021 | | | 913 | | | | 868 | |
| Lowe’s Cos., Inc. | | | | | | | | |
| 7.11%, 05/15/2037 | | | 120 | | | | 163 | |
| Staples, Inc. | | | | | | | | |
| 9.75%, 01/15/2014 | | | 80 | | | | 92 | |
Water Utilities — 0.0% ∞ | | | | | | | | |
| American Water Capital Corp. | | | | | | | | |
| 6.09%, 10/15/2017 | | | 780 | | | | 910 | |
Wireless Telecommunication Services — 0.0% ∞ | | | | | | | | |
| Crown Castle Towers LLC | | | | | | | | |
| 3.21%, 08/15/2015 — 144A | | | 290 | | | | 293 | |
| Vodafone Group PLC | | | | | | | | |
| 5.45%, 06/10/2019 ^ | | | 75 | | | | 88 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $244,017) | | | | | | | 252,804 | |
| | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES LENDING COLLATERAL —6.9% | | | | | | | | |
| State Street Navigator Securities Lending | | | | | | | | |
| Trust — Prime Portfolio, 0.23% ▲ | | | 152,334,898 | | | $ | 152,335 | |
Total Securities Lending Collateral (cost $152,335) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT —8.2% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $182,007 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 2.35% —4.00%, due 08/01/2026 —11/25/2038, with a total value of $185,648. | | $ | 182,007 | | | $ | 182,007 | |
Total Repurchase Agreement (cost $182,007) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $2,299,479) П | | | | | | | 2,360,037 | |
| Other Assets and Liabilities — Net | | | | | | | (151,254 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 2,208,783 | |
| | | | | | | | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 86 | Annual Report 2011 |
Transamerica JPMorgan Core Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
|
^ | | All or a portion of this security is on loan. The value of all securities on loan is $149,248. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| Ә | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. These securities had a total fair value of $5,873, or 0.27%, of the fund’s net assets. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| П | | Aggregate cost for federal income tax purposes is $2,299,479. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $69,533 and $8,975, respectively. Net unrealized appreciation for tax purposes is $60,558. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $135,455, or 6.13%, of the fund’s net assets. |
| |
IO | | Interest Only |
| |
PO | | Principal Only |
| |
REIT | | Real Estate Investment Trust |
| |
REMIC | | Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities) |
| |
STRIPS | | Separate Trading of Registered Interest and Principal of Securities |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Asset-Backed Securities | | $ | — | | | $ | 58,235 | | | $ | — | | | $ | 58,235 | |
| Corporate Debt Securities | | | — | | | | 252,804 | | | | — | | | | 252,804 | |
| Foreign Government Obligations | | | — | | | | 30,453 | | | | — | | | | 30,453 | |
| Mortgage-Backed Securities | | | — | | | | 189,399 | | | | — | | | | 189,399 | |
| Municipal Government Obligations | | | — | | | | 3,169 | | | | — | | | | 3,169 | |
| Repurchase Agreement | | | — | | | | 182,007 | | | | — | | | | 182,007 | |
| Securities Lending Collateral | | | 152,335 | | | | — | | | | — | | | | 152,335 | |
| U.S. Government Agency Obligations | | | — | | | | 1,074,892 | | | | — | | | | 1,074,892 | |
| U.S. Government Obligations | | | — | | | | 416,743 | | | | — | | | | 416,743 | |
| | | |
Total | | $ | 152,335 | | | $ | 2,207,702 | | | $ | — | | | $ | 2,360,037 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 87 | | Annual Report 2011 |
Transamerica JPMorgan International Bond
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
FOREIGN GOVERNMENT OBLIGATIONS — 70.8% | | | | | | | | |
Australia — 1.3% | | | | | | | | |
| New South Wales Treasury Corp. | | | | | | | | |
| 5.50%, 03/01/2017 | | AUD5,550 | | $ | 6,080 | |
Belgium — 2.5% | | | | | | | | |
| Belgium Government Bond | | | | | | | | |
| 4.00%, 03/28/2018 | | lEUR7,480 | | | 10,352 | |
| 4.25%, 09/28/2021 | | | 1,000 | | | | 1,371 | |
Brazil — 0.7% | | | | | | | | |
| Brazil Notas do Tesouro Nacional | | | | | | | | |
| 10.00%, 01/01/2013 | | BRL5,480 | | | 3,176 | |
Canada — 5.0% | | | | | | | | |
| Canadian Government Bond | | | | | | | | |
| 1.75%, 03/01/2013 | | CAD12,000 | | | 12,163 | |
| 2.50%, 06/01/2015 | | | 5,200 | | | | 5,429 | |
| 3.25%, 06/01/2021 | | | 2,500 | | | | 2,706 | |
| 5.00%, 06/01/2037 | | | 890 | | | | 1,210 | |
| 5.75%, 06/01/2033 | | | 1,283 | | | | 1,858 | |
Denmark — 0.9% | | | | | | | | |
| Denmark Government Bond | | | | | | | | |
| 4.00%, 11/15/2019 | | DKK20,650 | | | 4,412 | |
France — 6.9% | | | | | | | | |
| Caisse D’amortissement de La Dette Sociale | | | | | | | | |
| 3.75%, 09/08/2014 — 10/25/2020 | | EUR2,520 | | | 3,875 | |
| France Government Bond OAT | | | | | | | | |
| 2.50%, 10/25/2020 | | | 13,300 | | | | 17,677 | |
| 4.50%, 04/25/2041 | | | 2,000 | | | | 3,060 | |
| 5.75%, 10/25/2032 | | | 4,678 | | | | 8,174 | |
Germany — 5.4% | | | | | | | | |
| Bundesobligation | | | | | | | | |
| 2.75%, 04/08/2016 | | | 5,100 | | | | 7,572 | |
| Bundesrepublik Deutschland | | | | | | | | |
| 3.25%, 07/04/2021 | | | 6,400 | | | | 9,800 | |
| 4.75%, 07/04/2034 | | | 4,570 | | | | 8,276 | |
Indonesia — 0.6% | | | | | | | | |
| Indonesia Treasury Bond | | | | | | | | |
| 9.00%, 09/15/2013 | | IDR24,000,000 | | | 2,901 | |
Italy — 7.6% | | | | | | | | |
| Italy Buoni Poliennali Del Tesoro | | | | | | | | |
| 4.00%, 09/01/2020 — 02/01/2037 | | EUR16,380 | | | 18,648 | |
| 4.25%, 08/01/2014 | | | 5,200 | | | | 6,977 | |
| 5.00%, 08/01/2034 | | | 1,600 | | | | 1,778 | |
| 5.25%, 08/01/2017 | | | 6,300 | | | | 8,452 | |
Japan — 23.8% | | | | | | | | |
| 10-Year Japan Government Bond | | | | | | | | |
| 1.10%, 06/20/2021 | | JPY2,170,000 | | | 27,896 | |
| Japan Government Bond | | | | | | | | |
| 1.30%, 03/20/2015 | | | 2,354,000 | | | | 31,160 | |
| 2.10%, 12/20/2026 — 09/20/2028 | | | 2,562,000 | | | | 35,063 | |
| 2.20%, 09/20/2039 — 03/20/2041 | | | 1,440,000 | | | | 19,389 | |
Korea, Republic of — 0.7% | | | | | | | | |
| Korea Treasury Bond | | | | | | | | |
| 4.00%, 06/10/2012 | | KRW3,600,000 | | | 3,258 | |
Mexico — 1.0% | | | | | | | | |
| United Mexican States | | | | | | | | |
| 10.00%, 12/05/2024 | | MXN50,000 | | | 4,920 | |
Netherlands — 3.5% | | | | | | | | |
| Netherlands Government Bond | | | | | | | | |
| 3.25%, 07/15/2021 | | EUR6,880 | | | 10,167 | |
| 3.75%, 07/15/2014 — 01/15/2042 | | | 4,425 | | | | 6,761 | |
Philippines — 0.5% | | | | | | | | |
| Republic of The Philippines | | | | | | | | |
| 8.75%, 03/03/2013 | | PHP85,000 | | | 2,173 | |
South Africa — 2.3% | | | | | | | | |
| Republic of South Africa | | | | | | | | |
| 13.50%, 09/15/2015 | | ZAR69,000 | | | 10,718 | |
Spain — 3.6% | | | | | | | | |
| Spain Government Bond | | | | | | | | |
| 3.80%, 01/31/2017 | | EUR5,400 | | | 7,110 | |
| 4.25%, 01/31/2014 | | | 1,300 | | | | 1,803 | |
| 4.60%, 07/30/2019 | | | 4,340 | | | | 5,775 | |
| 4.90%, 07/30/2040 | | | 2,280 | | | | 2,578 | |
Sweden — 0.5% | | | | | | | | |
| Sweden Government Bond | | | | | | | | |
| 4.50%, 08/12/2015 | | SEK14,000 | | �� | 2,387 | |
United Kingdom — 4.0% | | | | | | | | |
| United Kingdom Gilt | | | | | | | | |
| 3.75%, 09/07/2020 | | | GBP600 | | | | 1,076 | |
| 4.25%, 06/07/2032 | | | 5,315 | | | | 9,861 | |
| 4.50%, 12/07/2042 | | | 4,240 | | | | 8,263 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $330,887) | | | | | | | 336,305 | |
| | | | | | | | |
| |
MORTGAGE-BACKED SECURITY — 0.7% | | | | | | | | |
Spain — 0.7% | | | | | | | | |
| Union de Creditos Inmobiliarios | | | | | | | | |
| Series 15, Class A | | | | | | | | |
| 1.67%, 12/18/2048 * | | EUR3,604 | | | 3,536 | |
Total Mortgage-Backed Security (cost $4,886) | | | | | | | | |
| |
CORPORATE DEBT SECURITIES — 23.6% | | | | | | | | |
Australia — 0.5% | | | | | | | | |
| Suncorp-Metway, Ltd. | | | | | | | | |
| 4.00%, 01/16/2014 | | GBP1,290 | | | 2,205 | |
Denmark — 1.0% | | | | | | | | |
| FIH Erhvervsbank A/S | | | | | | | | |
| 2.13%, 03/21/2013 | | EUR3,400 | | | 4,745 | |
Finland — 0.9% | | | | | | | | |
| Nordea Bank Finland PLC | | | | | | | | |
| 2.25%, 11/16/2015 | | | 3,100 | | | | 4,295 | |
France — 3.7% | | | | | | | | |
| BNP Paribas Home Loan SFH | | | | | | | | |
| 3.00%, 07/23/2013 | | | 3,500 | | | | 4,906 | |
| Cie de Financement Foncier | | | | | | | | |
| 4.75%, 06/25/2015 | | | 2,600 | | | | 3,846 | |
| Credit Agricole Home Loan SFH | | | | | | | | |
| 3.50%, 07/21/2014 | | | 3,300 | | | | 4,690 | |
| GCE Covered Bonds | | | | | | | | |
| 2.75%, 01/14/2015 | | | 3,100 | | | | 4,304 | |
Germany — 2.7% | | | | | | | | |
| Kreditanstalt fuer Wiederaufbau | | | | | | | | |
| 2.60%, 06/20/2037 | | JPY170,000 | | | 2,459 | |
| 5.50%, 12/07/2015 | | GBP5,650 | | | 10,498 | |
Netherlands — 3.1% | | | | | | | | |
| Fortis Bank Nederland NV | | | | | | | | |
| 3.38%, 05/19/2014 | | EUR3,200 | | | 4,637 | |
| ING Bank NV | | | | | | | | |
| 3.00%, 09/30/2014 | | | 2,850 | | | | 4,051 | |
| LeasePlan Corp. NV | | | | | | | | |
| 3.25%, 05/22/2014 | | | 3,750 | | | | 5,410 | |
Norway — 1.9% | | | | | | | | |
| DnB NOR Boligkreditt | | | | | | | | |
| 4.13%, 02/01/2013 — Reg S | | | 3,300 | | | | 4,704 | |
| Sparebanken Vest Boligkreditt AS | | | | | | | | |
| 2.50%, 06/09/2015 | | | 3,100 | | | | 4,322 | |
Supranational — 4.6% | | | | | | | | |
| European Investment Bank | | | | | | | | |
| 1.40%, 06/20/2017 | | JPY1,196,000 | | | 15,996 | |
| 4.25%, 10/15/2014 | | EUR4,175 | | | 6,225 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 88 | | Annual Report 2011 |
Transamerica JPMorgan International Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Sweden — 2.0% | | | | | | | | |
| Swedbank Hypotek AB | | | | | | | | |
| 2.50%, 01/21/2013 — 06/15/2015 | | EUR6,850 | | $ | 9,573 | |
United Kingdom — 3.2% | | | | | | | | |
| Abbey National Treasury Services PLC | | | | | | | | |
| 3.38%, 06/08/2015 | | | 2,800 | | | | 3,885 | |
| Bank of Scotland PLC | | | | | | | | |
| 3.25%, 01/25/2013 | | | 1,200 | | | | 1,679 | |
| 3.88%, 01/15/2014 | | | 1,500 | | | | 2,129 | |
| Barclays Bank PLC | | | | | | | | |
| 3.63%, 04/13/2016 | | | 2,700 | | | | 3,874 | |
| Royal Bank of Scotland PLC | | | | | | | | |
| 4.00%, 03/15/2016 — Reg S | | | 2,700 | | | | 3,861 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $107,057) | | | | | | | 112,294 | |
| | | | | | | | |
| | | | | | | | | |
SHORT-TERM FOREIGN GOVERNMENT OBLIGATION — 0.3% | | | | | | | | |
France — 0.3% | | | | | | | | |
| France Treasury Bill BTF | | | | | | | | |
0.63% ▲, 12/15/2011 γ | | | 928 | | | | 1,283 | |
Total Short-Term Foreign Government Obligation (cost $1,293) | | | | | | | | |
| |
REPURCHASE AGREEMENT — 4.1% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $19,466 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 05/01/2025, with a value of $19,857. | | $ | 19,466 | | | $ | 19,466 | |
Total Repurchase Agreement (cost $19,466) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $463,589) П | | | | | | | 472,884 | |
| Other Assets and Liabilities — Net | | | | | | | 2,408 | |
| | | | | | | | |
Net Assets | | | | | | $ | 475,292 | |
| | | | | | | | |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Foreign Government Obligation | | | 71 .1 | % | | $ | 336,305 | |
| Commercial Banks | | | 19 .2 | | | | 90,707 | |
| Diversified Financial Services | | | 4 .1 | | | | 19,383 | |
| Mortgage-Backed Security | | | 0 .7 | | | | 3,536 | |
| Insurance | | | 0.5 | | | | 2,204 | |
| | | | | | | |
| Investment Securities, at Value | | | 95.6 | | | | 452,135 | |
| Short-Term Investments | | | 4.4 | | | | 20,749 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 472,884 | |
FUTURES CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | Appreciation | |
| | | | | | | | | | | | | | | (Depreciation) | |
| Description | | Type | | | Contracts ┌ | | | Expiration Date | | | (000’s) | |
| |
| 10-Year Japan Government Bond | | Long | | | 23 | | | | 12/09/2011 | | | $ | (153 | ) |
| 3-Year Australian Treasury Bond | | Long | | | 4 | | | | 12/15/2011 | | | | (5 | ) |
| German Euro BOBL | | Short | | | (91 | ) | | | 12/08/2011 | | | | 9 | |
| German Euro Bund | | Short | | | (63 | ) | | | 12/08/2011 | | | | 129 | |
| German Euro Schatz | | Short | | | (113 | ) | | | 12/08/2011 | | | | 38 | |
| U.K. Long Gilt Bond | | Long | | | 56 | | | | 12/28/2011 | | | | 51 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 69 | |
| | | | | | | | | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | |
| Transamerica Funds | Page 89 | Annual Report 2011 |
Transamerica JPMorgan International Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CROSS CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | DUB | | | 4,882 | | | | 12/08/2011 | | | $ | 5,121 | | | $ | 393 | |
| Euro | | DUB | | | (3,540 | ) | | | 12/08/2011 | | | | (4,896 | ) | | | (168 | ) |
| Australian Dollar | | HSBC | | | 677 | | | | 12/08/2011 | | | | 710 | | | | 60 | |
| Norwegian Krone | | HSBC | | | (3,778 | ) | | | 12/08/2011 | | | | 677 | | | | (27 | ) |
| Australian Dollar | | DUB | | | 2,449 | | | | 12/08/2011 | | | | 2,568 | | | | 90 | |
| Euro | | DUB | | | (1,812 | ) | | | 12/08/2011 | | | | (2,507 | ) | | | (28 | ) |
| Australian Dollar | | RBC | | | 2,446 | | | | 12/08/2011 | | | | 2,565 | | | | 157 | |
| Canadian Dollar | | RBC | | | (2,483 | ) | | | 12/08/2011 | | | | (2,489 | ) | | | (81 | ) |
| Canadian Dollar | | DUB | | | 2,562 | | | | 12/08/2011 | | | | 2,568 | | | | 48 | |
| Australian Dollar | | DUB | | | (2,426 | ) | | | 12/08/2011 | | | | (2,545 | ) | | | (24 | ) |
| Euro | | DUB | | | 1,757 | | | | 12/08/2011 | | | | 2,430 | | | | 75 | |
| Japanese Yen | | DUB | | | (180,275 | ) | | | 12/08/2011 | | | | (2,308 | ) | | | 47 | |
| Euro | | CITI | | | 1,113 | | | | 12/08/2011 | | | | 1,540 | | | | 46 | |
| Japanese Yen | | CITI | | | (114,345 | ) | | | 12/08/2011 | | | | (1,464 | ) | | | 30 | |
| Euro | | RBC | | | 1,730 | | | | 12/08/2011 | | | | 2,393 | | | | 34 | |
| Japanese Yen | | RBC | | | (181,883 | ) | | | 12/08/2011 | | | | (2,328 | ) | | | 31 | |
| Euro | | RBC | | | 1,928 | | | | 12/08/2011 | | | | 2,667 | | | | 24 | |
| Japanese Yen | | RBC | | | (204,671 | ) | | | 12/08/2011 | �� | | | (2,620 | ) | | | 22 | |
| Euro | | DUB | | | 2,512 | | | | 12/08/2011 | | | | 3,474 | | | | 34 | |
| Australian Dollar | | DUB | | | (3,394 | ) | | | 12/08/2011 | | | | (3,560 | ) | | | (119 | ) |
| Euro | | WBC | | | 1,584 | | | | 12/08/2011 | | | | 2,190 | | | | 88 | |
| Japanese Yen | | WBC | | | (159,901 | ) | | | 12/08/2011 | | | | (2,047 | ) | | | 55 | |
| Euro | | BCLY | | | 1,409 | | | | 12/08/2011 | | | | 1,949 | | | | 21 | |
| Japanese Yen | | BCLY | | | (149,319 | ) | | | 12/08/2011 | | | | (1,911 | ) | | | 17 | |
| Euro | | UBS | | | 2,615 | | | | 12/08/2011 | | | | 3,617 | | | | 35 | |
| Australian Dollar | | UBS | | | (3,523 | ) | | | 12/08/2011 | | | | (3,696 | ) | | | (114 | ) |
| Japanese Yen | | UBS | | | 39,844 | | | | 12/08/2011 | | | | 510 | | | | (8 | ) |
| Euro | | UBS | | | (378 | ) | | | 12/08/2011 | | | | (524 | ) | | | (5 | ) |
| Japanese Yen | | BNP | | | 36,981 | | | | 12/08/2011 | | | | 473 | | | | (13 | ) |
| Euro | | BNP | | | (349 | ) | | | 12/08/2011 | | | | (482 | ) | | | 4 | |
| Japanese Yen | | RBC | | | 177,478 | | | | 12/08/2011 | | | | 2,272 | | | | (23 | ) |
| Euro | | RBC | | | (1,674 | ) | | | 12/08/2011 | | | | (2,315 | ) | | | (20 | ) |
| Japanese Yen | | CITI | | | 211,347 | | | | 12/08/2011 | | | | 2,705 | | | | (41 | ) |
| Euro | | CITI | | | (2,064 | ) | | | 12/08/2011 | | | | (2,855 | ) | | | (108 | ) |
| Japanese Yen | | BCLY | | | 77,081 | | | | 12/08/2011 | | | | 987 | | | | (18 | ) |
| Euro | | BCLY | | | (756 | ) | | | 12/08/2011 | | | | (1,046 | ) | | | (41 | ) |
| Japanese Yen | | UBS | | | 142,319 | | | | 12/08/2011 | | | | 1,822 | | | | (55 | ) |
| Euro | | UBS | | | (1,323 | ) | | | 12/08/2011 | | | | (1,830 | ) | | | 46 | |
| Japanese Yen | | SSB | | | 106,208 | | | | 12/08/2011 | | | | 1,360 | | | | (36 | ) |
| Euro | | SSB | | | (1,005 | ) | | | 12/08/2011 | | | | (1,390 | ) | | | 5 | |
| Japanese Yen | | CITI | | | 111,967 | | | | 12/08/2011 | | | | 1,433 | | | | (24 | ) |
| Euro | | CITI | | | (1,081 | ) | | | 12/08/2011 | | | | (1,495 | ) | | | (38 | ) |
| Japanese Yen | | RBC | | | 203,546 | | | | 12/08/2011 | | | | 2,606 | | | | (48 | ) |
| Euro | | RBC | | | (1,906 | ) | | | 12/08/2011 | | | | (2,637 | ) | | | 16 | |
| Norwegian Krone | | CSFB | | | 11,295 | | | | 12/08/2011 | | | | 2,024 | | | | (13 | ) |
| Euro | | CSFB | | | (1,472 | ) | | | 12/08/2011 | | | | (2,036 | ) | | | 2 | |
| Pound Sterling | | BCLY | | | 1,394 | | | | 12/08/2011 | | | | 2,240 | | | | 34 | |
| Euro | | BCLY | | | (1,595 | ) | | | 12/08/2011 | | | | (2,207 | ) | | | w | |
| Pound Sterling | | UBS | | | 485 | | | | 12/08/2011 | | | | 779 | | | | 1 | |
| Euro | | UBS | | | (550 | ) | | | 12/08/2011 | | | | (761 | ) | | | 17 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 380 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 90 | Annual Report 2011 |
Transamerica JPMorgan International Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Contracts | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | Bought (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | GSC | | | (5,457 | ) | | | 12/08/2011 | | | $ | (5,191 | ) | | $ | (534 | ) |
| Brazilian Real | | DUB | | | (5,830 | ) | | | 12/08/2011 | | | | (3,098 | ) | | | (267 | ) |
| Canadian Dollar | | BNP | | | (12,167 | ) | | | 12/08/2011 | | | | (11,752 | ) | | | (444 | ) |
| Canadian Dollar | | GSC | | | 6,338 | | | | 12/08/2011 | | | | 6,017 | | | | 336 | |
| Danish Krone | | GSC | | | (1,761 | ) | | | 12/08/2011 | | | | (315 | ) | | | (12 | ) |
| Euro | | BNP | | | (3,700 | ) | | | 12/08/2011 | | | | (4,927 | ) | | | (191 | ) |
| Euro | | HSBC | | | 1,146 | | | | 12/08/2011 | | | | 1,596 | | | | (11 | ) |
| Euro | | CSFB | | | 1,383 | | | | 12/08/2011 | | | | 1,925 | | | | (12 | ) |
| Euro | | CITI | | | (961 | ) | | | 12/08/2011 | | | | (1,319 | ) | | | (10 | ) |
| Euro | | BNP | | | (14,000 | ) | | | 12/08/2011 | | | | (18,808 | ) | | | (556 | ) |
| Euro | | SSB | | | (692 | ) | | | 12/08/2011 | | | | (940 | ) | | | (17 | ) |
| Euro | | DUB | | | (2,159 | ) | | | 12/08/2011 | | | | (2,867 | ) | | | (119 | ) |
| Euro | | GSC | | | (17,516 | ) | | | 12/08/2011 | | | | (23,315 | ) | | | (912 | ) |
| Indonesian Rupiah | | UBS | | | (26,299,412 | ) | | | 12/08/2011 | | | | (2,870 | ) | | | (90 | ) |
| Japanese Yen | | CITI | | | 116,200 | | | | 12/08/2011 | | | | 1,515 | | | | (28 | ) |
| Japanese Yen | | BCLY | | | 3,217,827 | | | | 12/08/2011 | | | | 41,907 | | | | (715 | ) |
| Japanese Yen | | TDB | | | 3,217,827 | | | | 12/08/2011 | | | | 41,926 | | | | (734 | ) |
| Japanese Yen | | SSB | | | 78,758 | | | | 12/08/2011 | | | | 1,029 | | | | (21 | ) |
| Japanese Yen | | BNP | | | 68,587 | | | | 12/08/2011 | | | | 901 | | | | (23 | ) |
| Japanese Yen | | BNP | | | 80,836 | | | | 12/08/2011 | | | | 1,049 | | | | (14 | ) |
| Mexican Peso | | UBS | | | (59,633 | ) | | | 12/08/2011 | | | | (4,322 | ) | | | (136 | ) |
| Norwegian Krone | | RBC | | | 30,342 | | | | 12/08/2011 | | | | 5,147 | | | | 291 | |
| Norwegian Krone | | BNP | | | (8,006 | ) | | | 12/08/2011 | | | | (1,347 | ) | | | (88 | ) |
| Philippine Peso | | UBS | | | (75,912 | ) | | | 12/08/2011 | | | | (1,730 | ) | | | (47 | ) |
| Pound Sterling | | HSBC | | | 1,516 | | | | 12/08/2011 | | | | 2,318 | | | | 118 | |
| Pound Sterling | | GSC | | | 2,593 | | | | 12/08/2011 | | | | 4,006 | | | | 161 | |
| Pound Sterling | | HSBC | | | 585 | | | | 12/08/2011 | | | | 906 | | | | 34 | |
| Pound Sterling | | BNP | | | 1,200 | | | | 12/08/2011 | | | | 1,851 | | | | 77 | |
| Pound Sterling | | CSFB | | | 477 | | | | 12/08/2011 | | | | 763 | | | | 4 | |
| Pound Sterling | | BCLY | | | (1,760 | ) | | | 12/08/2011 | | | | (2,727 | ) | | | (102 | ) |
| Pound Sterling | | DUB | | | 1,223 | | | | 12/08/2011 | | | | 1,918 | | | | 47 | |
| Republic of Korea Won | | BCLY | | | (3,369,150 | ) | | | 12/08/2011 | | | | (2,829 | ) | | | (211 | ) |
| South African Rand | | UBS | | | (81,239 | ) | | | 12/08/2011 | | | | (10,032 | ) | | | (148 | ) |
| Swedish Krona | | UBS | | | (14,446 | ) | | | 12/08/2011 | | | | (2,100 | ) | | | (112 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (4,486 | ) |
| | | | | | | | | | | | | | | | | | | | |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| BCLY | | $ | (1,015 | ) | | $ | — | | | $ | (1,015 | ) |
| BNP | | | (1,248 | ) | | | — | | | | (1,248 | ) |
| CITI | | | (173 | ) | | | — | | | | (173 | ) |
| CSFB | | | (19 | ) | | | — | | | | (19 | ) |
| DUB | | | 14 | | | | — | | | | 14 | |
| GSC | | | (961 | ) | | | — | | | | (961 | ) |
| HSBC | | | 174 | | | | — | | | | 174 | |
| RBC | | | 403 | | | | — | | | | 403 | |
| SSB | | | (69 | ) | | | — | | | | (69 | ) |
| TDB | | | (734 | ) | | | — | | | | (734 | ) |
| UBS | | | (621 | ) | | | — | | | | (621 | ) |
| WBC | | | 143 | | | | — | | | | 143 | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default . |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 91 | Annual Report 2011 |
Transamerica JPMorgan International Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| g | | A portion of this security in the amount of $1,283 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| ∏ | | Aggregate cost for federal income tax purposes is $464,149. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $19,597 and $10,862, respectively. Net unrealized depreciation for tax purposes is $8,735. |
| |
| ┌ | | Contract amounts are not in thousands. |
| |
| ♦ | | Amount rounds to less than 1. |
| | | |
|
| DEFINITIONS: |
| | | |
BCLY | | Barclays Bank PLC |
BNP | | BNP Paribas Bank |
CITI | | Citigroup ,Inc |
CSFB | | Credit Suisse First Boston |
DUB | | Deutsche Bank AG |
GSC | | Goldman Sachs International |
HSBC | | HSBC Bank USA |
RBC | | Royal Bank of Canada |
SSB | | State Street Bank |
TDB | | Toronto Dominion Bank |
UBS | | UBS AG London |
WBC | | Westpac Banking Corporation |
| | | |
|
| CURRENCY ABBREVIATIONS: |
| |
AUD | | Australian Dollar |
BRL | | Brazilian Real |
CAD | | Canadian Dollar |
DKK | | Danish Krone |
EUR | | Euro |
GBP | | Pound Sterling |
IDR | | Indonesian Rupiah |
JPY | | Japanese Yen |
KRW | | South Korean Won |
MXN | | Mexican Peso |
PHP | | Philippines Peso |
SEK | | Swedish Krona |
ZAR | | South African Rand |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Corporate Debt Securities | | $ | — | | | $ | 112,294 | | | $ | — | | | $ | 112,294 | |
| Foreign Government Obligations | | | — | | | | 336,305 | | | | — | | | | 336,305 | |
| Mortgage-Backed Security | | | — | | | | 3,536 | | | | — | | | | 3,536 | |
| Repurchase Agreement | | | — | | | | 19,466 | | | | — | | | | 19,466 | |
| Short-Term Foreign Government Obligation | | | — | | | | 1,283 | | | | — | | | | 1,283 | |
| | | |
Total | | $ | — | | | $ | 472,884 | | | $ | — | | | $ | 472,884 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Futures Contracts — Appreciation | | $ | 227 | | | $ | — | | | $ | — | | | $ | 227 | |
| Futures Contracts — Depreciation | | $ | (158 | ) | | $ | — | | | $ | — | | | $ | (158 | ) |
| Forward Currency Contracts — Appreciation | | | — | | | | 2,500 | | | | — | | | | 2,500 | |
| Forward Currency Contracts — Depreciation | | | — | | | | (6,606 | ) | | | — | | | | (6,606 | ) |
| | | |
Total | | $ | 69 | | | $ | (4,106 | ) | | $ | — | | | $ | (4,037 | ) |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 92 | Annual Report 2011 |
Transamerica JPMorgan Long/Short Strategy
(formerly, Transamerica BNY Mellon Market Neutral Strategy)
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 91.8% | | | | | | | | |
Aerospace & Defense — 2.1% | | | | | | | | |
| Honeywell International, Inc. ⌂ | | | 5,270 | | | $ | 276 | |
| Huntington Ingalls Industries, Inc. ‡ ⌂ | | | 17,238 | | | | 509 | |
| United Technologies Corp. ⌂ | | | 20,640 | | | | 1,609 | |
Auto Components — 1.1% | | | | | | | | |
| Johnson Controls, Inc. ⌂ | | | 38,530 | | | | 1,269 | |
Automobiles — 0.8% | | | | | | | | |
| General Motors Co. ‡ ⌂ | | | 33,460 | | | | 865 | |
Beverages — 3.4% | | | | | | | | |
| Coca-Cola Co. ⌂ | | | 10,570 | | | | 722 | |
| Coca-Cola Enterprises, Inc. ⌂ | | | 31,260 | | | | 838 | |
| Dr. Pepper Snapple Group, Inc. ⌂ | | | 30,470 | | | | 1,142 | |
| PepsiCo, Inc. ⌂ | | | 17,790 | | | | 1,120 | |
Biotechnology — 2.4% | | | | | | | | |
| Biogen Idec, Inc. ‡ ⌂ | | | 11,360 | | | | 1,322 | |
| Celgene Corp. ‡ ⌂ | | | 18,680 | | | | 1,211 | |
| Dendreon Corp. ‡ ⌂ | | | 19,440 | | | | 213 | |
Capital Markets — 1.5% | | | | | | | | |
| Goldman Sachs Group, Inc. ⌂ | | | 3,800 | | | | 416 | |
| Invesco, Ltd. | | | 6,430 | | | | 129 | |
| Morgan Stanley ⌂ | | | 17,570 | | | | 310 | |
| State Street Corp. ⌂ | | | 10,290 | | | | 416 | |
| TD Ameritrade Holding Corp. | | | 23,370 | | | | 392 | |
Chemicals — 3.8% | | | | | | | | |
| Air Products & Chemicals, Inc. ⌂ | | | 17,700 | | | | 1,525 | |
| E.I. du Pont de Nemours & Co. ⌂ | | | 47,260 | | | | 2,271 | |
| Georgia Gulf Corp. ‡ ⌂ | | | 29,060 | | | | 526 | |
Commercial Banks — 1.2% | | | | | | | | |
| Fifth Third Bancorp ⌂ | | | 33,530 | | | | 403 | |
| Regions Financial Corp. ⌂ | | | 38,420 | | | | 151 | |
| Wells Fargo & Co. ⌂ | | | 23,550 | | | | 610 | |
| Zions Bancorporation ⌂ | | | 11,800 | | | | 205 | |
Communications Equipment — 1.5% | | | | | | | | |
| Cisco Systems, Inc. ⌂ | | | 40,220 | | | | 745 | |
| Juniper Networks, Inc. ‡ ⌂ | | | 16,930 | | | | 414 | |
| QUALCOMM, Inc. ⌂ | | | 10,010 | | | | 517 | |
Computers & Peripherals — 2.5% | | | | | | | | |
| Apple, Inc. ‡ ⌂ | | | 5,440 | | | | 2,202 | |
| SanDisk Corp. ‡ ⌂ | | | 12,000 | | | | 608 | |
Construction & Engineering — 1.1% | | | | | | | | |
| Fluor Corp. ⌂ | | | 22,470 | | | | 1,277 | |
Consumer Finance — 0.6% | | | | | | | | |
| Capital One Financial Corp. | | | 14,710 | | | | 672 | |
Diversified Consumer Services — 0.2% | | | | | | | | |
| ITT Educational Services, Inc. ‡ | | | 3,680 | | | | 228 | |
Diversified Financial Services — 0.5% | | | | | | | | |
| Bank of America Corp. ⌂ | | | 30,960 | | | | 211 | |
| Citigroup, Inc. | | | 12,439 | | | | 393 | |
Diversified Telecommunication Services — 0.7% | | | | | | | | |
| Verizon Communications, Inc. ⌂ | | | 20,760 | | | | 768 | |
Electric Utilities — 5.1% | | | | | | | | |
| American Electric Power Co., Inc. | | | 24,780 | | | | 973 | |
| Nextera Energy, Inc. ⌂ | | | 33,540 | | | | 1,892 | |
| Northeast Utilities ⌂ | | | 29,220 | | | | 1,010 | |
| NV Energy, Inc. ⌂ | | | 114,960 | | | | 1,844 | |
Electrical Equipment — 0.5% | | | | | | | | |
| Emerson Electric Co. | | | 11,910 | | | | 573 | |
Electronic Equipment & Instruments — 0.6% | | | | | | | | |
| Corning, Inc. ⌂ | | | 16,680 | | | | 238 | |
| TE Connectivity, Ltd. ⌂ | | | 12,810 | | | | 456 | |
Energy Equipment & Services — 1.2% | | | | | | | | |
| Baker Hughes, Inc. | | | 8,140 | | | | 472 | |
| National Oilwell Varco, Inc. ⌂ | | | 5,050 | | | | 360 | |
| Schlumberger, Ltd. ⌂ | | | 7,820 | | | | 575 | |
Food Products — 4.9% | | | | | | | | |
| Archer-Daniels-Midland Co. ⌂ | | | 23,700 | | | | 686 | |
| Campbell Soup Co. ⌂ | | | 41,680 | | | | 1,386 | |
| ConAgra Foods, Inc. ⌂ | | | 31,380 | | | | 795 | |
| General Mills, Inc. ⌂ | | | 15,580 | | | | 600 | |
| Kraft Foods, Inc. — Class A ⌂ | | | 57,840 | | | | 2,035 | |
Gas Utilities — 0.3% | | | | | | | | |
| AGL Resources, Inc. | | | 7,220 | | | | 303 | |
Health Care Equipment & Supplies — 2.2% | | | | | | | | |
| Becton, Dickinson and Co. | | | 6,250 | | | | 489 | |
| Covidien PLC ⌂ | | | 31,610 | | | | 1,487 | |
| St. Jude Medical, Inc. ⌂ | | | 12,150 | | | | 474 | |
Hotels, Restaurants & Leisure — 1.1% | | | | | | | | |
| Carnival Corp. ⌂ | | | 26,820 | | | | 945 | |
| Marriott International, Inc. — Class A | | | 8,460 | | | | 266 | |
Household Durables — 0.1% | | | | | | | | |
| NVR, Inc. ‡ ⌂ | | | 90 | | | | 58 | |
Household Products — 2.5% | | | | | | | | |
| Colgate-Palmolive Co. ⌂ | | | 5,610 | | | | 507 | |
| Procter & Gamble Co. ⌂ | | | 36,630 | | | | 2,344 | |
Independent Power Producers & Energy Traders — 0.3% | | | | | | | | |
| Calpine Corp. ‡ | | | 21,710 | | | | 329 | |
Industrial Conglomerates — 1.5% | | | | | | | | |
| Textron, Inc. | | | 12,120 | | | | 235 | |
| Tyco International, Ltd. ⌂ | | | 31,690 | | | | 1,444 | |
Insurance — 6.3% | | | | | | | | |
| ACE, Ltd. ⌂ | | | 31,150 | | | | 2,248 | |
| Aflac, Inc. ⌂ | | | 18,460 | | | | 832 | |
| Allstate Corp. ⌂ | | | 16,700 | | | | 440 | |
| Axis Capital Holdings, Ltd. | | | 11,580 | | | | 363 | |
| Everest RE Group, Ltd. ⌂ | | | 9,680 | | | | 870 | |
| MetLife, Inc. ⌂ | | | 27,870 | | | | 980 | |
| PartnerRe, Ltd. ⌂ | | | 2,480 | | | | 154 | |
| Prudential Financial, Inc. ⌂ | | | 23,600 | | | | 1,279 | |
Internet & Catalog Retail — 2.0% | | | | | | | | |
| Amazon.com, Inc. ‡ ⌂ | | | 10,590 | | | | 2,261 | |
IT Services — 1.1% | | | | | | | | |
| Cognizant Technology Solutions Corp. — Class A ‡ ⌂ | | | 12,010 | | | | 874 | |
| Genpact, Ltd. ‡ ⌂ | | | 26,340 | | | | 425 | |
Machinery — 1.8% | | | | | | | | |
| PACCAR, Inc. ⌂ | | | 45,790 | | | | 1,980 | |
Media — 5.9% | | | | | | | | |
| CBS Corp. — Class B ⌂ | | | 99,630 | | | | 2,571 | |
| Discovery Communications, Inc. — Series A ‡ ⌂ | | | 18,300 | | | | 795 | |
| DISH Network Corp. — Class A ‡ | | | 7,330 | | | | 177 | |
| Time Warner, Inc. ⌂ | | | 88,880 | | | | 3,110 | |
Metals & Mining — 1.5% | | | | | | | | |
| Alcoa, Inc. ⌂ | | | 90,500 | | | | 974 | |
| Freeport-McMoRan Copper & Gold, Inc. ⌂ | | | 18,690 | | | | 752 | |
Multi-Utilities — 2.0% | | | | | | | | |
| CenterPoint Energy, Inc. ⌂ | | | 15,490 | | | | 323 | |
| Dominion Resources, Inc. | | | 7,360 | | | | 380 | |
| DTE Energy Co. | | | 3,010 | | | | 157 | |
| Sempra Energy ⌂ | | | 27,080 | | | | 1,454 | |
| | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 93 | Annual Report 2011 |
Transamerica JPMorgan Long/Short Strategy
(formerly, Transamerica BNY Mellon Market Neutral Strategy)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Oil, Gas & Consumable Fuels — 1.7% | | | | | | | | |
| Devon Energy Corp. ⌂ | | | 6,850 | | | $ | 445 | |
| Occidental Petroleum Corp. ⌂ | | | 7,170 | | | | 666 | |
| Pioneer Natural Resources Co. | | | 4,290 | | | | 360 | |
| Southwestern Energy Co. ‡ ⌂ | | | 11,670 | | | | 491 | |
Pharmaceuticals — 2.6% | | | | | | | | |
| Abbott Laboratories ⌂ | | | 19,800 | | | | 1,067 | |
| Merck & Co., Inc. ⌂ | | | 46,860 | | | | 1,617 | |
| Mylan, Inc. ‡ | | | 15,960 | | | | 312 | |
Real Estate Investment Trusts — 9.4% | | | | | | | | |
| Apartment Investment & Management Co. — Class A | | | 18,030 | | | | 445 | |
| AvalonBay Communities, Inc. | | | 4,430 | | | | 592 | |
| Boston Properties, Inc. | | | 4,140 | | | | 410 | |
| BRE Properties, Inc. | | | 7,990 | | | | 400 | |
| Camden Property Trust ⌂ | | | 9,930 | | | | 602 | |
| CubeSmart | | | 63,700 | | | | 625 | |
| Duke Realty Corp. | | | 24,650 | | | | 303 | |
| Dupont Fabros Technology, Inc. ⌂ | | | 15,220 | | | | 316 | |
| HCP, Inc. ⌂ | | | 12,450 | | | | 496 | |
| Kimco Realty Corp. ⌂ | | | 35,250 | | | | 616 | |
| Macerich Co. | | | 14,620 | | | | 727 | |
| Mack-Cali Realty Corp. ⌂ | | | 18,000 | | | | 505 | |
| Pebblebrook Hotel Trust | | | 26,300 | | | | 500 | |
| Post Properties, Inc. | | | 14,150 | | | | 581 | |
| Regency Centers Corp. | | | 4,000 | | | | 164 | |
| Senior Housing Properties Trust ⌂ | | | 21,780 | | | | 489 | |
| Simon Property Group, Inc. ⌂ | | | 11,930 | | | | 1,533 | |
| SL Green Realty Corp. | | | 10,110 | | | | 697 | |
| Ventas, Inc. | | | 11,410 | | | | 635 | |
Road & Rail — 3.6% | | | | | | | | |
| CSX Corp. ⌂ | | | 78,550 | | | | 1,744 | |
| Norfolk Southern Corp. ⌂ | | | 16,010 | | | | 1,185 | |
| Union Pacific Corp. ⌂ | | | 11,590 | | | | 1,154 | |
Semiconductors & Semiconductor Equipment — 5.7% | | | | | | | | |
| Analog Devices, Inc. ⌂ | | | 27,800 | | | | 1,017 | |
| Applied Materials, Inc. ⌂ | | | 20,150 | | | | 248 | |
| Broadcom Corp. — Class A ‡ ⌂ | | | 50,410 | | | | 1,819 | |
| Freescale Semiconductor Holdings I, Ltd. ‡ ⌂ | | | 27,040 | | | | 357 | |
| LAM Research Corp. ‡ ⌂ | | | 14,100 | | | | 606 | |
| Marvell Technology Group, Ltd. ‡ | | | 31,170 | | | | 436 | |
| Micron Technology, Inc. ‡ ⌂ | | | 31,000 | | | | 173 | |
| Xilinx, Inc. ⌂ | | | 52,350 | | | | 1,752 | |
Software — 1.6% | | | | | | | | |
| Adobe Systems, Inc. ‡ ⌂ | | | 12,200 | | | | 359 | |
| Citrix Systems, Inc. ‡ ⌂ | | | 7,870 | | | | 573 | |
| Microsoft Corp. ⌂ | | | 34,400 | | | | 916 | |
Specialty Retail — 0.6% | | | | | | | | |
| AutoZone, Inc. ‡ ⌂ | | | 2,070 | | | | 670 | |
Textiles, Apparel & Luxury Goods — 0.6% | | | | | | | | |
| Coach, Inc. ⌂ | | | 5,220 | | | | 340 | |
| Nike, Inc. — Class B | | | 3,670 | | | | 353 | |
Tobacco — 0.3% | | | | | | | | |
| Philip Morris International, Inc. | | | 4,590 | | | | 321 | |
Water Utilities — 0.3% | | | | | | | | |
| American Water Works Co., Inc. ⌂ | | | 11,460 | | | | 350 | |
Wireless Telecommunication Services — 1.1% | | | | | | | | |
| Crown Castle International Corp. ‡ | | | 9,950 | | | | 412 | |
| Sprint Nextel Corp. ‡ ⌂ | | | 310,290 | | | | 797 | |
| | | | | | | | |
Total Common Stocks (cost $105,946) | | | | | | | 103,836 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 7.3% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $8,288 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 04/01/2025, with a value of $8,455. | | $ | 8,288 | | | $ | 8,288 | |
Total Repurchase Agreement (cost $8,288) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $114,234)Π | | | | | | | 112,124 | |
| Other Assets and Liabilities — Net | | | | | | | 984 | |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 113,108 | |
| | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES SOLD SHORT — (67.0%) | | | | | | | | |
COMMON STOCKS — (67.0%) | | | | | | | | |
Aerospace & Defense — (3.9%) | | | | | | | | |
| Boeing Co. | | | (16,670 | ) | | | (1,097 | ) |
| Lockheed Martin Corp. | | | (34,420 | ) | | | (2,613 | ) |
| Northrop Grumman Corp. | | | (5,580 | ) | | | (322 | ) |
| Raytheon Co. | | | (8,560 | ) | | | (378 | ) |
Air Freight & Logistics — (1.4%) | | | | | | | | |
| FedEx Corp. | | | (11,970 | ) | | | (979 | ) |
| United Parcel Service, Inc. — Class B | | | (8,210 | ) | | | (577 | ) |
Automobiles — (0.7%) | | | | | | | | |
| Ford Motor Co. ‡ | | | (72,590 | ) | | | (848 | ) |
Biotechnology — (0.1%) | | | | | | | | |
| Isis Pharmaceuticals, Inc. ‡ | | | (20,280 | ) | | | (168 | ) |
Capital Markets — (0.7%) | | | | | | | | |
| Ameriprise Financial, Inc. | | | (3,270 | ) | | | (153 | ) |
| Federated Investors, Inc. — Class B | | | (13,560 | ) | | | (265 | ) |
| Franklin Resources, Inc. | | | (3,570 | ) | | | (380 | ) |
Chemicals — (3.3%) | | | | | | | | |
| Dow Chemical Co. | | | (23,140 | ) | | | (645 | ) |
| OM Group, Inc. ‡ | | | (14,190 | ) | | | (410 | ) |
| Praxair, Inc. | | | (16,910 | ) | | | (1,720 | ) |
| Valspar Corp. | | | (26,680 | ) | | | (930 | ) |
Commercial Banks — (2.0%) | | | | | | | | |
| Bank of Hawaii Corp. | | | (9,580 | ) | | | (405 | ) |
| Commerce Bancshares, Inc. | | | (7,840 | ) | | | (304 | ) |
| Prosperity Bancshares, Inc. | | | (11,460 | ) | | | (441 | ) |
| UMB Financial Corp. | | | (14,890 | ) | | | (549 | ) |
| Valley National Bancorp | | | (42,369 | ) | | | (508 | ) |
Communications Equipment — (0.5%) | | | | | | | | |
| JDS Uniphase Corp. ‡ | | | (12,570 | ) | | | (151 | ) |
| Motorola Solutions, Inc. | | | (9,100 | ) | | | (427 | ) |
Computers & Peripherals — (0.3%) | | | | | | | | |
| Hewlett-Packard Co. | | | (12,860 | ) | | | (342 | ) |
Diversified Telecommunication Services — (0.8%) | | | | | | | | |
| AT&T, Inc. | | | (31,860 | ) | | | (934 | ) |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 94 | Annual Report 2011 |
Transamerica JPMorgan Long/Short Strategy
(formerly, Transamerica BNY Mellon Market Neutral Strategy)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Electric Utilities — (4.2%) | | | | | | | | |
| Consolidated Edison, Inc. | | | (20,720 | ) | | $ | (1,199 | ) |
| Edison International | | | (18,710 | ) | | | (760 | ) |
| Entergy Corp. | | | (7,710 | ) | | | (533 | ) |
| FirstEnergy Corp. | | | (9,680 | ) | | | (435 | ) |
| Wisconsin Energy Corp. | | | (54,800 | ) | | | (1,777 | ) |
Electrical Equipment — (0.9%) | | | | | | | | |
| Rockwell Automation, Inc. | | | (15,400 | ) | | | (1,042 | ) |
Energy Equipment & Services — (1.3%) | | | | | | | | |
| Diamond Offshore Drilling, Inc. | | | (3,860 | ) | | | (253 | ) |
| Tenaris SA ADR | | | (39,190 | ) | | | (1,247 | ) |
Food Products — (3.2%) | | | | | | | | |
| Hershey Co. | | | (39,720 | ) | | | (2,273 | ) |
| HJ Heinz Co. | | | (15,680 | ) | | | (838 | ) |
| Mead Johnson Nutrition Co. — Class A | | | (3,920 | ) | | | (282 | ) |
| Sara Lee Corp. | | | (12,250 | ) | | | (218 | ) |
Health Care Equipment & Supplies — (1.2%) | | | | | | | | |
| Stryker Corp. | | | (8,550 | ) | | | (410 | ) |
| Varian Medical Systems, Inc. ‡ | | | (6,640 | ) | | | (390 | ) |
| Zimmer Holdings, Inc. ‡ | | | (10,850 | ) | | | (571 | ) |
Hotels, Restaurants & Leisure — (0.4%) | | | | | | | | |
| Choice Hotels International, Inc. | | | (3,140 | ) | | | (112 | ) |
| Hyatt Hotels Corp. — Class A ‡ | | | (9,150 | ) | | | (341 | ) |
Household Durables — 0.0% ∞ | | | | | | | | |
| Ryland Group, Inc. | | | (3,180 | ) | | | (43 | ) |
Household Products — (1.6%) | | | | | | | | |
| Church & Dwight Co., Inc. | | | (27,730 | ) | | | (1,225 | ) |
| Clorox Co. | | | (7,970 | ) | | | (534 | ) |
Insurance — (6.3%) | | | | | | | | |
| American International Group, Inc. ‡ | | | (24,650 | ) | | | (609 | ) |
| AON Corp. | | | (23,160 | ) | | | (1,079 | ) |
| Arch Capital Group, Ltd. ‡ | | | (10,410 | ) | | | (374 | ) |
| Chubb Corp. | | | (12,720 | ) | | | (852 | ) |
| Lincoln National Corp. | | | (8,180 | ) | | | (156 | ) |
| Principal Financial Group, Inc. | | | (25,350 | ) | | | (654 | ) |
| Progressive Corp. | | | (27,890 | ) | | | (530 | ) |
| RenaissanceRe Holdings, Ltd. | | | (6,820 | ) | | | (465 | ) |
| Torchmark Corp. | | | (11,530 | ) | | | (472 | ) |
| Travelers Cos., Inc. | | | (10,020 | ) | | | (585 | ) |
| WR Berkley Corp. | | | (40,160 | ) | | | (1,397 | ) |
Internet Software & Services — (0.2%) | | | | | | | | |
| Google, Inc. — Class A ‡ | | | (430 | ) | | | (255 | ) |
IT Services — (0.4%) | | | | | | | | |
| Paychex, Inc. | | | (14,080 | ) | | | (410 | ) |
Life Sciences Tools & Services — (0.3%) | | | | | | | | |
| Agilent Technologies, Inc. ‡ | | | (8,930 | ) | | | (331 | ) |
Machinery — (3.7%) | | | | | | | | |
| Caterpillar, Inc. | | | (8,020 | ) | | | (758 | ) |
| Deere & Co. | | | (9,060 | ) | | | (688 | ) |
| Dover Corp. | | | (23,130 | ) | | | (1,284 | ) |
| Eaton Corp. | | | (32,220 | ) | | | (1,444 | ) |
Media — (4.0%) | | | | | | | | |
| Gannett Co., Inc. | | | (24,440 | ) | | | (286 | ) |
| New York Times Co. — Class A ‡ | | | (31,990 | ) | | | (244 | ) |
| News Corp. — Class B | | | (64,600 | ) | | | (1,153 | ) |
| Omnicom Group, Inc. | | | (25,480 | ) | | | (1,133 | ) |
| Scripps Networks Interactive, Inc. — Class A | | | (24,250 | ) | | | (1,030 | ) |
| Washington Post Co. — Class B | | | (2,080 | ) | | | (708 | ) |
Metals & Mining — (2.7%) | | | | | | | | |
| AK Steel Holding Corp. | | | (40,260 | ) | | | (335 | ) |
| Cliffs Natural Resources, Inc. | | | (12,370 | ) | | | (844 | ) |
| Nucor Corp. | | | (26,630 | ) | | | (1,007 | ) |
| U.S. Steel Corp. | | | (17,240 | ) | | | (437 | ) |
| Vale SA ADR | | | (16,810 | ) | | | (427 | ) |
Oil, Gas & Consumable Fuels (0.9%) | | | | | | | | |
| EnCana Corp. | | | (9,860 | ) | | | (214 | ) |
| Sunoco, Inc. | | | (6,170 | ) | | | (230 | ) |
| TransCanada Corp. | | | (14,360 | ) | | | (618 | ) |
Personal Products — (0.7%) | | | | | | | | |
| Avon Products, Inc. | | | (8,410 | ) | | | (154 | ) |
| Estee Lauder Cos., Inc. — Class A | | | (6,680 | ) | | | (657 | ) |
Pharmaceuticals — (1.5%) | | | | | | | | |
| Eli Lilly & Co. | | | (31,080 | ) | | | (1,155 | ) |
| Johnson & Johnson | | | (7,970 | ) | | | (513 | ) |
Real Estate Investment Trusts — (9.2%) | | | | | | | | |
| American Campus Communities, Inc. | | | (8,920 | ) | | | (347 | ) |
| BioMed Realty Trust, Inc. | | | (33,720 | ) | | | (611 | ) |
| DDR Corp. | | | (42,120 | ) | | | (540 | ) |
| Equity One, Inc. | | | (39,400 | ) | | | (676 | ) |
| Equity Residential | | | (10,990 | ) | | | (645 | ) |
| Essex Property Trust, Inc. | | | (4,320 | ) | | | (617 | ) |
| Extra Space Storage, Inc. | | | (40,560 | ) | | | (914 | ) |
| Federal Realty Investment Trust | | | (12,370 | ) | | | (1,097 | ) |
| Highwoods Properties, Inc. | | | (22,040 | ) | | | (683 | ) |
| National Retail Properties, Inc. | | | (24,760 | ) | | | (675 | ) |
| Realty Income Corp. | | | (17,470 | ) | | | (584 | ) |
| Tanger Factory Outlet Centers | | | (32,390 | ) | | | (912 | ) |
| Taubman Centers, Inc. | | | (17,800 | ) | | | (1,089 | ) |
| Washington Real Estate Investment Trust | | | (32,640 | ) | | | (944 | ) |
Road & Rail — (1.2%) | | | | | | | | |
| Heartland Express, Inc. | | | (31,890 | ) | | | (428 | ) |
| Knight Transportation, Inc. | | | (22,880 | ) | | | (348 | ) |
| Werner Enterprises, Inc. | | | (23,070 | ) | | | (546 | ) |
Semiconductors & Semiconductor Equipment — (5.9%) | | | | | | | | |
| Avago Technologies, Ltd. | | | (3,990 | ) | | | (135 | ) |
| Cypress Semiconductor Corp. ‡ | | | (34,460 | ) | | | (659 | ) |
| Intel Corp. | | | (80,320 | ) | | | (1,971 | ) |
| Linear Technology Corp. | | | (7,070 | ) | | | (228 | ) |
| Memc Electronic Materials, Inc. ‡ | | | (30,060 | ) | | | (180 | ) |
| Microchip Technology, Inc. | | | (61,710 | ) | | | (2,231 | ) |
| Novellus Systems, Inc. ‡ | | | (8,820 | ) | | | (305 | ) |
| Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | (52,780 | ) | | | (666 | ) |
| Texas Instruments, Inc. | | | (10,220 | ) | | | (314 | ) |
Software — (0.7%) | | | | | | | | |
| Electronic Arts, Inc. ‡ | | | (34,600 | ) | | | (808 | ) |
Tobacco — (1.9%) | | | | | | | | |
| Altria Group, Inc. | | | (77,210 | ) | | | (2,127 | ) |
Trading Companies & Distributors — (0.6%) | | | | | | | | |
| WW Grainger, Inc. | | | (3,640 | ) | | | (624 | ) |
Water Utilities — (0.3%) | | | | | | | | |
| Aqua America, Inc. | | | (16,820 | ) | | | (373 | ) |
| | | | | | | | |
Total Common Stocks (proceeds $(76,863)) | | | | | | | (75,794 | ) |
| | | | | | | | |
Total Securities Sold Short (proceeds $(76,863)) | | | | | | $ | (75,794 | ) |
| | | | | | | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 95 | Annual Report 2011 |
Transamerica JPMorgan Long/Short Strategy
(formerly, Transamerica BNY Mellon Market Neutral Strategy)
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ⌂ | | Securities or a portion thereof with an aggregate market value of $75,709 have been pledged to the broker as collateral for open securities sold short transactions. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $115,694. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $3,435 and $7,005, respectively. Net unrealized depreciation for tax purposes is $3,570. |
DEFINITION :
ADR American Depositary Receipt
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 98,204 | | | $ | 5,632 | | | $ | — | | | $ | 103,836 | |
| Repurchase Agreement | | | — | | | | 8,288 | | | | — | | | | 8,288 | |
| | | |
Total | | $ | 98,204 | | | $ | 13,920 | | | $ | — | | | $ | 112,124 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Securities Sold Short | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | (73,746 | ) | | $ | (2,048 | ) | | $ | — | | | $ | (75,794 | ) |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 96 | Annual Report 2011 |
Transamerica JPMorgan Mid Cap Value
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 97.8% | | | | | | | | |
Aerospace & Defense — 1.3% | | | | | | | | |
| Alliant Techsystems, Inc. | | | 19,900 | | | $ | 1,156 | |
| L-3 Communications Holdings, Inc. | | | 13,600 | | | | 922 | |
Beverages — 2.5% | | | | | | | | |
| Beam, Inc. | | | 46,700 | | | | 2,308 | |
| Brown-Forman Corp. — Class B ^ | | | 10,525 | | | | 787 | |
| Dr. Pepper Snapple Group, Inc. | | | 23,680 | | | | 887 | |
Building Products — 0.6% | | | | | | | | |
| Fortune Brands Home & Security, Inc. ‡ | | | 60,600 | | | | 881 | |
Capital Markets — 3.8% | | | | | | | | |
| Ameriprise Financial, Inc. | | | 46,700 | | | | 2,180 | |
| Invesco, Ltd. | | | 73,300 | | | | 1,471 | |
| Northern Trust Corp. | | | 20,500 | | | | 830 | |
| T. Rowe Price Group, Inc. | | | 30,000 | | | | 1,585 | |
Chemicals — 4.0% | | | | | | | | |
| Airgas, Inc. | | | 17,690 | | | | 1,220 | |
| Albemarle Corp. | | | 31,485 | | | | 1,678 | |
| Sherwin-Williams Co. | | | 21,460 | | | | 1,775 | |
| Sigma-Aldrich Corp. | | | 26,500 | | | | 1,735 | |
Commercial Banks — 5.7% | | | | | | | | |
| BancorpSouth, Inc. ^ | | | 31,500 | | | | 308 | |
| City National Corp. ^ | | | 30,700 | | | | 1,302 | |
| Cullen/Frost Bankers, Inc. ^ | | | 24,900 | | | | 1,221 | |
| Fifth Third Bancorp | | | 131,800 | | | | 1,583 | |
| Huntington Bancshares, Inc. | | | 98,000 | | | | 508 | |
| M&T Bank Corp. | | | 25,600 | | | | 1,948 | |
| SunTrust Banks, Inc. | | | 71,100 | | | | 1,403 | |
| Zions Bancorporation ^ | | | 44,700 | | | | 776 | |
Commercial Services & Supplies — 2.1% | | | | | | | | |
| Republic Services, Inc. — Class A | | | 116,200 | | | | 3,307 | |
Containers & Packaging — 3.4% | | | | | | | | |
| Ball Corp. | | | 67,100 | | | | 2,320 | |
| Rock-Tenn Co. — Class A | | | 23,700 | | | | 1,403 | |
| Silgan Holdings, Inc. | | | 43,000 | | | | 1,614 | |
Distributors — 1.0% | | | | | | | | |
| Genuine Parts Co. ^ | | | 27,350 | | | | 1,571 | |
Diversified Telecommunication Services — 0.8% | | | | | | | | |
| CenturyLink, Inc. | | | 35,000 | | | | 1,234 | |
Electric Utilities — 4.0% | | | | | | | | |
| Northeast Utilities | | | 24,700 | | | | 854 | |
| NV Energy, Inc. | | | 97,900 | | | | 1,570 | |
| Westar Energy, Inc. ^ | | | 74,900 | | | | 2,042 | |
| Wisconsin Energy Corp. | | | 60,000 | | | | 1,946 | |
Electrical Equipment — 3.0% | | | | | | | | |
| AMETEK, Inc. | | | 41,100 | | | | 1,624 | |
| Cooper Industries PLC — Class A | | | 31,300 | | | | 1,642 | |
| Regal Beloit Corp. ^ | | | 28,000 | | | | 1,488 | |
Electronic Equipment & Instruments — 3.6% | | | | | | | | |
| Amphenol Corp. — Class A | | | 38,100 | | | | 1,809 | |
| Arrow Electronics, Inc. ‡ | | | 43,600 | | | | 1,572 | |
| TE Connectivity, Ltd. | | | 66,300 | | | | 2,357 | |
Food Products — 2.9% | | | | | | | | |
| Hershey Co. | | | 15,700 | | | | 899 | |
| JM Smucker Co. | | | 24,200 | | | | 1,863 | |
| Ralcorp Holdings, Inc. ‡ | | | 22,500 | | | | 1,819 | |
Gas Utilities — 2.1% | | | | | | | | |
| EQT Corp. | | | 21,700 | | | | 1,378 | |
| Oneok, Inc. | | | 26,300 | | | | 2,000 | |
Health Care Equipment & Supplies — 1.0% | | | | | | | | |
| Becton, Dickinson and Co. | | | 19,685 | | | | 1,540 | |
Health Care Providers & Services — 4.7% | | | | | | | | |
| AmerisourceBergen Corp. — Class A | | | 40,200 | | | | 1,640 | |
| Coventry Health Care, Inc. ‡ | | | 38,050 | | | | 1,210 | |
| HCA Holdings, Inc. ‡ | | | 31,900 | | | | 748 | |
| Humana, Inc. | | | 22,200 | | | | 1,885 | |
| Lincare Holdings, Inc. ^ | | | 85,224 | | | | 2,007 | |
Hotels, Restaurants & Leisure — 3.9% | | | | | | | | |
| Darden Restaurants, Inc. ^ | | | 39,780 | | | | 1,905 | |
| Marriott International, Inc. — Class A | | | 68,255 | | | | 2,149 | |
| Royal Caribbean Cruises, Ltd. | | | 21,300 | | | | 633 | |
| Yum! Brands, Inc. | | | 26,500 | | | | 1,420 | |
Household Durables — 2.3% | | | | | | | | |
| Jarden Corp. | | | 29,480 | | | | 944 | |
| Mohawk Industries, Inc. ‡ ^ | | | 20,000 | | | | 1,053 | |
| Snap-On, Inc. | | | 31,700 | | | | 1,702 | |
Household Products — 0.9% | | | | | | | | |
| Energizer Holdings, Inc. ‡ | | | 18,400 | | | | 1,358 | |
Industrial Conglomerates — 1.0% | | | | | | | | |
| Carlisle Cos., Inc. | | | 37,800 | | | | 1,577 | |
Insurance — 9.8% | | | | | | | | |
| AON Corp. | | | 25,200 | | | | 1,175 | |
| Arch Capital Group, Ltd. ‡ | | | 22,554 | | | | 811 | |
| Chubb Corp. | | | 21,400 | | | | 1,435 | |
| Loews Corp. | | | 78,500 | | | | 3,116 | |
| Old Republic International Corp. ^ | | | 122,050 | | | | 1,079 | |
| OneBeacon Insurance Group, Ltd. — Class A ^ | | | 54,265 | | | | 826 | |
| Principal Financial Group, Inc. | | | 29,800 | | | | 768 | |
| Torchmark Corp. | | | 17,700 | | | | 724 | |
| Transatlantic Holdings, Inc. | | | 25,000 | | | | 1,301 | |
| WR Berkley Corp. ^ | | | 67,500 | | | | 2,350 | |
| XL Group PLC — Class A | | | 85,000 | | | | 1,848 | |
Internet & Catalog Retail — 0.8% | | | | | | | | |
| Expedia, Inc. ^ | | | 46,600 | | | | 1,224 | |
Media — 3.7% | | | | | | | | |
| AMC Networks, Inc. ‡ | | | 13,650 | | | | 445 | |
| Cablevision Systems Corp. — Class A | | | 62,900 | | | | 910 | |
| CBS Corp. — Class B | | | 61,400 | | | | 1,584 | |
| Clear Channel Outdoor Holdings, Inc. — Class A ‡ | | | 57,073 | | | | 628 | |
| DISH Network Corp. — Class A ‡ | | | 38,500 | | | | 931 | |
| Gannett Co., Inc. ^ | | | 91,700 | | | | 1,072 | |
| Washington Post Co. — Class B ^ | | | 1,005 | | | | 342 | |
Multiline Retail — 1.9% | | | | | | | | |
| Family Dollar Stores, Inc. ^ | | | 20,900 | | | | 1,225 | |
| Kohl’s Corp. | | | 34,600 | | | | 1,835 | |
Multi-Utilities — 6.0% | | | | | | | | |
| CenterPoint Energy, Inc. | | | 44,500 | | | | 927 | |
| CMS Energy Corp. ^ | | | 125,800 | | | | 2,619 | |
| NSTAR | | | 38,200 | | | | 1,722 | |
| Sempra Energy | | | 35,900 | | | | 1,929 | |
| Xcel Energy, Inc. ^ | | | 91,700 | | | | 2,370 | |
Oil, Gas & Consumable Fuels — 6.2% | | | | | | | | |
| CVR Energy, Inc. ‡ | | | 22,900 | | | | 567 | |
| Devon Energy Corp. | | | 32,600 | | | | 2,117 | |
| Energen Corp. | | | 59,132 | | | | 2,900 | |
| Newfield Exploration Co. ‡ | | | 26,000 | | | | 1,047 | |
| Teekay Corp. ^ | | | 23,100 | | | | 595 | |
| Williams Cos., Inc. | | | 78,900 | | | | 2,376 | |
Real Estate Investment Trusts — 2.5% | | | | | | | | |
| HCP, Inc. | | | 30,900 | | | | 1,231 | |
| Regency Centers Corp. ^ | | | 33,700 | | | | 1,381 | |
| Vornado Realty Trust | | | 16,556 | | | | 1,371 | |
Real Estate Management & Development — 0.7% | | | | | | | | |
| Brookfield Office Properties, Inc. | | | 68,350 | | | | 1,129 | |
Semiconductors & Semiconductor Equipment — 0.9% | | | | | | | | |
| Analog Devices, Inc. | | | 38,100 | | | | 1,393 | |
Software — 2.2% | | | | | | | | |
| Jack Henry & Associates, Inc. ^ | | | 57,500 | | | | 1,864 | |
| Synopsys, Inc. ‡ | | | 62,000 | | | | 1,662 | |
Specialty Retail — 5.8% | | | | | | | | |
| AutoZone, Inc. ‡ | | | 4,820 | | | | 1,560 | |
| Bed Bath & Beyond, Inc. ‡ | | | 28,100 | | | | 1,738 | |
| Gap, Inc. ^ | | | 79,430 | | | | 1,501 | |
| PetSmart, Inc. | | | 20,100 | | | | 944 | |
| Tiffany & Co. | | | 17,110 | | | | 1,364 | |
| TJX Cos., Inc. | | | 35,500 | | | | 2,092 | |
| | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 97 | Annual Report 2011 |
Transamerica JPMorgan Mid Cap Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Textiles, Apparel & Luxury Goods — 0.9% | | | | | | | | |
| PVH Corp. | | | 19,600 | | | $ | 1,458 | |
Thrifts & Mortgage Finance — 1.2% | | | | | | | | |
| Capitol Federal Financial, Inc. | | | 49,300 | | | | 547 | |
| People’s United Financial, Inc. ^ | | | 107,300 | | | | 1,368 | |
Wireless Telecommunication Services — 0.6% | | | | | | | | |
| Telephone & Data Systems, Inc. (Special Shares) — Class L | | | 48,860 | | | | 1,022 | |
| �� | | | | | | |
Total Common Stocks (cost $125,296) | | | | | | | 154,970 | |
| | | | | | | | |
SECURITIES LENDING COLLATERAL — 12.3% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 19,442,680 | | | | 19,443 | |
Total Securities Lending Collateral (cost $19,443) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 1.9% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $2,944 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 4.00%, due 12/25/2024 - 04/01/2025, with a total value of $3,005. | | $ | 2,944 | | | | 2,944 | |
Total Repurchase Agreement (cost $2,944) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $147,683)Π | | | | | | | 177,357 | |
| Other Assets and Liabilities — Net | | | | | | | (19,013 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 158,344 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $18,941. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $150,126. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $31,430 and $4,199, respectively. Net unrealized appreciation for tax purposes is $27,231 |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 147,895 | | | $ | 7,075 | | | $ | — | | | $ | 154,970 | |
| Repurchase Agreement | | | — | | | | 2,944 | | | | — | | | | 2,944 | |
| Securities Lending Collateral | | | 19,443 | | | | — | | | | — | | | | 19,443 | |
| | | |
Total | | $ | 167,338 | | | $ | 10,019 | | | $ | — | | | $ | 177,357 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 98 | Annual Report 2011 |
Transamerica Loomis Sayles Bond
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT OBLIGATION — 1.1% | | | | | | | | |
| U.S. Treasury Note | | | | | | | | |
| 0.63%, 02/28/2013 | | $ | 4,865 | | | $ | 4,893 | |
Total U.S. Government Obligation (cost $4,893) | | | | | | | | |
| | | | | | | | | |
FOREIGN GOVERNMENT OBLIGATIONS — 26.4% | | | | | | | | |
Australia — 1.4% | | | | | | | | |
| New South Wales Treasury Corp. | | | | | | | | |
| 5.50%, 08/01/2013 | | AUD | 1,105 | | | | 1,189 | |
| Queensland Treasury Corp. | | | | | | | | |
| 7.13%, 09/18/2017 — 144A | | NZD | 5,865 | | | | 5,264 | |
Brazil — 1.7% | | | | | | | | |
| Republic of Brazil | | | | | | | | |
| 10.25%, 01/10/2028 | | BRL | 12,250 | | | | 7,938 | |
Canada — 13.2% | | | | | | | | |
| Canada Housing Trust No. 1 | | | | | | | | |
| 3.55%, 09/15/2013 — 144A | | CAD | 1,825 | | | | 1,912 | |
| 3.60%, 06/15/2013 — 144A | | | 19,980 | | | | 20,850 | |
| Canadian Government Bond | | | | | | | | |
| 3.75%, 06/01/2012 | | | 6,690 | | | | 6,820 | |
| 5.25%, 06/01/2012 | | | 5,115 | | | | 5,259 | |
| Province of Ontario Canada | | | | | | | | |
| 2.95%, 02/05/2015 | | $ | 15,610 | | | | 16,460 | |
| 4.20%, 03/08/2018 — 06/02/2020 | | CAD | 6,965 | | | | 7,601 | |
| Province of Quebec Canada | | | | | | | | |
| 6.75%, 11/09/2015 | | NZD | 2,825 | | | | 2,478 | |
Ireland — 0.6% | | | | | | | | |
| Ireland Government Bond | | | | | | | | |
| 5.00%, 10/18/2020 | | EUR | 285 | | | | 320 | |
| 5.40%, 03/13/2025 | | | 2,060 | | | | 2,266 | |
Korea, Republic of — 4.5% | | | | | | | | |
| Export-Import Bank of Korea | | | | | | | | |
| 4.00%, 11/26/2015 — 144A | | PHP | 386,300 | | | | 8,879 | |
| 5.10%, 10/29/2013 — 144A | | INR | 184,600 | | | | 3,768 | |
| Korea Treasury Bond | | | | | | | | |
| 5.00%, 09/10/2014 | | KRW | 9,105,540 | | | | 8,460 | |
Malaysia — 0.7% | | | | | | | | |
| Republic of Malaysia | | | | | | | | |
| 3.21%, 05/31/2013 | | MYR | 9,370 | | | | 3,067 | |
Mexico — 2.8% | | | | | | | | |
| United Mexican States | | | | | | | | |
| 8.00%, 12/07/2023 | | MXN | 150,800 | | | | 12,884 | |
Philippines — 0.2% | | | | | | | | |
| Republic of The Philippines | | | | | | | | |
| 4.95%, 01/15/2021 | | PHP | 50,000 | | | | 1,129 | |
Portugal — 0.2% | | | | | | | | |
| Portugal Obrigacoes do Tesouro OT | | | | | | | | |
| 4.95%, 10/25/2023 | | EUR | 910 | | | | 715 | |
Supranational — 1.1% | | | | | | | | |
| Asian Development Bank | | | | | | | | |
| 2.50%, 03/15/2016 | | $ | 2,845 | | | | 3,013 | |
| Inter-American Development Bank | | | | | | | | |
| 2.50%, 03/11/2013 | | INR | 83,500 | | | | 1,673 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $115,077) | | | | | | | 121,945 | |
| | | | | | | | |
| | | | | | | | | |
MORTGAGE-BACKED SECURITIES — 7.7% | | | | | | | | |
United States — 7.7% | | | | | | | | |
| American Home Mortgage Investment Trust | | | | | | | | |
| Series 2004-3, Class 3A | | | | | | | | |
| 2.30%, 10/25/2034 * | | $ | 519 | | | | 381 | |
| Banc of America Funding Corp. | | | | | | | | |
| Series 2006-I, Class 1A1 | | | | | | | | |
| 2.46%, 12/20/2036 * | | | 220 | | | | 202 | |
| Banc of America Merrill Lynch Commercial Mortgage, Inc. | | | | | | | | |
| Series 2007-2, Class A4 | | | | | | | | |
| 5.81%, 04/10/2049 * | | | 500 | | | | 533 | |
| Banc of America Mortgage Securities, Inc. | | | | | | | | |
| Series 2005-F, Class 2A2 | | | | | | | | |
| 2.87%, 07/25/2035 * | | | 385 | | | | 296 | |
| Bear Stearns Adjustable Rate Mortgage Trust | | | | | | | | |
| Series 2004-3, Class 2A | | | | | | | | |
| 2.57%, 07/25/2034 * | | | 254 | | | | 202 | |
| Countrywide Home Loan Mortgage Pass-Through Trust | | | | | | | | |
| Series 2005-11, Class 4A1 | | | | | | | | |
| 0.51%, 04/25/2035 * | | | 607 | | | | 335 | |
| Credit Suisse Mortgage Capital Certificates | | | | | | | | |
| Series 2007-C3, Class A4 | | | | | | | | |
| 5.71%, 06/15/2039 * | | | 2,410 | | | | 2,528 | |
| Series 2007-C3, Class AM | | | | | | | | |
| 5.71%, 06/15/2039 * | | | 680 | | | | 517 | |
| Series 2007-C4, Class A4 | | | | | | | | |
| 5.80%, 09/15/2039 * | | | 1,200 | | | | 1,244 | |
| Series 2007-C5, Class A4 | | | | | | | | |
| 5.70%, 09/15/2040 * | | | 4,785 | | | | 4,953 | |
| Series 2008-C1, Class A3 | | | | | | | | |
| 6.21%, 02/15/2041 * | | | 1,540 | | | | 1,646 | |
| Extended Stay America Trust | | | | | | | | |
| Series 2010-ESHA, Class D | | | | | | | | |
| 5.50%, 11/05/2027 — 144A | | | 4,035 | | | | 3,971 | |
| Greenwich Capital Commercial Funding Corp. | | | | | | | | |
| Series 2007-GG11, Class A4 | | | | | | | | |
| 5.74%, 12/10/2049 | | | 3,100 | | | | 3,284 | |
| Series 2007-GG11, Class AM | | | | | | | | |
| 5.87%, 12/10/2049 * | | | 325 | | | | 274 | |
| GS Mortgage Securities Corp. II | | | | | | | | |
| Series 2007-GG10, Class AM | | | | | | | | |
| 5.98%, 08/10/2045 * | | | 3,110 | | | | 2,434 | |
| GSR Mortgage Loan Trust | | | | | | | | |
| Series 2004-14, Class 3A1 | | | | | | | | |
| 3.04%, 12/25/2034 * | | | 368 | | | | 252 | |
| IndyMac Index Mortgage Loan Trust | | | | | | | | |
| Series 2005-16IP, Class A1 | | | | | | | | |
| 0.56%, 07/25/2045 * | | | 367 | | | | 215 | |
| Series 2005-AR1, Class 3A1 | | | | | | | | |
| 2.58%, 03/25/2035 * | | | 1,792 | | | | 1,365 | |
| Series 2005-AR3, Class 4A1 | | | | | | | | |
| 4.73%, 04/25/2035 * | | | 601 | | | | 429 | |
| JPMorgan Mortgage Trust | | | | | | | | |
| Series 2007-A1, Class 4A2 | | | | | | | | |
| 2.79%, 07/25/2035 * | | | 354 | | | | 327 | |
| Series 2007-A1, Class 5A1 | | | | | | | | |
| 2.81%, 07/25/2035 * | | | 1,051 | | | | 925 | |
| MASTR Adjustable Rate Mortgages Trust | | | | | | | | |
| Series 2004-15, Class 4A1 | | | | | | | | |
| 2.88%, 12/25/2034 * | | | 1,891 | | | | 1,450 | |
| Series 2005-2, Class 5A1 | | | | | | | | |
| 2.61%, 03/25/2035 * | | | 1,105 | | | | 920 | |
| Morgan Stanley Mortgage Loan Trust | | | | | | | | |
| Series 2005-7, Class 7A5 | | | | | | | | |
| 5.50%, 11/25/2035 | | | 1,575 | | | | 1,303 | |
| Series 2005-2AR, Class A | | | | | | | | |
| 0.50%, 04/25/2035 * | | | 1,042 | | | | 724 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 99 | Annual Report 2011 |
Transamerica Loomis Sayles Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | | | | | |
| | | | | | | Principal | | | Value | |
| | | | | | | (000's) | | | (000's) | |
| |
United States (continued) | | | | | | | | | | | | |
| Morgan Stanley Re-REMIC Trust | | | | | | | | | | | | |
| Series 2009-GG10, Class A4B | | | | | | | | | | | | |
| 5.79%, 08/12/2045 — 144A * | | | | | | $ | 2,900 | | | $ | 2,733 | |
| WaMu Mortgage Pass-Through Certificates | | | | | | | | | | | | |
| Series 2007-OA3, Class 2A1A | | | | | | | | | | | | |
| 0.99%, 04/25/2047 * | | | | | | | 641 | | | | 416 | |
| WAMU Mortgage Pass-Through Certificates | | | | | | | | | | | | |
| Series 2006-AR17, Class 1A1A | | | | | | | | | | | | |
| 1.04%, 12/25/2046 * | | | | | | | 332 | | | | 203 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | | | | | |
| Series 2005-AR2, Class 2A2 | | | | | | | | | | | | |
| 2.73%, 03/25/2035 * | | | | | | | 970 | | | | 825 | |
| Series 2005-AR4, Class 2A2 | | | | | | | | | | | | |
| 2.74%, 04/25/2035 * | | | | | | | 620 | | | | 573 | |
| | | | | | | | | | | | |
Total Mortgage-Backed Securities (cost $33,246) | | | | | | | | | | | 35,460 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
ASSET-BACKED SECURITIES — 4.0% | | | | | | | | | | | | |
United States — 4.0% | | | | | | | | | | | | |
| American Airlines Pass-Through Trust | | | | | | | | | | | | |
| Series 2009-1, Class A | | | | | | | | | | | | |
| 10.38%, 07/02/2019 ^ | | | | | | | 934 | | | | 1,004 | |
| Chesapeake Funding LLC | | | | | | | | | | | | |
| Series 2009-2A, Class B | | | | | | | | | | | | |
| 1.99%, 09/15/2021 — 144A * | | | | | | | 1,000 | | | | 1,006 | |
| Series 2009-2A, Class C | | | | | | | | | | | | |
| 1.99%, 09/15/2021 — 144A * | | | | | | | 1,200 | | | | 1,203 | |
| Continental Airlines Pass-Through Trust | | | | | | | | | | | | |
| Series 2001-1, Class 01A1 | | | | | | | | | | | | |
| 6.70%, 06/15/2021 | | | | | | | 694 | | | | 694 | |
| Countrywide Asset-Backed Certificates | | | | | | | | | | | | |
| Series 2004-4, Class M1 | | | | | | | | | | | | |
| 0.96%, 07/25/2034 * | | | | | | | 450 | | | | 318 | |
| Series 2004-13, Class AF5B | | | | | | | | | | | | |
| 5.10%, 05/25/2035 * | | | | | | | 625 | | | | 489 | |
| CVS Pass-Through Trust | | | | | | | | | | | | |
| 6.94%, 01/10/2030 | | | | | | | 1,216 | | | | 1,324 | |
| Delta Air Lines, Inc., Pass-Through Trust | | | | | | | | | | | | |
| Series 2007-1, Class A | | | | | | | | | | | | |
| 6.82%, 08/10/2022 ^ | | | | | | | 2,273 | | | | 2,296 | |
| Series 2007-1, Class B | | | | | | | | | | | | |
| 8.02%, 08/10/2022 | | | | | | | 2,001 | | | | 1,953 | |
| Diamond Resorts Owner Trust | | | | | | | | | | | | |
| Series 2009-1, Class A | | | | | | | | | | | | |
| 9.31%, 03/20/2026 — 144A | | | | | | | 742 | | | | 789 | |
| DSC Floorplan Master Owner Trust | | | | | | | | | | | | |
| Series 2011-1, Class B | | | | | | | | | | | | |
| 8.11%, 03/15/2016 — 144A | | | | | | | 850 | | | | 865 | |
| JPMorgan Mortgage Acquisition Corp. | | | | | | | | | | | | |
| Series 2005-OPT1, Class M2 | | | | | | | | | | | | |
| 0.71%, 06/25/2035 * | | | | | | | 350 | | | | 172 | |
| Sierra Receivables Funding Co. LLC | | | | | | | | | | | | |
| Series 2009-3A, Class A1 | | | | | | | | | | | | |
| 7.62%, 07/20/2026 — 144A | | | | | | | 573 | | | | 574 | |
| UAL Pass-Through Trust | | | | | | | | | | | | |
| Series 2007-1, Class A | | | | | | | | | | | | |
| 6.64%, 07/02/2022 | | | | | | | 6,242 | | | | 6,022 | |
| | | | | | | | | | | | |
Total Asset-Backed Securities (cost $18,446) | | | | | | | | | | | 18,709 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
MUNICIPAL GOVERNMENT OBLIGATION — 0.1% | | | | | | | | | | | | |
United States — 0.1% | | | | | | | | | | | | |
| California Health Facilities Financing Authority — Series A | | | | | | | | | | | | |
| 5.25%, 11/15/2046 | | | | | | $ | 660 | | | $ | 659 | |
Total Municipal Government Obligation (cost $571) | | | | | | | | | | | | |
| | | | | | | | | | | | | |
PREFERRED CORPORATE DEBT SECURITIES — 0.3% | | | | | | | | | | | | |
United States — 0.3% | | | | | | | | | | | | |
| Bank of America Corp. | | | | | | | | | | | | |
| 8.00%, 01/30/2018 * Ž | | | | | | | 215 | | | | 200 | |
| Hercules, Inc. | | | | | | | | | | | | |
| 6.50%, 06/30/2029 | | | | | | | 1,260 | | | | 945 | |
| NGC Corp., Capital Trust I | | | | | | | | | | | | |
| 8.32%, 06/01/2027 Џ § ‡ | | | | | | | 200 | | | | 40 | |
| | | | | | | | | | | | |
Total Preferred Corporate Debt Securities (cost $1,452) | | | | | | | | | | | 1,185 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
CORPORATE DEBT SECURITIES — 37.0% | | | | | | | | | | | | |
Australia — 1.4% | | | | | | | | | | | | |
| Australia & New Zealand Banking Group, Ltd. | | | | | | | | | | | | |
| 6.75%, 11/10/2014 | | AUD | | | 2,920 | | | | 3,192 | |
| General Electric Capital Australia Funding, Ltd. | | | | | | | | | | | | |
| 8.00%, 02/13/2012 | | | | | | | 1,635 | | | | 1,735 | |
| National Australia Bank, Ltd. | | | | | | | | | | | | |
| 6.50%, 11/05/2015 | | | | | | | 1,070 | | | | 1,153 | |
Canada — 0.7% | | | | | | | | | | | | |
| Bell Canada | | | | | | | | | | | | |
| 6.10%, 03/16/2035 — 144A | | CAD | | | 475 | | | | 504 | |
| Bombardier, Inc. | | | | | | | | | | | | |
| 7.45%, 05/01/2034 — 144A | | | | | | $ | 800 | | | | 812 | |
| Connacher Oil and Gas, Ltd. | | | | | | | | | | | | |
| 8.50%, 08/01/2019 — 144A | | | | | | | 2,325 | | | | 1,697 | |
Cayman Islands — 0.2% | | | | | | | | | | | | |
| Odebrecht Drilling Norbe VIII/IX, Ltd. | | | | | | | | | | | | |
| 6.35%, 06/30/2021 — 144A ^ | | | | | | | 1,100 | | | | 1,150 | |
France — 0.0% ∞ | | | | | | | | | | | | |
| Societe Generale SA | | | | | | | | | | | | |
| 5.20%, 04/15/2021 — 144A ^ | | | | | | | 200 | | | | 184 | |
Luxembourg — 1.3% | | | | | | | | | | | | |
| ArcelorMittal | | | | | | | | | | | | |
| 5.25%, 08/05/2020 ^ | | | | | | | 1,265 | | | | 1,228 | |
| 6.13%, 06/01/2018 ^ | | | | | | | 175 | | | | 180 | |
| 6.75%, 03/01/2041 | | | | | | | 300 | | | | 301 | |
| 7.00%, 10/15/2039 ^ | | | | | | | 1,650 | | | | 1,647 | |
| Enel Finance International NV | | | | | | | | | | | | |
| 6.00%, 10/07/2039 — 144A | | | | | | | 700 | | | | 644 | |
| Telecom Italia Capital SA | | | | | | | | | | | | |
| 6.00%, 09/30/2034 | | | | | | | 2,930 | | | | 2,514 | |
| 6.38%, 11/15/2033 | | | | | | | 85 | | | | 76 | |
Mexico — 0.2% | | | | | | | | | | | | |
| America Movil SAB de CV | | | | | | | | | | | | |
| 8.46%, 12/18/2036 | | MXN | | | 12,000 | | | | 866 | |
Netherlands — 0.0% ¥ | | | | | | | | | | | | |
| EDP Finance BV | | | | | | | | | | | | |
| 4.90%, 10/01/2019 — 144A | | | | | | $ | 100 | | | | 82 | |
Supranational — 0.9% | | | | | | | | | | | | |
| European Investment Bank | | | | | | | | | | | | |
| 6.63%, 04/24/2013 — 144A ▲ | | IDR | | | 28,551,000 | | | | 2,886 | |
| 7.00%, 01/18/2012 | | NZD | | | 1,580 | | | | 1,287 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 100 | Annual Report 2011 |
Transamerica Loomis Sayles Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | | | | | |
| | | | | | | Principal | | | Value | |
| | | | | | | (000’s) | | | (000’s) | |
| |
United Arab Emirates — 1.8% | | | | | | | | | | | | |
| DP World, Ltd. | | | | | | | | | | | | |
| 6.85%, 07/02/2037 — 144A | | | | | | $ | 6,410 | | | $ | 6,098 | |
| Dubai Electricity & Water Authority | | | | | | | | | | | | |
| 7.38%, 10/21/2020 — 144A ^ | | | | | | | 2,100 | | | | 2,142 | |
United States — 30.5% | | | | | | | | | | | | |
| Advanced Micro Devices, Inc. | | | | | | | | | | | | |
| 7.75%, 08/01/2020 ^ | | | | | | | 715 | | | | 726 | |
| Alcatel-Lucent USA, Inc. | | | | | | | | | | | | |
| 6.50%, 01/15/2028 | | | | | | | 1,275 | | | | 1,116 | |
| American International Group, Inc. | | | | | | | | | | | | |
| 8.18%, 05/15/2058 * | | | | | | | 5,210 | | | | 5,028 | |
| Aviation Capital Group Corp. | | | | | | | | | | | | |
| 6.75%, 04/06/2021 — 144A | | | | | | | 1,055 | | | | 1,016 | |
| Braskem America Finance Co. | | | | | | | | | | | | |
| 7.13%, 07/22/2041 — 144A | | | | | | | 2,765 | | | | 2,717 | |
| Bruce Mansfield Unit | | | | | | | | | | | | |
| 6.85%, 06/01/2034 | | | | | | | 2,725 | | | | 2,916 | |
| CenturyLink, Inc. | | | | | | | | | | | | |
| 7.20%, 12/01/2025 | | | | | | | 595 | | | | 591 | |
| 7.60%, 09/15/2039 | | | | | | | 1,425 | | | | 1,412 | |
| CommScope, Inc. | | | | | | | | | | | | |
| 8.25%, 01/15/2019 — 144A ^ | | | | | | | 635 | | | | 625 | |
| DDR Corp. | | | | | | | | | | | | |
| 7.88%, 09/01/2020 | | | | | | | 1,585 | | | | 1,716 | |
| Dillard’s, Inc. | | | | | | | | | | | | |
| 7.13%, 08/01/2018 | | | | | | | 990 | | | | 992 | |
| Dynegy Holdings LLC | | | | | | | | | | | | |
| 7.63%, 10/15/2026 | | | | | | | 450 | | | | 270 | |
| Energy Future Holdings Corp. — Series P | | | | | | | | | | | | |
| 5.55%, 11/15/2014 ^ | | | | | | | 6,735 | | | | 4,309 | |
| Energy Future Holdings Corp. — Series Q | | | | | | | | | | | | |
| 6.50%, 11/15/2024 ^ | | | | | | | 1,110 | | | | 461 | |
| Energy Future Holdings Corp. — Series R | | | | | | | | | | | | |
| 6.55%, 11/15/2034 ^ | | | | | | | 305 | | | | 127 | |
| Ford Motor Co. | | | | | | | | | | | | |
| 6.63%, 02/15/2028 | | | | | | | 175 | | | | 186 | |
| 7.50%, 08/01/2026 | | | | | | | 115 | | | | 124 | |
| Forethought Financial Group, Inc. | | | | | | | | | | | | |
| 8.63%, 04/15/2021 — 144A | | | | | | | 1,430 | | | | 1,453 | |
| Frontier Communications Corp. | | | | | | | | | | | | |
| 7.88%, 01/15/2027 | | | | | | | 2,160 | | | | 1,885 | |
| General Electric Capital Corp. | | | | | | | | | | | | |
| 2.96%, 05/18/2012 | | SGD | | | 2,500 | | | | 2,008 | |
| 3.49%, 03/08/2012 | | | | | | | 2,400 | | | | 1,922 | |
| 7.63%, 12/10/2014 | | NZD | | | 320 | | | | 280 | |
| HCA, Inc. | | | | | | | | | | | | |
| 7.05%, 12/01/2027 | | | | | | $ | 55 | | | | 47 | |
| 7.50%, 12/15/2023 | | | | | | | 50 | | | | 47 | |
| 7.50%, 11/06/2033 ^ | | | | | | | 3,150 | | | | 2,788 | |
| 7.58%, 09/15/2025 | | | | | | | 755 | | | | 691 | |
| 7.69%, 06/15/2025 | | | | | | | 1,545 | | | | 1,437 | |
| 7.75%, 07/15/2036 ^ | | | | | | | 125 | | | | 114 | |
| 8.36%, 04/15/2024 | | | | | | | 190 | | | | 186 | |
| IFM U.S. Colonial Pipeline 2 LLC | | | | | | | | | | | | |
| 6.45%, 05/01/2021 — 144A | | | | | | | 2,300 | | | | 2,554 | |
| International Lease Finance Corp. | | | | | | | | | | | | |
| 6.25%, 05/15/2019 ^ | | | | | | | 225 | | | | 212 | |
| 8.25%, 12/15/2020 ^ | | | | | | | 1,135 | | | | 1,175 | |
| JC Penney Corp., Inc. | | | | | | | | | | | | |
| 7.63%, 03/01/2097 | | | | | | | 430 | | | | 370 | |
| Level 3 Financing, Inc. | | | | | | | | | | | | |
| 9.38%, 04/01/2019 ^ | | | | | | | 100 | | | | 105 | |
| Mackinaw Power LLC | | | | | | | | | | | | |
| 6.30%, 10/31/2023 — 144A | | | | | | | 1,376 | | | | 1,484 | |
| Macy’s Retail Holdings, Inc. | | | | | | | | | | | | |
| 6.79%, 07/15/2027 | | | | | | | 1,065 | | | | 1,119 | |
| Masco Corp. | | | | | | | | | | | | |
| 5.85%, 03/15/2017 | | | | | | | 2,440 | | | | 2,406 | |
| 6.50%, 08/15/2032 | | | | | | | 895 | | | | 769 | |
| 7.13%, 03/15/2020 ^ | | | | | | | 1,505 | | | | 1,500 | |
| 7.75%, 08/01/2029 | | | | | | | 360 | | | | 347 | |
| Meccanica Holdings USA, Inc. | | | | | | | | | | | | |
| 7.38%, 07/15/2039 — 144A | | | | | | | 2,700 | | | | 2,532 | |
| Merrill Lynch & Co., Inc. | | | | | | | | | | | | |
| 6.05%, 05/16/2016 - 06/01/2034 | | | | | | | 920 | | | | 819 | |
| 6.11%, 01/29/2037 | | | | | | | 8,010 | | | | 7,040 | |
| Midwest Generation LLC — Series B | | | | | | | | | | | | |
| 8.56%, 01/02/2016 | | | | | | | 599 | | | | 611 | |
| Morgan Stanley | | | | | | | | | | | | |
| 5.50%, 01/26/2020 ^ | | | | | | | 700 | | | | 690 | |
| 5.50%, 07/24/2020 | | | | | | | 3,360 | | | | 3,342 | |
| 5.75%, 01/25/2021 | | | | | | | 300 | | | | 296 | |
| New Albertsons, Inc. | | | | | | | | | | | | |
| 6.63%, 06/01/2028 | | | | | | | 4,210 | | | | 3,042 | |
| 7.45%, 08/01/2029 | | | | | | | 1,305 | | | | 1,021 | |
| 7.75%, 06/15/2026 | | | | | | | 680 | | | | 564 | |
| 8.00%, 05/01/2031 ^ | | | | | | | 905 | | | | 760 | |
| NLV Financial Corp. | | | | | | | | | | | | |
| 7.50%, 08/15/2033 — 144A | | | | | | | 190 | | | | 191 | |
| Northwest Airlines Pass-Through Trust - | | | | | | | | | | | | |
| Series 2007-1, Class A | | | | | | | | | | | | |
| 7.03%, 11/01/2019 ^ | | | | | | | 6,265 | | | | 6,297 | |
| Owens Corning, Inc. | | | | | | | | | | | | |
| 7.00%, 12/01/2036 | | | | | | | 4,585 | | | | 4,666 | |
| Parker Drilling Co. | | | | | | | | | | | | |
| 9.13%, 04/01/2018 | | | | | | | 325 | | | | 340 | |
| Pulte Group, Inc. | | | | | | | | | | | | |
| 6.00%, 02/15/2035 | | | | | | | 305 | | | | 218 | |
| 6.38%, 05/15/2033 | | | | | | | 1,850 | | | | 1,341 | |
| 7.88%, 06/15/2032 | | | | | | | 1,500 | | | | 1,249 | |
| Qwest Capital Funding, Inc. | | | | | | | | | | | | |
| 6.88%, 07/15/2028 ^ | | | | | | | 1,510 | | | | 1,336 | |
| 7.63%, 08/03/2021 | | | | | | | 1,000 | | | | 960 | |
| Qwest Corp. | | | | | | | | | | | | |
| 6.88%, 09/15/2033 | | | | | | | 2,770 | | | | 2,752 | |
| 7.20%, 11/10/2026 ^ | | | | | | | 895 | | | | 882 | |
| 7.25%, 10/15/2035 | | | | | | | 290 | | | | 287 | |
| 7.50%, 06/15/2023 | | | | | | | 1,670 | | | | 1,664 | |
| Ralcorp Holdings, Inc. | | | | | | | | | | | | |
| 6.63%, 08/15/2039 | | | | | | | 3,060 | | | | 3,057 | |
| Reynolds Group Issuer, Inc. | | | | | | | | | | | | |
| 8.25%, 02/15/2021 — 144A | | | | | | | 800 | | | | 734 | |
| RR Donnelley & Sons Co. | | | | | | | | | | | | |
| 7.25%, 05/15/2018 ^ | | | | | | | 2,315 | | | | 2,257 | |
| SLM Corp. | | | | | | | | | | | | |
| 5.00%, 06/15/2018 | | | | | | | 175 | | | | 158 | |
| 5.63%, 08/01/2033 | | | | | | | 779 | | | | 627 | |
| 8.45%, 06/15/2018 ^ | | | | | | | 4,030 | | | | 4,272 | |
| Springleaf Finance Corp. | | | | | | | | | | | | |
| 5.40%, 12/01/2015 | | | | | | | 110 | | | | 86 | |
| 6.90%, 12/15/2017 | | | | | | | 6,260 | | | | 4,772 | |
| Sprint Capital Corp. | | | | | | | | | | | | |
| 6.88%, 11/15/2028 | | | | | | | 8,600 | | | | 6,277 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 101 | Annual Report 2011 |
Transamerica Loomis Sayles Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | | | | | |
| | | | | | | Principal | | | Value | |
| | | | | | | (000's) | | | (000's) | |
| |
United States (continued) | | | | | | | | | | | | |
| Toys “R” Us, Inc. | | | | | | | | | | | | |
| 7.38%, 10/15/2018 ^ | | | | | | $ | 4,440 | | | $ | 4,085 | |
| U.S. Steel Corp. | | | | | | | | | | | | |
| 6.65%, 06/01/2037 | | | | | | | 1,925 | | | | 1,444 | |
| USG Corp. | | | | | | | | | | | | |
| 6.30%, 11/15/2016 | | | | | | | 4,585 | | | | 3,542 | |
| 9.75%, 01/15/2018 ^ | | | | | | | 1,070 | | | | 899 | |
| Valeant Pharmaceuticals International, Inc. | | | | | | | | | | | | |
| 6.75%, 08/15/2021 — 144A | | | | | | | 2,440 | | | | 2,355 | |
| 7.00%, 10/01/2020 — 144A | | | | | | | 945 | | | | 936 | |
| 7.25%, 07/15/2022 — 144A | | | | | | | 2,835 | | | | 2,792 | |
| Westvaco Corp. | | | | | | | | | | | | |
| 7.95%, 02/15/2031 | | | | | | | 1,135 | | | | 1,189 | |
| 8.20%, 01/15/2030 | | | | | | | 2,985 | | | | 3,290 | |
| Weyerhaeuser Co. | | | | | | | | | | | | |
| 6.88%, 12/15/2033 | | | | | | | 4,740 | | | | 4,641 | |
| 6.95%, 10/01/2027 | | | | | | | 130 | | | | 125 | |
| 7.38%, 03/15/2032 | | | | | | | 1,530 | | | | 1,529 | |
| | | | | | | | | | | | |
Total Corporate Debt Securities (cost $173,609) | | | | | | | | | | | 171,576 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
STRUCTURED NOTES DEBT — 1.4% | | | | | | | | | | | | |
United States — 1.4% | | | | | | | | | | | | |
| JPMorgan Chase & Co. | | | | | | | | | | | | |
| 2.60%, 04/12/2012 — 144A ▲ | | | | IDR | 21,967,355 | | | | 2,390 | |
| 2.60%, 09/10/2012 — 144A ▲ | | | | | | | 37,004,100 | | | | 3,915 | |
| | | | | | | | | | | | |
Total Structured Notes Debt (cost $5,880) | | | | | | | | | | | 6,305 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
CONVERTIBLE BONDS — 11.3% | | | | | | | | | | | | |
United States — 11.3% | | | | | | | | | | | | |
| AMR Corp. | | | | | | | | | | | | |
| 6.25%, 10/15/2014 | | | | | | | 690 | | | | 384 | |
| Chesapeake Energy Corp. | | | | | | | | | | | | |
| 2.25%, 12/15/2038 | | | | | | | 390 | | | | 338 | |
| 2.50%, 05/15/2037 ^ | | | | | | | 1,845 | | | | 1,829 | |
| Ciena Corp. | | | | | | | | | | | | |
| 0.88%, 06/15/2017 ^ | | | | | | | 4,510 | | | | 3,348 | |
| 3.75%, 10/15/2018 — 144A | | | | | | | 860 | | | | 839 | |
| Ford Motor Co. | | | | | | | | | | | | |
| 4.25%, 11/15/2016 | | | | | | | 3,715 | | | | 5,526 | |
| Hologic, Inc. | | | | | | | | | | | | |
| 2.00%, 12/15/2037 * ^ | | | | | | | 280 | | | | 297 | |
| Human Genome Sciences, Inc. | | | | | | | | | | | | |
| 2.25%, 08/15/2012 ^ | | | | | | | 1,170 | | | | 1,196 | |
| Illumina, Inc. | | | | | | | | | | | | |
| 0.25%, 03/15/2016 — 144A | | | | | | | 265 | | | | 205 | |
| Intel Corp. | | | | | | | | | | | | |
| 2.95%, 12/15/2035 | | | | | | | 1,645 | | | | 1,764 | |
| 3.25%, 08/01/2039 | | | | | | | 10,315 | | | | 13,024 | |
| LAM Research Corp. | | | | | | | | | | | | |
| 1.25%, 05/15/2018 — 144A | | | | | | | 655 | | | | 644 | |
| Lennar Corp. | | | | | | | | | | | | |
| 2.00%, 12/01/2020 — 144A | | | | | | | 65 | | | | 63 | |
| 2.75%, 12/15/2020 — 144A | | | | | | | 75 | | | | 77 | |
| Level 3 Communications, Inc. | | | | | | | | | | | | |
| 7.00%, 03/15/2015 — 144A § | | | | | | | 2,110 | | | | 2,796 | |
| Liberty Interactive LLC | | | | | | | | | | | | |
| 3.50%, 01/15/2031 | | | | | | | 121 | | | | 68 | |
| Micron Technology, Inc. | | | | | | | | | | | | |
| 1.88%, 08/01/2031 — 144A | | | | | | | 2,140 | | | | 1,757 | |
| 1.88%, 06/01/2014 ^ | | | | | | | 535 | | | | 513 | |
| Old Republic International Corp. | | | | | | | | | | | | |
| 3.75%, 03/15/2018 ^ | | | | | | | 1,245 | | | | 1,121 | |
| Omnicare, Inc. | | | | | | | | | | | | |
| 3.75%, 12/15/2025 | | | | | | | 1,245 | | | | 1,548 | |
| Owens-Brockway Glass Container, Inc. | | | | | | | | | | | | |
| 3.00%, 06/01/2015 — 144A | | | | | | | 4,300 | | | | 3,961 | |
| Peabody Energy Corp. | | | | | | | | | | | | |
| 4.75%, 12/15/2041 ^ | | | | | | | 1,715 | | | | 1,870 | |
| Steel Dynamics, Inc. | | | | | | | | | | | | |
| 5.13%, 06/15/2014 ^ | | | | | | | 355 | | | | 378 | |
| Trinity Industries, Inc. | | | | | | | | | | | | |
| 3.88%, 06/01/2036 ^ | | | | | | | 3,050 | | | | 2,913 | |
| Vertex Pharmaceuticals, Inc. | | | | | | | | | | | | |
| 3.35%, 10/01/2015 | | | | | | | 5,205 | | | | 5,576 | |
| | | | | | | | | | | | |
Total Convertible Bonds (cost $46,060) | | | | | | | | | | | 52,035 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
LOAN ASSIGNMENT — 0.7% | | | | | | | | | | | | |
United States — 0.7% | | | | | | | | | | | | |
| Level 3 Financing, Inc. | | | | | | | | | | | | |
| 11.50%, 03/13/2014 | | | | | | | 3,250 | | | | 3,378 | |
Total Loan Assignment (cost $3,232) | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000's) | |
| |
CONVERTIBLE PREFERRED STOCKS — 1.8% | | | | | | | | |
United States — 1.8% | | | | | | | | |
| AES Trust III, 6.75% ^ | | | 10,950 | | | | 534 | |
| Bank of America Corp., 7.25% | | | 805 | | | | 689 | |
| El Paso Energy Capital Trust I, 4.75% | | | 6,300 | | | | 277 | |
| Lucent Technologies Capital Trust I, 7.75% | | | 4,900 | | | | 4,262 | |
| Newell Financial Trust I, 5.25% | | | 12,300 | | | | 523 | |
| Sovereign Capital Trust IV, 4.38% | | | 8,050 | | | | 322 | |
| United Rentals Trust I, 6.50% ^ | | | 3,243 | | | | 144 | |
| Wells Fargo & Co., 7.50% | | | 1,340 | | | | 1,415 | |
| | | | | | | | |
Total Convertible Preferred Stocks (cost $7,703) | | | | | | | 8,166 | |
| | | | | | | | |
| | | | | | | | | |
PREFERRED STOCKS — 4.0% | | | | | | | | |
United States — 4.0% | | | | | | | | |
| Ally Financial, Inc., 7.00% — 144A | | | 1,675 | | | | 1,249 | |
| Ally Financial, Inc., 8.50% * | | | 93,825 | | | | 1,820 | |
| Countrywide Capital IV, 6.75% ^ | | | 88,375 | | | | 1,932 | |
| General Motors Co., 4.75% ^ | | | 226,600 | | | | 9,418 | |
| Goodyear Tire & Rubber Co., 5.88% | | | 28,250 | | | | 1,419 | |
| Health Care REIT, Inc., 6.50% | | | 19,300 | | | | 973 | |
| SLM Corp., 6.00% | | | 78,825 | | | | 1,616 | |
| | | | | | | | |
Total Preferred Stocks (cost $20,283) | | | | | | | 18,427 | |
| | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 1.2% | | | | | | | | |
Canada — 0.9% | | | | | | | | |
| Valeant Pharmaceuticals International, Inc. ^ | | | 102,786 | | | | 4,066 | |
United States — 0.3% | | | | | | | | |
| Dex One Corp. ‡ ^ | | | 1,218 | | | | 1 | |
| Ford Motor Co. ‡ ^ | | | 7,110 | | | | 83 | |
| KB Home ^ | | | 181,675 | | | | 1,266 | |
| Owens-Illinois, Inc. ‡ ^ | | | 10,796 | | | | 217 | |
| | | | | | | | |
Total Common Stocks (cost $3,296) | | | | | | | 5,633 | |
| | | | | | | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 102 | Annual Report 2011 |
Transamerica Loomis Sayles Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES LENDING COLLATERAL — 7.7% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 35,618,547 | | | $ | 35,619 | |
Total Securities Lending Collateral (cost $35,619) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 2.0% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $9,403 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $9,592. | | $ | 9,403 | | | | 9,403 | |
Total Repurchase Agreement (cost $9,403) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $478,770) П | | | | | | | 493,393 | |
| Other Assets and Liabilities — Net | | | | | | | (31,053 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 462,340 | |
| | | | | | | | |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Foreign Government Obligation | | | 24.7 | % | | $ | 121,945 | |
| Mortgage-Backed Security | | | 7.2 | | | | 35,460 | |
| Diversified Telecommunication Services | | | 6.4 | | | | 31,682 | |
| Diversified Financial Services | | | 5.1 | | | | 25,109 | |
| Asset-Backed Security | | | 3.8 | | | | 18,709 | |
| Semiconductors & Semiconductor Equipment | | | 3.7 | | | | 18,427 | |
| Automobiles | | | 3.1 | | | | 15,336 | |
| Consumer Finance | | | 3.0 | | | | 14,601 | |
| Building Products | | | 2.9 | | | | 14,129 | |
| Pharmaceuticals | | | 2.1 | | | | 10,149 | |
| Commercial Banks | | | 2.1 | | | | 10,117 | |
| Real Estate Investment Trusts | | | 1.8 | | | | 8,984 | |
| Oil, Gas & Consumable Fuels | | | 1.7 | | | | 8,566 | |
| Electric Utilities | | | 1.6 | | | | 7,946 | |
| Insurance | | | 1.6 | | | | 7,792 | |
| Health Care Providers & Services | | | 1.4 | | | | 6,858 | |
| Biotechnology | | | 1.4 | | | | 6,772 | |
| Airlines | | | 1.4 | | | | 6,680 | |
| Transportation Infrastructure | | | 1.2 | | | | 6,098 | |
| Communications Equipment | | | 1.2 | | | | 5,928 | |
| Food & Staples Retailing | | | 1.1 | | | | 5,388 | |
| Metals & Mining | | | 1.0 | | | | 5,178 | |
| U.S. Government Obligation | | | 1.0 | | | | 4,893 | |
| Household Durables | | | 1.0 | | | | 4,737 | |
| Paper & Forest Products | | | 0.9 | | | | 4,479 | |
| Capital Markets | | | 0.9 | | | | 4,328 | |
| Containers & Packaging | | | 0.8 | | | | 4,178 | |
| Specialty Retail | | | 0.8 | | | | 4,085 | |
| Chemicals | | | 0.7 | | | | 3,662 | |
| Commercial Services & Supplies | | | 0.7 | | | | 3,576 | |
| Independent Power Producers & Energy Traders | | | 0.7 | | | | 3,449 | |
| Aerospace & Defense | | | 0.7 | | | | 3,344 | |
| Food Products | | | 0.6 | | | | 3,057 | |
| Machinery | | | 0.6 | | | | 2,913 | |
| Multiline Retail | | | 0.5 | | | | 2,481 | |
| Multi-Utilities | | | 0.4 | | | | 2,142 | |
| Auto Components | | | 0.3 | | | | 1,419 | |
| Road & Rail | | | 0.2 | | | | 1,016 | |
| Wireless Telecommunication Services | | | 0.2 | | | | 866 | |
| Municipal Government Obligation | | | 0.1 | | | | 659 | |
| Energy Equipment & Services | | | 0.1 | | | | 340 | |
| Thrifts & Mortgage Finance | | | 0.1 | | | | 322 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 103 | Annual Report 2011 |
Transamerica Loomis Sayles Bond
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited) (continued): | | Total Investments | | | (000’s) | |
| |
| Health Care Equipment & Supplies | | | 0.1 | % | | $ | 297 | |
| Life Sciences Tools & Services | | | 0.0 | ∞ | | | 205 | |
| Media | | | 0.0 | ∞ | | | 69 | |
| | | | | | | |
| Investment Securities, at Value | | | 90 .9 | | | | 448,371 | |
| Short-Term Investments | | | 9 .1 | | | | 45,022 | |
| | | | | | | |
| Total Investments | | | 100 .0 | % | | $ | 493,393 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $34,841. |
| |
| ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| Џ | | In default. |
| |
| § | | Illiquid. These securities aggregated to $2,836, or 0.61%, of the fund’s net assets |
| |
| ¥ | | Percentage rounds to less than 0.1%. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $478,770. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $33,299 and $18,676, respectively. Net unrealized appreciation for tax purposes is $14,623. |
| | | |
|
| DEFINITIONS (all amounts in thousands): |
| | | |
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $105,298, or 22.78%, of the fund’s net assets. |
| |
REIT | | Real Estate Investment Trust |
| |
REMIC | | Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities) |
| | | |
| CURRENCY ABBREVIATIONS: |
| | | |
AUD | | Australian Dollar |
BRL | | Brazilian Real |
CAD | | Canadian Dollar |
EUR | | Euro |
IDR | | Indonesian Rupiah |
INR | | Indian Rupee |
KRW | | South Korean Won |
MXN | | Mexican Peso |
MYR | | Malaysian Riggit |
NZD | | New Zealand Dollar |
PHP | | Philippines Peso |
SGD | | Singapore Dollar |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Asset-Backed Securities | | $ | — | | | $ | 18,709 | | | $ | — | | | $ | 18,709 | |
| Common Stocks | | | 5,633 | | | | — | | | | — | | | | 5,633 | |
| Convertible Bonds | | | — | | | | 52,035 | | | | — | | | | 52,035 | |
| Convertible Preferred Stocks | | | 8,166 | | | | — | | | | — | | | | 8,166 | |
| Corporate Debt Securities | | | — | | | | 171,576 | | | | — | | | | 171,576 | |
| Foreign Government Obligations | | | — | | | | 121,945 | | | | — | | | | 121,945 | |
| Loan Assignments | | | — | | | | 3,378 | | | | — | | | | 3,378 | |
| Mortgage-Backed Securities | | | — | | | | 35,460 | | | | — | | | | 35,460 | |
| Municipal Government Obligations | | | — | | | | 659 | | | | — | | | | 659 | |
| Preferred Corporate Debt Securities | | | — | | | | 1,185 | | | | — | | | | 1,185 | |
| Preferred Stocks | | | 18,427 | | | | — | | | | — | | | | 18,427 | |
| Repurchase Agreement | | | — | | | | 9,403 | | | | — | | | | 9,403 | |
| Securities Lending Collateral | | | 35,619 | | | | — | | | | — | | | | 35,619 | |
| Structured Notes Debt | | | — | | | | 6,305 | | | | — | | | | 6,305 | |
| U.S. Government Obligations | | | — | | | | 4,893 | | | | — | | | | 4,893 | |
| | | |
Total | | $ | 67,845 | | | $ | 425,548 | | | $ | — | | | $ | 493,393 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 104 | Annual Report 2011 |
Transamerica MFS International Equity
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 99.7% | | | | | | | | |
Australia — 3.0% | | | | | | | | |
| QBE Insurance Group, Ltd. | | | 271,925 | | | $ | 4,186 | |
| Westpac Banking Corp. ^ | | | 294,790 | | | | 6,841 | |
Austria — 0.1% | | | | | | | | |
| Erste Group Bank AG | | | 10,961 | | | | 234 | |
Bermuda — 1.6% | | | | | | | | |
| Li & Fung, Ltd. | | | 2,946,000 | | | | 5,678 | |
Brazil — 1.2% | | | | | | | | |
| BM&FBovespa SA | | | 391,000 | | | | 2,334 | |
| Tim Participacoes SA ADR | | | 66,610 | | | | 1,735 | |
Canada — 2.5% | | | | | | | | |
| Canadian National Railway Co. | | | 114,793 | | | | 9,002 | |
Czech Republic — 0.8% | | | | | | | | |
| Komercni Banka AS | | | 15,674 | | | | 2,999 | |
France — 12.4% | | | | | | | | |
| Air Liquide SA | | | 54,227 | | | | 7,002 | |
| Dassault Systemes SA ^ | | | 22,556 | | | | 1,897 | |
| Groupe Danone SA | | | 110,866 | | | | 7,686 | |
| Legrand SA | | | 109,873 | | | | 3,884 | |
| LVMH Moet Hennessy Louis Vuitton SA | | | 56,824 | | | | 9,419 | |
| Pernod-Ricard SA | | | 65,541 | | | | 6,099 | |
| Schneider Electric SA | | | 139,494 | | | | 8,191 | |
Germany — 10.9% | | | | | | | | |
| Bayer AG | | | 69,853 | | | | 4,450 | |
| Beiersdorf AG | | | 125,046 | | | | 7,209 | |
| Deutsche Boerse AG ‡ | | | 57,646 | | | | 3,177 | |
| Linde AG | | | 89,495 | | | | 14,177 | |
| Merck KGaA | | | 39,110 | | | | 3,650 | |
| SAP AG | | | 95,410 | | | | 5,769 | |
Hong Kong — 2.2% | | | | | | | | |
| AIA Group, Ltd. | | | 912,400 | | | | 2,790 | |
| China Unicom, Ltd. | | | 1,502,000 | | | | 3,020 | |
| CNOOC, Ltd. | | | 949,000 | | | | 1,794 | |
India — 2.5% | | | | | | | | |
| ICICI Bank, Ltd. ADR | | | 167,000 | | | | 6,206 | |
| Infosys, Ltd. ADR ^ | | | 43,490 | | | | 2,548 | |
Japan — 12.4% | | | | | | | | |
| Canon, Inc. | | | 117,300 | | | | 5,325 | |
| Denso Corp. | | | 139,100 | | | | 4,278 | |
| Fanuc Corp. | | | 30,200 | | | | 4,883 | |
| Honda Motor Co., Ltd. | | | 117,800 | | | | 3,523 | |
| Hoya Corp. ^ | | | 216,300 | | | | 4,725 | |
| INPEX Corp. | | | 989 | | | | 6,529 | |
| Lawson, Inc. ^ | | | 100,800 | | | | 5,672 | |
| Nomura Holdings, Inc. | | | 446,500 | | | | 1,701 | |
| Shin-Etsu Chemical Co., Ltd. | | | 139,800 | | | | 7,179 | |
Jersey, Channel Islands — 1.6% | | | | | | | | |
| WPP PLC | | | 546,934 | | | | 5,661 | |
Korea, Republic of — 2.0% | | | | | | | | |
| Samsung Electronics Co., Ltd. | | | 8,101 | | | | 6,974 | |
Netherlands — 8.6% | | | | | | | | |
| Akzo Nobel NV | | | 103,241 | | | | 5,429 | |
| Heineken NV | | | 205,608 | | | | 9,988 | |
| ING Groep NV ‡ | | | 904,607 | | | | 7,799 | |
| Randstad Holding NV | | | 150,572 | | | | 5,346 | |
| Wolters Kluwer NV | | | 101,728 | | | | 1,795 | |
Singapore — 0.7% | | | | | | | | |
| Keppel Corp., Ltd. ^ | | | 135,700 | | | | 1,016 | |
| Singapore Telecommunications, Ltd. | | | 600,150 | | | | 1,517 | |
South Africa — 0.9% | | | | | | | | |
| MTN Group, Ltd. | | | 180,636 | | | | 3,139 | |
Spain — 3.2% | | | | | | | | |
| Amadeus IT Holding SA — Class A | | | 276,267 | | | | 5,207 | |
| Banco Santander SA | | | 537,741 | | | | 4,551 | |
| Red Electrica Corp. SA | | | 30,964 | | | | 1,492 | |
Sweden — 0.9% | | | | | | | | |
| Hennes & Mauritz AB — Class B | | | 79,030 | | | | 2,613 | |
| Svenska Cellulosa AB — Class B | | | 56,068 | | | | 819 | |
Switzerland — 10.6% | | | | | | | | |
| Cie Financiere Richemont SA | | | 47,171 | | | | 2,687 | |
| Givaudan SA ‡ | | | 2,140 | | | | 1,946 | |
| Julius Baer Group, Ltd. ‡ | | | 150,479 | | | | 5,655 | |
| Nestle SA | | | 193,963 | | | | 11,218 | |
| Roche Holding AG | | | 42,646 | | | | 6,997 | |
| Sonova Holding AG ‡ | | | 22,090 | | | | 2,335 | |
| Swiss Re AG ‡ | | | 30,667 | | | | 1,674 | |
| UBS AG ‡ | | | 367,561 | | | | 4,645 | |
Taiwan — 2.6% | | | | | | | | |
| High Tech Computer Corp. | | | 66,700 | | | | 1,499 | |
| Hon Hai Precision Industry Co., Ltd. | | | 944,300 | | | | 2,589 | |
| Taiwan Semiconductor Manufacturing Co., | | | | | | | | |
| Ltd. ADR | | | 422,851 | | | | 5,336 | |
United Kingdom — 18.5% | | | | | | | | |
| Barclays PLC | | | 515,341 | | | | 1,598 | |
| BG Group PLC | | | 129,391 | | | | 2,806 | |
| Burberry Group PLC | | | 94,906 | | | | 2,037 | |
| Compass Group PLC | | | 709,100 | | | | 6,439 | |
| Diageo PLC | | | 395,191 | | | | 8,179 | |
| Hays PLC | | | 1,275,997 | | | | 1,620 | |
| HSBC Holdings PLC | | | 1,228,088 | | | | 10,714 | |
| Reckitt Benckiser Group PLC | | | 109,645 | | | | 5,628 | |
| Rio Tinto PLC | | | 89,520 | | | | 4,843 | |
| Royal Dutch Shell PLC — Class A | | | 158,598 | | | | 5,618 | |
| Smiths Group PLC | | | 199,135 | | | | 3,056 | |
| Standard Chartered PLC | | | 265,617 | | | | 6,198 | |
| Tesco PLC | | | 946,413 | | | | 6,102 | |
United States — 0.5% | | | | | | | | |
| Synthes, Inc. — 144A | | | 11,515 | | | | 1,926 | |
| | | | | | | | |
Total Common Stocks (cost $358,428) | | | | | | | 352,483 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 4.2% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 14,902,793 | | | | 14,903 | |
| Total Securities Lending Collateral (cost $14,903) | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000's) | | | (000's) | |
| |
REPURCHASE AGREEMENT — 0.3% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $1,220 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $1,245. | | $ | 1,220 | | | | 1,220 | |
Total Repurchase Agreement (cost $1,220) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $374,551) п | | | | | | | 368,606 | |
| Other Assets and Liabilities — Net | | | | | | | (14,912 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 353,694 | |
| | | | | | | | |
| | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 105 | Annual Report 2011 |
Transamerica MFS International Equity
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000's) | |
| |
| Commercial Banks | | | 10.7 | % | | $ | 39,342 | |
| Chemicals | | | 9.7 | | | | 35,734 | |
| Beverages | | | 6.6 | | | | 24,266 | |
| Food Products | | | 5.1 | | | | 18,904 | |
| Oil, Gas & Consumable Fuels | | | 4.5 | | | | 16,747 | |
| Pharmaceuticals | | | 4.1 | | | | 15,097 | |
| Textiles, Apparel & Luxury Goods | | | 3.8 | | | | 14,143 | |
| Diversified Financial Services | | | 3.6 | | | | 13,310 | |
| Semiconductors & Semiconductor Equipment | | | 3.3 | | | | 12,310 | |
| Electrical Equipment | | | 3.3 | | | | 12,075 | |
| Capital Markets | | | 3.3 | | | | 12,001 | |
| Food & Staples Retailing | | | 3.2 | | | | 11,774 | |
| Road & Rail | | | 2.4 | | | | 9,002 | |
| Insurance | | | 2.4 | | | | 8,650 | |
| IT Services | | | 2.1 | | | | 7,755 | |
| Software | | | 2.1 | | | | 7,666 | |
| Media | | | 2.0 | | | | 7,456 | |
| Electronic Equipment & Instruments | | | 2.0 | | | | 7,314 | |
| Personal Products | | | 2.0 | | | | 7,209 | |
| Professional Services | | | 1.9 | | | | 6,966 | |
| Hotels, Restaurants & Leisure | | | 1.8 | | | | 6,439 | |
| Distributors | | | 1.5 | | | | 5,677 | |
| Household Products | | | 1.5 | | | | 5,628 | |
| Office Electronics | | | 1.4 | | | | 5,325 | |
| Machinery | | | 1.3 | | | | 4,883 | |
| Wireless Telecommunication Services | | | 1.3 | | | | 4,874 | |
| Metals & Mining | | | 1.3 | | | | 4,843 | |
| Diversified Telecommunication Services | | | 1.2 | | | | 4,537 | |
| Auto Components | | | 1.2 | | | | 4,278 | |
| Health Care Equipment & Supplies | | | 1.2 | | | | 4,261 | |
| Industrial Conglomerates | | | 1.1 | | | | 4,072 | |
| Automobiles | | | 1.0 | | | | 3,523 | |
| Specialty Retail | | | 0.7 | | | | 2,613 | |
| Communications Equipment | | | 0.4 | | | | 1,499 | |
| Electric Utilities | | | 0.4 | | | | 1,492 | |
| Paper & Forest Products | | | 0.2 | | | | 818 | |
| | | | | | | |
| Investment Securities, at Value | | | 95.6 | | | | 352,483 | |
| Short-Term Investments | | | 4.4 | | | | 16,123 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 368,606 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $14,231. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $374,988. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $23,723 and $30,105, respectively. Net unrealized depreciation for tax purposes is $6,382. |
| | | |
|
| DEFINITIONS (all amounts in thousands): |
| | | |
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $1,926, or 0.54%, of the fund’s net assets. |
ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 20,675 | | | $ | 331,808 | | | $ | — | | | $ | 352,483 | |
| Repurchase Agreement | | | — | | | | 1,220 | | | | — | | | | 1,220 | |
| Securities Lending Collateral | | | 14,903 | | | | — | | | | — | | | | 14,903 | |
| | | |
Total | | $ | 35,578 | | | $ | 333,028 | | | $ | — | | | $ | 368,606 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 106 | Annual Report 2011 |
Transamerica Morgan Stanley Emerging Markets Debt
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | | | | | |
| | | | | | | Principal | | | Value | |
| | | | | | | (000’s) | | | (000’s) | |
| |
FOREIGN GOVERNMENT OBLIGATIONS — 62.0% | | | | | | | | | | | | |
Argentina — 3.3% | | | | | | | | | | | | |
| Republic of Argentina | | | | | | | | | | | | |
| 7.00%, 10/03/2015 | | | | | | $ | 11,284 | | | $ | 10,009 | |
Belarus — 0.3% | | | | | | | | | | | | |
| Republic of Belarus | | | | | | | | | | | | |
| 8.75%, 08/03/2015 — Reg S ^ | | | | | | | 830 | | | | 701 | |
| 8.95%, 01/26/2018 — Reg S ^ | | | | | | | 360 | | | | 302 | |
Belize — 0.2% | | | | | | | | | | | | |
| Republic of Belize | | | | | | | | | | | | |
| 6.00%, 02/20/2029 — Reg S | | | | | | | 810 | | | | 486 | |
Brazil — 8.7% | | | | | | | | | | | | |
| Banco National de Desenvolvimento Economico e Social | | | | | | | | | | | | |
| 5.50%, 07/12/2020 — Reg S | | | | | | | 4,300 | | | | 4,635 | |
| 5.50%, 07/12/2020 — 144A | | | | | | | 2,970 | | | | 3,202 | |
| 6.37%, 06/16/2018 — Reg S | | | | | | | 1,300 | | | | 1,473 | |
| 6.37%, 06/16/2018 — 144A ^ | | | | | | | 478 | | | | 542 | |
| Brazilian Government International Bond | | | | | | | | | | | | |
| 4.88%, 01/22/2021 ^ | | | | | | | 1,270 | | | | 1,403 | |
| Republic of Brazil | | | | | | | | | | | | |
| 5.88%, 01/15/2019 ^ | | | | | | | 1,390 | | | | 1,630 | |
| 7.13%, 01/20/2037 | | | | | | | 5,677 | | | | 7,593 | |
| 8.00%, 01/15/2018 | | | | | | | 1,322 | | | | 1,554 | |
| 8.88%, 10/14/2019 | | | | | | | 3,623 | | | | 5,023 | |
Chile — 1.5% | | | | | | | | | | | | |
| Republic of Chile | | | | | | | | | | | | |
| 5.50%, 08/05/2020 | | CLP | | | 2,104,500 | | | | 4,515 | |
Colombia — 3.0% | | | | | | | | | | | | |
| Colombia Government International Bond | | | | | | | | | | | | |
| 4.38%, 07/12/2021 | | | | | | $ | 2,670 | | | | 2,790 | |
| Republic of Colombia | | | | | | | | | | | | |
| 7.38%, 03/18/2019 | | | | | | | 260 | | | | 328 | |
| 11.75%, 02/25/2020 | | | | | | | 2,160 | | | | 3,348 | |
| 12.00%, 10/22/2015 | | COP | | | 4,200,000 | | | | 2,852 | |
Croatia — 0.5% | | | | | | | | | | | | |
| Republic of Croatia | | | | | | | | | | | | |
| 6.63%, 07/14/2020 — 144A ^ | | | | | | $ | 1,630 | | | | 1,608 | |
Dominican Republic — 0.3% | | | | | | | | | | | | |
| Republic of The Dominican Republic | | | | | | | | | | | | |
| 7.50%, 05/06/2021 — 144A | | | | | | | 720 | | | | 747 | |
| 9.04%, 01/23/2018 — Reg S | | | | | | | 383 | | | | 427 | |
Ecuador — 0.9% | | | | | | | | | | | | |
| Republic of Ecuador | | | | | | | | | | | | |
| 9.38%, 12/15/2015 — Reg S | | | | | | | 2,870 | | | | 2,827 | |
Ghana — 1.2% | | | | | | | | | | | | |
| Republic of Ghana | | | | | | | | | | | | |
| 8.50%, 10/04/2017 — 144A | | | | | | | 2,596 | | | | 2,908 | |
| 8.50%, 10/04/2017 — Reg S | | | | | | | 800 | | | | 896 | |
Indonesia — 1.8% | | | | | | | | | | | | |
| Republic of Indonesia | | | | | | | | | | | | |
| 6.88%, 01/17/2018 — 144A | | | | | | | 740 | | | | 873 | |
| 7.75%, 01/17/2038 — 144A ^ | | | | | | | 584 | | | | 791 | |
| 7.75%, 01/17/2038 — Reg S | | | | | | | 670 | | | | 908 | |
| 11.63%, 03/04/2019 — Reg S | | | | | | | 1,850 | | | | 2,757 | |
Ivory Coast — 0.3% | | | | | | | | | | | | |
| Republic of The Ivory Coast | | | | | | | | | | | | |
| 2.50%, 12/31/2032 — Reg S Џ ‡ | | | | | | | 1,659 | | | | 900 | |
Lithuania — 0.9% | | | | | | | | | | | | |
| Republic of Lithuania | | | | | | | | | | | | |
| 6.13%, 03/09/2021 — 144A ^ | | | | | | | 550 | | | | 567 | |
| 6.75%, 01/15/2015 — 144A | | | | | | | 710 | | | | 767 | |
| 7.38%, 02/11/2020 — Reg S | | | | | | | 1,370 | | | | 1,533 | |
Malaysia — 1.0% | | | | | | | | | | | | |
| Republic of Malaysia | | | | | | | | | | | | |
| 3.21%, 05/31/2013 | | MYR | | | 9,280 | | | | 3,037 | |
Mexico — 5.1% | | | | | | | | | | | | |
| United Mexican States | | | | | | | | | | | | |
| 5.95%, 03/19/2019 | | | | | | $ | 860 | | | | 1,007 | |
| 6.05%, 01/11/2040 | | | | | | | 2,750 | | | | 3,224 | |
| 6.75%, 09/27/2034 | | | | | | | 4,657 | | | | 5,810 | |
| 8.00%, 06/11/2020 | | MXN | | | 70,490 | | | | 5,991 | |
Namibia — 0.4% | | | | | | | | | | | | |
| Namibia International Bonds | | | | | | | | | | | | |
| 5.50%, 11/03/2021 — 144A | | | | | | $ | 1,140 | | | | 1,140 | |
Pakistan — 0.2% | | | | | | | | | | | | |
| Republic of Pakistan | | | | | | | | | | | | |
| 6.88%, 06/01/2017 — Reg S | | | | | | | 889 | | | | 685 | |
Panama — 2.0% | | | | | | | | | | | | |
| Republic of Panama | | | | | | | | | | | | |
| 5.20%, 01/30/2020 | | | | | | | 2,480 | | | | 2,768 | |
| 8.88%, 09/30/2027 | | | | | | | 1,694 | | | | 2,499 | |
| 9.38%, 04/01/2029 | | | | | | | 700 | | | | 1,082 | |
Peru — 1.3% | | | | | | | | | | | | |
| Republic of Peru | | | | | | | | | | | | |
| 7.35%, 07/21/2025 | | | | | | | 10 | | | | 13 | |
| 8.75%, 11/21/2033 | | | | | | | 2,631 | | | | 3,953 | |
Philippines — 4.9% | | | | | | | | | | | | |
| Republic of The Philippines | | | | | | | | | | | | |
| 4.00%, 01/15/2021 ^ | | | | | | | 9,693 | | | | 9,862 | |
| 8.38%, 06/17/2019 | | | | | | | 1,841 | | | | 2,400 | |
| 9.50%, 02/02/2030 | | | | | | | 1,796 | | | | 2,741 | |
Russian Federation — 6.7% | | | | | | | | | | | | |
| Russian Federation | | | | | | | | | | | | |
| 7.50%, 03/31/2030 — Reg S | | | | | | | 4,362 | | | | 5,169 | |
| 12.75%, 06/24/2028 — Reg S | | | | | | | 4,470 | | | | 7,755 | |
| Russian Foreign Bond — Eurobond | | | | | | | | | | | | |
| 5.00%, 04/29/2020 — Reg S | | | | | | | 7,600 | | | | 7,904 | |
Senegal — 0.2% | | | | | | | | | | | | |
| Republic of Senegal | | | | | | | | | | | | |
| 8.75%, 05/13/2021 — 144A | | | | | | | 470 | | | | 484 | |
South Africa — 1.3% | | | | | | | | | | | | |
| Eskom Holdings SOC, Ltd. | | | | | | | | | | | | |
| 5.75%, 01/26/2021 — 144A | | | | | | | 3,754 | | | | 3,960 | |
Sri Lanka — 0.4% | | | | | | | | | | | | |
| Republic of Sri Lanka | | | | | | | | | | | | |
| 6.25%, 10/04/2020 Reg S ^ | | | | | | | 693 | | | | 702 | |
| 6.25%, 10/04/2020 — 144A | | | | | | | 680 | | | | 689 | |
Turkey — 6.0% | | | | | | | | | | | | |
| Export Credit Bank of Turkey | | | | | | | | | | | | |
| 5.38%, 11/04/2016 — 144A | | | | | | | 865 | | | | 865 | |
| Republic of Turkey | | | | | | | | | | | | |
| 5.63%, 03/30/2021 | | | | | | | 2,210 | | | | 2,332 | |
| 6.88%, 03/17/2036 | | | | | | | 4,584 | | | | 5,077 | |
| 7.00%, 03/11/2019 | | | | | | | 4,170 | | | | 4,816 | |
| 7.50%, 11/07/2019 | | | | | | | 3,980 | | | | 4,736 | |
| 8.00%, 02/14/2034 | | | | | | | 390 | | | | 486 | |
Ukraine — 4.5% | | | | | | | | | | | | |
| Republic of Ukraine | | | | | | | | | | | | |
| 6.58%, 11/21/2016 — Reg S ^ | | | | | | | 3,882 | | | | 3,688 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 107 | Annual Report 2011 |
Transamerica Morgan Stanley Emerging Markets Debt
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | | | | | |
| | | | | | | Principal | | | Value | |
| | | | | | | (000’s) | | | (000’s) | |
| |
Ukraine (continued) | | | | | | | | | | | | |
| Republic of Ukraine (continued) | | | | | | | | | | | | |
| 7.75%, 09/23/2020 — Reg S ^ | | | | | | $ | 9,200 | | | $ | 8,808 | |
| 7.75%, 09/23/2020 — 144A ^ | | | | | | | 1,780 | | | | 1,704 | |
Uruguay — 0.4% | | | | | | | | | | | | |
| Republic of Uruguay | | | | | | | | | | | | |
| 8.00%, 11/18/2022 ^ | | | | | | | 953 | | | | 1,263 | |
Venezuela — 4.7% | | | | | | | | | | | | |
| Republic of Venezuela | | | | | | | | | | | | |
| 6.00%, 12/09/2020 — Reg S | | | | | | | 1,940 | | | | 1,159 | |
| 7.00%, 03/31/2038 — Reg S | | | | | | | 2,907 | | | | 1,664 | |
| 7.65%, 04/21/2025 | | | | | | | 4,700 | | | | 2,926 | |
| 9.00%, 05/07/2023 — Reg S | | | | | | | 2,110 | | | | 1,445 | |
| 9.25%, 09/15/2027 ^ | | | | | | | 10,447 | | | | 7,548 | |
| | | | | | | | | | | | |
Total Foreign Government Obligations (cost $180,828) | | | | | | | | | | | 192,287 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
CORPORATE DEBT SECURITIES — 27.3% | | | | | | | | | | | | |
Brazil — 0.8% | | | | | | | | | | | | |
| Centrais Eletricas Brasileiras SA | | | | | | | | | | | | |
| 5.75%, 10/27/2021 — 144A ^ | | | | | | | 2,450 | | | | 2,536 | |
Cayman Islands — 2.1% | | | | | | | | | | | | |
| Banco Safra Cayman Islands, Ltd. | | | | | | | | | | | | |
| 6.75%, 01/27/2021 — 144A ^ | | | | | | | 1,440 | | | | 1,505 | |
| 6.75%, 01/27/2021 — Reg S ^ | | | | | | | 1,730 | | | | 1,808 | |
| Odebrecht Finance, Ltd. | | | | | | | | | | | | |
| 6.00%, 04/05/2023 — 144A | | | | | | | 3,030 | | | | 3,042 | |
Chile — 0.4% | | | | | | | | | | | | |
| Banco Santander Chile | | | | | | | | | | | | |
| 6.50%, 09/22/2020 Reg S | | CLP | | | 625,000 | | | | 1,257 | |
Ireland — 1.4% | | | | | | | | | | | | |
| Metalloinvest Finance, Ltd. | | | | | | | | | | | | |
| 6.50%, 07/21/2016 — 144A ^ | | | | | | $ | 1,450 | | | | 1,387 | |
| Novatek Finance, Ltd. | | | | | | | | | | | | |
| 6.60%, 02/03/2021 — 144A | | | | | | | 1,490 | | | | 1,551 | |
| Vimpel Communications Via VIP Finance | | | | | | | | | | | | |
| Ireland, Ltd. OJSC | | | | | | | | | | | | |
| 7.75%, 02/02/2021 — 144A | | | | | | | 1,480 | | | | 1,421 | |
Kazakhstan — 3.7% | | | | | | | | | | | | |
| Development Bank of Kazakhstan JSC | | | | | | | | | | | | |
| 5.50%, 12/20/2015 — 144A ^ | | | | | | | 1,280 | | | | 1,331 | |
| KazMunayGas National Co. | | | | | | | | | | | | |
| 6.38%, 04/09/2021 — 144A ^ | | | | | | | 2,550 | | | | 2,716 | |
| 6.38%, 04/09/2021 — Reg S | | | | | | | 1,500 | | | | 1,598 | |
| 9.13%, 07/02/2018 — Reg S | | | | | | | 550 | | | | 666 | |
| 9.13%, 07/02/2018 — 144A | | | | | | | 4,370 | | | | 5,288 | |
Luxembourg — 3.2% | | | | | | | | | | | | |
| Russian Agricultural Bank OJSC Via RSHB | | | | | | | | | | | | |
| Capital SA | | | | | | | | | | | | |
| 6.30%, 05/15/2017 — 144A | | | | | | | 1,527 | | | | 1,600 | |
| 6.30%, 05/15/2017 — Reg S | | | | | | | 1,500 | | | | 1,571 | |
| 7.18%, 05/16/2013 — 144A | | | | | | | 4,130 | | | | 4,346 | |
| 7.18%, 05/16/2013 — Reg S | | | | | | | 450 | | | | 474 | |
| 7.75%, 05/29/2018 — Reg S | | | | | | | 1,600 | | | | 1,776 | |
Mexico — 4.4% | | | | | | | | | | | | |
| Cemex SAB de CV | | | | | | | | | | | | |
| 9.00%, 01/11/2018 — 144A | | | | | | | 2,020 | | | | 1,687 | |
| 9.00%, 01/11/2018 — Reg S | | | | | | | 340 | | | | 284 | |
| Petroleos Mexicanos | | | | | | | | | | | | |
| 5.50%, 01/21/2021 ^ | | | | | | | 8,740 | | | | 9,329 | |
| 8.00%, 05/03/2019 ^ | | | | | | | 2,097 | | | | 2,616 | |
| Intergas Finance BV | | | | | | | | | | | | |
| 6.38%, 05/14/2017 — Reg S | | | | | | | 900 | | | | 954 | |
| Majapahit Holding BV | | | | | | | | | | | | |
| 7.75%, 01/20/2020 — Reg S | | | | | | | 9,740 | | | | 11,261 | |
| VimpelCom Holdings BV | | | | | | | | | | | | |
| 7.50%, 03/01/2022 — 144A | | | | | | | 1,810 | | | | 1,697 | |
United States — 2.8% | | | | | | | | | | | | |
| Pemex Project Funding Master Trust | | | | | | | | | | | | |
| 6.63%, 06/15/2035 ^ | | | | | | | 3,076 | | | | 3,353 | |
| 6.63%, 06/15/2038 | | | | | | | 2,097 | | | | 2,286 | |
| 8.63%, 12/01/2023 | | | | | | | 1,750 | | | | 2,135 | |
| Reliance Holdings USA, Inc. | | | | | | | | | | | | |
| 6.25%, 10/19/2040 — 144A | | | | | | | 850 | | | | 844 | |
Venezuela — 4.1% | | | | | | | | | | | | |
| Petroleos de Venezuela SA | | | | | | | | | | | | |
| 8.50%, 11/02/2017 — Reg S | | | | | | | 17,240 | | | | 12,498 | |
| | | | | | | | | | | | |
Total Corporate Debt Securities (cost $82,928) | | | | | | | | | | | 84,817 | |
| | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES LENDING COLLATERAL — 11.5% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 35,765,333 | | | | 35,765 | |
Total Securities Lending Collateral (cost $35,765) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 10.6% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $32,788 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 04/01/2025, with a value of $33,447. | | $ | 32,788 | | | | 32,788 | |
Total Repurchase Agreement (cost $32,788) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $332,309) П | | | | | | | 345,657 | |
| Other Assets and Liabilities — Net | | | | | | | (35,280 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 310,377 | |
| | | | | | | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 108 | Annual Report 2011 |
Transamerica Morgan Stanley Emerging Markets Debt
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY: (unaudited) | | Total Investments | | | (000's) | |
| |
| Foreign Government Obligation | | | 55.6 | % | | $ | 192,287 | |
| Oil, Gas & Consumable Fuels | | | 13 .0 | | | | 44,881 | |
| Electric Utilities | | | 4 .0 | | | | 13,798 | |
| Commercial Banks | | | 2 .7 | | | | 9,248 | |
| Diversified Financial Services | | | 2 .2 | | | | 7,806 | |
| Wireless Telecommunication Services | | | 0 .9 | | | | 3,118 | |
| Construction & Engineering | | | 0 .9 | | | | 3,042 | |
| Construction Materials | | | 0 .6 | | | | 1,970 | |
| Gas Utilities | | | 0.3 | | | | 954 | |
| | | | | | | |
| Investment Securities, at Value | | | 80.2 | | | | 277,104 | |
| Short-Term Investments | | | 19 .8 | | | | 68,553 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 345,657 | |
| | | | | | | |
FUTURES CONTRACTS: g
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | Appreciation | |
| Description | | Type | | | Contracts Г | | | Expiration Date | | | (000’s) | |
| |
| 10-Year U.S. Treasury Note | | Long | | | 136 | | | | 12/20/2011 | | | $ | 37 | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $35,043. |
| |
| Џ | | In default. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $334,028. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $14,588 and $2,959, respectively. Net unrealized appreciation for tax purposes is $11,629. |
| |
| ┌ | | Contract amounts are not in thousands. |
| |
| g | | Cash in the amount of $313 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $51,798, or 16.69%, of the fund’s net assets. |
JSC | | Joint Stock Company |
OJSC | | Open Joint Stock Company |
| | | |
CURRENCY | | ABBREVIATIONS: |
| | | |
CLP | | Chilean Peso |
COP | | Columbian Peso |
MXN | | Mexican Peso |
MYR | | Malaysian Riggit |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 109 | Annual Report 2011 |
Transamerica Morgan Stanley Emerging Markets Debt
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Corporate Debt Securities | | $ | — | | | $ | 84,817 | | | $ | — | | | $ | 84,817 | |
| Foreign Government Obligations | | | — | | | | 192,287 | | | | — | | | | 192,287 | |
| Repurchase Agreement | | | — | | | | 32,788 | | | | — | | | | 32,788 | |
| Securities Lending Collateral | | | 35,765 | | | | — | | | | — | | | | 35,765 | |
| | | |
Total | | $ | 35,765 | | | $ | 309,892 | | | $ | — | | | $ | 345,657 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Futures Contracts — Appreciation | | $ | 37 | | | $ | — | | | $ | — | | | $ | 37 | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Appreciation/ | |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | (Depreciation) | |
| | | Beginning | | | | | | | | | | | Accrued | | | Total | | | Unrealized | | | Transfers | | | Transfers | | | Ending | | | on Investments | |
| | | Balance at | | | | | | | | | | | Discounts/ | | | Realized | | | Appreciation/ | | | into | | | out of | | | Balance at | | | Held at | |
| Securities | | 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | (Depreciation) ƒ | | | Level 3 | | | Level 3 | | | 10/31/2011 | | | 10/31/2011 ƒ | |
| |
| Corporate Debt Securities | | $ | 234 | | | $ | — | | | $ | (2,298 | ) | | $ | — | | | $ | (937 | ) | | $ | 3,001 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 110 | Annual Report 2011 |
Transamerica Morgan Stanley Mid-Cap Growth
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Shares | | | Value
(000’s) | |
| |
PREFERRED STOCKS — 1.6% | | | | | | | | |
Automobiles — 0.6% | | | | | | | | |
| Better Place ‡ Ә § Δ | | | 555,742 | | | $ | 1,667 | |
Internet Software & Services — 0.8% | | | | | | | | |
| Zynga — Series C ‡ Ә § Δ | | | 158,524 | | | | 2,224 | |
Software — 0.2% | | | | | | | | |
| Workday, Inc. ‡ Ә § Δ | | | 30,621 | | | | 406 | |
| | | | | | | |
Total Preferred Stocks (cost $4,297) | | | | | | | 4,297 | |
| | | | | | | | |
COMMON STOCKS — 97.3% | | | | | | | | |
Air Freight & Logistics — 3.4% | | | | | | | | |
| CH Robinson Worldwide, Inc. ^ | | | 49,484 | | | | 3,436 | |
| Expeditors International of Washington, Inc. | | | 126,415 | | | | 5,764 | |
Capital Markets — 0.6% | | | | | | | | |
| Greenhill & Co., Inc. ^ | | | 45,147 | | | | 1,706 | |
Chemicals — 2.8% | | | | | | | | |
| Intrepid Potash, Inc. ‡ ^ | | | 131,131 | | | | 3,649 | |
| Rockwood Holdings, Inc. ‡ | | | 86,515 | | | | 3,984 | |
Commercial Services & Supplies — 6.3% | | | | | | | | |
| Covanta Holding Corp. | | | 191,879 | | | | 2,813 | |
| Edenred | | | 355,940 | | | | 10,040 | |
| Stericycle, Inc. ‡ ^ | | | 48,455 | | | | 4,050 | |
Communications Equipment — 4.2% | | | | | | | | |
| Motorola Solutions, Inc. | | | 238,848 | | | | 11,204 | |
Construction Materials — 1.0% | | | | | | | | |
| Martin Marietta Materials, Inc. ^ | | | 37,369 | | | | 2,697 | |
Diversified Consumer Services — 3.2% | | | | | | | | |
| New Oriental Education & Technology | | | | | | | | |
| Group ADR ‡ | | | 111,231 | | | | 3,297 | |
| Weight Watchers International, Inc. ^ | | | 72,028 | | | | 5,375 | |
Diversified Financial Services — 5.5% | | | | | | | | |
| IntercontinentalExchange, Inc. ‡ | | | 30,514 | | | | 3,963 | |
| Leucadia National Corp. | | | 142,223 | | | | 3,816 | |
| MSCI, Inc. — Class A ‡ ^ | | | 213,202 | | | | 7,119 | |
Electric Utilities — 1.5% | | | | | | | | |
| Brookfield Infrastructure Partners, LP | | | 156,278 | | | | 3,921 | |
Electrical Equipment — 0.9% | | | | | | | | |
| First Solar, Inc. ‡ ^ | | | 47,696 | | | | 2,374 | |
Food & Staples Retailing — 1.1% | | | | | | | | |
| Sun Art Retail Group, Ltd. ‡ | | | 2,355,500 | | | | 3,050 | |
Food Products — 2.6% | | | | | | | | |
| Mead Johnson Nutrition Co. — Class A | | | 96,029 | | | | 6,900 | |
Health Care Equipment & Supplies — 6.5% | | | | | | | | |
| Gen-Probe, Inc. ‡ | | | 72,824 | | | | 4,377 | |
| IDEXX Laboratories, Inc. ‡ ^ | | | 54,882 | | | | 3,951 | |
| Intuitive Surgical, Inc. ‡ ^ | | | 21,306 | | | | 9,243 | |
Health Care Technology — 0.9% | | | | | | | | |
| Athenahealth, Inc. ‡ ^ | | | 45,333 | | | | 2,399 | |
Hotels, Restaurants & Leisure — 4.0% | | | | | | | | |
| Chipotle Mexican Grill, Inc. ‡ ^ | | | 11,045 | | | | 3,712 | |
| Ctrip.com International, Ltd. ADR ‡ ^ | | | 107,263 | | | | 3,739 | |
| Dunkin’ Brands Group, Inc. ‡ | | | 115,993 | | | | 3,377 | |
Internet & Catalog Retail — 2.8% | | | | | | | | |
| Groupon, Inc. ‡ Ә § Δ | | | 291,388 | | | | 4,458 | |
| NetFlix, Inc. ‡ ^ | | | 36,087 | | | | 2,962 | |
Internet Software & Services — 7.5% | | | | | | | | |
| Akamai Technologies, Inc. ‡ | | | 139,892 | | | | 3,769 | |
| Alibaba.com, Ltd. | | | 1,324,200 | | | | 1,555 | |
| LinkedIn Corp. — Class A ‡ ^ | | | 47,473 | | | | 4,268 | |
| Renren, Inc. ADR ‡ ^ | | | 199,495 | | | | 1,404 | |
| Yandex NV — Class A ‡ ^ | | | 222,257 | | | | 6,116 | |
| Youku.com, Inc. ADR ‡ ^ | | | 129,513 | | | | 2,751 | |
IT Services — 1.6% | | | | | | | | |
| Gartner, Inc. ‡ | | | 108,192 | | | | 4,168 | |
Life Sciences Tools & Services — 2.7% | | | | | | | | |
| Illumina, Inc. ‡ ^ | | | 123,643 | | | | 3,786 | |
| Techne Corp. | | | 49,719 | | | | 3,421 | |
Machinery — 1.7% | | | | | | | | |
| Schindler Holding AG | | | 38,439 | | | $ | 4,501 | |
Media — 1.5% | | | | | | | | |
| McGraw-Hill Cos., Inc. | | | 96,781 | | | | 4,113 | |
Metals & Mining — 2.0% | | | | | | | | |
| Lynas Corp., Ltd. ‡ ^ | | | 977,880 | | | | 1,210 | |
| Molycorp, Inc. ‡ ^ | | | 109,507 | | | | 4,191 | |
Multiline Retail — 1.7% | | | | | | | | |
| Dollar Tree, Inc. ‡ | | | 57,254 | | | | 4,578 | |
Oil, Gas & Consumable Fuels — 3.7% | | | | | | | | |
| Range Resources Corp. | | | 86,130 | | | | 5,929 | |
| Ultra Petroleum Corp. ‡ ^ | | | 125,290 | | | | 3,992 | |
Personal Products — 0.9% | | | | | | | | |
| Natura Cosmeticos SA | | | 122,759 | | | | 2,388 | |
Pharmaceuticals — 2.2% | | | | | | | | |
| Ironwood Pharmaceuticals, Inc. — Class A ‡ ^ | | | 143,985 | | | | 1,958 | |
| Valeant Pharmaceuticals International, Inc. | | | 98,919 | | | | 3,913 | |
Professional Services — 7.1% | | | | | | | | |
| IHS, Inc. — Class A ‡ | | | 49,009 | | | | 4,116 | |
| Intertek Group PLC | | | 146,872 | | | | 4,842 | |
| Qualicorp SA ‡ | | | 454,755 | | | | 4,159 | |
| Verisk Analytics, Inc. — Class A ‡ | | | 172,025 | | | | 6,047 | |
Semiconductors & Semiconductor Equipment — 2.0% | | | | | | | | |
| ARM Holdings PLC ADR ^ | | | 163,339 | | | | 4,588 | |
| NVIDIA Corp. ‡ | | | 58,059 | | | | 859 | |
Software — 9.8% | | | | | | | | |
| Citrix Systems, Inc. ‡ | | | 32,954 | | | | 2,400 | |
| FactSet Research Systems, Inc. ^ | | | 43,249 | | | | 4,300 | |
| Red Hat, Inc. ‡ | | | 149,125 | | | | 7,404 | |
| Salesforce.com, Inc. ‡ | | | 43,978 | | | | 5,857 | |
| Solera Holdings, Inc. | | | 113,907 | | | | 6,223 | |
Textiles, Apparel & Luxury Goods — 1.4% | | | | | | | | |
| Lululemon Athletica, Inc. ‡ ^ | | | 68,324 | | | | 3,859 | |
Trading Companies & Distributors — 3.0% | | | | | | | | |
| Fastenal Co. | | | 209,015 | | | | 7,961 | |
Wireless Telecommunication Services — 1.2% | | | | | | | | |
| Millicom International Cellular SA | | | 30,193 | | | | 3,330 | |
| | | | | | | |
Total Common Stocks (cost $212,862) | | | | | | | 261,332 | |
| | | | | | | | |
SECURITIES LENDING COLLATERAL — 19.5% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 52,437,133 | | | | 52,437 | |
Total Securities Lending Collateral (cost $52,437) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 1.0% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $2,796 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 08/01/2026, with a value of $2,854. | | $ | 2,796 | | | | 2,796 | |
Total Repurchase Agreement (cost $2,796) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $272,392) П | | | | | | | 320,862 | |
| Other Assets and Liabilities — Net | | | | | | | (52,202 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 268,660 | |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 111 | | Annual Report 2011 |
Transamerica Morgan Stanley Mid-Cap Growth
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| Ә | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. These securities had a total fair value of $8,755, or 3.26%, of the fund’s net assets. |
| |
| § | | Illiquid. These securities had an aggregate market value of $8,755, or 3.26%, of the fund’s net assets. |
| |
| Δ | | Restricted Security. At 10/31/2011, the fund owned the respective securities (representing 3.26% of the fund’s net assets) which were restricted as to public resale: |
| | | | | | | | | | | | | | | | | | | | | |
| Description | | Date of Acquisition | | | Shares | | | Cost | | | Market Value | | | Price | |
| |
Better Place | | | 01/25/2010 | | | | 555,742 | | | $ | 1,667 | | | $ | 1,667 | | | $ | 3.00 | |
Zynga — Series C | | | 02/18/2011 | | | | 158,524 | | | | 2,224 | | | | 2,224 | | | | 14.03 | |
Workday, Inc. | | | 10/12/2011 | | | | 30,621 | | | | 406 | | | | 406 | | | | 13.26 | |
Groupon, Inc. | | | 12/17/2010 | | | | 291,388 | | | | 2,301 | | | | 4,458 | | | | 15.30 | |
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $51,236. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| P | | Aggregate cost for federal income tax purposes is $272,953. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $62,584 and $14,675, respectively. Net unrealized appreciation for tax purposes is $47,909. |
DEFINITION:
| | |
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | Value at 10/31/2011 | |
| |
| Common Stocks | | $ | 219,197 | | | $ | 37,677 | | | $ | 4,458 | | | $ | 261,332 | |
| Preferred Stocks | | | — | | | | — | | | | 4,297 | | | | 4,297 | |
| Repurchase Agreement | | | — | | | | 2,796 | | | | — | | | | 2,796 | |
| Securities Lending Collateral | | | 52,437 | | | | — | | | | — | | | | 52,437 | |
| | | |
Total | | $ | 271,634 | | | $ | 40,473 | | | $ | 8,755 | | | $ | 320,862 | |
| | | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Appreciation/ | |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | (Depreciation) | |
| | | Beginning | | | | | | | | | | | Accrued | | | Total | | | Unrealized | | | Transfers | | | Transfers | | | | | | | on Investments | |
| | | Balance at | | | | | | | | | | | Discounts/ | | | Realized | | | Appreciation/ | | | into | | | out of | | | Ending Balance | | | Held at | |
| Securities | | 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | (Depreciation) ƒ | | | Level 3 | | | Level 3 | | | at 10/31/2011 | | | 10/31/2011 ƒ | |
| |
| Common Stocks | | $ | — | | | $ | 2,301 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,157 | | | $ | — | | | $ | — | | | $ | 4,458 | | | $ | 2,157 | |
| Preferred Stocks | | $ | 1,667 | | | | 2,630 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4,297 | | | | — | |
| | | |
Total | | $ | 1,667 | | | $ | 4,931 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,157 | | | $ | — | | | $ | — | | | $ | 8,755 | | | $ | 2,157 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 112 | | Annual Report 2011 |
Transamerica Morgan Stanley Small Company Growth
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Shares | | | Value
(000’s) | |
| |
PREFERRED STOCKS — 2.9% | | | | | | | | |
Automobiles — 0.5% | | | | | | | | |
| Better Place ‡ Ә § Δ | | | 289,277 | | | $ | 868 | |
Internet Software & Services — 2.1% | | | | | | | | |
| Twitter, Inc. — Series E ‡ Ә § Δ | | | 198,284 | | | | 3,191 | |
| Xoom, Inc. — Series F ‡ Ә § Δ | | | 264,130 | | | | 607 | |
IT Services — 0.1% | | | | | | | | |
| Ning, Inc. ‡ Ә § Δ | | | 108,208 | | | | 255 | |
Software — 0.2% | | | | | | | | |
| Workday, Inc. ‡ Ә § Δ | | | 20,219 | | | | 268 | |
| | | | | | | |
Total Preferred Stocks (cost $3,194) | | | | | | | 5,189 | |
| | | | | | | | |
COMMON STOCKS — 95.2% | | | | | | | | |
Biotechnology — 1.0% | | | | | | | | |
| Abcam PLC | | | 298,536 | | | | 1,775 | |
Capital Markets — 4.1% | | | | | | | | |
| CETIP SA — Balcao Organizado de Ativos e | | | | | | | | |
| Derivativos | | | 98,296 | | | | 1,357 | |
| Financial Engines, Inc. ‡ ^ | | | 127,331 | | | | 2,892 | |
| Greenhill & Co., Inc. ^ | | | 79,548 | | | | 3,005 | |
Chemicals — 4.4% | | | | | | | | |
| Intrepid Potash, Inc. ‡ ^ | | | 94,984 | | | | 2,643 | |
| Rockwood Holdings, Inc. ‡ | | | 111,409 | | | | 5,130 | |
Commercial Services & Supplies — 1.5% | | | | | | | | |
| Covanta Holding Corp. | | | 177,998 | | | | 2,609 | |
Construction Materials — 1.3% | | | | | | | | |
| Eagle Materials, Inc. ^ | | | 110,056 | | | | 2,265 | |
Diversified Financial Services — 0.4% | | | | | | | | |
| PICO Holdings, Inc. ‡ ^ | | | 32,170 | | | | 735 | |
Diversified Telecommunication Services — 1.5% | | | | | | | | |
| Cogent Communications Group, Inc. ‡ ^ | | | 171,536 | | | | 2,753 | |
Electric Utilities — 4.7% | | | | | | | | |
| Brookfield Infrastructure Partners, LP | | | 332,851 | | | | 8,351 | |
| Prime AET&D Holdings No. 1 Pty, Ltd. ‡ Ә § Δ | | | 737,572 | | | | ♦ | |
Health Care Equipment & Supplies — 2.9% | | | | | | | | |
| Gen-Probe, Inc. ‡ | | | 70,087 | | | | 4,213 | |
| Zeltiq Aesthetics, Inc. ‡ ^ | | | 61,286 | | | | 873 | |
Health Care Providers & Services — 4.2% | | | | | | | | |
| Accretive Health, Inc. ‡ ^ | | | 110,009 | | | | 2,619 | |
| Castlight Health, Inc. ‡ Ә § Δ | | | 193,841 | | | | 797 | |
| HMS Holdings Corp. ‡ ^ | | | 152,463 | | | | 3,727 | |
| LCA-Vision, Inc. ‡ ^ | | | 86,498 | | | | 279 | |
Health Care Technology — 3.3% | | | | | | | | |
| Athenahealth, Inc. ‡ ^ | | | 109,878 | | | | 5,814 | |
Hotels, Restaurants & Leisure — 7.1% | | | | | | | | |
| Country Style Cooking Restaurant Chain Co., Ltd. ADR ‡ ^ | | | 95,634 | | | | 1,311 | |
| Dunkin’ Brands Group, Inc. ‡ ^ | | | 97,803 | | | | 2,847 | |
| PF Chang’s China Bistro, Inc. ^ | | | 121,490 | | | | 3,778 | |
| Vail Resorts, Inc. ^ | | | 106,488 | | | | 4,746 | |
Household Durables — 2.6% | | | | | | | | |
| Brookfield Incorporacoes SA | | | 559,713 | | | | 2,152 | |
| iRobot Corp. ‡ ^ | | | 72,274 | | | | 2,447 | |
Insurance — 2.0% | | | | | | | | |
| Greenlight Capital Re, Ltd. — Class A ‡ ^ | | | 160,121 | | | | 3,608 | |
Internet & Catalog Retail — 7.1% | | | | | | | | |
| Blue Nile, Inc. ‡ ^ | | | 110,438 | | | | 4,984 | |
| MakeMyTrip, Ltd. ‡ ^ | | | 126,827 | | | | 3,806 | |
| Ocado Group PLC ‡ ^ | | | 1,052,873 | | | | 1,578 | |
| Shutterfly, Inc. ‡ ^ | | | 56,397 | | | | 2,350 | |
Internet Software & Services — 8.5% | | | | | | | | |
| Bankrate, Inc. ‡ | | | 167,618 | | | | 3,264 | |
| Mercadolibre, Inc. ^ | | | 54,066 | | | | 3,525 | |
| Opentable, Inc. ‡ ^ | | | 51,933 | | | | 2,278 | |
| Sohu.com, Inc. ‡ ^ | | | 25,800 | | | | 1,558 | |
| VistaPrint NV ‡ ^ | | | 60,506 | | | | 2,113 | |
| Youku.com, Inc. ADR ‡ ^ | | | 88,609 | | | | 1,882 | |
| Youku.com, Inc. — Class A ‡ Ә § Δ | | | 10 | | | | ♦ | |
| Zillow, Inc. — Class A ‡ ^ | | | 19,383 | | | | 575 | |
Leisure Equipment & Products — 1.3% | | | | | | | | |
| Universal Entertainment Corp. | | | 90,400 | | | | 2,354 | |
Life Sciences Tools & Services — 3.7% | | | | | | | | |
| Techne Corp. ^ | | | 96,468 | | | | 6,637 | |
Media — 2.9% | | | | | | | | |
| Lakes Entertainment, Inc. ‡ ^ | | | 61,344 | | | | 129 | |
| Lamar Advertising Co. — Class A ‡ ^ | | | 138,742 | | | | 3,120 | |
| Pandora Media, Inc. ‡ ^ | | | 126,444 | | | | 1,998 | |
Metals & Mining — 3.3% | | | | | | | | |
| Lynas Corp., Ltd. ‡ ^ | | | 4,745,353 | | | | 5,872 | |
Multiline Retail — 1.6% | | | | | | | | |
| PriceSmart, Inc. ^ | | | 37,986 | | | | 2,888 | |
Oil, Gas & Consumable Fuels — 4.6% | | | | | | | | |
| Brigham Exploration Co. ‡ | | | 155,136 | | | | 5,649 | |
| Oasis Petroleum, Inc. ‡ ^ | | | 88,208 | | | | 2,588 | |
Pharmaceuticals — 1.3% | | | | | | | | |
| Ironwood Pharmaceuticals, Inc. — Class A ‡ ^ | | | 172,968 | | | | 2,352 | |
Professional Services — 9.8% | | | | | | | | |
| Advisory Board Co. ‡ ^ | | | 114,806 | | | | 7,032 | |
| Corporate Executive Board Co. ^ | | | 117,999 | | | | 4,318 | |
| CoStar Group, Inc. ‡ ^ | | | 98,603 | | | | 6,067 | |
Real Estate Management & Development — 0.2% | | | | | | | | |
| Consolidated-Tomoka Land Co. ^ | | | 14,417 | | | | 432 | |
Semiconductors & Semiconductor Equipment — 1.3% | | | | | | | | |
| Tessera Technologies, Inc. ‡ ^ | | | 174,173 | | | | 2,398 | |
Software — 6.4% | | | | | | | | |
| Netsuite, Inc. ‡ ^ | | | 138,052 | | | | 5,251 | |
| Solera Holdings, Inc. | | | 114,296 | | | | 6,244 | |
Specialty Retail — 0.6% | | | | | | | | |
| Citi Trends, Inc. ‡ ^ | | | 88,421 | | | | 1,096 | |
Transportation Infrastructure — 1.6% | | | | | | | | |
| LLX Logistica SA ‡ | | | 1,251,435 | | | | 2,784 | |
| | | | | | | |
Total Common Stocks (cost $139,611) | | | | | | | 169,848 | |
| | | | | | | | |
SECURITIES LENDING COLLATERAL — 25.4% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 45,268,409 | | | | 45,268 | |
Total Securities Lending Collateral (cost $45,268) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 1.9% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $3,431 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 05/01/2025, with a value of $3,503. | | $ | 3,431 | | | | 3,431 | |
Total Repurchase Agreement (cost $3,431) | | | | | | | | |
| |
| | | | | | | | |
| Total Investment Securities (cost $191,504) П | | | | | | | 223,736 | |
| Other Assets and Liabilities — Net | | | | | | | (45,319 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 178,417 | |
| | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 113 | | Annual Report 2011 |
Transamerica Morgan Stanley Small Company Growth
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts except share amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| Ә | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of $5,986, or 3.36% of the fund’s net assets. |
| |
| Π | | Illiquid. These securities had an aggregate market value of $5,986, or 3.36%, of the fund’s net assets. |
| |
| Δ | | Restricted Security. At 10/31/2011, the fund owned the respective securities (representing 3.36% of the fund’s net assets) which were restricted as to public resale: |
| | | | | | | | | | | | | | | | | | | |
| Description | | Date of Acquisition | | Shares | | Cost | | Market Value | | Price |
| |
Better Place | | 01/25/2010 | | | 289,277 | | | $ | 868 | | | $ | 868 | | | $ | 3.00 | |
Twitter, Inc. | | 09/24/2009 | | | 198,284 | | | | 528 | | | | 3,191 | | | | 16.09 | |
Xoom, Inc. | | 02/23/2010 | | | 264,130 | | | | 756 | | | | 607 | | | | 2.30 | |
Ning, Inc. | | 03/19/2008 | | | 108,208 | | | | 774 | | | | 255 | | | | 2.36 | |
Workday, Inc. | | 10/12/2011 | | | 20,219 | | | | 268 | | | | 268 | | | | 13.26 | |
Prime AET&D Holdings No. 1 Pty, Ltd. | | 10/13/2010 | | | 737,572 | | | | ♦ | | | | ♦ | | | | 0.00 | |
Castlight Health, Inc. | | 06/04/2010 | | | 193,841 | | | | 797 | | | | 797 | | | | 4.11 | |
Youku.com, Inc. — Class A | | 09/16/2010 | | | 10 | | | | ♦ | | | | ♦ | | | | 1.18 | |
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $44,106. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $193,198. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $42,419 and $11,881, respectively. Net unrealized appreciation for tax purposes is $30,538. |
DEFINITION:
| | |
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 151,553 | | | $ | 17,498 | | | $ | 797 | | | $ | 169,848 | |
| | | |
| Preferred Stocks | | | — | | | | — | | | | 5,189 | | | | 5,189 | |
| | | |
| Repurchase Agreement | | | — | | | | 3,431 | | | | — | | | | 3,431 | |
| | | |
| Securities Lending Collateral | | | 45,268 | | | | — | | | | — | | | | 45,268 | |
| | | |
Total | | $ | 196,821 | | | $ | 20,929 | | | $ | 5,986 | | | $ | 223,736 | |
| | | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Appreciation/ | |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | (Depreciation) | |
| | | Beginning | | | | | | | | | | | Accrued | | | Total | | | Unrealized | | | Transfers | | | Transfers out | | | Ending | | | on Investments | |
| | | Balance at | | | | | | | | | | | Discounts/ | | | Realized | | | Appreciation/ | | | into | | | of | | | Balance at | | | Held at | |
| Securities | | 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | (Depreciation) ƒ | | | Level 3 | | | Level 3 | | | 10/31/2011 | | | 10/31/2011 ƒ | |
| |
| Common Stocks | | $ | 797 | | | $ | 852 | | | $ | (852 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 797 | | | $ | — | |
| | | |
| Convertible Preferred Stocks | | | 852 | | | | — | | | | (852 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| Preferred Stocks | | | 3,166 | | | | 268 | | | | (1,235 | ) | | | — | | | | 658 | | | | 2,332 | | | | — | | | | — | | | | 5,189 | | | | 2,367 | |
| | | |
Total | | $ | 4,815 | | | $ | 1,120 | | | $ | (2,939 | ) | | $ | — | | | $ | 658 | | | $ | 2,332 | | | $ | — | | | $ | — | | | $ | 5,986 | | | $ | 2,367 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 114 | | Annual Report 2011 |
Transamerica Neuberger Berman International
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Shares | | | Value
(000’s) | |
| |
COMMON STOCKS — 95.9% | | | | | | | | |
Australia — 1.5% | | | | | | | | |
| CSL, Ltd. | | | 124,020 | | | $ | 3,735 | |
| Imdex, Ltd. ^ | | | 888,615 | | | | 1,940 | |
Austria — 0.6% | | | | | | | | |
| Vienna Insurance Group AG Wiener | | | | | | | | |
| Versicherung Gruppe | | | 50,652 | | | | 2,124 | |
Belgium — 2.1% | | | | | | | | |
| Anheuser-Busch InBev NV | | | 40,935 | | | | 2,270 | |
| Anheuser-Busch InBev NV — STRIP VVPR ‡ | | | 130,726 | | | | ♦ | |
| Colruyt SA | | | 86,580 | | | | 3,557 | |
| Telenet Group Holding NV ‡ | | | 45,089 | | | | 1,739 | |
Brazil — 0.4% | | | | | | | | |
| HRT Participacoes em Petroleo SA ‡ | | | 3,100 | | | | 1,546 | |
Canada — 10.5% | | | | | | | | |
| Cenovus Energy, Inc. | | | 57,794 | | | | 1,980 | |
| Corus Entertainment, Inc. — Class B | | | 204,760 | | | | 3,922 | |
| Goldcorp, Inc. | | | 103,900 | | | | 5,056 | |
| MacDonald Dettwiler & Associates, Ltd. | | | 73,715 | | | | 3,314 | |
| Neo Material Technologies, Inc. ‡ | | | 388,600 | | | | 3,006 | |
| New Gold, Inc. ‡ | | | 390,700 | | | | 4,841 | |
| Peyto Exploration & Development Corp. ^ | | | 184,800 | | | | 4,032 | |
| Potash Corp., of Saskatchewan, Inc. | | | 93,158 | | | | 4,410 | |
| Silver Wheaton Corp. ^ | | | 119,300 | | | | 4,120 | |
| Vermilion Energy, Inc. ^ | | | 66,100 | | | | 3,114 | |
Cayman Islands — 0.6% | | | | | | | | |
| China Liansu Group Holdings, Ltd. | | | 3,935,900 | | | | 2,118 | |
Chile — 1.2% | | | | | | | | |
| Sociedad Quimica y Minera de Chile SA ADR | | | 72,485 | | | | 4,240 | |
Cyprus — 1.0% | | | | | | | | |
| ProSafe SE ^ | | | 469,205 | | | | 3,547 | |
Denmark — 3.0% | | | | | | | | |
| Novo Nordisk A/S — Class B | | | 36,222 | | | | 3,846 | |
| Sydbank A/S | | | 163,950 | | | | 3,036 | |
| Tryg A/S | | | 69,260 | | | | 3,851 | |
France — 6.1% | | | | | | | | |
| Alcatel-Lucent ‡ ^ | | | 1,096,361 | | | | 3,031 | |
| CFAO SA ^ § | | | 108,121 | | | | 4,177 | |
| Eutelsat Communications SA | | | 106,569 | | | | 4,389 | |
| LVMH Moet Hennessy Louis Vuitton SA | | | 20,685 | | | | 3,428 | |
| Sodexo | | | 96,340 | | | | 6,956 | |
Germany — 7.0% | | | | | | | | |
| Brenntag AG | | | 51,090 | | | | 5,140 | |
| Deutsche Boerse AG ‡ | | | 102,355 | | | | 5,641 | |
| Deutsche Telekom AG | | | 262,570 | | | | 3,335 | |
| Fresenius Medical Care AG & Co., KGaA | | | 82,091 | | | | 5,980 | |
| Linde AG | | | 33,224 | | | | 5,264 | |
Hong Kong — 0.9% | | | | | | | | |
| China Mobile, Ltd. ADR ^ | | | 68,865 | | | | 3,275 | |
Ireland — 2.2% | | | | | | | | |
| DCC PLC | | | 94,056 | | | | 2,602 | |
| Willis Group Holdings PLC ^ | | | 150,900 | | | | 5,479 | |
Japan — 11.7% | | | | | | | | |
| Bridgestone Corp. | | | 75,900 | | | | 1,780 | |
| Brother Industries, Ltd. ^ | | | 285,600 | | | | 3,727 | |
| Circle K Sunkus Co., Ltd. | | | 257,100 | | | | 4,192 | |
| Jupiter Telecommunications Co., Ltd. § | | | 7,346 | | | | 7,169 | |
| Kansai Paint Co., Ltd. | | | 200,600 | | | | 1,883 | |
| KDDI Corp. | | | 649 | | | | 4,754 | |
| Kenedix Realty Investment Corp. REIT ^ | | | 1,046 | | | | 3,033 | |
| Makita Corp. | | | 74,800 | | | | 2,793 | |
| Nihon Kohden Corp. | | | 192,700 | | | | 4,499 | |
| NTT DoCoMo, Inc. | | | 1,425 | | | | 2,531 | |
| Sundrug Co., Ltd. ^ | | | 176,000 | | | | 5,194 | |
Jersey, Channel Islands — 2.7% | | | | | | | | |
| Experian Group, Ltd. | | | 331,779 | | | | 4,310 | |
| Informa PLC | | | 432,977 | | | | 2,514 | |
| Petrofac, Ltd. | | | 128,480 | | | | 2,951 | |
Korea, Republic of — 3.7% | | | | | | | | |
| Hyundai Mobis | | | 20,251 | | | | 5,795 | |
| Samsung Electronics Co., Ltd. | | | 4,066 | | | | 3,500 | |
| Shinhan Financial Group Co., Ltd. | | | 94,285 | | | | 3,756 | |
Luxembourg — 1.1% | | | | | | | | |
| Subsea 7 SA ‡ ^ | | | 180,943 | | | | 3,902 | |
Netherlands — 7.3% | | | | | | | | |
| Akzo Nobel NV | | | 59,170 | | | | 3,111 | |
| Imtech NV ^ | | | 139,350 | | | | 4,117 | |
| Koninklijke Ahold NV | | | 333,888 | | | | 4,266 | |
| Nutreco NV | | | 82,667 | | | | 5,492 | |
| Sligro Food Group NV § | | | 108,373 | | | | 3,547 | |
| Unilever NV | | | 169,985 | | | | 5,869 | |
Norway — 1.0% | | | | | | | | |
| DnB NOR ASA ‡ | | | 305,880 | | | | 3,538 | |
Russian Federation — 0.5% | | | | | | | | |
| Novatek OAO GDR | | | 12,200 | | | | 1,713 | |
South Africa — 1.1% | | | | | | | | |
| MTN Group, Ltd. | | | 224,320 | | | | 3,899 | |
Sweden — 2.6% | | | | | | | | |
| Elekta AB — Class B ^ | | | 101,495 | | | | 4,053 | |
| Nordea Bank AB | | | 197,250 | | | | 1,791 | |
| Telefonaktiebolaget LM Ericsson — Class B | | | 335,025 | | | | 3,492 | |
Switzerland — 11.1% | | | | | | | | |
| Bucher Industries AG | | | 19,957 | | | | 3,445 | |
| Credit Suisse Group AG ‡ | | | 136,748 | | | | 3,944 | |
| Givaudan SA ‡ | | | 5,144 | | | | 4,679 | |
| Nestle SA | | | 73,658 | | | | 4,260 | |
| Novartis AG | | | 73,836 | | | | 4,160 | |
| Roche Holding AG | | | 32,060 | | | | 5,259 | |
| SGS SA | | | 3,104 | | | | 5,325 | |
| Sika AG | | | 1,409 | | | | 2,761 | |
| Sulzer AG | | | 52,081 | | | | 6,070 | |
Turkey — 0.5% | | | | | | | | |
| Sinpas Gayrimenkul Yatirim Ortakligi AS REIT | | | 2,623,533 | | | | 1,870 | |
United Kingdom — 15.5% | | | | | | | | |
| Amlin PLC | | | 796,141 | | | | 3,672 | |
| Avanti Communications Group PLC ‡ ^ | | | 205,040 | | | | 1,021 | |
| BG Group PLC | | | 211,305 | | | | 4,581 | |
| BHP Billiton PLC | | | 86,615 | | | | 2,727 | |
| Bunzl PLC | | | 335,667 | | | | 4,342 | |
| Chemring Group PLC | | | 682,855 | | | | 5,587 | |
| Diploma PLC | | | 355,655 | | | | 1,835 | |
| Fidessa Group PLC | | | 77,312 | | | | 2,018 | |
| Jazztel PLC ‡ | | | 64,001 | | | | 368 | |
| Mitie Group PLC | | | 1,176,337 | | | | 4,747 | |
| Reed Elsevier PLC | | | 440,395 | | | | 3,770 | |
| Rio Tinto PLC ADR ^ | | | 54,900 | | | | 2,968 | |
| RPS Group PLC § | | | 907,338 | | | | 2,628 | |
| Synergy Health PLC § | | | 225,367 | | | | 3,013 | |
| Tullow Oil PLC | | | 178,597 | | | | 4,013 | |
| Vodafone Group PLC | | | 3,149,484 | | | | 8,746 | |
| | | | | | | |
Total Common Stocks (cost $297,926) | | | | | | | 345,021 | |
| | | | | | | | |
| |
SECURITIES LENDING COLLATERAL — 9.9% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 35,679,099 | | | | 35,679 | |
Total Securities Lending Collateral (cost $35,679) | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 115 | | Annual Report 2011 |
Transamerica Neuberger Berman International
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 4.5% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $16,153 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 4.00%, due 04/01/2025 - 05/01/2025, with a total value of $16,479. | | $ | 16,153 | | | $ | 16,153 | |
Total Repurchase Agreement (cost $16,153) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $349,758) Π | | | | | | | 396,853 | |
| Other Assets and Liabilities — Net | | | | | | | (37,207 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 359,646 | |
| | | | | | | | |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Chemicals | | | 7.4 | % | | $ | 29,354 | |
| Wireless Telecommunication Services | | | 5 .8 | | | | 23,205 | |
| Media | | | 5 .5 | | | | 21,764 | |
| Metals & Mining | | | 5 .5 | | | | 21,652 | |
| Oil, Gas & Consumable Fuels | | | 5 .3 | | | | 20,979 | |
| Food & Staples Retailing | | | 4 .2 | | | | 16,564 | |
| Food Products | | | 3 .9 | | | | 15,621 | |
| Insurance | | | 3 .8 | | | | 15,126 | |
| Pharmaceuticals | | | 3 .3 | | | | 13,265 | |
| Commercial Banks | | | 3 .1 | | | | 12,121 | |
| Auto Components | | | 3 .0 | | | | 11,752 | |
| Energy Equipment & Services | | | 2 .6 | | | | 10,400 | |
| Professional Services | | | 2 .4 | | | | 9,635 | |
| Machinery | | | 2 .4 | | | | 9,515 | |
| Trading Companies & Distributors | | | 2 .4 | | | | 9,482 | |
| Health Care Providers & Services | | | 2 .3 | | | | 8,993 | |
| Health Care Equipment & Supplies | | | 2 .2 | | | | 8,552 | |
| Commercial Services & Supplies | | | 1 .9 | | | | 7,375 | |
| Hotels, Restaurants & Leisure | | | 1 .7 | | | | 6,956 | |
| Communications Equipment | | | 1 .6 | | | | 6,523 | |
| Diversified Telecommunication Services | | | 1 .6 | | | | 6,463 | |
| Diversified Financial Services | | | 1 .4 | | | | 5,641 | |
| Aerospace & Defense | | | 1 .4 | | | | 5,587 | |
| Software | | | 1 .3 | | | | 5,332 | |
| Real Estate Investment Trusts | | | 1 .2 | | | | 4,903 | |
| Multiline Retail | | | 1 .1 | | | | 4,192 | |
| Construction & Engineering | | | 1 .0 | | | | 4,117 | |
| Capital Markets | | | 1 .0 | | | | 3,944 | |
| Biotechnology | | | 0 .9 | | | | 3,735 | |
| Office Electronics | | | 0 .9 | | | | 3,727 | |
| Semiconductors & Semiconductor Equipment | | | 0 .9 | | | | 3,500 | |
| Textiles, Apparel & Luxury Goods | | | 0 .9 | | | | 3,428 | |
| Household Durables | | | 0 .7 | | | | 2,793 | |
| Industrial Conglomerates | | | 0 .7 | | | | 2,602 | |
| Beverages | | | 0 .6 | | | | 2,270 | |
| Building Products | | | 0 .5 | | | | 2,118 | |
| Electronic Equipment & Instruments | | | 0.5 | | | | 1,835 | |
| | | | | | | |
| Investment Securities, at Value | | | 86.9 | | | | 345,021 | |
| Short-Term Investments | | | 13 .1 | | | | 51,832 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 396,853 | |
| | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 116 | | Annual Report 2011 |
Transamerica Neuberger Berman International
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amount in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $34,143. |
| |
| ‡ | | Non-income producing security. |
| |
| § | | Illiquid. These securities had an aggregate market value of $20,534, or 5.71%, of the fund’s net assets. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $353,158. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $57,828 and $14,133, respectively. Net unrealized appreciation for tax purposes is $43,695. |
DEFINITIONS:
| | | |
|
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| OAO | | Otkrytoe Aktsionernoe Obshchestvo (Russian: Open Joint Stock Corporation) |
| REIT | | Real Estate Investment Trust (includes domestic REITs and Foreign Real Estate Investment Companies) |
| STRIP VVPR | | Is a coupon which, if presented along with the corresponding coupon of the share, allows to benefit from a reduced withholding tax of 15% |
| | | (rather than 25%) on the dividends paid by the company. |
VALUATION SUMMARY (all amounts in thousands): э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 45,699 | | | $ | 299,322 | | | $ | — | | | $ | 345,021 | |
| | | |
| Repurchase Agreement | | | — | | | | 16,153 | | | | — | | | | 16,153 | |
| | | |
| Securities Lending Collateral | | | 35,679 | | | | — | | | | — | | | | 35,679 | |
| | | |
Total | | $ | 81,378 | | | $ | 315,475 | | | $ | — | | | $ | 396,853 | |
| | | |
| | |
| э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 117 | | Annual Report 2011 |
Transamerica Oppenheimer Developing Markets
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCKS — 1.3% | | | | | | | | |
Brazil — 1.2% | | | | | | | | |
| Lojas Americanas SA , 0.68% ▲ | | | 652,278 | | | $ | 5,737 | |
Colombia — 0.1% | | | | | | | | |
| Banco Davivienda SA , 2.86% ▲ | | | 49,308 | | | | 534 | |
| | | | | | | |
Total Preferred Stocks (cost $4,616) | | | | | | | 6,271 | |
| | | | | | | | |
| |
COMMON STOCKS — 96.7% | | | | | | | | |
Bermuda — 0.9% | | | | | | | | |
| Credicorp, Ltd. | | | 25,130 | | | | 2,734 | |
| Dairy Farm International Holdings, Ltd. | | | 194,542 | | | | 1,576 | |
Brazil — 13.3% | | | | | | | | |
| Anhanguera Educacional Participacoes SA | | | 98,000 | | | | 1,441 | |
| B2W Cia Global Do Varejo | | | 355,116 | | | | 2,885 | |
| BM&FBOVESPA SA | | | 1,759,046 | | | | 10,502 | |
| Cia Brasileira de Distribuicao Grupo Pao de Acucar — Class A ADR ^ | | | 202,500 | | | | 7,936 | |
| Cia de Bebidas das Americas ADR ^ | | | 199,400 | | | | 6,724 | |
| Diagnosticos da America SA ‡ | | | 215,300 | | | | 1,712 | |
| Embraer SA ADR ‡ ^ | | | 202,930 | | | | 5,646 | |
| Estacio Participacoes SA | | | 255,400 | | | | 2,981 | |
| Kroton Educacional SA ‡ | | | 102,900 | | | | 1,151 | |
| Lojas Americanas SA | | | 2,430 | | | | 19 | |
| Multiplan Empreendimentos Imobiliarios SA | | | 123,500 | | | | 2,498 | |
| Natura Cosmeticos SA | | | 258,400 | | | | 5,027 | |
| Petroleo Brasileiro SA — Class A ADR | | | 431,100 | | | | 10,903 | |
| Totvs SA | | | 32,600 | | | | 541 | |
| Vale SA — Class B ADR ^ | | | 261,370 | | | | 6,168 | |
Cayman Islands — 8.3% | | | | | | | | |
| Ambow Education Holding, Ltd. ADR ‡ ^ | | | 76,490 | | | | 512 | |
| Baidu, Inc. ADR ‡ | | | 51,720 | | | | 7,250 | |
| Ctrip.com International, Ltd. ADR ‡ ^ | | | 141,690 | | | | 4,940 | |
| Eurasia Drilling Co., Ltd. — 144A GDR Ə | | | 4,400 | | | | 104 | |
| Eurasia Drilling Co., Ltd. GDR | | | 123,870 | | | | 2,911 | |
| Home Inns & Hotels Management, Inc. ADR ‡ ^ | | | 72,200 | | | | 2,466 | |
| Li Ning Co., Ltd. | | | 1,573,500 | | | | 1,490 | |
| Netease.com ADR ‡ ^ | | | 37,350 | | | | 1,769 | |
| New Oriental Education & Technology | | | | | | | | |
| Group ADR ‡ | | | 41,690 | | | | 1,236 | |
| Tencent Holdings, Ltd. | | | 322,800 | | | | 7,429 | |
| Tingyi Cayman Islands Holding Corp. | | | 2,223,000 | | | | 6,309 | |
| Want Want China Holdings, Ltd. | | | 5,308,000 | | | | 4,894 | |
Chile — 0.8% | | | | | | | | |
| Banco Santander Chile | | | 22,354,861 | | | | 1,729 | |
| Cencosud SA | | | 329,377 | | | | 2,104 | |
China — 1.5% | | | | | | | | |
| China Shenhua Energy Co., Ltd. — Class H | | | 1,310,500 | | | | 5,995 | |
| Shanghai Zhenhua Heavy Industries Co., Ltd. ‡ | | | 1,229,770 | | | | 636 | |
| Wumart Stores, Inc. | | | 498,000 | | | | 1,000 | |
Colombia — 1.3% | | | | | | | | |
| Almacenes Exito SA | | | 223,861 | | | | 2,879 | |
| Almacenes Exito SA — 144A GDR | | | 67,000 | | | | 862 | |
| BanColombia SA ADR ^ | | | 44,160 | | | | 2,755 | |
Denmark — 1.8% | | | | | | | | |
| Carlsberg AS — Class B | | | 130,679 | | | | 8,847 | |
Egypt — 0.8% | | | | | | | | |
| Commercial International Bank Egypt SAE | | | 521,004 | | | | 2,313 | |
| Eastern Co. § | | | 39,982 | | | | 632 | |
| Egyptian Financial Group-Hermes Holding | | | 530,967 | | | | 1,141 | |
| Medinet Nasr Housing | | | 28,563 | | | | 62 | |
France — 1.7% | | | | | | | | |
| Casino Guichard Perrachon SA | | | 32,830 | | | | 3,074 | |
| CFAO SA | | | 91,132 | | | | 3,520 | |
| Vallourec SA | | | 27,230 | | | | 1,651 | |
Hong Kong — 4.7% | | | | | | | | |
| AIA Group, Ltd. | | | 1,656,600 | | | | 5,065 | |
| CNOOC, Ltd. | | | 3,424,000 | | | | 6,473 | |
| Hang Lung Group, Ltd. | | | 451,750 | | | | 2,737 | |
| Hang Lung Properties, Ltd. | | | 1,166,549 | | | | 4,226 | |
| Hong Kong Exchanges & Clearing, Ltd. | | | 281,300 | | | | 4,758 | |
| Sun Art Retail Group, Ltd. ‡ | | | 48,000 | | | | 62 | |
India — 14.1% | | | | | | | | |
| Asian Paints, Ltd. | | | 30,567 | | | | 1,980 | |
| Cipla, Ltd. | | | 301,432 | | | | 1,821 | |
| Colgate-Palmolive India, Ltd. | | | 164,749 | | | | 3,364 | |
| Dabur India, Ltd. | | | 723,222 | | | | 1,500 | |
| HDFC Bank, Ltd. ADR ^ | | | 180,340 | | | | 5,710 | |
| Hindustan Unilever, Ltd. | | | 816,824 | | | | 6,267 | |
| Housing Development Finance Corp. | | | 682,861 | | | | 9,601 | |
| ICICI Bank, Ltd. ADR | | | 118,450 | | | | 4,402 | |
| Infosys, Ltd. | | | 322,786 | | | | 18,847 | |
| Marico, Ltd. | | | 724,446 | | | | 2,272 | |
| Sun Pharmaceuticals Industries, Ltd. | | | 388,943 | | | | 4,013 | |
| Tata Consultancy Services, Ltd. | | | 260,469 | | | | 5,930 | |
| TV18 Broadcast, Ltd. ‡ | | | 322,898 | | | | 301 | |
| Zee Entertainment Enterprises, Ltd. | | | 1,779,904 | | | | 4,373 | |
| Zee Learn, Ltd. ‡ | | | 178,613 | | | | 70 | |
Indonesia — 1.8% | | | | | | | | |
| Astra International PT | | | 654,600 | | | | 5,046 | |
| Bank Central Asia PT | | | 567,400 | | | | 515 | |
| Kalbe Farma PT | | | 2,313,500 | | | | 901 | |
| Unilever Indonesia PT | | | 1,550,000 | | | | 2,725 | |
Isle of Man — 0.4% | | | | | | | | |
| Genting Singapore PLC ‡ ^ | | | 1,530,000 | | | | 2,091 | |
Korea, Republic of — 6.0% | | | | | | | | |
| E-Mart Co., Ltd. ‡ | | | 29,704 | | | | 7,760 | |
| MegaStudy Co., Ltd. | | | 11,735 | | | | 1,298 | |
| NHN Corp. ‡ | | | 85,779 | | | | 17,895 | |
| Shinsegae Co., Ltd. | | | 10,696 | | | | 2,690 | |
Luxembourg — 1.1% | | | | | | | | |
| Tenaris SA ADR ^ | | | 169,650 | | | | 5,397 | |
Malaysia — 0.2% | | | | | | | | |
| Genting Bhd | | | 314,200 | | | | 1,094 | |
Mexico — 11.4% | | | | | | | | |
| America Movil SAB de CV — Series L ADR | | | 836,480 | | | | 21,263 | |
| Fomento Economico Mexicano SAB de CV | | | 1,294,239 | | | | 8,685 | |
| Fomento Economico Mexicano SAB de CV ADR | | | 171,630 | | | | 11,509 | |
| Grupo Financiero Inbursa SA — Class O | | | 1,239,902 | | | | 2,660 | |
| Grupo Modelo SAB de CV — Series C | | | 228,609 | | | | 1,454 | |
| Grupo Televisa SAB ADR ^ | | | 236,060 | | | | 5,035 | |
| Wal-Mart de Mexico SAB de CV — Series V ^ | | | 2,330,159 | | | | 6,015 | |
Netherlands — 0.6% | | | | | | | | |
| Yandex NV — Class A ‡ ^ | | | 106,290 | | | | 2,925 | |
Philippines — 3.6% | | | | | | | | |
| Jollibee Foods Corp. | | | 1,324,100 | | | | 2,802 | |
| Philippine Long Distance Telephone Co. | | | 58,295 | | | | 3,252 | |
| SM Investments Corp. | | | 243,000 | | | | 3,147 | |
| SM Prime Holdings, Inc. | | | 28,302,170 | | | | 8,576 | |
Russian Federation — 4.4% | | | | | | | | |
| Magnit OJSC GDR | | | 109,370 | | | | 2,780 | |
| Magnit OJSC | | | 82,825 | | | | 5,733 | |
| NovaTek OAO — 144A GDR Ə | | | 24,900 | | | | 3,474 | |
| NovaTek OAO GDR | | | 71,800 | | | | 10,018 | |
South Africa — 4.6% | | | | | | | | |
| Anglo American Platinum, Ltd. ^ | | | 72,765 | | | | 5,240 | |
| Impala Platinum Holdings, Ltd. | | | 314,553 | | | | 7,223 | |
| JSE, Ltd. | | | 36,021 | | | | 318 | |
| MTN Group, Ltd. | | | 428,668 | | | | 7,451 | |
| Standard Bank Group, Ltd. ^ | | | 200,751 | | | | 2,465 | |
Taiwan — 5.0% | | | | | | | | |
| Epistar Corp. | | | 1,979,500 | | | | 3,665 | |
| High Tech Computer Corp. | | | 520,263 | | | | 11,692 | |
| Synnex Technology International Corp. | | | 1,636,801 | | | | 4,012 | |
| Taiwan Semiconductor Manufacturing Co., Ltd. | | | 2,261,459 | | | | 5,511 | |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 118 | Annual Report 2011 |
Transamerica Oppenheimer Developing Markets
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Thailand — 0.7% | | | | | | | | |
| Siam Commercial Bank PCL | | | 860,800 | | | $ | 3,289 | |
Turkey — 2.7% | | | | | | | | |
| Anadolu Efes Biracilik Ve Malt Sanayii AS | | | 61,571 | | | | 746 | |
| Bim Birlesik Magazalar AS | | | 79,154 | | | | 2,406 | |
| Enka Insaat ve Sanayi AS | | | 1,739,944 | | | | 4,482 | |
| Haci Omer Sabanci Holding AS | | | 1,755,641 | | | | 5,987 | |
United Kingdom — 4.9% | | | | | | | | |
| Anglo American PLC | | | 162,146 | | | | 5,944 | |
| BG Group PLC | | | 11,450 | | | | 248 | |
| Cairn Energy PLC ‡ | | | 842,669 | | | | 3,980 | |
| SABMiller PLC | | | 137,510 | | | | 5,008 | |
| Tullow Oil PLC | | | 418,830 | | | | 9,411 | |
Virgin Islands, British — 0.1% | | | | | | | | |
| Mail.ru Group, Ltd. GDR ‡ | | | 14,600 | | | | 499 | |
| | | | | | | | |
Total Common Stocks (cost $448,100) | | | | | | | 481,043 | |
| | | | | | | | |
| |
RIGHT — 0.0% ∞ | | | | | | | | |
Colombia — 0.0% ∞ | | | | | | | | |
| Banco Davivienda SA ‡ Ə | | | 13,896 | | | | ♦ | |
Total Right (cost $—) | | | | | | | | |
CONVERTIBLE BOND — 0.0% ∞ | | | | | | | | |
Brazil — 0.0% ∞ | | | | | | | | |
| Lojas Americanas SA | | | | | | | | |
| 13.15%, due 09/15/2017 Ə § | | | 13 | | | | 181 | |
Total Convertible Bond (cost $147) | | | | | | | | |
| |
SECURITIES LENDING COLLATERAL — 8.8% | | | | | | | | |
| State Street Navigator Securities Lending | | | | | | | | |
| Trust — Prime Portfolio, 0.23% ▲ | | | 43,839,917 | | | | 43,840 | |
Total Securities Lending Collateral (cost $43,840) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 1.8% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $8,875 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 11/25/2038, with a value of $9,055. | | $ | 8,875 | | | | 8,875 | |
Total Repurchase Agreement (cost $8,875) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $505,578) Π | | | | | | | 540,210 | |
| Other Assets and Liabilities — Net | | | | | | | (42,554 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 497,656 | |
| | | | | | | | |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Oil, Gas & Consumable Fuels | | | 9.4 | % | | $ | 50,605 | |
| Food & Staples Retailing | | | 8.7 | | | | 46,877 | |
| Beverages | | | 8.0 | | | | 42,972 | |
| Internet Software & Services | | | 7.0 | | | | 37,768 | |
| Wireless Telecommunication Services | | | 5.9 | | | | 31,966 | |
| Commercial Banks | | | 5.4 | | | | 29,105 | |
| IT Services | | | 4.6 | | | | 24,776 | |
| Metals & Mining | | | 4.5 | | | | 24,576 | |
| Diversified Financial Services | | | 4.0 | | | | 21,565 | |
| Real Estate Management & Development | | | 3.4 | | | | 18,099 | |
| Hotels, Restaurants & Leisure | | | 2.5 | | | | 13,392 | |
| Household Products | | | 2.3 | | | | 12,356 | |
| Communications Equipment | | | 2.2 | | | | 11,692 | |
| Food Products | | | 2.1 | | | | 11,203 | |
| Media | | | 1.8 | | | | 9,709 | |
| Thrifts & Mortgage Finance | | | 1.8 | | | | 9,601 | |
| Semiconductors & Semiconductor Equipment | | | 1.7 | | | | 9,176 | |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 119 | Annual Report 2011 |
Transamerica Oppenheimer Developing Markets
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited) (continued): | | Total Investments | | | (000’s) | |
| |
| Personal Products | | | 1.6 | | | $ | 8,799 | |
| Diversified Consumer Services | | | 1.6 | | | | 8,690 | |
| Energy Equipment & Services | | | 1.5 | | | | 8,308 | |
| Industrial Conglomerates | | | 1.4 | | | | 7,629 | |
| Pharmaceuticals | | | 1.2 | | | | 6,735 | |
| Multiline Retail | | | 1.1 | | | | 5,937 | |
| Aerospace & Defense | | | 1.0 | | | | 5,646 | |
| Insurance | | | 0.9 | | | | 5,065 | |
| Automobiles | | | 0.9 | | | | 5,048 | |
| Electronic Equipment & Instruments | | | 0.7 | | | | 4,012 | |
| Auto Components | | | 0.7 | | | | 3,520 | |
| Internet & Catalog Retail | | | 0.5 | | | | 2,885 | |
| Machinery | | | 0.4 | | | | 2,287 | |
| Chemicals | | | 0.4 | | | | 1,980 | |
| Health Care Providers & Services | | | 0.3 | | | | 1,712 | |
| Leisure Equipment & Products | | | 0.3 | | | | 1,490 | |
| Capital Markets | | | 0.2 | | | | 1,141 | |
| Tobacco | | | 0.1 | | | | 632 | |
| Software | | | 0.1 | | | | 541 | |
| | | | | | | |
| Investment Securities, at Value | | | 90.2 | | | | 487,495 | |
| Short-Term Investments | | | 9.8 | | | | 52,715 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 540,210 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| § | | Illiquid. These securities had an aggregate market value of $813, or 0.16%, of the fund’s net assets. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $42,424. |
| |
| ‡ | | Non-income producing security. |
| |
| ә | | Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. These securities aggregated to $3,759, or 0.76%, of the fund’s net assets. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $512,367. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $59,973 and $32,130, respectively. Net unrealized appreciation for tax purposes is $27,843. |
DEFINITIONS (all amounts in thousands):
| | |
| 144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $4,440, or 0.89%, of the fund’s net assets. |
| |
| ADR | | American Depositary Receipt |
| |
| GDR | | Global Depositary Receipt |
| |
| OAO | | Otkrytoe Aktsionernoe Obshchestvo (Russian: Open Joint Stock Corporation) |
| |
| OJSC | | Open Joint Stock Company |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 120 | Annual Report 2011 |
Transamerica Oppenheimer Developing Markets
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 179,097 | | | $ | 301,946 | | | $ | — | | | $ | 481,043 | |
| Convertible Bond | | | — | | | | 181 | | | | — | | | | 181 | |
| Preferred Stocks | | | 6,271 | | | | — | | | | — | | | | 6,271 | |
| Repurchase Agreement | | | — | | | | 8,875 | | | | — | | | | 8,875 | |
| Right | | | — | | | | — | | | | ♦ | | | | ♦ | |
| Securities Lending Collateral | | | 43,840 | | | | — | | | | — | | | | 43,840 | |
Total | | $ | 229,208 | | | $ | 311,002 | | | $ | ♦ | | | $ | 540,210 | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | Transfers | | | | | | | Appreciation/ | |
| | | Beginning | | | | | | | | | | | Accrued | | | Total | | | Unrealized | | | | | | | out | | | Ending | | | (Depreciation) On | |
| | | Balance at | | | | | | | | | | | Discounts/ | | | Realized | | | Appreciation/ | | | Transfers | | | of | | | Balance at | | | Investments Held | |
| Securities | | 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | (Depreciation) | | | Into level 3 | | | Level 3 | | | 10/31/2011 | | | at 10/31/2011 | |
| Rights | | | $ — | | | | $ ♦ | | | | $ — | | | | $ — | | | | $ — | | | | $ — | | | | $ — | | | | $ — | | | | $ ♦ | | | | $ — | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 121 | Annual Report 2011 |
Transamerica Oppenheimer Small- & Mid-Cap Value
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 93.5% | | | | | | | | |
Aerospace & Defense — 0.9% | | | | | | | | |
| Aercap Holdings NV ‡ | | | 203,550 | | | $ | 2,414 | |
Airlines — 0.8% | | | | | | | | |
| United Continental Holdings, Inc. ‡ ^ | | | 108,560 | | | | 2,097 | |
Auto Components — 1.2% | | | | | | | | |
| Lear Corp. | | | 67,850 | | | | 3,183 | |
Beverages — 1.1% | | | | | | | | |
| Molson Coors Brewing Co. — Class B | | | 67,850 | | | | 2,873 | |
Capital Markets — 1.0% | | | | | | | | |
| Affiliated Managers Group, Inc. ‡ | | | 27,144 | | | | 2,514 | |
Chemicals — 4.2% | | | | | | | | |
| Airgas, Inc. | | | 64,970 | | | | 4,479 | |
| Celanese Corp. — Class A | | | 54,410 | | | | 2,370 | |
| Mosaic Co. | | | 67,500 | | | | 3,953 | |
Commercial Banks — 8.2% | | | | | | | | |
| CIT Group, Inc. ‡ | | | 81,420 | | | | 2,837 | |
| Fifth Third Bancorp | | | 230,890 | | | | 2,773 | |
| M&T Bank Corp. | | | 68,100 | | | | 5,184 | |
| Prosperity Bancshares, Inc. ^ | | | 68,240 | | | | 2,627 | |
| Signature Bank ‡ ^ | | | 27,140 | | | | 1,513 | |
| TCF Financial Corp. ^ | | | 298,540 | | | | 3,177 | |
| Zions Bancorporation ^ | | | 179,440 | | | | 3,115 | |
Commercial Services & Supplies — 1.0% | | | | | | | | |
| Republic Services, Inc. — Class A | | | 88,900 | | | | 2,530 | |
Communications Equipment — 2.8% | | | | | | | | |
| Juniper Networks, Inc. ‡ | | | 162,840 | | | | 3,984 | |
| Research In Motion, Ltd. ‡ | | | 163,650 | | | | 3,306 | |
Containers & Packaging — 1.0% | | | | | | | | |
| Rock-Tenn Co. — Class A | | | 44,150 | | | | 2,613 | |
Diversified Consumer Services — 0.7% | | | | | | | | |
| Coinstar, Inc. ‡ ^ | | | 40,190 | | | | 1,919 | |
Electric Utilities — 4.5% | | | | | | | | |
| Cleco Corp. | | | 135,700 | | | | 5,003 | |
| NV Energy, Inc. | | | 203,550 | | | | 3,265 | |
| Pepco Holdings, Inc. | | | 176,410 | | | | 3,493 | |
Electrical Equipment — 2.2% | | | | | | | | |
| Cooper Industries PLC — Class A | | | 108,560 | | | | 5,695 | |
Energy Equipment & Services — 3.8% | | | | | | | | |
| Ensco PLC ADR | | | 78,030 | | | | 3,876 | |
| Nabors Industries, Ltd. ‡ | | | 135,700 | | | | 2,487 | |
| Tidewater, Inc. ^ | | | 67,850 | | | | 3,340 | |
Food & Staples Retailing — 0.7% | | | | | | | | |
| Kroger Co. | | | 81,420 | | | | 1,887 | |
Food Products — 3.0% | | | | | | | | |
| Adecoagro SA ‡ ^ | | | 204,260 | | | | 1,985 | |
| ConAgra Foods, Inc. | | | 135,700 | | | | 3,438 | |
| Sara Lee Corp. | | | 135,700 | | | | 2,415 | |
Gas Utilities — 2.7% | | | | | | | | |
| AGL Resources, Inc. | | | 94,990 | | | | 3,984 | |
| EQT Corp. | | | 47,500 | | | | 3,016 | |
Health Care Equipment & Supplies — 0.5% | | | | | | | | |
| Hospira, Inc. ‡ | | | 41,240 | | | | 1,297 | |
Health Care Providers & Services — 7.2% | | | | | | | | |
| Aetna, Inc. | | | 102,000 | | | | 4,056 | |
| Cardinal Health, Inc. | | | 67,700 | | | | 2,997 | |
| DaVita, Inc. ‡ | | | 67,747 | | | | 4,742 | |
| Humana, Inc. | | | 41,030 | | | | 3,483 | |
| Universal Health Services, Inc. — Class B | | | 81,420 | | | | 3,254 | |
Hotels, Restaurants & Leisure — 0.7% | | | | | | | | |
| Pinnacle Entertainment, Inc. ‡ ^ | | | 162,911 | | | | 1,844 | |
Household Durables — 4.0% | | | | | | | | |
| Mohawk Industries, Inc. ‡ ^ | | | 54,280 | | | | 2,858 | |
| Newell Rubbermaid, Inc. | | | 274,900 | | | | 4,068 | |
| Stanley Black & Decker, Inc. | | | 54,280 | | | | 3,466 | |
Household Products — 2.7% | | | | | | | | |
| Church & Dwight Co., Inc. ^ | | | 67,850 | | | | 2,998 | |
| Energizer Holdings, Inc. ‡ | | | 54,278 | | | | 4,005 | |
Independent Power Producers & Energy Traders — 0.5% | | | | | | | | |
| GenOn Energy, Inc. ‡ | | | 412,310 | | | $ | 1,258 | |
Industrial Conglomerates — 2.2% | | | | | | | | |
| Tyco International, Ltd. | | | 122,810 | | | | 5,594 | |
Insurance — 9.1% | | | | | | | | |
| ACE, Ltd. | | | 41,228 | | | | 2,975 | |
| AON Corp. | | | 91,600 | | | | 4,270 | |
| Everest RE Group, Ltd. | | | 54,284 | | | | 4,882 | |
| Progressive Corp. | | | 203,470 | | | | 3,868 | |
| Reinsurance Group of America, Inc. — Class A | | | 81,450 | | | | 4,254 | |
| Unum Group | | | 122,130 | | | | 2,912 | |
IT Services — 0.9% | | | | | | | | |
| Teletech Holdings, Inc. ‡ ^ | | | 135,697 | | | | 2,372 | |
Leisure Equipment & Products — 2.6% | | | | | | | | |
| Hasbro, Inc. | | | 54,290 | | | | 2,066 | |
| Mattel, Inc. | | | 161,970 | | | | 4,574 | |
Life Sciences Tools & Services — 0.6% | | | | | | | | |
| Agilent Technologies, Inc. ‡ | | | 40,710 | | | | 1,509 | |
Machinery — 1.6% | | | | | | | | |
| AGCO Corp. ‡ | | | 94,990 | | | | 4,163 | |
Media — 1.5% | | | | | | | | |
| Cablevision Systems Corp. — Class A | | | 271,400 | | | | 3,927 | |
Multi-Utilities — 3.9% | | | | | | | | |
| CMS Energy Corp. ^ | | | 271,398 | | | | 5,651 | |
| Scana Corp. ^ | | | 101,780 | | | | 4,303 | |
Oil, Gas & Consumable Fuels — 4.6% | | | | | | | | |
| Bill Barrett Corp. ‡ ^ | | | 81,420 | | | | 3,387 | |
| Cimarex Energy Co. | | | 40,710 | | | | 2,605 | |
| Noble Energy, Inc. | | | 30,530 | | | | 2,728 | |
| Whiting Petroleum Corp. ‡ | | | 67,500 | | | | 3,142 | |
Pharmaceuticals — 1.0% | | | | | | | | |
| Mylan, Inc. ‡ | | | 136,950 | | | | 2,680 | |
Real Estate Investment Trusts — 1.1% | | | | | | | | |
| BioMed Realty Trust, Inc. ^ | | | 162,836 | | | | 2,949 | |
Road & Rail — 0.3% | | | | | | | | |
| JB Hunt Transport Services, Inc. | | | 16,960 | | | | 718 | |
Semiconductors & Semiconductor Equipment — 1.6% | | | | | | | | |
| Atmel Corp. ‡ | | | 136,790 | | | | 1,445 | |
| Xilinx, Inc. ^ | | | 81,980 | | | | 2,743 | |
Software — 4.1% | | | | | | | | |
| Aspen Technology, Inc. ‡ ^ | | | 135,700 | | | | 2,353 | |
| CA, Inc. | | | 101,220 | | | | 2,192 | |
| Electronic Arts, Inc. ‡ | | | 135,700 | | | | 3,169 | |
| Take-Two Interactive Software, Inc. ‡ ^ | | | 189,980 | | | | 2,998 | |
Specialty Retail — 0.7% | | | | | | | | |
| Children’s Place Retail Stores, Inc. ‡ ^ | | | 40,710 | | | | 1,911 | |
Textiles, Apparel & Luxury Goods — 1.2% | | | | | | | | |
| PVH Corp. | | | 40,710 | | | | 3,029 | |
Wireless Telecommunication Services — 1.1% | | | | | | | | |
| NII Holdings, Inc. ‡ | | | 116,190 | | | | 2,734 | |
| | | | | | | |
Total Common Stocks (cost $219,387) | | | | | | | 241,774 | |
| | | | | | | |
| |
SECURITIES LENDING COLLATERAL — 11.4% | | | | | | | | |
| State Street Navigator Securities Lending | | | | | | | | |
| Trust — Prime Portfolio, 0.23% ▲ | | | 29,429,331 | | | | 29,429 | |
Total Securities Lending Collateral (cost $29,429) | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 122 | Annual Report 2011 |
Transamerica Oppenheimer Small - & Mid-Cap Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 8.7% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $22,460 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 04/01/2025, with a value of $22,912. | | $ | 22,460 | | | $ | 22,460 | |
Total Repurchase Agreement (cost $22,460) | | | | | | | | |
| Total Invesment Securities (cost $271,276) П | | | | | | | 293,663 | |
| | | | | | | | |
| Other Assets and Liabilities — Net | | | | | | | (35,127 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 258,536 | |
| | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $28,736. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| П | | Aggregate cost for federal income tax purposes is $278,017. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $24,908 and $9,262, respectively. Net unrealized appreciation for tax purposes is $15,646. |
DEFINITION:
| | |
| ADR | | American Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| Common Stocks | | $ | 219,236 | | | $ | 22,538 | | | $ | — | | | $ | 241,774 | |
| Repurchase Agreement | | | — | | | | 22,460 | | | | — | | | | 22,460 | |
| Securities Lending Collateral | | | 29,429 | | | | — | | | | — | | | | 29,429 | |
| | | | |
Total | | $ | 248,665 | | | $ | 44,998 | | | $ | — | | | $ | 293,663 | |
| | | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 123 | Annual Report 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT OBLIGATIONS — 91.4% | | | | | | | | |
| U.S. Treasury Inflation Indexed Bond | | | | | | | | |
| |
0.13%, 04/15/2016 g α | | $ | 31,557 | | | $ | 33,059 | |
| 0.63%, 07/15/2021 ^ | | | 32,463 | | | | 34,188 | |
1.75%, 01/15/2028 g | | | 44,117 | | | | 52,116 | |
2.00%, 01/15/2026 g | | | 36,636 | | | | 44,304 | |
| 2.13%, 02/15/2040 — 02/15/2041 | | | 30,948 | | | | 40,870 | |
2.38%, 01/15/2025 g | | | 36,473 | | | | 45,719 | |
| 2.38%, 01/15/2027 | | | 13,917 | | | | 17,694 | |
| 2.50%, 01/15/2029 | | | 29,057 | | | | 38,055 | |
| 3.38%, 04/15/2032 | | | 638 | | | | 963 | |
| 3.63%, 04/15/2028 | | | 42,025 | | | | 61,570 | |
| 3.88%, 04/15/2029 | | | 56,837 | | | | 87,205 | |
| U.S. Treasury Inflation Indexed Note | | | | | | | | |
| 0.50%, 04/15/2015 | | | 11,916 | | | | 12,557 | |
| 0.63%, 04/15/2013 | | | 1,286 | | | | 1,317 | |
| 1.25%, 04/15/2014 — 07/15/2020 | | | 7,318 | | | | 8,061 | |
1.38%, 01/15/2020 g | | | 7,018 | | | | 7,877 | |
| 1.63%, 01/15/2015 — 01/15/2018 | | | 41,261 | | | | 45,584 | |
| 1.88%, 07/15/2013 — 07/15/2015 | | | 77,586 | | | | 83,190 | |
| 1.88%, 07/15/2019 ^ | | | 14,216 | | | | 16,501 | |
| 2.00%, 01/15/2014 α | | | 40,457 | | | | 43,323 | |
| 2.00%, 01/15/2016 | | | 27,848 | | | | 31,340 | |
| 2.13%, 01/15/2019 | | | 20,068 | | | | 23,576 | |
2.38%, 01/15/2017 g • | | | 48,301 | | | | 56,165 | |
| 2.63%, 07/15/2017 | | | 7,214 | | | | 8,592 | |
| 3.00%, 07/15/2012 | | | 32,505 | | | | 33,457 | |
| 3.38%, 01/15/2012 | | | 60,605 | | | | 60,994 | |
| | | | | | | | |
Total U.S. Government Obligations (cost $843,540) | | | | | | | 888,277 | |
| | | | | | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS — 0.5% | | | | | | | | |
| Fannie Mae | | | | | | | | |
| 0.39%, 08/25/2034 * | | | 110 | | | | 108 | |
| 0.92%, 02/25/2041 * | | | 3,405 | | | | 3,432 | |
| 1.43%, 10/01/2044 * | | | 40 | | | | 41 | |
| Freddie Mac | | | | | | | | |
| 0.47%, 02/15/2019 * | | | 1,279 | | | | 1,282 | |
| | | | | | | | |
Total U.S. Government Agency Obligations (cost $4,854) | | | | | | | 4,863 | |
FOREIGN GOVERNMENT OBLIGATIONS — 4.5% | | | | | | | | |
| Australia Government Bond | | | | | | | | |
| 2.50%, 09/20/2030 | | AUD | 1,300 | | | | 1,473 | |
| 3.00%, 09/20/2025 ^ | | | 6,900 | | | | 8,579 | |
| 4.00%, 08/20/2020 | | | 2,800 | | | | 5,183 | |
| Canadian Government Bond | | | | | | | | |
| 2.00%, 12/01/2041 | | CAD | 324 | | | | 438 | |
| 2.75%, 09/01/2016 | | | 2,600 | | | | 2,752 | |
| 3.00%, 12/01/2036 | | | 350 | | | | 538 | |
| Italy Buoni Poliennali Del Tesoro | | | | | | | | |
| 2.10%, 09/15/2016 — 09/15/2021 | | EUR | 12,170 | | | | 13,977 | |
| New South Wales Treasury Corp. | | | | | | | | |
| 2.75%, 11/20/2025 | | AUD | 2,200 | | | | 2,621 | |
| United Kingdom Gilt | | | | | | | | |
| 1.88%, 11/22/2022 | | GBP | 2,296 | | | | 4,487 | |
| 4.25%, 12/07/2040 | | | 1,200 | | | | 2,226 | |
| 4.75%, 12/07/2038 | | | 500 | | | | 1,004 | |
| | | | | | | |
Total Foreign Government Obligations (cost $42,912) | | | | | | | 43,278 | |
| | | | | | | | |
MORTGAGE-BACKED SECURITIES — 3.7% | | | | | | | | |
| Arran Residential Mortgages Funding PLC | | | | | | | | |
| Series 2010-1A, Class A1B | | | | | | | | |
| 2.74%, 05/16/2047 — 144A * | | $ | 399 | | | $ | 552 | |
| Series 2011-1A, Class A1B | | | | | | | | |
| 2.74%, 11/19/2047 — 144A * | | | 3,539 | | | | 4,892 | |
| Series 2011-1A, Class A2B | | | | | | | | |
| 2.99%, 11/19/2047 — 144A * | | | 7,900 | | | | 10,879 | |
| Banc of America Merrill Lynch Commercial | | | | | | | | |
| Mortgage, Inc. | | | | | | | | |
| Series 2007-3, Class A2 | | | | | | | | |
| 5.62%, 06/10/2049 * | | | 134 | | | | 137 | |
| Series 2007-3, Class A2FL | | | | | | | | |
| 0.42%, 06/10/2049 — 144A * | | | 134 | | | | 132 | |
| Series 2007-5, Class A4 | | | | | | | | |
| 5.49%, 02/10/2051 | | | 530 | | | | 555 | |
| Banc of America Mortgage Securities, Inc. | | | | | | | | |
| Series 2004-1, Class 5A1 | | | | | | | | |
| 6.50%, 09/25/2033 | | | 29 | | | | 31 | |
| Bear Stearns Adjustable Rate Mortgage Trust | | | | | | | | |
| Series 2005-2, Class A1 | | | | | | | | |
| 2.71%, 03/25/2035 * | | | 637 | | | | 591 | |
| Series 2005-2, Class A2 | | | | | | | | |
| 2.73%, 03/25/2035 * | | | 194 | | | | 182 | |
| Series 2005-5, Class A1 | | | | | | | | |
| 2.22%, 08/25/2035 * | | | 201 | | | | 187 | |
| Series 2005-5, Class A2 | | | | | | | | |
| 2.25%, 08/25/2035 * | | | 347 | | | | 318 | |
| Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
| Series 2005-6, Class A1 | | | | | | | | |
| 2.37%, 08/25/2035 * | | | 253 | | | | 230 | |
| Series 2005-6, Class A2 | | | | | | | | |
| 2.45%, 08/25/2035 * | | | 310 | | | | 254 | |
| Series 2005-6, Class A3 | | | | | | | | |
| 2.10%, 08/25/2035 * | | | 42 | | | | 37 | |
| Series 2005-11, Class A1A | | | | | | | | |
| 2.66%, 05/25/2035 * | | | 34 | | | | 30 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
| Series 2007-CD5, Class A4 | | | | | | | | |
| 5.89%, 11/15/2044 * | | | 400 | | | | 436 | |
| Countrywide Home Loan Mortgage Pass-Through Trust | | | | | | | | |
| Series 2005-3, Class 1A2 | | | | | | | | |
| 0.53%, 04/25/2035 * | | | 1,028 | | | | 611 | |
| Series 2005-R2, Class 1AF1 | | | | | | | | |
| 0.58%, 06/25/2035 — 144A * | | | 216 | | | | 186 | |
| DBUBS Mortgage Trust | | | | | | | | |
| Series 2011-LC2A, Class A2 | | | | | | | | |
| 3.39%, 07/10/2044 — 144A | | | 6,700 | | | | 6,862 | |
| Granite Master Issuer PLC | | | | | | | | |
| Series 2006-3, Class A3 | | | | | | | | |
| 0.28%, 12/20/2054 * | | | 673 | | | | 648 | |
| Series 2006-3, Class A7 | | | | | | | | |
| 0.34%, 12/20/2054 * | | | 175 | | | | 169 | |
| Greenpoint Mortgage Funding Trust | | | | | | | | |
| Series 2005-AR1, Class A2 | | | | | | | | |
| 0.46%, 06/25/2045 * | | | 402 | | | | 244 | |
| GSR Mortgage Loan Trust | | | | | | | | |
| Series 2005-AR6, Class 2A1 | | | | | | | | |
| 2.73%, 09/25/2035 * | | | 650 | | | | 582 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. | | | | | | | | |
| Series 2006-CB17, Class A4 | | | | | | | | |
| 5.43%, 12/12/2043 | | | 510 | | | | 551 | |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 124 | Annual Report 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
| Series 2007-C7, Class A3 | | | | | | | | |
| 5.87%, 09/15/2045 * § | | $ | 200 | | | $ | 212 | |
| MASTR Alternative Loans Trust | | | | | | | | |
| Series 2006-2, Class 2A1 | | | | | | | | |
| 0.64%, 03/25/2036 * | | | 654 | | | | 153 | |
| Merrill Lynch/Countrywide Commercial Mortgage Trust | | | | | | | | |
| Series 2007-9, Class A4 | | | | | | | | |
| 5.70%, 09/12/2049 | | | 300 | | | | 313 | |
| Morgan Stanley Capital I | | | | | | | | |
| Series 2007-IQ15, Class A4 | | | | | | | | |
| 5.88%, 06/11/2049 * | | | 1,200 | | | | 1,295 | |
| Permanent Master Issuer PLC | | | | | | | | |
| Series 2011-1A, Class 1A3 | | | | | | | | |
| 2.87%, 07/15/2042 — 144A * | | | 400 | | | | 552 | |
| Residential Accredit Loans, Inc. | | | | | | | | |
| Series 2006-QO6, Class A1 | | | | | | | | |
| 0.42%, 06/25/2046 * | | | 1,046 | | | | 338 | |
| Sequoia Mortgage Trust | | | | | | | | |
| Series 5, Class A | | | | | | | | |
| 0.59%, 10/19/2026 * | | | 97 | | | | 83 | |
| Structured Asset Mortgage Investments, Inc. | | | | | | | | |
| Series 2006-AR5, Class 1A1 | | | | | | | | |
| 0.45%, 05/25/2046 * | | | 937 | | | | 464 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
| Series 2006-C23, Class A4 | | | | | | | | |
| 5.42%, 01/15/2045 * | | | 720 | | | | 787 | |
| Series 2006-C28, Class A4 | | | | | | | | |
| 5.57%, 10/15/2048 | | | 400 | | | | 435 | |
| WaMu Mortgage Pass-Through Certificates | | | | | | | | |
| Series 2003-AR9, Class 2A | | | | | | | | |
| 2.55%, 09/25/2033 * | | | 670 | | | | 638 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
| Series 2006-AR8, Class 2A1 | | | | | | | | |
| 2.70%, 04/25/2036 * | | | 1,891 | | | | 1,470 | |
| | | | | | | |
Total Mortgage-Backed Securities (cost $37,020) | | | | | | | 36,036 | |
| | | | | | | |
| |
ASSET-BACKED SECURITIES — 1.2% | | | | | | | | |
| Ares CLO, Ltd. | | | | | | | | |
| Series 2006-6RA, Class A1B | | | | | | | | |
| 0.56%, 03/12/2018 — 144A * | | | 749 | | | | 715 | |
| Countrywide Asset-Backed Certificates | | | | | | | | |
| Series 2005-13, Class 3AV3 | | | | | | | | |
| 0.49%, 04/25/2036 * | | | 257 | | | | 219 | |
| CSAB Mortgage Backed Trust | | | | | | | | |
| Series 2006-1, Class A6A | | | | | | | | |
| 6.17%, 06/25/2036 * | | | 1,172 | | | | 681 | |
| Duane Street CLO | | | | | | | | |
| Series 2005-1A, Class A2 | | | | | | | | |
| 0.69%, 11/08/2017 — 144A * | | | 485 | | | | 468 | |
| Equity One, Inc. | | | | | | | | |
| Series 2004-1, Class AV2 | | | | | | | | |
| 0.54%, 04/25/2034 * | | | 47 | | | | 33 | |
| Gazprom OAO Via GAZ Capital SA | | | | | | | | |
| 5.09%, 11/29/2015 — 144A | | | 500 | | | | 519 | |
| Series 16 | | | | | | | | |
| 7.34%, 04/11/2013 — 144A | | | 300 | | | | 318 | |
| Harvest CLO SA | | | | | | | | |
| Series IX, Class A1 | | | | | | | | |
| 2.23%, 03/29/2017 * Ə | | | 191 | | | | 253 | |
| Katonah, Ltd. | | | | | | | | |
| Series 6A, Class A1A | | | | | | | | |
| 0.67%, 09/20/2016 — 144A * | | | 1,142 | | | | 1,123 | |
| Magi Funding PLC | | | | | | | | |
| Series I-A, Class A | | | | | | | | |
| 2.02%, 04/11/2021 — 144A * Ə | | | 651 | | | | 824 | |
| Magnolia Funding, Ltd. | | | | | | | | |
| Series 2010-1A, Class A1 | | | | | | | | |
| 3.00%, 04/20/2017 — 144A Ə | | | 314 | | | | 434 | |
| Morgan Stanley Mortgage Loan Trust | | | | | | | | |
| Series 2006-12XS, Class A6A | | | | | | | | |
| 5.73%, 10/25/2036 * | | | 439 | | | | 237 | |
| Saxon Asset Securities Trust | | | | | | | | |
| Series 2003-1, Class AF7 | | | | | | | | |
| 4.03%, 06/25/2033 * | | | 495 | | | | 451 | |
| SLM Student Loan Trust | | | | | | | | |
| Series 2003-6, Class A4 | | | | | | | | |
| 0.55%, 12/17/2018 * | | | 578 | | | | 575 | |
| Series 2009-B, Class A1 | | | | | | | | |
| 6.24%, 07/15/2042 — 144A * | | | 2,948 | | | | 2,748 | |
| Series 2010-B, Class A1 | | | | | | | | |
| 2.16%, 08/15/2016 — 144A * | | | 706 | | | | 705 | |
| Structured Asset Securities Corp. | | | | | | | | |
| Series 2007-BC3, Class 2A2 | | | | | | | | |
| 0.38%, 05/25/2047 * | | | 900 | | | | 592 | |
| Wood Street CLO BV | | | | | | | | |
| Series II-A, Class A1 | | | | | | | | |
| 1.99%, 03/29/2021 — 144A * Ə | | | 257 | | | | 333 | |
| | | | | | | |
Total Asset-Backed Securities (cost $11,773) | | | | | | | 11,228 | |
| | | | | | | |
| |
MUNICIPAL GOVERNMENT OBLIGATIONS — 0.1% | | | | | | | | |
| Buckeye Tobacco Settlement Financing Authority 5.88%, 06/01/2047 | | | 500 | | | | 354 | |
| Tobacco Settlement Finance Authority — Series A 7.47%, 06/01/2047 | | | 665 | | | | 479 | |
| Tobacco Settlement Financing Corp. — Series A 6.00%, 06/01/2023 | | | 315 | | | | 316 | |
| | | | | | | |
Total Municipal Government Obligations (cost $1,405) | | | | | | | 1,149 | |
| | | | | | | |
| |
PREFERRED CORPORATE DEBT SECURITY — 0.2% | | | | | | | | |
Commercial Banks — 0.2% | | | | | | | | |
| Wells Fargo & Co. — Series K | | | | | | | | |
| 7.98%, 03/15/2018 * Ž ^ | | | 1,500 | | | | 1,605 | |
Total Preferred Corporate Debt Security (cost $1,500) | | | | | | | | |
| |
CORPORATE DEBT SECURITIES — 17.2% | | | | | | | | |
Capital Markets — 1.7% | | | | | | | | |
| Goldman Sachs Group, Inc. | | | | | | | | |
| 0.81%, 03/22/2016 * ^ | | | 5,455 | | | | 4,893 | |
| 1.84%, 11/15/2014 * | | EUR | 300 | | | | 376 | |
| Morgan Stanley | | | | | | | | |
| 1.84%, 11/29/2013 * | | | 100 | | | | 129 | |
| 1.87%, 03/01/2013 * | | | 1,000 | | | | 1,336 | |
| 2.94%, 05/14/2013 * | | $ | 8,800 | | | | 8,703 | |
| Morgan Stanley — Series F | | | | | | | | |
| 0.85%, 10/18/2016 * | | | 800 | | | | 669 | |
Commercial Banks — 8.6% | | | | | | | | |
| ANZ National International, Ltd. | | | | | | | | |
| 0.74%, 08/19/2014 — 144A * | | | 2,000 | | | | 2,010 | |
| Banco Bradesco SA | | | | | | | | |
| 2.39%, 05/16/2014 — 144A * | | | 4,600 | | | | 4,543 | |
| Banco Mercantil del Norte SA | | | | | | | | |
| 4.38%, 07/19/2015 — 144A ^ | | | 100 | | | | 101 | |
| Banco Santander Brazil SA | | | | | | | | |
| 2.45%, 03/18/2014 — 144A * | | | 7,500 | | | | 7,142 | |
| Bank of India | | | | | | | | |
| 6.25%, 02/16/2021 — Reg S | | | 500 | | | | 506 | |
The notes to the financial statements are an integral part of this report.
| | |
| Transamerica Funds | Page 125 | Annual Report 2011 |
Transamerica PIMCO Real Return Tips
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value (000’s) | |
| | | (000’s) | | | (000’s) | |
| |
Commercial Banks (continued) | | | | | | | | |
| Barclays Bank PLC | | | | | | | | |
| 1.45%, 12/16/2011 * | | $ | 10,600 | | | $ | 10,600 | |
| BBVA Bancomer SA | | | | | | | | |
| 6.50%, 03/10/2021 — 144A | | | 1,900 | | | | 1,891 | |
| CIT Group, Inc. | | | | | | | | |
| 5.25%, 04/01/2014 — 144A ^ | | | 1,000 | | | | 995 | |
| Danske Bank A/S | | | | | | | | |
| 1.45%, 04/14/2014 — 144A * ^ | | | 3,800 | | | | 3,652 | |
| HBOS PLC | | | | | | | | |
| 0.53%, 09/06/2017 * | | | 9,400 | | | | 6,803 | |
| 6.75%, 05/21/2018 — 144A | | | 1,000 | | | | 870 | |
| HSBC Bank PLC | | | | | | | | |
| 3.10%, 05/24/2016 — 144A ^ | | | 17,500 | | | | 17,662 | |
| ICICI Bank, Ltd. | | | | | | | | |
| 2.06%, 02/24/2014 — 144A * | | | 600 | | | | 573 | |
| ING Bank NV | | | | | | | | |
| 1.74%, 06/09/2014 — 144A * | | | 8,200 | | | | 8,064 | |
| National Australia Bank, Ltd. | | | | | | | | |
| 1.11%, 04/11/2014 — 144A * ^ | | | 5,700 | | | | 5,681 | |
| 5.35%, 06/12/2013 — 144A | | | 1,400 | | | | 1,482 | |
| Royal Bank of Scotland PLC | | | | | | | | |
| 2.72%, 08/23/2013 * | | | 7,000 | | | | 6,903 | |
| 3.00%, 12/09/2011 — 144A | | | 1,000 | | | | 1,003 | |
| Societe Generale SA | | | | | | | | |
| 1.44%, 04/11/2014 — 144A * | | | 3,800 | | | | 3,459 | |
| Turkiye Garanti Bankasi AS | | | | | | | | |
| 2.91%, 04/20/2016 — 144A * | | | 500 | | | | 466 | |
Consumer Finance — 0.6% | | | | | | | | |
| Ally Financial, Inc. | | | | | | | | |
| 3.64%, 02/11/2014 * | | | 100 | | | | 93 | |
| 3.75%, 06/20/2014 * | | | 200 | | | | 189 | |
| 6.63%, 05/15/2012 ^ | | | 5,000 | | | | 5,037 | |
| 8.30%, 02/12/2015 | | | 100 | | | | 105 | |
| SLM Corp. | | | | | | | | |
| 5.05%, 11/14/2014 | | | 300 | | | | 293 | |
Diversified Financial Services — 3.2% | | | | | | | | |
| Citigroup, Inc. | | | | | | | | |
| 7.38%, 06/16/2014 | | EUR1,100 | | | 1,652 | |
| Countrywide Financial Corp. | | | | | | | | |
| 5.80%, 06/07/2012 ^ | | $ | 500 | | | | 505 | |
| Credit Agricole Home Loan SFH | | | | | | | | |
| 1.16%, 07/21/2014 — 144A * | | | 3,400 | | | | 3,264 | |
| Ford Motor Credit Co., LLC | | | | | | | | |
| 7.00%, 10/01/2013 ^ | | | 1,700 | | | | 1,828 | |
| 7.50%, 08/01/2012 ^ | | | 900 | | | | 931 | |
| 7.80%, 06/01/2012 ^ | | | 450 | | | | 465 | |
| FUEL Trust | | | | | | | | |
| 3.98%, 06/15/2016 — 144A | | | 3,600 | | | | 3,560 | |
| International Lease Finance Corp. | | | | | | | | |
| 6.50%, 09/01/2014 — 144A | | | 600 | | | | 618 | |
| 6.75%, 09/01/2016 — 144A | | | 500 | | | | 514 | |
| 7.13%, 09/01/2018 — 144A | | | 1,000 | | | | 1,033 | |
| Merrill Lynch & Co., Inc. | | | | | | | | |
| 1.85%, 01/31/2014 * | | | EUR800 | | | | 994 | |
| 2.29%, 09/27/2012 * | | | 7,400 | | | | 9,933 | |
| SSIF Nevada, LP | | | | | | | | |
| 1.10%, 04/14/2014 — 144A * | | $ | 5,700 | | | | 5,698 | |
| Vita Capital III, Ltd. — Series B-II | | | | | | | | |
| 1.49%, 01/01/2012 — 144A * § | | | 400 | | | | 399 | |
Diversified Telecommunication Services — 0.3% | | | | | | | | |
| TDC A/S | | | | | | | | |
| 3.50%, 02/23/2015 — Reg S | | EUR2,000 | | | 2,850 | |
Energy Equipment & Services — 0.2% | | | | | | | | |
| Transocean, Inc. | | | | | | | | |
| 4.95%, 11/15/2015 | | $ | 2,300 | | | $ | 2,424 | |
Food Products — 0.6% | | | | | | | | |
| Tyson Foods, Inc. | | | | | | | | |
| 10.50%, 03/01/2014 ^ | | | 5,000 | | | | 5,800 | |
Household Durables — 0.4% | | | | | | | | |
| Black & Decker Corp. | | | | | | | | |
| 8.95%, 04/15/2014 | | | 3,000 | | | | 3,498 | |
Insurance — 0.6% | | | | | | | | |
| American International Group, Inc. | | | | | | | | |
| 8.18%, 05/15/2058 * | | | 3,650 | | | | 3,521 | |
| 8.63%, 05/22/2038 — Reg S * | | | GBP500 | | | | 716 | |
| Marsh & McLennan Cos., Inc. | | | | | | | | |
| 5.75%, 09/15/2015 | | $ | 1,093 | | | | 1,217 | |
| Pacific Life Global Funding | | | | | | | | |
| 5.15%, 04/15/2013 — 144A | | | 300 | | | | 315 | |
Media — 0.4% | | | | | | | | |
| CSC Holdings LLC | | | | | | | | |
| 8.50%, 06/15/2015 | | | 3,200 | | | | 3,472 | |
Metals & Mining — 0.0% ∞ | | | | | | | | |
| Gerdau Holdings, Inc. | | | | | | | | |
| 7.00%, 01/20/2020 — 144A ^ | | | 200 | | | | 214 | |
Oil, Gas & Consumable Fuels — 0.6% | | | | | | | | |
| Petrobras International Finance Co. | | | | | | | | |
| 3.88%, 01/27/2016 | | | 3,700 | | | | 3,786 | |
| Petroleos Mexicanos | | | | | | | | |
| 5.50%, 01/21/2021 | | | 800 | | | | 854 | |
| 6.50%, 06/02/2041 | | | 700 | | | | 751 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $166,563) | | | | | | | 167,041 | |
| | | | | | | | |
| |
COMMERCIAL PAPER — 0.0% ∞ | | | | | | | | |
Commercial Banks — 0.0% ∞ | | | | | | | | |
| Banco do Brasil SA | | | | | | | | |
| 1.22%, 11/15/2011 ▲ | | | 250 | | | | 250 | |
Total Commercial Paper (cost $250) | | | | | | | | |
| |
LOAN ASSIGNMENTS — 0.6% | | | | | | | | |
Consumer Finance — 0.4% | | | | | | | | |
| Springleaf Finance Corp. | | | | | | | | |
| 5.50%, 05/10/2017 * | | | 4,400 | | | | 4,024 | |
Independent Power Producers & Energy Traders — 0.2% | | | | | | | | |
| NRG Energy, Inc., Tranche B | | | | | | | | |
| 4.00%, 07/02/2018 * | | | 1,995 | | | | 1,994 | |
| | | | | | | | |
Total Loan Assignments (cost $6,370) | | | | | | | 6,018 | |
| | | | | | | | |
| |
SHORT-TERM U.S. GOVERNMENT OBLIGATION — 0.1% | | | | | | | | |
| U.S. Treasury Bill | | | | | | | | |
| 0.04%, 04/05/2012 ▲ α | | | 1,004 | | | | 1,004 | |
Total Short-Term U.S. Government Obligation
(cost $1,004) | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 126 | | Annual Repot 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | �� | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
CONVERTIBLE PREFERRED STOCK — 0.0% ∞ | | | | | | | | |
Commercial Banks — 0.0% ∞ | | | | | | | | |
| Wells Fargo & Co., 7.50% | | | 400 | | | $ | 422 | |
Total Convertible Preferred Stock (cost $400) | | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
PURCHASED SWAPTIONS — 0.1% | | | | | | | | |
Put Options — 0.1% | | | | | | | | |
| If exercised the Series receives floating 3 month LIBOR, and pays 3.27%, European Style | | | 3,200 | | | | 231 | |
| Expires 09/24/2012 § | | | | | | | | |
| If exercised the Series receives floating 3 month LIBOR, and pays 3.27%, European Style | | | 2,700 | | | | 195 | |
| Expires 09/24/2012 § | | | | | | | | |
| If exercised the Series receives floating 3 month LIBOR, and pays 3.27%, European Style | | | 3,300 | | | | 238 | |
| Expires 09/24/2012 § | | | | | | | | |
| | | | | | | | |
Total Purchased Swaptions (cost $514) | | | | | | | 664 | |
| | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES LENDING COLLATERAL — 4.3% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 42,016,478 | | | | 42,016 | |
Total Securities Lending Collateral (cost $42,016) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 0.2% | | | | | | | | |
| State Street Bank & Trust Co. | | | | | | | | |
| 0.03% ▲, dated 10/31/2011, to be repurchased at $1,499 on 11/01/2011. | | | | | | | | |
| Collateralized by a U.S. Government Agency Obligation, 4.00%, due 12/15/2017, with a value of $1,530. | | $ | 1,499 | | | | 1,499 | |
Total Repurchase Agreement (cost $1,499) | | | | | | | | |
| |
| | | | | | | | |
| Total Investment Securities (cost $1,161,620) Π | | | | | | | 1,205,350 | |
| Other Assets and Liabilities — Net | | | | | | | (233,716 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 971,634 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REVERSE REPURCHASE AGREEMENT — (1.1%) | | | | | | | | |
| Deutsche Bank Securities, Inc. | | | | | | | | |
| 0.15% ▲, dated 05/26/2011, to be repurchased at $(10,665) on 11/23/2011. | | $ | (10,658 | ) | | $ | (10,658 | ) |
Total Reverse Repurchase Agreement
(cost $(10,658)) | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 127 | | Annual Repot 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
INFLATION FLOOR OPTIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Notional | | Premiums Paid | | |
| | | | | | | Strike | | | | | | | | | | Amount | | (Received) | | Value |
| Description | | Counterparty | | Index | | Exercise Index | | Expiration Date | | (000’s) | | (000’s) | | (000’s) |
| |
| Floor — OTC CPURNSA Index | | DUB | | | 215.95 | | | Maximum of ((1 + 0.000%)10 - Inflation Adjustment) or 0 | | | 03/10/2020 | | | $ | (1,800 | ) | | $ | (14 | ) | | $ | (8 | ) |
| Floor — OTC CPURNSA Index | | CITI | | | 215.95 | | | Maximum of ((1 + 0.000%)10 - Inflation Adjustment) or 0 | | | 03/12/2020 | | | | (7,600 | ) | | | (64 | ) | | | (16 | ) |
| Floor — OTC CPURNSA Index | | CITI | | | 216.69 | | | Maximum of ((1 + 0.000%)10 - Inflation Adjustment) or 0 | | | 04/07/2020 | | | | (14,200 | ) | | | (127 | ) | | | (33 | ) |
| Floor — OTC CPURNSA Index | | CITI | | | 217.97 | | | Maximum of ((1 + 0.000%)10 - Inflation Adjustment) or 0 | | | 09/29/2020 | | | | (1,700 | ) | | | (22 | ) | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (227 | ) | | $ | (61 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
WRITTEN SWAPTIONS: π
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Notional | | | Premiums Paid | | | | |
| | | Floating Rate | | Pay/Receive | | Exercise | | Expiration | | Amount | | | (Received) | | | Value | |
| Description | | Index | | Floating Rate | | Rate | | Date | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Call—Interest Rate Swap, European Style § | | 2-Year OC FVA USD | | Receive | | 0.00% ∞ | | 11/14/2011 | | $ | (13,400 | ) | | $ | (146 | ) | | $ | (157 | ) |
| Call-Interest Rate Swap, European Style | | 1-Year IRO USD | | Receive | | 0.80 | | 10/11/2012 | | | (5,500 | ) | | | ♦ | | | | (8 | ) |
| Call-Interest Rate Swap, European Style | | 2-Year IRO USD | | Receive | | 1.06 | | 10/11/2012 | | | (11,800 | ) | | | ♦ | | | | (95 | ) |
| Put-Interest Rate Swap, European Style | | 1-Year IRO USD | | Pay | | 0.80 | | 10/11/2012 | | | (5,500 | ) | | | ♦ | | | | (19 | ) |
| Put-Interest Rate Swap, European Style | | 2-Year IRO USD | | Pay | | 1.06 | | 10/11/2012 | | | (11,800 | ) | | | ♦ | | | | (36 | ) |
| Put-Interest Rate Swap, European Style | | 1-Year IRO USD | | Pay | | 1.75 | | 07/11/2013 | | | (41,000 | ) | | | (201 | ) | | | (72 | ) |
| Put-Interest Rate Swap, European Style | | 5-Year IRO USD | | Pay | | 2.00 | | 09/24/2012 | | | (14,900 | ) | | | (208 | ) | | | (192 | ) |
| Put-Interest Rate Swap, European Style | | 5-Year IRO USD | | Pay | | 2.00 | | 09/24/2012 | | | (26,700 | ) | | | (306 | ) | | | (343 | ) |
| Put-Interest Rate Swap, European Style | | 2-Year IRO USD | | Pay | | 2.25 | | 09/24/2012 | | | (3,300 | ) | | | (23 | ) | | | (2 | ) |
| Put-Interest Rate Swap, European Style | | 2-Year IRO USD | | Pay | | 2.25 | | 09/24/2012 | | | (1,400 | ) | | | (9 | ) | | | (1 | ) |
| Put-Interest Rate Swap, European Style | | 2-Year IRO USD | | Pay | | 2.25 | | 09/24/2012 | | | (67,100 | ) | | | (538 | ) | | | (36 | ) |
| Put-Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | 3.00 | | 06/18/2012 | | | (8,100 | ) | | | (90 | ) | | | (1 | ) |
| Put-Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | 3.00 | | 06/18/2012 | | | (16,600 | ) | | | (172 | ) | | | (3 | ) |
| Put-Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | 3.00 | | 06/18/2012 | | | (10,600 | ) | | | (96 | ) | | | (2 | ) |
| Put-Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | 3.00 | | 06/18/2012 | | | (7,000 | ) | | | (78 | ) | | | (1 | ) |
| Put-Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | 3.00 | | 06/18/2012 | | | (13,300 | ) | | | (147 | ) | | | (2 | ) |
| Put-Interest Rate Swap, European Style | | 10-Year IRO USD | | Pay | | 10.00 | | 07/10/2012 | | | (2,600 | ) | | | (18 | ) | | | (♦ | ) |
| Put-Interest Rate Swap, European Style | | 10-Year IRO USD | | Pay | | 10.00 | | 07/10/2012 | | | (1,400 | ) | | | (9 | ) | | | (♦ | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (2,041 | ) | | $ | (970 | ) |
| | | | | | | | | | | | | | | | | | | |
SWAP AGREEMENTS: π
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES — BUY PROTECTION:(1)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Implied Credit Spread | | | | | | | | | | Premiums | | | Unrealized | |
| | | Fixed Deal | | | | | | (BP) at | | Notional Amount | | | Market Value | | | Paid | | | (Depreciation) | |
| Reference Obligation | | Pay Rate | | Maturity Date | | Counterparty | | 10/31/2011(2) | | (000’s)(3) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Black and Decker Corp., 8.95%, 04/15/2014 | | 2.20% | | 06/20/2014 | | CITI | | 30.90 | | $ | 3,000 | | | $ | (150 | ) | | $ | | | | $ | (150 | ) |
| Marsh & McLennan Cos., Inc., 5.75%, 09/15/2015 | | 0.76 | | 09/20/2015 | | BCLY | | 54.76 | | | 6,000 | | | | (44 | ) | | | ♦ | | | | (44 | ) |
| Societe Generale SA, 5.25%, 03/28/2013 § | | 1.00 | | 06/20/2014 | | BCLY | | 259.34 | | | 3,800 | | | | 134 | | | | 148 | | | | (14 | ) |
| Tyson Foods, Inc., 6.60%, 03/20/2014 | | 1.00 | | 03/20/2014 | | BNP | | 83.82 | | | 6,000 | | | | (9 | ) | | | 211 | | | | (220 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (69 | ) | | $ | 359 | | | $ | (428 | ) |
| | | | | | | | | | | | | | | |
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES — SELL PROTECTION:(4)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Implied | | | | | | | | | | | | | | Unrealized | |
| | | Fixed Deal | | | | | | Credit Spread | | Notional | | | Market | | | Premiums | | | Appreciation | |
| | | Receive | | | | | | (BP) at | | Amount | | | Value | | | Paid | | | (Depreciation) | |
| Reference Obligation | | Rate | | Maturity Date | | Counterparty | | 10/31/2011(2) | | (000’s)(3) | | | (000’s) | | | (Received) (000’s) | | | (000’s) | |
| |
| 20-Year Japan Government Bond, 2.00%, 03/21/2022 § | | 1.00% | | 12/20/2015 | | BOA | | 85.28 | | $ | 2,900 | | | $ | 19 | | | $ | 53 | | | $ | (34 | ) |
| 20-Year Japan Government Bond, 2.00%, 03/21/2022 § | | 1.00 | | 12/20/2015 | | RBS | | 85.28 | | | 700 | | | | 5 | | | | 13 | | | | (8 | ) |
| 20-Year Japan Government Bond, 2.00%, 03/21/2022 § | | 1.00 | | 12/20/2015 | | GSC | | 85.28 | | | 500 | | | | 3 | | | | 8 | | | | (5 | ) |
| 20-Year Japan Government Bond, 2.00%, 03/21/2022 § | | 1.00 | | 12/20/2015 | | BOA | | 85.28 | | | 500 | | | | 3 | | | | 8 | | | | (5 | ) |
| American International Group, Inc., 6.25%, 05/01/2036 | | 5.00 | | 12/20/2013 | | DUB | | 294.89 | | | 6,500 | | | | 284 | | | | (279 | ) | | | 563 | |
| Federative Republic of Brazil, 12.25%, 03/06/2030 | | 1.00 | | 06/20/2015 | | BCLY | | 112.13 | | | 1,000 | | | | (3 | ) | | | (14 | ) | | | 11 | |
| Federative Republic of Brazil, 12.25%, 03/06/2030 | | 1.00 | | 06/20/2015 | | HSBC | | 112.13 | | | 1,000 | | | | (3 | ) | | | (10 | ) | | | 7 | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 128 | | Annual Repot 2011 |
Transamerica PIMCA Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
SWAP AGREEMENTS: (continued) π
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES — SELL PROTECTION (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Fixed | | | | | | | | | | | Implied Credit | | | | | | | | | | | | | | | Unrealized | |
| | | Deal | | | | | | | | | | | Spread | | | Notional | | | Market | | | Premiums | | | Appreciation | |
| | | Receive | | | | | | | | | | | (BP) at | | | Amount | | | Value | | | Paid | | | (Depreciation) | |
| Reference Obligation | | Rate | | | Maturity Date | | | Counterparty | | | 10/31/2011(2) | | | (000’s)(3) | | | (000’s) | | | (Received) (000’s) | | | (000’s) | |
| |
| Federative Republic of Brazil, 12.25%, 03/06/2030 | | | 1.00 | % | | | 06/20/2015 | | | BCLY | | | 112.13 | | | $ | 1,000 | | | $ | (3 | ) | | $ | (6 | ) | | $ | 3 | |
| Federative Republic of Brazil, 12.25%, 03/06/2030 | | | 1.00 | | | | 06/20/2020 | | | DUB | | | 163.19 | | | | 2,500 | | | | (103 | ) | | | (70 | ) | | | (33 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 06/20/2015 | | | CITI | | | 152.51 | | | | 500 | | | | (19 | ) | | | (8 | ) | | | (11 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 06/20/2015 | | | DUB | | | 152.51 | | | | 400 | | | | (15 | ) | | | (9 | ) | | | (6 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 12/20/2015 | | | CITI | | | 160.73 | | | | 100 | | | | (5 | ) | | | (2 | ) | | | (3 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 12/20/2015 | | | RBS | | | 160.73 | | | | 900 | | | | (42 | ) | | | (14 | ) | | | (28 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 12/20/2015 | | | BOA | | | 160.73 | | | | 1,200 | | | | (56 | ) | | | (26 | ) | | | (30 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 12/20/2015 | | | BCLY | | | 160.73 | | | | 1,100 | | | | (51 | ) | | | (18 | ) | | | (33 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 12/20/2015 | | | BOA | | | 160.73 | | | | 800 | | | | (37 | ) | | | (13 | ) | | | (24 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 06/20/2016 | | | CITI | | | 169.04 | | | | 800 | | | | (44 | ) | | | (33 | ) | | | (11 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 06/20/2016 | | | MSC | | | 169.04 | | | | 900 | | | | (50 | ) | | | (37 | ) | | | (13 | ) |
| France Government Bond, 4.25%, 04/25/2019 | | | 0.25 | | | | 09/20/2016 | | | CITI | | | 172.55 | | | | 500 | | | | (30 | ) | | | (28 | ) | | | (2 | ) |
| Petrobras International Finance Co., 8.38%, 12/10/2018 | | | 1.00 | | | | 09/20/2012 | | | DUB | | | 68.54 | | | | 300 | | | | ♦ | | | | (2 | ) | | | 2 | |
| United Kingdom Gilt, 4.25%, 06/07/2032 § | | | 1.00 | | | | 06/20/2015 | | | CITI | | | 59.53 | | | | 600 | | | | 9 | | | | 3 | | | | 6 | |
| United Kingdom Gilt, 4.25%, 06/07/2032 § | | | 1.00 | | | | 06/20/2015 | | | DUB | | | 59.53 | | | | 700 | | | | 11 | | | | 2 | | | | 9 | |
| United Kingdom Gilt, 4.25%, 06/07/2032 § | | | 1.00 | | | | 06/20/2015 | | | DUB | | | 59.53 | | | | 2,200 | | | | 34 | | | | 13 | | | | 21 | |
| United Kingdom Gilt, 4.25%, 06/07/2032 § | | | 1.00 | | | | 12/20/2015 | | | DUB | | | 66.88 | | | | 900 | | | | 13 | | | | 17 | | | | (4 | ) |
| United Kingdom Gilt, 4.25%, 06/07/2032 § | | | 1.00 | | | | 06/20/2016 | | | CITI | | | 75.85 | | | | 1,000 | | | | 14 | | | | 12 | | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (66 | ) | | $ | (440 | ) | | $ | 374 | |
| | | | | | | | | | | | | | | | | | | | | | | |
CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION:(4)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Fixed Deal | | | | | | | | | | | | | | | | | | | Market | | | | | | | Unrealized | |
| | | Deal | | | | | | | | | | | | | | | Notional | | | Value | | | Premiums | | | Appreciation | |
| | | Receive | | | | | | | | | | | | | | | Amount | | | (000’s) | | | Paid | | | (Depreciation) | |
| Reference Obligation | | Rate | | | Maturity Date | | | Counterparty | | | Currency Code | | | (000’s)(3) | | | (5) | | | (Received) (000’s) | | | (000’s) | |
| |
| Emerging Markets Index — Series 14 | | | 5.00 | % | | | 12/20/2015 | | | RBS | | USD | | $ | 600 | | | $ | 58 | | | $ | 69 | | | $ | (11 | ) |
| Emerging Markets Index — Series 14 | | | 5.00 | | | | 12/20/2015 | | | CITI | | USD | | | 2,500 | | | | 240 | | | | 269 | | | | (29 | ) |
| Emerging Markets Index — Series 14 | | | 5.00 | | | | 12/20/2015 | | | UBS | | USD | | | 1,300 | | | | 125 | | | | 146 | | | | (21 | ) |
| Emerging Markets Index — Series 14 | | | 5.00 | | | | 12/20/2015 | | | DUB | | USD | | | 1,100 | | | | 105 | | | | 130 | | | | (25 | ) |
| Emerging Markets Index — Series 15 | | | 5.00 | | | | 06/20/2016 | | | BCLY | | USD | | | 8,900 | | | | 957 | | | | 1,063 | | | | (106 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 1,485 | | | $ | 1,677 | | | $ | (192 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
INTEREST RATE SWAP AGREEMENTS — FIXED RATE PAYABLE:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net
Unrealized | |
| | | | | | | | | | | | | | | | | | | Notional | | | | | | | Premiums | | | Appreciation | |
| | �� | Fixed | | | | | | | | | | | Currency | | | Amount | | | Market Value | | | Paid | | | (Depreciation) | |
| Floating Rate Index | | Rate | | | Maturity Date | | | Counterparty | | | Code | | | (000’s) | | | (000’s) | | | (Received) (000’s) | | | (000’s) | |
| |
| 3-Month EURIBOR | | | 1.85 | % | | | 10/15/2016 | | | UBS | | EUR | | | 3,000 | | | $ | (40 | ) | | $ | (2 | ) | | $ | (38 | ) |
| BRL-CDI | | | 10.12 | | | | 01/02/2012 | | | MSC | | BRL | | | 3,000 | | | | (63 | ) | | | (1 | ) | | | (62 | ) |
| BRL-CDI | | | 11.36 | | | | 01/02/2012 | | | HSBC | | BRL | | | 29,800 | | | | 312 | | | | ♦ | | | | 312 | |
| BRL-CDI | | | 11.63 | | | | 01/02/2012 | | | MSC | | BRL | | | 20,100 | | | | 112 | | | | (1 | ) | | | 113 | |
| BRL-CDI | | | 10.58 | | | | 01/02/2012 | | | UBS | | BRL | | | 13,000 | | | | (115 | ) | | | ♦ | | | | (115 | ) |
| BRL-CDI | | | 11.14 | | | | 01/02/2012 | | | HSBC | | BRL | | | 2,600 | | | | 31 | | | | 1 | | | | 30 | |
| BRL-CDI | | | 10.68 | | | | 01/02/2012 | | | BCLY | | BRL | | | 14,800 | | | | (93 | ) | | | (2 | ) | | | (91 | ) |
| BRL-CDI | | | 12.07 | | | | 01/02/2013 | | | UBS | | BRL | | | 14,900 | | | | 292 | | | | (21 | ) | | | 313 | |
| BRL-CDI | | | 11.89 | | | | 01/02/2013 | | | GSC | | BRL | | | 20,100 | | | | 345 | | | | 5 | | | | 340 | |
| BRL-CDI | | | 11.98 | | | | 01/02/2013 | | | MSC | | BRL | | | 5,300 | | | | 96 | | | | ♦ | | | | 96 | |
| BRL-CDI | | | 11.89 | | | | 01/02/2013 | | | HSBC | | BRL | | | 4,800 | | | | 82 | | | | 3 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 959 | | | $ | (18 | ) | | $ | 977 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 129 | | Annual Repot 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
SWAP AGREEMENTS: (continued) π
INTEREST RATE SWAP AGREEMENTS — FIXED RATE RECEIVABLE:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | | | Appreciation | |
| | | | | | | | | | | | | | | | | | | Notional Amount | | | | | | | Paid | | | (Depreciation) | |
| Floating Rate Index | | Fixed Rate | | | Maturity Date | | | Counterparty | | | Currency Code | | | (000’s) | | | Market Value (000’s) | | | (Received) (000’s) | | | (000’s) | |
| |
| 3-Month USD-LIBOR | | | 4.00 | % | | | 12/21/2041 | | | CSFB | | USD | | | 2,600 | | | $ | (550 | ) | | $ | (541 | ) | | $ | (9 | ) |
| BRL-CDI | | | 14.77 | | | | 01/02/2012 | | | HSBC | | BRL | | | 200 | | | | 13 | | | | 1 | | | | 12 | |
| BRL-CDI | | | 14.77 | | | | 01/02/2012 | | | MLP | | BRL | | | 1,100 | | | | 71 | | | | 1 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (466 | ) | | $ | (539 | ) | | $ | 73 | |
| | | | | | | | | | | | | | | | | | | |
FUTURES CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | Appreciation | |
| | | | | | | | | | | | | | | (Depreciation) | |
| Description | | Type | | | Contracts Г | | | Expiration Date | | | (000’s) | |
| |
| 3-Month EURIBOR | | Long | | | 19 | | | | 09/16/2013 | | | $ | (3 | ) |
| 3-Month EURIBOR | | Long | | | 38 | | | | 12/16/2013 | | | | (4 | ) |
| 3-Month EURIBOR | | Long | | | 19 | | | | 03/17/2014 | | | | 10 | |
| 90-Day Euro | | Long | | | 177 | | | | 03/18/2013 | | | | 227 | |
| 90-Day Euro | | Long | | | 51 | | | | 06/17/2013 | | | | 82 | |
| 90-Day Euro | | Long | | | 130 | | | | 09/16/2013 | | | | 166 | |
| 90-Day Euro | | Long | | | 695 | | | | 12/16/2013 | | | | 846 | |
| German Euro BUND | | Long | | | 66 | | | | 12/08/2011 | | | | (78 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 1,246 | |
| | | | | | | | | | | | | | | | |
FORWARD FOREIGN CURRENCY CONTRACTS: ◘
| | | | | | | | | | | | | | | | | | | |
| | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | RBC | | | (1,000 | ) | | | 11/10/2011 | | | $ | (1,015 | ) | | $ | (38 | ) |
| Australian Dollar | | RBC | | | (1,400 | ) | | | 11/10/2011 | | | | (1,357 | ) | | | (117 | ) |
| Australian Dollar | | DUB | | | (19,032 | ) | | | 11/10/2011 | | | | (18,549 | ) | | | (1,482 | ) |
| Australian Dollar | | CITI | | | (1,698 | ) | | | 11/10/2011 | | | | (1,656 | ) | | | (131 | ) |
| Brazilian Real | | DUB | | | (637 | ) | | | 11/03/2011 | | | | (392 | ) | | | 21 | |
| Brazilian Real | | CITI | | | (642 | ) | | | 11/03/2011 | | | | (397 | ) | | | 23 | |
| Brazilian Real | | HSBC | | | 170 | | | | 11/03/2011 | | | | 106 | | | | (8 | ) |
| Brazilian Real | | BCLY | | | 603 | | | | 11/03/2011 | | | | 365 | | | | (14 | ) |
| Brazilian Real | | HSBC | | | 336 | | | | 11/03/2011 | | | | 177 | | | | 18 | |
| Brazilian Real | | MSC | | | 170 | | | | 11/03/2011 | | | | 108 | | | | (9 | ) |
| Brazilian Real | | HSBC | | | (336 | ) | | | 01/04/2012 | | | | (175 | ) | | | (18 | ) |
| Canadian Dollar | | DUB | | | 950 | | | | 11/01/2011 | | | | 956 | | | | (3 | ) |
| Canadian Dollar | | RBC | | | 3,644 | | | | 11/17/2011 | | | | 3,620 | | | | 35 | |
| Canadian Dollar | | DUB | | | (950 | ) | | | 11/17/2011 | | | | (955 | ) | | | 2 | |
| Chinese Yuan Renminbi | | JPM | | | 2,169 | | | | 11/15/2011 | | | | 337 | | | | 4 | |
| Chinese Yuan Renminbi | | BCLY | | | 1,708 | | | | 11/15/2011 | | | | 266 | | | | 3 | |
| Chinese Yuan Renminbi | | JPM | | | 4,195 | | | | 11/15/2011 | | | | 653 | | | | 7 | |
| Chinese Yuan Renminbi | | CITI | | | 10,270 | | | | 11/15/2011 | | | | 1,581 | | | | 35 | |
| Chinese Yuan Renminbi | | DUB | | | 16,915 | | | | 02/13/2012 | | | | 2,611 | | | | 54 | |
| Euro | | BCLY | | | 876 | | | | 01/17/2012 | | | | 1,212 | | | | (♦ | ) |
| Euro | | DUB | | | 638 | | | | 01/17/2012 | | | | 889 | | | | (7 | ) |
| Euro | | MSC | | | 305 | | | | 01/17/2012 | | | | 425 | | | | (3 | ) |
| Euro | | JPM | | | (53,478 | ) | | | 01/17/2012 | | | | (72,712 | ) | | | (1,244 | ) |
| Indian Rupee | | JPM | | | 360,287 | | | | 07/12/2012 | | | | 7,751 | | | | (557 | ) |
| Indonesian Rupiah | | HSBC | | | 817,000 | | | | 01/31/2012 | | | | 93 | | | | (2 | ) |
| Indonesian Rupiah | | UBS | | | 17,885,600 | | | | 01/31/2012 | | | | 1,998 | | | | 3 | |
| Indonesian Rupiah | | DUB | | | 799,000 | | | | 01/31/2012 | | | | 92 | | | | (3 | ) |
| Indonesian Rupiah | | BOA | | | 1,559,800 | | | | 01/31/2012 | | | | 172 | | | | 3 | |
| Indonesian Rupiah | | UBS | | | 387,000 | | | | 01/31/2012 | | | | 44 | | | | (1 | ) |
| Japanese Yen | | DUB | | | (79,081 | ) | | | 01/13/2012 | | | | (1,030 | ) | | | 17 | |
| Malaysian Ringgit | | CITI | | | 643 | | | | 11/10/2011 | | | | 216 | | | | (6 | ) |
| Malaysian Ringgit | | UBS | | | 8,048 | | | | 04/23/2012 | | | | 2,649 | | | | (39 | ) |
| Mexican Peso | | MSC | | | (281 | ) | | | 11/18/2011 | | | | (20 | ) | | | (1 | ) |
| Mexican Peso | | MSC | | | 46,567 | | | | 11/18/2011 | | | | 3,970 | | | | (482 | ) |
| Mexican Peso | | MSC | | | (7,020 | ) | | | 11/18/2011 | | | | (500 | ) | | | (26 | ) |
| Mexican Peso | | UBS | | | (1,261 | ) | | | 11/18/2011 | | | | (90 | ) | | | (4 | ) |
| Mexican Peso | | HSBC | | | (36,740 | ) | | | 11/18/2011 | | | | (2,736 | ) | | | (16 | ) |
| Mexican Peso | | UBS | | | (1,265 | ) | | | 11/18/2011 | | | | (90 | ) | | | (5 | ) |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 130 | | Annual Repot 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS: (continued) ◘
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Mexican Peso | | HSBC | | | 36,740 | | | | 03/15/2012 | | | $ | 2,708 | | | $ | 15 | |
| Philippine Peso | | BCLY | | | 12,300 | | | | 11/15/2011 | | | | 279 | | | | 9 | |
| Philippine Peso | | BCLY | | | 9,628 | | | | 11/15/2011 | | | | 215 | | | | 11 | |
| Philippine Peso | | CITI | | | 24,300 | | | | 11/15/2011 | | | | 548 | | | | 21 | |
| Philippine Peso | | BCLY | | | 12,400 | | | | 11/15/2011 | | | | 280 | | | | 11 | |
| Philippine Peso | | BCLY | | | 29,200 | | | | 11/15/2011 | | | | 658 | | | | 26 | |
| Philippine Peso | | BCLY | | | 12,400 | | | | 11/15/2011 | | | | 279 | | | | 12 | |
| Philippine Peso | | CITI | | | 149,565 | | | | 03/15/2012 | | | | 3,449 | | | | 42 | |
| Pound Sterling | | GSC | | | (882 | ) | | | 12/08/2011 | | | | (1,410 | ) | | | (8 | ) |
| Pound Sterling | | CITI | | | (701 | ) | | | 12/08/2011 | | | | (1,107 | ) | | | (20 | ) |
| Pound Sterling | | JPM | | | (707 | ) | | | 12/08/2011 | | | | (1,114 | ) | | | (23 | ) |
| Pound Sterling | | BCLY | | | (603 | ) | | | 12/08/2011 | | | | (962 | ) | | | (7 | ) |
| Pound Sterling | | RBC | | | (424 | ) | | | 12/08/2011 | | | | (670 | ) | | | (11 | ) |
| Pound Sterling | | CITI | | | (1,413 | ) | | | 12/08/2011 | | | | (2,226 | ) | | | (45 | ) |
| Pound Sterling | | CITI | | | (643 | ) | | | 12/08/2011 | | | | (993 | ) | | | (40 | ) |
| Republic of Korea Won | | MSC | | | (1,377,600 | ) | | | 11/14/2011 | | | | (1,200 | ) | | | (43 | ) |
| Republic of Korea Won | | MSC | | | (2,395,921 | ) | | | 11/14/2011 | | | | (2,010 | ) | | | (152 | ) |
| Republic of Korea Won | | BCLY | | | (1,391,400 | ) | | | 11/14/2011 | | | | (1,200 | ) | | | (56 | ) |
| Republic of Korea Won | | MSC | | | (254,853 | ) | | | 11/14/2011 | | | | (235 | ) | | | 5 | |
| Republic of Korea Won | | JPM | | | 11,696,419 | | | | 11/14/2011 | | | | 10,978 | | | | (424 | ) |
| Singapore Dollar | | CITI | | | 4,187 | | | | 12/09/2011 | | | | 3,473 | | | | (136 | ) |
| Singapore Dollar | | RBS | | | 1,100 | | | | 12/09/2011 | | | | 910 | | | | (33 | ) |
| Singapore Dollar | | UBS | | | 200 | | | | 12/09/2011 | | | | 165 | | | | (6 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (4,843 | ) |
| | | | | | | | | | | | | | | | | | | | |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| BCLY | | $ | 892 | | | $ | (610 | ) | | $ | 282 | |
| BNP | | | (9 | ) | | | — | | | | (9 | ) |
| BOA | | | (68 | ) | | | — | | | | (68 | ) |
| CITI | | | (295 | ) | | | — | | | | (295 | ) |
| CSFB | | | (550 | ) | | | — | | | | (550 | ) |
| DUB | | | (1,080 | ) | | | 1,131 | | | | 51 | |
| GSC | | | 340 | | | | (290 | ) | | | 50 | |
| HSBC | | | 424 | | | | (240 | ) | | | 184 | |
| JPM | | | (2,237 | ) | | | 4,292 | | | | 2,055 | |
| MLP | | | 71 | | | | — | | | | 71 | |
| MSC | | | (616 | ) | | | (145 | ) | | | (761 | ) |
| RBC | | | (131 | ) | | | — | | | | (131 | ) |
| RBS | | | (12 | ) | | | — | | | | (12 | ) |
| UBS | | | 210 | | | | (260 | ) | | | (50 | ) |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $41,149. |
| |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| Ə | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of $1,844, or 0.19%, of the fund’s net assets. |
| |
| Ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| § | | Illiquid. These securities aggregated to $1,275, or 0.13%, of the fund’s net assets, and illiquid derivatives aggregated to $88, or 0.01%, of the fund’s net assets. |
| |
| Π | | Aggregate cost for federal income tax purposes is $1,163,194. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $52,926 and $10,770, respectively. Net unrealized appreciation for tax purposes is $42,156. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| Г | | Contract amounts are not in thousands. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 131 | | Annual Repot 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands)(continued):
| | |
| (1) | | If the fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (a) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (b) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| |
| (2) | | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/perform ance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. |
| |
| (3) | | The maximum potential amount the fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| |
| (4) | | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (a) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (b) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| |
| (5) | | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period ended. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the references entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
| |
| γ | | A portion of these securities in the amount of $1,240 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| α | | A portion of these securities in the amount of $5,423 has been segregated as collateral with the custodian for open swaps contracts and/or swaptions. |
| |
| π | | Cash in the amount of $1,470 is pledged by the broker as collateral with the custodian for open swap contracts and/or swaptions. |
| |
| ◘ | | Cash in the amount of $75 is segregated as collateral by the broker to cover open forward foreign currency contracts. |
| |
| • | | A portion of this security in the amount of $10,803 has been segregated as collateral with the broker to cover the open reverse repurchase agreement. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $107,451, or 11.06%, of the fund’s net assets. |
BCLY | | Barclays Bank PLC |
BNP | | BNP Paribas Bank |
BOA | | Bank of America |
BP | | Basis Point |
CDI | | Credit Default Index |
CITI | | Citibank, Inc. |
CLO | | Collateralized Loan Obligation |
CPURNSA | | Consumer Price All Urban Non-Seasonally Adjusted Index |
CSFB | | Credit Suisse First Boston |
DUB | | Deutsche Bank AG |
EURIBOR | | Euro InterBank Offered Rate |
FVA | | Forward Volatility Agreement |
GSC | | Goldman Sachs & Co. |
HSBC | | HSBC Bank USA |
IRO | | Interest Rate Option |
JPM | | JPMorgan Chase & Co. |
LIBOR | | London Interbank Offered Rate |
MLP | | Merrill Lynch |
MSC | | Morgan Stanley |
OTC | | Over the Counter |
RBC | | Royal Bank of Canada |
RBS | | Royal Bank of Scotland PLC |
UBS | | UBS Warburg LLC |
| | | |
|
| CURRENCY ABBREVIATIONS: |
AUD | | Australian Dollar |
BRL | | Brazilian Real |
CAD | | Canadian Dollar |
EUR | | Euro |
GBP | | Pound Sterling |
USD | | United States Dollar |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 132 | | Annual Repot 2011 |
Transamerica PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Asset-Backed Securities | | $ | — | | | $ | 11,228 | | | $ | — | | | $ | 11,228 | |
| Commercial Paper | | | — | | | | 250 | | | | — | | | | 250 | |
| |
| Convertible Preferred Stock | | | 422 | | | | — | | | | — | | | | 422 | |
| |
| Corporate Debt Securities | | | — | | | | 167,041 | | | | — | | | | 167,041 | |
| |
| Foreign Government Obligations | | | — | | | | 43,278 | | | | — | | | | 43,278 | |
| |
| Loan Assignments | | | — | | | | 6,018 | | | | — | | | | 6,018 | |
| |
| Mortgage-Backed Securities | | | — | | | | 36,036 | | | | — | | | | 36,036 | |
| |
| Municipal Government Obligations | | | — | | | | 1,149 | | | | — | | | | 1,149 | |
| |
| Preferred Corporate Debt Security | | | — | | | | 1,605 | | | | — | | | | 1,605 | |
| |
| Purchased Swaptions | | | — | | | | 664 | | | | — | | | | 664 | |
| |
| Repurchase Agreement | | | — | | | | 1,499 | | | | — | | | | 1,499 | |
| |
| Securities Lending Collateral | | | 42,016 | | | | — | | | | — | | | | 42,016 | |
| |
| Short-Term U.S. Government Obligations | | | — | | | | 1,004 | | | | — | | | | 1,004 | |
| |
| U.S. Government Agency Obligations | | | — | | | | 4,863 | | | | — | | | | 4,863 | |
| |
| U.S. Government Obligations | | | — | | | | 888,277 | | | | — | | | | 888,277 | |
| | | |
Total | | $ | 42,438 | | | $ | 1,162,912 | | | $ | — | | | $ | 1,205,350 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Inflation Floor Options | | $ | — | | | $ | (61 | ) | | $ | — | | | $ | (61 | ) |
| |
| Reverse Repurchase Agreement | | | — | | | | (10,658 | ) | | | — | | | | (10,658 | ) |
| |
| Written Swaptions | | | — | | | | (970 | ) | | | — | | | | (970 | ) |
| | | |
Total | | $ | — | | | $ | 11,689 | | | $ | — | | | $ | 11,689 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Total at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Futures Contracts — Appreciation | | $ | 1,331 | | | $ | — | | | $ | — | | | $ | 1,331 | |
| |
| Futures Contracts — Depreciation | | | (85 | ) | | | — | | | | — | | | | (85 | ) |
| |
| Credit Default Swap — Appreciation | | | | | | | 624 | | | | — | | | | 624 | |
| |
| Credit Default Swap — Depreciation | | | — | | | | (870 | ) | | | — | | | | (870 | ) |
| |
| Forward Contracts — Appreciation | | | — | | | | 377 | | | | — | | | | 377 | |
| |
| Forward Contracts — Depreciation | | | — | | | | (5,220 | ) | | | — | | | | (5,220 | ) |
| |
| Interest Rate Swaps — Appreciation | | | — | | | | 1,365 | | | | — | | | | 1,365 | |
| |
| Interest Rate Swaps — Depreciation | | | — | | | | (315 | ) | | | — | | | | (315 | ) |
| | | |
Total | | $ | 1,246 | | | $ | (4,039 | ) | | $ | — | | | $ | (2,793 | ) |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | | |
| | | | | |
| Transamerica Funds | | Page 133 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
U.S. GOVERNMENT OBLIGATIONS — 12.1% | | | | | | | | |
| U.S. Treasury Bond | | | | | | | | |
| 2.13%, 08/15/2021 ^ | | $ | 7,000 | | | $ | 6,969 | |
| 3.13%, 05/15/2021 | | | 3,300 | | | | 3,587 | |
| 3.63%, 02/15/2021 ^ | | | 5,000 | | | | 5,662 | |
| 3.75%, 08/15/2041 ^ | | | 10,200 | | | | 11,271 | |
| 3.88%, 08/15/2040 | | | 7,200 | | | | 8,121 | |
| 4.38%, 02/15/2038 | | | 700 | | | | 855 | |
| 4.38%, 05/15/2041 ^ | | | 3,800 | | | | 4,665 | |
| 7.50%, 11/15/2024 ^ | | | 1,400 | | | | 2,172 | |
| U.S. Treasury Inflation Indexed Bond | | | | | | | | |
1.13%, 01/15/2021 g | | | 11,805 | | | | 12,981 | |
| 2.13%, 02/15/2041 | | | 2,896 | | | | 3,826 | |
| U.S. Treasury Note | | | | | | | | |
| 2.38%, 05/31/2018 α | | | 15,000 | | | | 15,832 | |
| | | | | | | | |
Total U.S. Government Obligations (cost $71,690) | | | | | | | 75,941 | |
| | | | | | | | |
| | | | | | | | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS — 49.7% | | | | | | | | |
| Fannie Mae | | | | | | | | |
| 0.34%, 01/25/2021 * | | | 279 | | | | 279 | |
| 0.59%, 09/25/2042 * | | | 371 | | | | 369 | |
| 1.43%, 03/01/2044 — 10/01/2044 * | | | 1,568 | | | | 1,603 | |
| 2.12%, 07/01/2035 * | | | 401 | | | | 416 | |
| 2.17%, 09/01/2035 * | | | 703 | | | | 728 | |
| 2.33%, 01/01/2026 * | | | 3 | | | | 4 | |
| 2.41%, 01/01/2028 * | | | 45 | | | | 47 | |
| 2.44%, 11/01/2033 * | | | 180 | | | | 189 | |
| 2.45%, 03/01/2034 * | | | 287 | | | | 301 | |
| 3.50%, 12/01/2040 — 04/01/2041 | | | 11,931 | | | | 12,138 | |
| 4.00%, 04/01/2024 — 04/01/2041 | | | 70,669 | | | | 73,934 | |
| 4.50%, 12/01/2024 — 05/01/2041 | | | 27,965 | | | | 29,615 | |
| 5.00%, 08/01/2020 — 01/01/2030 | | | 6,957 | | | | 7,497 | |
| 5.50%, 01/01/2035 — 03/01/2037 | | | 14,887 | | | | 16,199 | |
| 6.00%, 07/01/2038 — 09/01/2038 | | | 2,363 | | | | 2,594 | |
| 6.30%, 10/17/2038 | | | 537 | | | | 598 | |
| Fannie Mae, IO | | | | | | | | |
| 6.86%, 07/25/2034 * § | | | 1,842 | | | | 318 | |
| Fannie Mae, TBA | | | | | | | | |
| 3.00% | | | 1,000 | | | | 1,021 | |
| 3.50% | | | 104,000 | | | | 107,635 | |
| 4.00% | | | 16,000 | | | | 16,823 | |
| 4.50% | | | 13,000 | | | | 13,745 | |
| Freddie Mac | | | | | | | | |
| 1.43%, 10/25/2044 * | | | 434 | | | | 419 | |
| 1.64%, 07/25/2044 * | | | 444 | | | | 446 | |
| 2.10%, 09/01/2035 * | | | 50 | | | | 52 | |
| 2.36%, 11/01/2033 * | | | 161 | | | | 167 | |
| 2.37%, 03/01/2034 * | | | 178 | | | | 186 | |
| 2.44%, 01/01/2036 * | | | 2,888 | | | | 3,031 | |
| 2.48%, 03/01/2034 * | | | 185 | | | | 194 | |
| 2.62%, 09/01/2035 * | | | 755 | | | | 799 | |
| 4.00%, 01/01/2041 | | | 4,821 | | | | 5,010 | |
| 4.50%, 06/15/2017 — 09/15/2018 | | | 489 | | | | 497 | |
| 5.00%, 02/15/2020 — 08/15/2020 | | | 895 | | | | 923 | |
| 5.50%, 03/15/2017 | | | 11 | | | | 11 | |
| 6.50%, 04/15/2029 — 07/25/2043 | | | 27 | | | | 31 | |
| Ginnie Mae | | | | | | | | |
| 2.38%, 05/20/2024 * | | | 47 | | | | 48 | |
| 6.50%, 06/20/2032 | | | 27 | | | | 30 | |
| Ginnie Mae, IO | | | | | | | | |
| 6.32%, 04/16/2033 — 10/16/2033 * § | | | 1,570 | | | | 293 | |
| 6.36%, 08/16/2033 — 09/20/2034 * § | | | 3,669 | | | | 717 | |
| Overseas Private Investment Corp. | | | | | | | | |
| Zero Coupon, 12/10/2012 Ə § | | | 2,600 | | | | 2,700 | |
| 0.01%, 05/02/2013 ▲ § | | | 9,320 | | | | 9,419 | |
| U.S. Small Business Administration | | | | | | | | |
| 4.50%, 02/01/2014 | | | 39 | | | | 41 | |
| | | | | | | | |
Total U.S. Government Agency Obligations (cost $304,276) | | | | | | | 311,067 | |
| | | | | | | | |
| | | | | | | | | |
FOREIGN GOVERNMENT OBLIGATIONS — 16.7% | | | | | | | | |
| Australia Government Bond | | | | | | | | |
| 4.75%, 06/15/2016 | | AUD12,900 | | | 13,992 | |
| 5.25%, 03/15/2019 | | | 15,900 | | | | 17,716 | |
| 5.50%, 12/15/2013 — 01/21/2018 | | | 15,000 | | | | 16,644 | |
| 6.00%, 02/15/2017 | | | 4,000 | | | | 4,591 | |
| Bundesrepublik Deutschland | | | | | | | | |
| 4.25%, 07/04/2018 | | EUR4,500 | | | 7,285 | |
| Canadian Government Bond | | | | | | | | |
| 1.50%, 03/01/2012 | | CAD8,100 | | | 8,142 | |
| 1.75%, 03/01/2013 | | | 5,300 | | | | 5,372 | |
| 2.25%, 08/01/2014 | | | 20,200 | | | | 20,847 | |
| Export-Import Bank of Korea | | | | | | | | |
| 8.13%, 01/21/2014 | | $ | 3,300 | | | | 3,666 | |
| Korea Expressway Corp. | | | | | | | | |
| 5.13%, 05/20/2015 — 144A | | | 200 | | | | 211 | |
| Republic of Brazil | | | | | | | | |
| 10.25%, 01/10/2028 | | BRL1,000 | | | 648 | |
| United Kingdom Gilt | | | | | | | | |
| 4.25%, 03/07/2036 — 12/07/2040 | | GBP2,900 | | | 5,377 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $100,081) | | | | | | | 104,491 | |
| | | | | | | | |
| | | | | | | | | |
MORTGAGE-BACKED SECURITIES — 7.3% | | | | | | | | |
| American Home Mortgage Assets | | | | | | | | |
| Series 2006-2, Class 2A1 | | | | | | | | |
| 0.43%, 09/25/2046 * | | $ | 934 | | | | 457 | |
| Series 2006-4, Class 1A12 | | | | | | | | |
| 0.45%, 10/25/2046 * | | | 2,129 | | | | 906 | |
| Banc of America Funding Corp. | | | | | | | | |
| Series 2005-D, Class A1 | | | | | | | | |
| 2.71%, 05/25/2035 * | | | 878 | | | | 872 | |
| Series 2006-J, Class 4A1 | | | | | | | | |
| 5.74%, 01/20/2047 * | | | 111 | | | | 72 | |
| Banc of America Merrill Lynch Commercial Mortgage, Inc. | | | | | | | | |
| Series 2007-1, Class A4 | | | | | | | | |
| 5.45%, 01/15/2049 | | | 200 | | | | 215 | |
| Bear Stearns Adjustable Rate Mortgage Trust | | | | | | | | |
| Series 2003-5, Class 2A1 | | | | | | | | |
| 2.60%, 08/25/2033 * | | | 749 | | | | 705 | |
| Series 2003-8, Class 2A1 | | | | | | | | |
| 2.85%, 01/25/2034 * | | | 17 | | | | 16 | |
| Series 2003-8, Class 4A1 | | | | | | | | |
| 2.84%, 01/25/2034 * | | | 135 | | | | 125 | |
| Series 2005-2, Class A2 | | | | | | | | |
| 2.73%, 03/25/2035 * | | | 569 | | | | 536 | |
| Series 2005-5, Class A2 | | | | | | | | |
| 2.25%, 08/25/2035 * | | | 254 | | | | 233 | |
| Bear Stearns Alt-A Trust | | | | | | | | |
| Series 2005-7, Class 22A1 | | | | | | | | |
| 2.77%, 09/25/2035 * | | | 300 | | | | 199 | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 134 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Bear Stearns Alt-A Trust (continued) | | | | | | | | |
| Series 2006-6, Class 32A1 | | | | | | | | |
| 2.84%, 11/25/2036 * | | $ | 345 | | | $ | 172 | |
| Bear Stearns Structured Products, Inc. | | | | | | | | |
| Series 2007-R6, Class 1A1 | | | | | | | | |
| 2.56%, 01/26/2036 * | | | 301 | | | | 176 | |
| CC Mortgage Funding Corp. | | | | | | | | |
| Series 2004-3A, Class A1 | | | | | | | | |
| 0.49%, 08/25/2035 — 144A * | | | 222 | | | | 141 | |
| Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
| Series 2005-6, Class A2 | | | | | | | | |
| 2.45%, 08/25/2035 * | | | 310 | | | | 254 | |
| Series 2007-10, Class 22AA | | | | | | | | |
| 5.49%, 09/25/2037 * | | | 2,036 | | | | 1,172 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
| Series 2006-CD3, Class A5 | | | | | | | | |
| 5.62%, 10/15/2048 | | | 330 | | | | 358 | |
| Series 2007-CD5, Class A4 | | | | | | | | |
| 5.89%, 11/15/2044 * | | | 200 | | | | 218 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
| Series 2003-J1, Class 4A1 | | | | | | | | |
| 6.00%, 10/25/2032 | | | 2 | | | | 2 | |
| Series 2005-81, Class A1 | | | | | | | | |
| 0.52%, 02/25/2037 * | | | 654 | | | | 306 | |
| Series 2006-30T1, Class 1A3 | | | | | | | | |
| 6.25%, 11/25/2036 | | | 441 | | | | 323 | |
| Series 2006-J8, Class A2 | | | | | | | | |
| 6.00%, 02/25/2037 | | | 404 | | | | 253 | |
| Series 2006-OA17, Class 1A1A | | | | | | | | |
| 0.44%, 12/20/2046 * | | | 2,514 | | | | 1,208 | |
| Series 2007-2CB, Class 1A13 | | | | | | | | |
| 5.75%, 03/25/2037 * | | | 682 | | | | 461 | |
| Series 2007-HY4, Class 1A1 | | | | | | | | |
| 2.89%, 06/25/2037 * | | | 1,161 | | | | 698 | |
| Series 2007-OA6, Class A1B | | | | | | | | |
| 0.44%, 06/25/2037 * | | | 1,156 | | | | 698 | |
| Countrywide Home Loan Mortgage Pass- Through Trust | | | | | | | | |
| Series 2002-30, Class M | | | | | | | | |
| 2.68%, 10/19/2032 * | | | 16 | | | | 11 | |
| Series 2004-12, Class 12A1 | | | | | | | | |
| 2.78%, 08/25/2034 * | | | 432 | | | | 326 | |
| Series 2004-R1, Class 2A | | | | | | | | |
| 6.50%, 11/25/2034 — 144A | | | 579 | | | | 579 | |
| Series 2005-R2, Class 1AF1 | | | | | | | | |
| 0.58%, 06/25/2035 — 144A * | | | 1,479 | | | | 1,278 | |
| Credit Suisse First Boston Mortgage Securities Corp. | | | | | | | | |
| Series 2002-P1A, Class A | | | | | | | | |
| 0.83%, 03/25/2032 — 144A * | | | 1 | | | | ♦ | |
| Series 2003-AR15, Class 2A1 | | | | | | | | |
| 2.43%, 06/25/2033 * | | | 927 | | | | 846 | |
| Deutsche ALT-A Securities, Inc., | | | | | | | | |
| Alternate Loan Trust | | | | | | | | |
| Series 2005-6, Class 2A3 | | | | | | | | |
| 5.50%, 12/25/2035 | | | 869 | | | | 616 | |
| First Horizon Alternative Mortgage Securities | | | | | | | | |
| Series 2007-FA4, Class 1A8 | | | | | | | | |
| 6.25%, 08/25/2037 | | | 406 | | | | 255 | |
| First Horizon Asset Securities, Inc. | | | | | | | | |
| Series 2005-AR3, Class 2A1 | | | | | | | | |
| 2.75%, 08/25/2035 * | | | 73 | | | | 57 | |
| GS Mortgage Securities Corp. II | | | | | | | | |
| Series 2007-EOP, Class A1 | | | | | | | | |
| 1.14%, 03/06/2020 — 144A * | | | 739 | | | | 732 | |
| GSR Mortgage Loan Trust | | | | | | | | |
| Series 2005-AR6, Class 2A1 | | | | | | | | |
| 2.73%, 09/25/2035 * | | | 134 | | | | 120 | |
| Harborview Mortgage Loan Trust | | | | | | | | |
| Series 2006-1, Class 2A1A | | | | | | | | |
| 0.48%, 03/19/2036 * | | | 1,614 | | | | 891 | |
| Series 2006-6, Class 5A1A | | | | | | | | |
| 5.35%, 08/19/2036 * | | | 603 | | | | 390 | |
| Series 2006-12, Class 2A2A | | | | | | | | |
| 0.43%, 01/19/2038 * | | | 1,071 | | | | 626 | |
| Series 2007-1, Class 2A1A | | | | | | | | |
| 0.37%, 04/19/2038 * | | | 1,122 | | | | 669 | |
| IndyMac Index Mortgage Loan Trust | | | | | | | | |
| Series 2004-AR11, Class 2A | | | | | | | | |
| 2.65%, 12/25/2034 * | | | 45 | | | | 31 | |
| JPMorgan Mortgage Trust | | | | | | | | |
| Series 2005-A1, Class 6T1 | | | | | | | | |
| 5.02%, 02/25/2035 * | | | 155 | | | | 149 | |
| Series 2007-A1, Class 5A5 | | | | | | | | |
| 2.81%, 07/25/2035 * | | | 779 | | | | 715 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
| Series 2007-C7, Class A3 | | | | | | | | |
| 5.87%, 09/15/2045 * | | | 1,900 | | | | 2,017 | |
| Luminent Mortgage Trust | | | | | | | | |
| Series 2006-6, Class 2A1 | | | | | | | | |
| 0.44%, 10/25/2046 * | | | 633 | | | | 374 | |
| MASTR Alternative Loans Trust | | | | | | | | |
| Series 2006-2, Class 2A1 | | | | | | | | |
| 0.64%, 03/25/2036 * | | | 138 | | | | 32 | |
| Mellon Residential Funding Corp. | | | | | | | | |
| Series 2000-TBC3, Class A1 | | | | | | | | |
| 0.68%, 12/15/2030 * | | | 308 | | | | 281 | |
| MLCC Mortgage Investors, Inc. | | | | | | | | |
| Series 2005-2, Class 3A | | | | | | | | |
| 1.24%, 10/25/2035 * | | | 42 | | | | 33 | |
| Series 2005-3, Class 4A | | | | | | | | |
| 0.49%, 11/25/2035 * | | | 39 | | | | 32 | |
| Series 2005-A10, Class A | | | | | | | | |
| 0.45%, 02/25/2036 * | | | 184 | | | | 120 | |
| Morgan Stanley Capital I | | | | | | | | |
| Series 2007-IQ15, Class A4 | | | | | | | | |
| 5.88%, 06/11/2049 * | | | 100 | | | | 108 | |
| Series 2007-XLFA, Class A1 | | | | | | | | |
| 0.30%, 10/15/2020 — 144A * | | | 277 | | | | 273 | |
| Permanent Master Issuer PLC | | | | | | | | |
| Series 2011-1A, Class 1A1 | | | | | | | | |
| 1.80%, 07/15/2042 — 144A * | | | 2,100 | | | | 2,098 | |
| Series 2011-1A, Class 1A3 | | | | | | | | |
| 2.87%, 07/15/2042 — 144A * | | | 4,200 | | | | 5,795 | |
| Residential Accredit Loans, Inc. | | | | | | | | |
| Series 2006-QO6, Class A1 | | | | | | | | |
| 0.42%, 06/25/2046 * | | | 314 | | | | 102 | |
| Residential Asset Securitization Trust | | | | | | | | |
| Series 2006-R1, Class A2 | | | | | | | | |
| 0.64%, 01/25/2046 * | | | 316 | | | | 132 | |
| Residential Funding Mortgage Securities I | | | | | | | | |
| Series 2003-S9, Class A1 | | | | | | | | |
| 6.50%, 03/25/2032 | | | 3 | | | | 3 | |
| RMAC Securities PLC | | | | | | | | |
| Series 2007-NS1X, Class A2B | | | | | | | | |
| 0.49%, 06/12/2044 * | | | 3,800 | | | | 2,934 | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 135 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
MORTGAGE-BACKED SECURITIES (continued) | | | | | | | | |
| Sequoia Mortgage Trust | | | | | | | | |
| Series 10, Class 2A1 | | | | | | | | |
| 1.00%, 10/20/2027 * | | $ | 47 | | | $ | 40 | |
| Series 2007-1, Class 1A1 | | | | | | | | |
| 2.42%, 01/20/2047 * | | | 700 | | | | 467 | |
| Structured Adjustable Rate Mortgage Loan Trust | | | | | | | | |
| Series 2004-19, Class 2A1 | | | | | | | | |
| 1.63%, 01/25/2035 * | | | 202 | | | | 118 | |
| Structured Asset Mortgage Investments, Inc. | | | | | | | | |
| Series 2002-AR3, Class A1 | | | | | | | | |
| 0.90%, 09/19/2032 * | | | 21 | | | | 17 | |
| Series 2005-AR5, Class A1 | | | | | | | | |
| 0.49%, 07/19/2035 * | | | 39 | | | | 25 | |
| Series 2005-AR5, Class A2 | | | | | | | | |
| 0.49%, 07/19/2035 * | | | 70 | | | | 55 | |
| Series 2005-AR5, Class A3 | | | | | | | | |
| 0.49%, 07/19/2035 * | | | 129 | | | | 106 | |
| Series 2005-AR8, Class A1A | | | | | | | | |
| 0.52%, 02/25/2036 * | | | 555 | | | | 280 | |
| Series 2006-AR3, Class 12A1 | | | | | | | | |
| 0.46%, 05/25/2036 * | | | 647 | | | | 323 | |
| Series 2006-AR6, Class 2A1 | | | | | | | | |
| 0.43%, 07/25/2046 * | | | 2,316 | | | | 1,194 | |
| Structured Asset Securities Corp. | | | | | | | | |
| Series 2003-22A, Class 2A1 | | | | | | | | |
| 2.48%, 06/25/2033 * | | | 1,076 | | | | 945 | |
| Thornburg Mortgage Securities Trust | | | | | | | | |
| Series 2006-6, Class A1 | | | | | | | | |
| 0.35%, 11/25/2046 * | | | 477 | | | | 475 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
| Series 2006-WL7A, Class A1 | | | | | | | | |
| 0.33%, 09/15/2021 — 144A * | | | 813 | | | | 766 | |
| WaMu Mortgage Pass-Through Certificates | | | | | | | | |
| Series 2002-AR2, Class A | | | | | | | | |
| 2.57%, 02/27/2034 * | | | 20 | | | | 19 | |
| Series 2002-AR9, Class 1A | | | | | | | | |
| 1.63%, 08/25/2042 * | | | 10 | | | | 8 | |
| Series 2003-AR5, Class A7 | | | | | | | | |
| 2.58%, 06/25/2033 * | | | 690 | | | | 658 | |
| Series 2003-AR9, Class 2A | | | | | | | | |
| 2.55%, 09/25/2033 * | | | 1,323 | | | | 1,259 | |
| Series 2005-AR11, Class A1A | | | | | | | | |
| 0.56%, 08/25/2045 * | | | 588 | | | | 440 | |
| Series 2006-AR9, Class 2A | | | | | | | | |
| 2.82%, 08/25/2046 * | | | 582 | | | | 394 | |
| Series 2006-AR19, Class 1A | | | | | | | | |
| 0.97%, 01/25/2047 * | | | 1,076 | | | | 551 | |
| Series 2006-AR19, Class 1A1A | | | | | | | | |
| 0.96%, 01/25/2047 * | | | 916 | | | | 516 | |
| Series 2007-HY1, Class 4A1 | | | | | | | | |
| 2.63%, 02/25/2037 * | | | 2,135 | | | | 1,439 | |
| Series 2007-OA1, Class A1A | | | | | | | | |
| 0.93%, 02/25/2047 * | | | 2,320 | | | | 1,201 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
| Series 2003-13, Class A5 | | | | | | | | |
| 4.50%, 11/25/2018 | | | 135 | | | | 137 | |
| Series 2004-CC, Class A1 | | | | | | | | |
| 4.72%, 01/25/2035 * | | | 230 | | | | 213 | |
| Series 2006-AR4, Class 2A6 | | | | | | | | |
| 5.62%, 04/25/2036 * | | | 226 | | | | 96 | |
| Series 2006-AR8, Class 2A4 | | | | | | | | |
| 2.70%, 04/25/2036 * | | | 446 | | | | 378 | |
| | | | | | | | |
Total Mortgage-Backed Securities (cost $53,413) | | | | | | | 45,521 | |
| | | | | | | | |
| | | | | | | | | |
ASSET-BACKED SECURITIES - 4.8% | | | | | | | | |
| ACE Securities Corp. | | | | | | | | |
| Series 2006-NC3, Class A2A | | | | | | | | |
| 0.29%, 12/25/2036 * | | | 36 | | | | 35 | |
| Amortizing Residential Collateral Trust | | | | | | | | |
| Series 2002-BC4, Class A | | | | | | | | |
| 0.82%, 07/25/2032 * | | | 4 | | | | 3 | |
| Asset Backed Funding Certificates | | | | | | | | |
| Series 2004-OPT5, Class A1 | | | | | | | | |
| 0.59%, 06/25/2034 * | | | 383 | | | | 274 | |
| Bear Stearns Asset Backed Securities Trust | | | | | | | | |
| Series 2002-2, Class A1 | | | | | | | | |
| 0.90%, 10/25/2032 * | | | 14 | | | | 12 | |
| Series 2006-SD4, Class 1A1 | | | | | | | | |
| 3.04%, 10/25/2036 * | | | 815 | | | | 559 | |
| Series 2007-AQ1, Class A1 | | | | | | | | |
| 0.35%, 11/25/2036 * | | | 822 | | | | 551 | |
| Chester Asset Receivables Dealings | | | | | | | | |
| Series 2004-1, Class A | | | | | | | | |
| 1.04%, 04/15/2016 * | | | 3,700 | | | | 5,815 | |
| Citigroup Mortgage Loan Trust, Inc. | | | | | | | | |
| Series 2007-AHL1, Class A2A | | | | | | | | |
| 0.28%, 12/25/2036 * | | | 195 | | | | 189 | |
| Countrywide Asset-Backed Certificates | | | | | | | | |
| Series 2007-1, Class 2A1 | | | | | | | | |
| 0.29%, 07/25/2037 * | | | 275 | | | | 268 | |
| Series 2007-7, Class 2A1 | | | | | | | | |
| 0.32%, 10/25/2047 * | | | 36 | | | | 36 | |
| Credit-Based Asset Servicing and Securitization LLC | | | | | | | | |
| Series 2007-CB1, Class AF1A | | | | | | | | |
| 0.31%, 01/25/2037 * | | | 453 | | | | 93 | |
| First Franklin Mortgage Loan Asset Backed Certificates | | | | | | | | |
| Series 2005-FF1, Class A2C | | | | | | | | |
| 0.61%, 12/25/2034 * | | | 15 | | | | 14 | |
| Gazprom OAO Via GAZ Capital SA | | | | | | | | |
| 6.51%, 03/07/2022 | | | 3,500 | | | | 3,675 | |
| 8.15%, 04/11/2018 - 144A ^ | | | 1,000 | | | | 1,164 | |
| Series 2 | | | | | | | | |
| 8.63%, 04/28/2034 | | | 1,500 | | | | 1,860 | |
| Harbourmaster CLO, Ltd. | | | | | | | | |
| Series 5A, Class A1 | | | | | | | | |
| 1.79%, 06/15/2020 - 144A * Ə | | | 653 | | | | 840 | |
| Home Equity Asset Trust | | | | | | | | |
| Series 2002-1, Class A4 | | | | | | | | |
| 0.84%, 11/25/2032 * | | | 1 | | | | 1 | |
| JPMorgan Mortgage Acquisition Corp. | | | | | | | | |
| Series 2007-CH3, Class A5 | | | | | | | | |
| 0.50%, 03/25/2037 * | | | 3,500 | | | | 1,148 | |
| Mid-State Trust | | | | | | | | |
| Series 4, Class A | | | | | | | | |
| 8.33%, 04/01/2030 | | | 174 | | | | 175 | |
| Morgan Stanley Home Equity Loans | | | | | | | | |
| Series 2007-1, Class A1 | | | | | | | | |
| 0.29%, 12/25/2036 * | | | 55 | | | | 54 | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 136 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
ASSET-BACKED SECURITIES (continued) | | | | | | | | |
| Morgan Stanley Mortgage Loan Trust | | | | | | | | |
| Series 2007-3XS, Class 2A1A | | | | | | | | |
| 0.31%, 01/25/2047 * | | $ | 137 | | | $ | 115 | |
| Series 2007-8XS, Class A1 | | | | | | | | |
| 5.75%, 04/25/2037 * | | | 373 | | | | 260 | |
| Series 2007-10XS, Class A1 | | | | | | | | |
| 6.00%, 07/25/2047 * | | | 351 | | | | 232 | |
| New Century Home Equity Loan Trust | | | | | | | | |
| Series 2006-1, Class A2B | | | | | | | | |
| 0.42%, 05/25/2036 * | | | 161 | | | | 82 | |
| Park Place Securities, Inc. | | | | | | | | |
| Series 2005-WCW1, Class A1B | | | | | | | | |
| 0.50%, 09/25/2035 * | | | 77 | | | | 67 | |
| Penarth Master Issuer PLC | | | | | | | | |
| Series 2011-1A, Class A1 | | | | | | | | |
| 0.89%, 05/18/2015 — 144A * | | | 3,700 | | | | 3,705 | |
| Plymouth Rock CLO, Ltd./Inc. | | | | | | | | |
| Series 2010-1A, Class A | | | | | | | | |
| 1.79%, 02/16/2019 — 144A * | | | 2,736 | | | | 2,703 | |
| Securitized Asset Backed Receivables LLC Trust | | | | | | | | |
| Series 2007-HE1, Class A2A | | | | | | | | |
| 0.30%, 12/25/2036 * | | | 85 | | | | 24 | |
| Small Business Administration Participation Certificates | | | | | | | | |
| Series 2003-20I, Class 1 | | | | | | | | |
| 5.13%, 09/01/2023 | | | 43 | | | | 47 | |
| Series 2004-20C, Class 1 | | | | | | | | |
| 4.34%, 03/01/2024 | | | 276 | | | | 296 | |
| Structured Asset Securities Corp. | | | | | | | | |
| Series 2002-HF1, Class A | | | | | | | | |
| 0.82%, 01/25/2033 * | | | 3 | | | | 3 | |
| Series 2006-BC6, Class A2 | | | | | | | | |
| 0.32%, 01/25/2037 * | | | 113 | | | | 111 | |
| Venture CDO, Ltd. | | | | | | | | |
| Series 2007-8A, Class A2A | | | | | | | | |
| 0.64%, 07/22/2021 — 144A * | | | 6,000 | | | | 5,531 | |
| | | | | | | | |
Total Asset-Backed Securities (cost $30,890) | | | | | | | 29,942 | |
| | | | | | | | |
| | | | | | | | | |
MUNICIPAL GOVERNMENT OBLIGATIONS — 6.5% | | | | | | | | |
| Buckeye Tobacco Settlement Financing Authority | | | | | | | | |
| 5.88%, 06/01/2047 | | | 600 | | | | 424 | |
| Chicago Board of Education — Class A | | | | | | | | |
| 5.00%, 12/01/2012 | | | 255 | | | | 268 | |
| Chicago Transit Authority — Class A | | | | | | | | |
| 6.90%, 12/01/2040 | | | 4,900 | | | | 5,686 | |
| Chicago Transit Authority — Class B | | | | | | | | |
| 6.90%, 12/01/2040 | | | 2,700 | | | | 3,133 | |
| City of Chicago, IL — Series A | | | | | | | | |
| 4.75%, 01/01/2036 | | | 6,930 | | | | 6,932 | |
| Kentucky State Property & Building Commission | | | | | | | | |
| 5.37%, 11/01/2025 | | | 100 | | | | 111 | |
| Los Angeles Unified School District — Series A-1 | | | | | | | | |
| 4.50%, 01/01/2028 | | | 1,200 | | | | 1,201 | |
| New York City Transitional Finance Authority | | | | | | | | |
| 4.73%, 11/01/2023 | | | 100 | | | | 110 | |
| New York Liberty Development Corp. | | | | | | | | |
| 0.33%, 12/01/2049 * | | | 6,100 | | | | 6,100 | |
| State of California | | | | | | | | |
| 5.65%, 04/01/2039 * | | | 5,900 | | | | 6,243 | |
| State of California — Build America Bonds | | | | | | | | |
| 7.50%, 04/01/2034 | | | 300 | | | | 363 | |
| State of Illinois | | | | | | | | |
| 2.77%, 01/01/2012 | | | 8,100 | | | | 8,128 | |
| Tobacco Settlement Finance Authority — Series A | | | | | | | | |
| 7.47%, 06/01/2047 | | | 1,130 | | | | 815 | |
| Tobacco Settlement Financing Corp. | | | | | | | | |
| 5.25%, 06/01/2019 | | | 30 | | | | 31 | |
| 5.50%, 06/01/2026 | | | 200 | | | | 221 | |
| 5.88%, 05/15/2039 | | | 40 | | | | 40 | |
| Tobacco Settlement Financing Corp. — Series 1A | | | | | | | | |
| 5.00%, 06/01/2041 | | | 1,400 | | | | 928 | |
| | | | | | | | |
Total Municipal Government Obligations (cost $39,095) | | | | | | | 40,734 | |
| | | | | | | | |
| | | | | | | | | |
PREFERRED CORPORATE DEBT SECURITIES — 1.6% | | | | | | | | |
Commercial Banks — 1.6% | | | | | | | | |
| Barclays Bank PLC | | | | | | | | |
| 7.43%, 12/15/2017 — 144A * Ž ^ | | | 900 | | | | 842 | |
| HSBC Capital Funding, LP | | | | | | | | |
| 10.18%, 06/30/2030 — 144A * Ž | | | 150 | | | | 188 | |
| Lloyds TSB Bank PLC | | | | | | | | |
| 12.00%, 12/16/2024 — 144A * Ž | | | 5,300 | | | | 4,836 | |
| Rabobank Nederland NV | | | | | | | | |
| 11.00%, 06/30/2019 — 144A * Ž | | | 378 | | | | 457 | |
| Royal Bank of Scotland Group PLC | | | | | | | | |
| 7.64%, 09/29/2017 Ž | | | 3,000 | | | | 1,898 | |
| Wells Fargo & Co. — Series K | | | | | | | | |
| 7.98%, 03/15/2018 * Ž ^ | | | 1,800 | | | | 1,926 | |
| | | | | | | | |
Total Preferred Corporate Debt Securities (cost $11,633) | | | | | | | 10,147 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 19.4% | | | | | | | | |
Airlines — 0.4% | | | | | | | | |
| Continental Airlines, Inc. | | | | | | | | |
| 6.75%, 09/15/2015 — 144A | | | 2,200 | | | | 2,206 | |
Capital Markets — 3.2% | | | | | | | | |
| Goldman Sachs Group, Inc. | | | | | | | | |
| 1.84%, 11/15/2014 * | | | EUR500 | | | | 627 | |
| 1.88%, 02/04/2013 * | | | 300 | | | | 400 | |
| 6.75%, 10/01/2037 | | $ | 900 | | | | 865 | |
| Lehman Brothers Holdings, Inc. | | | | | | | | |
| 2.85%, 12/23/2008 ‡ Џ | | | 1,600 | | | | 394 | |
| 5.63%, 01/24/2013 ‡ Џ | | | 4,100 | | | | 1,051 | |
| 6.88%, 05/02/2018 ‡ Џ | | | 500 | | | | 129 | |
| Lehman Brothers Holdings, Inc. — Series H | | | | | | | | |
| 2.88%, 10/22/2008 ‡ Џ | | | 200 | | | | 49 | |
| Lehman Brothers Holdings, Inc. — Series I | | | | | | | | |
| 6.75%, 12/28/2017 ‡ Џ | | | 1,700 | | | | ♦ | |
| Morgan Stanley | | | | | | | | |
| 1.41%, 04/29/2013 * ^ | | | 6,100 | | | | 5,906 | |
| 1.97%, 04/13/2016 * | | EUR1,900 | | | 2,235 | |
| 2.88%, 07/28/2014 ^ | | $ | 400 | | | | 387 | |
| 3.45%, 11/02/2015 | | | 4,200 | | | | 4,069 | |
| 5.50%, 07/28/2021 ^ | | | 700 | | | | 684 | |
| Morgan Stanley -Series MTN | | | | | | | | |
| 6.63%, 04/01/2018 | | | 2,000 | | | | 2,084 | |
| UBS AG | | | | | | | | |
| 1.40%, 02/23/2012 * | | | 1,400 | | | | 1,403 | |
Commercial Banks — 4.0% | | | | | | | | |
| Barclays Bank PLC | | | | | | | | |
| 5.45%, 09/12/2012 ^ | | | 2,600 | | | | 2,673 | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 137 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Commercial Banks (continued) | | | | | | | | |
| Barclays Bank PLC (continued) | | | | | | | | |
| 6.05%, 12/04/2017 — 144A | | $ | 2,600 | | | $ | 2,495 | |
| 6.75%, 05/22/2019 | | | 2,500 | | | | 2,866 | |
| 10.18%, 06/12/2021 — 144A | | | 2,240 | | | | 2,501 | |
| Canadian Imperial Bank of Commerce | | | | | | | | |
| 2.00%, 02/04/2013 — 144A | | | 1,200 | | | | 1,217 | |
| Cie de Financement Foncier | | | | | | | | |
| 2.50%, 09/16/2015 — 144A ^ | | | 6,000 | | | | 5,912 | |
| Lloyds TSB Bank PLC | | | | | | | | |
| 4.38%, 01/12/2015 — 144A | | | 4,400 | | | | 4,411 | |
| 5.80%, 01/13/2020 — 144A | | | 700 | | | | 717 | |
| Royal Bank of Scotland PLC | | | | | | | | |
| 5.63%, 08/24/2020 | | | 2,000 | | | | 2,035 | |
Consumer Finance — 0.5% | | | | | | | | |
| Ally Financial, Inc. | | | | | | | | |
| 3.75%, 06/20/2014 * | | | 3,100 | | | | 2,923 | |
Diversified Financial Services — 8.3% | | | | | | | | |
| Bank of America Corp. | | | | | | | | |
| 7.63%, 06/01/2019 | | | 4,000 | | | | 4,346 | |
| Bank of America Corp. — Series MTNL | | | | | | | | |
| 5.65%, 05/01/2018 | | | 3,900 | | | | 3,905 | |
| Bear Stearns Cos., LLC | | | | | | | | |
| 5.70%, 11/15/2014 | | | 1,900 | | | | 2,078 | |
| 6.40%, 10/02/2017 | | | 900 | | | | 1,039 | |
| 7.25%, 02/01/2018 | | | 2,100 | | | | 2,473 | |
| Citigroup, Inc. | | | | | | | | |
| 0.46%, 03/07/2014 * | | | 2,000 | | | | 1,882 | |
| 2.44%, 08/13/2013 * ^ | | | 1,200 | | | | 1,193 | |
| 5.50%, 04/11/2013 | | | 1,400 | | | | 1,453 | |
| 6.00%, 08/15/2017 | | | 600 | | | | 653 | |
| Ford Motor Credit Co., LLC | | | | | | | | |
| 7.00%, 10/01/2013 | | | 400 | | | | 430 | |
| 7.80%, 06/01/2012 | | | 600 | | | | 619 | |
| General Electric Capital Corp. | | | | | | | | |
| 6.50%, 09/15/2067 — 144A * | | | GBP400 | | | | 579 | |
| International Lease Finance Corp. | | | | | | | | |
| 7.13%, 09/01/2018 — 144A | | $ | 6,600 | | | | 6,814 | |
| JPMorgan Chase & Co. | | | | | | | | |
| 4.25%, 10/15/2020 ^ | | | 1,900 | | | | 1,891 | |
| 4.40%, 07/22/2020 | | | 200 | | | | 203 | |
| 4.95%, 03/25/2020 | | | 900 | | | | 944 | |
| 6.30%, 04/23/2019 | | | 900 | | | | 1,020 | |
| Merrill Lynch & Co., Inc. | | | | | | | | |
| 1.85%, 01/31/2014 * | | EUR1,000 | | | 1,243 | |
| 6.88%, 04/25/2018 ^ | | $ | 3,900 | | | | 4,006 | |
| Merrill Lynch & Co., Inc. — Series C | | | | | | | | |
| 6.40%, 08/28/2017 | | | 400 | | | | 406 | |
| SMFG Preferred Capital, Ltd. | | | | | | | | |
| 10.23%, 01/25/2029 — Reg S * Ž | | GBP2,900 | | | 5,399 | |
| SSIF Nevada, LP | | | | | | | | |
| 1.10%, 04/14/2014 — 144A * | | $ | 500 | | | | 500 | |
| TNK-BP Finance SA | | | | | | | | |
| 7.50%, 03/13/2013 — Reg S ^ | | | 4,000 | | | | 4,224 | |
| Volkswagen International Finance NV | | | | | | | | |
| 0.82%, 10/01/2012 — 144A * | | | 3,500 | | | | 3,506 | |
| 0.98%, 04/01/2014 — 144A * ^ | | | 1,600 | | | | 1,604 | |
Diversified Telecommunication Services — 0.1% | | | | | | | | |
| Deutsche Telekom International Finance BV | | | | | | | | |
| 8.13%, 05/29/2012 | | | EUR124 | | | | 178 | |
| KT Corp. | | | | | | | | |
| 4.88%, 07/15/2015 — 144A | | $ | 200 | | | | 211 | |
Electric Utilities — 0.0% ∞ | | | | | | | | |
| PSEG Power LLC | | | | | | | | |
| 6.95%, 06/01/2012 | | | 210 | | | | 217 | |
Energy Equipment & Services — 0.3% | | | | | | | | |
| NGPL Pipeco LLC | | | | | | | | |
| 7.12%, 12/15/2017 — 144A | | | 1,800 | | | | 1,887 | |
Food Products — 1.0% | | | | | | | | |
| Wrigley WM Jr., Co. | | | | | | | | |
| 2.45%, 06/28/2012 — 144A | | | 6,300 | | | | 6,369 | |
Household Durables — 0.1% | | | | | | | | |
| Urbi Desarrollos Urbanos SAB de CV | | | | | | | | |
| 9.50%, 01/21/2020 — 144A ^ | | | 400 | | | | 414 | |
Insurance — 0.3% | | | | | | | | |
| American International Group, Inc. | | | | | | | | |
| 4.25%, 09/15/2014 | | | 1,000 | | | | 984 | |
| 5.60%, 10/18/2016 | | | 1,000 | | | | 1,008 | |
Metals & Mining — 0.1% | | | | | | | | |
| CSN Resources SA | | | | | | | | |
| 6.50%, 07/21/2020 — 144A | | | 300 | | | | 322 | |
Paper & Forest Products — 0.4% | | | | | | | | |
| Georgia-Pacific LLC | | | | | | | | |
| 5.40%, 11/01/2020 — 144A ^ | | | 2,500 | | | | 2,787 | |
Tobacco — 0.7% | | | | | | | | |
| Altria Group, Inc. | | | | | | | | |
| 4.13%, 09/11/2015 ^ | | | 400 | | | | 435 | |
| 9.70%, 11/10/2018 | | | 1,900 | | | | 2,554 | |
| Reynolds American, Inc. | | | | | | | | |
| 7.63%, 06/01/2016 | | | 200 | | | | 238 | |
| 7.75%, 06/01/2018 | | | 1,000 | | | | 1,201 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $125,506) | | | | | | | 121,454 | |
| | | | | | | | |
| | | | | | | | | |
LOAN ASSIGNMENT — 0.1% | | | | | | | | |
Health Care Providers & Services — 0.1% | | | | | | | | |
| HCA, Inc., 1st Lien, Tranche B | | | | | | | | |
| 2.62%, 11/18/2013 * | | | 942 | | | | 928 | |
Total Loan Assignment (cost $942) | | | | | | | | |
| | | | | | | | | |
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS — 2.2% | | | | | | | | |
| U.S. Treasury Bill | | | | | | | | |
| 0.01%, 02/23/2012 ▲ α | | | 470 | | | | 470 | |
| 0.02%, 03/01/2012 ▲ α | | | 291 | | | | 291 | |
| 0.03%, 03/22/2012 ▲ α | | | 191 | | | | 191 | |
| 0.04%, 03/29/2012 ▲ ^ α | | | 10,100 | | | | 10,099 | |
| 0.04%, 04/05/2012 ▲ | | | 130 | | | | 130 | |
| 0.05%, 05/03/2012 ▲ | | | 2,300 | | | | 2,299 | |
| | | | | | | | |
Total Short-Term U.S. Government Obligations (cost $13,480) | | | | | | | 13,480 | |
| | | | | | | | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 138 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
CONVERTIBLE PREFERRED STOCK — 0.3% | | | | | | | | |
Commercial Banks — 0.3% | | | | | | | | |
| Wells Fargo & Co., 7.50% | | | 1,600 | | | $ | 1,690 | |
Total Convertible Preferred Stock (cost $1,384) | | | | | | | | |
| | | | | | | | | |
PREFERRED STOCK — 0.1% | | | | | | | | |
Thrifts & Mortgage Finance — 0.1% | | | | | | | | |
| DG Funding Trust, 1.02% — 144A * Ə § | | | 119 | | | | 895 | |
Total Preferred Stock (cost $1,266) | | | | | | | | |
| |
SECURITIES LENDING COLLATERAL — 7.3% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 45,810,240 | | | | 45,810 | |
Total Securities Lending Collateral (cost $45,810) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENTS — 2.0% | | | | | | | | |
| Barclays Capital, Inc. 0.10% ▲, dated 10/31/2011, to be repurchased at $11,000 on 11/01/2011. Collateralized by a U.S. Government Obligation, 4.50%, due 05/15/2038, with a value of $11,314. | | $ | 11,000 | | | | 11,000 | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $1,674 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 4.00%, due 12/15/2017, with a total value of $1,710. | | | 1,674 | | | | 1,674 | |
| | | | | | | | |
Total Repurchase Agreements (cost $12,674) | | | | | | | 12,674 | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $812,140) Π | | | | | | | 814,774 | |
| Other Assets and Liabilities — Net | | | | | | | (189,039 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 625,735 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES SOLD SHORT — (6.6%) | | | | | | | | |
U.S. Government Agency Obligations — (6.6%) | | | | | | | | |
| Fannie Mae, TBA □ | | | | | | | | |
| 4.00% | | $ | (17,000 | ) | | $ | (17,669 | ) |
| 4.50% | | | (800 | ) | | | (852 | ) |
| 5.00% | | | (4,850 | ) | | | (5,217 | ) |
| 5.50% | | | (14,000 | ) | | | (15,186 | ) |
| 6.00% | | | (2,100 | ) | | | (2,301 | ) |
| | | | | | | | |
Total Securities Sold Short (proceeds $(41,089)) | | | | | | | (41,225 | ) |
| | | | | | | | |
WRITTEN SWAPTIONS: π
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Notional | | | Premiums
Paid | | | | |
| | | Floating Rate | | | Pay/Receive | | | Exercise | | | Expiration | | | Amount | | | (Received) | | | Value | |
| Description | | Index | | | Floating Rate | | | Rate | | | Date | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Call — Interest Rate Swap, European Style § | | 2-Year OC FVA USD | | Receive | | | 0.00 | % ∞ | | | 11/14/2011 | | | $ | (2,500 | ) | | $ | (27 | ) | | $ | (29 | ) |
| Call — Interest Rate Swap, European Style | | 10-Year IRO EUR | | Receive | | | 2.50 | | | | 01/12/2012 | | | | (7,500 | ) | | | (106 | ) | | | (135 | ) |
| Call — Interest Rate Swap, European Style | | 10-Year IRO EUR | | Receive | | | 2.50 | | | | 01/12/2012 | | | | (5,000 | ) | | | (69 | ) | | | (90 | ) |
| Put — Interest Rate Swap, European Style | | 5-Year CDX.O 1.2 | | Pay | | | 1.20 | | | | 12/21/2011 | | | | (17,300 | ) | | | (80 | ) | | | (82 | ) |
| Put — Interest Rate Swap, European Style | | 2-Year IRO USD | | Pay | | | 2.25 | | | | 09/24/2012 | | | | (600 | ) | | | (3 | ) | | | (♦ | ) |
| Put — Interest Rate Swap, European Style | | 2-Year IRO USD | | Pay | | | 2.25 | | | | 09/24/2012 | | | | (1,500 | ) | | | (10 | ) | | | (1 | ) |
| Put — Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | | 2.75 | | | | 06/18/2012 | | | | (6,200 | ) | | | (61 | ) | | | (1 | ) |
| Put — Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | | 2.75 | | | | 06/18/2012 | | | | (6,500 | ) | | | (67 | ) | | | (2 | ) |
| Put — Interest Rate Swap, European Style | | 10-Year IRO EUR | | Pay | | | 3.00 | | | | 01/12/2012 | | | | (5,000 | ) | | | (76 | ) | | | (50 | ) |
| Put — Interest Rate Swap, European Style | | 10-Year IRO EUR | | Pay | | | 3.00 | | | | 01/12/2012 | | | | (7,500 | ) | | | (116 | ) | | | (75 | ) |
| Put — Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | | 3.00 | | | | 06/18/2012 | | | | (1,200 | ) | | | (11 | ) | | | (♦ | ) |
| Put — Interest Rate Swap, European Style | | 3-Year IRO USD | | Pay | | | 3.00 | | | | 06/18/2012 | | | | (1,200 | ) | | | (11 | ) | | | (♦ | ) |
| Put — Interest Rate Swap, European Style | | 10-Year IRO USD | | Pay | | | 10.00 | | | | 07/10/2012 | | | | (700 | ) | | | (5 | ) | | | (♦ | ) |
| Put — Interest Rate Swap, European Style | | 10-Year IRO USD | | Pay | | | 10.00 | | | | 07/10/2012 | | | | (7,400 | ) | | | (45 | ) | | | (♦ | ) |
| Put — Interest Rate Swap, European Style | | 10-Year IRO USD | | Pay | | | 10.00 | | | | 07/10/2012 | | | | (100 | ) | | | (1 | ) | | | (♦ | ) |
| Put — Interest Rate Swap, European Style | | 10-Year IRO USD | | Pay | | | 10.00 | | | | 07/10/2012 | | | | (400 | ) | | | (3 | ) | | | (♦ | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (691 | ) | | $ | (465 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 139 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
SWAP AGREEMENTS: p
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES — BUY PROTECTION:(1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Implied Credit | | | Notional | | | Market | | | Premiums | | | Unrealized | |
| | | Fixed Deal | | | | | | | | | | | Spread (BP) at | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Reference Obligation | | Pay Rate | | | Maturity Date | | | Counterparty | | | 10/31/2011(2) | | | (000’s)(3) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Time Warner, Inc., 5.88%, 11/15/2016 | | | 1.19 | % | | | 03/20/2014 | | | DUB | | | 34.60 | | | $ | 20 | | | $ | (♦ | ) | | $ | — | | | $ | (♦ | ) |
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES — SELL PROTECTION:(4)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | Fixed Deal | | | | | | | | | | | Implied Credit | | | Notional | | | Market | | | Premiums | | | Appreciation | |
| | | Receive | | | | | | | | | | | Spread (BP) at | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Reference Obligation | | Rate | | | Maturity Date | | | Counterparty | | | 10/31/2011(2) | | | (000’s)(3) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Goldman Sachs Group, Inc., 6.60%, 01/15/2012 | | | 1.00 | % | | | 03/20/2012 | | | BCLY | | | 277.84 | | | $ | 200 | | | $ | (1 | ) | | $ | (♦ | ) | | $ | (1 | ) |
CREDIT DEFAULT SWAPS ON CREDIT INDICES — BUY PROTECTION: (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | Fixed Deal | | | | | | | | | | | | | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Reference Obligation | | Pay Rate | | | Maturity Date | | | Counterparty | | | Currency Code | | | (000’s)(3) | | | (000’s)(5) | | | (000’s) | | | (000’s) | |
| |
| Dow Jones North America Investment Grade Index — Series 5 | | | 0.14 | % | | | 12/20/2012 | | | MSC | | USD | | $ | 4,500 | | | $ | 18 | | | $ | ♦ | | | $ | 18 | |
| North America High Yield Index — Series 14 | | | 5.00 | | | | 06/20/2015 | | | DUB | | USD | | | 6,600 | | | | 4 | | | | 361 | | | | (357 | ) |
| North America High Yield Index — Series 14 | | | 5.00 | | | | 06/20/2015 | | | CITI | | USD | | | 8,000 | | | | 4 | | | | 466 | | | | (462 | ) |
| North America High Yield Index — Series 15 § | | | 5.00 | | | | 12/20/2015 | | | MSC | | USD | | | 24,400 | | | | 142 | | | | (747 | ) | | | 889 | |
| North America Investment Grade Index — Series 15 § | | | 1.00 | | | | 12/20/2015 | | | MSC | | USD | | | 8,300 | | | | 15 | | | | (32 | ) | | | 47 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 183 | | | $ | 48 | | | $ | 135 | |
| | | | | | | | | | | | | | | | | | | | | | | |
CREDIT DEFAULT SWAPS ON CREDIT INDICES — SELL PROTECTION: (4)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Fixed Deal | | | | | | | | | | | | | | | Notional | | | Market | | | Premiums | | | Unrealized | |
| | | Receive | | | Maturity | | | | | | | Currency | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Reference Obligation | | Rate | | | Date | | | Counterparty | | | Code | | | (000’s)(3) | | | (000’s)(5) | | | (000’s) | | | (000’s) | |
| |
| Dow Jones North America Investment Grade Index — Series 5 | | | 0.46 | % | | | 12/20/2015 | | | MSC | | USD | | $ | 3,200 | | | $ | (361 | ) | | $ | — | | | $ | (361 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| North America Investment Grade Index - Series 16 | | | 1.00 | | | | 06/20/2016 | | | BCLY | | USD | | | 12,900 | | | | (62 | ) | | | (114 | ) | | | 52 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (423 | ) | | $ | (114 | ) | | $ | (309 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
INTEREST RATE SWAP AGREEMENTS — FIXED RATE PAYABLE:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | | | Net Unrealized | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | | | | | Maturity | | | | | | | Currency | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Floating Rate Index | | Fixed Rate | | | Date | | | Counterparty | | | Code | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| 3-Month EURIBOR | | | 2.00 | % | | | 03/21/2017 | | | BCLY | | EUR | | | 10,000 | | | $ | (70 | ) | | $ | (66 | ) | | $ | (4 | ) |
| 3-Month EURIBOR | | | 2.00 | | | | 03/21/2017 | | | MSC | | EUR | | | 10,000 | | | | (70 | ) | | | (67 | ) | | | (3 | ) |
| 6-Month AUD BBR-BBSW | | | 5.50 | | | | 12/15/2017 | | | DUB | | AUD | | | 2,200 | | | | 81 | | | | (8 | ) | | | 89 | |
| 6-Month AUD BBR-BBSW | | | 5.50 | | | | 12/15/2017 | | | BCLY | | AUD | | | 3,600 | | | | 133 | | | | (15 | ) | | | 148 | |
| BRL-CDI | | | 12.51 | | | | 01/02/2013 | | | UBS | | BRL | | | 6,100 | | | | 82 | | | | (4 | ) | | | 86 | |
| BRL-CDI | | | 11.93 | | | | 01/02/2013 | | | GSC | | BRL | | | 2,500 | | | | 44 | | | | (2 | ) | | | 46 | |
| BRL-CDI | | | 11.89 | | | | 01/02/2013 | | | HSBC | | BRL | | | 6,700 | | | | 115 | | | | 13 | | | | 102 | |
| BRL-CDI | | | 12.59 | | | | 01/02/2013 | | | MSC | | BRL | | | 2,800 | | | | 61 | | | | 1 | | | | 60 | |
| BRL-CDI | | | 11.91 | | | | 01/02/2013 | | | JPM | | BRL | | | 39,900 | | | | 654 | | | | 82 | | | | 572 | |
| BRL-CDI | | | 11.94 | | | | 01/02/2014 | | | HSBC | | BRL | | | 9,900 | | | | 151 | | | | 18 | | | | 133 | |
| BRL-CDI | | | 11.96 | | | | 01/02/2014 | | | GSC | | BRL | | | 37,100 | | | | 717 | | | | (18 | ) | | | 735 | |
| BRL-CDI | | | 12.56 | | | | 01/02/2014 | | | HSBC | | BRL | | | 3,200 | | | | 56 | | | | 5 | | | | 51 | |
| BRL-CDI | | | 11.99 | | | | 01/02/2014 | | | GSC | | BRL | | | 4,000 | | | | 79 | | | | 1 | | | | 78 | |
| BRL-CDI | | | 12.12 | | | | 01/02/2014 | | | HSBC | | BRL | | | 11,600 | | | | 258 | | | | 16 | | | | 242 | |
| BRL-CDI | | | 12.51 | | | | 01/02/2014 | | | JPM | | BRL | | | 3,300 | | | | 56 | | | | 3 | | | | 53 | |
| | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 140 | | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
SWAP AGREEMENTS: (continued) p
INTEREST RATE SWAP AGREEMENTS — FIXED RATE PAYABLE (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | | | Net Unrealized | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | | | | | Maturity | | | | | | | Currency | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Floating Rate Index | | Fixed Rate | | | Date | | | Counterparty | | | Code | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| MXN-TIIE-Banxico | | | 6.50 | % | | | 03/05/2013 | | | MSC | | MXN | | | 64,800 | | | $ | 85 | | | $ | (3 | ) | | $ | 88 | |
| MXN-TIIE-Banxico | | | 7.50 | | | | 06/02/2021 | | | UBS | | MXN | | | 80,200 | | | | 491 | | | | 254 | | | | 237 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 2,923 | | | $ | 210 | | | $ | 2,713 | |
| | | | | | | | | | | | | | | | | | | | | | | |
INTEREST RATE SWAP AGREEMENTS — FIXED RATE RECEIVABLE:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | | | | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Paid | | | Net Unrealized | |
| | | | | | | Maturity | | | | | | | Currency | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Floating Rate Index | | Fixed Rate | | | Date | | | Counterparty | | | Code | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| 3-Month USD-LIBOR | | | 1.50 | % | | | 12/21/2016 | | | DUB | | USD | | $ | 31,300 | | | $ | (189 | ) | | $ | 159 | | | $ | (348 | ) |
| 3-Month USD-LIBOR | | | 3.25 | | | | 12/21/2021 | | | GSC | | USD | | | 17,800 | | | | (1,415 | ) | | | (5 | ) | | | (1,410 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (1,604 | ) | | $ | 154 | | | $ | (1,758 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
FUTURES CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealized | |
| | | | | | | | | | | | | | | Appreciation | |
| | | | | | | | | | | | | | | (Depreciation) | |
| Description | | Type | | | Contracts ┌ | | | Expiration Date | | | (000’s) | |
| |
| 10-Year U.S. Treasury Note | | Long | | | 136 | | | | 12/20/2011 | | | $ | (193 | ) |
| 5-Year U.S. Treasury Note | | Short | | | (34 | ) | | | 12/30/2011 | | | | (6 | ) |
| 90-Day Euro | | Long | | | 196 | | | | 12/19/2011 | | | | 94 | |
| German Euro BOBL | | Long | | | 16 | | | | 12/08/2011 | | | | 4 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (101 | ) |
| | | | | | | | | | | | | | | | |
FORWARD FOREIGN CURRENCY CONTRACTS: ◘
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | BCLY | | | (6,259 | ) | | | 12/01/2011 | | | $ | (6,406 | ) | | $ | (165 | ) |
| Australian Dollar | | GSC | | | (52,382 | ) | | | 12/01/2011 | | | | (53,046 | ) | | | (1,951 | ) |
| Brazilian Real | | CSFB | | | (132 | ) | | | 11/03/2011 | | | | (82 | ) | | | 5 | |
| Brazilian Real | | HSBC | | | (1,362 | ) | | | 11/03/2011 | | | | (845 | ) | | | 52 | |
| Brazilian Real | | HSBC | | | (374 | ) | | | 11/03/2011 | | | | (231 | ) | | | 13 | |
| Brazilian Real | | HSBC | | | (483 | ) | | | 11/03/2011 | | | | (299 | ) | | | 18 | |
| Brazilian Real | | HSBC | | | (483 | ) | | | 11/03/2011 | | | | (299 | ) | | | 18 | |
| Brazilian Real | | UBS | | | (489 | ) | | | 11/03/2011 | | | | (303 | ) | | | 18 | |
| Brazilian Real | | CITI | | | (533 | ) | | | 11/03/2011 | | | | (330 | ) | | | 20 | |
| Brazilian Real | | HSBC | | | 3,856 | | | | 11/03/2011 | | | | 2,033 | | | | 212 | |
| Brazilian Real | | HSBC | | | (3,856 | ) | | | 01/04/2012 | | | | (2,012 | ) | | | (202 | ) |
| Canadian Dollar | | RBC | | | (2,538 | ) | | | 11/17/2011 | | | | (2,497 | ) | | | (48 | ) |
| Canadian Dollar | | CITI | | | (3,774 | ) | | | 11/17/2011 | | | | (3,750 | ) | | | (35 | ) |
| Canadian Dollar | | DUB | | | (13,217 | ) | | | 11/17/2011 | | | | (13,306 | ) | | | 51 | |
| Canadian Dollar | | RBC | | | (13,217 | ) | | | 11/17/2011 | | | | (13,353 | ) | | | 98 | |
| Canadian Dollar | | UBS | | | (1,615 | ) | | | 11/17/2011 | | | | (1,596 | ) | | | (24 | ) |
| Chinese Yuan Renminbi | | DUB | | | 645 | | | | 11/04/2011 | | | | 101 | | | | t | |
| Chinese Yuan Renminbi | | DUB | | | 4,808 | | | | 11/15/2011 | | | | 726 | | | | 31 | |
| Chinese Yuan Renminbi | | DUB | | | 8,849 | | | | 02/13/2012 | | | | 1,373 | | | | 21 | |
| Chinese Yuan Renminbi | | JPM | | | 9,360 | | | | 02/13/2012 | | | | 1,453 | | | | 22 | |
| Chinese Yuan Renminbi | | CITI | | | 3,176 | | | | 02/13/2012 | | | | 493 | | | | 7 | |
| Chinese Yuan Renminbi | | JPM | | | 11,209 | | | | 02/13/2012 | | | | 1,743 | | | | 23 | |
| Chinese Yuan Renminbi | | BCLY | | | 9,703 | | | | 02/13/2012 | | | | 1,505 | | | | 24 | |
| Chinese Yuan Renminbi | | DUB | | | 1,810 | | | | 02/13/2012 | | | | 279 | | | | 6 | |
| Chinese Yuan Renminbi | | CITI | | | 9,245 | | | | 02/13/2012 | | | | 1,434 | | | | 23 | |
| Chinese Yuan Renminbi | | DUB | | | 9,196 | | | | 02/13/2012 | | | | 1,427 | | | | 22 | |
| Chinese Yuan Renminbi | | HSBC | | | 3,828 | | | | 02/13/2012 | | | | 600 | | | | 3 | |
| Chinese Yuan Renminbi | | JPM | | | 6,156 | | | | 02/13/2012 | | | | 966 | | | | 4 | |
| Chinese Yuan Renminbi | | JPM | | | 6,168 | | | | 02/13/2012 | | | | 968 | | | | 4 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 141 | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS (continued): ◘
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Chinese Yuan Renminbi | | JPM | | | 7,219 | | | | 02/13/2012 | | | $ | 1,133 | | | $ | 4 | |
| Chinese Yuan Renminbi | | UBS | | | 7,389 | | | | 02/13/2012 | | | | 1,147 | | | | 17 | |
| Chinese Yuan Renminbi | | CITI | | | 3,751 | | | | 02/13/2012 | | | | 591 | | | | (t | ) |
| Chinese Yuan Renminbi | | CITI | | | 2,751 | | | | 02/13/2012 | | | | 428 | | | | 5 | |
| Chinese Yuan Renminbi | | BCLY | | | 3,351 | | | | 02/13/2012 | | | | 521 | | | | 7 | |
| Chinese Yuan Renminbi | | JPM | | | 275 | | | | 06/01/2012 | | | | 43 | | | | t | |
| Chinese Yuan Renminbi | | JPM | | | 551 | | | | 06/01/2012 | | | | 86 | | | | 1 | |
| Chinese Yuan Renminbi | | GSC | | | 6,562 | | | | 02/01/2013 | | | | 1,046 | | | | (4 | ) |
| Chinese Yuan Renminbi | | DUB | | | 8,367 | | | | 02/01/2013 | | | | 1,330 | | | | (1 | ) |
| Chinese Yuan Renminbi | | DUB | | | 6,353 | | | | 02/01/2013 | | | | 1,004 | | | | 5 | |
| Chinese Yuan Renminbi | | DUB | | | 2,000 | | | | 08/05/2013 | | | | 319 | | | | t | |
| Chinese Yuan Renminbi | | UBS | | | 7,078 | | | | 08/05/2013 | | | | 1,121 | | | | 10 | |
| Danish Krone | | CITI | | | 1,194 | | | | 12/09/2011 | | | | 213 | | | | 9 | |
| Euro | | JPM | | | (16,484 | ) | | | 01/17/2012 | | | | (22,413 | ) | | | (384 | ) |
| Indian Rupee | | JPM | | | 242,258 | | | | 07/12/2012 | | | | 5,212 | | | | (374 | ) |
| Japanese Yen | | CITI | | | (195,332 | ) | | | 01/13/2012 | | | | (2,544 | ) | | | 42 | |
| Malaysian Ringgit | | JPM | | | 9 | | | | 04/23/2012 | | | | 3 | | | | (t) | |
| Mexican Peso | | HSBC | | | (8,662 | ) | | | 11/18/2011 | | | | (703 | ) | | | 54 | |
| Mexican Peso | | HSBC | | | (7,304 | ) | | | 11/18/2011 | | | | (592 | ) | | | 45 | |
| Mexican Peso | | BCLY | | | 19,368 | | | | 11/18/2011 | | | | 1,643 | | | | (192 | ) |
| Mexican Peso | | UBS | | | (8,702 | ) | | | 11/18/2011 | | | | (706 | ) | | | 54 | |
| Mexican Peso | | DUB | | | 15,186 | | | | 11/18/2011 | | | | 1,288 | | | | (150 | ) |
| Mexican Peso | | UBS | | | (8,691 | ) | | | 11/18/2011 | | | | (706 | ) | | | 55 | |
| Mexican Peso | | BCLY | | | (8,572 | ) | | | 11/18/2011 | | | | (695 | ) | | | 53 | |
| Mexican Peso | | BCLY | | | (8,563 | ) | | | 11/18/2011 | | | | (695 | ) | | | 54 | |
| Mexican Peso | | BCLY | | | 20,480 | | | | 11/18/2011 | | | | 1,736 | | | | (202 | ) |
| Mexican Peso | | BCLY | | | (8,556 | ) | | | 11/18/2011 | | | | (695 | ) | | | 54 | |
| Mexican Peso | | HSBC | | | (66,686 | ) | | | 11/18/2011 | | | | (4,965 | ) | | | (30 | ) |
| Mexican Peso | | BCLY | | | (2,663 | ) | | | 11/18/2011 | | | | (216 | ) | | | 17 | |
| Mexican Peso | | UBS | | | 455 | | | | 11/18/2011 | | | | 34 | | | | (t) | |
| Mexican Peso | | DUB | | | 7,193 | | | | 11/18/2011 | | | | 610 | | | | (71 | ) |
| Mexican Peso | | BCLY | | | 22,628 | | | | 11/18/2011 | | | | 1,918 | | | | (223 | ) |
| Mexican Peso | | MSC | | | 70,752 | | | | 11/18/2011 | | | | 5,994 | | | | (695 | ) |
| Mexican Peso | | DUB | | | (3,028 | ) | | | 11/18/2011 | | | | (258 | ) | | | 31 | |
| Mexican Peso | | HSBC | | | (8,647 | ) | | | 11/18/2011 | | | | (703 | ) | | | 55 | |
| Mexican Peso | | UBS | | | (8,688 | ) | | | 11/18/2011 | | | | (706 | ) | | | 55 | |
| Mexican Peso | | HSBC | | | (7,300 | ) | | | 11/18/2011 | | | | (592 | ) | | | 45 | |
| Mexican Peso | | HSBC | | | 66,686 | | | | 03/15/2012 | | | | 4,915 | | | | 28 | |
| Norwegian Krone | | CITI | | | 15,778 | | | | 12/09/2011 | | | | 2,671 | | | | 157 | |
| Pound Sterling | | BCLY | | | (10,047 | ) | | | 12/08/2011 | | | | (16,036 | ) | | | (112 | ) |
| Pound Sterling | | JPM | | | (3,344 | ) | | | 12/08/2011 | | | | (5,210 | ) | | | (165 | ) |
| Republic of Korea Won | | JPM | | | 6,568,816 | | | | 11/14/2011 | | | | 6,176 | | | | (249 | ) |
| Singapore Dollar | | UBS | | | 9 | | | | 12/09/2011 | | | | 7 | | | | (t | ) |
| Taiwan Dollar | | BCLY | | | 122,831 | | | | 01/11/2012 | | | | 4,286 | | | | (172 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (3,897 | ) |
| | | | | | | | | | | | | | | | | | | | |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value | | | Collateral | | | | |
| | | of OTC Derivatives | | | (Received)/Pledged | | | Net Exposures (1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| BCLY | | | $(857) | | | | $— | | | | $(857) | |
| CITI | | | 232 | | | | (160) | | | | 72 | |
| CSFB | | | 5 | | | | (190) | | | | (185) | |
| DUB | | | (159) | | | | (370) | | | | (529) | |
| GSC | | | (2,530) | | | | 3,149 | | | | 619 | |
| HSBC | | | 891 | | | | (1,000) | | | | (109) | |
| JPM | | | (404) | | | | 1,514 | | | | 1,110 | |
| MSC | | | (805) | | | | (940) | | | | (1,745) | |
| RBC | | | 50 | | | | (20) | | | | 30 | |
| UBS | | | 758 | | | | (770) | | | | (12) | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 142 | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $44,881. |
| |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| Ə | | Securities fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. These securities aggregated to $4,435, or 0.71%, of the fund’s net assets. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| ‡ | | Non-income producing security. |
| |
| Џ | | In default. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| п | | Aggregate cost for federal income tax purposes is $812,863. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $23,365 and $21,454, respectively. Net unrealized appreciation for tax purposes is $1,911. |
| |
| s | | Amount rounds to less than 1. |
| |
| ┌ | | Contract amounts are not in thousands. |
| |
| (1) | | If the fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (a) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (b) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| |
| (2) | | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation. |
| |
| (3) | | The maximum potential amount the fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| |
| (4) | | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (a) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (b) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| |
| (5) | | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period ended. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the references entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
| |
| g | | A portion of this security in the amount of $454 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| α | | A portion of these securities in the amount of $4,664 has been segregated as collateral with the broker for open swaps contracts and/or swaptions. |
| |
| π | | Cash in the amount of $3,180 has been pledged by the broker as collateral with the custodian for open swap contracts and/or swaptions. |
| |
| ◘ | | Cash in the amount of $270 has been pledged by the broker as collateral with the custodian for open forward foreign currency contracts. |
| |
| □ | | Cash in the amount of $330 has been pledged by the broker as collateral with the custodian for open short TBA transactions. |
| |
| § | | Illiquid. These securities aggregated to $14,342, or 2.29%, of the fund’s net assets, and illiquid derivatives aggregated to $128, or 0.02%, of the fund’s net assets. |
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $77,486, or 12.38%, of the fund’s net assets. |
BCLY | | Barclays Bank PLC |
BP | | Basis Point |
CDI | | Credit Default Index |
CDX | | A Series of indices that track North American and emerging market credit derivative indices. |
CITI | | Citibank, Inc. |
CLO | | Collateralized Loan Obligation |
CSFB | | Credit Suisse First Boston |
DUB | | Deutsche Bank AG |
EURIBOR | | Euro InterBank Offered Rate |
FVA | | Forward Volatility Agreement |
GSC | | Goldman Sachs & Co. |
HSBC | | HSBC Bank USA |
IO | | Interest Only |
IRO | | Interest Rate Option |
JPM | | JPMorgan & Co. |
LIBOR | | London Interbank Offered Rate |
MSC | | Morgan Stanley |
OAO | | Otkrytoe Aktsionernoe Obschestvo (Russian: Open Joint Stock Corporation) |
OTC | | Over the Counter |
RBC | | Royal Bank of Canada |
TBA | | To Be Announced |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 143 | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | |
|
| DEFINITIONS (all amounts in thousands)(continued): |
| | | |
UBS | | UBS Warburg LLC |
| | | |
| CURRENCY ABBREVIATIONS: |
| | | |
AUD | | Australian Dollar |
BRL | | Brazilian Real |
CAD | | Canadian Dollar |
EUR | | Euro |
GBP | | Pound Sterling |
MXN | | Mexican Peso |
USD | | United States Dollar |
VALUATION SUMMARY (all amounts in thousands): э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Asset-Backed Securities | | $ | — | | | $ | 29,942 | | | $ | — | | | $ | 29,942 | |
| Convertible Preferred Stock | | | 1,690 | | | | — | | | | — | | | | 1,690 | |
| Corporate Debt Securities | | | — | | | | 121,454 | | | | — | | | | 121,454 | |
| Foreign Government Obligations | | | — | | | | 104,491 | | | | — | | | | 104,491 | |
| Loan Assignment | | | — | | | | 928 | | | | — | | | | 928 | |
| Mortgage-Backed Securities | | | — | | | | 45,521 | | | | — | | | | 45,521 | |
| Municipal Government Obligations | | | — | | | | 40,734 | | | | — | | | | 40,734 | |
| Preferred Corporate Debt Securities | | | — | | | | 10,147 | | | | — | | | | 10,147 | |
| Preferred Stock | | | — | | | | — | | | | 895 | | | | 895 | |
| Repurchase Agreements | | | — | | | | 12,674 | | | | — | | | | 12,674 | |
| Securities Lending Collateral | | | 45,810 | | | | — | | | | — | | | | 45,810 | |
| Short-Term U.S. Government Obligations | | | — | | | | 13,480 | | | | — | | | | 13,480 | |
| U.S. Government Agency Obligations | | | — | | | | 311,067 | | | | — | | | | 311,067 | |
| U.S. Government Obligations | | | — | | | | 75,941 | | | | — | | | | 75,941 | |
| | | |
Total | | $ | 47,500 | | | $ | 766,379 | | | $ | 895 | | | $ | 814,774 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Securities Sold Short | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| U.S. Government Agency Obligations | | $ | — | | | $ | (41,225 | ) | | $ | — | | | $ | (41,225 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Written Swaptions | | $ | — | | | $ | (465 | ) | | $ | — | | | $ | (465 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Total at | |
| Other Financial Instruments F | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Futures Contracts — Appreciation | | $ | 98 | | | $ | — | | | $ | — | | | $ | 98 | |
| Futures Contracts — Depreciation | | | (199 | ) | | | — | | | | — | | | | (199 | ) |
| Credit Default Swap — Appreciation | | | — | | | | 1,006 | | | | — | | | | 1,006 | |
| Credit Default Swap — Depreciation | | | — | | | | (1,181 | ) | | | — | | | | (1,181 | ) |
| Forward Foreign Currency Contracts -Appreciation | | | — | | | | 1,552 | | | | — | | | | 1,552 | |
| Forward Foreign Currency Contracts -Depreciation | | | — | | | | (5,449 | ) | | | — | | | | (5,449 | ) |
| Interest Rate Swap — Appreciation | | | — | | | | 2,720 | | | | — | | | | 2,720 | |
| Interest Rate Swap — Depreciation | | | — | | | | (1,765 | ) | | | — | | | | (1,765 | ) |
| | | |
Total | | $ | (101 | ) | | $ | (3,117 | ) | | $ | — | | | $ | (3,218 | ) |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 144 | Annual Report 2011 |
Transamerica PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands)(continued): э
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Appreciation/ | |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | (Depreciation) on | |
| | | Beginning | | | | | | | | | | | Accrued | | | | | | | Unrealized | | | | | | | Transfers | | | Ending | | | Investments | |
| | | Balance | | | | | | | | | | | Discounts/ | | | Total Realized | | | Appreciation/ | | | Transfers into | | | out of | | | Balance at | | | Held at | |
| Securities | | at 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | (Depreciation) ƒ | | | Level 3 ψ | | | Level 3 | | | 10/31/2011 | | | 10/31/2011 ƒ | |
| |
| Preferred Stocks | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 895 | | | $ | — | | | $ | 895 | | | $ | (20 | ) |
| Mortgage-Backed Securities | | | 45 | | | | — | | | | — | | | | — | | | | — | | | | (45 | ) | | | — | | | | — | | | | — | | | | — | |
| | | |
Total | | $ | 45 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (45 | ) | | $ | 895 | | | $ | — | | | $ | 895 | | | $ | (20 | ) |
| | | |
| | |
| э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
| |
| ψ | | Transferred into Level 3 because of unavailability of observable inputs. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | | Annual Report 2011 |
Page 145
Transamerica Schroders International Small Cap
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
COMMON STOCKS — 98.4% | | | | | | | | |
Australia — 9.0% | | | | | | | | |
| Amcor, Ltd. | | | 467,176 | | | $ | 3,418 | |
| Ansell, Ltd. ^ | | | 247,824 | | | | 3,625 | |
| Aston Resources, Ltd. ‡ | | | 170,948 | | | | 1,876 | |
| Computershare, Ltd. | | | 403,718 | | | | 3,192 | |
| Dart Energy, Ltd. ‡ | | | 3,651,228 | | | | 2,350 | |
| Iluka Resources, Ltd. | | | 166,359 | | | | 2,765 | |
| Mesoblast, Ltd. ‡ ^ | | | 146,085 | | | | 1,242 | |
| Mineral Deposits, Ltd. ‡ | | | 153,730 | | | | 1,039 | |
| Mirvac Group REIT | | | 1,347,359 | | | | 1,764 | |
| Myer Holdings, Ltd. ^ | | | 1,292,149 | | | | 3,527 | |
| Sims Metal Management, Ltd. | | | 156,203 | | | | 2,252 | |
| Starpharma Holdings, Ltd. ‡ | | | 1,023,245 | | | | 1,189 | |
| Transfield Services, Ltd. | | | 645,222 | | | | 1,540 | |
Austria — 1.8% | | | | | | | | |
| Kapsch TrafficCom AG | | | 38,000 | | | | 2,847 | |
| Mayr Melnhof Karton AG | | | 16,000 | | | | 1,481 | |
| Rosenbauer International AG § | | | 50,000 | | | | 2,061 | |
Belgium — 1.1% | | | | | | | | |
| Melexis NV ^ | | | 30,000 | | | | 422 | |
| Nyrstar ‡ | | | 230,000 | | | | 2,012 | |
| Nyrstar STRIP VVPR ‡ | | | 105,000 | | | | ♦ | |
| Tessenderlo Chemie NV | | | 44,000 | | | | 1,365 | |
Bermuda — 3.4% | | | | | | | | |
| Biosensors International Group, Ltd. ‡ | | | 4,006,000 | | | | 4,466 | |
| Dockwise, Ltd. ‡ ^ | | | 51,308 | | | | 836 | |
| Ports Design, Ltd. | | | 1,995,000 | | | | 3,558 | |
| Yuexiu Transport Infrastructure, Ltd. | | | 4,480,000 | | | | 1,934 | |
Brazil — 0.9% | | | | | | | | |
| Brazil Pharma SA ‡ | | | 90,000 | | | | 718 | |
| Cyrela Brazil Realty SA Empreendimentos e | | | | | | | | |
| Participacoes | | | 179,633 | | | | 1,570 | |
| PDG Realty SA Empreendimentos e | | | | | | | | |
| Participacoes | | | 197,368 | | | | 870 | |
Canada — 0.3% | | | | | | | | |
| Niko Resources, Ltd. | | | 20,030 | | | | 1,102 | |
Cayman Islands — 2.2% | | | | | | | | |
| Concord Medical Services Holdings, Ltd. | | | | | | | | |
| ADR ^ § | | | 368,786 | | | | 1,350 | |
| EVA Precision Industrial Holdings, Ltd. | | | 3,578,000 | | | | 924 | |
| Evergreen International Holdings, Ltd. | | | 4,115,000 | | | | 1,146 | |
| Leoch International Technology, Ltd. | | | 7,959,000 | | | | 2,581 | |
| Parkson Retail PLC | | | 931,500 | | | | 1,179 | |
Denmark — 1.6% | | | | | | | | |
| Jyske Bank A/S ‡ | | | 65,000 | | | | 1,889 | |
| Solar A/S — Class B | | | 30,000 | | | | 1,236 | |
| Sydbank A/S | | | 115,000 | | | | 2,130 | |
France — 4.2% | | | | | | | | |
| Alten, Ltd. | | | 13,700 | | | | 390 | |
| Bourbon SA ^ | | | 75,000 | | | | 2,082 | |
| Club Mediterranee ‡ ^ | | | 100,000 | | | | 1,890 | |
| Groupe Eurotunnel SA | | | 350,000 | | | | 3,153 | |
| IPSOS | | | 15,000 | | | | 491 | |
| Lectra § | | | 284,000 | | | | 2,138 | |
| Medica SA | | | 105,000 | | | | 2,091 | |
| Pierre & Vacances | | | 15,000 | | | | 584 | |
| Rubis | | | 25,000 | | | | 1,421 | |
| Sword Group | | | 4,155 | | | | 75 | |
Germany — 7.1% | | | | | | | | |
| Bilfinger Berger SE | | | 30,000 | | | | 2,678 | |
| CANCOM AG | | | 34,000 | | | | 385 | |
| Cewe Color Holding AG | | | 38,000 | | | | 1,478 | |
| Freenet AG ^ | | | 350,000 | | | | 4,512 | |
| Kabel Deutschland Holding AG ‡ | | | 13,000 | | | | 737 | |
| MTU Aero Engines Holding AG | | | 18,000 | | | | 1,205 | |
| Prime Office REIT-AG REIT ‡ | | | 71,421 | | | | 472 | |
| R. Stahl AG | | | 15,000 | | | | 491 | |
| Rheinmetall AG | | | 70,000 | | | | 3,712 | |
| RIB Software AG ‡ § | | | 150,000 | | | | 930 | |
| STRATEC Biomedical AG | | | 34,000 | | | | 1,380 | |
| Takkt AG | | | 80,000 | | | | 1,017 | |
| Tipp24 SE ‡ | | | 25,000 | | | | 1,164 | |
| Tom Tailor Holding AG ‡ | | | 140,000 | | | | 2,178 | |
| Wirecard AG | | | 80,000 | | | | 1,272 | |
Hong Kong — 1.1% | | | | | | | | |
| Dah Sing Banking Group, Ltd. | | | 2,715,240 | | | | 2,642 | |
| Shougang Concord International | | | | | | | | |
| Enterprises Co., Ltd. | | | 13,060,000 | | | | 908 | |
Indonesia — 0.9% | | | | | | | | |
| Ciputra Property PT | | | 36,066,000 | | | | 1,880 | |
| United Tractors PT | | | 343,484 | | | | 945 | |
Ireland — 3.6% | | | | | | | | |
| DCC PLC | | | 140,000 | | | | 3,930 | |
| Grafton Group PLC | | | 400,000 | | | | 1,568 | |
| IFG Group PLC | | | 680,000 | | | | 1,054 | |
| Irish Continental Group PLC | | | 85,000 | | | | 1,714 | |
| James Hardie Industries SE ‡ | | | 274,557 | | | | 1,778 | |
| Smurfit Kappa Group PLC ‡ | | | 220,000 | | | | 1,499 | |
Isle of Man — 1.0% | | | | | | | | |
| Exillon Energy PLC ‡ ^ | | | 325,000 | | | | 1,563 | |
| Lamprell PLC | | | 389,999 | | | | 1,512 | |
Italy — 2.9% | | | | | | | | |
| Azimut Holding SpA | | | 450,000 | | | | 3,508 | |
| Cairo Communication SpA | | | 330,000 | | | | 1,328 | |
| DiaSorin SpA ^ | | | 9,000 | | | | 291 | |
| Natuzzi SpA ADR ‡ § | | | 341,100 | | | | 843 | |
| Prysmian SpA ^ | | | 180,000 | | | | 2,721 | |
| Sorin SpA ‡ | | | 300,000 | | | | 627 | |
Japan — 17.1% | | | | | | | | |
| Accordia Golf Co., Ltd. | | | 2,495 | | | | 1,837 | |
| AICA Kogyo Co., Ltd. | | | 31,700 | | | | 429 | |
| Arcs Co., Ltd. ^ | | | 104,100 | | | | 1,853 | |
| Asahi Diamond Industrial Co., Ltd. ^ | | | 85,900 | | | | 1,265 | |
| Daido Steel Co., Ltd. ^ | | | 215,000 | | | | 1,303 | |
| Exedy Corp. ^ | | | 34,600 | | | | 1,002 | |
| Fujikura Kasei Co., Ltd. | | | 77,200 | | | | 363 | |
| Glory, Ltd. | | | 82,800 | | | | 1,772 | |
| Hitachi Transport System, Ltd. ^ | | | 77,300 | | | | 1,345 | |
| Icom, Inc. ^ | | | 11,300 | | | | 276 | |
| JSP Corp. ^ | | | 92,600 | | | | 1,359 | |
| Koito Manufacturing Co., Ltd. | | | 129,000 | | | | 1,944 | |
| Kureha Corp. ^ | | | 406,000 | | | | 1,813 | |
| Kuroda Electric Co., Ltd. | | | 111,600 | | | | 1,215 | |
| Lintec Corp. | | | 58,300 | | | | 1,232 | |
| Miura Co., Ltd. ^ | | | 17,400 | | | | 467 | |
| Modec, Inc. ^ | | | 162,000 | | | | 2,827 | |
| Musashi Seimitsu Industry Co., Ltd. | | | 115,600 | | | | 2,733 | |
| Nabtesco Corp. ^ | | | 31,300 | | | | 686 | |
| NEC Networks & System Integration Corp. ^ | | | 140,100 | | | | 2,107 | |
| Nichi-Iko Pharmaceutical Co., Ltd. ^ | | | 82,800 | | | | 1,953 | |
| Nidec Copal Corp. ^ | | | 56,400 | | | | 598 | |
| Nifco, Inc. ^ | | | 61,200 | | | | 1,596 | |
| Nihon Parkerizing Co., Ltd. ^ | | | 180,000 | | | | 2,424 | |
| Nippon Soda Co., Ltd. | | | 365,000 | | | | 1,680 | |
| Nippon Thompson Co., Ltd. ^ | | | 403,000 | | | | 2,596 | |
| Nitta Corp. ^ | | | 114,100 | | | | 2,071 | |
| OSAKA Titanium Technologies Co. ^ | | | 38,300 | | | | 2,110 | |
| Shinko Plantech Co., Ltd. | | | 66,500 | | | | 591 | |
| Shinmaywa Industries, Ltd. | | | 96,000 | | | | 325 | |
| Sumida Corp. | | | 60,800 | | | | 472 | |
| Takasago International Corp. | | | 265,000 | | | | 1,237 | |
| Tokai Tokyo Financial Holdings, Inc. ^ | | | 816,000 | | | | 2,266 | |
| Toyo Tanso Co., Ltd. ^ | | | 37,200 | | | | 1,726 | |
| Trusco Nakayama Corp. ^ | | | 123,000 | | | | 2,279 | |
| Tsumura & Co. ^ | | | 47,200 | | | | 1,328 | |
| Tsuruha Holdings, Inc. ^ | | | 22,000 | | | | 1,124 | |
| Tsutsumi Jewelry Co., Ltd. | | | 53,900 | | | | 1,256 | |
| Unipres Corp. | | | 10,400 | | | | 284 | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 146 | Annual Report 2011 |
Transamerica Schroders International Small Cap
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000's) | |
| |
Japan (continued) | | | | | | | | |
| Yushin Precision Equipment Co., Ltd. | | | 77,100 | | | $ | 1,487 | |
Jersey, Channel Islands — 0.5% | | | | | | | | |
| Regus PLC | | | 900,000 | | | | 1,092 | |
| West China Cement, Ltd. | | | 2,704,000 | | | | 505 | |
Korea, Republic of — 3.4% | | | | | | | | |
| BS Financial Group, Inc. ‡ | | | 281,410 | | | | 3,097 | |
| Hankook Tire Co., Ltd. | | | 74,250 | | | | 2,964 | |
| Mando Corp. | | | 18,474 | | | | 3,165 | |
| Taewoong Co., Ltd. ‡ ^ | | | 56,109 | | | | 1,635 | |
Luxembourg — 0.5% | | | | | | | | |
| SAF-Holland SA ‡ | | | 290,000 | | | | 1,788 | |
Malaysia — 0.1% | | | | | | | | |
| Media Prima Bhd | | | 218,200 | | | | 180 | |
Netherlands — 4.7% | | | | | | | | |
| Delta Lloyd NV | | | 270,000 | | | | 4,742 | |
| DOCdata NV | | | 7,403 | | | | 123 | |
| Fugro NV | | | 40,000 | | | | 2,349 | |
| Imtech NV ^ | | | 150,000 | | | | 4,431 | |
| Koninklijke Ten Cate NV | | | 65,000 | | | | 2,231 | |
| LBi International NV ‡ | | | 700,000 | | | | 1,512 | |
New Zealand — 1.2% | | | | | | | | |
| Fletcher Building, Ltd. ^ | | | 717,658 | | | | 3,829 | |
Norway — 1.7% | | | | | | | | |
| Morpol ASA ‡ | | | 400,000 | | | | 797 | |
| Statoil Fuel & Retail ASA ‡ | | | 360,000 | | | | 2,849 | |
| Storebrand ASA | | | 330,000 | | | | 2,016 | |
Singapore — 2.9% | | | | | | | | |
| First Resources, Ltd. ^ | | | 2,239,000 | | | | 2,507 | |
| Mapletree Industrial Trust REIT ^ | | | 2,089,800 | | | | 1,922 | |
| STX OSV Holdings, Ltd. | | | 1,912,000 | | | | 1,692 | |
| UOL Group, Ltd. | | | 317,000 | | | | 1,121 | |
| Yanlord Land Group, Ltd. ^ | | | 2,398,000 | | | | 1,945 | |
Spain — 0.8% | | | | | | | | |
| Codere SA ‡ ^ | | | 128,500 | | | | 1,470 | |
| Pescanova SA ^ | | | 40,000 | | | | 1,378 | |
Sweden — 1.2% | | | | | | | | |
| Byggmax Group AB | | | 612,000 | | | | 2,864 | |
| FinnvedenBulten AB ‡ | | | 225,000 | | | | 1,345 | |
Switzerland — 5.2% | | | | | | | | |
| Forbo Holding AG ‡ | | | 3,000 | | | | 1,418 | |
| Gategroup Holding AG ‡ | | | 110,000 | | | | 3,734 | |
| Helvetia Holding AG | | | 10,500 | | | | 3,836 | |
| Kuoni Reisen Holding AG ‡ | | | 7,700 | | | | 2,626 | |
| Newave Energy Holding SA ‡ § | | | 30,000 | | | | 1,432 | |
| Orior AG ‡ § | | | 50,000 | | | | 2,706 | |
| Temenos Group AG ‡ | | | 33,400 | | | | 635 | |
| Uster Technologies AG ‡ | | | 26,000 | | | | 1,036 | |
Taiwan — 0.2% | | | | | | | | |
| Bank of Kaohsiung | | | 2,374,890 | | | | 766 | |
Thailand — 0.2% | | | | | | | | |
| Big C Supercenter PCL | | | 8,700 | | | | 31 | |
| Quality Houses PCL | | | 17,121,000 | | | | 752 | |
United Kingdom — 17.6% | | | | | | | | |
| A.G.BARR PLC | | | 60,000 | | | | 1,165 | |
| Albemarle & Bond Holdings ^ § | | | 350,000 | | | | 1,733 | |
| Anglo Pacific Group PLC | | | 400,000 | | | | 1,728 | |
| Ashtead Group PLC | | | 700,000 | | | | 1,742 | |
| Berendsen PLC | | | 180,000 | | | | 1,341 | |
| Berkeley Group Holdings PLC ‡ | | | 70,000 | | | | 1,404 | |
| Bovis Homes Group PLC | | | 160,000 | | | | 1,207 | |
| Consort Medical PLC | | | 125,000 | | | | 1,033 | |
| Debenhams PLC | | | 1,000,000 | | | | 1,042 | |
| Dechra Pharmaceuticals PLC | | | 200,000 | | | | 1,576 | |
| Derwent London PLC REIT | | | 50,000 | | | | 1,361 | |
| Devro PLC | | | 450,000 | | | | 1,777 | |
| Dignity PLC ^ | | | 110,000 | | | | 1,441 | |
| E2V Technologies PLC | | | 850,000 | | | | 1,501 | |
| Elementis PLC | | | 700,000 | | | | 1,616 | |
| Fidessa Group PLC | | | 70,000 | | | | 1,827 | |
| Future PLC | | | 1,200,000 | | | $ | 203 | |
| Go-Ahead Group PLC | | | 50,000 | | | | 1,114 | |
| Grainger PLC | | | 854,036 | | | | 1,151 | |
| Hamworthy PLC | | | 275,000 | | | | 2,587 | |
| IG Group Holdings PLC | | | 65,562 | | | | 489 | |
| John Wood Group PLC | | | 155,555 | | | | 1,540 | |
| Keller Group PLC | | | 154,801 | | | | 912 | |
| Kier Group PLC | | | 80,000 | | | | 1,804 | |
| Millennium & Copthorne Hotels PLC | | | 231,771 | | | | 1,657 | |
| Morgan Crucible Co. PLC | | | 300,000 | | | | 1,361 | |
| Pennon Group PLC | | | 140,000 | | | | 1,564 | |
| Premier Oil PLC ‡ | | | 375,000 | | | | 2,208 | |
| PZ Cussons PLC | | | 320,000 | | | | 1,890 | |
| Rightmove PLC | | | 60,000 | | | | 1,255 | |
| SDL PLC | | | 215,000 | | | | 2,273 | |
| Senior PLC | | | 900,000 | | | | 2,400 | |
| Shanks Group PLC | | | 950,000 | | | | 1,685 | |
| SIG PLC | | | 800,000 | | | | 1,233 | |
| Tate & Lyle PLC | | | 145,000 | | | | 1,517 | |
| Travis Perkins PLC ^ | | | 100,000 | | | | 1,379 | |
| TT electronics PLC | | | 221,688 | | | | 559 | |
| Ultra Electronics Holdings PLC | | | 40,000 | | | | 1,021 | |
| Vitec Group PLC | | | 117,844 | | | | 1,135 | |
| William Hill PLC | | | 350,000 | | | | 1,215 | |
| | | | | | | |
Total Common Stocks (cost $314,567) | | | | | | | 325,091 | |
| | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL - 12.5% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 41,352,556 | | | | 41,353 | |
Total Securities Lending Collateral (cost $41,353) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT - 0.4% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $1,169 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 12/25/2024, with a value of $1,195. | | $ | 1,169 | | | | 1,169 | |
Total Repurchase Agreement (cost $1,169) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $357,089) Π | | | | | | | 367,613 | |
| Other Assets and Liabilities — Net | | | | | | | (37,255 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 330,358 | |
| | | | | | | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 147 | Annual Report 2011 |
Transamerica Schroders International Small Cap
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000's) | |
| |
| Machinery | | | 6.6 | % | | $ | 24,108 | |
| Auto Components | | | 4.1 | | | | 15,225 | |
| Chemicals | | | 4.0 | | | | 14,685 | |
| Metals & Mining | | | 3.9 | | | | 14,265 | |
| Hotels, Restaurants & Leisure | | | 3.4 | | | | 12,443 | |
| Construction & Engineering | | | 3.2 | | | | 11,933 | |
| Energy Equipment & Services | | | 3.2 | | | | 11,737 | |
| Health Care Equipment & Supplies | | | 3.0 | | | | 11,131 | |
| Commercial Services & Supplies | | | 3.0 | | | | 10,870 | |
| Trading Companies & Distributors | | | 2.9 | | | | 10,652 | |
| Insurance | | | 2.9 | | | | 10,594 | |
| Commercial Banks | | | 2.9 | | | | 10,524 | |
| Specialty Retail | | | 2.8 | | | | 10,293 | |
| Oil, Gas & Consumable Fuels | | | 2.4 | | | | 8,951 | |
| Electrical Equipment | | | 2.3 | | | | 8,460 | |
| Food Products | | | 2.2 | | | | 7,976 | |
| Software | | | 2.1 | | | | 7,878 | |
| Industrial Conglomerates | | | 2.1 | | | | 7,642 | |
| Real Estate Management & Development | | | 2.0 | | | | 7,321 | |
| Household Durables | | | 2.0 | | | | 7,312 | |
| Food & Staples Retailing | | | 1.7 | | | | 6,432 | |
| Containers & Packaging | | | 1.7 | | | | 6,398 | |
| Pharmaceuticals | | | 1.7 | | | | 6,337 | |
| Construction Materials | | | 1.7 | | | | 6,112 | |
| Textiles, Apparel & Luxury Goods | | | 1.6 | | | | 5,789 | |
| Capital Markets | | | 1.6 | | | | 5,774 | |
| Multiline Retail | | | 1.6 | | | | 5,748 | |
| Road & Rail | | | 1.5 | | | | 5,612 | |
| Electronic Equipment & Instruments | | | 1.5 | | | | 5,379 | |
| IT Services | | | 1.4 | | | | 5,239 | |
| Real Estate Investment Trusts | | | 1.4 | | | | 5,047 | |
| Diversified Telecommunication Services | | | 1.2 | | | | 4,512 | |
| Media | | | 1.2 | | | | 4,317 | |
| Health Care Providers & Services | | | 0.9 | | | | 3,441 | |
| Marine | | | 0.9 | | | | 3,406 | |
| Aerospace & Defense | | | 0.6 | | | | 2,226 | |
| Transportation Infrastructure | | | 0.5 | | | | 1,934 | |
| Household Products | | | 0.5 | | | | 1,890 | |
| Leisure Equipment & Products | | | 0.5 | | | | 1,733 | |
| Consumer Finance | | | 0.5 | | | | 1,733 | |
| Water Utilities | | | 0.4 | | | | 1,564 | |
| Diversified Financial Services | | | 0.4 | | | | 1,543 | |
| Internet Software & Services | | | 0.4 | | | | 1,512 | |
| Diversified Consumer Services | | | 0.4 | | | | 1,441 | |
| Gas Utilities | | | 0.4 | | | | 1,421 | |
| Biotechnology | | | 0.3 | | | | 1,242 | |
| Beverages | | | 0.3 | | | | 1,165 | |
| Internet & Catalog Retail | | | 0.3 | | | | 1,017 | |
| Building Products | | | 0.1 | | | | 429 | |
| Semiconductors & Semiconductor Equipment | | | 0.1 | | | | 422 | |
| Communications Equipment | | | 0.1 | | | | 276 | |
| | | | | | | |
| Investment Securities, at Value | | | 88.4 | | | | 325,091 | |
| Short-Term Investments | | | 11.6 | | | | 42,522 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 367,613 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $39,197. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| § | | Illiquid. These securities aggregated to $13,193, or 3.99%, of the fund’s net assets. |
| |
| Π | | Aggregate cost for federal income tax purposes is $358,902. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $48,265 and $39,554, respectively. Net unrealized appreciation for tax purposes is $8,711. |
| |
| ♦ | | Amount rounds to less than 1. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | Page 148 | Annual Report 2011 |
Transamerica Schroders International Small Cap
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
DEFINITIONS:
| | | |
|
ADR | | American Depositary Receipt |
REIT | | Real Estate Investment Trust (includes domestic REITs and Foreign Real Estate Investment Companies) |
STRIP VVPR | | Is a coupon which, if presented along with the corresponding coupon of the share, allows to benefit from a reduced withholding tax of 15% (rather than 25%) on the dividends paid by the company. |
VALUATION SUMMARY (all amounts in thousands): э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 22,234 | | | $ | 302,857 | | | $ | — | | | $ | 325,091 | |
| Repurchase Agreement | | | — | | | | 1,169 | | | | — | | | | 1,169 | |
| Securities Lending Collateral | | | 41,353 | | | | — | | | | — | | | | 41,353 | |
| | | |
Total | | $ | 63,587 | | | $ | 304,026 | | | $ | — | | | $ | 367,613 | |
| | | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Net Change in |
| | | | | | | | | | | | | | | | | | | | | Unrealized |
| | | | | | | | | | | | | | | | | | | | | Appreciation/ |
| | | | | | | | | | | | | Net Change in | | | | | | | | (Depreciation) |
| | | Beginning | | | | | | Accrued | | Total | | Unrealized | | Transfers | | Transfers | | Ending | | on Investments |
| | | Balance at | | | | | | Discounts/ | | Realized | | Appreciation/ | | into | | out of | | Balance at | | Held at |
| Securities | | 10/31/2010 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 10/31/2011 | | 10/31/2011 |
| |
| Rights | | $s | | $— | | $(s)∂ | | $— | | $— | | $— | | $— | | $— | | $— | | $— |
| | |
| э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ∂ | | Rights exercised on 11/03/2010. |
| | |
| |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | Page 149 | Annual Report 2011 |
Transamerica Third Avenue Value
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 90.6% | | | | | | | | |
Austria — 1.0% | | | | | | | | |
| Andritz AG | | | 35,000 | | | $ | 3,094 | |
Bermuda — 1.2% | | | | | | | | |
| Nabors Industries, Ltd. ‡ | | | 196,865 | | | | 3,609 | |
Canada — 16.0% | | | | | | | | |
| Brookfield Asset Management, Inc. — Class A | | | 610,036 | | | | 17,691 | |
| Canfor Corp. ‡ | | | 519,223 | | | | 5,251 | |
| Cenovus Energy, Inc. | | | 247,000 | | | | 8,447 | |
| EnCana Corp. | | | 387,000 | | | | 8,398 | |
| Viterra, Inc. | | | 907,150 | | | | 9,338 | |
France — 0.8% | | | | | | | | |
| Sanofi | | | 32,950 | | | | 2,357 | |
Germany — 2.3% | | | | | | | | |
| Lanxess AG | | | 123,000 | | | | 7,184 | |
Guernsey, Channel Islands — 2.8% | | | | | | | | |
| Resolution, Ltd. | | | 1,923,688 | | | | 8,466 | |
Hong Kong — 17.2% | | | | | | | | |
| Cheung Kong Holdings, Ltd. | | | 1,319,153 | | | | 16,302 | |
| Henderson Land Development Co., Ltd. | | | 2,654,727 | | | | 14,511 | |
| Hutchison Whampoa, Ltd. | | | 1,845,888 | | | | 16,872 | |
| Wharf Holdings, Ltd. | | | 328,141 | | | | 1,745 | |
| Wheelock & Co., Ltd. | | | 1,062,000 | | | | 3,120 | |
Japan — 9.9% | | | | | | | | |
| Mitsui Fudosan Co., Ltd. | | | 474,462 | | | | 7,890 | |
| Tokio Marine Holdings, Inc. | | | 381,380 | | | | 9,094 | |
| Toyota Industries Corp. ^ | | | 480,107 | | | | 13,499 | |
Korea, Republic of — 4.3% | | | | | | | | |
| POSCO ADR | | | 154,261 | | | | 13,254 | |
Sweden — 5.0% | | | | | | | | |
| Investor AB — Class A | | | 811,796 | | | | 15,401 | |
Switzerland — 1.9% | | | | | | | | |
| Pargesa Holding SA (Bearer Shares) | | | 73,000 | | | | 5,701 | |
United Kingdom — 0.3% | | | | | | | | |
| Segro PLC REIT | | | 200,000 | | | | 782 | |
United States — 27.9% | | | | | | | | |
| Alamo Group, Inc. ^ | | | 113,983 | | | | 2,718 | |
| Alexander & Baldwin, Inc. ^ | | | 43,770 | | | | 1,817 | |
| Applied Materials, Inc. | | | 493,961 | | | | 6,086 | |
| AVX Corp. | | | 756,041 | | | | 10,139 | |
| Bank of New York Mellon Corp. | | | 560,052 | | | | 11,917 | |
| Bristow Group, Inc. ^ | | | 173,630 | | | | 8,643 | |
| Capital Southwest Corp. | | | 19,256 | | | | 1,695 | |
| Cross Country Healthcare, Inc. ‡ ^ | | | 140,906 | | | | 705 | |
| Electronics for Imaging, Inc. ‡ ^ | | | 202,436 | | | | 3,037 | |
| Forest City Enterprises, Inc. — Class A ‡ ^ | | | 679,836 | | | | 9,300 | |
| Intel Corp. ^ | | | 255,961 | | | | 6,281 | |
| Investment Technology Group, Inc. ‡ | | | 424,815 | | | | 4,846 | |
| KeyCorp | | | 275,000 | | | | 1,942 | |
| Leucadia National Corp. ^ | | | 95,000 | | | | 2,549 | |
| Lexmark International, Inc. — Class A ‡ ^ | | | 21,205 | | | | 672 | |
| Lowe’s Cos., Inc. | | | 59,000 | | | | 1,240 | |
| Pharmaceutical Product Development, Inc. | | | 50,710 | | | | 1,673 | |
| Sycamore Networks, Inc. ^ | | | 47,153 | | | | 906 | |
| Tejon Ranch Co. ‡ ^ | | | 86,299 | | | | 2,243 | |
| Tellabs, Inc. | | | 941,479 | | | | 4,077 | |
| Westwood Holdings Group, Inc. ^ | | | 111,753 | | | | 4,095 | |
| | | | | | | | |
Total Common Stocks (cost $350,039) | | | | | | | 278,587 | |
| | | | | | | | |
SECURITIES LENDING COLLATERAL — 9.3% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 28,760,024 | | | | 28,760 | |
Total Securities Lending Collateral (cost $28,760) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 9.4% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $28,872 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 4.00%, due 12/25/2038 — 05/15/2039, with a total value of $29,450. | | $ | 28,872 | | | $ | 28,872 | |
Total Repurchase Agreement (cost $28,872) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $407,671) Π | | | | | | | 336,219 | |
| Other Assets and Liabilities — Net | | | | | | | (28,495 | ) |
| | | | | | | | |
Net Assets | | | | | | $ | 307,724 | |
| | | | | | | | |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 150 | | Annual Report 2011 |
Transamerica Third Avenue Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Real Estate Management & Development | | | 21.7 | % | | $ | 72,803 | |
| Diversified Financial Services | | | 7.0 | | | | 23,652 | |
| Capital Markets | | | 6.7 | | | | 22,554 | |
| Insurance | | | 5.2 | | | | 17,560 | |
| Industrial Conglomerates | | | 5.0 | | | | 16,872 | |
| Oil, Gas & Consumable Fuels | | | 5.0 | | | | 16,845 | |
| Auto Components | | | 4.0 | | | | 13,499 | |
| Metals & Mining | | | 4.0 | | | | 13,254 | |
| Semiconductors & Semiconductor Equipment | | | 3.7 | | | | 12,367 | |
| Energy Equipment & Services | | | 3.7 | | | | 12,252 | |
| Electronic Equipment & Instruments | | | 3.0 | | | | 10,138 | |
| Food Products | | | 2.8 | | | | 9,338 | |
| Chemicals | | | 2.1 | | | | 7,184 | |
| Machinery | | | 1.7 | | | | 5,812 | |
| Paper & Forest Products | | | 1.6 | | | | 5,251 | |
| Communications Equipment | | | 1.5 | | | | 4,983 | |
| Computers & Peripherals | | | 1.1 | | | | 3,709 | |
| Pharmaceuticals | | | 0.7 | | | | 2,357 | |
| Commercial Banks | | | 0.6 | | | | 1,941 | |
| Marine | | | 0.5 | | | | 1,817 | |
| Life Sciences Tools & Services | | | 0.5 | | | | 1,673 | |
| Specialty Retail | | | 0.4 | | | | 1,240 | |
| Real Estate Investment Trusts | | | 0.2 | | | | 782 | |
| Health Care Providers & Services | | | 0.2 | | | | 704 | |
| | | | | | | |
| Investment Securities, at Value | | | 82.9 | | | | 278,587 | |
| Short-Term Investments | | | 17.1 | | | | 57,632 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 336,219 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $28,017. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $408,336. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $17,044 and $89,161, respectively. Net unrealized depreciation for tax purposes is $72,117. |
DEFINITIONS:
| | |
| ADR | | American Depositary Receipt |
| |
| REIT | | Real Estate Investment Trust (includes domestic REITs and Foreign Real Estate Investment Companies) |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 139,315 | | | $ | 139,272 | | | $ | — | | | $ | 278,587 | |
| Repurchase Agreement | | | — | | | | 28,872 | | | | — | | | | 28,872 | |
| Securities Lending Collateral | | | 28,760 | | | | — | | | | — | | | | 28,760 | |
| | | |
Total | | $ | 168,075 | | | $ | 168,144 | | | $ | — | | | $ | 336,219 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 151 | | Annual Report 2011 |
Transamerica Thornburg International Value
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCK — 2.1% | | | | | | | | |
Germany — 2.1% | | | | | | | | |
| Volkswagen AG , 1.78% ▲ | | | 54,441 | | | $ | 9,481 | |
Total Preferred Stock (cost $5,254) | | | | | | | | |
COMMON STOCKS — 97.0% | | | | | | | | |
Australia — 1.6% | | | | | | | | |
| BHP Billiton, Ltd. | | | 181,292 | | | | 7,097 | |
Brazil — 3.3% | | | | | | | | |
| BM&FBovespa SA | | | 877,000 | | | | 5,236 | |
| Embraer SA ADR ‡ ^ | | | 154,427 | | | | 4,296 | |
| Natura Cosmeticos SA | | | 253,500 | | | | 4,932 | |
Canada — 5.4% | | | | | | | | |
| Canadian National Railway Co. | | | 97,689 | | | | 7,652 | |
| Canadian Natural Resources, Ltd. | | | 172,914 | | | | 6,099 | |
| Cenovus Energy, Inc. | | | 130,397 | | | | 4,466 | |
| Potash Corp., of Saskatchewan, Inc. | | | 123,545 | | | | 5,847 | |
Cayman Islands — 1.1% | | | | | | | | |
| Tencent Holdings, Ltd. | | | 215,584 | | | | 4,961 | |
China — 4.7% | | | | | | | | |
| China Life Insurance Co., Ltd. — Class H | | | 1,682,688 | | | | 4,329 | |
| China Merchants Bank Co., Ltd. — Class H | | | 3,183,950 | | | | 6,429 | |
| CITIC Securities Co., Ltd. — 144A ‡ | | | 203,200 | | | | 405 | |
| Industrial & Commercial Bank of China - | | | | | | | | |
| Class H | | | 8,572,900 | | | | 5,343 | |
| Sinopharm Group Co., Ltd. — Class H | | | 1,620,314 | | | | 4,359 | |
Denmark — 2.3% | | | | | | | | |
| Novo Nordisk A/S — Class B | | | 97,542 | | | | 10,356 | |
France — 6.8% | | | | | | | | |
| Air Liquide SA | | | 73,492 | | | | 9,489 | |
| LVMH Moet Hennessy Louis Vuitton SA | | | 72,990 | | | | 12,097 | |
| Publicis Groupe SA | | | 132,647 | | | | 6,399 | |
| Vallourec SA | | | 46,200 | | | | 2,801 | |
Germany — 10.7% | | | | | | | | |
| Adidas AG | | | 154,326 | | | | 10,869 | |
| Allianz SE | | | 60,900 | | | | 6,776 | |
| Fresenius Medical Care AG & Co., KGaA | | | 115,235 | | | | 8,394 | |
| SAP AG | | | 207,175 | | | | 12,528 | |
| Siemens AG | | | 93,300 | | | | 9,780 | |
Hong Kong — 3.7% | | | | | | | | |
| CNOOC, Ltd. | | | 4,717,055 | | | | 8,918 | |
| Hong Kong Exchanges & Clearing, Ltd. | | | 483,600 | | | | 8,180 | |
India — 1.0% | | | | | | | | |
| Coal India, Ltd. | | | 630,337 | | | | 4,268 | |
Ireland — 1.1% | | | | | | | | |
| Covidien PLC | | | 103,615 | | | | 4,874 | |
Israel — 3.1% A | | | | | | | | |
| Check Point Software Technologies, Ltd. ‡ ^ | | | 93,900 | | | | 5,411 | |
| Teva Pharmaceutical Industries, Ltd. ADR | | | 204,638 | | | | 8,359 | |
Japan — 10.3% | | | | | | | | |
| Canon, Inc. | | | 153,027 | | | | 6,947 | |
| Dai-ichi Life Insurance Co., Ltd. ^ | | | 3,897 | | | | 4,438 | |
| Fanuc Corp. | | | 32,835 | | | | 5,309 | |
| KDDI Corp. | | | 994 | | | | 7,281 | |
| Komatsu, Ltd. ^ | | | 348,700 | | | | 8,622 | |
| Mitsubishi UFJ Financial Group, Inc. ^ | | | 1,666,400 | | | | 7,242 | |
| Toyota Motor Corp. | | | 199,274 | | | | 6,616 | |
Korea, Republic of — 2.2% | | | | | | | | |
| Hyundai Motor Co. | | | 50,233 | | | | 10,116 | |
Mexico — 1.5% | | | | | | | | |
| Wal-Mart de Mexico SAB de CV — Series V | | | 2,558,080 | | | | 6,603 | |
Netherland Antilles — 2.3% | | | | | | | | |
| Schlumberger, Ltd. | | | 138,314 | | | | 10,162 | |
Netherlands — 1.6% | | | | | | | | |
| ING Groep NV ‡ | | | 393,600 | | | | 3,393 | |
| Yandex NV — Class A ‡ ^ | | | 127,500 | | | | 3,509 | |
Spain — 1.7% | | | | | | | | |
| Telefonica SA | | | 366,012 | | | | 7,778 | |
Sweden — 1.8% | | | | | | | | |
| Hennes & Mauritz AB — Class B | | | 240,330 | | | | 7,946 | |
Switzerland — 8.0% | | | | | | | | |
| Credit Suisse Group AG ‡ | | | 257,100 | | | | 7,414 | |
| Julius Baer Group, Ltd. ‡ | | | 119,855 | | | | 4,504 | |
| Nestle SA | | | 191,696 | | | | 11,087 | |
| Novartis AG | | | 172,541 | | | | 9,720 | |
| Swatch Group AG — BR | | | 7,050 | | | | 2,968 | |
Taiwan — 1.8% | | | | | | | | |
| High Tech Computer Corp. | | | 365,460 | | | | 8,213 | |
Turkey — 0.9% | | | | | | | | |
| Turkiye Garanti Bankasi AS | | | 1,123,943 | | | | 3,943 | |
United Kingdom — 20.1% | | | | | | | | |
| ARM Holdings PLC | | | 482,222 | | | | 4,525 | |
| BG Group PLC | | | 467,066 | | | | 10,129 | |
| British American Tobacco PLC | | | 234,229 | | | | 10,739 | |
| Carnival PLC | | | 223,355 | | | | 8,172 | |
| Kingfisher PLC | | | 1,673,790 | | | | 6,935 | |
| Pearson PLC | | | 292,207 | | | | 5,368 | |
| Reckitt Benckiser Group PLC | | | 192,362 | | | | 9,874 | |
| Rolls-Royce Holdings PLC | | | | | | | | |
| (C Entitlement Shares) ‡ Ə § | | | 22,177,980 | | | | 36 | |
| Rolls-Royce Holdings PLC ‡ | | | 321,420 | | | | 3,618 | |
| SABMiller PLC | | | 140,865 | | | | 5,130 | |
| Standard Chartered PLC | | | 446,575 | | | | 10,422 | |
| Tesco PLC | | | 1,681,123 | | | | 10,839 | |
| Vodafone Group PLC | | | 1,560,000 | | | | 4,332 | |
| | | | | | | | |
Total Common Stocks (cost $416,260) | | | | | | | 434,880 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 3.4% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 15,438,755 | | | | 15,439 | |
Total Securities Lending Collateral (cost $15,439) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000's) | | | (000's) | |
| |
REPURCHASE AGREEMENT — 0.2% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $737 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 12/25/2024, with a value of $752. | | $ | 737 | | | | 737 | |
Total Repurchase Agreement (cost $737) | | | | | | | | |
| |
| | | | | | | | |
| Total Investment Securities (cost $437,690) Π | | | | | | | 460,537 | |
| Other Assets and Liabilities — Net | | | | | | | (12,099 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 448,438 | |
| | | | | | | | |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 152 | | Annual Report 2011 |
Transamerica Thornburg International Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Net Unrealized | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | Appreciation | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Euro | | SSB | | | 3,920 | | | | 11/09/2011 | | | $ | 5,344 | | | $ | 79 | |
| Euro | | SSB | | | (15,299 | ) | | | 11/09/2011 | | | | (21,925 | ) | | | 759 | |
| Euro | | SSB | | | (6,968 | ) | | | 11/09/2011 | | | | (10,009 | ) | | | 368 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 1,206 | |
| | | | | | | | | | | | | | | | | | | | |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| SSB | | $ | 1,206 | | | $ | — | | | $ | 1,206 | |
| | | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000's) | |
| |
| Oil, Gas & Consumable Fuels | | | 7.4 | % | | $ | 33,879 | |
| Commercial Banks | | | 7.2 | | | | 33,378 | |
| Pharmaceuticals | | | 6.2 | | | | 28,435 | |
| Automobiles | | | 5.7 | | | | 26,213 | |
| Textiles, Apparel & Luxury Goods | | | 5.6 | | | | 25,934 | |
| Software | | | 3.9 | | | | 17,939 | |
| Food & Staples Retailing | | | 3.8 | | | | 17,442 | |
| Diversified Financial Services | | | 3.6 | | | | 16,809 | |
| Machinery | | | 3.6 | | | | 16,732 | |
| Insurance | | | 3.4 | | | | 15,543 | |
| Chemicals | | | 3.3 | | | | 15,337 | |
| Specialty Retail | | | 3.2 | | | | 14,881 | |
| Health Care Providers & Services | | | 2.8 | | | | 12,753 | |
| Capital Markets | | | 2.7 | | | | 12,323 | |
| Media | | | 2.6 | | | | 11,767 | |
| Wireless Telecommunication Services | | | 2.5 | | | | 11,613 | |
| Food Products | | | 2.4 | | | | 11,087 | |
| Tobacco | | | 2.3 | | | | 10,740 | |
| Energy Equipment & Services | | | 2.2 | | | | 10,162 | |
| Household Products | | | 2.2 | | | | 9,874 | |
| Industrial Conglomerates | | | 2.1 | | | | 9,780 | |
| Internet Software & Services | | | 1.8 | | | | 8,470 | |
| Communications Equipment | | | 1.8 | | | | 8,213 | |
| Hotels, Restaurants & Leisure | | | 1.8 | | | | 8,172 | |
| Aerospace & Defense | | | 1.7 | | | | 7,950 | |
| Diversified Telecommunication Services | | | 1.7 | | | | 7,778 | |
| Road & Rail | | | 1.7 | | | | 7,652 | |
| Metals & Mining | | | 1.5 | | | | 7,097 | |
| Office Electronics | | | 1.5 | | | | 6,947 | |
| Beverages | | | 1.1 | | | | 5,130 | |
| Personal Products | | | 1.1 | | | | 4,932 | |
| Health Care Equipment & Supplies | | | 1.1 | | | | 4,874 | |
| Semiconductors & Semiconductor Equipment | | | 1.0 | | | | 4,525 | |
| | | | | | | |
| Investment Securities, at Value | | | 96.5 | | | | 444,361 | |
| Short-Term Investments | | | 3.5 | | | | 16,176 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 460,537 | |
| | | | | | | |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 153 | | Annual Report 2011 |
Transamerica Thornburg International Value
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $14,955. |
| |
| ‡ | | Non-income producing security. |
| |
| § | | Illiquid. This security had a value of $36, or 0.01%, of the fund’s net assets. |
| |
| Ə | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. This security had a fair value of $36, or 0.01% of the fund’s net assets. |
| |
| Π | | Aggregate cost for federal income tax purposes is $439,859. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $49,826 and $29,148, respectively. Net unrealized appreciation for tax purposes is $20,678. |
DEFINITIONS (all amounts in thousands):
| | |
| 144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $405, or 0.09%, of the fund’s net assets. |
| |
| ADR | | American Depositary Receipt |
| |
| OTC | | Over the Counter |
| |
| SSB | | State Street Bank |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 60,254 | | | $ | 374,626 | | | $ | — | | | $ | 434,880 | |
| Preferred Stocks | | | — | | | | 9,481 | | | | — | | | | 9,481 | |
| Repurchase Agreement | | | — | | | | 737 | | | | — | | | | 737 | |
| Securities Lending Collateral | | | 15,439 | | | | — | | | | — | | | | 15,439 | |
| | | |
Total | | $ | 75,693 | | | $ | 384,844 | | | | | | | $ | 460,537 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Total at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Forward Foreign Currency Contracts — Appreciation | | $ | — | | | $ | 1,206 | | | $ | — | | | $ | 1,206 | |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 154 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
COMMON STOCKS — 90.8% | | | | | | | | |
Aerospace & Defense — 2.9% | | | | | | | | |
Goodrich Corp. Ŏ | | | 29,818 | | | $ | 3,657 | |
Beverages — 5.6% | | | | | | | | |
| Foster’s Group, Ltd. | | | 1,228,581 | | | | 6,901 | |
Biotechnology — 0.5% | | | | | | | | |
| Anadys Pharmaceuticals, Inc. ‡ | | | 184,139 | | | | 678 | |
Chemicals — 4.1% | | | | | | | | |
Nalco Holding Co. Ŏ | | | 135,762 | | | | 5,120 | |
Commercial Banks — 0.4% | | | | | | | | |
| Comerica, Inc. | | | 18,799 | | | | 480 | |
Communications Equipment — 1.9% | | | | | | | | |
| Motorola Mobility Holdings, Inc. ‡ | | | 59,869 | | | | 2,328 | |
Consumer Finance — 0.8% | | | | | | | | |
| Promise Co., Ltd. ‡ | | | 104,675 | | | | 1,011 | |
Containers & Packaging — 4.4% | | | | | | | | |
| Temple-Inland, Inc. | | | 170,352 | | | | 5,419 | |
Diversified Financial Services — 0.1% | | | | | | | | |
| Count Financial, Ltd. | | | 94,056 | | | | 137 | |
Diversified Telecommunication Services — 1.1% | | | | | | | | |
| PAETEC Holding Corp. ‡ | | | 238,960 | | | | 1,310 | |
Electric Utilities — 9.6% | | | | | | | | |
| Central Vermont Public Service Corp. | | | 23,104 | | | | 817 | |
| DPL, Inc. | | | 155,835 | | | | 4,730 | |
Progress Energy, Inc. Ŏ | | | 124,936 | | | | 6,508 | |
Energy Equipment & Services — 2.4% | | | | | | | | |
| Global Industries, Ltd. ‡ | | | 378,836 | | | | 3,012 | |
Health Care Equipment & Supplies — 5.1% | | | | | | | | |
Kinetic Concepts, Inc. ‡ Ŏ | | | 92,545 | | | | 6,329 | |
Health Care Providers & Services — 3.1% | | | | | | | | |
| Healthspring, Inc. ‡ | | | 54,500 | | | | 2,940 | |
| Medco Health Solutions, Inc. ‡ | | | 15,662 | | | | 859 | |
Health Care Technology — 3.7% | | | | | | | | |
Emdeon, Inc. – Class A ‡ Ŏ | | | 241,793 | | | | 4,587 | |
Household Products — 0.1% | | | | | | | | |
| Clorox Co. | | | 1,200 | | | | 80 | |
Independent Power Producers & Energy Traders — 2.4% | | | | | | | | |
| Constellation Energy Group, Inc. | | | 74,356 | | | | 2,952 | |
Insurance — 1.1% | | | | | | | | |
| Harleysville Group, Inc. | | | 22,393 | | | | 1,316 | |
Internet Software & Services — 1.5% | | | | | | | | |
| LoopNet, Inc. ‡ | | | 29,031 | | | | 514 | |
| S1 Corp. ‡ | | | 141,091 | | | | 1,372 | |
IT Services — 2.5% | | | | | | | | |
| RightNow Technologies, Inc. ‡ | | | 70,949 | | | | 3,052 | |
Leisure Equipment & Products — 0.1% | | | | | | | | |
| Jakks Pacific, Inc. | | | 7,542 | | | | 143 | |
Life Sciences Tools & Services — 4.7% | | | | | | | | |
| Caliper Life Sciences, Inc. ‡ | | | 192,394 | | | | 2,016 | |
| Pharmaceutical Product Development, Inc. | | | 115,534 | | | | 3,812 | |
Machinery — 1.5% | | | | | | | | |
| Charter International PLC | | | 110,000 | | | | 1,585 | |
| Colfax Corp. ‡ | | | 3,655 | | | | 92 | |
| International Mining Machinery Holdings, Ltd. | | | 191,186 | | | | 192 | |
Media — 0.1% | | | | | | | | |
| British Sky Broadcasting Group PLC | | | 9,135 | | | | 103 | |
Metals & Mining — 11.1% | | | | | | | | |
| BC Iron, Ltd. ‡ | | | 70,445 | | | | 178 | |
| Gold One International, Ltd. ‡ | | | 2,615,011 | | | | 1,502 | |
| Grande Cache Coal Corp. ‡ | | | 172,000 | | | | 1,703 | |
| Macarthur Coal, Ltd. | | | 457,250 | | | | 7,752 | |
| Metorex, Ltd. ‡ | | | 766,547 | | | | 786 | |
| Stillwater Mining Co. ‡ | | | 57,200 | | | | 650 | |
| Sundance Resources, Ltd. ‡ | | | 2,868,566 | | | | 1,296 | |
Multiline Retail — 1.1% | | | | | | | | |
| 99 Cents Only Stores ‡ | | | 62,722 | | | | 1,367 | |
Oil, Gas & Consumable Fuels — 7.3% | | | | | | | | |
| Bow Energy, Ltd. ‡ | | | 837,949 | | | | 1,302 | |
| Brigham Exploration Co. ‡ | | | 96,146 | | | | 3,500 | |
| El Paso Corp. | | | 48,642 | | | | 1,217 | |
| Energy Transfer Equity, LP | | | 600 | | | | 23 | |
| Extract Resources, Ltd. ‡ | | | 75,209 | | | | 602 | |
| Hunnu Coal, Ltd. ‡ | | | 354,534 | | | | 665 | |
Southern Union Co. Ŏ | | | 41,892 | | | | 1,761 | |
Real Estate Management & Development — 0.7% | | | | | | | | |
| SP Setia Bhd | | | 682,465 | | | | 852 | |
Semiconductors & Semiconductor Equipment — 10.8% | | | | | | | | |
| Advanced Analogic Technologies, Inc. ‡ | | | 185,559 | | | | 809 | |
| CSR PLC | | | 20,012 | | | | 58 | |
| CSR PLC — ADR ‡ | | | 40,422 | | | | 458 | |
| Mosaid Technologies, Inc. | | | 25,226 | | | | 1,152 | |
| Netlogic Microsystems, Inc. ‡ | | | 106,536 | | | | 5,241 | |
| Varian Semiconductor Equipment | | | | | | | | |
Associates, Inc. ‡ Ŏ | | | 92,127 | | | | 5,782 | |
Software — 0.1% | | | | | | | | |
| Fundtech, Ltd. | | | 6,462 | | | | 149 | |
| | | | | | | | |
Total Common Stocks (cost $110,649) | | | | | | | 112,857 | |
| | | | | | | | |
INVESTMENT COMPANY — 1.8% | | | | | | | | |
Capital Markets — 1.8% | | | | | | | | |
| SPDR S&P 500 ETF Trust | | | 18,005 | | | | 2,259 | |
Total Investment Company (cost $2,184) | | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
PURCHASED OPTIONS — 0.1% | | | | | | | | |
Call Options — 0.0% °° | | | | | | | | |
| Charles Schwab Corp. | | $ | 1 | | | | ♦ | |
| Call Strike $13.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| Express Scripts, Inc. | | | 3 | | | | 7 | |
| Call Strike $47.50 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Temple Inland, Inc. | | | ♦ | | | | 2 | |
| Call Strike $27.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
Put Options — 0.1% | | | | | | | | |
| Colfax Corp. | | | 3 | | | | 13 | |
| Put Strike $30.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| Colfax Corp. | | | 4 | | | | 30 | |
| Put Strike $30.00 | | | | | | | | |
| Expires 03/17/2012 | | | | | | | | |
| El Paso Corp. | | | 23 | | | | 10 | |
| Put Strike $24.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Energy Transfer Equity, LP | | | 1 | | | | 3 | |
| Put Strike $40.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 155 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Put Options (continued) | | | | | | | | |
| SPDR S&P 500 ETF Trust | | $ | 5 | | | $ | 7 | |
| Put Strike $120.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| | | | | | | | |
Total Purchased Options (cost $104) | | | | | | | 72 | |
| | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT - 29.9% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $37,135 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 12/25/2024, with a value of $37,880. | | $ | 37,135 | | | | 37,135 | |
Total Repurchase Agreement (cost $37,135) | | | | | | | | |
| |
| | | | | | | | |
| Total Investment Securities (cost $150,072) Π | | | | | | | 152,323 | |
| Other Assets and Liabilities — Net | | | | | | | (28,115 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 124,208 | |
| | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES SOLD SHORT — (15.5%) | | | | | | | | |
COMMON STOCKS — (12.5%) | | | | | | | | |
Chemicals — (2.9%) | | | | | | | | |
| Ecolab, Inc. | | | (66,506 | ) | | $ | (3,581 | ) |
Diversified Telecommunication Services — (1.0%) | | | | | | | | |
| Windstream Corp. | | | (97,327 | ) | | | (1,184 | ) |
Electric Utilities — (7.8%) | | | | | | | | |
| Duke Energy Corp. | | | (325,337 | ) | | | (6,644 | ) |
| Exelon Corp. | | | (68,983 | ) | | | (3,062 | ) |
Health Care Providers & Services — (0.1%) | | | | | | | | |
| Express Scripts, Inc. | | | (3,977 | ) | | | (182 | ) |
Machinery — (0.1%) | | | | | | | | |
| Colfax Corp. | | | (7,156 | ) | | | (181 | ) |
Metals & Mining — (0.1%) | | | | | | | | |
| Stillwater Mining Co. | | | (7,300 | ) | | | (83 | ) |
Oil, Gas & Consumable Fuels - 0.0% °° | | | | | | | | |
| Energy Transfer Equity, LP | | | (200 | ) | | | (8 | ) |
| Hathor Exploration, Ltd. | | | (3,585 | ) | | | (16 | ) |
Professional Services — (0.1%) | | | | | | | | |
| CoStar Group, Inc. | | | (1,076 | ) | | | (66 | ) |
Software — (0.4%) | | | | | | | | |
| ACI Worldwide, Inc. | | | (14,912 | ) | | | (457 | ) |
| | | | | | | | |
Total Common Stocks (cost $(14,861)) | | | | | | | (15,464 | ) |
| | | | | | | | |
INVESTMENT COMPANY — (3.0%) | | | | | | | | |
Capital Markets — (3.0%) | | | | | | | | |
| SPDR S&P 500 ETF Trust | | | (29,941 | ) | | | (3,756 | ) |
Total Investment Company (cost $(3,568)) | | | | | | | | |
| | | | | | | | |
Total Securities Sold Short (proceeds $(18,429)) | | | | | | | (19,220 | ) |
| | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
WRITTEN OPTIONS — (0.2%) | | | | | | | | |
Call Options — (0.2%) | | | | | | | | |
| ACI Worldwide, Inc. | | $ | (t | ) | | $ | (t | ) |
| Call Strike $30.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Brigham Exploration Co. | | | (14 | ) | | | (1 | ) |
| Call Strike $37.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Clorox Co. | | | (1 | ) | | | (2 | ) |
| Call Strike $67.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Colfax Corp. | | | (3 | ) | | | (1 | ) |
| Call Strike $30.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| Colfax Corp. | | | (4 | ) | | | (2 | ) |
| Call Strike $30.00 | | | | | | | | |
| Expires 03/17/2012 | | | | | | | | |
| Colfax Corp. | | | (1 | ) | | | (2 | ) |
| Call Strike $22.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Comerica, Inc. | | | (11 | ) | | | (16 | ) |
| Call Strike $25.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Comerica, Inc. | | | (8 | ) | | | (6 | ) |
| Call Strike $26.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Duke Energy Corp. | | | (1 | ) | | | (1 | ) |
| Call Strike $20.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| El Paso Corp. | | | (29 | ) | | | (13 | ) |
| Call Strike $25.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| El Paso Corp. | | | (13 | ) | | | (2 | ) |
| Call Strike $26.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Energy Transfer Equity, LP | | | (1 | ) | | | (t | ) |
| Call Strike $40.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Energy Transfer Equity, LP | | | (1 | ) | | | (1 | ) |
| Call Strike $40.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Energy Transfer Equity, LP | | | (8 | ) | | | (24 | ) |
| Call Strike $35.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Express Scripts, Inc. | | | (1 | ) | | | (7 | ) |
| Call Strike $40.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Express Scripts, Inc. | | | (1 | ) | | | (4 | ) |
| Call Strike $42.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Goodrich Corp. | | | (7 | ) | | | (19 | ) |
| Call Strike $120.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Goodrich Corp. | | | (t | ) | | | (1 | ) |
| Call Strike $120.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| Goodrich Corp. | | | (1 | ) | | | (t | ) |
| Call Strike $125.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Kinder Morgan, Inc. | | | (8 | ) | | | (1 | ) |
| Call Strike $30.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 156 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Call Options (continued) | | | | | | | | |
| Medco Health Solutions, Inc. | | $ | (6 | ) | | $ | (31 | ) |
| Call Strike $50.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Medco Health Soultions, Inc. | | | (3 | ) | | | (10 | ) |
| Call Strike $52.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Stillwater Mining Co. | | | (14 | ) | | | (35 | ) |
| Call Strike $9.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Stillwater Mining Co. | | | (5 | ) | | | (2 | ) |
| Call Strike $12.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Stillwater Mining Co. | | | (14 | ) | | | (13 | ) |
| Call Strike $11.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Stillwater Mining Co. | | | (17 | ) | | | (28 | ) |
| Call Strike $10.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Temple Inland, Inc. | | | (7 | ) | | | (6 | ) |
| Call Strike $31.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Windstream Corp. | | | (3 | ) | | | (4 | ) |
| Call Strike $11.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Windstream Corp. | | | (5 | ) | | | (2 | ) |
| Call Strike $12.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Windstream Corp. | | | (4 | ) | | | (6 | ) |
| Call Strike $11.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
Put Options - 0.0% ∞ | | | | | | | | |
| ACI Worldwide, Inc. Ə | | | (3 | ) | | | (7 | ) |
| Put Strike $25.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Brigham Exploration Co. | | | (2 | ) | | | (t | ) |
| Put Strike $36.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Charles Schwab Corp. | | | (1 | ) | | | (t | ) |
| Put Strike $10.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| Colfax Corp. | | | (1 | ) | | | (1 | ) |
| Put Strike $20.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Colfax Corp. Ə | | | (3 | ) | | | (1 | ) |
| Put Strike $17.50 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| El Paso Corp. | | | (12 | ) | | | (2 | ) |
| Put Strike $24.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| El Paso Corp. | | | (4 | ) | | | (t | ) |
| Put Strike $23.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Energy Transfer Equity, LP | | | (1 | ) | | | (1 | ) |
| Put Strike $40.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Express Scripts, Inc. | | | (1 | ) | | | (t | ) |
| Put Strike $37.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Express Scripts, Inc. | | | (1 | ) | | | (t | ) |
| Put Strike $42.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Express Scripts, Inc. | | | (3 | ) | | | (1 | ) |
| Put Strike $35.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Express Scripts, Inc. | | | (1 | ) | | | (2 | ) |
| Put Strike $47.50 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Goodrich Corp. | | | (7 | ) | | | (2 | ) |
| Put Strike $120.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Goodrich Corp. | | | (2 | ) | | | (t | ) |
| Put Strike $115.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Goodrich Corp. | | | (t | ) | | | (t | ) |
| Put Strike $120.00 | | | | | | | | |
| Expires 12/17/2011 | | | | | | | | |
| Kinder Morgan, Inc. | | | (10 | ) | | | (1 | ) |
| Put Strike $25.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| SPDR S&P 500 ETF Trust | | | (5 | ) | | | (2 | ) |
| Put Strike $110.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| SPDR S&P 500 ETF Trust | | | (t | ) | | | (1 | ) |
| Put Strike $126.00 | | | | | | | | |
| Expires 11/04/2011 | | | | | | | | |
Total Written Options (Premiums: $(157)) | | | | | | | (261 | ) |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 157 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | GSC | | | (2,500 | ) | | | 12/15/2011 | | | $ | (2,634 | ) | | $ | 15 | |
| Australian Dollar | | GSC | | | (596 | ) | | | 12/15/2011 | | | | (568 | ) | | | (56 | ) |
| Australian Dollar | | GSC | | | 18 | | | | 12/15/2011 | | | | 17 | | | | 1 | |
| Australian Dollar | | GSC | | | (500 | ) | | | 12/15/2011 | | | | (520 | ) | | | (4 | ) |
| Australian Dollar | | GSC | | | (332 | ) | | | 12/15/2011 | | | | (336 | ) | | | (12 | ) |
| Australian Dollar | | GSC | | | (768 | ) | | | 12/15/2011 | | | | (792 | ) | | | (13 | ) |
| Australian Dollar | | GSC | | | (260 | ) | | | 12/15/2011 | | | | (264 | ) | | | (9 | ) |
| Australian Dollar | | GSC | | | (214 | ) | | | 12/15/2011 | | | | (217 | ) | | | (7 | ) |
| Australian Dollar | | GSC | | | 70 | | | | 12/15/2011 | | | | 71 | | | | 3 | |
| Australian Dollar | | GSC | | | (3,058 | ) | | | 12/15/2011 | | | | (3,125 | ) | | | (80 | ) |
| Australian Dollar | | GSC | | | (200 | ) | | | 12/15/2011 | | | | (204 | ) | | | (5 | ) |
| Australian Dollar | | GSC | | | (550 | ) | | | 12/15/2011 | | | | (557 | ) | | | (20 | ) |
| Australian Dollar | | GSC | | | (60 | ) | | | 12/15/2011 | | | | (61 | ) | | | (2 | ) |
| Australian Dollar | | GSC | | | (116 | ) | | | 12/15/2011 | | | | (118 | ) | | | (3 | ) |
| Australian Dollar | | GSC | | | 20 | | | | 12/15/2011 | | | | 20 | | | | 1 | |
| Australian Dollar | | GSC | | | (360 | ) | | | 12/15/2011 | | | | (383 | ) | | | 6 | |
| Australian Dollar | | GSC | | | (110 | ) | | | 12/15/2011 | | | | (118 | ) | | | 2 | |
| Australian Dollar | | GSC | | | (27 | ) | | | 12/15/2011 | | | | (28 | ) | | | (1 | ) |
| Australian Dollar | | GSC | | | (490 | ) | | | 12/15/2011 | | | | (472 | ) | | | (42 | ) |
| Australian Dollar | | GSC | | | (70 | ) | | | 12/15/2011 | | | | (69 | ) | | | (4 | ) |
| Australian Dollar | | GSC | | | (530 | ) | | | 12/15/2011 | | | | (510 | ) | | | (45 | ) |
| Australian Dollar | | GSC | | | (127 | ) | | | 12/15/2011 | | | | (123 | ) | | | (10 | ) |
| Australian Dollar | | GSC | | | (340 | ) | | | 12/15/2011 | | | | (337 | ) | | | (19 | ) |
| Australian Dollar | | GSC | | | (213 | ) | | | 12/15/2011 | | | | (215 | ) | | | (8 | ) |
| Australian Dollar | | GSC | | | (260 | ) | | | 12/15/2011 | | | | (258 | ) | | | (14 | ) |
| Australian Dollar | | GSC | | | (2,300 | ) | | | 12/15/2011 | | | | (2,214 | ) | | | (196 | ) |
| Australian Dollar | | GSC | | | (570 | ) | | | 12/15/2011 | | | | (533 | ) | | | (65 | ) |
| Australian Dollar | | GSC | | | (170 | ) | | | 12/15/2011 | | | | (174 | ) | | | (4 | ) |
| Australian Dollar | | GSC | | | (1,987 | ) | | | 12/15/2011 | | | | (2,062 | ) | | | (21 | ) |
| Australian Dollar | | GSC | | | (385 | ) | | | 12/15/2011 | | | | (390 | ) | | | (14 | ) |
| Australian Dollar | | GSC | | | (160 | ) | | | 12/15/2011 | | | | (164 | ) | | | (4 | ) |
| Australian Dollar | | GSC | | | (2,250 | ) | | | 12/15/2011 | | | | (2,174 | ) | | | (185 | ) |
| Canadian Dollar | | GSC | | | (1,351 | ) | | | 12/15/2011 | | | | (1,363 | ) | | | 9 | |
| Canadian Dollar | | GSC | | | (550 | ) | | | 12/15/2011 | | | | (553 | ) | | | 1 | |
| Canadian Dollar | | GSC | | | 20 | | | | 12/15/2011 | | | | 20 | | | | (t | ) |
| Canadian Dollar | | GSC | | | 15 | | | | 12/15/2011 | | | | 15 | | | | t | |
| Canadian Dollar | | GSC | | | 1,410 | | | | 12/15/2011 | | | | 1,380 | | | | 33 | |
| Canadian Dollar | | GSC | | | 9 | | | | 12/15/2011 | | | | 9 | | | | t | |
| Canadian Dollar | | GSC | | | 440 | | | | 12/15/2011 | | | | 442 | | | | (1 | ) |
| Canadian Dollar | | GSC | | | (50 | ) | | | 12/15/2011 | | | | (48 | ) | | | (2 | ) |
| Canadian Dollar | | GSC | | | (20 | ) | | | 12/15/2011 | | | | (19 | ) | | | (1 | ) |
| Canadian Dollar | | GSC | | | (10 | ) | | | 12/15/2011 | | | | (10 | ) | | | (t | ) |
| Canadian Dollar | | GSC | | | (10 | ) | | | 12/15/2011 | | | | (10 | ) | | | (1 | ) |
| Canadian Dollar | | GSC | | | (200 | ) | | | 12/15/2011 | | | | (194 | ) | | | (7 | ) |
| Canadian Dollar | | GSC | | | (233 | ) | | | 12/15/2011 | | | | (222 | ) | | | (11 | ) |
| Danish Krone | | GSC | | | 40 | | | | 12/15/2011 | | | | 7 | | | | t | |
| Danish Krone | | GSC | | | (1,267 | ) | | | 12/15/2011 | | | | (236 | ) | | | 1 | |
| Danish Krone | | GSC | | | (346 | ) | | | 12/15/2011 | | | | (64 | ) | | | (1 | ) |
| Danish Krone | | GSC | | | (4,180 | ) | | | 12/15/2011 | | | | (771 | ) | | | (6 | ) |
| Danish Krone | | GSC | | | 5,753 | | | | 12/15/2011 | | | | 1,026 | | | | 44 | |
| Euro | | GSC | | | (66 | ) | | | 12/15/2011 | | | $ | (90 | ) | | | (1 | ) |
| Euro | | GSC | | | (260 | ) | | | 12/15/2011 | | | | (348 | ) | | | (11 | ) |
| Euro | | GSC | | | 326 | | | | 12/15/2011 | | | | 449 | | | | 2 | |
| Hong Kong Dollar | | GSC | | | (42 | ) | | | 12/15/2011 | | | | (5 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | 25 | | | | 12/15/2011 | | | | 3 | | | | t | |
| Hong Kong Dollar | | GSC | | | 17 | | | | 12/15/2011 | | | | 2 | | | | t | |
| Hong Kong Dollar | | GSC | | | (60 | ) | | | 12/15/2011 | | | | (8 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | (988 | ) | | | 12/15/2011 | | | | (127 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | (70 | ) | | | 12/15/2011 | | | | (9 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | (15 | ) | | | 12/15/2011 | | | | (2 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | 12 | | | | 12/15/2011 | | | | 2 | | | | t | |
| Hong Kong Dollar | | GSC | | | (10 | ) | | | 12/15/2011 | | | | (1 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | (95 | ) | | | 12/15/2011 | | | | (12 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | (360 | ) | | | 12/15/2011 | | | | (46 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | (41 | ) | | | 12/15/2011 | | | | (5 | ) | | | (t | ) |
| Hong Kong Dollar | | GSC | | | 8 | | | | 12/15/2011 | | | | 1 | | | | t | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 158 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Hong Kong Dollar | | GSC | | | 1 | | | | 12/15/2011 | | | $ | t | | | $ | t | |
| Hong Kong Dollar | | GSC | | | (7 | ) | | | 12/15/2011 | | | | (1 | ) | | | (t | ) |
| Japanese Yen | | GSC | | | (32,400 | ) | | | 12/15/2011 | | | | (419 | ) | | | 5 | |
| Japanese Yen | | GSC | | | (17,380 | ) | | | 12/15/2011 | | | | (226 | ) | | | 4 | |
| Japanese Yen | | GSC | | | (23,220 | ) | | | 12/15/2011 | | | | (300 | ) | | | 3 | |
| Japanese Yen | | GSC | | | 140 | | | | 12/15/2011 | | | | 2 | | | | (t | ) |
| Japanese Yen | | GSC | | | (10,105 | ) | | | 12/15/2011 | | | | (132 | ) | | | 2 | |
| Japanese Yen | | GSC | | | (130 | ) | | | 12/15/2011 | | | | (2 | ) | | | t | |
| Japanese Yen | | GSC | | | 100 | | | | 12/15/2011 | | | | 1 | | | | (t | ) |
| Japanese Yen | | GSC | | | 20 | | | | 12/15/2011 | | | | t | | | | (t | ) |
| Japanese Yen | | GSC | | | 1,450 | | | | 12/15/2011 | | | | 19 | | | | (t | ) |
| Japanese Yen | | GSC | | | 90 | | | | 12/15/2011 | | | | 1 | | | | (t | ) |
| Malaysian Ringgit | | GSC | | | (740 | ) | | | 12/15/2011 | | | | (228 | ) | | | (12 | ) |
| Malaysian Ringgit | | GSC | | | (30 | ) | | | 12/15/2011 | | | | (9 | ) | | | (t | ) |
| Malaysian Ringgit | | GSC | | | (4 | ) | | | 12/15/2011 | | | | (1 | ) | | | (t | ) |
| Malaysian Ringgit | | GSC | | | (79 | ) | | | 12/15/2011 | | | | (25 | ) | | | (1 | ) |
| Malaysian Ringgit | | GSC | | | (92 | ) | | | 12/15/2011 | | | | (29 | ) | | | (1 | ) |
| Malaysian Ringgit | | GSC | | | (16 | ) | | | 12/15/2011 | | | | (5 | ) | | | t | |
| Malaysian Ringgit | | GSC | | | (1,090 | ) | | | 12/15/2011 | | | | (353 | ) | | | (2 | ) |
| Malaysian Ringgit | | GSC | | | (347 | ) | | | 12/15/2011 | | | | (107 | ) | | | (6 | ) |
| Malaysian Ringgit | | GSC | | | (60 | ) | | | 12/15/2011 | | | | (19 | ) | | | (1 | ) |
| Malaysian Ringgit | | GSC | | | (46 | ) | | | 12/15/2011 | | | | (14 | ) | | | (1 | ) |
| Malaysian Ringgit | | GSC | | | (89 | ) | | | 12/15/2011 | | | | (28 | ) | | | (1 | ) |
| Malaysian Ringgit | | GSC | | | (21 | ) | | | 12/15/2011 | | | | (7 | ) | | | (t | ) |
| Norwegian Krone | | GSC | | | (2,720 | ) | | | 12/15/2011 | | | | (483 | ) | | | (4 | ) |
| Norwegian Krone | | GSC | | | 2,720 | | | | 12/15/2011 | | | | 467 | | | | 21 | |
| Pound Sterling | | GSC | | | (157 | ) | | | 12/15/2011 | | | | (248 | ) | | | (4 | ) |
| Pound Sterling | | GSC | | | (200 | ) | | | 12/15/2011 | | | | (316 | ) | | | (6 | ) |
| Pound Sterling | | GSC | | | (4 | ) | | | 12/15/2011 | | | | (6 | ) | | | (t | ) |
| Pound Sterling | | GSC | | | 12 | | | | 12/15/2011 | | | | 19 | | | | 1 | |
| Pound Sterling | | GSC | | | 20 | | | | 12/15/2011 | | | | 32 | | | | 1 | |
| Pound Sterling | | GSC | | | 20 | | | | 12/15/2011 | | | | 31 | | | | 1 | |
| Pound Sterling | | GSC | | | (25 | ) | | | 12/15/2011 | | | | (39 | ) | | | (2 | ) |
| Pound Sterling | | GSC | | | 10 | | | | 12/15/2011 | | | | 16 | | | | t | |
| Pound Sterling | | GSC | | | 8 | | | | 12/15/2011 | | | | 13 | | | | t | |
| Pound Sterling | | GSC | | | (90 | ) | | | 12/15/2011 | | | | (145 | ) | | | t | |
| Pound Sterling | | GSC | | | (40 | ) | | | 12/15/2011 | | | | (61 | ) | | | (3 | ) |
| Pound Sterling | | GSC | | | (17 | ) | | | 12/15/2011 | | | | (26 | ) | | | (1 | ) |
| Pound Sterling | | GSC | | | (250 | ) | | | 12/15/2011 | | | | (395 | ) | | | (7 | ) |
| Pound Sterling | | GSC | | | (50 | ) | | | 12/15/2011 | | | | (79 | ) | | | (2 | ) |
| Pound Sterling | | GSC | | | (62 | ) | | | 12/15/2011 | | | | (98 | ) | | | (2 | ) |
| Pound Sterling | | GSC | | | (150 | ) | | | 12/15/2011 | | | | (231 | ) | | | (10 | ) |
| Pound Sterling | | GSC | | | (57 | ) | | | 12/15/2011 | | | | (88 | ) | | | (4 | ) |
| Pound Sterling | | GSC | | | (6 | ) | | | 12/15/2011 | | | | (9 | ) | | | (t | ) |
| Pound Sterling | | GSC | | | (4 | ) | | | 12/15/2011 | | | | (6 | ) | | | (t | ) |
| Pound Sterling | | GSC | | | (5 | ) | | | 12/15/2011 | | | | (8 | ) | | | (t | ) |
| Pound Sterling | | GSC | | | (25 | ) | | | 12/15/2011 | | | | (39 | ) | | | (2 | ) |
| South African Rand | | GSC | | | 212 | | | | 12/15/2011 | | | | 26 | | | | t | |
| South African Rand | | GSC | | | 700 | | | | 12/15/2011 | | | | 84 | | | | 3 | |
| South African Rand | | GSC | | | (90 | ) | | | 12/15/2011 | | | | (12 | ) | | | 1 | |
| South African Rand | | GSC | | | 223 | | | | 12/15/2011 | | | | 28 | | | | (t | ) |
| South African Rand | | GSC | | | 199 | | | | 12/15/2011 | | | | 25 | | | | t | |
| South African Rand | | GSC | | | 445 | | | | 12/15/2011 | | | | 56 | | | | (t | ) |
| South African Rand | | GSC | | | 216 | | | | 12/15/2011 | | | | 27 | | | | (t | ) |
| South African Rand | | GSC | | | (761 | ) | | | 12/15/2011 | | | | (94 | ) | | | (1 | ) |
| South African Rand | | GSC | | | (3,800 | ) | | | 12/15/2011 | | | | (476 | ) | | | t | |
| South African Rand | | GSC | | | (200 | ) | | | 12/15/2011 | | | | (24 | ) | | | (1 | ) |
| South African Rand | | GSC | | | (570 | ) | | | 12/15/2011 | | | | (77 | ) | | | 6 | |
| South African Rand | | GSC | | | (4,300 | ) | | | 12/15/2011 | | | | (515 | ) | | | (23 | ) |
| South African Rand | | GSC | | | 953 | | | | 12/15/2011 | | | | 119 | | | | t | |
| South African Rand | | GSC | | | (50 | ) | | | 12/15/2011 | | | | (7 | ) | | | t | |
| Swedish Krona | | GSC | | | 1,574 | | | | 12/15/2011 | | | | 234 | | | | 7 | |
| Swedish Krona | | GSC | | | (1,574 | ) | | | 12/15/2011 | | | | (236 | ) | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (814 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 159 | | Annual Report 2011 |
Transamerica Water Island Arbitrage Strategy
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures (1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| GSC | | $ | (814 | ) | | $ | — | | | $ | (814 | ) |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
NOTES TO THE SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ‡ | | Non-income producing security. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| |
| Ə | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. These derivative instruments had a fair value of $(8), or (0.01)%, of the fund’s net assets. |
| |
| Ŏ | | A portion of these securities in the amount of $18,311 have been segregated as collateral with the broker for option and short position contracts. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $151,051. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $1,940 and $668, respectively. Net unrealized appreciation for tax purposes is $1,272. |
| |
| ♦ | | Amount rounds to less than 1. |
DEFINITIONS:
| | | |
|
ADR | | American Depositary Receipt |
ETF | | Exchange-Traded Fund |
| GSC | | Goldman Sachs & Co. |
| OTC | | Over the Counter |
SPDR | | Standard & Poor’s Depositary Receipt |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 87,521 | | | $ | 25,336 | | | $ | — | | | $ | 112,857 | |
| Investment Company | | | 2,259 | | | | — | | | | — | | | | 2,259 | |
| Purchased Options | | | 72 | | | | — | | | | — | | | | 72 | |
| Repurchase Agreement | | | — | | | | 37,135 | | | | — | | | | 37,135 | |
| | | |
Total | | $ | 89,852 | | | $ | 62,471 | | | $ | — | | | $ | 152,323 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Securities Sold Short | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | (15,464 | ) | | $ | — | | | $ | — | | | $ | (15,464 | ) |
| Investment Company | | | (3,756 | ) | | | — | | | | — | | | | (3,756 | ) |
| | | |
Total | | $ | (19,220 | ) | | $ | — | | | $ | — | | | $ | (19,220 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Written Options | | $ | — | | | $ | (261 | ) | | $ | — | | | $ | (261 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Forward Foreign Currency Contracts — Appreciation | | $ | — | | | $ | 173 | | | $ | — | | | $ | 173 | |
| Forward Foreign Currency Contracts — Depreciation | | | — | | | | (987 | ) | | | — | | | | (987 | ) |
| | | |
Total | | $ | — | | | $ | (814 | ) | | $ | — | | | $ | (814 | ) |
| | | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| | | | |
| The notes to the financial statements are an integral part of this report. | | | | |
| |
| Transamerica Funds | | | | Annual Report 2011 |
| Page 160 |
Transamerica WMC Emerging Markets
SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
PREFERRED STOCKS — 1.3% | | | | | | | | |
Brazil — 1.3% | | | | | | | | |
| Braskem SA, 5.60% ▲ | | | 239,900 | | | $ | 2,137 | |
| Cia Paranaense de Energia, 4.76% ▲ | | | 75,800 | | | | 1,517 | |
| Gerdau SA, 2.14% ▲ | | | 92,400 | | | | 832 | |
| | | | | | | | |
Total Preferred Stocks (cost $5,115) | | | | | | | 4,486 | |
| | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 98.3% | | | | | | | | |
Bermuda — 2.7% | | | | | | | | |
| Aquarius Platinum, Ltd. ^ | | | 795,102 | | | | 2,369 | |
| Central European Media Enterprises, Ltd. — Class A ‡ | | | 79,200 | | | | 874 | |
| Cosco Pacific, Ltd. | | | 1,206,000 | | | | 1,675 | |
| Credicorp, Ltd. | | | 7,500 | | | | 816 | |
| Shangri-La Asia, Ltd. | | | 1,754,000 | | | | 3,509 | |
Brazil — 13.8% | | | | | | | | |
| Banco Santander Brasil SA ADR ^ | | | 485,000 | | | | 4,414 | |
| BR Malls Participacoes SA | | | 200,000 | | | | 2,161 | |
| CCR SA | | | 156,600 | | | | 4,310 | |
| Centrais Eletricas Brasileiras SA ‡ | | | 204,900 | | | | 2,052 | |
| Cielo SA | | | 128,460 | | | | 3,405 | |
| Fibria Celulose SA | | | 193,400 | | | | 1,722 | |
| GOL Linhas Aereas Inteligentes SA ADR ^ | | | 364,398 | | | | 2,923 | |
| Julio Simoes Logistica SA | | | 239,300 | | | | 1,316 | |
| Natura Cosmeticos SA | | | 128,800 | | | | 2,506 | |
| Petroleo Brasileiro SA ADR | | | 549,500 | | | | 14,842 | |
| Redecard SA | | | 184,900 | | | | 3,107 | |
| TAM SA ADR ^ | | | 115,000 | | | | 2,310 | |
| Totvs SA | | | 106,600 | | | | 1,770 | |
Canada — 0.9% | | | | | | | | |
| Pacific Rubiales Energy Corp. | | | 132,400 | | | | 3,087 | |
Cayman Islands — 5.5% | | | | | | | | |
| Baidu, Inc. ADR ‡ | | | 22,900 | | | | 3,210 | |
| Belle International Holdings, Ltd. — Class A | | | 1,339,000 | | | | 2,606 | |
| Ctrip.com International, Ltd. ADR ‡ ^ | | | 48,700 | | | | 1,698 | |
| Hengan International Group Co., Ltd. | | | 459,000 | | | | 3,973 | |
| Simcere Pharmaceutical Group ADR ‡ ^ | | | 36,200 | | | | 331 | |
| Tencent Holdings, Ltd. | | | 165,300 | | | | 3,804 | |
| TPK Holding Co., Ltd. ‡ | | | 189,400 | | | | 3,172 | |
Chile — 1.1% | | | | | | | | |
| Enersis S.A. ADR | | | 136,900 | | | | 2,687 | |
| Sociedad Quimica y Minera de Chile SA ADR | | | 16,500 | | | | 965 | |
China — 6.5% | | | | | | | | |
| China Pacific Insurance Group Co., Ltd. | | | 860,400 | | | | 2,629 | |
| China Shenhua Energy Co., Ltd. — Class H | | | 706,000 | | | | 3,230 | |
| China Shipping Development Co., Ltd. — Class H | | | 2,898,000 | | | | 2,042 | |
| China Telecom Corp., Ltd. | | | 4,430,000 | | | | 2,729 | |
| Dongfeng Motor Group Co., Ltd. — Class H | | | 2,968,000 | | | | 4,871 | |
| Ping An Insurance Group Co. — Class H | | | 572,000 | | | | 4,238 | |
| Sinopharm Group Co., Ltd. — Class H | | | 855,600 | | | | 2,302 | |
Colombia — 0.4% | | | | | | | | |
| Ecopetrol SA | | | 625,755 | | | | 1,341 | |
Czech Republic — 1.0% | | | | | | | | |
| CEZ AS | | | 80,980 | | | | 3,424 | |
Hong Kong — 4.1% | | | | | | | | |
| AIA Group, Ltd. | | | 619,600 | | | | 1,895 | |
| China Mobile, Ltd. | | | 847,000 | | | | 8,051 | |
| CNOOC, Ltd. ADR | | | 13,100 | | | | 2,471 | |
| Galaxy Entertainment Group, Ltd. ‡ | | | 835,000 | | | | 1,689 | |
Hungary – 0.5% | | | | | | | | |
| Richter Gedeon | | | 10,725 | | | | 1,723 | |
India — 5.1% | | | | | | | | |
| Bharti Airtel, Ltd. | | | 278,779 | | | | 2,231 | |
| Canara Bank | | | 262,043 | | | | 2,500 | |
| Hero Motocorp, Ltd. | | | 38,603 | | | | 1,724 | |
| Larsen & Toubro, Ltd. | | | 58,901 | | | | 1,695 | |
| Oil & Natural Gas Corp., Ltd. | | | 461,316 | | | $ | 2,627 | |
| Ranbaxy Laboratories, Ltd. | | | 239,556 | | | | 2,462 | |
| Reliance Industries, Ltd. | | | 137,460 | | | | 2,454 | |
| Rural Electrification Corp., Ltd. | | | 148,404 | | | | 545 | |
| TTK Prestige, Ltd. | | | 1,090 | | | | 59 | |
| United Spirits, Ltd. | | | 60,097 | | | | 1,074 | |
Indonesia — 1.3% | | | | | | | | |
| Perusahaan Gas Negara PT | | | 5,009,500 | | | | 1,652 | |
| Telekomunikasi Indonesia PT ADR ^ | | | 79,900 | | | | 2,701 | |
Korea, Republic of — 19.8% | | | | | | | | |
| GS Engineering & Construction Corp. | | | 34,964 | | | | 3,040 | |
| GS Holdings | | | 55,506 | | | | 3,197 | |
| Hana Financial Group, Inc. | | | 139,200 | | | | 4,973 | |
| Hynix Semiconductor, Inc. | | | 208,280 | | | | 4,215 | |
| Hyundai Motor Co. | | | 26,876 | | | | 5,413 | |
| KB Financial Group, Inc. | | | 164,918 | | | | 6,388 | |
| Korean Air Lines Co., Ltd. | | | 46,210 | | | | 2,052 | |
| LG Chem, Ltd. | | | 8,547 | | | | 2,758 | |
| Lotte Shopping Co., Ltd. | | | 8,241 | | | | 2,958 | |
| NCSoft Corp. | | | 7,006 | | | | 2,202 | |
| POSCO | | | 9,202 | | | | 3,188 | |
| Samsung Card Co. | | | 29,888 | | | | 1,120 | |
| Samsung Electronics Co., Ltd. | | | 25,296 | | | | 21,777 | |
| Shinhan Financial Group Co., Ltd. | | | 105,077 | | | | 4,186 | |
Malaysia — 3.2% | | | | | | | | |
| AirAsia Bhd | | | 312,900 | | | | 393 | |
| AMMB Holdings Bhd | | | 1,154,200 | | | | 2,238 | |
| Axiata Group Bhd | | | 1,736,300 | | | | 2,744 | |
| CIMB Group Holdings Bhd | | | 956,800 | | | | 2,349 | |
| Genting Bhd | | | 939,400 | | | | 3,272 | |
Mauritius — 1.0% | | | | | | | | |
| Golden Agri-Resources, Ltd. ^ | | | 6,639,000 | | | | 3,399 | |
Mexico — 3.0% | | | | | | | | |
| Fomento Economico Mexicano SAB de CV ADR | | | 81,900 | | | | 5,492 | |
| Wal-Mart de Mexico SAB de CV — Series V | | | 1,805,700 | | | | 4,661 | |
Netherlands — 1.0% | | | | | | | | |
| X5 Retail Group NV GDR ‡ | | | 110,773 | | | | 3,328 | |
Philippines — 1.3% | | | | | | | | |
| Metropolitan Bank & Trust | | | 595,990 | | | | 986 | |
| Philippine Long Distance Telephone Co. ADR | | | 54,300 | | | | 3,016 | |
| Philippine Long Distance Telephone Co. | | | 3,375 | | | | 188 | |
Poland — 1.8% | | | | | | | | |
| Powszechna Kasa Oszczednosci Bank Polski SA | | | 230,241 | | | | 2,619 | |
| Powszechny Zaklad Ubezpieczen SA | | | 31,885 | | | | 3,377 | |
Russian Federation — 8.0% | | | | | | | | |
| Gazprom OAO ADR | | | 131,787 | | | | 1,530 | |
| Lukoil OAO ADR | | | 102,536 | | | | 5,916 | |
| Novatek OAO GDR | | | 28,121 | | | | 3,948 | |
| Rosneft Oil Co. GDR | | | 672,609 | | | | 4,786 | |
| Sberbank of Russian Federation | | | 2,831,134 | | | | 7,765 | |
| Uralkali OJSC GDR | | | 69,873 | | | | 3,032 | |
Singapore — 0.4% | | | | | | | | |
| Sakari Resources, Ltd. ^ | | | 736,000 | | | | 1,375 | |
South Africa — 3.6% | | | | | | | | |
| AngloGold Ashanti, Ltd. ADR ^ | | | 116,000 | | | | 5,245 | |
| MTN Group, Ltd. | | | 117,341 | | | | 2,039 | |
| Sasol, Ltd. | | | 113,313 | | | | 5,096 | |
Taiwan — 5.6% | | | | | | | | |
| Hon Hai Precision Industry Co., Ltd. | | | 3,576,177 | | | | 9,803 | |
| Quanta Computer, Inc. | | | 772,000 | | | | 1,519 | |
| Synnex Technology International Corp. | | | 1,676,620 | | | | 4,110 | |
| Taiwan Semiconductor Manufacturing Co., | | | | | | | | |
| Ltd. ADR | | | 89,700 | | | | 1,132 | |
| | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 161 | | Annual Report 2011 |
Transamerica WMC Emerging Markets
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Taiwan (continued) | | | | | | | | |
| Taiwan Semiconductor Manufacturing Co., Ltd. | | | 1,047,354 | | | $ | 2,552 | |
Thailand — 4.9% | | | | | | | | |
| Advanced Info Service PCL | | | 540,100 | | | | 2,292 | |
| Bangkok Bank PCL | | | 918,700 | | | | 4,426 | |
| Banpu PCL | | | 14,300 | | | | 289 | |
| Banpu PCL | | | 53,400 | | | | 1,100 | |
| Kasikornbank PCL — Foreign | | | 918,800 | | | | 3,711 | |
| PTT Global Chemical PCL ‡ | | | 1,658,396 | | | | 3,533 | |
| Total Access Communication PCL | | | 615,500 | | | | 1,471 | |
United States — 0.6% | | | | | | | | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 47,500 | | | | 1,912 | |
Virgin Islands, British — 1.2% | | | | | | | | |
| Mail.ru Group, Ltd. GDR ‡ | | | 110,973 | | | | 3,823 | |
| | | | | | | | |
Total Common Stocks (cost $358,412) | | | | | | | 333,907 | |
| | | | | | | | |
| | | | | | | | | |
SECURITIES LENDING COLLATERAL — 3.7% | | | | | | | | |
| State Street Navigator Securities Lending | | | | | | | | |
| Trust — Prime Portfolio, 0.23% ▲ | | | 12,514,562 | | | | 12,515 | |
Total Securities Lending Collateral (cost $12,515) | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $376,042) Π | | | | | | | 350,908 | |
| Other Assets and Liabilities — Net | | | | | | | (11,247 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 339,661 | |
| | | | | | | | |
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Net Unrealized | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | Appreciation | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Chilean Peso | | BOA | | | (1,201,568 | ) | | | 03/19/2012 | | | $ | (2,474 | ) | | $ | 61 | |
| South African Rand | | UBS | | | (22,607 | ) | | | 03/05/2012 | | | | (3,193 | ) | | | 394 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 455 | |
| | | | | | | | | | | | | | | | | | | | |
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures (1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| BOA | | $ | 61 | | | $ | — | | | $ | 61 | |
| UBS | | | 394 | | | | — | | | | 394 | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Total Investments | | | (000’s) | |
| |
| Oil, Gas & Consumable Fuels | | | 16.3 | % | | $ | 57,290 | |
| Commercial Banks | | | 11.4 | | | | 40,160 | |
| Semiconductors & Semiconductor Equipment | | | 8.5 | | | | 29,676 | |
| Wireless Telecommunication Services | | | 6.3 | | | | 22,032 | |
| Electronic Equipment & Instruments | | | 4.9 | | | | 17,085 | |
| Metals & Mining | | | 3.9 | | | | 13,546 | |
| Chemicals | | | 3.5 | | | | 12,426 | |
| Insurance | | | 3.5 | | | | 12,139 | |
| Automobiles | | | 3.4 | | | | 12,008 | |
| Internet Software & Services | | | 3.1 | | | | 10,837 | |
| Hotels, Restaurants & Leisure | | | 2.9 | | | | 10,168 | |
| Electric Utilities | | | 2.8 | | | | 9,680 | |
| | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 162 | | Annual Report 2011 |
Transamerica WMC Emerging Markets
SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (continued) (unaudited): | | Total Investments | | | (000's) | |
| |
| Food & Staples Retailing | | | 2.3 | % | | $ | 7,989 | |
| Diversified Financial Services | | | 2.2 | | | | 7,755 | |
| Airlines | | | 2.2 | | | | 7,678 | |
| Beverages | | | 1.9 | | | | 6,566 | |
| IT Services | | | 1.9 | | | | 6,512 | |
| Personal Products | | | 1.8 | | | | 6,479 | |
| Transportation Infrastructure | | | 1.7 | | | | 5,985 | |
| Diversified Telecommunication Services | | | 1.5 | | | | 5,430 | |
| Construction & Engineering | | | 1.3 | | | | 4,735 | |
| Pharmaceuticals | | | 1.3 | | | | 4,516 | |
| Software | | | 1.1 | | | | 3,972 | |
| Food Products | | | 1.0 | | | | 3,399 | |
| Multiline Retail | | | 0.8 | | | | 2,958 | |
| Specialty Retail | | | 0.7 | | | | 2,606 | |
| Health Care Providers & Services | | | 0.7 | | | | 2,302 | |
| Real Estate Management & Development | | | 0.6 | | | | 2,161 | |
| Marine | | | 0.6 | | | | 2,041 | |
| Paper & Forest Products | | | 0.5 | | | | 1,722 | |
| Gas Utilities | | | 0.5 | | | | 1,652 | |
| Computers & Peripherals | | | 0.4 | | | | 1,519 | |
| Road & Rail | | | 0.4 | | | | 1,316 | |
| Consumer Finance | | | 0.3 | | | | 1,120 | |
| Media | | | 0.2 | | | | 874 | |
| Household Durables | | | 0.0 | ∞ | | | 59 | |
| | | | | | | |
| Investment Securities, at Value | | | 96.4 | | | | 338,393 | |
| Short-Term Investments | | | 3.6 | | | | 12,515 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 350,908 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $12,088. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $378,834. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $11,113 and $39,039, respectively. Net unrealized depreciation for tax purposes is $27,926. |
| |
| ∞ | | Percentage rounds to less than 0.1%. |
| | | |
| DEFINITIONS: |
ADR | | American Depositary Receipt |
BOA | | Bank of America |
GDR | | Global Depositary Receipt |
OAO | | Otkrytoe Aktsionernoe Obschestvo (Russian: Open Joint Stock Corporation) |
OJSC | | Open Joint Stock Company |
OTC | | Over the Counter |
UBS | | UBS AG |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 98,843 | | | $ | 235,064 | | | $ | — | | | $ | 333,907 | |
| Preferred Stocks | | | 4,486 | | | | — | | | | — | | | | 4,486 | |
| Securities Lending Collateral | | | 12,515 | | | | — | | | | — | | | | 12,515 | |
Total | | $ | 115,844 | | | $ | 235,064 | | | $ | — | | | $ | 350,908 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Forward Foreign Currency Contracts — Appreciation | | $ | — | | | $ | 455 | | | $ | — | | | $ | 455 | |
| | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 163 | | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | Transamerica | | | | | | | Transamerica | | | | |
| | | BlackRock | | | Clarion Global | | | Transamerica | | | Hansberger | | | Transamerica | |
| | | Large Cap | | | Real Estate | | | First Quadrant | | | International | | | ICAP Select | |
| | | Value | | | Securities | | | Global Macro | | | Value(A) | | | Equity | |
| |
Assets: | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 591,866 | | | $ | 162,940 | | | $ | 50,345 | | | $ | 173,587 | | | $ | 908,434 | |
| Repurchase agreement, at value | | | — | | | | 1,023 | | | | 88,345 | | | | 1,776 | | | | 85,998 | |
| Foreign currency, at value | | | — | | | | 30 | | | | 4 | | | | 229 | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 10,713 | | | | 399 | | | | — | (B) | | | 371 | | | | 3,376 | |
| Shares of beneficial interest sold | | | — | | | | 6 | | | | — | | | | — | | | | — | |
| Interest | | | — | (B) | | | — | | | | — | (B) | | | — | (B) | | | — | (B) |
| Securities lending income (net) | | | 21 | | | | 4 | | | | — | (B) | | | 13 | | | | — | |
| Dividends | | | 657 | | | | 329 | | | | — | | | | 579 | | | | 769 | |
| Dividend reclaims | | | 1 | | | | 62 | | | | 18 | | | | 196 | | | | — | |
| Other | | | — | | | | — | | | | 227 | | | | — | | | | — | |
| Prepaid expenses | | | 1 | | | | — | (B) | | | — | (B) | | | — | (B) | | | — | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 4,350 | | | | — | | | | — | |
| | | |
| | | $ | 603,259 | | | $ | 164,793 | | | $ | 143,289 | | | $ | 176,751 | | | $ | 998,577 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Due to custodian | | | 384 | | | | — | | | | — | | | | — | | | | — | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | 11,473 | | | | 310 | | | | — | | | | 27 | | | | 61,713 | |
| Shares of beneficial interest redeemed | | | 181 | | | | 13 | | | | 22 | | | | 198 | | | | 68 | |
| Management and advisory fees | | | 380 | | | | 94 | | | | 146 | | | | 114 | | | | 449 | |
| Trustees fees | | | 2 | | | | 1 | | | | 1 | | | | 1 | | | | 3 | |
| Transfer agent fees | | | 4 | | | | — | (B) | | | 1 | | | | 1 | | | | 5 | |
| Custody fees | | | 13 | | | | 27 | | | | 31 | | | | 31 | | | | 11 | |
| Administration fees | | | 10 | | | | 2 | | | | 2 | | | | 3 | | | | 12 | |
| Audit and tax fees | | | 15 | | | | 20 | | | | 24 | | | | 18 | | | | 12 | |
| Variation margin | | | — | | | | — | | | | 460 | | | | — | | | | — | |
| Other | | | 14 | | | | 4 | | | | 4 | | | | 4 | | | | 25 | |
| Collateral for securities on loan | | | 46,734 | | | | 17,265 | | | | — | | | | 19,754 | | | | — | |
| Written options and swaptions, at value | | | — | | | | — | | | | 1,988 | | | | — | | | | — | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | 3,059 | | | | — | | | | — | |
| | | |
| | | | 59,210 | | | | 17,736 | | | | 5,738 | | | | 20,151 | | | | 62,298 | |
| | | |
Net assets | | $ | 544,049 | | | $ | 147,057 | | | $ | 137,551 | | | $ | 156,600 | | | $ | 936,279 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 623,987 | | | $ | 203,379 | | | $ | 208,777 | | | $ | 363,423 | | | $ | 912,217 | |
| Undistributed (accumulated) net investment income (loss) | | | 4,743 | | | | (4,861 | ) | | | — | | | | 4,751 | | | | 801 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | (134,014 | ) | | | (83,448 | ) | | | (73,649 | ) | | | (189,987 | ) | | | (3,807 | ) |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 49,333 | | | | 31,990 | | | | (363 | ) | | | (21,595 | ) | | | 27,068 | |
| Futures contracts | | | — | | | | — | | | | 1,611 | | | | — | | | | — | |
| Written option and swaption contracts | | | — | | | | — | | | | (120 | ) | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | — | | | | (3 | ) | | | 1,295 | | | | 8 | | | | — | |
| | | |
Net assets | | $ | 544,049 | | | $ | 147,057 | | | $ | 137,551 | | | $ | 156,600 | | | $ | 936,279 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 61,236 | | | | 12,634 | | | | 23,649 | | | | 22,764 | | | | 91,599 | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value and offering price per share | | $ | 8.88 | | | $ | 11.64 | | | $ | 5.82 | | | $ | 6.88 | | | $ | 10.22 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
Investment securities, at cost | | $ | 542,533 | | | $ | 130,950 | | | $ | 50,708 | | | $ | 195,182 | | | $ | 881,366 | |
| | | |
Repurchase agreement, at cost | | $ | — | | | $ | 1,023 | | | $ | 88,345 | | | $ | 1,776 | | | $ | 85,998 | |
| | | |
Foreign currency, at cost | | $ | — | | | $ | 30 | | | $ | 4 | | | $ | 228 | | | $ | — | |
| | | |
Securities loaned, at value | | $ | 45,618 | | | $ | 16,694 | | | $ | — | | | $ | 18,962 | | | $ | — | |
| | | |
Premium received on written option & swaption contracts | | $ | — | | | $ | — | | | $ | 1,868 | | | $ | — | | | $ | — | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 164 | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica | | | Transamerica | | | | |
| | | Transamerica | | | Transamerica | | | JPMorgan | | | JPMorgan | | | Transamerica | |
| | | Jennison | | | JPMorgan Core | | | International | | | Long/Short | | | JPMorgan Mid | |
| | | Growth | | | Bond | | | Bond | | | Strategy(C) | | | Cap Value | |
| |
Assets: | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 638,377 | | | $ | 2,178,030 | | | $ | 453,418 | | | $ | 103,836 | | | $ | 174,413 | |
| Repurchase agreement, at value | | | 9,829 | | | | 182,007 | | | | 19,466 | | | | 8,288 | | | | 2,944 | |
| Cash | | | — | | | | 107 | | | | — | | | | — | | | | — | |
| Cash on deposit with broker | | | — | | | | — | | | | — | | | | 76,912 | | | | — | |
| Foreign currency, at value | | | — | | | | — | | | | 1,881 | | | | — | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | — | | | | 451 | | | | — | | | | 1,426 | | | | 509 | |
| Shares of beneficial interest sold | | | — | (B) | | | 1,266 | | | | 231 | | | | — | | | | — | |
| Interest | | | — | (B) | | | 12,150 | | | | 4,989 | | | | — | (B) | | | — | (B) |
| Securities lending income (net) | | | 6 | | | | 19 | | | | — | | | | — | | | | 3 | |
| Dividends | | | 202 | | | | — | | | | — | | | | 100 | | | | 74 | |
| Dividend reclaims | | | 4 | | | | — | | | | — | | | | 2 | | | | — | |
| Other | | | — | | | | — | | | | 29 | | | | — | | | | — | |
| Prepaid expenses | | | 2 | | | | 2 | | | | 1 | | | | — | (B) | | | — | (B) |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 2,500 | | | | — | | | | — | |
| | | |
| | | $ | 648,420 | | | $ | 2,374,032 | | | $ | 482,515 | | | $ | 190,564 | | | $ | 177,943 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | 1,056 | | | | 11,830 | | | | — | | | | 1,386 | | | | — | |
| Shares of beneficial interest redeemed | | | 245 | | | | 130 | | | | 45 | | | | 17 | | | | 18 | |
| Management and advisory fees | | | 439 | | | | 748 | | | | 210 | | | | 127 | | | | 107 | |
| Trustees fees | | | 3 | | | | 9 | | | | 2 | | | | — | (B) | | | 1 | |
| Transfer agent fees | | | 1 | | | | 14 | | | | 3 | | | | 1 | | | | 1 | |
| Custody fees | | | 16 | | | | 55 | | | | 40 | | | | 8 | | | | 6 | |
| Administration fees | | | 11 | | | | 37 | | | | 8 | | | | 2 | | | | 2 | |
| Audit and tax fees | | | 17 | | | | 17 | | | | 19 | | | | 19 | | | | 17 | |
| Dividends from securities sold short | | | — | | | | — | | | | — | | | | 86 | | | | — | |
| Variation margin | | | — | | | | — | | | | 277 | | | | — | | | | — | |
| Other | | | 16 | | | | 74 | | | | 13 | | | | 16 | | | | 4 | |
| Collateral for securities on loan | | | 27,849 | | | | 152,335 | | | | — | | | | — | | | | 19,443 | |
| Securities sold short, at value | | | — | | | | — | | | | — | | | | 75,794 | | | | — | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | 6,606 | | | | — | | | | — | |
| | | |
| | | | 29,653 | | | | 165,249 | | | | 7,223 | | | | 77,456 | | | | 19,599 | |
| | | |
Net assets | | $ | 618,767 | | | $ | 2,208,783 | | | $ | 475,292 | | | $ | 113,108 | | | $ | 158,344 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 441,838 | | | $ | 2,145,793 | | | $ | 444,251 | | | $ | 128,425 | | | $ | 146,635 | |
| Undistributed (accumulated) net investment income (loss) | | | — | | | | 3,706 | | | | 23,705 | | | | — | | | | 1,131 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | 17,777 | | | | (1,274 | ) | | | 2,120 | | | | (14,276 | ) | | | (19,096 | ) |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 159,152 | | | | 60,558 | | | | 9,295 | | | | (2,110 | ) | | | 29,674 | |
| Futures contracts | | | — | | | | — | | | | 69 | | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | — | | | | — | | | | (4,148 | ) | | | — | | | | — | |
| Securities sold short | | | — | | | | — | | | | — | | | | 1,069 | | | | — | |
| | | |
Net assets | | $ | 618,767 | | | $ | 2,208,783 | | | $ | 475,292 | | | $ | 113,108 | | | $ | 158,344 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 47,827 | | | | 208,458 | | | | 42,286 | | | | 14,397 | | | | 14,491 | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value and offering price per share | | $ | 12.94 | | | $ | 10.60 | | | $ | 11.24 | | | $ | 7.86 | | | $ | 10.93 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
Investment securities, at cost | | $ | 479,225 | | | $ | 2,117,472 | | | $ | 444,123 | | | $ | 105,946 | | | $ | 144,739 | |
| | | |
Repurchase agreement, at cost | | $ | 9,829 | | | $ | 182,007 | | | $ | 19,466 | | | $ | 8,288 | | | $ | 2,944 | |
| | | |
Foreign currency, at cost | | $ | — | | | $ | — | | | $ | 1,883 | | | $ | — | | | $ | — | |
| | | |
Securities loaned, at value | | $ | 27,262 | | | $ | 149,248 | | | $ | — | | | $ | — | | | $ | 18,941 | |
| | | |
Proceeds received from securities sold short | | $ | — | | | $ | — | | | $ | — | | | $ | 76,863 | | | $ | — | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | Page 165 | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Transamerica | | | Transamerica Morgan | | | Transamerica Morgan | | | Transamerica Morgan | |
| | | Transamerica Loomis | | | MFS International | | | Stanley Emerging | | | Stanley Mid-Cap | | | Stanley Small | |
| | | Sayles Bond | | | Equity | | | Markets Debt | | | Growth | | | Company Growth | |
| |
Assets: | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 483,990 | | | $ | 367,386 | | | $ | 312,869 | | | $ | 318,066 | | | $ | 220,305 | |
| Repurchase agreement, at value | | | 9,403 | | | | 1,220 | | | | 32,788 | | | | 2,796 | | | | 3,431 | |
| Cash | | | 98 | | | | — | | | | — | | | | — | | | | — | |
| Cash on deposit with broker | | | — | | | | — | | | | 313 | | | | — | | | | — | |
| Foreign currency, at value | | | 62 | | | | — | | | | 147 | | | | — | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | — | | | | 2,995 | | | | — | | | | 361 | | | | 1,522 | |
| Shares of beneficial interest sold | | | 61 | | | | — | | | | 231 | | | | — | | | | — | |
| Interest | | | 7,212 | | | | — | (B) | | | 4,845 | | | | — | (B) | | | — | (B) |
| Securities lending income (net) | | | 10 | | | | 4 | | | | 5 | | | | 77 | | | | 118 | |
| Dividends | | | 80 | | | | 897 | | | | — | | | | 66 | | | | 134 | |
| Dividend reclaims | | | — | | | | 297 | | | | — | | | | 36 | | | | — | |
| Variation margin | | | — | | | | — | | | | 37 | | | | — | | | | — | |
| Prepaid expenses | | | 1 | | | | 1 | | | | — | (B) | | | — | (B) | | | — | (B) |
| | | |
| | | $ | 500,917 | | | $ | 372,800 | | | $ | 351,235 | | | $ | 321,402 | | | $ | 225,510 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | 2,573 | | | | 3,466 | | | | 4,781 | | | | — | | | | 1,559 | |
| Shares of beneficial interest redeemed | | | 70 | | | | 378 | | | | 25 | | | | 84 | | | | 92 | |
| Management and advisory fees | | | 248 | | | | 263 | | | | 238 | | | | 175 | | | | 137 | |
| Trustees fees | | | 2 | | | | 1 | | | | 1 | | | | 1 | | | | 1 | |
| Transfer agent fees | | | 3 | | | | 1 | | | | 2 | | | | 2 | | | | 1 | |
| Custody fees | | | 24 | | | | 62 | | | | 15 | | | | 15 | | | | 10 | |
| Administration fees | | | 8 | | | | 6 | | | | 5 | | | | 4 | | | | 3 | |
| Audit and tax fees | | | 19 | | | | 17 | | | | 18 | | | | 17 | | | | 17 | |
| Other | | | 11 | | | | 9 | | | | 8 | | | | 7 | | | | 5 | |
| Collateral for securities on loan | | | 35,619 | | | | 14,903 | | | | 35,765 | | | | 52,437 | | | | 45,268 | |
| | | |
| | | | 38,577 | | | | 19,106 | | | | 40,858 | | | | 52,742 | | | | 47,093 | |
| | | |
Net assets | | $ | 462,340 | | | $ | 353,694 | | | $ | 310,377 | | | $ | 268,660 | | | $ | 178,417 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 414,077 | | | $ | 304,460 | | | $ | 295,885 | | | $ | 180,494 | | | $ | 147,976 | |
| Undistributed (accumulated) net investment income (loss) | | | 8,071 | | | | 8,051 | | | | 396 | | | | — | | | | 832 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | 25,612 | | | | 47,137 | | | | 728 | | | | 39,695 | | | | (2,621 | ) |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 14,623 | | | | (5,945 | ) | | | 13,348 | | | | 48,470 | | | | 32,232 | |
| Futures contracts | | | — | | | | — | | | | 37 | | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (43 | ) | | | (9 | ) | | | (17 | ) | | | 1 | | | | (2 | ) |
| | | |
Net assets | | $ | 462,340 | | | $ | 353,694 | | | $ | 310,377 | | | $ | 268,660 | | | $ | 178,417 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 43,584 | | | | 42,391 | | | | 28,867 | | | | 20,554 | | | | 15,473 | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value and offering price per share | | $ | 10.61 | | | $ | 8.34 | | | $ | 10.75 | | | $ | 13.07 | | | $ | 11.53 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment securities, at cost | | $ | 469,367 | | | $ | 373,331 | | | $ | 299,521 | | | $ | 269,596 | | | $ | 188,073 | |
| | | |
Repurchase agreement, at cost | | $ | 9,403 | | | $ | 1,220 | | | $ | 32,788 | | | $ | 2,796 | | | $ | 3,431 | |
| | | |
Foreign currency, at cost | | $ | 64 | | | $ | — | | | $ | 164 | | | $ | — | | | $ | — | |
| | | |
Securities loaned, at value | | $ | 34,841 | | | $ | 14,231 | | | $ | 35,043 | | | $ | 51,236 | | | $ | 44,106 | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 166 | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | Transamerica | | | Transamerica | | | | | | | |
| | | Neuberger | | | Oppenheimer | | | Oppenheimer | | | Transamerica | | | Transamerica | |
| | | Berman | | | Developing | | | Small- & Mid- | | | PIMCO Real | | | PIMCO Total | |
| | | International | | | Markets | | | Cap Value | | | Return TIPS | | | Return | |
| |
Assets: | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 380,700 | | | $ | 531,335 | | | $ | 271,203 | | | $ | 1,203,851 | | | $ | 802,100 | |
| Repurchase agreement, at value | | | 16,153 | | | | 8,875 | | | | 22,460 | | | | 1,499 | | | | 12,674 | |
| Cash | | | — | | | | 3 | | | | — | | | | — | | | | — | |
| Foreign currency, at value | | | 558 | | | | 388 | | | | — | | | | 191 | | | | 320 | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 1,596 | | | | 2,238 | | | | 2,784 | | | | 17,866 | | | | 69,104 | |
| Shares of beneficial interest sold | | | — | | | | — | | | | — | | | | 1,900 | | | | — | |
| Interest | | | — | (B) | | | — | (B) | | | — | (B) | | | 5,974 | | | | 5,142 | |
| Securities lending income (net) | | | 22 | | | | 12 | | | | 9 | | | | 8 | | | | 6 | |
| Dividends | | | 525 | | | | 750 | | | | 114 | | | | — | | | | — | |
| Dividend reclaims | | | 317 | | | | — | | | | 6 | | | | — | | | | — | |
| Variation margin | | | — | | | | — | | | | — | | | | 401 | | | | 130 | |
| Prepaid expenses | | | 1 | | | | 1 | | | | 1 | | | | 2 | | | | 1 | |
| Unrealized appreciation on swap agreements | | | — | | | | — | | | | — | | | | 1,989 | | | | 3,726 | |
| Premium paid on swap agreements | | | — | | | | — | | | | — | | | | 2,176 | | | | 1,379 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | 377 | | | | 1,552 | |
| | | |
| | | $ | 399,872 | | | $ | 543,602 | | | $ | 296,577 | | | $ | 1,236,234 | | | $ | 896,134 | |
| | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Cash deposit due to broker | | | — | | | | — | | | | — | | | | 1,545 | | | | 3,780 | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | 3,461 | | | | 1,211 | | | | 8,276 | | | | 201,042 | | | | 168,633 | |
| Shares of beneficial interest redeemed | | | 681 | | | | 143 | | | | 100 | | | | 84 | | | | 189 | |
| Management and advisory fees | | | 297 | | | | 454 | | | | 193 | | | | 523 | | | | 344 | |
| Trustees fees | | | 1 | | | | 2 | | | | 1 | | | | 4 | | | | 3 | |
| Transfer agent fees | | | 2 | | | | 3 | | | | 2 | | | | 6 | | | | 3 | |
| Custody fees | | | 68 | | | | 135 | | | | 11 | | | | 49 | | | | 42 | |
| Administration fees | | | 6 | | | | 8 | | | | 4 | | | | 16 | | | | 10 | |
| Audit and tax fees | | | 22 | | | | 44 | | | | 18 | | | | 22 | | | | 22 | |
| Dividends from securities sold short | | | — | | | | — | | | | — | | | | 7 | | | | — | |
| Interest payable | | | — | | | | — | | | | — | | | | 24 | | | | 378 | |
| Capital gains tax | | | — | | | | 95 | | | | — | | | | — | | | | — | |
| Other | | | 9 | | | | 11 | | | | 7 | | | | 31 | | | | 19 | |
| Collateral for securities on loan | | | 35,679 | | | | 43,840 | | | | 29,429 | | | | 42,016 | | | | 45,810 | |
| Reverse repurchase agreement, at value | | | — | | | | — | | | | — | | | | 10,658 | | | | — | |
| Written options and swaptions, at value | | | — | | | | — | | | | — | | | | 1,031 | | | | 465 | |
| Unrealized depreciation on swap agreements | | | — | | | | — | | | | — | | | | 1,185 | | | | 2,946 | |
| Premium received on swap agreements | | | — | | | | — | | | | — | | | | 1,137 | | | | 1,081 | |
| Securities sold short, at value | | | — | | | | — | | | | — | | | | — | | | | 41,225 | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | 5,220 | | | | 5,449 | |
| | | |
| | | | 40,226 | | | | 45,946 | | | | 38,041 | | | | 264,600 | | | | 270,399 | |
| | | |
Net assets | | $ | 359,646 | | | $ | 497,656 | | | $ | 258,536 | | | $ | 971,634 | | | $ | 625,735 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 477,170 | | | $ | 426,956 | | | $ | 230,360 | | | $ | 879,424 | | | $ | 620,365 | |
| Undistributed (accumulated) net investment income (loss) | | | 5,236 | | | | 2,677 | | | | 956 | | | | 5,592 | | | | 3,557 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | (169,852 | ) | | | 33,512 | | | | 4,833 | | | | 44,692 | | | | 2,294 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 47,095 | | | | 34,632 | | | | 22,387 | | | | 43,730 | | | | 2,634 | |
| Futures contracts | | | — | | | | — | | | | — | | | | 1,246 | | | | (101 | ) |
| Written option and swaption contracts | | | — | | | | — | | | | — | | | | 1,237 | | | | 226 | |
| Swap agreements | | | — | | | | — | | | | — | | | | 804 | | | | 780 | |
| Translation of assets and liabilities denominated in foreign currencies | | | (3 | ) | | | (121 | ) | | | — | | | | (5,091 | ) | | | (3,884 | ) |
| Securities sold short | | | — | | | | — | | | | — | | | | — | | | | (136 | ) |
| | | |
Net assets | | $ | 359,646 | | | $ | 497,656 | | | $ | 258,536 | | | $ | 971,634 | | | $ | 625,735 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 42,291 | | | | 40,544 | | | | 27,094 | | | | 84,866 | | | | 60,077 | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value and offering price per share | | $ | 8.50 | | | $ | 12.27 | | | $ | 9.54 | | | $ | 11.45 | | | $ | 10.42 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
Investment securities, at cost | | $ | 333,605 | | | $ | 496,703 | | | $ | 248,816 | | | $ | 1,160,121 | | | $ | 799,466 | |
| | | |
Repurchase agreement, at cost | | $ | 16,153 | | | $ | 8,875 | | | $ | 22,460 | | | $ | 1,499 | | | $ | 12,674 | |
| | | |
Reverse repurchase agreement, at cost | | $ | — | | | $ | — | | | $ | — | | | $ | (10,658 | ) | | $ | — | |
| | | |
Foreign currency, at cost | | $ | 558 | | | $ | 414 | | | $ | — | | | $ | 189 | | | $ | 319 | |
| | | |
Securities loaned, at value | | $ | 34,143 | | | $ | 42,424 | | | $ | 28,736 | | | $ | 41,149 | | | $ | 44,881 | |
| | | |
Premium received on written option & swaption contracts | | $ | — | | | $ | — | | | $ | — | | | $ | 2,268 | | | $ | 691 | |
| | | |
Proceeds received from securities sold short | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 41,089 | |
| | | |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. | | |
| |
| Transamerica Funds | Page 167 | Annual Report 2011 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | | | | | Transamerica | | | Transamerica | | | | |
| | | Schroders | | | Transamerica | | | Thornburg | | | Water Island | | | Transamerica | |
| | | International | | | Third Avenue | | | International | | | Arbitrage | | | WMC Emerging | |
| | | Small Cap | | | Value | | | Value | | | Strategy | | | Markets | |
| |
Assets: | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 366,444 | | | $ | 307,347 | | | $ | 459,800 | | | $ | 115,188 | | | $ | 350,908 | |
| Repurchase agreement, at value | | | 1,169 | | | | 28,872 | | | | 737 | | | | 37,135 | | | | — | |
| Cash | | | — | | | | — | | | | — | | | | 29 | | | | — | |
| Cash on deposit with broker | | | — | | | | — | | | | — | | | | 12,218 | | | | — | |
| Foreign currency, at value | | | 2,252 | | | | — | | | | — | | | | 2 | | | | 456 | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 2,277 | | | | 272 | | | | 2,146 | | | | 9,836 | | | | 3,446 | |
| Shares of beneficial interest sold | | | — | | | | — | | | | — | | | | — | | | | 2 | |
| Interest | | | — | (B) | | | — | (B) | | | — | (B) | | | — | (B) | | | — | |
| Securities lending income (net) | | | 23 | | | | 4 | | | | 3 | | | | — | | | | 3 | |
| Dividends | | | 933 | | | | 486 | | | | 720 | | | | 54 | | | | 168 | |
| Dividend reclaims | | | 156 | | | | 35 | | | | 314 | | | | 3 | | | | — | |
| Prepaid expenses | | | 1 | | | | 1 | | | | 1 | | | | — | | | | 1 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 1,206 | | | | 173 | | | | 455 | |
| | | |
| | | $ | 373,255 | | | $ | 337,017 | | | $ | 464,927 | | | $ | 174,638 | | | $ | 355,439 | |
| | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Due to custodian | | | — | | | | — | | | | — | | | | — | | | | 325 | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | | | | | | | | | |
| Investment securities purchased | | | 502 | | | | — | | | | 36 | | | | 29,870 | | | | 2,183 | |
| Shares of beneficial interest redeemed | | | 644 | | | | 282 | | | | 526 | | | | 15 | | | | 106 | |
| Management and advisory fees | | | 297 | | | | 201 | | | | 376 | | | | 18 | | | | 413 | |
| Trustees fees | | | 1 | | | | 1 | | | | 2 | | | | — | (B) | | | 1 | |
| Transfer agent fees | | | 2 | | | | 2 | | | | 3 | | | | 1 | | | | 2 | |
| Custody fees | | | 61 | | | | 16 | | | | 63 | | | | 31 | | | | 97 | |
| Administration fees | | | 6 | | | | 5 | | | | 7 | | | | 1 | | | | 6 | |
| Audit and tax fees | | | 18 | | | | 18 | | | | 22 | | | | 19 | | | | 30 | |
| Dividends from securities sold short | | | — | | | | — | | | | — | | | | 1 | | | | — | |
| Capital gains tax | | | 5 | | | | — | | | | 4 | | | | — | | | | 90 | |
| Other | | | 8 | | | | 8 | | | | 11 | | | | 6 | | | | 10 | |
| Collateral for securities on loan | | | 41,353 | | | | 28,760 | | | | 15,439 | | | | — | | | | 12,515 | |
| Written options and swaptions, at value | | | — | | | | — | | | | — | | | | 261 | | | | — | |
| Securities sold short, at value | | | — | | | | — | | | | — | | | | 19,220 | | | | — | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | 987 | | | | — | |
| | | |
| | | | 42,897 | | | | 29,293 | | | | 16,489 | | | | 50,430 | | | | 15,778 | |
| | | |
Net assets | | $ | 330,358 | | | $ | 307,724 | | | $ | 448,438 | | | $ | 124,208 | | | $ | 339,661 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 275,554 | | | $ | 461,220 | | | $ | 356,693 | | | $ | 122,333 | | | $ | 347,465 | |
| Undistributed (accumulated) net investment income (loss) | | | 6,757 | | | | 118 | | | | 8,459 | | | | (80 | ) | | | 1,116 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | 37,545 | | | | (82,152 | ) | | | 59,238 | | | | 1,373 | | | | 15,864 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 10,524 | | | | (71,452 | ) | | | 22,847 | | | | 2,251 | | | | (24,278 | ) |
| Written option and swaption contracts | | | — | | | | — | | | | — | | | | (104 | ) | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (22 | ) | | | (10 | ) | | | 1,201 | | | | (774 | ) | | | (506 | ) |
| Securities sold short | | | — | | | | — | | | | — | | | | (791 | ) | | | — | |
| | | |
Net assets | | $ | 330,358 | | | $ | 307,724 | | | $ | 448,438 | | | $ | 124,208 | | | $ | 339,661 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Shares outstanding | | | 36,688 | | | | 14,839 | | | | 43,540 | | | | 12,112 | | | | 28,922 | |
Net asset value and offering price per share | | $ | 9.00 | | | $ | 20.74 | | | $ | 10.30 | | | $ | 10.25 | | | $ | 11.74 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | |
Investment securities, at cost | | $ | 355,920 | | | $ | 378,799 | | | $ | 436,953 | | | $ | 112,937 | | | $ | 376,042 | |
| | | |
Repurchase agreement, at cost | | $ | 1,169 | | | $ | 28,872 | | | $ | 737 | | | $ | 37,135 | | | $ | — | |
| | | |
Foreign currency, at cost | | $ | 2,270 | | | $ | — | | | $ | — | | | $ | 2 | | | $ | 456 | |
| | | |
Securities loaned, at value | | $ | 39,197 | | | $ | 28,017 | | | $ | 14,955 | | | $ | — | | | $ | 12,088 | |
| | | |
Premium received on written option & swaption contracts | | $ | — | | | $ | — | | | $ | — | | | $ | 157 | | | $ | — | |
| | | |
Proceeds received from securities sold short | | $ | — | | | $ | — | | | $ | — | | | $ | 18,429 | | | $ | — | |
| | | |
| | |
| (A) | | Formerly, Transamerica AllianceBernstein International Value. |
| |
| (B) | | Rounds to less than $1. |
| |
| (C) | | Formerly, Transamerica BNY Mellon Market Neutral Strategy. |
| | |
| | | |
| The notes to the financial statements are an integral part of this report. |
| | | |
| Transamerica Funds | Page 168 | Annual Report 2011 |
STATEMENTS OF OPERATIONS
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Transamerica | | | | | | | Transamerica | | | | |
| | | Transamerica | | | Clarion Global | | | Transamerica | | | Hansberger | | | Transamerica | |
| | | BlackRock Large | | | Real Estate | | | First Quadrant | | | International | | | ICAP Select | |
| | | Cap Value | | | Securities | | | Global Macro | | | Value(A) | | | Equity(B) | |
| | | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 11,782 | | | $ | 7,556 | | | $ | — | | | $ | 7,989 | | | $ | 1,702 | |
| Withholding taxes on foreign income | | | (1 | ) | | | (387 | ) | | | — | (C) | | | (660 | ) | | | — | |
| Interest income | | | 2 | | | | — | (C) | | | 49 | | | | 1 | | | | 1 | |
| Securities lending income (net) | | | 219 | | | | 181 | | | | — | | | | 207 | | | | — | |
| | | |
| | | | 12,002 | | | | 7,350 | | | | 49 | | | | 7,537 | | | | 1,703 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 5,005 | | | | 2,004 | | | | 1,836 | | | | 2,171 | | | | 768 | |
| Transfer agent | | | 48 | | | | 19 | | | | 10 | | | | 19 | | | | 8 | |
| Printing and shareholder reports | | | 7 | | | | 4 | | | | 3 | | | | 5 | | | | — | (C) |
| Custody | | | 79 | | | | 174 | | | | 163 | | | | 189 | | | | 11 | |
| Administration | | | 128 | | | | 50 | | | | 27 | | | | 50 | | | | 21 | |
| Legal | | | 23 | | | | 8 | | | | 13 | | | | 8 | | | | 12 | |
| Audit and tax | | | 17 | | | | 18 | | | | 24 | | | | 17 | | | | 13 | |
| Trustees | | | 12 | | | | 4 | | | | 3 | | | | 4 | | | | 2 | |
| Registration | | | — | (C) | | | 2 | | | | 1 | | | | — | | | | 13 | |
| Other | | | 11 | | | | 5 | | | | 2 | | | | 27 | | | | — | |
| | | |
| Total expenses | | | 5,330 | | | | 2,288 | | | | 2,082 | | | | 2,490 | | | | 848 | |
| | | |
| Net expenses | | | 5,330 | | | | 2,288 | | | | 2,082 | | | | 2,490 | | | | 848 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 6,672 | | | | 5,062 | | | | (2,033 | ) | | | 5,047 | | | | 855 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 26,527 | | | | 35,735 | | | | (411 | ) | | | (24,512 | ) | | | (3,807 | ) |
| Futures contracts | | | — | | | | — | | | | (4,702 | ) | | | — | | | | — | |
| Written option and swaption contracts | | | — | | | | — | | | | 2,590 | | | | — | | | | — | |
| Foreign currency transactions | | | — | | | | (518 | ) | | | (5,057 | ) | | | 468 | | | | — | |
| | | |
| Net realized gain (loss) | | | 26,527 | | | | 35,217 | | | | (7,580 | ) | | | (24,044 | ) | | | (3,807 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| | | |
| Investment securities | | | 7,725 | | | | (33,039 | ) | | | (305 | ) | | | (12,585 | ) | | | 27,068 | |
| | | |
| Futures contracts | | | — | | | | — | | | | 210 | | | | — | | | | — | |
| Written option and swaption contracts | | | — | | | | — | | | | (298 | ) | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | — | | | | (14 | ) | | | 2,350 | | | | (101 | ) | | | — | |
| | | |
Net change in unrealized appreciation (depreciation): | | | 7,725 | | | | (33,053 | ) | | | 1,957 | | | | (12,686 | ) | | | 27,068 | |
| | | |
Net realized and change in unrealized gain (loss) | | | 34,252 | | | | 2,164 | | | | (5,623 | ) | | | (36,730 | ) | | | 23,261 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | 40,924 | | | $ | 7,226 | | | $ | (7,656 | ) | | $ | (31,683 | ) | | $ | 24,116 | |
| | | |
| | | | |
| |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 169 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS (continued)
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica | | | Transamerica | | | | |
| | | | | | | Transamerica | | | JPMorgan | | | JPMorgan | | | Transamerica | |
| | | Transamerica | | | JPMorgan Core | | | International | | | Long/Short | | | JPMorgan Mid | |
| | | Jennison Growth | | | Bond | | | Bond | | | Strategy (D) | | | Cap Value | |
| | | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 6,301 | | | $ | — | | | $ | — | | | $ | 1,884 | | | $ | 3,290 | |
| Withholding taxes on foreign income | | | (50 | ) | | | (6 | ) | | | (89 | ) | | | (1 | ) | | | (5 | ) |
| Interest income | | | 1 | | | | 48,367 | | | | 10,093 | | | | 97 | | | | 1 | |
| Securities lending income (net) | | | 128 | | | | 161 | | | | 1 | | | | — | | | | 62 | |
| | | |
| | | | 6,380 | | | | 48,522 | | | | 10,005 | | | | 1,980 | | | | 3,348 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 5,887 | | | | 5,796 | | | | 1,926 | | | | 1,506 | | | | 1,433 | |
| Transfer agent | | | 58 | | | | 103 | | | | 28 | | | | 9 | | | | 13 | |
| Printing and shareholder reports | | | 8 | | | | 16 | | | | 5 | | | | 7 | | | | 3 | |
| Custody | | | 106 | | | | 288 | | | | 239 | | | | 56 | | | | 37 | |
| Administration | | | 156 | | | | 276 | | | | 73 | | | | 23 | | | | 35 | |
| Legal | | | 29 | | | | 67 | | | | 16 | | | | 4 | | | | 6 | |
| Audit and tax | | | 18 | | | | 19 | | | | 18 | | | | 17 | | | | 16 | |
| Trustees | | | 14 | | | | 28 | | | | 6 | | | | 2 | | | | 3 | |
| Registration | | | 2 | | | | 37 | | | | 1 | | | | 1 | | | | — | |
| Dividends on securities sold short | | | — | | | | — | | | | — | | | | 2,484 | | | | — | |
| Other | | | 25 | | | | 19 | | | | 6 | | | | 2 | | | | 3 | |
| | | |
| Total expenses | | | 6,303 | | | | 6,649 | | | | 2,318 | | | | 4,111 | | | | 1,549 | |
| | | |
| Net expenses | | | 6,303 | | | | 6,649 | | | | 2,318 | | | | 4,111 | | | | 1,549 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 77 | | | | 41,873 | | | | 7,687 | | | | (2,131 | ) | | | 1,799 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 52,712 | | | | 4,104 | | | | 25,601 | (E) | | | 1,478 | | | | 8,286 | |
| Futures contracts | | | — | | | | — | | | | (803 | ) | | | — | | | | — | |
| Foreign currency transactions | | | (66 | ) | | | — | | | | 7,296 | | | | — | | | | — | |
| Securities sold short | | | — | | | | — | | | | — | | | | (2,395 | ) | | | — | |
| | | |
| Net realized gain (loss) | | | 52,646 | | | | 4,104 | | | | 32,094 | | | | (917 | ) | | | 8,286 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 14,362 | | | | 21,961 | | | | (37,605 | ) | | | (14,862 | ) | | | 2,850 | |
| Futures contracts | | | — | | | | — | | | | (650 | ) | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (4 | ) | | | — | | | | (5,514 | ) | | | — | | | | — | |
| Securities sold short | | | — | | | | — | | | | — | | | | 11,303 | | | | — | |
| | | |
Net change in unrealized appreciation (depreciation): | | | 14,358 | | | | 21,961 | | | | (43,769 | ) | | | (3,559 | ) | | | 2,850 | |
| | | |
Net realized and change in unrealized gain (loss) | | | 67,004 | | | | 26,065 | | | | (11,675 | ) | | | (4,476 | ) | | | 11,136 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | 67,081 | | | $ | 67,938 | | | $ | (3,988 | ) | | $ | (6,607 | ) | | $ | 12,935 | |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 170 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS (continued)
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Transamerica | | | Transamerica | | | | | | | Transamerica | |
| | | Transamerica | | | MFS | | | Morgan Stanley | | | Transamerica | | | Morgan Stanley | |
| | | Loomis Sayles | | | International | | | Emerging | | | Morgan Stanley | | | Small Company | |
| | | Bond | | | Equity | | | Markets Debt | | | Mid-Cap Growth | | | Growth | |
| | | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 1,583 | | | $ | 14,692 | | | $ | — | | | $ | 2,668 | | | $ | 1,935 | |
| Withholding taxes on foreign income | | | (69 | ) | | | (1,301 | ) | | | 4 | | | | (91 | ) | | | (6 | ) |
| Interest income | | | 30,011 | | | | 1 | | | | 18,718 | | | | 1 | | | | 1 | |
| Securities lending income (net) | | | 118 | | | | 444 | | | | 72 | | | | 841 | | | | 708 | |
| | | |
| | | | 31,643 | | | | 13,836 | | | | 18,794 | | | | 3,419 | | | | 2,638 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 3,580 | | | | 4,571 | | | | 2,808 | | | | 2,531 | | | | 1,915 | |
| Transfer agent | | | 42 | | | | 39 | | | | 23 | | | | 24 | | | | 15 | |
| Printing and shareholder reports | | | 6 | | | | 6 | | | | 5 | | | | 4 | | | | 3 | |
| Custody | | | 137 | | | | 333 | | | | 86 | | | | 93 | | | | 56 | |
| Administration | | | 111 | | | | 103 | | | | 60 | | | | 63 | | | | 40 | |
| Legal | | | 20 | | | | 18 | | | | 11 | | | | 12 | | | | 8 | |
| Audit and tax | | | 18 | | | | 16 | | | | 17 | | | | 16 | | | | 15 | |
| Trustees | | | 10 | | | | 9 | | | | 6 | | | | 6 | | | | 4 | |
| Registration | | | — | | | | 2 | | | | — | (C) | | | | | | | — | (C) |
| Other | | | 9 | | | | 9 | | | | 5 | | | | 8 | | | | 3 | |
| | | |
| Total expenses | | | 3,933 | | | | 5,106 | | | | 3,021 | | | | 2,757 | | | | 2,059 | |
| | | |
| Net expenses | | | 3,933 | | | | 5,106 | | | | 3,021 | | | | 2,757 | | | | 2,059 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 27,710 | | | | 8,730 | | | | 15,773 | | | | 662 | | | | 579 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 32,000 | | | | 47,328 | | | | 4,712 | | | | 39,950 | | | | 12,904 | |
| Futures contracts | | | — | | | | — | | | | (2,045 | ) | | | — | | | | — | |
| Foreign currency transactions | | | 188 | | | | (419 | ) | | | (41 | ) | | | (31 | ) | | | 6 | |
| | | |
| Net realized gain (loss) | | | 32,188 | | | | 46,909 | | | | 2,626 | | | | 39,919 | | | | 12,910 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | (39,789 | ) | | | (66,845 | ) | | | (10,301 | ) | | | (22,189 | ) | | | (3,037 | ) |
| Futures contracts | | | — | | | | — | | | | 37 | | | | — | | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (103 | ) | | | (102 | ) | | | 10 | | | | (2 | ) | | | (2 | ) |
| | | (2) |
Net change in unrealized appreciation (depreciation): | | | (39,892 | ) | | | (66,947 | ) | | | (10,254 | ) | | | (22,191 | ) | | | (3,039 | ) |
| | | |
Net realized and change in unrealized gain (loss) | | | (7,704 | ) | | | (20,038 | ) | | | (7,628 | ) | | | 17,728 | | | | 9,871 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | 20,006 | | | $ | (11,308 | ) | | $ | 8,145 | | | $ | 18,390 | | | $ | 10,450 | |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. | |
| |
| Transamerica Funds | | Page 171 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS (continued)
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | Transamerica | | | Transamerica | | | | | | | |
| | | Neuberger | | | Oppenheimer | | | Oppenheimer | | | Transamerica | | | Transamerica | |
| | | Berman | | | Developing | | | Small- & Mid-Cap | | | PIMCO Real | | | PIMCO Total | |
| | | International | | | Markets | | | Value | | | Return TIPS | | | Return | |
| | | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 15,164 | | | $ | 12,205 | | | $ | 4,294 | | | $ | 30 | | | $ | 215 | |
| Withholding taxes on foreign income | | | (1,348 | ) | | | (1,025 | ) | | | (3 | ) | | | (2 | ) | | | (1 | ) |
| Interest income | | | 1 | | | | 3 | | | | 3 | | | | 34,153 | | | | 22,154 | |
| Securities lending income (net) | | | 509 | | | | 113 | | | | 131 | | | | 62 | | | | 62 | |
| | | |
| | | | 14,326 | | | | 11,296 | | | | 4,425 | | | | 34,243 | | | | 22,430 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 5,313 | | | | 6,655 | | | | 2,852 | | | | 5,533 | | | | 4,046 | |
| Transfer agent | | | 42 | | | | 45 | | | | 24 | | | | 63 | | | | 46 | |
| Printing and shareholder reports | | | 6 | | | | 7 | | | | 4 | | | | 9 | | | | 7 | |
| Custody | | | 391 | | | | 861 | | | | 61 | | | | 266 | | | | 236 | |
| Administration | | | 111 | | | | 120 | | | | 63 | | | | 168 | | | | 122 | |
| Legal | | | 18 | | | | 22 | | | | 11 | | | | 47 | | | | 37 | |
| Audit and tax | | | 25 | | | | 54 | | | | 10 | | | | 24 | | | | 23 | |
| Trustees | | | 9 | | | | 11 | | | | 6 | | | | 15 | | | | 11 | |
| Registration | | | — (c) | | | | — | | | | — | | | | 5 | | | | 3 | |
| Interest on securities sold short | | | — | | | | — | | | | — | | | | — | | | | 1 | |
| Other | | | 13 | | | | 42 | | | | 5 | | | | 24 | | | | 10 | |
| | | |
| Total expenses | | | 5,928 | | | | 7,817 | | | | 3,036 | | | | 6,154 | | | | 4,542 | |
| | | |
| Net expenses | | | 5,928 | | | | 7,817 | | | | 3,036 | | | | 6,154 | | | | 4,542 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 8,398 | | | | 3,479 | | | | 1,389 | | | | 28,089 | | | | 17,888 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 48,650 | | | | 69,937 | (F) | | | 35,247 | | | | 50,190 | | | | 2,048 | |
| Futures contracts | | | — | | | | — | | | | — | | | | 2,793 | | | | 4,050 | |
| Written option and swaption contracts | | | — | | | | — | | | | — | | | | 1,206 | | | | 1,633 | |
| Swap agreements | | | — | | | | — | | | | — | | | | (5,622 | ) | | | (1,527 | ) |
| Foreign currency transactions | | | (1,501 | ) | | | (402 | ) | | | — | | | | 6,197 | | | | 1,502 | |
| Securities sold short | | | — | | | | — | | | | — | | | | — | | | | (1,861 | ) |
| | | |
| Net realized gain (loss) | | | 47,149 | | | | 69,535 | | | | 35,247 | | | | 54,764 | | | | 5,845 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | (64,719 | ) | | | (119,404 | ) (G) | | | (30,809 | ) | | | (25,895 | ) | | | (10,566 | ) |
| Futures contracts | | | — | | | | — | | | | — | | | | 1,181 | | | | 97 | |
| Written option and swaption contracts | | | — | | | | — | | | | — | | | | 583 | | | | 943 | |
| Swap agreements | | | — | | | | — | | | | — | | | | (1,293 | ) | | | 1,718 | |
| Translation of assets and liabilities denominated in foreign currencies | | | (19 | ) | | | 320 | | | | — | | | | (5,528 | ) | | | (3,105 | ) |
| Securities sold short | | | — | | | | — | | | | — | | | | — | | | | 69 | |
| | | |
Net change in unrealized appreciation (depreciation): | | | (64,738 | ) | | | (119,084 | ) | | | (30,809 | ) | | | (30,952 | ) | | | (10,844 | ) |
| | | |
Net realized and change in unrealized gain (loss) | | | (17,589 | ) | | | (49,549 | ) | | | 4,438 | | | | 23,812 | | | | (4,999 | ) |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | (9,191 | ) | | $ | (46,070 | ) | | $ | 5,827 | | | $ | 51,901 | | | $ | 12,889 | |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 172 | | Annual Report 2011 |
STATEMENTS OF OPERATIONS (continued)
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica | | | | | | | Transamerica | | | Transamerica | | | | |
| | | Schroders | | | Transamerica | | | Thornburg | | | Water Island | | | Transamerica | |
| | | International | | | Third Avenue | | | International | | | Arbitrage | | | WMC Emerging | |
| | | Small Cap | | | Value | | | Value | | | Strategy(H) | | | Markets | |
| | | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
| Dividend income | | $ | 14,050 | | | $ | 7,715 | | | $ | 18,809 | | | $ | 304 | | | $ | 8,924 | |
| Withholding taxes on foreign income | | | (870 | ) | | | (446 | ) | | | (1,649 | ) | | | (14 | ) | | | (751 | ) |
| Interest income | | | 1 | | | | 5 | | | | — | (C) | | | 2 | | | | 3 | |
| Securities lending income (net) | | | 713 | | | | 290 | | | | 581 | | | | — | | | | 42 | |
| | | |
| | | | 13,894 | | | | 7,564 | | | | 17,741 | | | | 292 | | | | 8,218 | |
| | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
| Management and advisory | | | 5,533 | | | | 3,122 | | | | 7,017 | | | | 388 | | | | 4,723 | |
| Transfer agent | | | 40 | | | | 29 | | | | 53 | | | | 3 | | | | 31 | |
| Printing and shareholder reports | | | 6 | | | | 5 | | | | 7 | | | | 22 | | | | 7 | |
| Custody | | | 391 | | | | 107 | | | | 427 | | | | 88 | | | | 678 | |
| Administration | | | 106 | | | | 78 | | | | 143 | | | | 7 | | | | 83 | |
| Legal | | | 18 | | | | 14 | | | | 24 | | | | 2 | | | | 15 | |
| Audit and tax | | | 14 | | | | 17 | | | | 22 | | | | 19 | | | | 59 | |
| Trustees | | | 9 | | | | 7 | | | | 12 | | | | 1 | | | | 8 | |
| Registration | | | — | | | | — | | | | 2 | | | | 2 | | | | 16 | |
| Dividends on securities sold short | | | — | | | | — | | | | — | | | | 114 | | | | — | |
| Other | | | 14 | | | | 8 | | | | 12 | | | | 1 | | | | 47 | |
| | | |
| Total expenses | | | 6,131 | | | | 3,387 | | | | 7,719 | | | | 647 | | | | 5,667 | |
| | | |
| Expenses recaptured (reimbursed) | | | — | | | | — | | | | — | | | | (61 | ) | | | 99 | |
| | | |
| Net expenses | | | 6,131 | | | | 3,387 | | | | 7,719 | | | | 586 | | | | 5,766 | |
| | | |
Net investment income (loss) | | | 7,763 | | | | 4,177 | | | | 10,022 | | | | (294 | ) | | | 2,452 | |
| | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | 38,501 | | | | 15,776 | | | | 62,631 | (I) | | | (1,387 | ) | | | 17,072 | (J) |
| Written option and swaption contracts | | | — | | | | — | | | | — | | | | 773 | | | | — | |
| Swap agreements | | | — | | | | — | | | | — | | | | 400 | | | | — | |
| Foreign currency transactions | | | (131 | ) | | | (132 | ) | | | (7,287 | ) | | | 283 | | | | (982 | ) |
| Securities sold short | | | — | | | | — | | | | — | | | | 1,518 | | | | — | |
| | | |
| Net realized gain (loss) | | | 38,370 | | | | 15,644 | | | | 55,344 | | | | 1,587 | | | | 16,090 | |
| | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | (64,697 | )(K) | | | (26,122 | ) | | | (108,464 | )(L) | | | 2,251 | | | | (77,545 | )(M) |
| Written option and swaption contracts | | | — | | | | — | | | | — | | | | (104 | ) | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (169 | ) | | | (26 | ) | | | 5,463 | | | | (774 | ) | | | 556 | |
| Securities sold short | | | — | | | | — | | | | — | | | | (791 | ) | | | — | |
| | | |
Net change in unrealized appreciation (depreciation): | | | (64,866 | ) | | | (26,148 | ) | | | (103,001 | ) | | | 582 | | | | (76,989 | ) |
| | | |
Net realized and change in unrealized gain (loss) | | | (26,496 | ) | | | (10,504 | ) | | | (47,657 | ) | | | 2,169 | | | | (60,899 | ) |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | (18,733 | ) | | $ | (6,327 | ) | | $ | (37,635 | ) | | $ | 1,875 | | | $ | (58,447 | ) |
| | | |
| | |
| (A) | | Formerly, Transamerica AllianceBernstein International Value. |
| |
| (B) | | Commenced operations on August 31, 2011 |
| |
| (C) | | Rounds to less than $1. |
| |
| (D) | | Formerly, Transamerica BNY Mellon Market Neutral Strategy. |
| |
| (E) | | Net of foreign capital gains tax of $80. |
| |
| (F) | | Net of foreign capital gains tax of $28. |
| |
| (G) | | Net of foreign capital gains tax of $95. |
| |
| (H) | | Commenced operations on May 1, 2011 |
| |
| (I) | | Net of foreign capital gains tax of $86. |
| |
| (J) | | Net of foreign capital gains tax of $66. |
| |
| (K) | | Net of foreign capital gains tax of $5. |
| |
| (L) | | Net of foreign capital gains tax of $4. |
| |
| (M) | | Net of foreign capital gains tax of $90. |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| |
| Transamerica Funds | | Page 173 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS
For the periods or years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica
BlackRock Large | | | Transamerica Clarion
Global Real | | | Transamerica
First Quadrant | |
| | | Cap Value | | | Estate Securities | | | Global Macro | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 6,672 | | | $ | 8,353 | | | $ | 5,062 | | | $ | 7,143 | | | $ | (2,033 | ) | | $ | (1,824 | ) |
Net realized gain (loss)(A) | | | 26,527 | | | | 15,844 | | | | 35,217 | | | | (6,789 | ) | | | (7,580 | ) | | | 1,970 | |
Net change in unrealized appreciation (depreciation)(B) | | | 7,725 | | | | 28,892 | | | | (33,053 | ) | | | 60,784 | | | | 1,957 | | | | 537 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | 40,924 | | | | 53,089 | | | | 7,226 | | | | 61,138 | | | | (7,656 | ) | | | 683 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (8,350 | ) | | | (8,593 | ) | | | (16,534 | ) | | | (19,485 | ) | | | — | | | | — | |
| | | |
Total distributions to shareholders | | | (8,350 | ) | | | (8,593 | ) | | | (16,534 | ) | | | (19,485 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 77,937 | | | | 43,019 | | | | 10,642 | | | | 16,904 | | | | 45,323 | | | | 18,983 | |
| Dividends and distributions reinvested | | | 8,350 | | | | 8,593 | | | | 16,534 | | | | 19,485 | | | | — | | | | — | |
| Cost of shares redeemed | | | (277,017 | ) | | | (27,578 | ) | | | (190,179 | ) | | | (44,176 | ) | | | (26,258 | ) | | | (541 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (190,730 | ) | | | 24,034 | | | | (163,003 | ) | | | (7,787 | ) | | | 19,065 | | | | 18,442 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | (158,156 | ) | | | 68,530 | | | | (172,311 | ) | | | 33,866 | | | | 11,409 | | | | 19,125 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 702,205 | | | | 633,675 | | | | 319,368 | | | | 285,502 | | | | 126,142 | | | | 107,017 | |
| | | |
| End of year | | $ | 544,049 | | | $ | 702,205 | | | $ | 147,057 | | | $ | 319,368 | | | $ | 137,551 | | | $ | 126,142 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 4,743 | | | $ | 6,421 | | | $ | (4,861 | ) | | $ | (5,052 | ) | | $ | — | | | $ | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 8,266 | | | | 5,351 | | | | 869 | | | | 1,574 | | | | 7,581 | | | | 3,090 | |
| Shares issued-reinvested from distributions | | | 976 | | | | 1,047 | | | | 1,435 | | | | 1,785 | | | | — | | | | — | |
| Shares redeemed | | | (32,162 | ) | | | (3,380 | ) | | | (15,685 | ) | | | (3,865 | ) | | | (4,535 | ) | | | (89 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | (22,920 | ) | | | 3,018 | | | | (13,381 | ) | | | (506 | ) | | | 3,046 | | | | 3,001 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica | | | | |
| | | | | | | | | | | ICAP Select | | | | |
| | | Transamerica Hansberger | | | Equity | | | | |
| | | International Value(C) | | | October 31, | | | Transamerica Jennison Growth | |
| | | October 31, 2011 | | | October 31, 2010 | | | 2011(D) | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 5,047 | | | $ | 6,067 | | | $ | 855 | | | $ | 77 | | | $ | 707 | |
Net realized gain (loss)(A) | | | (24,044 | ) | | | (19,459 | ) | | | (3,807 | ) | | | 52,646 | | | | 17,661 | |
Net change in unrealized appreciation (depreciation)(B) | | | (12,686 | ) | | | 20,774 | | | | 27,068 | | | | 14,358 | | | | 84,113 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | (31,683 | ) | | | 7,382 | | | | 24,116 | | | | 67,081 | | | | 102,481 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (7,480 | ) | | | (6,770 | ) | | | (54 | ) | | | (800 | ) | | | (765 | ) |
| | | |
Total distributions to shareholders | | | (7,480 | ) | | | (6,770 | ) | | | (54 | ) | | | (800 | ) | | | (765 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 4,415 | | | | 56,394 | | | | 914,980 | | | | 10,349 | | | | 79,136 | |
| Dividends and distributions reinvested | | | 7,480 | | | | 6,770 | | | | 54 | | | | 800 | | | | 765 | |
| Cost of shares redeemed | | | (114,883 | ) | | | (81,093 | ) | | | (2,817 | ) | | | (185,395 | ) | | | (109,495 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (102,988 | ) | | | (17,929 | ) | | | 912,217 | | | | (174,246 | ) | | | (29,594 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | (142,151 | ) | | | (17,317 | ) | | | 936,279 | | | | (107,965 | ) | | | 72,122 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 298,751 | | | | 316,068 | | | | — | | | | 726,732 | | | | 654,610 | |
| | | |
| End of year | | $ | 156,600 | | | $ | 298,751 | | | $ | 936,279 | | | $ | 618,767 | | | $ | 726,732 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 4,751 | | | $ | 5,051 | | | $ | 801 | | | $ | — | | | $ | 210 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 551 | | | | 7,432 | | | | 91,871 | | | | 812 | | | | 7,228 | |
| Shares issued-reinvested from distributions | | | 947 | | | | 856 | | | | 5 | | | | 65 | | | | 70 | |
| Shares redeemed | | | (15,769 | ) | | | (11,801 | ) | | | (277 | ) | | | (14,750 | ) | | | (9,973 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | (14,271 | ) | | | (3,513 | ) | | | 91,599 | | | | (13,873 | ) | | | (2,675 | ) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 174 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the periods or years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica
JPMorgan Core | | | Transamerica
JPMorgan | | | Transamerica
JPMorgan | |
| | | Bond | | | International Bond | | | Long/Short Strategy(E) | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income(loss) | | $ | 41,873 | | | $ | 20,804 | | | $ | 7,687 | | | $ | 12,874 | | | $ | (2,131 | ) | | $ | (1,593 | ) |
Net realized gain (loss)(A) | | | 4,104 | | | | 10,933 | | | | 32,094 | | | | 22,804 | | | | (917 | ) | | | 1,377 | |
Net change in unrealized appreciation (depreciation)(B) | | | 21,961 | | | | 37,162 | | | | (43,769 | ) | | | (17,858 | ) | | | (3,559 | ) | | | (1,047 | ) |
| | | |
Net increase (decrease) in net assets resulting from operations | | | 67,938 | | | | 68,899 | | | | (3,988 | ) | | | 17,820 | | | | (6,607 | ) | | | (1,263 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (45,454 | ) | | | (23,223 | ) | | | (32,153 | ) | | | (22,408 | ) | | | — | | | | — | |
| From net realized gains | | | (6,906 | ) | | | — | | | | (3,267 | ) | | | (7,372 | ) | | | — | | | | — | |
| | | |
Total distributions to shareholders | | | (52,360 | ) | | | (23,223 | ) | | | (35,420 | ) | | | (29,780 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 1,164,942 | | | | 950,776 | | | | 282,605 | | | | 194,597 | | | | 38,093 | | | | 28,414 | |
| Dividends and distributions reinvested | | | 52,360 | | | | 23,223 | | | | 35,420 | | | | 29,747 | | | | — | | | | — | |
| Cost of shares redeemed | | | (87,555 | ) | | | (172,035 | ) | | | (250,466 | ) | | | (498,207 | ) | | | (26,720 | ) | | | (5,491 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | 1,129,747 | | | | 801,966 | | | | 67,559 | | | | (273,863 | ) | | | 11,373 | | | | 22,923 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 1,145,325 | | | | 847,642 | | | | 28,151 | | | | (285,823 | ) | | | 4,766 | | | | 21,660 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 1,063,458 | | | | 215,816 | | | | 447,141 | | | | 732,964 | | | | 108,342 | | | | 86,682 | |
| | | |
| End of year | | $ | 2,208,783 | | | $ | 1,063,458 | | | $ | 475,292 | | | $ | 447,141 | | | $ | 113,108 | | | $ | 108,342 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 3,706 | | | $ | 1,909 | | | $ | 23,705 | | | $ | 18,305 | | | $ | — | | | $ | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 111,128 | | | | 93,570 | | | | 24,524 | | | | 17,820 | | | | 4,746 | | | | 3,404 | |
| Shares issued-reinvested from distributions | | | 5,058 | | | | 2,258 | | | | 3,358 | | | | 2,640 | | | | — | | | | — | |
| Shares redeemed | | | (8,438 | ) | | | (16,532 | ) | | | (22,601 | ) | | | (46,433 | ) | | | (3,374 | ) | | | (658 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | 107,748 | | | | 79,296 | | | | 5,281 | | | | (25,973 | ) | | | 1,372 | | | | 2,746 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica
JPMorgan Mid Cap | | | | | | | | | | | Transamerica
MFS International | |
| | | Value | | | Transamerica Loomis Sayles Bond | | | Equity | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 1,799 | | | $ | 2,289 | | | $ | 27,710 | | | $ | 34,110 | | | $ | 8,730 | | | $ | 6,387 | |
Net realized gain (loss)(A) | | | 8,286 | | | | 892 | | | | 32,188 | | | | 32,595 | | | | 46,909 | | | | 27,640 | |
Net change in unrealized appreciation (depreciation)(B) | | | 2,850 | | | | 34,397 | | | | (39,892 | ) | | | 42,590 | | | | (66,947 | ) | | | 24,763 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | 12,935 | | | | 37,578 | | | | 20,006 | | | | 109,295 | | | | (11,308 | ) | | | 58,790 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (2,200 | ) | | | (3,125 | ) | | | (34,541 | ) | | | (36,806 | ) | | | (5,767 | ) | | | (3,209 | ) |
| From net realized gains | | | — | | | | — | | | | (10,465 | ) | | | — | | | | (27,053 | ) | | | (10,017 | ) |
| | | |
Total distributions to shareholders | | | (2,200 | ) | | | (3,125 | ) | | | (45,006 | ) | | | (36,806 | ) | | | (32,820 | ) | | | (13,226 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | — | | | | — | | | | 67,202 | | | | 44,402 | | | | 26,144 | | | | 163,943 | |
| Dividends and distributions reinvested | | | 2,200 | | | | 3,125 | | | | 45,006 | | | | 36,806 | | | | 32,820 | | | | 13,226 | |
| Cost of shares redeemed | | | (18,203 | ) | | | (39,804 | ) | | | (219,088 | ) | | | (371,729 | ) | | | (197,323 | ) | | | (83,306 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (16,003 | ) | | | (36,679 | ) | | | (106,880 | ) | | | (290,521 | ) | | | (138,359 | ) | | | 93,863 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | (5,268 | ) | | | (2,226 | ) | | | (131,880 | ) | | | (218,032 | ) | | | (182,487 | ) | | | 139,427 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 163,612 | | | | 165,838 | | | | 594,220 | | | | 812,252 | | | | 536,181 | | | | 396,754 | |
| | | |
| End of year | | $ | 158,344 | | | $ | 163,612 | | | $ | 462,340 | | | $ | 594,220 | | | $ | 353,694 | | | $ | 536,181 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 1,131 | | | $ | 1,532 | | | $ | 8,071 | | | $ | 8,326 | | | $ | 8,051 | | | $ | 5,579 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | — | | | | — | | | | 6,127 | | | | 4,240 | | | | 2,854 | | | | 19,478 | |
| Shares issued-reinvested from distributions | | | 207 | | | | 356 | | | | 4,246 | | | | 3,604 | | | | 3,785 | | | | 1,572 | |
| Shares redeemed | | | (1,800 | ) | | | (4,293 | ) | | | (20,146 | ) | | | (36,244 | ) | | | (23,102 | ) | | | (10,835 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | (1,593 | ) | | | (3,937 | ) | | | (9,773 | ) | | | (28,400 | ) | | | (16,463 | ) | | | 10,215 | |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 175 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the periods or years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Tansamerica Morgan
Stanley Emerging | | | Transamerica Morgan
Stanley Mid- | | | Transamerica Morgan
Stanley | |
| | | Markets Debt | | | Cap Growth | | | Small Company Growth | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 15,773 | | | $ | 20,029 | | | $ | 662 | | | $ | 1,044 | | | $ | 579 | | | $ | (34 | ) |
Net realized gain (loss)(A) | | | 2,626 | | | | 29,113 | | | | 39,919 | | | | 23,160 | | | | 12,910 | | | | 1,220 | |
Net change in unrealized appreciation (depreciation)(B) | | | (10,254 | ) | | | 4,409 | | | | (22,191 | ) | | | 61,597 | | | | (3,039 | ) | | | 32,190 | |
| | | |
Net increase in net assets resulting from operations | | | 8,145 | | | | 53,551 | | | | 18,390 | | | | 85,801 | | | | 10,450 | | | | 33,376 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (14,256 | ) | | | (20,346 | ) | | | (1,092 | ) | | | (439 | ) | | | (600 | ) | | | — | |
| From net realized gains | | | (6,903 | ) | | | — | | | | (17,544 | ) | | | — | | | | — | | | | — | |
| | | |
Total distributions to shareholders | | | (21,159 | ) | | | (20,346 | ) | | | (18,636 | ) | | | (439 | ) | | | (600 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 75,137 | | | | 1,861 | | | | 4,810 | | | | 21,508 | | | | 5,026 | | | | 20,122 | |
| Dividends and distributions reinvested | | | 21,159 | | | | 20,346 | | | | 18,636 | | | | 439 | | | | 600 | | | | — | |
| Cost of shares redeemed | | | (75,481 | ) | | | (135,454 | ) | | | (47,115 | ) | | | (70,946 | ) | | | (18,519 | ) | | | (1,927 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | 20,815 | | | | (113,247 | ) | | | (23,669 | ) | | | (48,999 | ) | | | (12,893 | ) | | | 18,195 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 7,801 | | | | (80,042 | ) | | | (23,915 | ) | | | 36,363 | | | | (3,043 | ) | | | 51,571 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 302,576 | | | | 382,618 | | | | 292,575 | | | | 256,212 | | | | 181,460 | | | | 129,889 | |
| | | |
| End of year | | $ | 310,377 | | | $ | 302,576 | | | $ | 268,660 | | | $ | 292,575 | | | $ | 178,417 | | | $ | 181,460 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 396 | | | $ | 693 | | | $ | — | | | $ | 559 | | | $ | 832 | | | $ | 390 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 7,043 | | | | 173 | | | | 354 | | | | 2,023 | | | | 411 | | | | 2,049 | |
| Shares issued-reinvested from distributions | | | 2,017 | | | | 1,926 | | | | 1,438 | | | | 43 | | | | 50 | | | | — | |
| Shares redeemed | | | (6,989 | ) | | | (12,699 | ) | | | (3,628 | ) | | | (6,434 | ) | | | (1,568 | ) | | | (194 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | 2,071 | | | | (10,600 | ) | | | (1,836 | ) | | | (4,368 | ) | | | (1,107 | ) | | | 1,855 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica
Neuberger Berman | | | Transamerica
Oppenheimer | | | Transamerica
Oppenheimer Small- | |
| | | International | | | Developing Markets | | | & Mid-Cap Value | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 8,398 | | | $ | 6,152 | | | $ | 3,479 | | | $ | 2,493 | | | $ | 1,389 | | | $ | 562 | |
Net realized gain (loss)(A) | | | 47,149 | | | | 200 | | | | 69,535 | | | | 50,403 | | | | 35,247 | | | | 40,955 | |
Net change in unrealized appreciation (depreciation)(B) | | | (64,738 | ) | | | 83,085 | | | | (119,084 | ) | | | 86,634 | | | | (30,809 | ) | | | 13,072 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | (9,191 | ) | | | 89,437 | | | | (46,070 | ) | | | 139,530 | | | | 5,827 | | | | 54,589 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (7,056 | ) | | | (4,520 | ) | | | (1,725 | ) | | | (2,488 | ) | | | (425 | ) | | | (1,363 | ) |
| | | |
Total distributions to shareholders | | | (7,056 | ) | | | (4,520 | ) | | | (1,725 | ) | | | (2,488 | ) | | | (425 | ) | | | (1,363 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 14,663 | | | | 64,435 | | | | 33,700 | | | | 126,210 | | | | 5,146 | | | | 9,163 | |
| Dividends and distributions reinvested | | | 7,056 | | | | 4,520 | | | | 1,725 | | | | 2,488 | | | | 425 | | | | 1,363 | |
| Cost of shares redeemed | | | (230,675 | ) | | | (54,826 | ) | | | (100,186 | ) | | | (151,164 | ) | | | (51,662 | ) | | | (33,808 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (208,956 | ) | | | 14,129 | | | | (64,761 | ) | | | (22,466 | ) | | | (46,091 | ) | | | (23,282 | ) |
| | | |
Net increase (decrease) in net assets | | | (225,203 | ) | | | 99,046 | | | | (112,556 | ) | | | 114,576 | | | | (40,689 | ) | | | 29,944 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 584,849 | | | | 485,803 | | | | 610,212 | | | | 495,636 | | | | 299,225 | | | | 269,281 | |
| | | |
| End of year | | $ | 359,646 | | | $ | 584,849 | | | $ | 497,656 | | | $ | 610,212 | | | $ | 258,536 | | | $ | 299,225 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 5,236 | | | $ | 5,160 | | | $ | 2,677 | | | $ | 1,724 | | | $ | 956 | | | $ | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,582 | | | | 7,825 | | | | 2,510 | | | | 10,552 | | | | 504 | | | | 1,018 | |
| Shares issued-reinvested from distributions | | | 778 | | | | 575 | | | | 128 | | | | 226 | | | | 43 | | | | 165 | |
| Shares redeemed | | | (25,494 | ) | | | (7,177 | ) | | | (7,853 | ) | | | (13,996 | ) | | | (5,533 | ) | | | (3,976 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | (23,134 | ) | | | 1,223 | | | | (5,215 | ) | | | (3,218 | ) | | | (4,986 | ) | | | (2,793 | ) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 176 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the periods or years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica PIMCO
Real Return | | | | | | | | | | | Transamerica
Schroders | |
| | | TIPS | | | Transamerica PIMCO Total Return | | | International Small Cap | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 28,089 | | | $ | 20,141 | | | $ | 17,888 | | | $ | 19,415 | | | $ | 7,763 | | | $ | 5,231 | |
Net realized gain (loss)(A) | | | 54,764 | | | | 57,595 | | | | 5,845 | | | | 22,287 | | | | 38,370 | | | | 23,916 | |
Net change in unrealized appreciation (depreciation)(B) | | | (30,952 | ) | | | 25,861 | | | | (10,844 | ) | | | 17,035 | | | | (64,866 | ) | | | 50,583 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | 51,901 | | | | 103,597 | | | | 12,889 | | | | 58,737 | | | | (18,733 | ) | | | 79,730 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (28,799 | ) | | | (30,698 | ) | | | (17,746 | ) | | | (18,210 | ) | | | (6,178 | ) | | | (3,075 | ) |
| From net realized gains | | | (30,631 | ) | | | — | | | | (19,234 | ) | | | (34,549 | ) | | | (3,119 | ) | | | — | |
| | | |
Total distributions to shareholders | | | (59,430 | ) | | | (30,698 | ) | | | (36,980 | ) | | | (52,759 | ) | | | (9,297 | ) | | | (3,075 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 213,951 | | | | 237,676 | | | | 55,205 | | | | 117,089 | | | | 19,996 | | | | 28,564 | |
| Dividends and distributions reinvested | | | 59,430 | | | | 30,698 | | | | 36,980 | | | | 52,759 | | | | 9,297 | | | | 3,075 | |
| Cost of shares redeemed | | | (140,183 | ) | | | (248,031 | ) | | | (110,080 | ) | | | (13,434 | ) | | | (219,193 | ) | | | (103,679 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | 133,198 | | | | 20,343 | | | | (17,895 | ) | | | 156,414 | | | | (189,900 | ) | | | (72,040 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 125,669 | | | | 93,242 | | | | (41,986 | ) | | | 162,392 | | | | (217,930 | ) | | | 4,615 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 845,965 | | | | 752,723 | | | | 667,721 | | | | 505,329 | | | | 548,288 | | | | 543,673 | |
| | | |
| End of year | | $ | 971,634 | | | $ | 845,965 | | | $ | 625,735 | | | $ | 667,721 | | | $ | 330,358 | | | $ | 548,288 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 5,592 | | | $ | 1,524 | | | $ | 3,557 | | | $ | (1,378 | ) | | $ | 6,757 | | | $ | 5,112 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 19,339 | | | | 21,982 | | | | 5,272 | | | | 11,287 | | | | 1,991 | | | | 3,305 | |
| Shares issued-reinvested from distributions | | | 5,557 | | | | 2,849 | | | | 3,654 | | | | 5,207 | | | | 944 | | | | 368 | |
| Shares redeemed | | | (12,897 | ) | | | (22,176 | ) | | | (10,679 | ) | | | (1,250 | ) | | | (22,976 | ) | | | (13,096 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | 11,999 | | | | 2,655 | | | | (1,753 | ) | | | 15,244 | | | | (20,041 | ) | | | (9,423 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Transamerica | |
| | | | | | | | | | | | | | | | | | | Water Island | |
| | | | | | | | | | | Transamerica Thornburg | | | Arbitrage | |
| | | Transamerica Third Avenue Value | | | International Value | | | Strategy | |
| | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011(F) | |
| | | |
From operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 4,177 | | | $ | 4,124 | | | $ | 10,022 | | | $ | 6,037 | | | $ | (294 | ) |
Net realized gain (loss)(A) | | | 15,644 | | | | 11,573 | | | | 55,344 | | | | 8,456 | | | | 1,587 | |
Net change in unrealized appreciation (depreciation)(B) | | | (26,148 | ) | | | 51,199 | | | | (103,001 | ) | | | 81,093 | | | | 582 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | (6,327 | ) | | | 66,896 | | | | (37,635 | ) | | | 95,586 | | | | 1,875 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (7,774 | ) | | | (6,092 | ) | | | (4,250 | ) | | | (3,505 | ) | | | — | |
| From net realized gains | | | — | | | | — | | | | (4,928 | ) | | | (1,787 | ) | | | — | |
| | | |
Total distributions to shareholders | | | (7,774 | ) | | | (6,092 | ) | | | (9,178 | ) | | | (5,292 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 5,202 | | | | 7,367 | | | | 32,625 | | | | 168,436 | | | | 123,667 | |
| Dividends and distributions reinvested | | | 7,774 | | | | 6,092 | | | | 9,178 | | | | 5,292 | | | | — | |
| Cost of shares redeemed | | | (74,285 | ) | | | (114,679 | ) | | | (325,036 | ) | | | (77,077 | ) | | | (1,334 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | (61,309 | ) | | | (101,220 | ) | | | (283,233 | ) | | | 96,651 | | | | 122,333 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | (75,410 | ) | | | (40,416 | ) | | | (330,046 | ) | | | 186,945 | | | | 124,208 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 383,134 | | | | 423,550 | | | | 778,484 | | | | 591,539 | | | | — | |
| | | |
| End of year | | $ | 307,724 | | | $ | 383,134 | | | $ | 448,438 | | | $ | 778,484 | | | $ | 124,208 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 118 | | | $ | 3,207 | | | $ | 8,459 | | | $ | 3,805 | | | $ | (80 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 227 | | | | 366 | | | | 2,856 | | | | 16,656 | | | | 12,244 | |
| Shares issued-reinvested from distributions | | | 353 | | | | 313 | | | | 819 | | | | 532 | | | | — | |
| Shares redeemed | | | (3,508 | ) | | | (5,881 | ) | | | (30,161 | ) | | | (8,200 | ) | | | (132 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | (2,928 | ) | | | (5,202 | ) | | | (26,486 | ) | | | 8,988 | | | | 12,112 | |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 177 | | Annual Report 2011 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the periods or years ended:
(all amounts in thousands)
| | | | | | | | | |
| | | Transamerica WMC Emerging | |
| | | Markets | |
| | | October 31, 2011 | | | October 31, 2010 | |
| | | |
From operations: | | | | | | | | |
| Net investment income (loss) | | $ | 2,452 | | | $ | 2,068 | |
Net realized gain (loss)(A) | | | 16,090 | | | | 21,267 | |
Net change in unrealized appreciation (depreciation)(B) | | | (76,989 | ) | | | 28,266 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | (58,447 | ) | | | 51,601 | |
| | | |
| | | | | | | | | |
Distributions to shareholders: | | | | | | | | |
| From net investment income | | | (183 | ) | | | (956 | ) |
| From net realized gains | | | (23,647 | ) | | | (3,430 | ) |
| | | |
Total distributions to shareholders | | | (23,830 | ) | | | (4,386 | ) |
| | | |
| | | | | | | | | |
Capital share transactions: | | | | | | | | |
| Proceeds from shares sold | | | 69,460 | | | | 232,087 | |
| Dividends and distributions reinvested | | | 17,128 | | | | 4,386 | |
| Cost of shares redeemed | | | (75,961 | ) | | | (50,969 | ) |
| | | |
Net increase in net assets resulting from capital shares transactions | | | 10,627 | | | | 185,504 | |
| | | |
| | | | | | | | | |
Net increase (decrease) in net assets | | | (71,650 | ) | | | 232,719 | |
| | | |
| | | | | | | | | |
Net assets: | | | | | | | | |
| Beginning of year | | | 411,311 | | | | 178,592 | |
| | | |
| End of year | | $ | 339,661 | | | $ | 411,311 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | 1,116 | | | $ | 183 | |
| | | |
| | | | | | | | | |
Share activity: | | | | | | | | |
| Shares issued | | | 5,049 | | | | 18,069 | |
| Shares issued-reinvested from distributions | | | 1,259 | | | | 346 | |
| Shares redeemed | | | (6,181 | ) | | | (4,430 | ) |
| | | |
| Net increase in shares outstanding | | | 127 | | | | 13,985 | |
| | | |
| | |
| (A) | | Net realized gain (loss) includes all items listed in the Statement of Operations. |
| |
| (B) | | Change in unrealized appreciation (depreciation) includes all items listed in the Statement of Operations. |
| |
| (C) | | Formerly, Transamerica AllianceBernstein International Value. |
| |
| (D) | | Commenced operations on August 31, 2011 |
| |
| (E) | | Formerly, Transamerica BNY Mellon Market Neutral Strategy. |
| |
| (F) | | Commenced operations on May 1, 2011 |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 178 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica BlackRock Large Cap Value | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.34 | | | $ | 7.81 | | | $ | 7.61 | | | $ | 13.08 | | | $ | 12.15 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.10 | | | | 0.10 | | | | 0.13 | | | | 0.13 | | | | 0.12 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.56 | | | | 0.54 | | | | 0.20 | | | | (4.78 | ) | | | 1.27 | |
| | | |
| Total from investment operations | | | 0.66 | | | | 0.64 | | | | 0.33 | | | | (4.65 | ) | | | 1.39 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.12 | ) | | | (0.11 | ) | | | (0.13 | ) | | | (0.09 | ) | | | (0.09 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (0.73 | ) | | | (0.37 | ) |
| | | |
| Total distributions | | | (0.12 | ) | | | (0.11 | ) | | | (0.13 | ) | | | (0.82 | ) | | | (0.46 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.88 | | | $ | 8.34 | | | $ | 7.81 | | | $ | 7.61 | | | $ | 13.08 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 7.92 | % | | | 8.16 | % | | | 4.50 | % | | | (37.76 | %) | | | 11.80 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 544,049 | | | $ | 702,205 | | | $ | 633,675 | | | $ | 461,816 | | | $ | 610,135 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.84 | % | | | 0.83 | % | | | 0.83 | % | | | 0.83 | % | | | 0.84 | % |
| Before reimbursement/recapture | | | 0.84 | % | | | 0.83 | % | | | 0.83 | % | | | 0.83 | % | | | 0.84 | % |
| Net investment income, to average net assets | | | 1.05 | % | | | 1.21 | % | | | 1.87 | % | | | 1.21 | % | | | 0.96 | % |
| Portfolio turnover rate | | | 100 | % | | | 124 | % | | | 130 | % | | | 71 | % | | | 69 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Clarion Global Real Estate Securities |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 12.28 | | | $ | 10.77 | | | $ | 9.52 | | | $ | 20.48 | | | $ | 20.25 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.24 | | | | 0.26 | | | | 0.29 | | | | 0.32 | | | | 0.36 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.19 | ) | | | 1.98 | | | | 1.15 | | | | (8.33 | ) | | | 2.45 | |
| | | |
| Total from investment operations | | | 0.05 | | | | 2.24 | | | | 1.44 | | | | (8.01 | ) | | | 2.81 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.69 | ) | | | (0.73 | ) | | | (0.19 | ) | | | (0.90 | ) | | | (0.80 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (2.05 | ) | | | (1.78 | ) |
| | | |
| Total distributions | | | (0.69 | ) | | | (0.73 | ) | | | (0.19 | ) | | | (2.95 | ) | | | (2.58 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.64 | | | $ | 12.28 | | | $ | 10.77 | | | $ | 9.52 | | | $ | 20.48 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 0.51 | % | | | 21.70 | % | | | 15.72 | % | | | (44.82 | %) | | | 15.11 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 147,057 | | | $ | 319,368 | | | $ | 285,502 | | | $ | 232,115 | | | $ | 367,750 | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | 0.91 | % | | | 0.91 | % | | | 0.93 | % | | | 0.89 | % | | | 0.88 | % |
| Net investment income, to average net assets | | | 2.01 | % | | | 2.31 | % | | | 3.30 | % | | | 2.29 | % | | | 1.29 | % |
| Portfolio turnover rate | | | 39 | % | | | 62 | % | | | 61 | % | | | 41 | % | | | 72 | % |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 179 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica First Quadrant Global Macro |
| | | | | | | | | | | | | | | | | | | October 31, | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | 2007(C) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 6.12 | | | $ | 6.08 | | | $ | 8.60 | | | $ | 9.83 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(A) | | | (0.09 | ) | | | (0.10 | ) | | | 0.02 | | | | 0.18 | | | | 0.09 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.21 | ) | | | 0.14 | | | | (0.04 | ) | | | (1.30 | ) | | | (0.26 | ) |
| | | |
| Total from investment operations | | | (0.30 | ) | | | 0.04 | | | | (0.02 | ) | | | (1.12 | ) | | | (0.17 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | (0.03 | ) | | | (0.11 | ) | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | (2.40 | ) | | | — | | | | — | |
| Return of capital | | | — | | | | — | | | | (0.07 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | — | | | | — | | | | (2.50 | ) | | | (0.11 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 5.82 | | | $ | 6.12 | | | $ | 6.08 | | | $ | 8.60 | | | $ | 9.83 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (4.90 | %) | | | 0.66 | % | | | 5.34 | % | | | (11.55 | %) | | | (1.70 | %) (D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 137,551 | | | $ | 126,142 | | | $ | 107,017 | | | $ | 165,567 | | | $ | 209,382 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.53 | % | | | 1.61 | % | | | 1.58 | % | | | 1.51 | % | | | 1.51 | % (E) |
| Before reimbursement/recapture | | | 1.53 | % | | | 1.61 | % | | | 1.58 | % | | | 1.51 | % | | | 1.51 | % (E) |
| Net investment income (loss), to average net assets | | | (1.49 | %) | | | (1.56 | %) | | | 0.32 | % | | | 1.81 | % | | | 1.16 | % (E) |
| Portfolio turnover rate | | | — | % | | | — | % | | | 358 | % | | | 84 | % | | | 45 | % (D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | Transamerica | |
| | | | | | | | | | | | | | | | | | | | | | | ICAP Select | |
| | | Transamerica Hansberger International Value(F) | | | Equity | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | | | October 31, 2011(G) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.07 | | | $ | 7.79 | | | $ | 6.61 | | | $ | 14.88 | | | $ | 12.35 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.16 | | | | 0.15 | | | | 0.16 | | | | 0.30 | | | | 0.25 | | | | 0.01 | |
| Net realized and change in unrealized gain (loss) on investments | | | (1.15 | ) | | | 0.29 | | | | 1.37 | | | | (7.43 | ) | | | 2.65 | | | | 0.21 | |
| | | |
| Total from investment operations | | | (0.99 | ) | | | 0.44 | | | | 1.53 | | | | (7.13 | ) | | | 2.90 | | | | 0.22 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.20 | ) | | | (0.16 | ) | | | (0.35 | ) | | | (0.21 | ) | | | (0.15 | ) | | | —(H) | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (0.93 | ) | | | (0.22 | ) | | | — | |
| | | |
| Total distributions | | | (0.20 | ) | | | (0.16 | ) | | | (0.35 | ) | | | (1.14 | ) | | | (0.37 | ) | | | —(H) | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 6.88 | | | $ | 8.07 | | | $ | 7.79 | | | $ | 6.61 | | | $ | 14.88 | | | $ | 10.22 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (12.56 | %) | | | 5.61 | % | | | 24.32 | % | | | (51.72 | %) | | | 23.99 | % | | | 2.31 | %(D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 156,600 | | | $ | 298,751 | | | $ | 316,068 | | | $ | 248,337 | | | $ | 519,217 | | | $ | 936,279 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.99 | % | | | 0.97 | % | | | 0.97 | % | | | 0.94 | % | | | 0.93 | % | | | 0.83 | %(E) |
| Before reimbursement/recapture | | | 0.99 | % | | | 0.97 | % | | | 0.97 | % | | | 0.94 | % | | | 0.93 | % | | | 0.83 | %(E) |
| Net investment income, to average net assets | | | 2.01 | % | | | 2.00 | % | | | 2.39 | % | | | 2.71 | % | | | 1.82 | % | | | 0.83 | %(E) |
| Portfolio turnover rate | | | 146 | % | | | 59 | % | | | 59 | % | | | 33 | % | | | 36 | % | | | 6 | %(D) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 180 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Jennison Growth | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.78 | | | $ | 10.17 | | | $ | 8.37 | | | $ | 13.05 | | | $ | 11.40 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | —(H) | | | | 0.01 | | | | 0.01 | | | | 0.02 | | | | 0.03 | |
| Net realized and change in unrealized gain (loss) on investments | | | 1.17 | | | | 1.61 | | | | 1.81 | | | | (4.68 | ) | | | 2.08 | |
| | | |
| Total from investment operations | | | 1.17 | | | | 1.62 | | | | 1.82 | | | | (4.66 | ) | | | 2.11 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.01 | ) | | | (0.01 | ) | | | (0.02 | ) | | | (0.02 | ) | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | — | | | | (0.46 | ) |
| | | |
| Total distributions | | | (0.01 | ) | | | (0.01 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.46 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 12.94 | | | $ | 11.78 | | | $ | 10.17 | | | $ | 8.37 | | | $ | 13.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 9.96 | % | | | 15.96 | % | | | 21.79 | % | | | (35.77 | %) | | | 19.14 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 618,767 | | | $ | 726,732 | | | $ | 654,610 | | | $ | 184,981 | | | $ | 160,815 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | 0.81 | % | | | 0.81 | % | | | 0.85 | % | | | 0.85 | % | | | 0.87 | % |
| Net investment income, to average net assets | | | 0.01 | % | | | 0.09 | % | | | 0.16 | % | | | 0.21 | % | | | 0.22 | % |
| Portfolio turnover rate | | | 55 | % | | | 83 | % | | | 82 | % | | | 70 | % | | | 63 | % |
| | | |
| | | | | | | | | | | | | |
| | | Transamerica JPMorgan Core Bond | |
| | | | | | | | | | | October 31, | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | 2009(I) | |
| |
Net asset value | | | | | | | | | | | | |
| Beginning of year | | $ | 10.56 | | | $ | 10.08 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | |
Net investment income(A) | | | 0.32 | | | | 0.28 | | | | 0.07 | |
| Net realized and change in unrealized gain on investments | | | 0.15 | | | | 0.53 | | | | 0.06 | |
| | | |
| Total from investment operations | | | 0.47 | | | | 0.81 | | | | 0.13 | |
| | | |
| | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | |
| Net investment income | | | (0.36 | ) | | | (0.33 | ) | | | (0.05 | ) |
| Net realized gains on investments | | | (0.07 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.43 | ) | | | (0.33 | ) | | | (0.05 | ) |
| | | |
| | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | |
| End of year | | $ | 10.60 | | | $ | 10.56 | | | $ | 10.08 | |
| | | |
| | | | | | | | | | | | | |
Total return(B) | | | 4.62 | % | | | 8.16 | % | | | 1.34 | % (D) |
| | | |
| | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 2,208,783 | | | $ | 1,063,458 | | | $ | 215,816 | |
| | | |
| | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.48 | % | | | 0.50 | % | | | 0.55 | % (E) |
| Before reimbursement/recapture | | | 0.48 | % | | | 0.50 | % | | | 0.55 | % (E) |
| Net investment income, to average net assets | | | 3.04 | % | | | 2.73 | % | | | 2.15 | % (E) |
| Portfolio turnover rate | | | 19 | % | | | 33 | % | | | 3 | % (D) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 181 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica JPMorgan Interntional Bond | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 12.08 | | | $ | 11.64 | | | $ | 10.56 | | | $ | 11.00 | | | $ | 10.51 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.23 | | | | 0.24 | | | | 0.26 | | | | 0.29 | | | | 0.28 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.05 | ) | | | 0.71 | | | | 1.59 | | | | (0.29 | ) | | | 0.59 | |
| | | |
| Total from investment operations | | | 0.18 | | | | 0.95 | | | | 1.85 | | | | — | (H) | | | 0.87 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.93 | ) | | | (0.39 | ) | | | (0.68 | ) | | | (0.44 | ) | | | (0.38 | ) |
| Net realized gains on investments | | | (0.09 | ) | | | (0.12 | ) | | | (0.09 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (1.02 | ) | | | (0.51 | ) | | | (0.77 | ) | | | (0.44 | ) | | | (0.38 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.24 | | | $ | 12.08 | | | $ | 11.64 | | | $ | 10.56 | | | $ | 11.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 2.20 | % | | | 8.54 | % | | | 17.90 | % | | | (0.14 | %) | | | 8.55 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 475,292 | | | $ | 447,141 | | | $ | 732,964 | | | $ | 699,078 | | | $ | 761,827 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.63 | % | | | 0.61 | % | | | 0.60 | % | | | 0.61 | % | | | 0.61 | % |
| Before reimbursement/recapture | | | 0.63 | % | | | 0.61 | % | | | 0.60 | % | | | 0.61 | % | | | 0.61 | % |
| Net investment income, to average net assets | | | 2.09 | % | | | 2.16 | % | | | 2.38 | % | | | 2.55 | % | | | 2.68 | % |
| Portfolio turnover rate | | | 98 | % | | | 61 | % | | | 53 | % | | | 74 | % | | | 86 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica JPMorgan Long/Short Strategy(J) | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007(C) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.32 | | | $ | 8.43 | | | $ | 9.51 | | | $ | 9.78 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(A) | | | (0.15 | ) | | | (0.13 | ) | | | (0.17 | ) | | | 0.10 | | | | 0.23 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.31 | ) | | | 0.02 | | | | (0.80 | ) | | | 0.20 | | | | (0.45 | ) |
| | | |
| Total from investment operations | | | (0.46 | ) | | | (0.11 | ) | | | (0.97 | ) | | | 0.30 | | | | 0.22 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (0.57 | ) | | | — | |
| Return of capital | | | — | | | | — | | | | (0.11 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | — | | | | — | | | | (0.11 | ) | | | (0.57 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 7.86 | | | $ | 8.32 | | | $ | 8.43 | | | $ | 9.51 | | | $ | 9.78 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (5.53 | %) | | | (1.30 | %) | | | (10.27 | %) | | | 3.30 | % | | | (2.20 | %) (D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 113,108 | | | $ | 108,342 | | | $ | 86,682 | | | $ | 121,348 | | | $ | 112,394 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
After reimbursement/recapture(K) | | | 3.59 | % | | | 2.85 | % | | | 3.61 | % | | | 2.79 | % | | | 3.05 | % (E) |
Before reimbursement/recapture(K) | | | 3.59 | % | | | 2.85 | % | | | 3.61 | % | | | 2.79 | % | | | 3.05 | % (E) |
Net investment income (loss), to average net assets(K) | | | (1.86 | %) | | | (1.61 | %) | | | (1.87 | %) | | | 1.05 | % | | | 2.77 | % (E) |
| Portfolio turnover rate | | | 411 | % | | | 303 | % | | | 463 | % | | | 192 | % | | | 119 | % (D) |
| | | |
| | | | |
| | | | | |
| The notes to the financial statements are an integral part of this report. |
| | | | | |
| Transamerica Funds | | Page 182 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica JPMorgan Mid Cap Value | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 10.17 | | | $ | 8.28 | | | $ | 7.54 | | | $ | 12.32 | | | $ | 11.67 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.11 | | | | 0.12 | | | | 0.15 | | | | 0.13 | | | | 0.13 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.79 | | | | 1.93 | | | | 0.82 | | | | (4.20 | ) | | | 1.13 | |
| | | |
| Total from investment operations | | | 0.90 | | | | 2.05 | | | | 0.97 | | | | (4.07 | ) | | | 1.26 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.14 | ) | | | (0.16 | ) | | | (0.17 | ) | | | (0.10 | ) | | | (0.11 | ) |
| Net realized gains on investments | | | — | | | | — | | | | (0.06 | ) | | | (0.61 | ) | | | (0.50 | ) |
| | | |
| Total distributions | | | (0.14 | ) | | | (0.16 | ) | | | (0.23 | ) | | | (0.71 | ) | | | (0.61 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.93 | | | $ | 10.17 | | | $ | 8.28 | | | $ | 7.54 | | | $ | 12.32 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 8.88 | % | | | 25.08 | % | | | 13.39 | % | | | (34.92 | %) | | | 11.07 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 158,344 | | | $ | 163,612 | | | $ | 165,838 | | | $ | 147,772 | | | $ | 270,661 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.90 | % | | | 0.89 | % | | | 0.90 | % | | | 0.87 | % | | | 0.87 | % |
| Before reimbursement/recapture | | | 0.90 | % | | | 0.89 | % | | | 0.90 | % | | | 0.87 | % | | | 0.87 | % |
| Net investment income, to average net assets | | | 1.04 | % | | | 1.33 | % | | | 2.05 | % | | | 1.22 | % | | | 0.98 | % |
| Portfolio turnover rate | | | 39 | % | | | 29 | % | | | 43 | % | | | 45 | % | | | 50 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Loomis Sayles Bond | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007(C) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.14 | | | $ | 9.93 | | | $ | 7.34 | | | $ | 10.19 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.54 | | | | 0.57 | | | | 0.60 | | | | 0.60 | | | | 0.45 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.20 | ) | | | 1.23 | | | | 2.61 | | | | (2.88 | ) | | | (0.01 | ) |
| | | |
| Total from investment operations | | | 0.34 | | | | 1.80 | | | | 3.21 | | | | (2.28 | ) | | | 0.44 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.68 | ) | | | (0.59 | ) | | | (0.57 | ) | | | (0.57 | ) | | | (0.25 | ) |
| Net realized gains on investments | | | (0.19 | ) | | | — | | | | (0.05 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.87 | ) | | | (0.59 | ) | | | (0.62 | ) | | | (0.57 | ) | | | (0.25 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.61 | | | $ | 11.14 | | | $ | 9.93 | | | $ | 7.34 | | | $ | 10.19 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 3.31 | % | | | 18.69 | % | | | 46.27 | % | | | (23.56 | %) | | | 4.50 | %(D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 462,340 | | | $ | 594,220 | | | $ | 812,252 | | | $ | 577,368 | | | $ | 513,249 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.71% | | | | 0.70 | % | | | 0.69 | % | | | 0.69 | % | | | 0.73 | %(E) |
| Before reimbursement/recapture | | | 0.71% | | | | 0.70 | % | | | 0.69 | % | | | 0.69 | % | | | 0.73 | %(E) |
| Net investment income, to average net assets | | | 4.98% | | | | 5.49 | % | | | 7.22 | % | | | 6.34 | % | | | 5.42 | %(E) |
| Portfolio turnover rate | | | 57% | | | | 79 | % | | | 42 | % | | | 24 | % | | | 18 | %(D) |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 183 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | |
| | | Transamerica MFS International Equity | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008(R) | |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.11 | | | $ | 8.16 | | | $ | 6.58 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.15 | | | | 0.12 | | | | 0.12 | | | | 0.02 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.37 | ) | | | 1.09 | | | | 1.46 | | | | (3.44 | ) |
| | | |
| Total from investment operations | | | (0.22 | ) | | | 1.21 | | | | 1.58 | | | | (3.42 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.10 | ) | | | (0.06 | ) | | | — | | | | — | |
| Net realized gains on investments | | | (0.45 | ) | | | (0.20 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.55 | ) | | | (0.26 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.34 | | | $ | 9.11 | | | $ | 8.16 | | | $ | 6.58 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(B) | | | (2.69 | %) | | | 15.16 | % | | | 24.01 | % | | | (34.20%) | (D) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 353,694 | | | $ | 536,181 | | | $ | 396,754 | | | $ | 40,997 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | 0.99 | % | | | 0.99 | % | | | 1.09 | % | | | 1.23% | (E) |
| Net investment income, to average net assets | | | 1.69 | % | | | 1.47 | % | | | 1.78 | % | | | 0.71% | (E) |
| Portfolio turnover rate | | | 29 | % | | | 35 | % | | | 24 | % | | | 37% | (D) |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Emerging Markets Debt | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.29 | | | $ | 10.23 | | | $ | 7.98 | | | $ | 11.23 | | | $ | 10.91 | |
| | | |
| |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.56 | | | | 0.62 | | | | 0.60 | | | | 0.61 | | | | 0.59 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.33 | ) | | | 1.07 | | | | 2.18 | | | | (2.72 | ) | | | 0.46 | |
| | | |
| Total from investment operations | | | 0.23 | | | | 1.69 | | | | 2.78 | | | | (2.11 | ) | | | 1.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.51 | ) | | | (0.63 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.63 | ) |
| Net realized gains on investments | | | (0.26 | ) | | | — | | | | — | | | | (0.35 | ) | | | (0.10 | ) |
| | | |
| Total distributions | | | (0.77 | ) | | | (0.63 | ) | | | (0.53 | ) | | | (1.14 | ) | | | (0.73 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.75 | | | $ | 11.29 | | | $ | 10.23 | | | $ | 7.98 | | | $ | 11.23 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 2.36 | % | | | 17.16 | % | | | 36.29 | % | | | (20.81 | %) | | | 9.94 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 310,377 | | | $ | 302,576 | | | $ | 382,618 | | | $ | 320,350 | | | $ | 317,328 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.00 | % | | | 1.00 | % | | | 0.98 | % | | | 0.98 | % | | | 1.03 | % |
| Before reimbursement/recapture | | | 1.00 | % | | | 1.00 | % | | | 0.98 | % | | | 0.98 | % | | | 1.03 | % |
| Net investment income, to average net assets | | | 5.24 | % | | | 5.89 | % | | | 6.67 | % | | | 5.92 | % | | | 5.36 | % |
| Portfolio turnover rate | | | 75 | % | | | 100 | % | | | 118 | % | | | 81 | % | | | 79 | % |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 184 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Mid-Cap Growth | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 13.07 | | | $ | 9.58 | | | $ | 7.42 | | | $ | 14.16 | | | $ | 10.33 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.03 | | | | 0.04 | | | | — | (H) | | | 0.02 | | | | 0.04 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.81 | | | | 3.47 | | | | 2.17 | | | | (5.90 | ) | | | 3.81 | |
| | | |
| Total from investment operations | | | 0.84 | | | | 3.51 | | | | 2.17 | | | | (5.88 | ) | | | 3.85 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.05 | ) | | | (0.02 | ) | | | (0.01 | ) | | | (0.02 | ) | | | (0.02 | ) |
| Net realized gains on investments | | | (0.79 | ) | | | — | | | | — | | | | (0.84 | ) | | | — | |
| | | |
| Total distributions | | | (0.84 | ) | | | (0.02 | ) | | | (0.01 | ) | | | (0.86 | ) | | | (0.02 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 13.07 | | | $ | 13.07 | | | $ | 9.58 | | | $ | 7.42 | | | $ | 14.16 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 6.45 | % | | | 36.64 | % | | | 29.29 | % | | | (43.99 | %) | | | 37.32 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 268,660 | | | $ | 292,575 | | | $ | 256,212 | | | $ | 98,141 | | | $ | 125,380 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.87 | % | | | 0.86 | % | | | 0.88 | % | | | 0.87 | % | | | 0.90 | % |
| Before reimbursement/recapture | | | 0.87 | % | | | 0.86 | % | | | 0.88 | % | | | 0.87 | % | | | 0.90 | % |
| Net investment income (loss), to average net assets | | | 0.21 | % | | | 0.37 | % | | | (0.06 | %) | | | 0.19 | % | | | 0.32 | % |
| Portfolio turnover rate | | | 31 | % | | | 50 | % | | | 38 | % | | | 40 | % | | | 74 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Morgan Stanley Small Company Growth | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 10.94 | | | $ | 8.82 | | | $ | 7.39 | | | $ | 14.14 | | | $ | 12.78 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(A) | | | 0.04 | | | | — | (H) | | | (0.02 | ) | | | 0.10 | | | | 0.02 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.59 | | | | 2.12 | | | | 1.62 | | | | (5.50 | ) | | | 1.81 | |
| | | |
| Total from investment operations | | | 0.63 | | | | 2.12 | | | | 1.60 | | | | (5.40 | ) | | | 1.83 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.04 | ) | | | — | | | | (0.15 | ) | | | (0.02 | ) | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (1.33 | ) | | | (0.47 | ) |
| Return of capital | | | — | | | | — | | | | (0.02 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.04 | ) | | | — | | | | (0.17 | ) | | | (1.35 | ) | | | (0.47 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.53 | | | $ | 10.94 | | | $ | 8.82 | | | $ | 7.39 | | | $ | 14.14 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 5.71 | % | | | 24.04 | % | | | 22.43 | % | | | (41.72 | %) | | | 14.75 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 178,417 | | | $ | 181,460 | | | $ | 129,889 | | | $ | 61,214 | | | $ | 188,347 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.02 | % | | | 1.02 | % | | | 1.04 | % | | | 1.02 | % | | | 1.01 | % |
| Before reimbursement/recapture | | | 1.02 | % | | | 1.02 | % | | | 1.04 | % | | | 1.02 | % | | | 1.01 | % |
| Net investment income (loss), to average net assets | | | 0.29 | % | | | (0.02 | %) | | | (0.19 | %) | | | 0.89 | % | | | 0.13 | % |
| Portfolio turnover rate | | | 34 | % | | | 21 | % | | | 40 | % | | | 44 | % | | | 71 | % |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 185 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Neuberger Berman International | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 8.94 | | | $ | 7.57 | | | $ | 5.95 | | | $ | 13.55 | | | $ | 11.74 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.14 | | | | 0.10 | | | | 0.10 | | | | 0.19 | | | | 0.15 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.47 | ) | | | 1.34 | | | | 1.69 | | | | (6.63 | ) | | | 2.37 | |
| | | |
| Total from investment operations | | | (0.33 | ) | | | 1.44 | | | | 1.79 | | | | (6.44 | ) | | | 2.52 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.11 | ) | | | (0.07 | ) | | | (0.17 | ) | | | (0.13 | ) | | | (0.13 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (1.03 | ) | | | (0.58 | ) |
| | | |
| Total distributions | | | (0.11 | ) | | | (0.07 | ) | | | (0.17 | ) | | | (1.16 | ) | | | (0.71 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 8.50 | | | $ | 8.94 | | | $ | 7.57 | | | $ | 5.95 | | | $ | 13.55 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (3.80 | %) | | | 19.16 | % | | | 30.83 | % | | | (51.66 | %) | | | 22.37 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 359,646 | | | $ | 584,849 | | | $ | 485,803 | | | $ | 307,981 | | | $ | 596,488 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.07 | % | | | 1.06 | % | | | 1.09 | % | | | 1.06 | % | | | 1.06 | % |
| Before reimbursement/recapture | | | 1.07 | % | | | 1.06 | % | | | 1.09 | % | | | 1.06 | % | | | 1.06 | % |
| Net investment income, to average net assets | | | 1.52 | % | | | 1.22 | % | | | 1.62 | % | | | 1.87 | % | | | 1.21 | % |
| Portfolio turnover rate | | | 46 | % | | | 51 | % | | | 75 | % | | | 72 | % | | | 57 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Oppenheimer Developing Markets | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 13.34 | | | $ | 10.12 | | | $ | 8.20 | | | $ | 17.07 | | | $ | 11.41 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.08 | | | | 0.05 | | | | 0.06 | | | | 0.19 | | | | 0.12 | |
| Net realized and change in unrealized gain (loss) on investments | | | (1.11 | ) | | | 3.22 | | | | 3.51 | | | | (7.65 | ) | | | 5.99 | |
| | | |
| Total from investment operations | | | (1.03 | ) | | | 3.27 | | | | 3.57 | | | | (7.46 | ) | | | 6.11 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.04 | ) | | | (0.05 | ) | | | (0.16 | ) | | | (0.09 | ) | | | (0.06 | ) |
| Net realized gains on investments | | | — | | | | — | | | | (1.49 | ) | | | (1.32 | ) | | | (0.39 | ) |
| | | |
| Total distributions | | | (0.04 | ) | | | (0.05 | ) | | | (1.65 | ) | | | (1.41 | ) | | | (0.45 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 12.27 | | | $ | 13.34 | | | $ | 10.12 | | | $ | 8.20 | | | $ | 17.07 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (7.77 | %) | | | 32.43 | % | | | 56.01 | % | | | (47.48 | %) | | | 55.27 | % |
| | | |
| | �� | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 497,656 | | | $ | 610,212 | | | $ | 495,636 | | | $ | 317,973 | | | $ | 674,561 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.31 | % | | | 1.31 | % | | | 1.35 | % | | | 1.32 | % | | | 1.34 | % |
| Before reimbursement/recapture | | | 1.31 | % | | | 1.31 | % | | | 1.35 | % | | | 1.32 | % | | | 1.34 | % |
| Net investment income, to average net assets | | | 0.58 | % | | | 0.48 | % | | | 0.77 | % | | | 1.42 | % | | | 0.87 | % |
| Portfolio turnover rate | | | 40 | % | | | 54 | % | | | 50 | % | | | 67 | % | | | 59 | % |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 186 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Oppenheimer Small- & Mid-Cap Value | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.33 | | | $ | 7.72 | | | $ | 6.30 | | | $ | 13.18 | | | $ | 10.94 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.04 | | | | 0.02 | | | | 0.03 | | | | 0.04 | | | | — | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.18 | | | | 1.63 | | | | 1.41 | | | | (5.98 | ) | | | 2.44 | |
| | | |
| Total from investment operations | | | 0.22 | | | | 1.65 | | | | 1.44 | | | | (5.94 | ) | | | 2.44 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.01 | ) | | | (0.04 | ) | | | (0.02 | ) | | | —(H) | | | | (0.02 | ) |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (0.94 | ) | | | (0.18 | ) |
| | | |
| Total distributions | | | (0.01 | ) | | | (0.04 | ) | | | (0.02 | ) | | | (0.94 | ) | | | (0.20 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.54 | | | $ | 9.33 | | | $ | 7.72 | | | $ | 6.30 | | | $ | 13.18 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 2.39 | % | | | 21.44 | % | | | 22.99 | % | | | (48.36 | %) | | | 22.57 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 258,536 | | | $ | 299,225 | | | $ | 269,281 | | | $ | 127,886 | | | $ | 183,126 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.96 | % | | | 0.96 | % | | | 0.98 | % | | | 1.00 | % | | | 1.03 | % |
| Before reimbursement/recapture | | | 0.96 | % | | | 0.96 | % | | | 0.98 | % | | | 1.00 | % | | | 1.02 | % |
| Net investment income, to average net assets | | | 0.44 | % | | | 0.19 | % | | | 0.43 | % | | | 0.34 | % | | | — | % |
| Portfolio turnover rate | | | 108 | % | | | 81 | % | | | 110 | % | | | 102 | % | | | 118 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica PIMCO Real Return TIPS | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.61 | | | $ | 10.72 | | | $ | 9.21 | | | $ | 10.21 | | | $ | 10.05 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.37 | | | | 0.25 | | | | 0.32 | | | | 0.47 | | | | 0.38 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.27 | | | | 1.04 | | | | 1.58 | | | | (0.96 | ) | | | 0.16 | |
| | | |
| Total from investment operations | | | 0.64 | | | | 1.29 | | | | 1.90 | | | | (0.49 | ) | | | 0.54 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.37 | ) | | | (0.40 | ) | | | (0.33 | ) | | | (0.51 | ) | | | (0.38 | ) |
| Net realized gains on investments | | | (0.43 | ) | | | — | | | | (0.06 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.80 | ) | | | (0.40 | ) | | | (0.39 | ) | | | (0.51 | ) | | | (0.38 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.45 | | | $ | 11.61 | | | $ | 10.72 | | | $ | 9.21 | | | $ | 10.21 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 6.23 | % | | | 12.40 | % | | | 21.00 | % | | | (5.29 | %) | | | 5.54 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 971,634 | | | $ | 845,965 | | | $ | 752,723 | | | $ | 621,092 | | | $ | 690,942 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | 0.73 | % | | | 0.72 | % | | | 0.74 | % | | | 0.74 | % | | | 0.73 | % |
| Net investment income, to average net assets | | | 3.35 | % | | | 2.32 | % | | | 3.23 | % | | | 4.47 | % | | | 3.82 | % |
| Portfolio turnover rate | | | 213 | % | | | 307 | % | | | 583 | % | | | 1,028 | % | | | 375 | % |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 187 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica PIMCO Total Return | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 10.80 | | | $ | 10.85 | | | $ | 9.58 | | | $ | 10.47 | | | $ | 10.28 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.30 | | | | 0.35 | | | | 0.49 | | | | 0.49 | | | | 0.46 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.07 | ) | | | 0.67 | | | | 1.64 | | | | (0.88 | ) | | | 0.18 | |
| | | |
| Total from investment operations | | | 0.23 | | | | 1.02 | | | | 2.13 | | | | (0.39 | ) | | | 0.64 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.30 | ) | | | (0.34 | ) | | | (0.67 | ) | | | (0.44 | ) | | | (0.44 | ) |
| Net realized gains on investments | | | (0.31 | ) | | | (0.73 | ) | | | (0.19 | ) | | | (0.06 | ) | | | (0.01 | ) |
| | | |
| Total distributions | | | (0.61 | ) | | | (1.07 | ) | | | (0.86 | ) | | | (0.50 | ) | | | (0.45 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.42 | | | $ | 10.80 | | | $ | 10.85 | | | $ | 9.58 | | | $ | 10.47 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | 2.45 | % | | | 10.25 | % | | | 23.74 | % | | | (4.04 | %) | | | 6.33 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 625,735 | | | $ | 667,721 | | | $ | 505,329 | | | $ | 555,428 | | | $ | 540,310 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets | | | 0.74 | % | | | 0.74 | % | | | 0.74 | % | | | 0.75 | % | | | 0.75 | % |
| Net investment income, to average net assets | | | 2.92 | % | | | 3.30 | % | | | 4.95 | % | | | 4.66 | % | | | 4.39 | % |
| Portfolio turnover rate | | | 144 | % | | | 222 | % | | | 841 | % | | | 751 | % | | | 756 | % |
| | | | | | | | | | | | | | | | | |
| | | Transamerica Schroders International Small Cap | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008(L) | |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 9.67 | | | $ | 8.22 | | | $ | 5.82 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.15 | | | | 0.08 | | | | 0.08 | | | | 0.12 | |
| | | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.66 | ) | | | 1.42 | | | | 2.41 | | | | (4.30 | ) |
| | | |
| Total from investment operations | | | (0.51 | ) | | | 1.50 | | | | 2.49 | | | | (4.18 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.11 | ) | | | (0.05 | ) | | | (0.09 | ) | | | — | |
| Net realized gains on investments | | | (0.05 | ) | | | — | | | | — | | | | — | |
| | | |
| Total distributions | | | (0.16 | ) | | | (0.05 | ) | | | (0.09 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 9.00 | | | $ | 9.67 | | | $ | 8.22 | | | $ | 5.82 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(B) | | | (5.39 | %) | | | 18.29 | % | | | 43.56 | % | | | (41.80 | %)(D) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 330,358 | | | $ | 548,288 | | | $ | 543,673 | | | $ | 108,655 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.15 | % | | | 1.16 | % | | | 1.23 | % | | | 1.27 | %(E) |
| Before reimbursement/recapture | | | 1.15 | % | | | 1.16 | % | | | 1.21 | % | | | 1.30 | %(E) |
| Net investment income, to average net assets | | | 1.46 | % | | | 0.97 | % | | | 1.23 | % | | | 1.96 | %(E) |
| Portfolio turnover rate | | | 38 | % | | | 54 | % | | | 46 | % | | | 14 | %(D) |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 188 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Third Avenue Value | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007(M) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 21.56 | | | $ | 18.44 | | | $ | 16.93 | | | $ | 28.93 | | | $ | 28.01 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.24 | | | | 0.19 | | | | 0.15 | | | | 0.24 | | | | 0.14 | |
| Net realized and change in unrealized gain (loss) on investments | | | (0.62 | ) | | | 3.20 | | | | 1.36 | | | | (11.45 | ) | | | 0.78 | |
| | | |
| Total from investment operations | | | (0.38 | ) | | | 3.39 | | | | 1.51 | | | | (11.21 | ) | | | 0.92 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.44 | ) | | | (0.27 | ) | | | — | | | | (0.42 | ) | | | — | |
| Net realized gains on investments | | | — | | | | — | | | | — | | | | (0.37 | ) | | | — | |
| | | |
| Total distributions | | | (0.44 | ) | | | (0.27 | ) | | | — | | | | (0.79 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 20.74 | | | $ | 21.56 | | | $ | 18.44 | | | $ | 16.93 | | | $ | 28.93 | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (1.87 | %) | | | 18.53 | % | | | 8.92 | % | | | (39.75 | %) | | | 3.28 | %(D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 307,724 | | | $ | 383,134 | | | $ | 423,550 | | | $ | 336,845 | | | $ | 678,578 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % | | | 0.86 | % | | | 0.86 | %(E) |
| Before reimbursement/recapture | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % | | | 0.86 | % | | | 0.86 | %(E) |
| Net investment income, to average net assets | | | 1.06 | % | | | 0.98 | % | | | 0.91 | % | | | 1.00 | % | | | 0.98 | %(E) |
| Portfolio turnover rate | | | 4 | % | | | — | %(N) | | | 17 | % | | | 29 | % | | | 11 | %(D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Transamerica | |
| | | | | | | | | | | | | | | | | | | Water Island | |
| | | | | | | | | | | | | | | | | | | Arbitrage | |
| | | Transamerica Thornburg International Value | | | Strategy | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31,2008(O) | | | October 31, 2011(P) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.12 | | | $ | 9.69 | | | $ | 7.98 | | | $ | 10.00 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(A) | | | 0.16 | | | | 0.10 | | | | 0.10 | | | | — | (H) | | | (0.04 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | (0.85 | ) | | | 1.42 | | | | 1.66 | | | | (2.02 | ) | | | 0.29 | |
| | | |
| Total from investment operations | | | (0.69 | ) | | | 1.52 | | | | 1.76 | | | | (2.02 | ) | | | 0.25 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.06 | ) | | | (0.06 | ) | | | — | | | | — | | | | — | |
| Net realized gains on investments | | | (0.07 | ) | | | (0.03 | ) | | | (0.05 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.13 | ) | | | (0.09 | ) | | | (0.05 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.30 | | | $ | 11.12 | | | $ | 9.69 | | | $ | 7.98 | | | $ | 10.25 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(B) | | | (6.31 | %) | | | 15.75 | % | | | 22.21 | % | | | (20.20%) | (D) | | | 2.50% | (D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 448,438 | | | $ | 778,484 | | | $ | 591,539 | | | $ | 79,516 | | | $ | 124,208 | |
| | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.08 | % | | | 1.08 | % | | | 1.17 | % | | | 1.35% | (E) | | | 1.55% | (E)(S) |
| Before reimbursement/recapture | | | 1.08 | % | | | 1.08 | % | | | 1.15 | % | | | 1.76% | (E) | | | 1.71% | (E)(S) |
| Net investment income (loss), to average net assets | | | 1.41 | % | | | 0.97 | % | | | 1.14 | % | | | (0.18%) | (E) | | | (0.78%) | (E)(S) |
| Portfolio turnover rate | | | 28 | % | | | 36 | % | | | 39 | % | | | 5% | (D) | | | 311% | (D) |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 189 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS (continued)
For the period or years ended:
| | | | | | | | | | | | | | | | | |
| | | Transamerica WMC Emerging Markets | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008(Q) | |
| |
Net asset value | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 14.28 | | | $ | 12.06 | | | $ | 7.66 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | |
Net investment income(A) | | | 0.08 | | | | 0.10 | | | | 0.09 | | | | — | (H) |
| Net realized and change in unrealized gain (loss) on investments | | | (1.83 | ) | | | 2.41 | | | | 4.31 | | | | (2.34 | ) |
| | | |
| Total from investment operations | | | (1.75 | ) | | | 2.51 | | | | 4.40 | | | | (2.34 | ) |
| | | |
| | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.01 | ) | | | (0.06 | ) | | | — | | | | — | |
| Net realized gains on investments | | | (0.78 | ) | | | (0.23 | ) | | | — | | | | — | |
| | | |
| Total distributions | | | (0.79 | ) | | | (0.29 | ) | | | — | | | | — | |
| | | |
| | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | |
| End of year | | $ | 11.74 | | | $ | 14.28 | | | $ | 12.06 | | | $ | 7.66 | |
| | | |
| | | | | | | | | | | | | | | | | |
Total return(B) | | | (13.03 | %) | | | 21.08 | % | | | 57.44 | % | | | (23.40%) | (D) |
| | | |
| | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 339,661 | | | $ | 411,311 | | | $ | 178,592 | | | $ | 76,127 | |
| | | |
| | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 1.39 | % | | | 1.40 | % | | | 1.40 | % | | | 1.40% | (E) |
| Before reimbursement/recapture | | | 1.36 | % | | | 1.40 | % | | | 1.43 | % | | | 2.26% | (E) |
| Net investment income, to average net assets | | | 0.59 | % | | | 0.78 | % | | | 0.89 | % | | | 0.15% | (E) |
| Portfolio turnover rate | | | 143 | % | | | 147 | % | | | 141 | % | | | 10% | (D) |
| | | |
| | |
| (A) | | Calculated based on average number of shares outstanding. |
| |
| (B) | | Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. |
| |
| (C) | | Commenced operations on January 3, 2007 |
| |
| (D) | | Not annualized. |
| |
| (E) | | Annualized. |
| |
| (F) | | Formerly, Transamerica AllianceBernstein International Value. |
| |
| (G) | | Commenced operations on August 31, 2011 |
| |
| (H) | | Rounds to less than $0.01 or $(0.01). |
| |
| (I) | | Commenced operations on July 1, 2009 |
| |
| (J) | | Formerly, Transamerica BNY Mellon Market Neutral Strategy. |
| |
| (K) | | Includes dividends and interest on securities sold short (representing 2.17%, 1.35%, 2.09%, 1.30%, and 1.56% of average net assets for 2011, 2010, 2009, 2008 and 2007, respectively). |
| |
| (L) | | Commenced operations on March 1, 2008 |
| |
| (M) | | Commenced operations on May 1, 2007 |
| |
| (N) | | Rounds to less than 0.01 or (0.01)%. |
| |
| (O) | | Commenced operations on September 15, 2008 |
| |
| (P) | | Commenced operations on May 1, 2011 |
| |
| (Q) | | Commenced operations on September 30, 2008 |
| |
| (R) | | Commenced operations on June 10, 2008 |
| |
| (S) | | Includes dividends and interest on securities sold short (representing 0.30% of average net assets for 2011). |
Note: Prior to November 1, 2009, all the financial highlights were audited by another independent registered public accounting firm.
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 190 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
(unaudited)
MARKET ENVIRONMENT
The fiscal year ending October 31, 2011 began with a period of increased growth expectations. Risk aversion decreased across markets, boosting equities, growth-sensitive commodities, and high-yielding and commodity-linked currencies. This was good for trend following strategies as it resulted in the continuation of various market trends. However, 2011 has been characterized by extremely choppy markets. The Euro rallied sharply in January following a protracted weakening. Equity markets dropped precipitously after the Japanese earthquake in March, only to rebound a week later. May brought renewed risk aversion due to Euro-zone fears, followed by a number of strong rallies and strong reversals across many markets, in part due to the slow unfolding of the sovereign debt crisis. In general, external events and political processes acted upon the markets, creating sharp changes in sentiment. Trend following strategies have struggled in this choppy environment.
PERFORMANCE
For the year ended October 31, 2011, Transamerica AQR Managed Futures Strategy, Class I2 returned (6.52)%. By comparison, its benchmark, the Citigroup 3-Month Treasury Bill + 7% Wrap Index, returned 7.34%.
STRATEGY REVIEW
The fund pursues an actively managed futures strategy. We invest in futures and forward contracts, both long and short across the global equity, fixed income, commodity, and currency markets. We utilize both short and long-term trend following signals to attempt to profit from different types of trends that occur in all of these markets. Trend following can be simply described as going long markets that are rising in price and going short markets that are falling in price. In addition to trend following signals, we also incorporate signals that seek to identify overextended trends and reduce risk when the chance of a reversal is perceived as higher than normal, since market reversals generally cause losses for trend following strategies.
We believe that the correlation of this strategy to the equity markets will average close to zero over a full economic cycle. That said, it is the nature of the strategy to exhibit a positive beta when the markets have been rising and a negative beta when the markets have been falling. While the fund started the fiscal year with a positive beta to the equity markets, the fund ended the year with a negative beta due to negative trends in various risk markets.
The fund returned (6.52)% over the fiscal year. By asset class, equities contributed (3.7)%, commodities contributed (2.4)%, and currencies contributed (3.5)%. Fixed income was positive for the year returning 3.5% to help offset losses in other asset classes.
At the beginning of the fiscal year, we were very pleased with the results of the fund. Trends continued in more markets than not and that led to the fund posting some strong results. However, as markets became choppy in the early months of 2011, trend following in general and the fund in particular experienced a difficult period. There were a number of bolt-from-the-blue type events, from floods in Australia that hurt our Australian dollar and bond positions, to the tragic events in Japan. These are exactly the types of events that can hurt a trend following approach.
Some sharp reversals and continued choppy markets characterized the third quarter continuing the difficult environment for trend following strategies. However, losses were mitigated by the fund’s construction which emphasizes diversification across assets, asset classes, and signals. In particular, our overextended trend signals correctly identified exhausted trends and helped mitigate losses.
Managed futures strategies profit by finding trends among the hundreds of global liquid futures markets; usually, the profits from trending markets more than offset losses in other, choppy markets. Unfortunately, 2011 was characterized by a combination of choppy markets and high correlations among markets. In a market environment in which many assets are correlated to equity markets, the strategy will do very well if those assets trend (such as in 2008) but poorly if all of those markets are choppy (such as this year). On the other hand, even in 2011 there were strong trends to be found in fixed income markets, despite their negative correlation to the choppy equity markets. This highlights the benefits of diversification even in a tough overall environment.
We remain diversified in the fund and positioned to take advantage of trends as they develop across the global marketplace.
Brian K. Hurst
Yao Hua Ooi
Clifford S. Asness
John M. Liew
Co-Portfolio Managers
AQR Capital Management, LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 191 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | |
| | | | | | | 10 Years or | | |
| | | 1 Year | | Life of Fund | | Inception Date |
| |
| Class I2 (NAV) | | | (6.52 | )% | | | (4.64 | )% | | 09/30/2010 |
| Citigroup 3-Month Treasury Bill* | | | 7.34 | % | | | 0.10 | % | | 09/30/2010 |
NOTES
| | |
| * | | The Citigroup 3-Month Treasury Bill + 7% Wrap Index (“Citigroup 3-Month Treasury Bill”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or expense reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Securities purchased for an arbitrage strategy are intended to take advantage of a perceived relationship between the value of two securities and may not perform as expected. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| | | | | |
| Transamerica Funds | | Page 192 | | Annual Report 2011 |
Transamerica Black Rock Global Allocation
(unaudited)
MARKET ENVIRONMENT
For the period November 1, 2010 through October 31, 2011, concerns over a global economic slowdown and heightened market volatility caused global bonds to outperform global equities. Global bonds, as measured by the Citigroup World Government Bond Index, returned 3.7%. Global equities, as measured by the Financial Times Stock Exchange World Index (“FTSE”), returned 1.4%. Notwithstanding recent equity market volatility, we believe that the best opportunities continue to lie primarily in high-quality equities and certain commodity-oriented investments. Nevertheless, a diversified approach will remain important as global economic expansion unfolds at a slower pace in the developed markets versus the developing markets; and investors evaluate opportunities amidst uncertain global monetary policies, stubbornly high unemployment and high budget deficits.
PERFORMANCE
For the year ended October 31, 2011, Transamerica BlackRock Global Allocation Class I2 returned 2.28%. By comparison, its benchmark, the FTSE, returned 1.39%.
STRATEGY REVIEW
For the 12-month period ended October 31, 2011, Transamerica BlackRock Global Allocation returned 2.3%. The fund’s results lagged the 3.8% return of a blended benchmark for the 12-month period, and outpaced the 1.4% return of its broad-based all-equity benchmark, the FTSE. The fund invests in a combination of equities and bonds; therefore, the blended benchmark provides both a truer representation of the fund’s composition and a more comparable means for measurement. The blended benchmark was comprised of the Standard & Poor’s 500® Index (36%), the Financial Times Stock Exchange All-World ex U.S. Index (24%), the BofAML (“Bank of America Merill Lynch”) U.S. Treasury Current 5 Year Index (24%), and the Citigroup Non-U.S. Dollar World Government Bond Index (16%). The fund placed in the 27th percentile of the Lipper Global Flexible Portfolio Funds category for the same 12-month period.
Looking at equities by country, an overweight in India, China, and Russia, as well as an overweight and stock selection in Brazil, detracted from performance. An underweight and stock selection in France contributed to performance. Within the US, stock selection contributed although this was partially offset by an underweight to the region. From a sector perspective, stock selection in consumer Staples, consumer discretionary, and industrials detracted from performance. Stock selection in telecom contributed to returns. Within materials, stock selection (lead by gold related securities) also contributed to performance, although this was partially offset by an overweight in the sector. An underweight (relative to the blended benchmark) in fixed income detracted from performance. Within fixed income, security selection in the United States detracted from performance.
Relative to the blended benchmark, the fund was modestly overweight equities at 63%. Within equities from a regional perspective, the fund had an overweight position in Asian, notably Japanese, and Brazilian stocks and an underweight position in U.S. and European stocks. At 27%, the fund was significantly underweight fixed income securities relative to the blended benchmark. Within fixed income, the fund was overweight convertible bonds as well as USD foreign corporate bonds and underweight U.S. Treasuries, as well as Japanese and German government bonds. The fund was overweight cash equivalents (10.0%) relative to the blended benchmark, partially due to the team’s desire to keep portfolio duration low.
The fund uses derivatives, which may include options, futures, indexed securities, inverse securities, swaps and forward contracts both to enhance returns of the fund and to hedge (or protect) against adverse movements in currency exchange rates, interest rates and movements in the securities markets. The use of options, futures, indexed securities, inverse securities, swaps and forward contracts can be effective in protecting or enhancing the value of the fund’s assets and the fund will not engage in certain strategies that are considered highly risky and speculative. In addition, the Global Allocation team adheres to all BlackRock-wide policies and SEC guidelines to ensure that the fund does not use leverage. During the period, the fund’s use of derivatives had a positive impact on the absolute performance of the fund.
Dennis W. Stattman
Dan Chamby
Romualdo Roldan
Co-Portfolio Managers
BlackRock Investment Management, LLC
| | | | |
| | | | | |
| Transamerica Funds | | Page 193 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | 10 Years or | | | | |
| | | 1 Year | | | 5 Years | | | Life of Class | | | Inception Date | |
| |
| Class I2 (NAV) | | | 2.28 | % | | | 4.89 | % | | | 6.23 | % | | | 12/06/2005 | |
| FTSE World * | | | 1.39 | % | | | 0.16 | % | | | 2.74 | % | | | 12/06/2005 | |
NOTES
| | |
| * | | The Financial Times Stock Exchange World Index (“FTSE World”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on the inception date of the class. You cannot invest directly in an Index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
Global, foreign, and emerging market investing involves special considerations, including risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets. The risks of investing in foreign securities are magnified in emerging markets.
| | | | |
| | | | | |
| Transamerica Funds | | Page 194 | | Annual Report 2011 |
Transamerica Goldman Sachs Commodity Strategy
(unaudited)
MARKET ENVIRONMENT
The Dow Jones-UBS Commodity Index (“Dow Jones-UBS Commodity”) returned 1.50% for the period November 1, 2010 to October 31, 2011, coinciding with an 8.09% increase in the Standard & Poor’s 500® Index and a 1.4% decrease in the US Dollar Index. The precious metals sector was the main driver of the index’s positive return as weak global economic data and escalating sovereign credit fears in the European periphery increased demand for safe haven assets. Silver and gold rallied. The industrial metals sector was the worst performer over the period driven by economic growth concerns, particularly in Asia.
PERFORMANCE
For the year ended October 31, 2011, Transamerica Goldman Sachs Commodity Strategy Class I2 returned 5.12%. By comparison, its benchmark, the Dow Jones-UBS Commodity, returned 1.50%.
STRATEGY REVIEW
The portfolio outperformed its benchmark for the period November 1, 2010 to October 31, 2011 due largely to enhanced roll-timing strategies. The primary driver of positive performance was forward exposure to crude oil, where the fund was positioned three- and six-months further along the futures curve relative to the benchmark index. We believed near-term crude futures contracts would underperform longer-dated contracts, given high inventory levels in the midcontinent of the United States.
Goldman Sachs Asset Management’s (“GSAM”) strategy seeks to provide full exposure to the DJ-UBS Commodity while enhancing returns through disciplined roll timing strategies and active cash management of a high quality fixed income portfolio. The strategy does not take views on individual commodities; but rather, attempts to manage risk relative to that of the benchmark.
Roll management is the primary source of our alpha generation. We implement the roll by deviating slightly from the DJ-UBS Commodity convention, which calls for rolling 20% of the futures each day on business days five through nine on a bi-monthly basis. Instead, we tactically avoid the buying pressure that coincides with the peak roll period, which can create a modest amount of alpha with small increases in tracking error.
To the extent the firm believes fundamental or technical developments will impact the futures roll timing decision, it will incorporate those views into the portfolio by electing to roll positions earlier, later, forward, or in different weights versus the index roll. Roll timing strategies employed may include: alternative roll date modifications, which avoid the market impact of plain vanilla index rolls during business days 5 to 9; forward exposure roll modifications, which avoid the market impact of vanilla index rolls and move exposure out the curve to mitigate the returns impact often associated with persistent contango; and seasonal roll modifications, which take advantage of seasonal relationships in commodity markets to increase returns. These strategies enable GSAM to generate potential excess returns over the benchmark.
Stephen Lucas
Michael Johnson
John Calvaruso
Co-Portfolio Managers
Goldman Sachs Asset Management, L.P.
| | | | |
| | | | | |
| Transamerica Funds | | Page 195 | | Annual Report 2011 |
Transamerica Goldman Sachs Commodity Strategy
(unaudited)
Average Annual Total Return for Periods Ended 10/31/2011
| | | | | | | | | | | | | |
| | | | | | | 10 Years or | | | | |
| | | 1 Year | | | Life of Fund | | | Inception Date | |
| |
| Class I2 (NAV) | | | 5.12 | % | | | 4.03 | % | | | 01/03/2007 | |
| Dow Jones-UBS Commodity * | | | 1.50 | % | | | (1.55 | ) | | | 01/03/2007 | |
NOTES
| | |
| * | | The Dow Jones-UBS Commodity Index (“Dow Jones-UBS Commodity”) is an unmanaged index used as a general measure of market performance. Calculations assume dividends and capital gains are reinvested and do not include any managerial expenses. The 10 Years or Life of Fund calculation is based on inception date of the class. You cannot invest directly in an index. |
The performance data presented represents past performance; future results may vary. Performance data does not reflect the deduction of taxes that would be paid on fund distributions or the redemption of fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Please see www.transamericafunds.com for performance data current to the most recent month-end. Net Asset Value (“NAV”) returns include the reinvestment of dividends and capital gains. Fund shares are sold without a sales load.
Performance figures may reflect fee waivers and/or expense reimbursements by the Investment Adviser. Without such waivers and/or reimbursements, the performance would be lower. Future waivers and/or reimbursements are at the discretion of the Investment Adviser.
The fund’s investment exposure to the commodities markets may subject the fund to greater volatility than investments in more traditional securities, such as stocks and bonds. The performance of commodity-linked derivative instruments may depend on the performance of the overall commodities markets and on other factors that affect the value of commodities, including weather, disease, and political, tax, and other regulatory developments. This material must be preceded or accompanied by a current prospectus, which includes specific contents regarding the investment objectives and policies of this fund. This fund is only available in Class I2 shares, which are not available for direct investment by the public.
| | | | |
| |
| Transamerica Funds | | Page 196 | | Annual Report 2011 |
Understanding Your Funds’ Expenses
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees, dividend expense on short-sales, and other fund expenses.
The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the funds and to compare these costs with the ongoing costs of investing in other funds.
The examples are based on an investment of $1,000 invested at May 1, 2011 and held for the entire period until October 31, 2011.
ACTUAL EXPENSES
The information in the table under the heading “Actual Expenses” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, 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 = $8.60), then multiply the result by the number in the appropriate column for your share class titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLES FOR COMPARISON PURPOSES
The information in the table under the heading “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the funds’ actual returns. 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 funds versus other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the information under the heading “Hypothetical Expenses” 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 transactional costs were included, your costs would have been higher.
Expense ratios may vary period to period because of various factors, such as an increase in expenses that are not a part of the advisory and administrative fees. Examples of such expenses are fees and expenses of trustees and their counsel, extraordinary expenses and interest expense.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Actual Expenses | | | Hypothetical Expenses (B) | | | | |
| | | Beginning | | | Ending Account | | | Expenses Paid | | | Ending Account | | | Expenses Paid | | | Annualized | |
| Fund Name | | Account Value | | | Value | | | During Period (A) | | | Value | | | During Period (A) | | | Expense Ratio | |
| |
| Transamerica AQR Managed Futures Strategy | | $ | 1,000.00 | | | $ | 900.70 | | | $ | 6.42 | | | $ | 1,018.45 | | | $ | 6.82 | | | | 1.34 | % |
| Transamerica BlackRock Global Allocation | | | 1,000.00 | | | | 925.10 | | | | 4.66 | | | | 1,020.37 | | | | 4.89 | | | | 0.96 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 1,000.00 | | | | 859.50 | | | | 3.42 | | | | 1,021.53 | | | | 3.72 | | | | 0.73 | |
| | |
| (A) | | Expenses are calculated using the fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days), and divided by the number of days in the year (365 days). |
| |
| (B) | | 5% return per year before expenses. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 197 | | Annual Report 2011 |
Consolidated Schedules of Investments Composition
At October 31, 2011
(The following charts summarize the Consolidated Schedules of Investments of the Funds by asset type)
(unaudited)
| | | | | |
| | | % of Net | |
| Transamerica AQR Managed Futures Strategy | | Assets | |
| |
| Investment Companies | | | 84.6 | % |
Other Assets and Liabilities — Net (A) | | | 15 .4 | |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica BlackRock Global Allocation | | Assets | |
| |
| Common Stocks | | | 63.0 | % |
| Securities Lending Collateral | | | 11.0 | |
| Foreign Government Obligations | | | 9 .0 | |
| U.S. Government Obligations | | | 8 .1 | |
| Short-Term U.S. Government Obligations | | | 6 .9 | |
| Convertible Bonds | | | 4 .1 | |
| Corporate Debt Securities | | | 2 .8 | |
| Investment Companies | | | 2 .6 | |
| Preferred Stocks | | | 1 .7 | |
| Short-Term Foreign Government Obligations | | | 0 .7 | |
| Loan Assignments | | | 0 .4 | |
| Preferred Corporate Debt Securities | | | 0 .2 | |
| Convertible Preferred Stocks | | | 0 .1 | |
| Purchased Options | | | 0 .1 | |
| Mortgage-Backed Securities | | | 0 .1 | |
| Repurchase Agreement | | | 0.0 | * |
| Warrants | | | 0.0 | * |
Other Assets and Liabilities — Net (A) | | | (10.8 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | | | | |
| | | % of Net | |
| Transamerica Goldman Sachs Commodity Strategy | | Assets | |
| |
| Short-Term U.S. Government Obligations | | | 61.4 | % |
| Repurchase Agreement | | | 34.8 | |
| Securities Lending Collateral | | | 25 .2 | |
Other Assets and Liabilities — Net (A) | | | (21.4 | ) |
| | | | |
Total | | | 100.0 | % |
| | | | |
| | |
| (A) | | The Other Assets and Liabilities — Net category may include, but is not limited to, Forward Foreign Currency contracts, Futures contracts, Swap Agreements, Written Options and Swaptions, Securities Sold Short, and Cash Collateral. |
| |
| * | | Amount rounds to less than 0.1%. |
| | | | |
| |
| Transamerica Funds | | Page 198 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Shares | | | Value (000’s) | |
| |
INVESTMENT COMPANIES - 84.6% | | | | | | | | |
Capital Markets - 76.1% | | | | | | | | |
| Dreyfus Treasury Cash Management | | | 88,753,977 | | | $ | 88,754 | |
| UBS Select Treasury Preferred | | | 110,942 | | | | 110,943 | |
Money Market - 8.5% | | | | | | | | |
| BlackRock Liquidity Funds T-Fund Portfolio | | | 22,188 | | | | 22,188 | |
| |
| | | | | | | | |
| Total Investment Companies (cost $221,885) П | | | | | | | 221,885 | |
| Other Assets and Liabilities — Net | | | | | | | 40,524 | |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 262,409 | |
| | | | | | | | |
SWAP AGREEMENTS: β
TOTAL RETURN SWAP AGREEMENTS — PAYABLE: (A)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Premiums | | | Net Unrealized | |
| | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | (Pay)/Receive Fixed | | Maturity | | | | # of Units | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Reference Entity | | Price Per Unit | | Date | | Counterparty | | (000’s) | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| 2-Year Euro Schatz Futures | | 109.87 | | 12/08/2011 | | MLC | | 234 | | $ | 35,518 | | | $ | (56 | ) | | $ | w | | | $ | (56 | ) |
| 2-Year U.S. Treasury Note Futures | | 109.99 - 110.34 | | 11/28/2011 | | MYC | | 818 | | | 90,095 | | | | (118 | ) | | | w | | | | (118 | ) |
| 5-Year Euro BOBL Futures | | 122.29 | | 12/08/2011 | | MLC | | 50 | | | 8,464 | | | | 4 | | | | w | | | | 4 | |
| 5-Year U.S. Treasury Note Futures | | 122.65 | | 11/28/2011 | | MYC | | 28 | | | 3,433 | | | | (1 | ) | | | w | | | | (1 | ) |
| Swiss Market Index Futures | | 5,242.91 - 5,831.91 | | 12/16/2011 | | RBS | | w | | | 131 | | | | (2 | ) | | | w | | | | (2 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (173 | ) | | $ | w | | | $ | (173 | ) |
| | | | | | | | | | | | | | | |
TOTAL RETURN SWAP AGREEMENTS — RECEIVABLE: (A)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Premiums | | | Net Unrealized | |
| | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | (Pay)/Receive Fixed | | Maturity | | | | # of Units | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Reference Entity | | Price Per Unit | | Date | | Counterparty | | (000’s) | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Wheat December Futures | | 674.5 - 740.75 | | 11/25/2011 | | BRC | | (320) | | $ | 2,265 | | | $ | 254 | | | $ | w | | | $ | 254 | |
| | | | | | | | | | | |
| | | | | | | | | Net Unrealized | |
| | | | | | | | | Appreciation | |
| | | | | | | | | (Depreciation) | |
| Description | | Type | | Contracts ┌ | | Expiration Date | | (000’s) | |
| |
| 10-Year Australian Treasury Bond | | Long | | 107 | | 12/15/2011 | | $ | (357 | ) |
| 10-Year Government of Canada Bond | | Long | | 70 | | 12/19/2011 | | | 28 | |
| 10-Year Japan Government Bond | | Long | | 13 | | 12/09/2011 | | | (80 | ) |
| 10-Year U.S. Treasury Note | | Long | | 131 | | 12/20/2011 | | | (27 | ) |
| 30-Year U.S. Treasury Bond | | Long | | 47 | | 12/20/2011 | | | (21 | ) |
| 3-Month Aluminum | | Long | | 14 | | 11/04/2011 | | | (99 | ) |
| 3-Month Aluminum | | Short | | (14) | | 11/04/2011 | | | 101 | |
| 3-Month Aluminum | | Short | | (7) | | 11/08/2011 | | | 41 | |
| 3-Month Aluminum | | Long | | 7 | | 11/08/2011 | | | (41 | ) |
| 3-Month Aluminum | | Long | | 4 | | 11/09/2011 | | | (23 | ) |
| 3-Month Aluminum | | Short | | (4) | | 11/09/2011 | | | 21 | |
| 3-Month Aluminum | | Short | | (2) | | 11/16/2011 | | | 8 | |
| 3-Month Aluminum | | Long | | 2 | | 11/16/2011 | | | (9 | ) |
| 3-Month Aluminum | | Long | | 7 | | 11/18/2011 | | | (27 | ) |
| 3-Month Aluminum | | Short | | (7) | | 11/18/2011 | | | 24 | |
| 3-Month Aluminum | | Long | | 2 | | 11/22/2011 | | | (8 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 199 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FUTURES CONTRACTS (continued): γ
| | | | | | | | | | | |
| | | | | | | | | Net Unrealized | |
| | | | | | | | | Appreciation | |
| | | | | | | | | (Depreciation) | |
| Description | | Type | | Contracts ┌ | | Expiration Date | | (000’s) | |
| |
| 3-Month Aluminum | | Short | | (2) | | 11/22/2011 | | $ | 8 | |
| 3-Month Aluminum | | Long | | 3 | | 11/23/2011 | | | (12 | ) |
| 3-Month Aluminum | | Short | | (3) | | 11/23/2011 | | | 11 | |
| 3-Month Aluminum | | Short | | (3) | | 11/30/2011 | | | 16 | |
| 3-Month Aluminum | | Long | | 3 | | 11/30/2011 | | | (15 | ) |
| 3-Month Aluminum | | Long | | 1 | | 12/08/2011 | | | (5 | ) |
| 3-Month Aluminum | | Short | | (1) | | 12/08/2011 | | | 5 | |
| 3-Month Aluminum | | Long | | 16 | | 12/13/2011 | | | (66 | ) |
| 3-Month Aluminum | | Short | | (16) | | 12/13/2011 | | | 67 | |
| 3-Month Aluminum | | Long | | 7 | | 12/15/2011 | | | (27 | ) |
| 3-Month Aluminum | | Short | | (7) | | 12/15/2011 | | | 26 | |
| 3-Month Aluminum | | Long | | 10 | | 12/20/2011 | | | (34 | ) |
| 3-Month Aluminum | | Short | | (10) | | 12/20/2011 | | | 30 | |
| 3-Month Aluminum | | Long | | 57 | | 12/23/2011 | | | (2 | ) |
| 3-Month Aluminum | | Short | | (57) | | 12/23/2011 | | | 18 | |
| 3-Month Aluminum | | Short | | (2) | | 12/29/2011 | | | w | |
| 3-Month Aluminum | | Long | | 2 | | 12/29/2011 | | | (w | ) |
| 3-Month Aluminum | | Long | | 3 | | 01/13/2012 | | | (w | ) |
| 3-Month Aluminum | | Short | | (3) | | 01/13/2012 | | | 2 | |
| 3-Month Aluminum | | Long | | 10 | | 01/17/2012 | | | (9 | ) |
| 3-Month Aluminum | | Short | | (10) | | 01/17/2012 | | | 10 | |
| 3-Month Aluminum | | Long | | 16 | | 01/20/2012 | | | 31 | |
| 3-Month Aluminum | | Short | | (16) | | 01/20/2012 | | | (22 | ) |
| 3-Month Aluminum | | Short | | (2) | | 01/24/2012 | | | (2 | ) |
| 3-Month Aluminum | | Long | | 2 | | 01/24/2012 | | | 2 | |
| 3-Month Aluminum | | Short | | (18) | | 01/25/2012 | | | 5 | |
| 3-Month Aluminum | | Long | | 18 | | 01/25/2012 | | | (10 | ) |
| 3-Month Aluminum | | Short | | (6) | | 01/26/2012 | | | 3 | |
| 3-Month Aluminum | | Long | | 6 | | 01/26/2012 | | | (4 | ) |
| 3-Month Aluminum | | Long | | 24 | | 01/27/2012 | | | (20 | ) |
| 3-Month Aluminum | | Short | | (24) | | 01/27/2012 | | | 14 | |
| 3-Month Canadian Bankers’ Acceptance | | Long | | 53 | | 03/19/2012 | | | (9 | ) |
| 3-Month Canadian Bankers’ Acceptance | | Long | | 62 | | 06/18/2012 | | | (5 | ) |
| 3-Month Copper | | Short | | (4) | | 11/04/2011 | | | 128 | |
| 3-Month Copper | | Long | | 4 | | 11/04/2011 | | | (126 | ) |
| 3-Month Copper | | Short | | (5) | | 11/08/2011 | | | 124 | |
| 3-Month Copper | | Long | | 5 | | 11/08/2011 | | | (132 | ) |
| 3-Month Copper | | Short | | (3) | | 11/09/2011 | | | 58 | |
| 3-Month Copper | | Long | | 3 | | 11/09/2011 | | | (61 | ) |
| 3-Month Copper | | Long | | 4 | | 11/14/2011 | | | (83 | ) |
| 3-Month Copper | | Short | | (4) | | 11/14/2011 | | | 86 | |
| 3-Month Copper | | Short | | (1) | | 11/16/2011 | | | 20 | |
| 3-Month Copper | | Long | | 1 | | 11/16/2011 | | | (22 | ) |
| 3-Month Copper | | Long | | 1 | | 11/18/2011 | | | (21 | ) |
| 3-Month Copper | | Short | | (1) | | 11/18/2011 | | | 20 | |
| 3-Month Copper | | Long | | 1 | | 11/23/2011 | | | (22 | ) |
| 3-Month Copper | | Short | | (1) | | 11/23/2011 | | | 21 | |
| 3-Month Copper | | Long | | 4 | | 11/25/2011 | | | (102 | ) |
| 3-Month Copper | | Short | | (4) | | 11/25/2011 | | | 106 | |
| 3-Month Copper | | Short | | (1) | | 11/30/2011 | | | 31 | |
| 3-Month Copper | | Long | | 1 | | 11/30/2011 | | | (30 | ) |
| 3-Month Copper | | Short | | (2) | | 12/01/2011 | | | 57 | |
| 3-Month Copper | | Long | | 2 | | 12/01/2011 | | | (58 | ) |
| 3-Month Copper | | Short | | (2) | | 12/08/2011 | | | 52 | |
| 3-Month Copper | | Long | | 2 | | 12/08/2011 | | | (54 | ) |
| 3-Month Copper | | Long | | 9 | | 12/13/2011 | | | (177 | ) |
| 3-Month Copper | | Short | | (9) | | 12/13/2011 | | | 182 | |
| 3-Month Copper | | Short | | (7) | | 12/15/2011 | | | 114 | |
| 3-Month Copper | | Long | | 7 | | 12/15/2011 | | | (120 | ) |
| 3-Month Copper | | Long | | 5 | | 12/16/2011 | | | (97 | ) |
| 3-Month Copper | | Short | | (5) | | 12/16/2011 | | | 99 | |
| 3-Month Copper | | Short | | (17) | | 12/20/2011 | | | 172 | |
| 3-Month Copper | | Long | | 17 | | 12/20/2011 | | | (186 | ) |
| 3-Month Copper | | Short | | (1) | | 12/28/2011 | | | (22 | ) |
| 3-Month Copper | | Long | | 1 | | 12/28/2011 | | | 27 | |
| 3-Month Copper | | Short | | (1) | | 01/17/2012 | | | (10 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 200 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FUTURES CONTRACTS (continued): γ
| | | | | | | | | | | |
| | | | | | | | | Net Unrealized | |
| | | | | | | | | Appreciation | |
| | | | | | | | | (Depreciation) | |
| Description | | Type | | Contracts ┌ | | Expiration Date | | (000’s) | |
| |
| 3-Month Copper | | Long | | 1 | | 01/17/2012 | | $ | 9 | |
| 3-Month Copper | | Long | | 2 | | 01/20/2012 | | | 51 | |
| 3-Month Copper | | Short | | (2) | | 01/20/2012 | | | (51 | ) |
| 3-Month Copper | | Long | | 4 | | 01/25/2012 | | | 29 | |
| 3-Month Copper | | Short | | (4) | | 01/25/2012 | | | (33 | ) |
| 3-Month Copper | | Long | | 9 | | 01/27/2012 | | | 1 | |
| 3-Month Copper | | Short | | (9) | | 01/27/2012 | | | 11 | |
| 3-Month EURIBOR | | Long | | 71 | | 03/19/2012 | | | (17 | ) |
| 3-Month EURIBOR | | Long | | 74 | | 06/18/2012 | | | (15 | ) |
| 3-Month EURIBOR | | Long | | 80 | | 09/17/2012 | | | (15 | ) |
| 3-Month EURIBOR | | Long | | 82 | | 12/17/2012 | | | (15 | ) |
| 3-Month EURIBOR | | Long | | 80 | | 03/18/2013 | | | (3 | ) |
| 3-Month EURIBOR | | Long | | 79 | | 06/17/2013 | | | (1 | ) |
| 3-Month EURIBOR | | Long | | 78 | | 09/16/2013 | | | 6 | |
| 3-Month Euroswiss | | Long | | 72 | | 03/19/2012 | | | 6 | |
| 3-Month Euroswiss | | Long | | 69 | | 06/18/2012 | | | (13 | ) |
| 3-Month Nickel | | Long | | 1 | | 11/02/2011 | | | (30 | ) |
| 3-Month Nickel | | Short | | (1) | | 11/02/2011 | | | 30 | |
| 3-Month Nickel | | Short | | (1) | | 11/08/2011 | | | 16 | |
| 3-Month Nickel | | Long | | 1 | | 11/08/2011 | | | (17 | ) |
| 3-Month Nickel | | Long | | 3 | | 11/09/2011 | | | (37 | ) |
| 3-Month Nickel | | Short | | (3) | | 11/09/2011 | | | 34 | |
| 3-Month Nickel | | Long | | 1 | | 11/10/2011 | | | (15 | ) |
| 3-Month Nickel | | Short | | (1) | | 11/10/2011 | | | 13 | |
| 3-Month Nickel | | Short | | (1) | | 11/14/2011 | | | 12 | |
| 3-Month Nickel | | Long | | 1 | | 11/14/2011 | | | (10 | ) |
| 3-Month Nickel | | Long | | 1 | | 11/23/2011 | | | (9 | ) |
| 3-Month Nickel | | Short | | (1) | | 11/23/2011 | | | 9 | |
| 3-Month Nickel | | Short | | (3) | | 11/25/2011 | | | 25 | |
| 3-Month Nickel | | Long | | 3 | | 11/25/2011 | | | (27 | ) |
| 3-Month Nickel | | Short | | (10) | | 12/16/2011 | | | 139 | |
| 3-Month Nickel | | Long | | 10 | | 12/16/2011 | | | (140 | ) |
| 3-Month Nickel | | Long | | 8 | | 12/23/2011 | | | 80 | |
| 3-Month Nickel | | Short | | (8) | | 12/23/2011 | | | (84 | ) |
| 3-Month Nickel | | Short | | (20) | | 12/28/2011 | | | (173 | ) |
| 3-Month Nickel | | Long | | 20 | | 12/28/2011 | | | 153 | |
| 3-Month Nickel | | Long | | 1 | | 01/24/2012 | | | 4 | |
| 3-Month Nickel | | Short | | (1) | | 01/24/2012 | | | (3 | ) |
| 3-Month Sterling | | Short | | (111) | | 03/21/2012 | | | (13 | ) |
| 3-Month Sterling | | Short | | (15) | | 06/20/2012 | | | (2 | ) |
| 3-Month Sterling | | Long | | 67 | | 09/19/2012 | | | (9 | ) |
| 3-Month Sterling | | Long | | 102 | | 12/19/2012 | | | (25 | ) |
| 3-Month Sterling | | Long | | 115 | | 03/20/2013 | | | (31 | ) |
| 3-Month Sterling | | Long | | 125 | | 06/19/2013 | | | (30 | ) |
| 3-Month Sterling | | Long | | 138 | | 09/18/2013 | | | (23 | ) |
| 3-Month Zinc | | Short | | (2) | | 11/04/2011 | | | 13 | |
| 3-Month Zinc | | Long | | 2 | | 11/04/2011 | | | (14 | ) |
| 3-Month Zinc | | Long | | 16 | | 11/08/2011 | | | (71 | ) |
| 3-Month Zinc | | Short | | (16) | | 11/08/2011 | | | 75 | |
| 3-Month Zinc | | Long | | 16 | | 11/09/2011 | | | (59 | ) |
| 3-Month Zinc | | Short | | (16) | | 11/09/2011 | | | 49 | |
| 3-Month Zinc | | Short | | (16) | | 11/10/2011 | | | 66 | |
| 3-Month Zinc | | Long | | 16 | | 11/10/2011 | | | (75 | ) |
| 3-Month Zinc | | Long | | 21 | | 11/14/2011 | | | (94 | ) |
| 3-Month Zinc | | Short | | (21) | | 11/14/2011 | | | 96 | |
| 3-Month Zinc | | Long | | 14 | | 11/22/2011 | | | (62 | ) |
| 3-Month Zinc | | Short | | (14) | | 11/22/2011 | | | 64 | |
| 3-Month Zinc | | Short | | (28) | | 12/20/2011 | | | 82 | |
| 3-Month Zinc | | Long | | 28 | | 12/20/2011 | | | (86 | ) |
| 3-Month Zinc | | Short | | (24) | | 12/23/2011 | | | (29 | ) |
| 3-Month Zinc | | Long | | 24 | | 12/23/2011 | | | 23 | |
| 3-Month Zinc | | Long | | 15 | | 12/28/2011 | | | 27 | |
| 3-Month Zinc | | Short | | (15) | | 12/28/2011 | | | (29 | ) |
| 3-Month Zinc | | Short | | (4) | | 01/12/2012 | | | (6 | ) |
| 3-Month Zinc | | Long | | 4 | | 01/12/2012 | | | 4 | |
| 3-Month Zinc | | Short | | (9) | | 01/13/2012 | | | (14 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 201 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FUTURES CONTRACTS (continued): γ
| | | | | | | | | | | |
| | | | | | | | | Net Unrealized | |
| | | | | | | | | Appreciation | |
| | | | | | | | | (Depreciation) | |
| Description | | Type | | Contracts ┌ | | Expiration Date | | (000’s) | |
| |
| 3-Month Zinc | | Long | | 9 | | 01/13/2012 | | $ | 16 | |
| 3-Month Zinc | | Short | | (3) | | 01/17/2012 | | | (4 | ) |
| 3-Month Zinc | | Long | | 3 | | 01/17/2012 | | | 4 | |
| 3-Year Australian Treasury Bond | | Long | | 223 | | 12/15/2011 | | | (305 | ) |
| 5-Year U.S. Treasury Note | | Long | | 241 | | 12/30/2011 | | | 3 | |
| 90-Day Euro | | Short | | (39) | | 03/19/2012 | | | (7 | ) |
| 90-Day Euro | | Short | | (25) | | 06/18/2012 | | | (6 | ) |
| 90-Day Euro | | Long | | 41 | | 09/17/2012 | | | 5 | |
| 90-Day Euro | | Long | | 102 | | 12/17/2012 | | | (10 | ) |
| 90-Day Euro | | Long | | 122 | | 03/18/2013 | | | (8 | ) |
| 90-Day Euro | | Long | | 133 | | 06/17/2013 | | | 4 | |
| 90-Day Euro | | Long | | 141 | | 09/16/2013 | | | 8 | |
| AEX Index | | Short | | (9) | | 11/18/2011 | | | (22 | ) |
| Aluminum Hg | | Long | | 50 | | 12/21/2011 | | | (24 | ) |
| Aluminum Hg | | Short | | (145) | | 12/21/2011 | | | 185 | |
| ASX SPI 200 Index | | Long | | 5 | | 12/15/2011 | | | (16 | ) |
| Brent Crude Oil Penultimate Financial | | Long | | 29 | | 11/14/2011 | | | (41 | ) |
| Cocoa | | Short | | (286) | | 12/14/2011 | | | 16 | |
| Coffee “C” | | Long | | 7 | | 12/19/2011 | | | (56 | ) |
| Copper LME | | Short | | (40) | | 12/21/2011 | | | 426 | |
| Copper LME | | Long | | 30 | | 12/21/2011 | | | (337 | ) |
| Corn | | Long | | 21 | | 12/14/2011 | | | (2 | ) |
| Cotton No. 2 | | Long | | 15 | | 12/07/2011 | | | (11 | ) |
| DAX Index | | Short | | (12) | | 12/16/2011 | | | (203 | ) |
| DJIA Mini Index | | Long | | 84 | | 12/16/2011 | | | (40 | ) |
| European Gasoil (ICE) | | Long | | 48 | | 11/09/2011 | | | 41 | |
| FTSE 100 Index | | Long | | 29 | | 12/16/2011 | | | (72 | ) |
| FTSE JSE Top 40 Index | | Long | | 149 | | 12/15/2011 | | | 66 | |
| FTSE MIB Index | | Short | | (11) | | 12/16/2011 | | | (208 | ) |
| German Euro BOBL | | Long | | 93 | | 12/08/2011 | | | 111 | |
| German Euro BUND | | Long | | 71 | | 12/08/2011 | | | 59 | |
| German Euro BUXL | | Long | | 25 | | 12/08/2011 | | | (32 | ) |
| German Euro SCHATZ | | Long | | 232 | | 12/08/2011 | | | 54 | |
| Gold 100 Oz. | | Long | | 20 | | 12/28/2011 | | | 103 | |
| Hang Seng China Enterprises Index | | Short | | (45) | | 11/29/2011 | | | (122 | ) |
| Hang Seng Index | | Short | | (35) | | 11/29/2011 | | | (147 | ) |
| Henry Hub Natural Gas Swap | | Short | | (775) | | 11/28/2011 | | | (157 | ) |
| IBEX 35 Index | | Short | | (9) | | 11/18/2011 | | | (26 | ) |
| KOSPI 200 Index | | Short | | (4) | | 12/08/2011 | | | (21 | ) |
| Lean Hogs | | Long | | 24 | | 12/14/2011 | | | (16 | ) |
| MSCI Taiwan Index | | Short | | (48) | | 11/29/2011 | | | (7 | ) |
| NASDAQ 100 E-Mini Index | | Long | | 107 | | 12/16/2011 | | | (24 | ) |
| Nickel | | Short | | (39) | | 12/21/2011 | | | (141 | ) |
| Nickel | | Long | | 10 | | 12/21/2011 | | | (139 | ) |
| Nymex Heating Oil Pent | | Long | | 36 | | 11/29/2011 | | | 31 | |
| RBOB Gasoline Finance | | Long | | 33 | | 11/29/2011 | | | (144 | ) |
| Russell 2000 Mini Index | | Long | | 24 | | 12/16/2011 | | | (57 | ) |
| S&P 500 E-Mini Index | | Long | | 66 | | 12/16/2011 | | | (77 | ) |
| S&P Midcap 400 E-Mini | | Long | | 31 | | 12/16/2011 | | | (44 | ) |
| S&P TSE 60 Index | | Short | | (1) | | 12/15/2011 | | | (5 | ) |
| SGX CNX Nifty Index | | Short | | (264) | | 11/24/2011 | | | (106 | ) |
| SGX MSCI Singapore Index | | Short | | (60) | | 11/29/2011 | | | (78 | ) |
| Silver | | Long | | 2 | | 12/28/2011 | | | 7 | |
| Soybean | | Short | | (77) | | 01/13/2012 | | | (6 | ) |
| Soybean Meal | | Short | | (197) | | 12/14/2011 | | | (27 | ) |
| Soybean Oil | | Short | | (151) | | 12/14/2011 | | | (10 | ) |
| Sugar # 11 | | Long | | 55 | | 02/29/2012 | | | (140 | ) |
| TOPIX Index | | Short | | (34) | | 12/09/2011 | | | (52 | ) |
| U.K. Long Gilt Bond | | Long | | 61 | | 12/28/2011 | | | 103 | |
| Wheat | | Short | | (127) | | 12/14/2011 | | | 365 | |
| WTI Bullet Swap Financial | | Long | | 2 | | 11/17/2011 | | | 1 | |
| Zinc | | Short | | (99) | | 12/21/2011 | | | 53 | |
| | | | | | | | | | |
| | | | | | | | | $ | (2,031 | ) |
| | | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 202 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000’s) | | | Settlement Date | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | RBS | | | 1,213 | | | 12/21/2011 | | $ | 1,225 | | | $ | 45 | |
| Australian Dollar | | RBS | | | (1,165 | ) | | 12/21/2011 | | | (1,220 | ) | | | (w | ) |
| Australian Dollar | | RBS | | | (80 | ) | | 12/21/2011 | | | (84 | ) | | | 1 | |
| Australian Dollar | | RBS | | | 2,929 | | | 12/21/2011 | | | 3,109 | | | | (41 | ) |
| Australian Dollar | | RBS | | | (15,199 | ) | | 12/21/2011 | | | (15,504 | ) | | | (413 | ) |
| Australian Dollar | | RBS | | | 421 | | | 12/21/2011 | | | 405 | | | | 35 | |
| Australian Dollar | | RBS | | | 1,365 | | | 12/21/2011 | | | 1,336 | | | | 93 | |
| Australian Dollar | | RBS | | | 3,024 | | | 12/21/2011 | | | 3,132 | | | | 35 | |
| Australian Dollar | | RBS | | | 2,294 | | | 12/21/2011 | | | 2,355 | | | | 48 | |
| Australian Dollar | | RBS | | | 7,445 | | | 12/21/2011 | | | 7,789 | | | | 8 | |
| Australian Dollar | | RBS | | | (7,772 | ) | | 12/21/2011 | | | (7,858 | ) | | | (282 | ) |
| Australian Dollar | | RBS | | | 4,978 | | | 12/21/2011 | | | 5,172 | | | | 41 | |
| Australian Dollar | | RBS | | | 5,672 | | | 12/21/2011 | | | 5,781 | | | | 159 | |
| Australian Dollar | | RBS | | | 7,902 | | | 12/21/2011 | | | 7,962 | | | | 313 | |
| Australian Dollar | | RBS | | | 4,689 | | | 12/21/2011 | | | 4,641 | | | | 270 | |
| Australian Dollar | | RBS | | | 11,306 | | | 12/21/2011 | | | 11,581 | | | | 259 | |
| Australian Dollar | | RBS | | | 120 | | | 12/21/2011 | | | 121 | | | | 5 | |
| Australian Dollar | | RBS | | | 1,276 | | | 12/21/2011 | | | 1,306 | | | | 30 | |
| Australian Dollar | | RBS | | | 13,016 | | | 12/21/2011 | | | 13,599 | | | | 31 | |
| Australian Dollar | | RBS | | | (13,130 | ) | | 12/21/2011 | | | (13,318 | ) | | | (432 | ) |
| Australian Dollar | | RBS | | | (1,151 | ) | | 12/21/2011 | | | (1,116 | ) | | | (89 | ) |
| Brazilian Real | | RBS | | | (1,300 | ) | | 12/21/2011 | | | (665 | ) | | | (83 | ) |
| Brazilian Real | | RBS | | | 800 | | | 12/21/2011 | | | 451 | | | | 9 | |
| Brazilian Real | | RBS | | | (560 | ) | | 12/21/2011 | | | (325 | ) | | | 2 | |
| Brazilian Real | | RBS | | | (1,030 | ) | | 12/21/2011 | | | (592 | ) | | | (1 | ) |
| Brazilian Real | | RBS | | | 870 | | | 12/21/2011 | | | 508 | | | | (7 | ) |
| Brazilian Real | | RBS | | | 500 | | | 12/21/2011 | | | 290 | | | | (2 | ) |
| Brazilian Real | | RBS | | | 300 | | | 12/21/2011 | | | 163 | | | | 10 | |
| Brazilian Real | | RBS | | | (370 | ) | | 12/21/2011 | | | (218 | ) | | | 5 | |
| Brazilian Real | | RBS | | | (200 | ) | | 12/21/2011 | | | (110 | ) | | | (5 | ) |
| Brazilian Real | | RBS | | | (510 | ) | | 12/21/2011 | | | (291 | ) | | | (2 | ) |
| Brazilian Real | | RBS | | | 300 | | | 12/21/2011 | | | 169 | | | | 4 | |
| Brazilian Real | | RBS | | | 300 | | | 12/21/2011 | | | 167 | | | | 6 | |
| Brazilian Real | | RBS | | | (1,550 | ) | | 12/21/2011 | | | (921 | ) | | | 29 | |
| Brazilian Real | | RBS | | | 2,290 | | | 12/21/2011 | | | 1,328 | | | | (10 | ) |
| Brazilian Real | | RBS | | | 700 | | | 12/21/2011 | | | 388 | | | | 15 | |
| Brazilian Real | | RBS | | | (430 | ) | | 12/21/2011 | | | (248 | ) | | | 1 | |
| Canadian Dollar | | RBS | | | 4,646 | | | 12/21/2011 | | | 4,631 | | | | 25 | |
| Canadian Dollar | | RBS | | | 39 | | | 12/21/2011 | | | 39 | | | | w | |
| Canadian Dollar | | RBS | | | (2,827 | ) | | 12/21/2011 | | | (2,835 | ) | | | 2 | |
| Canadian Dollar | | RBS | | | 3,624 | | | 12/21/2011 | | | 3,664 | | | | (32 | ) |
| Canadian Dollar | | RBS | | | (3,314 | ) | | 12/21/2011 | | | (3,268 | ) | | | (53 | ) |
| Canadian Dollar | | RBS | | | 1,801 | | | 12/21/2011 | | | 1,813 | | | | (8 | ) |
| Canadian Dollar | | RBS | | | 4,749 | | | 12/21/2011 | | | 4,803 | | | | (44 | ) |
| Canadian Dollar | | RBS | | | 25 | | | 12/21/2011 | | | 24 | | | | 1 | |
| Canadian Dollar | | RBS | | | (2,192 | ) | | 12/21/2011 | | | (2,208 | ) | | | 12 | |
| Canadian Dollar | | RBS | | | (9,138 | ) | | 12/21/2011 | | | (9,149 | ) | | | (8 | ) |
| Canadian Dollar | | RBS | | | (4,455 | ) | | 12/21/2011 | | | (4,305 | ) | | | (160 | ) |
| Canadian Dollar | | RBS | | | (1,019 | ) | | 12/21/2011 | | | (991 | ) | | | (30 | ) |
| Canadian Dollar | | RBS | | | 5,326 | | | 12/21/2011 | | | 5,411 | | | | (74 | ) |
| Canadian Dollar | | RBS | | | (4,318 | ) | | 12/21/2011 | | | (4,179 | ) | | | (148 | ) |
| Canadian Dollar | | RBS | | | 6,318 | | | 12/21/2011 | | | 6,366 | | | | (35 | ) |
| Canadian Dollar | | RBS | | | 7,374 | | | 12/21/2011 | | | 7,441 | | | | (52 | ) |
| Canadian Dollar | | RBS | | | (19,980 | ) | | 12/21/2011 | | | (19,403 | ) | | | (618 | ) |
| Chilean Peso | | RBS | | | (80,000 | ) | | 12/21/2011 | | | (152 | ) | | | (10 | ) |
| Chilean Peso | | RBS | | | 60,000 | | | 12/21/2011 | | | 122 | | | | w | |
| Chilean Peso | | RBS | | | 290,000 | | | 12/21/2011 | | | 613 | | | | (25 | ) |
| Chilean Peso | | RBS | | | (460,000 | ) | | 12/21/2011 | | | (868 | ) | | | (66 | ) |
| Chilean Peso | | RBS | | | (40,000 | ) | | 12/21/2011 | | | (78 | ) | | | (3 | ) |
| Chilean Peso | | RBS | | | 30,000 | | | 12/21/2011 | | | 61 | | | | w | |
| Colombian Peso | | RBS | | | (620,000 | ) | | 12/21/2011 | | | (338 | ) | | | 6 | |
| Colombian Peso | | RBS | | | (800,000 | ) | | 12/21/2011 | | | (428 | ) | | | (1 | ) |
| Colombian Peso | | RBS | | | (130,000 | ) | | 12/21/2011 | | | (71 | ) | | | 1 | |
| Colombian Peso | | RBS | | | (1,000,000 | ) | | 12/21/2011 | | | (514 | ) | | | (22 | ) |
| Colombian Peso | | RBS | | | 370,000 | | | 12/21/2011 | | | 205 | | | | (7 | ) |
| Czech Republic Koruna | | RBS | | | (10,000 | ) | | 12/21/2011 | | | (550 | ) | | | (7 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 203 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000’s) | | | Settlement Date | | (000’s) | | | (000’s) | |
| |
| Czech Republic Koruna | | RBS | | | (3,000 | ) | | 12/21/2011 | | $ | (167 | ) | | $ | (w | ) |
| Czech Republic Koruna | | RBS | | | (38,000 | ) | | 12/21/2011 | | | (2,062 | ) | | | (53 | ) |
| Czech Republic Koruna | | RBS | | | (12,500 | ) | | 12/21/2011 | | | (694 | ) | | | (1 | ) |
| Czech Republic Koruna | | RBS | | | (2,700 | ) | | 12/21/2011 | | | (151 | ) | | | 1 | |
| Czech Republic Koruna | | RBS | | | 16,000 | | | 12/21/2011 | | | 892 | | | | (2 | ) |
| Czech Republic Koruna | | RBS | | | 10,000 | | | 12/21/2011 | | | 555 | | | | 2 | |
| Czech Republic Koruna | | RBS | | | 25,000 | | | 12/21/2011 | | | 1,436 | | | | (45 | ) |
| Czech Republic Koruna | | RBS | | | (10,000 | ) | | 12/21/2011 | | | (529 | ) | | | (27 | ) |
| Czech Republic Koruna | | RBS | | | (21,000 | ) | | 12/21/2011 | | | (1,166 | ) | | | (3 | ) |
| Czech Republic Koruna | | RBS | | | (60,500 | ) | | 12/21/2011 | | | (3,476 | ) | | | 109 | |
| Czech Republic Koruna | | RBS | | | 7,800 | | | 12/21/2011 | | | 438 | | | | (4 | ) |
| Czech Republic Koruna | | RBS | | | 17,000 | | | 12/21/2011 | | | 933 | | | | 13 | |
| Czech Republic Koruna | | RBS | | | 109,000 | | | 12/21/2011 | | | 6,064 | | | | 3 | |
| Czech Republic Koruna | | RBS | | | (50,000 | ) | | 12/21/2011 | | | (2,701 | ) | | | (82 | ) |
| Czech Republic Koruna | | RBS | | | 10,000 | | | 12/21/2011 | | | 554 | | | | 3 | |
| Czech Republic Koruna | | RBS | | | 3,000 | | | 12/21/2011 | | | 168 | | | | (1 | ) |
| Czech Republic Koruna | | RBS | | | (52,100 | ) | | 12/21/2011 | | | (2,993 | ) | | | 93 | |
| Euro | | RBS | | | (5,318 | ) | | 12/21/2011 | | | (7,239 | ) | | | (117 | ) |
| Euro | | RBS | | | (10,447 | ) | | 12/21/2011 | | | (14,320 | ) | | | (129 | ) |
| Euro | | RBS | | | 5,178 | | | 12/21/2011 | | | 7,067 | | | | 95 | |
| Euro | | RBS | | | (3,470 | ) | | 12/21/2011 | | | (4,653 | ) | | | (146 | ) |
| Euro | | RBS | | | 323 | | | 12/21/2011 | | | 435 | | | | 12 | |
| Euro | | RBS | | | (16,274 | ) | | 12/21/2011 | | | (22,147 | ) | | | (361 | ) |
| Euro | | RBS | | | (2,147 | ) | | 12/21/2011 | | | (2,904 | ) | | | (66 | ) |
| Euro | | RBS | | | (6,486 | ) | | 12/21/2011 | | | (9,022 | ) | | | 51 | |
| Euro | | RBS | | | 643 | | | 12/21/2011 | | | 911 | | | | (22 | ) |
| Euro | | RBS | | | (8,695 | ) | | 12/21/2011 | | | (12,068 | ) | | | 42 | |
| Euro | | RBS | | | 36,182 | | | 12/21/2011 | | | 48,848 | | | | 1,195 | |
| Euro | | RBS | | | (6,505 | ) | | 12/21/2011 | | | (8,839 | ) | | | (158 | ) |
| Euro | | RBS | | | (1,320 | ) | | 12/21/2011 | | | (1,839 | ) | | | 13 | |
| Euro | | RBS | | | (3,178 | ) | | 12/21/2011 | | | (4,182 | ) | | | (214 | ) |
| Euro | | RBS | | | 15,490 | | | 12/21/2011 | | | 21,089 | | | | 335 | |
| Euro | | RBS | | | (32,063 | ) | | 12/21/2011 | | | (45,057 | ) | | | 710 | |
| Euro | | RBS | | | (4,840 | ) | | 12/21/2011 | | | (6,622 | ) | | | (72 | ) |
| Euro | | RBS | | | 2,477 | | | 12/21/2011 | | | 3,449 | | | | (23 | ) |
| Euro | | RBS | | | 323 | | | 12/21/2011 | | | 449 | | | | (3 | ) |
| Euro | | RBS | | | 1,690 | | | 12/21/2011 | | | 2,289 | | | | 49 | |
| Euro | | RBS | | | (1,580 | ) | | 12/21/2011 | | | (2,142 | ) | | | (43 | ) |
| Euro | | RBS | | | 6,107 | | | 12/21/2011 | | | 8,424 | | | | 22 | |
| Euro | | RBS | | | (4,987 | ) | | 12/21/2011 | | | (7,018 | ) | | | 120 | |
| Euro | | RBS | | | 5,860 | | | 12/21/2011 | | | 8,158 | | | | (52 | ) |
| Euro | | RBS | | | 790 | | | 12/21/2011 | | | 1,076 | | | | 16 | |
| Euro | | RBS | | | 2,890 | | | 12/21/2011 | | | 3,948 | | | | 50 | |
| Euro | | RBS | | | 2,745 | | | 12/21/2011 | | | 3,805 | | | | (9 | ) |
| Euro | | RBS | | | 15,807 | | | 12/21/2011 | | | 21,703 | | | | 160 | |
| Euro | | RBS | | | 340 | | | 12/21/2011 | | | 464 | | | | 6 | |
| Euro | | RBS | | | (1,250 | ) | | 12/21/2011 | | | (1,666 | ) | | | (63 | ) |
| Hungarian Forint | | RBS | | | (120,000 | ) | | 12/21/2011 | | | (569 | ) | | | 27 | |
| Hungarian Forint | | RBS | | | (50,000 | ) | | 12/21/2011 | | | (228 | ) | | | 2 | |
| Hungarian Forint | | RBS | | | (110,000 | ) | | 12/21/2011 | | | (510 | ) | | | 14 | |
| Hungarian Forint | | RBS | | | 378,000 | | | 12/21/2011 | | | 1,803 | | | | (97 | ) |
| Hungarian Forint | | RBS | | | (40,000 | ) | | 12/21/2011 | | | (187 | ) | | | 6 | |
| Hungarian Forint | | RBS | | | (270,000 | ) | | 12/21/2011 | | | (1,236 | ) | | | 18 | |
| Hungarian Forint | | RBS | | | (40,000 | ) | | 12/21/2011 | | | (190 | ) | | | 10 | |
| Hungarian Forint | | RBS | | | (40,000 | ) | | 12/21/2011 | | | (182 | ) | | | 2 | |
| Hungarian Forint | | RBS | | | (90,000 | ) | | 12/21/2011 | | | (410 | ) | | | 4 | |
| Hungarian Forint | | RBS | | | (60,000 | ) | | 12/21/2011 | | | (279 | ) | | | 8 | |
| Hungarian Forint | | RBS | | | (70,000 | ) | | 12/21/2011 | | | (329 | ) | | | 13 | |
| Hungarian Forint | | RBS | | | (10,000 | ) | | 12/21/2011 | | | (47 | ) | | | 1 | |
| Indian Rupee | | RBS | | | (110,000 | ) | | 12/21/2011 | | | (2,262 | ) | | | 24 | |
| Indian Rupee | | RBS | | | 111,000 | | | 12/21/2011 | | | 2,212 | | | | 47 | |
| Indian Rupee | | RBS | | | (55,000 | ) | | 12/21/2011 | | | (1,137 | ) | | | 18 | |
| Indian Rupee | | RBS | | | (30,000 | ) | | 12/21/2011 | | | (596 | ) | | | (14 | ) |
| Indian Rupee | | RBS | | | 1,000 | | | 12/21/2011 | | | 21 | | | | (1 | ) |
| Indian Rupee | | RBS | | | (23,000 | ) | | 12/21/2011 | | | (458 | ) | | | (10 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 204 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011 FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000's) | | | Settlement Date | | (000's) | | | (000's) | |
| |
| Indian Rupee | | RBS | | | (5,000 | ) | | 12/21/2011 | | $ | (102 | ) | | $ | w | |
| Indian Rupee | | RBS | | | 1,000 | | | 12/21/2011 | | | 20 | | | | w | |
| Indian Rupee | | RBS | | | 30,000 | | | 12/21/2011 | | | 629 | | | | (18 | ) |
| Indian Rupee | | RBS | | | (90,000 | ) | | 12/21/2011 | | | (1,815 | ) | | | (17 | ) |
| Indian Rupee | | RBS | | | (52,000 | ) | | 12/21/2011 | | | (1,045 | ) | | | (14 | ) |
| Indian Rupee | | RBS | | | (31,000 | ) | | 12/21/2011 | | | (622 | ) | | | (9 | ) |
| Indian Rupee | | RBS | | | 12,000 | | | 12/21/2011 | | | 244 | | | | w | |
| Indian Rupee | | RBS | | | 51,000 | | | 12/21/2011 | | | 1,015 | | | | 23 | |
| Indian Rupee | | RBS | | | (113,000 | ) | | 12/21/2011 | | | (2,370 | ) | | | 70 | |
| Indian Rupee | | RBS | | | (29,000 | ) | | 12/21/2011 | | | (587 | ) | | | (3 | ) |
| Indian Rupee | | RBS | | | (44,000 | ) | | 12/21/2011 | | | (890 | ) | | | (6 | ) |
| Indian Rupee | | RBS | | | (74,000 | ) | | 12/21/2011 | | | (1,467 | ) | | | (39 | ) |
| Indian Rupee | | RBS | | | (71,000 | ) | | 12/21/2011 | | | (1,439 | ) | | | (6 | ) |
| Indian Rupee | | RBS | | | 99,000 | | | 12/21/2011 | | | 2,015 | | | | (w | ) |
| Indian Rupee | | RBS | | | (26,000 | ) | | 12/21/2011 | | | (546 | ) | | | 17 | |
| Indonesian Rupiah | | RBS | | | 800,000 | | | 12/21/2011 | | | 90 | | | | (w | ) |
| Indonesian Rupiah | | RBS | | | (200,000 | ) | | 12/21/2011 | | | (21 | ) | | | (1 | ) |
| Indonesian Rupiah | | RBS | | | 1,200,000 | | | 12/21/2011 | | | 135 | | | | (1 | ) |
| Indonesian Rupiah | | RBS | | | 24,700,000 | | | 12/21/2011 | | | 2,833 | | | | (57 | ) |
| Indonesian Rupiah | | RBS | | | (3,900,000 | ) | | 12/21/2011 | | | (403 | ) | | | (35 | ) |
| Indonesian Rupiah | | RBS | | | (4,200,000 | ) | | 12/21/2011 | | | (452 | ) | | | (20 | ) |
| Indonesian Rupiah | | RBS | | | (14,700,000 | ) | | 12/21/2011 | | | (1,630 | ) | | | (22 | ) |
| Israeli Shekel | | RBS | | | (1,800 | ) | | 12/21/2011 | | | (484 | ) | | | (11 | ) |
| Israeli Shekel | | RBS | | | (400 | ) | | 12/21/2011 | | | (107 | ) | | | (3 | ) |
| Israeli Shekel | | RBS | | | 1,200 | | | 12/21/2011 | | | 332 | | | | (1 | ) |
| Israeli Shekel | | RBS | | | (1,700 | ) | | 12/21/2011 | | | (460 | ) | | | (8 | ) |
| Israeli Shekel | | RBS | | | 1,700 | | | 12/21/2011 | | | 464 | | | | 4 | |
| Israeli Shekel | | RBS | | | 600 | | | 12/21/2011 | | | 166 | | | | (1 | ) |
| Israeli Shekel | | RBS | | | (300 | ) | | 12/21/2011 | | | (81 | ) | | | (2 | ) |
| Israeli Shekel | | RBS | | | (100 | ) | | 12/21/2011 | | | (27 | ) | | | (w | ) |
| Israeli Shekel | | RBS | | | (700 | ) | | 12/21/2011 | | | (189 | ) | | | (4 | ) |
| Israeli Shekel | | RBS | | | (1,100 | ) | | 12/21/2011 | | | (295 | ) | | | (8 | ) |
| Japanese Yen | | RBS | | | (81,116 | ) | | 12/21/2011 | | | (1,059 | ) | | | 21 | |
| Japanese Yen | | RBS | | | (695,276 | ) | | 12/21/2011 | | | (9,021 | ) | | | 118 | |
| Japanese Yen | | RBS | | | (104,000 | ) | | 12/21/2011 | | | (1,357 | ) | | | 26 | |
| Japanese Yen | | RBS | | | (448,655 | ) | | 12/21/2011 | | | (5,881 | ) | | | 136 | |
| Japanese Yen | | RBS | | | (103,000 | ) | | 12/21/2011 | | | (1,321 | ) | | | 2 | |
| Japanese Yen | | RBS | | | (715,739 | ) | | 12/21/2011 | | | (9,241 | ) | | | 76 | |
| Japanese Yen | | RBS | | | (187,000 | ) | | 12/21/2011 | | | (2,439 | ) | | | 45 | |
| Japanese Yen | | RBS | | | 2,542,745 | | | 12/21/2011 | | | 33,037 | | | | (478 | ) |
| Japanese Yen | | RBS | | | 716,919 | | | 12/21/2011 | | | 9,283 | | | | (103 | ) |
| Japanese Yen | | RBS | | | 329,870 | | | 12/21/2011 | | | 4,308 | | | | (84 | ) |
| Japanese Yen | | RBS | | | (812,324 | ) | | 12/21/2011 | | | (10,568 | ) | | | 166 | |
| Japanese Yen | | RBS | | | 763,752 | | | 12/21/2011 | | | 9,949 | | | | (170 | ) |
| Japanese Yen | | RBS | | | (203,000 | ) | | 12/21/2011 | | | (2,636 | ) | | | 36 | |
| Japanese Yen | | RBS | | | (287,000 | ) | | 12/21/2011 | | | (3,707 | ) | | | 32 | |
| Japanese Yen | | RBS | | | (1,266,728 | ) | | 12/21/2011 | | | (16,712 | ) | | | 491 | |
| Japanese Yen | | RBS | | | (352,143 | ) | | 12/21/2011 | | | (4,612 | ) | | | 103 | |
| Japanese Yen | | RBS | | | 926,886 | | | 12/21/2011 | | | 11,971 | | | | (102 | ) |
| Japanese Yen | | RBS | | | 37,000 | | | 12/21/2011 | | | 482 | | | | (8 | ) |
| Japanese Yen | | RBS | | | (307,635 | ) | | 12/21/2011 | | | (4,041 | ) | | | 102 | |
| Japanese Yen | | RBS | | | 499,394 | | | 12/21/2011 | | | 6,512 | | | | (117 | ) |
| Japanese Yen | | RBS | | | 100,703 | | | 12/21/2011 | | | 1,311 | | | | (22 | ) |
| Japanese Yen | | RBS | | | 1,339,713 | | | 12/21/2011 | | | 17,522 | | | | (367 | ) |
| Japanese Yen | | RBS | | | 756,652 | | | 12/21/2011 | | | 9,936 | | | | (247 | ) |
| Japanese Yen | | RBS | | | 376,777 | | | 12/21/2011 | | | 4,924 | | | | (99 | ) |
| Japanese Yen | | RBS | | | (558,937 | ) | | 12/21/2011 | | | (7,316 | ) | | | 159 | |
| Japanese Yen | | RBS | | | 228,543 | | | 12/21/2011 | | | 3,006 | | | | (80 | ) |
| Japanese Yen | | RBS | | | (863,555 | ) | | 12/21/2011 | | | (11,192 | ) | | | 134 | |
| Japanese Yen | | RBS | | | 395,114 | | | 12/21/2011 | | | 5,154 | | | | (95 | ) |
| Japanese Yen | | RBS | | | 735,982 | | | 12/21/2011 | | | 9,606 | | | | (182 | ) |
| Malaysian Ringgit | | RBS | | | 800 | | | 12/21/2011 | | | 254 | | | | 6 | |
| Malaysian Ringgit | | RBS | | | 600 | | | 12/21/2011 | | | 200 | | | | (5 | ) |
| Malaysian Ringgit | | RBS | | | (2,700 | ) | | 12/21/2011 | | | (858 | ) | | | (20 | ) |
The notes to the financial statements are an integral part of this report.
| | | | | |
| Transamerica Funds | | Page 205 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011 FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000's) | | | Settlement Date | | (000's) | | | (000's) | |
| |
| Malaysian Ringgit | | RBS | | | 9,000 | | | 12/21/2011 | | $ | 2,944 | | | $ | (19 | ) |
| Malaysian Ringgit | | RBS | | | 1,000 | | | 12/21/2011 | | | 324 | | | | 1 | |
| Malaysian Ringgit | | RBS | | | (400 | ) | | 12/21/2011 | | | (126 | ) | | | (4 | ) |
| Malaysian Ringgit | | RBS | | | (200 | ) | | 12/21/2011 | | | (64 | ) | | | (1 | ) |
| Malaysian Ringgit | | RBS | | | 1,900 | | | 12/21/2011 | | | 616 | | | | 2 | |
| Malaysian Ringgit | | RBS | | | 300 | | | 12/21/2011 | | | 96 | | | | 2 | |
| Malaysian Ringgit | | RBS | | | (5,900 | ) | | 12/21/2011 | | | (1,930 | ) | | | 12 | |
| Malaysian Ringgit | | RBS | | | 1,400 | | | 12/21/2011 | | | 449 | | | | 6 | |
| Malaysian Ringgit | | RBS | | | (100 | ) | | 12/21/2011 | | | (32 | ) | | | (1 | ) |
| Malaysian Ringgit | | RBS | | | (100 | ) | | 12/21/2011 | | | (32 | ) | | | (1 | ) |
| Malaysian Ringgit | | RBS | | | 1,500 | | | 12/21/2011 | | | 480 | | | | 7 | |
| Malaysian Ringgit | | RBS | | | (3,100 | ) | | 12/21/2011 | | | (1,002 | ) | | | (6 | ) |
| Malaysian Ringgit | | RBS | | | (3,300 | ) | | 12/21/2011 | | | (1,068 | ) | | | (5 | ) |
| Malaysian Ringgit | | RBS | | | (1,000 | ) | | 12/21/2011 | | | (315 | ) | | | (10 | ) |
| Malaysian Ringgit | | RBS | | | (300 | ) | | 12/21/2011 | | | (94 | ) | | | (4 | ) |
| Mexican Peso | | RBS | | | 5,600 | | | 12/21/2011 | | | 418 | | | | w | |
| Mexican Peso | | RBS | | | 21,600 | | | 12/21/2011 | | | 1,694 | | | | (81 | ) |
| Mexican Peso | | RBS | | | 600 | | | 12/21/2011 | | | 45 | | | | (w | ) |
| Mexican Peso | | RBS | | | 2,200 | | | 12/21/2011 | | | 162 | | | | 2 | |
| Mexican Peso | | RBS | | | 12,200 | | | 12/21/2011 | | | 924 | | | | (13 | ) |
| Mexican Peso | | RBS | | | (3,400 | ) | | 12/21/2011 | | | (265 | ) | | | 11 | |
| Mexican Peso | | RBS | | | 6,500 | | | 12/21/2011 | | | 483 | | | | 3 | |
| Mexican Peso | | RBS | | | (3,700 | ) | | 12/21/2011 | | | (283 | ) | | | 7 | |
| Mexican Peso | | RBS | | | 15,900 | | | 12/21/2011 | | | 1,177 | | | | 10 | |
| Mexican Peso | | RBS | | | (11,400 | ) | | 12/21/2011 | | | (874 | ) | | | 23 | |
| Mexican Peso | | RBS | | | (400 | ) | | 12/21/2011 | | | (31 | ) | | | 1 | |
| Mexican Peso | | RBS | | | (2,200 | ) | | 12/21/2011 | | | (165 | ) | | | 1 | |
| Mexican Peso | | RBS | | | (500 | ) | | 12/21/2011 | | | (38 | ) | | | w | |
| Mexican Peso | | RBS | | | 5,100 | | | 12/21/2011 | | | 371 | | | | 10 | |
| Mexican Peso | | RBS | | | (42,800 | ) | | 12/21/2011 | | | (3,053 | ) | | | (143 | ) |
| Mexican Peso | | RBS | | | (12,100 | ) | | 12/21/2011 | | | (885 | ) | | | (18 | ) |
| Mexican Peso | | RBS | | | (4,100 | ) | | 12/21/2011 | | | (293 | ) | | | (13 | ) |
| Mexican Peso | | RBS | | | (5,900 | ) | | 12/21/2011 | | | (422 | ) | | | (19 | ) |
| Mexican Peso | | RBS | | | (3,000 | ) | | 12/21/2011 | | | (221 | ) | | | (3 | ) |
| New Zealand Dollar | | RBS | | | 1,857 | | | 12/21/2011 | | | 1,509 | | | | (13 | ) |
| New Zealand Dollar | | RBS | | | (4,834 | ) | | 12/21/2011 | | | (3,865 | ) | | | (30 | ) |
| New Zealand Dollar | | RBS | | | (3,786 | ) | | 12/21/2011 | | | (3,102 | ) | | | 51 | |
| New Zealand Dollar | | RBS | | | 9,307 | | | 12/21/2011 | | | 7,570 | | | | (71 | ) |
| New Zealand Dollar | | RBS | | | 1,422 | | | 12/21/2011 | | | 1,112 | | | | 34 | |
| New Zealand Dollar | | RBS | | | (712 | ) | | 12/21/2011 | | | (568 | ) | | | (5 | ) |
| New Zealand Dollar | | RBS | | | (4,969 | ) | | 12/21/2011 | | | (3,933 | ) | | | (71 | ) |
| New Zealand Dollar | | RBS | | | (1,099 | ) | | 12/21/2011 | | | (843 | ) | | | (42 | ) |
| New Zealand Dollar | | RBS | | | (1,508 | ) | | 12/21/2011 | | | (1,161 | ) | | | (54 | ) |
| New Zealand Dollar | | RBS | | | 13,163 | | | 12/21/2011 | | | 10,921 | | | | (315 | ) |
| New Zealand Dollar | | RBS | | | (2,172 | ) | | 12/21/2011 | | | (1,721 | ) | | | (29 | ) |
| New Zealand Dollar | | RBS | | | (29,718 | ) | | 12/21/2011 | | | (23,132 | ) | | | (814 | ) |
| New Zealand Dollar | | RBS | | | (4,167 | ) | | 12/21/2011 | | | (3,290 | ) | | | (67 | ) |
| New Zealand Dollar | | RBS | | | (10,332 | ) | | 12/21/2011 | | | (8,001 | ) | | | (323 | ) |
| New Zealand Dollar | | RBS | | | 29,766 | | | 12/21/2011 | | | 24,363 | | | | (380 | ) |
| New Zealand Dollar | | RBS | | | 5,227 | | | 12/21/2011 | | | 4,295 | | | | (84 | ) |
| New Zealand Dollar | | RBS | | | (8,019 | ) | | 12/21/2011 | | | (6,009 | ) | | | (452 | ) |
| New Zealand Dollar | | RBS | | | (1,941 | ) | | 12/21/2011 | | | (1,533 | ) | | | (31 | ) |
| New Zealand Dollar | | RBS | | | (7,576 | ) | | 12/21/2011 | | | (5,898 | ) | | | (206 | ) |
| Norwegian Krone | | RBS | | | 22,578 | | | 12/21/2011 | | | 4,159 | | | | (115 | ) |
| Norwegian Krone | | RBS | | | 2,251 | | | 12/21/2011 | | | 415 | | | | (12 | ) |
| Norwegian Krone | | RBS | | | (45,449 | ) | | 12/21/2011 | | | (7,947 | ) | | | (194 | ) |
| Norwegian Krone | | RBS | | | 119,636 | | | 12/21/2011 | | | 22,069 | | | | (641 | ) |
| Norwegian Krone | | RBS | | | (60,098 | ) | | 12/21/2011 | | | (10,304 | ) | | | (460 | ) |
| Norwegian Krone | | RBS | | | 20,596 | | | 12/21/2011 | | | 3,836 | | | | (147 | ) |
| Norwegian Krone | | RBS | | | 30,314 | | | 12/21/2011 | | | 5,453 | | | | (24 | ) |
| Norwegian Krone | | RBS | | | 3,765 | | | 12/21/2011 | | | 656 | | | | 19 | |
| Norwegian Krone | | RBS | | | 47,662 | | | 12/21/2011 | | | 8,536 | | | | 1 | |
| Norwegian Krone | | RBS | | | 12,316 | | | 12/21/2011 | | | 2,279 | | | | (73 | ) |
| Norwegian Krone | | RBS | | | 20,773 | | | 12/21/2011 | | | 3,680 | | | | 41 | |
| Norwegian Krone | | RBS | | | (27,230 | ) | | 12/21/2011 | | | (4,771 | ) | | | (106 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 206 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011 FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000's) | | | Settlement Date | | (000's) | | | (000's) | |
| |
| Philippine Peso | | RBS | | | 15,000 | | | 12/21/2011 | | $ | 347 | | | $ | 4 | |
| Philippine Peso | | RBS | | | (23,000 | ) | | 12/21/2011 | | | (521 | ) | | | (17 | ) |
| Philippine Peso | | RBS | | | 136,000 | | | 12/21/2011 | | | 3,185 | | | | (2 | ) |
| Philippine Peso | | RBS | | | (20,000 | ) | | 12/21/2011 | | | (452 | ) | | | (16 | ) |
| Philippine Peso | | RBS | | | (38,000 | ) | | 12/21/2011 | | | (866 | ) | | | (23 | ) |
| Philippine Peso | | RBS | | | 9,000 | | | 12/21/2011 | | | 208 | | | | 3 | |
| Philippine Peso | | RBS | | | (5,000 | ) | | 12/21/2011 | | | (114 | ) | | | (3 | ) |
| Philippine Peso | | RBS | | | (36,000 | ) | | 12/21/2011 | | | (832 | ) | | | (11 | ) |
| Philippine Peso | | RBS | | | (22,000 | ) | | 12/21/2011 | | | (507 | ) | | | (8 | ) |
| Philippine Peso | | RBS | | | 76,000 | | | 12/21/2011 | | | 1,761 | | | | 18 | |
| Philippine Peso | | RBS | | | (47,000 | ) | | 12/21/2011 | | | (1,067 | ) | | | (33 | ) |
| Philippine Peso | | RBS | | | (66,000 | ) | | 12/21/2011 | | | (1,524 | ) | | | (20 | ) |
| Philippine Peso | | RBS | | | 27,000 | | | 12/21/2011 | | | 619 | | | | 12 | |
| Philippine Peso | | RBS | | | 24,000 | | | 12/21/2011 | | | 566 | | | | (4 | ) |
| Philippine Peso | | RBS | | | 61,000 | | | 12/21/2011 | | | 1,435 | | | | (8 | ) |
| Philippine Peso | | RBS | | | (29,000 | ) | | 12/21/2011 | | | (654 | ) | | | (25 | ) |
| Polish Zloty | | RBS | | | (4,000 | ) | | 12/21/2011 | | | (1,313 | ) | | | 63 | |
| Polish Zloty | | RBS | | | 400 | | | 12/21/2011 | | | 127 | | | | (2 | ) |
| Polish Zloty | | RBS | | | (3,500 | ) | | 12/21/2011 | | | (1,091 | ) | | | (3 | ) |
| Polish Zloty | | RBS | | | (300 | ) | | 12/21/2011 | | | (94 | ) | | | (w | ) |
| Polish Zloty | | RBS | | | 1,000 | | | 12/21/2011 | | | 298 | | | | 15 | |
| Polish Zloty | | RBS | | | (2,600 | ) | | 12/21/2011 | | | (800 | ) | | | (13 | ) |
| Polish Zloty | | RBS | | | 1,800 | | | 12/21/2011 | | | 588 | | | | (25 | ) |
| Polish Zloty | | RBS | | | (3,900 | ) | | 12/21/2011 | | | (1,287 | ) | | | 68 | |
| Polish Zloty | | RBS | | | (1,500 | ) | | 12/21/2011 | | | (457 | ) | | | (12 | ) |
| Polish Zloty | | RBS | | | 400 | | | 12/21/2011 | | | 129 | | | | (4 | ) |
| Polish Zloty | | RBS | | | (300 | ) | | 12/21/2011 | | | (93 | ) | | | (1 | ) |
| Polish Zloty | | RBS | | | 300 | | | 12/21/2011 | | | 90 | | | | 4 | |
| Polish Zloty | | RBS | | | 900 | | | 12/21/2011 | | | 285 | | | | (3 | ) |
| Pound Sterling | | RBS | | | (5,585 | ) | | 12/21/2011 | | | (8,621 | ) | | | (354 | ) |
| Pound Sterling | | RBS | | | 794 | | | 12/21/2011 | | | 1,252 | | | | 24 | |
| Pound Sterling | | RBS | | | (1,290 | ) | | 12/21/2011 | | | (2,001 | ) | | | (72 | ) |
| Pound Sterling | | RBS | | | 1,260 | | | 12/21/2011 | | | 1,951 | | | | 74 | |
| Pound Sterling | | RBS | | | (400 | ) | | 12/21/2011 | | | (618 | ) | | | (25 | ) |
| Pound Sterling | | RBS | | | (1,770 | ) | | 12/21/2011 | | | (2,767 | ) | | | (77 | ) |
| Pound Sterling | | RBS | | | (1,795 | ) | | 12/21/2011 | | | (2,823 | ) | | | (62 | ) |
| Pound Sterling | | RBS | | | (2,438 | ) | | 12/21/2011 | | | (3,880 | ) | | | (37 | ) |
| Pound Sterling | | RBS | | | (1,038 | ) | | 12/21/2011 | | | (1,622 | ) | | | (46 | ) |
| Pound Sterling | | RBS | | | 6,760 | | | 12/21/2011 | | | 10,506 | | | | 357 | |
| Pound Sterling | | RBS | | | (90 | ) | | 12/21/2011 | | | (145 | ) | | | 1 | |
| Pound Sterling | | RBS | | | 801 | | | 12/21/2011 | | | 1,251 | | | | 36 | |
| Pound Sterling | | RBS | | | 730 | | | 12/21/2011 | | | 1,141 | | | | 32 | |
| Pound Sterling | | RBS | | | (4,082 | ) | | 12/21/2011 | | | (6,521 | ) | | | (38 | ) |
| Pound Sterling | | RBS | | | (4,666 | ) | | 12/21/2011 | | | (7,498 | ) | | | (w | ) |
| Pound Sterling | | RBS | | | 4,158 | | | 12/21/2011 | | | 6,638 | | | | 44 | |
| Pound Sterling | | RBS | | | 370 | | | 12/21/2011 | | | 593 | | | | 2 | |
| Pound Sterling | | RBS | | | (3,354 | ) | | 12/21/2011 | | | (5,348 | ) | | | (42 | ) |
| Pound Sterling | | RBS | | | 349 | | | 12/21/2011 | | | 549 | | | | 12 | |
| Pound Sterling | | RBS | | | 1,090 | | | 12/21/2011 | | | 1,713 | | | | 39 | |
| Pound Sterling | | RBS | | | 640 | | | 12/21/2011 | | | 1,011 | | | | 18 | |
| Pound Sterling | | RBS | | | 270 | | | 12/21/2011 | | | 423 | | | | 11 | |
| Pound Sterling | | RBS | | | 1,420 | | | 12/21/2011 | | | 2,246 | | | | 36 | |
| Pound Sterling | | RBS | | | (1,726 | ) | | 12/21/2011 | | | (2,717 | ) | | | (57 | ) |
| Pound Sterling | | RBS | | | 496 | | | 12/21/2011 | | | 793 | | | | 5 | |
| Pound Sterling | | RBS | | | 447 | | | 12/21/2011 | | | 690 | | | | 28 | |
| Pound Sterling | | RBS | | | 6,607 | | | 12/21/2011 | | | 10,538 | | | | 79 | |
| Pound Sterling | | RBS | | | (680 | ) | | 12/21/2011 | | | (1,075 | ) | | | (18 | ) |
| Republic of Korea Won | | RBS | | | (280,000 | ) | | 12/21/2011 | | | (237 | ) | | | (16 | ) |
| Republic of Korea Won | | RBS | | | 640,000 | | | 12/21/2011 | | | 530 | | | | 47 | |
| Republic of Korea Won | | RBS | | | 5,274,230 | | | 12/21/2011 | | | 4,714 | | | | 41 | |
| Republic of Korea Won | | RBS | | | 60,000 | | | 12/21/2011 | | | 53 | | | | 1 | |
| Republic of Korea Won | | RBS | | | (4,610,000 | ) | | 12/21/2011 | | | (4,161 | ) | | | 4 | |
| Republic of Korea Won | | RBS | | | 500,000 | | | 12/21/2011 | | | 438 | | | | 13 | |
| Republic of Korea Won | | RBS | | | 1,770,000 | | | 12/21/2011 | | | 1,565 | | | | 31 | |
| Republic of Korea Won | | RBS | | | 1,370,000 | | | 12/21/2011 | | | 1,245 | | | | (10 | ) |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 207 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011 FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000's) | | | Settlement Date | | (000's) | | | (000's) | |
| |
| Republic of Korea Won | | RBS | | | (2,440,000 | ) | | 12/21/2011 | | $ | (2,116 | ) | | $ | (84 | ) |
| Republic of Korea Won | | RBS | | | (860,000 | ) | | 12/21/2011 | | | (798 | ) | | | 22 | |
| Republic of Korea Won | | RBS | | | 170,000 | | | 12/21/2011 | | | 144 | | | | 10 | |
| Republic of Korea Won | | RBS | | | 1,040,000 | | | 12/21/2011 | | | 939 | | | | (1 | ) |
| Republic of Korea Won | | RBS | | | 610,000 | | | 12/21/2011 | | | 546 | | | | 4 | |
| Republic of Korea Won | | RBS | | | (1,850,000 | ) | | 12/21/2011 | | | (1,666 | ) | | | (2 | ) |
| Republic of Korea Won | | RBS | | | 640,000 | | | 12/21/2011 | | | 538 | | | | 39 | |
| Republic of Korea Won | | RBS | | | (440,000 | ) | | 12/21/2011 | | | (382 | ) | | | (15 | ) |
| Republic of Korea Won | | RBS | | | (490,000 | ) | | 12/21/2011 | | | (419 | ) | | | (22 | ) |
| Republic of Korea Won | | RBS | | | (650,000 | ) | | 12/21/2011 | | | (561 | ) | | | (25 | ) |
| Republic of Korea Won | | RBS | | | (570,000 | ) | | 12/21/2011 | | | (490 | ) | | | (24 | ) |
| Republic of Korea Won | | RBS | | | (600,000 | ) | | 12/21/2011 | | | (508 | ) | | | (33 | ) |
| Republic of Korea Won | | RBS | | | 330,000 | | | 12/21/2011 | | | 275 | | | | 23 | |
| Republic of Korea Won | | RBS | | | (1,430,000 | ) | | 12/21/2011 | | | (1,194 | ) | | | (95 | ) |
| Russian Ruble | | RBS | | | 20,000 | | | 12/21/2011 | | | 634 | | | | 19 | |
| Russian Ruble | | RBS | | | 44,000 | | | 12/21/2011 | | | 1,378 | | | | 59 | |
| Russian Ruble | | RBS | | | 11,000 | | | 12/21/2011 | | | 354 | | | | 5 | |
| Russian Ruble | | RBS | | | 13,000 | | | 12/21/2011 | | | 396 | | | | 29 | |
| Russian Ruble | | RBS | | | (19,000 | ) | | 12/21/2011 | | | (584 | ) | | | (37 | ) |
| Russian Ruble | | RBS | | | (21,000 | ) | | 12/21/2011 | | | (661 | ) | | | (25 | ) |
| Russian Ruble | | RBS | | | 10,000 | | | 12/21/2011 | | | 310 | | | | 17 | |
| Russian Ruble | | RBS | | | (16,000 | ) | | 12/21/2011 | | | (502 | ) | | | (21 | ) |
| Russian Ruble | | RBS | | | 53,000 | | | 12/21/2011 | | | 1,727 | | | | 4 | |
| Russian Ruble | | RBS | | | 35,000 | | | 12/21/2011 | | | 1,139 | | | | 4 | |
| Russian Ruble | | RBS | | | 30,000 | | | 12/21/2011 | | | 964 | | | | 16 | |
| Russian Ruble | | RBS | | | 9,000 | | | 12/21/2011 | | | 285 | | | | 9 | |
| Russian Ruble | | RBS | | | (111,000 | ) | | 12/21/2011 | | | (3,388 | ) | | | (239 | ) |
| Russian Ruble | | RBS | | | 10,000 | | | 12/21/2011 | | | 304 | | | | 23 | |
| Russian Ruble | | RBS | | | (45,000 | ) | | 12/21/2011 | | | (1,476 | ) | | | 6 | |
| Russian Ruble | | RBS | | | 4,000 | | | 12/21/2011 | | | 131 | | | | w | |
| Singapore Dollar | | RBS | | | (430 | ) | | 12/21/2011 | | | (339 | ) | | | (4 | ) |
| Singapore Dollar | | RBS | | | (2,350 | ) | | 12/21/2011 | | | (1,823 | ) | | | (50 | ) |
| Singapore Dollar | | RBS | | | (100 | ) | | 12/21/2011 | | | (80 | ) | | | w | |
| Singapore Dollar | | RBS | | | 1,210 | | | 12/21/2011 | | | 931 | | | | 33 | |
| Singapore Dollar | | RBS | | | (1,150 | ) | | 12/21/2011 | | | (899 | ) | | | (17 | ) |
| Singapore Dollar | | RBS | | | (100 | ) | | 12/21/2011 | | | (78 | ) | | | (2 | ) |
| Singapore Dollar | | RBS | | | 150 | | | 12/21/2011 | | | 118 | | | | 1 | |
| Singapore Dollar | | RBS | | | 1,050 | | | 12/21/2011 | | | 853 | | | | (16 | ) |
| Singapore Dollar | | RBS | | | 2,120 | | | 12/21/2011 | | | 1,617 | | | | 73 | |
| Singapore Dollar | | RBS | | | (3,680 | ) | | 12/21/2011 | | | (2,981 | ) | | | 48 | |
| Singapore Dollar | | RBS | | | 1,320 | | | 12/21/2011 | | | 1,026 | | | | 26 | |
| Singapore Dollar | | RBS | | | (760 | ) | | 12/21/2011 | | | (610 | ) | | | 4 | |
| Singapore Dollar | | RBS | | | 220 | | | 12/21/2011 | | | 182 | | | | (7 | ) |
| Singapore Dollar | | RBS | | | (530 | ) | | 12/21/2011 | | | (403 | ) | | | (20 | ) |
| Singapore Dollar | | RBS | | | 1,270 | | | 12/21/2011 | | | 1,004 | | | | 8 | |
| Singapore Dollar | | RBS | | | (360 | ) | | 12/21/2011 | | | (289 | ) | | | 2 | |
| Singapore Dollar | | RBS | | | 2,720 | | | 12/21/2011 | | | 2,138 | | | | 30 | |
| Singapore Dollar | | RBS | | | (960 | ) | | 12/21/2011 | | | (779 | ) | | | 13 | |
| Singapore Dollar | | RBS | | | (1,010 | ) | | 12/21/2011 | | | (814 | ) | | | 9 | |
| Singapore Dollar | | RBS | | | (300 | ) | | 12/21/2011 | | | (237 | ) | | | (2 | ) |
| Singapore Dollar | | RBS | | | (1,030 | ) | | 12/21/2011 | | | (807 | ) | | | (14 | ) |
| Singapore Dollar | | RBS | | | 150 | | | 12/21/2011 | | | 119 | | | | 1 | |
| Singapore Dollar | | RBS | | | 780 | | | 12/21/2011 | | | 600 | | | | 22 | |
| Singapore Dollar | | RBS | | | (2,750 | ) | | 12/21/2011 | | | (2,179 | ) | | | (13 | ) |
| South African Rand | | RBS | | | 1,800 | | | 12/21/2011 | | | 227 | | | | (2 | ) |
| South African Rand | | RBS | | | 6,800 | | | 12/21/2011 | | | 829 | | | | 21 | |
| South African Rand | | RBS | | | (7,000 | ) | | 12/21/2011 | | | (901 | ) | | | 26 | |
| South African Rand | | RBS | | | 3,300 | | | 12/21/2011 | | | 424 | | | | (11 | ) |
| South African Rand | | RBS | | | (25,300 | ) | | 12/21/2011 | | | (3,404 | ) | | | 240 | |
| South African Rand | | RBS | | | 2,300 | | | 12/21/2011 | | | 288 | | | | (1 | ) |
| South African Rand | | RBS | | | (2,200 | ) | | 12/21/2011 | | | (271 | ) | | | (4 | ) |
| South African Rand | | RBS | | | (1,300 | ) | | 12/21/2011 | | | (179 | ) | | | 16 | |
| South African Rand | | RBS | | | 300 | | | 12/21/2011 | | | 38 | | | | (w | ) |
| South African Rand | | RBS | | | (2,100 | ) | | 12/21/2011 | | | (260 | ) | | | (3 | ) |
| South African Rand | | RBS | | | (3,100 | ) | | 12/21/2011 | | | (416 | ) | | | 28 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 208 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011 FORWARD FOREIGN CURRENCY CONTRACTS (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | Contracts | | | | | Dollars Bought | | | Appreciation | |
| | | | | Bought (Sold) | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | (000's) | | | Settlement Date | | (000's) | | | (000's) | |
| |
| South African Rand | | RBS | | | 11,200 | | | 12/21/2011 | | $ | 1,386 | | | $ | 14 | |
| South African Rand | | RBS | | | (1,100 | ) | | 12/21/2011 | | | (139 | ) | | | 1 | |
| South African Rand | | RBS | | | (16,200 | ) | | 12/21/2011 | | | (2,075 | ) | | | 50 | |
| South African Rand | | RBS | | | (100 | ) | | 12/21/2011 | | | (13 | ) | | | w | |
| South African Rand | | RBS | | | 200 | | | 12/21/2011 | | | 24 | | | | 1 | |
| South African Rand | | RBS | | | (6,800 | ) | | 12/21/2011 | | | (817 | ) | | | (33 | ) |
| South African Rand | | RBS | | | (2,000 | ) | | 12/21/2011 | | | (267 | ) | | | 17 | |
| Swedish Krona | | RBS | | | 19,190 | | | 12/21/2011 | | | 2,974 | | | | (38 | ) |
| Swedish Krona | | RBS | | | 36,995 | | | 12/21/2011 | | | 5,496 | | | | 165 | |
| Swedish Krona | | RBS | | | 59,171 | | | 12/21/2011 | | | 9,252 | | | | (198 | ) |
| Swedish Krona | | RBS | | | 66,385 | | | 12/21/2011 | | | 10,417 | | | | (259 | ) |
| Swedish Krona | | RBS | | | 6,023 | | | 12/21/2011 | | | 921 | | | | 1 | |
| Swedish Krona | | RBS | | | (51,154 | ) | | 12/21/2011 | | | (7,571 | ) | | | (256 | ) |
| Swedish Krona | | RBS | | | 31,194 | | | 12/21/2011 | | | 4,710 | | | | 63 | |
| Swedish Krona | | RBS | | | 53,277 | | | 12/21/2011 | | | 7,887 | | | | 265 | |
| Swedish Krona | | RBS | | | (14,430 | ) | | 12/21/2011 | | | (2,164 | ) | | | (44 | ) |
| Swedish Krona | | RBS | | | 3,360 | | | 12/21/2011 | | | 501 | | | | 13 | |
| Swedish Krona | | RBS | | | (130,182 | ) | | 12/21/2011 | | | (19,274 | ) | | | (646 | ) |
| Swedish Krona | | RBS | | | 12,550 | | | 12/21/2011 | | | 1,876 | | | | 45 | |
| Swedish Krona | | RBS | | | 8,491 | | | 12/21/2011 | | | 1,227 | | | | 72 | |
| Swedish Krona | | RBS | | | 45,705 | | | 12/21/2011 | | | 6,962 | | | | 31 | |
| Swedish Krona | | RBS | | | 22,203 | | | 12/21/2011 | | | 3,362 | | | | 36 | |
| Swedish Krona | | RBS | | | (73,685 | ) | | 12/21/2011 | | | (10,723 | ) | | | (551 | ) |
| Swedish Krona | | RBS | | | 45,820 | | | 12/21/2011 | | | 7,160 | | | | (149 | ) |
| Swiss Franc | | RBS | | | 6,608 | | | 12/21/2011 | | | 7,564 | | | | (29 | ) |
| Swiss Franc | | RBS | | | (6,608 | ) | | 12/21/2011 | | | (7,688 | ) | | | 153 | |
| Taiwan Dollar | | RBS | | | 35,000 | | | 12/21/2011 | | | 1,177 | | | | (6 | ) |
| Taiwan Dollar | | RBS | | | 10,000 | | | 12/21/2011 | | | 332 | | | | 3 | |
| Taiwan Dollar | | RBS | | | 31,000 | | | 12/21/2011 | | | 1,064 | | | | (26 | ) |
| Taiwan Dollar | | RBS | | | (204,000 | ) | | 12/21/2011 | | | (6,932 | ) | | | 105 | |
| Taiwan Dollar | | RBS | | | 31,000 | | | 12/21/2011 | | | 1,028 | | | | 10 | |
| Taiwan Dollar | | RBS | | | 39,000 | | | 12/21/2011 | | | 1,300 | | | | 5 | |
| Taiwan Dollar | | RBS | | | (1,000 | ) | | 12/21/2011 | | | (33 | ) | | | (w | ) |
| Taiwan Dollar | | RBS | | | 10,000 | | | 12/21/2011 | | | 335 | | | | (w | ) |
| Taiwan Dollar | | RBS | | | (15,000 | ) | | 12/21/2011 | | | (495 | ) | | | (7 | ) |
| Taiwan Dollar | | RBS | | | (49,000 | ) | | 12/21/2011 | | | (1,628 | ) | | | (12 | ) |
| Taiwan Dollar | | RBS | | | 13,000 | | | 12/21/2011 | | | 425 | | | | 10 | |
| Taiwan Dollar | | RBS | | | 33,000 | | | 12/21/2011 | | | 1,105 | | | | (w | ) |
| Taiwan Dollar | | RBS | | | (21,000 | ) | | 12/21/2011 | | | (697 | ) | | | (6 | ) |
| Taiwan Dollar | | RBS | | | (26,000 | ) | | 12/21/2011 | | | (871 | ) | | | 1 | |
| Taiwan Dollar | | RBS | | | (30,000 | ) | | 12/21/2011 | | | (1,026 | ) | | | 22 | |
| Taiwan Dollar | | RBS | | | (17,000 | ) | | 12/21/2011 | | | (562 | ) | | | (7 | ) |
| Taiwan Dollar | | RBS | | | 31,000 | | | 12/21/2011 | | | 1,016 | | | | 21 | |
| Taiwan Dollar | | RBS | | | (43,000 | ) | | 12/21/2011 | | | (1,421 | ) | | | (19 | ) |
| Taiwan Dollar | | RBS | | | (31,000 | ) | | 12/21/2011 | | | (1,028 | ) | | | (9 | ) |
| Turkish Lira | | RBS | | | 830 | | | 12/21/2011 | | | 463 | | | | 1 | |
| Turkish Lira | | RBS | | | (800 | ) | | 12/21/2011 | | | (436 | ) | | | (11 | ) |
| Turkish Lira | | RBS | | | 200 | | | 12/21/2011 | | | 113 | | | | (1 | ) |
| Turkish Lira | | RBS | | | (500 | ) | | 12/21/2011 | | | (268 | ) | | | (11 | ) |
| Turkish Lira | | RBS | | | (1,700 | ) | | 12/21/2011 | | | (910 | ) | | | (40 | ) |
| Turkish Lira | | RBS | | | 2,400 | | | 12/21/2011 | | | 1,323 | | | | 19 | |
| Turkish Lira | | RBS | | | (9,220 | ) | | 12/21/2011 | | | (5,076 | ) | | | (78 | ) |
| Turkish Lira | | RBS | | | (200 | ) | | 12/21/2011 | | | (107 | ) | | | (5 | ) |
| Turkish Lira | | RBS | | | (300 | ) | | 12/21/2011 | | | (164 | ) | | | (3 | ) |
| Turkish Lira | | RBS | | | 100 | | | 12/21/2011 | | | 55 | | | | w | |
| Turkish Lira | | RBS | | | 990 | | | 12/21/2011 | | | 544 | | | | 9 | |
| Turkish Lira | | RBS | | | (2,100 | ) | | 12/21/2011 | | | (1,126 | ) | | | (48 | ) |
| Turkish Lira | | RBS | | | 1,300 | | | 12/21/2011 | | | 689 | | | | 38 | |
| Turkish Lira | | RBS | | | (600 | ) | | 12/21/2011 | | | (325 | ) | | | (10 | ) |
| Turkish Lira | | RBS | | | 500 | | | 12/21/2011 | | | 280 | | | | (1 | ) |
| Turkish Lira | | RBS | | | 4,300 | | | 12/21/2011 | | | 2,409 | | | | (6 | ) |
| Turkish Lira | | RBS | | | (500 | ) | | 12/21/2011 | | | (270 | ) | | | (10 | ) |
| Turkish Lira | | RBS | | | 60 | | | 12/21/2011 | | | 34 | | | | (w | ) |
| Turkish Lira | | RBS | | | 1,300 | | | 12/21/2011 | | | 696 | | | | 31 | |
| | | | | | | | | | | | | | | |
| | | RBS | | | | | | | | | | | | $ | (6,528 | ) |
| | | | | | | | | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 209 | | Annual Report 2011 |
Transamerica AQR Managed Futures Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
|
| | | Total Market Value of | | | Collateral | | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| MLC | | $ | (52 | ) | | $ | 240 | | | $ | 188 | |
| MYC | | | (119 | ) | | | — | | | | (119 | ) |
| RBS | | | (6,530 | ) | | | 7,870 | | | | 1,340 | |
| BRC | | | 254 | | | | 180 | | | | 434 | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| Π | | Aggregate cost for federal income tax purposes is $242,127. Net and gross unrealized depreciation for tax purposes is $5,408. |
| |
| (A) | | At the termination date, a net cash flow is exchanged where the total return is equivalent to the return of the reference index less a financing rate, if any. As a receiver, the fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return. |
| |
| β | | Cash in the amount of $8,290 has been segregated by the custodian for the benefit of the broker for open swaps contracts. |
| |
| γ | | Cash in the amount of $20,138 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| ┌ | | Contract amounts are not in thousands. |
| |
| ♦ | | Amount rounds to less than 1. |
DEFINITIONS:
| | | |
|
| BRC | | Barclays Bank PLC |
| MLC | | Merrill Lynch Capital Services |
| MYC | | Morgan Stanley Capital Services |
| RBS | | Royal Bank of Scotland PLC |
VALUATION SUMMARY (all amounts in thousands): Э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Investment Companies | | $ | 221,885 | | | $ | — | | | $ | — | | | $ | 221,885 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 — | | | | | | | |
| | | | | | | Other | | | Level 3 — | | | | |
| | | Level 1 — | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Total Return Swap Agreements—Appreciation | | $ | — | | | $ | 258 | | | $ | — | | | $ | 258 | |
| Total Return Swap Agreements—Depreciation | | | — | | | | (177 | ) | | | — | | | | (177 | ) |
| Futures Contracts—Appreciation | | | 4,556 | | | | | | | | — | | | | 4,556 | |
| Futures Contracts—Depreciation | | | (6,587 | ) | | | — | | | | — | | | | (6,587 | ) |
| Forward Contracts—Appreciation | | | — | | | | 10,020 | | | | — | | | | 10,020 | |
| Forward Contracts—Depreciation | | | — | | | | (16,548 | ) | | | — | | | | (16,548 | ) |
| | | |
Total | | $ | (2,031 | ) | | $ | (6,447 | ) | | $ | — | | | $ | (8,478 | ) |
| | | |
| Э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 210 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal (000’s) | | | Value (000’s) | |
| |
U.S. GOVERNMENT OBLIGATIONS — 8.1% | | | | | | | | |
United States — 8.1% | | | | | | | | |
| U.S. Treasury Bond | | | | | | | | |
| 2.13%, 08/15/2021^ | | $ | 1,081 | | | $ | 1,077 | |
| U.S. Treasury Note | | | | | | | | |
| 0.63%, 07/31/2012 | | | 1,335 | | | | 1,340 | |
| 1.38%, 09/30/2018^ | | | 2,297 | | | | 2,264 | |
| 1.75%, 10/31/2018 | | | 270 | | | | 272 | |
| 2.25%, 01/31/2015 γ | | | 3,133 | | | | 3,311 | |
| 2.25%, 03/31/2016^ | | | 4,210 | | | | 4,472 | |
| 2.38%, 02/28/2015 | | | 3,198 | | | | 3,395 | |
| 2.50%, 03/31/2015 | | | 3,777 | | | | 4,030 | |
| 2.63%, 08/15/2020 | | | 5,669 | | | | 5,964 | |
| 3.50%, 05/15/2020 | | | 7,067 | | | | 7,959 | |
| | | | | | | | |
Total U.S. Government Obligations (cost $32,423) | | | | | | | 34,084 | |
| | | | | | | | |
| | | | | | | | | |
FOREIGN GOVERNMENT OBLIGATIONS — 9.0% | | | | | | | | |
Australia — 1.6% | | | | | | | | |
| Australia Government Bond | | | | | | | | |
| 4.75%, 11/15/2012 | | AUD 1,453 | | | 1,541 | |
| 5.50%, 12/15/2013^ | | | 1,200 | | | | 1,306 | |
| 5.75%, 04/15/2012 — 05/15/2021 | | | 3,337 | | | | 3,714 | |
Brazil — 1.6% | | | | | | | | |
| Brazil Notas do Tesouro Nacional | | | | | | | | |
| 6.00%, 05/15/2015 | | BRL 845 | | | 1,056 | |
| 10.00%, 01/01/2017 — 01/01/2021 | | | 10,327 | | | | 5,616 | |
Canada — 0.3% | | | | | | | | |
| Canadian Government Bond | | | | | | | | |
| 3.50%, 06/01/2020 | | CAD 586 | | | 646 | |
| 4.00%, 06/01/2016 | | | 455 | | | | 507 | |
Germany — 2.1% | | | | | | | | |
| Bundesrepublik Deutschland | | | | | | | | |
| 3.50%, 07/04/2019 | | EUR 2,510 | | | 3,909 | |
| 4.25%, 07/04/2017 | | | 3,110 | | | | 4,977 | |
Hong Kong — 0.5% | | | | | | | | |
| Hong Kong Government Bond | | | | | | | | |
| 1.67%, 03/24/2014 | | HKD 1,550 | | | 206 | |
| 1.69%, 12/22/2014 | | | 2,100 | | | | 280 | |
| 2.03%, 03/18/2013 | | | 7,850 | | | | 1,036 | |
| 3.51%, 12/08/2014 | | | 4,200 | | | | 592 | |
| 4.13%, 02/22/2013 | | | 2,650 | | | | 359 | |
Korea, Republic of — 0.0% ∞ | | | | | | | | |
| Export-Import Bank of Korea | | | | | | | | |
| 4.13%, 09/09/2015 | | $ | 191 | | | | 196 | |
| Korea Development Bank | | | | | | | | |
| 4.38%, 08/10/2015 | | | 167 | | | | 174 | |
Malaysia — 0.5% | | | | | | | | |
| Malaysia Government Bond | | | | | | | | |
| 2.51%, 08/27/2012 | | MYR 6,293 | | | 2,048 | |
| Republic of Malaysia | | | | | | | | |
| 3.46%, 07/31/2013 | | | 217 | | | | 71 | |
New Zealand — 0.0% ∞ | | | | | | | | |
| Republic of New Zealand | | | | | | | | |
| 4.50%, 02/15/2016 | | NZD 145 | | | 194 | |
Poland — 0.2% | | | | | | | | |
| Republic of Poland | | | | | | | | |
| 3.00%, 08/24/2016 | | PLN 2,224 | | | 703 | |
Turkey — 0.2% | | | | | | | | |
| Republic of Turkey | | | | | | | | |
| 4.00%, 04/01/2020 | | TRY 404 | | | 245 | |
| 10.00%, 01/09/2013 | | | 273 | | | | 154 | |
| 10.50%, 01/15/2020 | | | 756 | | | | 451 | |
| | | | | | | | | |
|
Ukraine — 0.0% ∞ | | | | | | | | |
| Republic of Ukraine | | | | | | | | |
| 6.88%, 09/23/2015 — 144A | | | 110 | | | | 104 | |
United Kingdom — 2.0% | | | | | | | | |
| United Kingdom Gilt | | | | | | | | |
| 4.00%, 09/07/2016 | | | GBP389 | | | | 705 | |
| 4.25%, 12/07/2040 | | | 938 | | | | 1,739 | |
| 4.75%, 03/07/2020 | | | 2,773 | | | | 5,332 | |
Vietnam — 0.0% ∞ | | | | | | | | |
| Socialist Republic of Vietnam | | | | | | | | |
| 6.75%, 01/29/2020 — Reg S | | $ | 200 | | | | 202 | |
| | | | | | | | |
Total Foreign Government Obligations (cost $35,830) | | | | | | | 38,063 | |
| | | | | | | | |
| | | | | | | | | |
MORTGAGE-BACKED SECURITY — 0.1% | | | | | | | | |
United States — 0.1% | | | | | | | | |
| Banc of America Large Loan, Inc. | | | | | | | | |
| Series 2010-HLTN, Class HLTN | | | | | | | | |
| 1.99%, 11/15/2015 — 144A * | | | 610 | | | | 555 | |
Total Mortgage — Backed Security (cost $548) | | | | | | | | |
| | | | | | | | | |
PREFERRED CORPORATE DEBT SECURITIES — 0.2% | | | | | | | | |
United Kingdom — 0.2% | | | | | | | | |
| Lloyds TSB Bank PLC | | | | | | | | |
| 13.00%, 01/21/2029 Ž | | | GBP500 | | | | 860 | |
United States — 0.0% ∞ | | | | | | | | |
| JPMorgan Chase Capital XXV | | | | | | | | |
| 6.80%, 10/01/2037 | | $ | 36 | | | | 36 | |
| | | | | | | | |
Total Preferred Corporate Debt Securities (cost $931) | | | | | | | 896 | |
| | | | | | | | |
| | | | | | | | | |
CORPORATE DEBT SECURITIES — 2.8% | | | | | | | | |
Argentina — 0.0% ∞ | | | | | | | | |
| Empresa Distribuidora Y Comercializadora Norte | | | | | | | | |
| 9.75%, 10/25/2022 — 144A | | | 73 | | | | 59 | |
Australia — 0.1% | | | | | | | | |
| TFS Corp. Ltd | | | | | | | | |
| 11.00%, 07/15/2018 — 144A | | | 515 | | | | 522 | |
Brazil — 0.1% | | | | | | | | |
| Hypermarcas SA | | | | | | | | |
| 6.50%, 04/20/2021 — 144A ^ | | | 170 | | | | 165 | |
| OGX Petroleo e Gas Participacoes SA | | | | | | | | |
| 8.50%, 06/01/2018 — 144A | | | 540 | | | | 534 | |
Canada — 0.1% | | | | | | | | |
| Viterra, Inc. | | | | | | | | |
| 5.95%, 08/01/2020 — 144A | | | 370 | | | | 385 | |
Cayman Islands — 0.1% | | | | | | | | |
| Odebrecht Drilling Norbe VIII/IX, Ltd. | | | | | | | | |
| 6.35%, 06/30/2021 — 144A^ | | | 289 | | | | 301 | |
Chile — 0.1% | | | | | | | | |
| Inversiones Alsacia SA | | | | | | | | |
| 8.00%, 08/18/2018 — 144A | | | 353 | | | | 277 | |
Czech Republic — 0.0% ∞ | | | | | | | | |
| Hyundai Motor Manufacturing Czech S.R.O. | | | | | | | | |
| 4.50%, 04/15/2015 — 144A | | | 148 | | | | 153 | |
Guernsey, Channel Islands — 0.1% | | | | | | | | |
| Credit Suisse Group Guernsey I, Ltd. | | | | | | | | |
| 7.88%, 02/24/2041 — Reg S * | | | 300 | | | | 293 | |
Ireland — 0.0% ∞ | | | | | | | | |
| Bank of Ireland Mortgage Bank | | | | | | | | |
| 3.25%, 06/22/2015 | | EUR 50 | | | 53 | |
| 4.63%, 09/16/2014 | | | 58 | | | | 66 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 211 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Korea, Republic of — 0.2% | | | | | | | | |
| Hana Bank | | | | | | | | |
| 4.50%, 10/30/2015 — 144A | | $ | 134 | | | $ | 137 | |
| Hyundai Capital Services, Inc. | | | | | | | | |
| 4.38%, 07/27/2016 — 144A | | | 200 | | | | 203 | |
| Korea Electric Power Corp. | | | | | | | | |
| 5.13%, 04/23/2034 — Reg S | | | 579 | | | | 617 | |
| 7.95%, 04/01/2096 * | | | 448 | | | | 328 | |
Luxembourg — 0.3% | | | | | | | | |
| Capsugel FinanceCo S.C.A. | | | | | | | | |
| 9.88%, 08/01/2019 — 144A | | EUR 100 | | | 141 | |
| Evraz Group SA | | | | | | | | |
| 9.50%, 04/24/2018 — 144A | | $ | 125 | | | | 135 | |
| Intelsat Jackson Holdings SA | | | | | | | | |
| 7.50%, 04/01/2021 — 144A | | | 309 | | | | 311 | |
| TNK-BP Finance SA | | | | | | | | |
| 6.63%, 03/20/2017 — 144A | | | 302 | | | | 323 | |
| 7.50%, 07/18/2016 — 144A | | | 100 | | | | 111 | |
Malaysia — 0.3% | | | | | | | | |
| Johor Corp. | | | | | | | | |
| 1.00%, 07/31/2012 § | | MYR 2,896 | | | 1,265 | |
Mexico — 0.2% | | | | | | | | |
| BBVA Bancomer SA | | | | | | | | |
| 6.50%, 03/10/2021 — 144A | | $ | 174 | | | | 173 | |
| Petroleos Mexicanos | | | | | | | | |
| 6.00%, 03/05/2020 | | | 242 | | | | 269 | |
Singapore — 0.2% | | | | | | | | |
| Bumi Investment Pte, Ltd. | | | | | | | | |
| 10.75%, 10/06/2017 — 144A | | | 244 | | | | 253 | |
| Yanlord Land Group, Ltd. | | | | | | | | |
| 9.50%, 05/04/2017 — 144A | | | 270 | | | | 231 | |
Switzerland — 0.1% | | | | | | | | |
| Credit Suisse | | | | | | | | |
| 10.25%, 07/17/2022 | | IDR 2,171,600 | | | 315 | |
| UBS AG | | | | | | | | |
| 4.88%, 08/04/2020 | | $ | 293 | | | | 301 | |
United States — 0.9% | | | | | | | | |
| Ally Financial, Inc. | | | | | | | | |
| 4.50%, 02/11/2014 | | | 248 | | | | 242 | |
| BAC Capital Trust XI | | | | | | | | |
| 6.63%, 05/23/2036 | | | 130 | | | | 107 | |
| Building Materials Corp., of America | | | | | | | | |
| 6.88%, 08/15/2018 — 144A | | | 111 | | | | 115 | |
| Calpine Corp. | | | | | | | | |
| 7.50%, 02/15/2021 — 144A | | | 73 | | | | 77 | |
| 7.88%, 07/31/2020 — 144A | | | 177 | | | | 189 | |
| Calpine Corp. Escrow | | | | | | | | |
| 8.75%, 07/15/2013 Ə | | | 2,142 | | | | ♦ | |
| CF Industries Holdings, Inc. | | | | | | | | |
| 7.13%, 05/01/2020 | | | 113 | | | | 132 | |
| Consol Energy, Inc. | | | | | | | | |
| 8.00%, 04/01/2017 | | | 448 | | | | 491 | |
| DaVita, Inc. | | | | | | | | |
| 6.38%, 11/01/2018 | | | 166 | | | | 168 | |
| 6.63%, 11/01/2020 | | | 148 | | | | 149 | |
| Deutsche Bank Capital Funding Trust VII | | | | | | | | |
| 5.63%, 01/29/2049 — 144A * Ž | | | 27 | | | | 21 | |
| DJO Finance LLC | | | | | | | | |
| 9.75%, 10/15/2017 | | | 50 | | | | 41 | |
| EH Holding Corp. | | | | | | | | |
| 6.50%, 06/15/2019 — 144A | | | 48 | | | | 49 | |
| 7.63%, 06/15/2021 — 144A | | | 89 | | | | 92 | |
| Ford Motor Credit Co., LLC | | | | | | | | |
| 6.63%, 08/15/2017 | | | 112 | | | | 123 | |
| 7.00%, 04/15/2015 | | | 100 | | | | 109 | |
| Hertz Corp. | | | | | | | | |
| 7.50%, 10/15/2018 | | | 21 | | | | 22 | |
| HSBC Finance Corp. | | | | | | | | |
| 6.68%, 01/15/2021 | | | 97 | | | | 99 | |
| Linn Energy LLC | | | | | | | | |
| 7.75%, 02/01/2021 | | | 214 | | | | 228 | |
| Morgan Stanley | | | | | | | | |
| 3.80%, 04/29/2016^ | | | 275 | | | | 266 | |
| NRG Energy, Inc. | | | | | | | | |
| 8.25%, 09/01/2020 | | | 110 | | | | 114 | |
| Phibro Animal Health Corp. | | | | | | | | |
| 9.25%, 07/01/2018 — 144A | | | 52 | | | | 48 | |
| Reliance Holdings USA, Inc. | | | | | | | | |
| 4.50%, 10/19/2020 — 144A | | | 294 | | | | 285 | |
| SunGard Data Systems, Inc. | | | | | | | | |
| 7.38%, 11/15/2018 | | | 241 | | | | 246 | |
| Texas Industries, Inc. | | | | | | | | |
| 9.25%, 08/15/2020 | | | 367 | | | | 334 | |
| Valeant Pharmaceuticals International, Inc. | | | | | | | | |
| 6.75%, 10/01/2017 — 144A | | | 114 | | | | 114 | |
| | | | | | | | |
Total Corporate Debt Securities (cost $11,465) | | | | | | | 11,782 | |
| | | | | | | | |
| | | | | | | | | |
CONVERTIBLE BONDS — 4.1% | | | | | | | | |
Bermuda — 0.0% ∞ | | | | | | | | |
| Celestial Nutrifoods, Ltd. | | | | | | | | |
| Zero Coupon, 06/12/2011 Џ § | | SGD 1,400 | | | 33 | |
Canada — 0.2% | | | | | | | | |
| Daylight Energy, Ltd. | | | | | | | | |
| 6.25%, 12/31/2014 | | CAD 223 | | | 245 | |
| Petrobakken Energy, Ltd. | | | | | | | | |
| 3.13%, 02/08/2016 — Reg S | | $ | 700 | | | | 616 | |
Cayman Islands — 0.4% | | | | | | | | |
| China Milk Products Group, Ltd. | | | | | | | | |
| Zero Coupon, 01/05/2012 § | | | 600 | | | | 120 | |
| FU JI Food and Catering Services Holdings, Ltd. | | | | | | | | |
| Zero Coupon, 10/18/2010 Џ § | | CNY 2,700 | | | 64 | |
| Pyrus, Ltd. | | | | | | | | |
| 7.50%, 12/20/2015 — 144A § | | | 500 | | | | 494 | |
| Zeus Cayman | | | | | | | | |
| Zero Coupon, 08/19/2013 | | JPY 70,000 | | | 883 | |
| Zeus Cayman II | | | | | | | | |
| 1.59%, 08/18/2016 ▲ § | | | 24,000 | | | | 296 | |
China — 0.1% | | | | | | | | |
| China Petroleum & Chemical Corp. | | | | | | | | |
| 3.21%, 04/24/2014 ▲ | | HKD 3,540 | | | 510 | |
India — 0.5% | | | | | | | | |
| REI Agro, Ltd. | | | | | | | | |
| 5.50%, 11/13/2014 — 144A § | | | 640 | | | | 610 | |
| Suzlon Energy, Ltd. | | | | | | | | |
| Zero Coupon, 06/12/2012 | | | 275 | | | | 349 | |
| Zero Coupon, 07/25/2014 § | | | 342 | | | | 295 | |
| 25.75%, 10/11/2012 ▲ | | | 300 | | | | 345 | |
| Tata Steel, Ltd. | | | | | | | | |
| 1.00%, 09/05/2012 | | | 200 | | | | 239 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 212 | | Annual Report 2011 |
Transamerica BkackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Principal
(000’s) | | | Value
(000’s) | |
| |
Jersey, Channel Islands — 0.5% | | | | | | | | |
| Aldar Funding, Ltd. | | | | | | | | |
| 5.77%, 11/10/2011 | | $ | 225 | | | $ | 224 | |
| Dana Gas Sukuk, Ltd. | | | | | | | | |
| 7.50%, 10/31/2012 ^ | | | 1,940 | | | | 1,639 | |
Luxembourg — 0.0% ∞ | | | | | | | | |
| Subsea 7 SA | | | | | | | | |
| 2.25%, 10/11/2013 | | | 100 | | | | 116 | |
Malaysia — 0.1% | | | | | | | | |
| IOI Capital Bhd | | | | | | | | |
| Zero Coupon, 12/18/2011 | | | 445 | | | | 579 | |
| Paka Capital, Ltd. | | | | | | | | |
| 3.87%, 03/12/2013 ▲ | | | 200 | | | | 197 | |
Netherlands — 0.3% | | | | | | | | |
| Bio City Development Co. B.V. | | | | | | | | |
| 8.00%, 07/06/2018 — 144A § | | | 1,200 | | | | 1,200 | |
Singapore — 1.0% | | | | | | | | |
| Capitaland, Ltd. | | | | | | | | |
| 2.10%, 11/15/2016 | | | SGD500 | | | | 390 | |
| 2.95%, 06/20/2022 | | | 1,250 | | | | 928 | |
| 3.13%, 03/05/2018 | | | 1,250 | | | | 1,023 | |
| Keppel Land, Ltd. | | | | | | | | |
| 2.50%, 06/23/2013 | | | 200 | | | | 160 | |
| Olam International, Ltd. | | | | | | | | |
| 6.00%, 10/15/2016 | | $ | 500 | | | | 599 | |
| Wilmar International, Ltd. | | | | | | | | |
| Zero Coupon, 12/18/2012 | | | 300 | | | | 376 | |
| Yanlord Land Group, Ltd. | | | | | | | | |
| 5.85%, 07/13/2014 | | | SGD250 | | | | 199 | |
| Ying Li International Real Estate, Ltd. | | | | | | | | |
| 4.00%, 03/03/2015 § | | | 750 | | | | 508 | |
United Kingdom — 0.1% | | | | | | | | |
| Anglo American PLC | | | | | | | | |
| 4.00%, 05/07/2014 — Reg S | | $ | 100 | | | | 146 | |
| Essar Energy PLC | | | | | | | | |
| 4.25%, 02/01/2016 | | | 500 | | | | 357 | |
United States — 0.9% | | | | | | | | |
| Advanced Micro Devices, Inc. | | | | | | | | |
| 6.00%, 05/01/2015 | | | 399 | | | | 391 | |
| Amylin Pharmaceuticals, Inc. | | | | | | | | |
| 3.00%, 06/15/2014 | | | 336 | | | | 301 | |
| Electronic Arts, Inc. | | | | | | | | |
| 0.75%, 07/15/2016 — 144A ^ | | | 395 | | | | 402 | |
| Gilead Sciences, Inc. | | | | | | | | |
| 0.63%, 05/01/2013 | | | 435 | | | | 514 | |
| 1.63%, 05/01/2016 | | | 29 | | | | 33 | |
| Hologic, Inc. | | | | | | | | |
| 2.00%, 12/15/2037 * ^ | | | 727 | | | | 772 | |
| LAM Research Corp. | | | | | | | | |
| 1.25%, 05/15/2018 — 144A | | | 25 | | | | 25 | |
| Mylan, Inc. | | | | | | | | |
| 3.75%, 09/15/2015 | | | 409 | | | | 661 | |
| SM Energy Co. | | | | | | | | |
| 3.50%, 04/01/2027 | | | 232 | | | | 363 | |
| | | | | | | | |
Total Convertible Bonds (cost $17,690) | | | | | | | 17,202 | |
| | | | | | | | |
| | | | | | | | | |
|
LOAN ASSIGNMENTS — 0.4% | | | | | | | | |
Mexico — 0.1% | | | | | | | | |
| Financiera URBI, S.A. | | | | | | | | |
| 3.49%, 04/12/2012 § | | | 330 | | | | 325 | |
United States — 0.3% | | | | | | | | |
| Obsidian Natural Gas Trust | | | | | | | | |
| 7.00%, 11/02/2015 * § Δ | | | 1,063 | | | | 1,063 | |
| Vodafone Americas Finance, Tranche B 6.25%, 07/11/2016 Ə § | | | 374 | | | | 374 | |
| | | | | | | | |
Total Loan Assignments (cost $1,757) | | | | | | | 1,762 | |
| | | | | | | | |
| | | | | | | | | |
SHORT-TERM FOREIGN GOVERNMENT OBLIGATIONS — 0.7% | | | | | | | | |
Malaysia — 0.3% | | | | | | | | |
| Bank Negara Malaysia Monetary Notes | | | | | | | | |
| 3.02%, 03/01/2012 ▲ Δ | | MYR4,038 | | | 1,304 | |
Mexico — 0.2% | | | | | | | | |
| Mexico Cetes | | | | | | | | |
| 4.58%, 02/09/2012 ▲ | | MXN11,088 | | | 822 | |
Singapore — 0.2% | | | | | | | | |
| Singapore Treasury Bill | | | | | | | | |
| 0.30%, 02/02/2012 ▲ | | | SGD993 | | | | 791 | |
| | | | | | | | |
Total Short-Term Foreign Government Obligations (cost $2,985) | | | | | | | 2,917 | |
| | | | | | | | |
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS — 6.9% | | | | | | | | |
| U.S. Treasury Bill | | | | | | | | |
| 0.00%, 01/05/2012 — 01/12/2012 ^ ▲ | | $ | 5,755 | | | | 5,755 | |
| 0.01%, 12/01/2011 — 02/23/2012 ^ ▲ | | | 14,095 | | | | 14,094 | |
| 0.02%, 03/01/2012 ^ ▲ | | | 3,770 | | | | 3,770 | |
| 0.02%, 03/08/2012 ▲ | | | 600 | | | | 600 | |
| 0.03%, 03/15/2012 — 03/22/2012 ^ ▲ | | | 5,025 | | | | 5,025 | |
| | | | | | | | |
Total Short-Term U.S. Government Obligations (cost $29,244) | | | | | | | 29,244 | |
| | | | | | | | |
| | | | | | | | | |
| | | Shares | | | Value
(000’s) | |
| |
CONVERTIBLE PREFERRED STOCKS — 0.1% | | | | | | | | |
Bermuda — 0.0% ∞ | | | | | | | | |
| Bunge, Ltd., 4.88% | | | 740 | | | | 73 | |
United States — 0.1% | | | | | | | | |
| Crown Castle International Corp., 6.25% | | | 1,830 | | | | 106 | |
| Wells Fargo & Co., 7.50% | | | 185 | | | | 195 | |
| | | | | | | | |
Total Convertible Preferred Stocks (cost $344) | | | | | | | 374 | |
| | | | | | | | |
| | | | | | | | | |
PREFERRED STOCKS — 1.7% | | | | | | | | |
Brazil — 0.5% | | | | | | | | |
| Cia Brasileira de Distribuicao Grupo Pao de | | | | | | | | |
| Acucar, 1.10% ▲ | | | 19,008 | | | | 725 | |
| Itau Unibanco Holding SA, 3.09% ▲ | | | 16,900 | | | | 322 | |
| Usinas Siderurgicas de Minas Gerais SA, | | | | | | | | |
| 2.88% ▲ | | | 9,000 | | | | 62 | |
| Vale SA, 7.07% ▲ | | | 28,500 | | | | 677 | |
Germany — 0.2% | | | | | | | | |
| Volkswagen AG, 1.78% ▲ | | | 5,890 | | | | 1,025 | |
Switzerland — 0.0% ∞ | | | | | | | | |
| UBS AG, 9.38% ^ | | | 12,850 | | | | 202 | |
United Kingdom — 0.1% | | | | | | | | |
| HSBC Holdings PLC, 8.00% ^ | | | 13,400 | | | | 359 | |
United States — 0.9% | | | | | | | | |
| Chesapeake Energy Corp., 5.75% — 144A | | | 933 | | | | 1,129 | |
The notes to the financial statements are an integral part of this report.
| | | | | |
| Transamerica Funds | | Page 213 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
United States (continued) | | | | | | | | |
| Citigroup Capital XIII, 7.88% * | | | 12,232 | | | $ | 329 | |
| General Motors Co., 4.75% | | | 12,950 | | | | 538 | |
| GMAC Capital Trust I, 8.13% * | | | 26,000 | | | | 546 | |
| Health Care REIT, Inc., 6.50% | | | 5,650 | | | | 285 | |
| Omnicare Capital Trust II, 4.00% | | | 3,800 | | | | 160 | |
| PPL Corp., 8.75% | | | 5,800 | | | | 317 | |
| PPL Corp., 9.50% | | | 5,700 | | | | 324 | |
| SandRidge Energy, Inc., 7.00% — 144A | | | 2,400 | | | | 284 | |
| Wachovia Capital Trust IV, 6.38%^ | | | 1,075 | | | | 27 | |
| | | | | | | | |
Total Preferred Stocks (cost $6,819) | | | | | | | 7,311 | |
| | | | | | | | |
| | | | | | | | | |
COMMON STOCKS — 63.0% | | | | | | | | |
Argentina — 0.0% ∞; | | | | | | | | |
| Banco Macro SA ADR | | | 1,700 | | | | 34 | |
| Cresud SACIF y A ADR | | | 4,500 | | | | 52 | |
| IRSA Inversiones y Representaciones SA ADR | | | 5,400 | | | | 54 | |
| Pampa Energia SA ADR^ | | | 5,500 | | | | 69 | |
| Telecom Argentina SA ADR^ | | | 1,700 | | | | 34 | |
Australia — 1.2% | | | | | | | | |
| Asciano, Ltd. | | | 123,700 | | | | 198 | |
| BHP Billiton, Ltd. | | | 46,889 | | | | 1,835 | |
| CSL, Ltd. | | | 13,554 | | | | 408 | |
| Newcrest Mining, Ltd. | | | 37,223 | | | | 1,316 | |
| Orica, Ltd. | | | 6,900 | | | | 187 | |
| Rio Tinto, Ltd. | | | 14,792 | | | | 1,062 | |
| Telstra Corp., Ltd. | | | 68,446 | | | | 222 | |
| Woodside Petroleum, Ltd. | | | 4,900 | | | | 187 | |
Austria — 0.0% ∞ | | | | | | | | |
| Telekom Austria AG | | | 7,696 | | | | 87 | |
Belgium — 0.0% ∞ | | | | | | | | |
| RHJ International — 144A ‡ | | | 17,100 | | | | 83 | |
| RHJ International ‡ | | | 36,300 | | | | 175 | |
Bermuda — 0.8% | | | | | | | | |
| Arch Capital Group, Ltd. ‡ ^ | | | 6,200 | | | | 223 | |
| Axis Capital Holdings, Ltd. | | | 1,456 | | | | 46 | |
| Cheung Kong Infrastructure Holdings, Ltd. | | | 40,300 | | | | 216 | |
| China Resources Gas Group, Ltd. | | | 144,000 | | | | 209 | |
| Cosan, Ltd. — Class A | | | 47,800 | | | | 574 | |
| Endurance Specialty Holdings, Ltd. | | | 7,102 | | | | 264 | |
| Freescale Semiconductor Holdings I, Ltd. ‡ ^ | | | 33,400 | | | | 441 | |
| Marvell Technology Group, Ltd. ‡ ■ | | | 16,110 | | | | 225 | |
| Noble Group, Ltd. ^ | | | 69,405 | | | | 85 | |
| Platinum Underwriters Holdings, Ltd. ^ | | | 3,389 | | | | 117 | |
| RenaissanceRe Holdings, Ltd. ^ | | | 3,412 | | | | 232 | |
| Validus Holdings, Ltd. | | | 5,061 | | | | 138 | |
| VimpelCom, Ltd. ADR | | | 24,200 | | | | 266 | |
Brazil — 1.4% | | | | | | | | |
| All America Latina Logistica SA | | | 19,530 | | | | 97 | |
| Cia Energetica de Minas Gerais ADR ^ | | | 11,563 | | | | 197 | |
| Cyrela Brazil Realty SA Empreendimentos e Participacoes | | | 37,700 | | | | 329 | |
| Hypermarcas SA | | | 95,200 | | | | 512 | |
| MRV Engenharia e Participacoes SA | | | 44,200 | | | | 312 | |
| OGX Petroleo e Gas Participacoes SA ‡ | | | 18,400 | | | | 152 | |
| Petroleo Brasileiro SA — Class A ADR | | | 100,452 | | | | 2,539 | |
| Qualicorp SA ‡ | | | 29,300 | | | | 268 | |
| SLC Agricola SA | | | 30,400 | | | | 302 | |
| Telefonica Brasil SA ADR | | | 38,630 | | | | 1,121 | |
Canada — 2.9% | | | | | | | | |
| Agnico-Eagle Mines, Ltd. | | | 12,300 | | | | 534 | |
| Alamos Gold, Inc.^ | | | 23,650 | | | | 438 | |
| Barrick Gold Corp. | | | 26,385 | | | | 1,306 | |
| BCE, Inc. | | | 1,100 | | | | 44 | |
| Brookfield Asset Management, Inc. — Class A^ | | | 11,500 | | | | 334 | |
| Canadian Natural Resources, Ltd. | | | 15,300 | | | | 541 | |
| Canadian Pacific Railway, Ltd. | | | 11,694 | | | | 723 | |
| Detour Gold Corp. ‡ | | | 9,500 | | | | 315 | |
| Eldorado Gold Corp. | | | 54,127 | | | | 1,017 | |
| Goldcorp, Inc. | | | 43,859 | | | | 2,142 | |
| Iamgold Corp. | | | 45,725 | | | | 983 | |
| Katanga Mining, Ltd. ‡ ^ | | | 54,082 | | | | 77 | |
| Kinross Gold Corp. | | | 59,834 | | | | 855 | |
| Magna International, Inc. — Class A^ | | | 1,000 | | | | 38 | |
| Osisko Mining Corp.‡ | | | 22,200 | | | | 268 | |
| Potash Corp., of Saskatchewan, Inc. | | | 8,560 | | | | 405 | |
| Rogers Communications, Inc. — Class B | | | 9,400 | | | | 342 | |
| Silver Wheaton Corp. | | | 19,200 | | | | 664 | |
| Sino-Forest Corp. — Class A‡Ə^ | | | 20,700 | | | | 28 | |
| Suncor Energy, Inc. | | | 19,425 | | | | 619 | |
| Talisman Energy, Inc. | | | 18,870 | | | | 268 | |
| Teck Resources, Ltd. — Class B | | | 910 | | | | 36 | |
| TELUS Corp. | | | 3,170 | | | | 171 | |
| Valeant Pharmaceuticals International, Inc.■ | | | 4,600 | | | | 182 | |
| Viterra, Inc. | | | 5,100 | | | | 52 | |
Cayman Islands — 0.1% | | | | | | | | |
| Chaoda Modern Agriculture Holdings, Ltd. Ə | | | 1,090,190 | | | | 154 | |
| Haitian International Holdings, Ltd. | | | 86,800 | | | | 77 | |
| Herbalife, Ltd. | | | 1,200 | | | | 75 | |
| Mindray Medical International, Ltd. ADR^ | | | 2,200 | | | | 60 | |
| Mongolian Mining Corp. ‡ | | | 116,000 | | | | 103 | |
| Tianjin Port Development Holdings, Ltd. | | | 1,103,100 | | | | 157 | |
| Yuanda China Holdings, Ltd. ‡ | | | 1,119,800 | | | | 162 | |
| Zhongsheng Group Holdings, Ltd. | | | 127,000 | | | | 225 | |
Chile — 0.1% | | | | | | | | |
| Sociedad Quimica y Minera de Chile SA ADR | | | 3,800 | | | | 222 | |
China — 0.4% | | | | | | | | |
| China BlueChemical, Ltd. | | | 259,800 | | | | 205 | |
| China Life Insurance Co., Ltd. ADR | | | 4,202 | | | | 163 | |
| China Shenhua Energy Co., Ltd. — Class H | | | 54,952 | | | | 251 | |
| China Telecom Corp., Ltd. | | | 278,300 | | | | 171 | |
| CSR Corp., Ltd. | | | 87,200 | | | | 52 | |
| Dongfang Electric Corp., Ltd. | | | 76,700 | | | | 237 | |
| Dongfeng Motor Group Co., Ltd. — Class H | | | 77,000 | | | | 126 | |
| Guangshen Railway Co., Ltd. | | | 338,500 | | | | 118 | |
| Guangzhou Automobile Group Co., Ltd. | | | 183,586 | | | | 183 | |
| Huaneng Power International, Inc. — Class H | | | 356,100 | | | | 159 | |
| Jiangsu Expressway Co., Ltd. — Class H | | | 147,200 | | | | 126 | |
| Ping An Insurance Group Co. — Class H | | | 18,238 | | | | 135 | |
| Shanghai Electric Group Co., Ltd. — Class H | | | 541,300 | | | | 239 | |
The notes to the financial statements are an integral part of this report.
| | | | | |
| Transamerica Funds | | Page 214 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
China (continued) | | | | | | | | |
| Shanghai Pharmaceuticals Holding Co., Ltd. ‡ | | | 105,000 | | | $ | 200 | |
| Sinopharm Group Co., Ltd. — Class H | | | 126,100 | | | | 339 | |
| Xiamen International Port Co., Ltd. — Class H | | | 43,900 | | | | 6 | |
Egypt — 0.1% | | | | | | | | |
| Telecom Egypt Co. | | | 98,268 | | | | 245 | |
France — 1.2% | | | | | | | | |
| ATOS | | | 2,200 | | | | 106 | |
| BNP Paribas SA | | | 8,670 | | | | 387 | |
| Cie Generale D’optique Essilor International SA | | | 9,401 | | | | 679 | |
| France Telecom SA | | | 20,167 | | | | 363 | |
| GDF Suez | | | 4,200 | | | | 118 | |
| LVMH Moet Hennessy Louis Vuitton SA | | | 3,560 | | | | 589 | |
| Sanofi | | | 7,640 | | | | 547 | |
| Sanofi ADR | | | 1,261 | | | | 45 | |
| Technip SA | | | 1,860 | | | | 176 | |
| Total SA | | | 18,116 | | | | 945 | |
| Total SA ADR ^ | | | 18,400 | | | | 962 | |
| Vivendi SA | | | 10,870 | | | | 243 | |
Germany — 2.1% | | | | | | | | |
| Allianz SE | | | 4,536 | | | | 505 | |
| BASF SE | | | 24,270 | | | | 1,771 | |
| Bayer AG | | | 11,881 | | | | 757 | |
| Bayerische Motoren Werke AG | | | 4,310 | | | | 350 | |
| Beiersdorf AG | | | 1,060 | | | | 61 | |
| Daimler AG | | | 11,800 | | | | 599 | |
| Deutsche Bank AG | | | 5,650 | | | | 234 | |
| Deutsche Telekom AG | | | 41,700 | | | | 530 | |
| Deutsche Telekom AG ADR ^ | | | 2,300 | | | | 29 | |
| Fresenius Medical Care AG & Co., KGaA | | | 11,262 | | | | 820 | |
| Infineon Technologies AG | | | 35,790 | | | | 322 | |
| Kabel Deutschland Holding AG ‡ | | | 6,130 | | | | 348 | |
| Lanxess AG | | | 7,550 | | | | 441 | |
| Muenchener Rueckversicherungs AG | | | 1,620 | | | | 217 | |
| Siemens AG | | | 15,010 | | | | 1,573 | |
| SMA Solar Technology AG ^ | | | 1,200 | | | | 72 | |
Guernsey, Channel Islands — 0.0% ∞ | | | | | | | | |
| Amdocs, Ltd. ‡ | | | 1,736 | | | | 52 | |
Hong Kong — 1.1% | | | | | | | | |
| AIA Group, Ltd. | | | 52,500 | | | | 161 | |
| Beijing Enterprises Holdings, Ltd. | | | 168,220 | | | | 934 | |
| Cheung Kong Holdings, Ltd. | | | 21,500 | | | | 266 | |
| China Mobile, Ltd. | | | 30,000 | | | | 285 | |
| China Resources Power Holdings Co., Ltd. | | | 160,000 | | | | 285 | |
| China Unicom, Ltd. | | | 110,400 | | | | 222 | |
| Hutchison Whampoa, Ltd. | | | 37,800 | | | | 345 | |
| Link Real Estate Investment Trust | | | 218,467 | | | | 750 | |
| Tianjin Development Holdings, Ltd. ‡ | | | 718,300 | | | | 331 | |
| Wharf Holdings, Ltd. | | | 55,277 | | | | 294 | |
India — 0.6% | | | | | | | | |
| Adani Enterprises, Ltd. | | | 30,600 | | | | 299 | |
| Adani Power, Ltd. ‡ | | | 137,501 | | | | 247 | |
| Bharat Heavy Electricals, Ltd. | | | 78,700 | | | | 510 | |
| Housing Development Finance Corp. | | | 48,420 | | | | 681 | |
| Larsen & Toubro, Ltd. | | | 6,200 | | | | 178 | |
| Reliance Industries, Ltd. | | | 24,070 | | | | 430 | |
| State Bank of India | | | 8,570 | | | | 333 | |
Indonesia — 0.1% | | | | | | | | |
| Bumi Resources PT | | | 1,210,301 | | | | 316 | |
| Telekomunikasi Indonesia PT | | | 138,300 | | | | 115 | |
Ireland — 0.5% | | | | | | | | |
| Accenture PLC — Class A | | | 1,032 | | | | 62 | |
| Covidien PLC | | | 6,212 | | | | 292 | |
Seagate Technology PLC ^ n | | | 21,900 | | | | 354 | |
| XL Group PLC — Class A | | | 50,790 | | | | 1,104 | |
Israel — 0.2% | | | | | | | | |
| Check Point Software Technologies, Ltd. ‡ | | | 1,100 | | | | 63 | |
Teva Pharmaceutical Industries, Ltd. ADR n | | | 23,880 | | | | 975 | |
Italy — 0.4% | | | | | | | | |
| Assicurazioni Generali SpA | | | 7,520 | | | | 135 | |
| ENI SpA | | | 41,020 | | | | 907 | |
| Fiat Industrial SpA ‡ | | | 26,200 | | | | 228 | |
| Intesa Sanpaolo SpA | | | 151,910 | | | | 268 | |
| Telecom Italia SpA | | | 106,440 | | | | 132 | |
Japan — 7.4% | | | | | | | | |
| Aisin Seiki Co., Ltd. | | | 6,930 | | | | 219 | |
| Asahi Kasei Corp. | | | 44,800 | | | | 266 | |
| Astellas Pharma, Inc. | | | 5,900 | | | | 216 | |
| Bridgestone Corp. | | | 14,100 | | | | 331 | |
| Canon, Inc. | | | 17,364 | | | | 788 | |
| Daihatsu Motor Co., Ltd. ^ | | | 17,780 | | | | 313 | |
| Daiwa House Industry Co., Ltd. | | | 16,970 | | | | 213 | |
| Denso Corp. | | | 9,370 | | | | 288 | |
| East Japan Railway Co. | | | 17,223 | | | | 1,044 | |
| Fanuc Corp. | | | 2,350 | | | | 380 | |
| Fuji Heavy Industries, Ltd. | | | 108,420 | | | | 688 | |
| Futaba Industrial Co., Ltd. ^ | | | 16,300 | | | | 104 | |
| Hitachi Chemical Co., Ltd. ^ | | | 14,200 | | | | 252 | |
| Hitachi, Ltd. | | | 43,300 | | | | 232 | |
| Honda Motor Co., Ltd. | | | 22,282 | | | | 666 | |
| Hoya Corp. ^ | | | 24,289 | | | | 531 | |
| INPEX Corp. | | | 146 | | | | 964 | |
| JGC Corp. | | | 24,910 | | | | 703 | |
| JSR Corp. ^ | | | 9,900 | | | | 189 | |
| KDDI Corp. | | | 101 | | | | 740 | |
| Kinden Corp. | | | 16,600 | | | | 136 | |
| Kirin Holdings Co., Ltd. | | | 34,100 | | | | 417 | |
| Komatsu, Ltd. ^ | | | 11,600 | | | | 287 | |
| Kubota Corp. ^ | | | 83,584 | | | | 689 | |
| Kuraray Co., Ltd. ^ | | | 23,930 | | | | 335 | |
| Kyowa Hakko Kirin Co., Ltd. | | | 31,180 | | | | 351 | |
| Marubeni Corp. | | | 60,100 | | | | 350 | |
| Mitsubishi Corp. | | | 58,620 | | | | 1,205 | |
| Mitsubishi Tanabe Pharma Corp. | | | 12,000 | | | | 208 | |
| Mitsubishi UFJ Financial Group, Inc. ^ | | | 89,320 | | | | 388 | |
| Mitsui & Co., Ltd. | | | 69,532 | | | | 1,015 | |
| Mitsui Fudosan Co., Ltd. | | | 10,500 | | | | 175 | |
| Mitsui O.S.K. Lines, Ltd. ^ | | | 33,140 | | | | 128 | |
| MS&AD Insurance Group Holdings | | | 28,017 | | | | 549 | |
| Murata Manufacturing Co., Ltd. ^ | | | 7,050 | | | | 394 | |
| NGK Insulators, Ltd. | | | 13,900 | | | | 160 | |
| Nippon Building Fund, Inc. REIT | | | 12 | | | | 116 | |
| Nippon Electric Glass Co., Ltd. ^ | | | 23,600 | | | | 212 | |
| Nippon Telegraph & Telephone Corp. | | | 14,830 | | | | 761 | |
| NKSJ Holdings, Inc. | | | 19,299 | | | | 386 | |
| NTT DoCoMo, Inc. | | | 927 | | | | 1,647 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 215 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
Japan (continued) | | | | | | | | |
| NTT Urban Development Corp. ^ | | | 55 | | | $ | 38 | |
| Okumura Corp. ^ | | | 58,300 | | | | 230 | |
| Rinnai Corp. ^ | | | 3,980 | | | | 297 | |
| ROHM Co., Ltd. ^ | | | 4,860 | | | | 248 | |
| Sekisui House, Ltd. | | | 10,900 | | | | 98 | |
| Shin-Etsu Chemical Co., Ltd. | | | 19,476 | | | | 1,000 | |
| Shionogi & Co., Ltd. | | | 6,620 | | | | 90 | |
| Sony Financial Holdings, Inc. ^ | | | 11,500 | | | | 191 | |
| Sumitomo Chemical Co., Ltd. ^ | | | 181,920 | | | | 671 | |
| Sumitomo Electric Industries, Ltd. | | | 12,800 | | | | 142 | |
| Sumitomo Mitsui Financial Group, Inc. | | | 10,180 | | | | 285 | |
| Suzuki Motor Corp. | | | 48,662 | | | | 1,033 | |
| TDK Corp. ^ | | | 5,520 | | | | 225 | |
| Terumo Corp. | | | 4,850 | | | | 246 | |
| Toda Corp. | | | 56,900 | | | | 202 | |
| Toho Co., Ltd. ^ | | | 9,881 | | | | 170 | |
| Tokio Marine Holdings, Inc. | | | 44,900 | | | | 1,071 | |
| Tokyo Gas Co., Ltd. | | | 125,370 | | | | 540 | |
| Toyota Industries Corp. | | | 25,037 | | | | 704 | |
| Toyota Motor Corp. | | | 12,170 | | | | 404 | |
| UBE Industries, Ltd. | | | 125,000 | | | | 366 | |
| West Japan Railway Co. | | | 8,200 | | | | 347 | |
| Yahoo! Japan Corp. ^ | | | 700 | | | | 225 | |
| Yamada Denki Co., Ltd. ^ | | | 3,800 | | | | 273 | |
Jersey, Channel Islands — 0.5% | | | | | | | | |
| Glencore International PLC ^ | | | 30,300 | | | | 212 | |
| Polyus Gold International, Ltd. GDR ‡ | | | 189,050 | | | | 620 | |
| Randgold Resources, Ltd. ADR ^ | | | 7,100 | | | | 778 | |
| Vallares PLC ‡ Ə | | | 27,200 | | | | 435 | |
Kazakhstan — 0.1% | | | | | | | | |
| KazMunaiGas Exploration Production GDR | | | 30,500 | | | | 519 | |
Korea, Republic of — 0.7% | | | | | | | | |
| Cheil Industries, Inc. | | | 2,500 | | | | 221 | |
| Hyundai Motor Co. | | | 2,200 | | | | 443 | |
| KT Corp. | | | 1,400 | | | | 47 | |
| KT Corp. ADR | | | 18,540 | | | | 309 | |
| KT&G Corp. | | | 6,010 | | | | 377 | |
| LG Corp. | | | 3,600 | | | | 211 | |
| Mando Corp. | | | 500 | | | | 86 | |
| POSCO | | | 600 | | | | 208 | |
| POSCO ADR | | | 2,700 | | | | 232 | |
| Samsung Electronics Co., Ltd. | | | 1,250 | | | | 1,076 | |
| Samsung Fine Chemicals Co., Ltd. | | | 3,100 | | | | 149 | |
| SK Telecom Co., Ltd. | | | 382 | | | | 51 | |
Luxembourg — 0.1% | | | | | | | | |
| Millicom International Cellular SA | | | 600 | | | | 66 | |
| Tenaris SA ADR ^ | | | 6,745 | | | | 215 | |
Malaysia — 0.5% | | | | | | | | |
| Axiata Group Bhd | | | 508,512 | | | | 804 | |
| British American Tobacco Malaysia Bhd ‡ | | | 10,100 | | | | 152 | |
| IOI Corp., Bhd | | | 47,398 | | | | 81 | |
| Plus Expressways Bhd | | | 240,981 | | | | 347 | |
| Telekom Malaysia Bhd | | | 387,524 | | | | 534 | |
| YTL Power International Bhd | | | 494,305 | | | | 306 | |
Mexico — 0.1% | | | | | | | | |
| America Movil SAB de CV ADR | | | 22,900 | | | | 582 | |
| Fomento Economico Mexicano | | | | | | | | |
| SAB de CV ADR | | | 2,500 | | | | 168 | |
Netherlands — 0.3% | | | | | | | | |
| ASML Holding NV | | | 5,500 | | | | 231 | |
| CNH Global NV ‡ ^ | | | 1,300 | | | | 48 | |
| ING Groep NV ‡ | | | 22,900 | | | | 197 | |
| Koninklijke Philips Electronics NV | | | 26,580 | | | | 553 | |
| Lyondellbasell Industries NV — Class A | | | 1,300 | | | | 43 | |
| Unilever NV | | | 3,400 | | | | 117 | |
| Unilever NV — CVA | | | 9,320 | | | | 322 | |
Netherland Antilles — 0.2% | | | | | | | | |
| Schlumberger, Ltd. | | | 20,080 | | | | 1,474 | |
Norway — 0.2% | | | | | | | | |
| DnB NOR ASA ‡ | | | 36,900 | | | | 427 | |
| Statoil ASA | | | 19,780 | | | | 502 | |
| Telenor ASA | | | 5,210 | | | | 93 | |
Panama — 0.1% | | | | | | | | |
| McDermott International, Inc. ‡ | | | 22,342 | | | | 245 | |
Philippines — 0.0% ∞ | | | | | | | | |
| Philippine Long Distance Telephone Co. ADR | | | 3,100 | | | | 172 | |
Poland — 0.0% ∞ | | | | | | | | |
| Powszechny Zaklad Ubezpieczen SA | | | 600 | | | | 64 | |
Portugal — 0.0% ∞ | | | | | | | | |
| Zon Multimedia | | | 33,200 | | | | 103 | |
Russian Federation — 0.7% | | | | | | | | |
| Federal Hydrogenerating Co. JSC Δ | | | 1,697,146 | | | | 60 | |
| Federal Hydrogenerating Co. JSC ADR | | | 179,167 | | | | 675 | |
| Kuzbassrazrezugol | | | 435,660 | | | | 111 | |
| LSR Group — 144A GDR | | | 60,800 | | | | 291 | |
| Magnitogorsk Iron & Steel Works GDR | | | 31,500 | | | | 194 | |
| Novorossiysk Commercial Sea Port PJSC GDR | | | 30,812 | | | | 249 | |
| Rosneft Oil Co. GDR | | | 58,600 | | | | 415 | |
| Sberbank of Russian Federation | | | 343,300 | | | | 942 | |
| Uralkali OJSC GDR | | | 800 | | | | 34 | |
Singapore — 0.5% | | | | | | | | |
| Capitaland, Ltd. | | | 164,150 | | | | 353 | |
| DBS Group Holdings, Ltd. | | | 17,770 | | | | 174 | |
| Fraser and Neave, Ltd. ^ | | | 83,300 | | | | 406 | |
| Global Logistic Properties, Ltd. — Class L ‡ | | | 108,300 | | | | 151 | |
| Keppel Corp., Ltd. | | | 71,111 | | | | 532 | |
| MobileOne, Ltd. | | | 94,830 | | | | 185 | |
| Oversea-Chinese Banking Corp. ^ | | | 76,190 | | | | 510 | |
| Raffles Medical Group, Ltd. | | | 73,200 | | | | 130 | |
| SembCorp Marine, Ltd. ^ | | | 43,010 | | | | 143 | |
| Singapore Press Holdings, Ltd. ^ | | | 44,080 | | | | 136 | |
| Singapore Telecommunications, Ltd. | | | 220,350 | | | | 557 | |
| United Overseas Bank, Ltd. | | | 9,970 | | | | 135 | |
South Africa — 0.0% ∞ | | | | | | | | |
| AngloGold Ashanti, Ltd. ADR | | | 2,000 | | | | 90 | |
| Harmony Gold Mining Co., Ltd. ADR | | | 9,900 | | | | 130 | |
| Life Healthcare Group Holdings, Ltd. | | | 75,600 | | | | 183 | |
Spain — 0.3% | | | | | | | | |
| Banco Santander SA | | | 21,662 | | | | 183 | |
| Repsol YPF SA | | | 11,350 | | | | 342 | |
| Telefonica SA | | | 30,819 | | | | 655 | |
| Telefonica SA ADR ^ | | | 5,800 | | | | 124 | |
Sweden — 0.0% ∞ | | | | | | | | |
| Nordea Bank AB | | | 5,200 | | | | 47 | |
| SKF AB — Class B | | | 5,900 | | | | 131 | |
| Swedbank AB — Class A | | | 7,500 | | | | 105 | |
Switzerland — 1.7% | | | | | | | | |
ACE, Ltd. n | | | 17,446 | | | | 1,259 | |
| Cie Financiere Richemont SA | | | 4,000 | | | | 227 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 216 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
| Switzerland (continued) | | | | | | | | |
| Garmin, Ltd. ^ | | | 1,573 | | | $ | 54 | |
| Nestle SA | | | 21,967 | | | | 1,270 | |
| Novartis AG | | | 14,098 | | | | 794 | |
| Roche Holding AG | | | 3,165 | | | | 519 | |
| Swisscom AG | | | 1,010 | | | | 407 | |
| TE Connectivity, Ltd. | | | 3,132 | | | | 111 | |
| Transocean, Ltd. | | | 8,482 | | | | 485 | |
| UBS AG ‡ | | | 19,520 | | | | 247 | |
| Weatherford International, Ltd. ‡ | | | 18,646 | | | | 289 | |
| Zurich Financial Services AG ‡ | | | 1,251 | | | | 288 | |
| Taiwan — 0.6% | | | | | | | | |
| Cheng Shin Rubber Industry Co., Ltd. | | | 78,000 | | | | 178 | |
| Chunghwa Telecom Co., Ltd. | | | 87,116 | | | | 291 | |
| Chunghwa Telecom Co., Ltd. ADR ^ | | | 17,086 | | | | 575 | |
| Far Eas Tone Telecommunications Co., Ltd. | | | 144,000 | | | | 236 | |
| High Tech Computer Corp. | | | 24,825 | | | | 558 | |
| Hon Hai Precision Industry Co., Ltd. | | | 59,046 | | | | 162 | |
| Taiwan Semiconductor Manufacturing Co., Ltd. | | | 147,888 | | | | 360 | |
| Yulon Motor Co., Ltd. | | | 120,000 | | | | 252 | |
| Thailand — 0.3% | | | | | | | | |
| Hana Microelectronics PCL | | | 61,858 | | | | 33 | |
| PTT PCL | | | 29,197 | | | | 291 | |
| PTT Global Chemical PCL ‡ | | | 228,637 | | | | 487 | |
| Siam Commercial Bank PCL | | | 100,875 | | | | 385 | |
| Turkey — 0.4% | | | | | | | | |
| Bim Birlesik Magazalar AS | | | 7,900 | | | | 240 | |
| Tupras Turkiye Petrol Rafinerileri AS | | | 9,762 | | | | 220 | |
| Turk Telekomunikasyon AS | | | 52,580 | | | | 223 | |
| Turkcell Iletisim Hizmetleri As | | | 23,747 | | | | 117 | |
| Turkiye Garanti Bankasi AS | | | 70,936 | | | | 249 | |
| United Kingdom — 2.7% | | | | | | | | |
| Amlin PLC | | | 13,600 | | | | 63 | |
| Anglo American PLC | | | 12,100 | | | | 444 | |
| Antofagasta PLC | | | 30,000 | | | | 558 | |
| AstraZeneca PLC ADR | | | 900 | | | | 43 | |
| BG Group PLC | | | 72,100 | | | | 1,563 | |
| BP PLC | | | 78,369 | | | | 577 | |
| BP PLC ADR | | | 16,100 | | | | 711 | |
| British American Tobacco PLC | | | 6,206 | | | | 285 | |
| British Sky Broadcasting Group PLC | | | 7,300 | | | | 82 | |
| BT Group PLC — Class A | | | 190,300 | | | | 574 | |
| Diageo PLC ADR | | | 12,438 | | | | 1,030 | |
| GlaxoSmithKline PLC ADR ^ | | | 1,400 | | | | 63 | |
| Guinness Peat Group PLC | | | 299,904 | | | | 150 | |
| HSBC Holdings PLC | | | 108,928 | | | | 951 | |
| International Power PLC | | | 147,100 | | | | 798 | |
| Lloyds TSB Group PLC ‡ | | | 367,016 | | | | 190 | |
| National Grid PLC | | | 94,000 | | | | 935 | |
| Petropavlovsk PLC | | | 5,200 | | | | 61 | |
| Rio Tinto PLC | | | 10,700 | | | | 579 | |
| Royal Dutch Shell PLC — Class A ADR | | | 9,651 | | | | 684 | |
| SSE PLC | | | 36,600 | | | | 791 | |
| Unilever PLC | | | 5,986 | | | | 201 | |
| Unilever PLC ADR ^ | | | 3,700 | | | | 125 | |
| Vodafone Group PLC | | | 265,422 | | | | 737 | |
| Vodafone Group PLC ADR | | | 16,461 | | | | 458 | |
| United States — 32.4% | | | | | | | | |
| 3M Co. | | | 6,800 | | | | 537 | |
| Abbott Laboratoriesm | | | 14,627 | | | | 788 | |
| Activision Blizzard, Inc. ■ | | | 66,200 | | | | 886 | |
| Adobe Systems, Inc. ‡ | | | 6,800 | | | | 200 | |
| AES Corp. ‡ ■ | | | 45,797 | | | | 514 | |
| Aetna, Inc. | | | 23,860 | | | | 950 | |
| Agilent Technologies, Inc. ‡ | | | 13,500 | | | | 500 | |
| Albemarle Corp. | | | 900 | | | | 48 | |
| Alcoa, Inc. ^ | | | 65,400 | | | | 704 | |
| Alliance Data Systems Corp. ‡ | | | 600 | | | | 61 | |
| Alliance Resource Partners, LP | | | 3,173 | | | | 241 | |
| Allstate Corp. | | | 4,416 | | | | 116 | |
| Altera Corp. | | | 1,400 | | | | 53 | |
| Altria Group, Inc. | | | 16,862 | | | | 465 | |
| American Eagle Outfitters, Inc. | | | 38,200 | | | | 501 | |
| American Electric Power Co., Inc. | | | 7,772 | | | | 305 | |
| American Tower Corp. — Class A ‡ | | | 9,950 | | | | 548 | |
| American Water Works Co., Inc. | | | 8,472 | | | | 259 | |
| Ameriprise Financial, Inc. | | | 900 | | | | 42 | |
| AmerisourceBergen Corp. — Class A ^ | | | 9,934 | | | | 405 | |
| Amgen, Inc. | | | 1,116 | | | | 64 | |
| Anadarko Petroleum Corp. | | | 9,193 | | | | 722 | |
| Analog Devices, Inc. | | | 1,300 | | | | 48 | |
| Apache Corp. | | | 5,733 | | | | 571 | |
| Apple, Inc. ‡ ■ | | | 11,501 | | | | 4,654 | |
| Arrow Electronics, Inc. ‡ | | | 1,300 | | | | 47 | |
| AT&T, Inc. | | | 88,892 | | | | 2,604 | |
| Autodesk, Inc. ‡ | | | 1,300 | | | | 45 | |
| Autoliv, Inc. ^ | | | 600 | | | | 35 | |
| Baker Hughes, Inc. | | | 4,200 | | | | 244 | |
| Ball Corp. | | | 1,400 | | | | 48 | |
| Bank of America Corp. | | | 137,419 | | | | 939 | |
| Bank of New York Mellon Corp. | | | 42,018 | | | | 894 | |
| Baxter International, Inc. | | | 900 | | | | 49 | |
| Becton, Dickinson and Co. | | | 700 | | | | 55 | |
| Biogen Idec, Inc. ‡ | | | 808 | | | | 94 | |
| BMC Software, Inc. ‡ | | | 1,269 | | | | 44 | |
| Boeing Co. | | | 13,498 | | | | 887 | |
| BorgWarner, Inc. ‡ ^ | | | 3,300 | | | | 252 | |
| Bristol-Myers Squibb Co. | | | 50,173 | | | | 1,585 | |
| CA, Inc. | | | 33,260 | | | | 720 | |
| Calpine Corp. ‡ ^ ■ | | | 25,600 | | | | 388 | |
| Capital One Financial Corp. ^ | | | 1,100 | | | | 50 | |
| Cardinal Health, Inc. | | | 1,259 | | | | 56 | |
| Celgene Corp. ‡ | | | 3,900 | | | | 253 | |
| CenturyLink, Inc. ^ | | | 15,672 | | | | 553 | |
| Chevron Corp. | | | 28,966 | | | | 3,042 | |
| Chubb Corp. ^ | | | 7,210 | | | | 483 | |
| CIGNA Corp. | | | 7,510 | | | | 333 | |
| Cimarex Energy Co. ^ | | | 600 | | | | 38 | |
| Cisco Systems, Inc. ■ | | | 96,998 | | | | 1,797 | |
| Citigroup, Inc. | | | 55,466 | | | | 1,752 | |
| CMS Energy Corp. ^ | | | 13,373 | | | | 278 | |
| CNA Financial Corp. | | | 1,200 | | | | 32 | |
| Coach, Inc. | | | 900 | | | | 59 | |
| Coca-Cola Co. | | | 5,068 | | | | 346 | |
| Coca-Cola Enterprises, Inc. | | | 1,900 | | | | 51 | |
| Cognizant Technology Solutions Corp. — Class A ‡ | | | 2,004 | | | | 146 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 217 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
United States (continued) | | | | | | | | |
Colgate-Palmolive Co. n | | | 8,424 | | | $ | 761 | |
| Comcast Corp. — Class A | | | 51,268 | | | | 1,202 | |
| Computer Sciences Corp. ^ | | | 1,688 | | | | 53 | |
| ConAgra Foods, Inc. | | | 7,460 | | | | 189 | |
| ConocoPhillips | | | 7,440 | | | | 518 | |
| Consol Energy, Inc. ^ | | | 48,070 | | | | 2,055 | |
| Consolidated Edison, Inc. ^ | | | 5,000 | | | | 289 | |
| Constellation Brands, Inc. — Class A ‡ | | | 6,110 | | | | 124 | |
| Constellation Energy Group, Inc. | | | 1,100 | | | | 44 | |
Corning, Inc. n | | | 109,510 | | | | 1,565 | |
| Coventry Health Care, Inc. ‡ | | | 1,500 | | | | 48 | |
| Crown Holdings, Inc. ‡ | | | 5,586 | | | | 189 | |
| CVS Caremark Corp. | | | 18,268 | | | | 663 | |
| DaVita, Inc. ‡ | | | 5,149 | | | | 360 | |
Dell, Inc. ‡ n | | | 35,381 | | | | 559 | |
| Devon Energy Corp. | | | 6,969 | | | | 453 | |
| Diamond Offshore Drilling, Inc. ^ | | | 1,000 | | | | 66 | |
| DISH Network Corp. — Class A ‡ | | | 5,580 | | | | 135 | |
| Dominion Resources, Inc. | | | 5,600 | | | | 289 | |
| Dow Chemical Co. ^ | | | 19,392 | | | | 541 | |
| Dr. Pepper Snapple Group, Inc. ^ | | | 3,537 | | | | 132 | |
| E.I. du Pont de Nemours & Co. | | | 13,332 | | | | 641 | |
| Eastman Chemical Co. ^ | | | 1,200 | | | | 47 | |
| eBay, Inc. ‡ | | | 9,809 | | | | 312 | |
| Edison International | | | 1,300 | | | | 53 | |
El Paso Corp. n | | | 52,011 | | | | 1,301 | |
Electronic Arts, Inc. ‡ n | | | 18,230 | | | | 426 | |
| Eli Lilly & Co. | | | 6,535 | | | | 243 | |
EMC Corp. ‡ n | | | 29,491 | | | | 723 | |
| Entergy Corp. | | | 4,542 | | | | 314 | |
EOG Resources, Inc. n | | | 4,000 | | | | 358 | |
| Exelon Corp. ^ | | | 12,237 | | | | 543 | |
| Expedia, Inc. ^ | | | 1,270 | | | | 33 | |
| Exxon Mobil Corp. | | | 63,820 | | | | 4,983 | |
| Fidelity National Financial, Inc. — Class A ^ | | | 29,480 | | | | 455 | |
| Fidelity National Information Services, Inc. | | | 967 | | | | 25 | |
| First Solar, Inc. ‡ | | | 4,600 | | | | 229 | |
| Fluor Corp. | | | 900 | | | | 51 | |
| FMC Corp. | | | 14,077 | | | | 1,111 | |
| Ford Motor Co. ‡ ^ | | | 51,100 | | | | 597 | |
| Freeport-McMoRan Copper & Gold, Inc. | | | 14,476 | | | | 583 | |
| General Dynamics Corp. | | | 6,500 | | | | 417 | |
| General Electric Co. | | | 141,830 | | | | 2,371 | |
General Mills, Inc. n | | | 16,028 | | | | 618 | |
| General Motors Co. ‡ | | | 23,900 | | | | 618 | |
| Gilead Sciences, Inc. ‡ | | | 11,991 | | | | 500 | |
| Goldman Sachs Group, Inc. | | | 9,640 | | | | 1,055 | |
Google, Inc. — Class A ‡ n | | | 3,636 | | | | 2,155 | |
| Halliburton Co. | | | 19,542 | | | | 730 | |
| Harris Corp. ^ | | | 879 | | | | 33 | |
| HCA Holdings, Inc. ‡ | | | 18,100 | | | | 424 | |
| Healthsouth Corp. ‡ ^ | | | 13,205 | | | | 233 | |
| Helmerich & Payne, Inc. ^ | | | 900 | | | | 48 | |
| Hess Corp. | | | 7,261 | | | | 454 | |
| Hewlett-Packard Co. | | | 32,875 | | | | 875 | |
| HJ Heinz Co. ^ | | | 3,594 | | | | 192 | |
| Hologic, Inc. ‡ | | | 24,916 | | | | 402 | |
| Humana, Inc. | | | 6,946 | | | | 590 | |
Intel Corp. n | | | 47,365 | | | | 1,162 | |
| International Business Machines Corp. | | | 19,287 | | | | 3,562 | |
| International Game Technology | | | 15,947 | | | | 281 | |
| International Paper Co. | | | 6,610 | | | | 184 | |
| Intuit, Inc. | | | 1,100 | | | | 59 | |
| ITC Holdings Corp. | | | 3,000 | | | | 218 | |
| Johnson & Johnson | | | 40,061 | | | | 2,580 | |
| Johnson Controls, Inc. | | | 8,400 | | | | 277 | |
| JPMorgan Chase & Co. | | | 62,310 | | | | 2,166 | |
| KBR, Inc. | | | 14,382 | | | | 401 | |
| Kinetic Concepts, Inc. ‡ ^ | | | 900 | | | | 62 | |
| KLA-Tencor Corp. ^ | | | 1,100 | | | | 52 | |
Kraft Foods, Inc. — Class A n | | | 30,346 | | | | 1,067 | |
| Kroger Co. | | | 2,300 | | | | 53 | |
| L-3 Communications Holdings, Inc. ^ | | | 600 | | | | 41 | |
| LAM Research Corp. ‡ | | | 1,000 | | | | 43 | |
| Lear Corp. | | | 1,500 | | | | 70 | |
| Lexmark International, Inc. — Class A ‡ ^ | | | 594 | | | | 19 | |
| Liberty Global, Inc. ‡ ^ | | | 1,400 | | | | 56 | |
| Life Technologies Corp. ‡ | | | 9,267 | | | | 377 | |
| Limited Brands, Inc. | | | 1,817 | | | | 78 | |
| Lincoln National Corp. ^ | | | 1,800 | | | | 34 | |
| Lorillard, Inc. | | | 2,585 | | | | 286 | |
| Macy’s, Inc. | | | 1,500 | | | | 46 | |
| Marathon Oil Corp. | | | 18,275 | | | | 476 | |
| Marathon Petroleum Corp. | | | 20,637 | | | | 741 | |
| Mastercard, Inc. — Class A | | | 1,100 | | | | 382 | |
| Mattel, Inc. ^ | | | 13,207 | | | | 373 | |
| McDonald’s Corp. | | | 5,617 | | | | 521 | |
| McGraw-Hill Cos., Inc. | | | 1,400 | | | | 60 | |
| McKesson Corp. | | | 6,458 | | | | 527 | |
Mead Johnson Nutrition Co. — Class A n | | | 12,244 | | | | 880 | |
| MeadWestvaco Corp. | | | 1,729 | | | | 48 | |
| Medco Health Solutions, Inc. ‡ | | | 9,211 | | | | 505 | |
| Medtronic, Inc. | | | 21,778 | | | | 757 | |
| Merck & Co., Inc. | | | 45,243 | | | | 1,561 | |
| MetLife, Inc. | | | 8,528 | | | | 300 | |
| MetroPCS Communications, Inc. ‡ | | | 13,300 | | | | 113 | |
| Mettler-Toledo International, Inc. ‡ ^ | | | 1,555 | | | | 239 | |
| Microsoft Corp. | | | 140,286 | | | | 3,737 | |
| Molson Coors Brewing Co. — Class B ^ | | | 1,100 | | | | 47 | |
| Morgan Stanley | | | 41,593 | | | | 734 | |
| Motorola Mobility Holdings, Inc. ‡ | | | 8,700 | | | | 338 | |
| Motorola Solutions, Inc. | | | 5,737 | | | | 269 | |
| Murphy Oil Corp. ^ | | | 700 | | | | 39 | |
| Mylan, Inc. ‡ | | | 22,333 | | | | 437 | |
| National Oilwell Varco, Inc. | | | 17,859 | | | | 1,274 | |
| Newmont Mining Corp. | | | 29,255 | | | | 1,955 | |
| Nextera Energy, Inc. ^ | | | 15,854 | | | | 895 | |
| NII Holdings, Inc. ‡ | | | 1,000 | | | | 24 | |
| Northern Trust Corp. | | | 5,900 | | | | 239 | |
NRG Energy, Inc. ‡ n | | | 12,280 | | | | 263 | |
| Occidental Petroleum Corp. | | | 18,206 | | | | 1,692 | |
Oracle Corp. n | | | 92,670 | | | | 3,037 | |
| PACCAR, Inc. | | | 11,800 | | | | 510 | |
| Pall Corp. | | | 3,103 | | | | 159 | |
| Parker Hannifin Corp. | | | 600 | | | | 49 | |
| PerkinElmer, Inc. ^ | | | 10,067 | | | | 208 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 218 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
| United States (continued) | | | | | | | | |
| Perrigo Co. ^ | | | 4,000 | | | $ | 361 | |
| Pfizer, Inc. | | | 106,559 | | | | 2,052 | |
| PG&E Corp. | | | 9,397 | | | | 403 | |
| Philip Morris International, Inc. | | | 11,891 | | | | 830 | |
Polycom, Inc. ‡ n | | | 21,690 | | | | 359 | |
| PPG Industries, Inc. ^ | | | 600 | | | | 52 | |
| PPL Corp. | | | 17,100 | | | | 502 | |
| Praxair, Inc. | | | 2,337 | | | | 238 | |
| Precision Castparts Corp. | | | 3,320 | | | | 542 | |
| Principal Financial Group, Inc. | | | 4,046 | | | | 104 | |
| Procter & Gamble Co. | | | 16,256 | | | | 1,040 | |
| Progressive Corp. | | | 9,540 | | | | 181 | |
| Prudential Financial, Inc. | | | 4,500 | | | | 244 | |
| Pulte Group, Inc. ‡ ^ | | | 44,700 | | | | 232 | |
| QEP Resources, Inc. | | | 22,300 | | | | 793 | |
| QUALCOMM, Inc. | | | 34,997 | | | | 1,806 | |
| Quicksilver Resources, Inc. ‡ ^ | | | 46,900 | | | | 361 | |
| Ralph Lauren Corp. — Class A | | | 400 | | | | 64 | |
| Reinsurance Group of America, Inc. — Class A ^ | | | 900 | | | | 47 | |
| Ross Stores, Inc. | | | 508 | | | | 45 | |
| Ryder System, Inc. | | | 955 | | | | 49 | |
SanDisk Corp. ‡ n | | | 8,694 | | | | 441 | |
Sara Lee Corp. n | | | 44,698 | | | | 796 | |
| Simon Property Group, Inc. REIT ^ | | | 2,400 | | | | 308 | |
SM Energy Co. n | | | 7,762 | | | | 644 | |
Southern Co. n | | | 19,850 | | | | 858 | |
| Spirit Aerosystems Holdings, Inc. — Class A ‡ ^ | | | 20,611 | | | | 352 | |
| St. Joe Co. ‡ ^ | | | 73,153 | | | | 1,049 | |
| State Street Corp. | | | 18,888 | | | | 763 | |
Symantec Corp. ‡ n | | | 26,272 | | | | 447 | |
| Teradata Corp. ‡ | | | 1,541 | | | | 92 | |
| Texas Instruments, Inc. | | | 15,518 | | | | 477 | |
| Thermo Fisher Scientific, Inc. ‡ | | | 8,474 | | | | 426 | |
| Time Warner Cable, Inc. | | | 4,173 | | | | 266 | |
| Torchmark Corp. ^ | | | 1,249 | | | | 51 | |
| Travelers Cos., Inc. | | | 15,725 | | | | 918 | |
| U.S. Bancorp | | | 38,439 | | | | 984 | |
| Union Pacific Corp. | | | 14,887 | | | | 1,482 | |
United Technologies Corp. n | | | 9,884 | | | | 771 | |
| UnitedHealth Group, Inc. | | | 11,920 | | | | 572 | |
| Unum Group ^ | | | 1,202 | | | | 29 | |
| Urban Outfitters, Inc. ‡ ^ | | | 1,400 | | | | 38 | |
| Valero Energy Corp. | | | 21,409 | | | | 527 | |
| Vanguard Health Systems, Inc. ‡ | | | 10,900 | | | | 106 | |
| Verizon Communications, Inc. | | | 34,873 | | | | 1,290 | |
| Viacom, Inc. — Class B | | | 7,201 | | | | 316 | |
| Visa, Inc. — Class A | | | 6,200 | | | | 578 | |
| Walgreen Co. | | | 1,300 | | | | 43 | |
| Wal-Mart Stores, Inc. | | | 24,918 | | | | 1,414 | |
| Walt Disney Co. | | | 13,000 | | | | 453 | |
| Waters Corp. ‡ | | | 5,451 | | | | 437 | |
| WellPoint, Inc. | | | 14,012 | | | | 966 | |
| Wells Fargo & Co. | | | 48,524 | | | | 1,257 | |
Western Digital Corp. ‡ n | | | 9,418 | | | | 251 | |
| Western Union Co. | | | 2,400 | | | | 42 | |
Whiting Petroleum Corp. ‡ ^ n | | | 17,200 | | | | 801 | |
| Wyndham Worldwide Corp. | | | 1,200 | | | | 40 | |
| Xerox Corp. | | | 47,025 | | | | 385 | |
| | | | | | | |
| Total Common Stocks (cost $246,870) | | | | | | | 265,465 | |
| | | | | | | |
| |
| INVESTMENT COMPANIES — 2.6% | | | | | | | | |
| Cayman Islands — 0.0% ∞ | | | | | | | | |
| Dragon Capital — Vietnam Enterprise Investments, Ltd. | | | 51,468 | | | | 113 | |
| Vinaland, Ltd. | | | 132,200 | | | | 96 | |
United States — 2.6% | | | | | | | | |
| Energy Select Sector SPDR Fund ^ | | | 12,985 | | | | 904 | |
| ETFS Physical Palladium Shares ‡ | | | 3,900 | | | | 250 | |
| ETFS Platinum Trust ‡ | | | 3,300 | | | | 523 | |
| iShares Silver Trust ‡ ^ | | | 3,500 | | | | 117 | |
| SPDR Gold Shares ‡ | | | 52,882 | | | | 8,849 | |
| | | | | | | |
| Total Investment Companies (cost $7,715) | | | | | | | 10,852 | |
| | | | | | | |
| |
| WARRANTS — 0.0% ∞ | | | | | | | | |
Australia — 0.0% ∞ | | | | | | | | |
| TFS Corp., Ltd. ‡ | | | | | | | | |
| Expiration: 07/15/2018 | | | | | | | | |
| Exercise Price: AUD1.28 | | | 190,550 | | | | ♦ | |
Canada — 0.0% ∞ | | | | | | | | |
| Kinross Gold Corp. ‡ Ə | | | | | | | | |
| Expiration: 09/03/2013 | | | | | | | | |
| Exercise Price: $32.00 | | | 9,602 | | | | 10 | |
United States — 0.0% ∞ | | | | | | | | |
| Ford Motor Co. ‡ | | | | | | | | |
| Expiration: 01/01/2013 | | | | | | | | |
| Exercise Price: $9.20 | | | 43,117 | | | | 145 | |
| | | | | | | | |
| Total Warrants (cost $235) | | | | | | | 155 | |
| | | | | | | | |
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
PURCHASED OPTIONS — 0.1% | | | | | | | | |
Call Options — 0.1% | | | | | | | | |
| | | | | | | | | |
| Citi TAIEX Index | | $ | 2 | | | | 13 | |
| Call Strike $290.81 | | | | | | | | |
| Expires 12/21/2012 | | | | | | | | |
| | | | | | | | | |
| Citi TAIEX Index | | | 2 | | | | 13 | |
| Call Strike $301.94 | | | | | | | | |
| Expires 12/19/2012 | | | | | | | | |
| | | | | | | | | |
| DAX Price Index | | | ♦ | | | | 63 | |
| Call Strike $3319.87 | | | | | | | | |
| Expires 09/21/2012 | | | | | | | | |
| | | | | | | | | |
| Euro | | | 1,219 | | | | 6 | |
| Call Strike $1.30 | | | | | | | | |
| Expires 12/19/2011 Ə | | | | | | | | |
| | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | 11 | | | | 7 | |
| Call Strike $104.71 | | | | | | | | |
| Expires 06/15/2012 | | | | | | | | |
| | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | 5 | | | | 5 | |
| Call Strike $102.90 | | | | | | | | |
| Expires 06/15/2012 Ə | | | | | | | | |
| | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | 15 | | | | 23 | |
| Call Strike $99.43 | | | | | | | | |
| Expires 07/12/2012 | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 219 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Call Options (continued) | | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | $ | 7 | | | $ | 51 | |
| Call Strike $86.70 | | | | | | | | | |
| Expires 09/21/2012 | | | | | | | | | |
| S&P 500 Index | | | | 1 | | | | 20 | |
| Call Strike $1,373.88 | | | | | | | | | |
| Expires 02/10/2012 | | | | | | | | | |
| S&P 500 Index | | | | ♦ | | | | 16 | |
| Call Strike $1,355.00 | | | | | | | | | |
| Expires 02/24/2012 Ə | | | | | | | | | |
| S&P 500 Index | | | | ♦ | | | | 16 | |
| Call Strike $1,282.00 | | | | | | | | | |
| Expires 02/24/2012 Ə | | | | | | | | | |
| S&P 500 Index | | | | 1 | | | | ♦ | |
| Call Strike $1,379.67 | | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 3 | | | | ♦ | |
| Call Strike $9,000.00 | | | | | | | | | |
| Expires 12/21/2011 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 2 | | | | 9 | |
| Call Strike $9,047.46 | | | | | | | | | |
| Expires 09/19/2012 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 2 | | | | 7 | |
| Call Strike $9,041.74 | | | | | | | | | |
| Expires 09/19/2012 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 2 | | | | 15 | |
| Call Strike $8,818.93 | | | | | | | | | |
| Expires 03/20/2013 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 2 | | | | 20 | |
| Call Strike $8,807.55 | | | | | | | | | |
| Expires 06/19/2013 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 1 | | | | 8 | |
| Call Strike $8,807.55 | | | | | | | | | |
| Expires 09/18/2013 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 1 | | | | 11 | |
| Call Strike $8,646.24 | | | | | | | | | |
| Expires 09/18/2013 | | | | | | | | | |
| Taiwan TAIEX Index | | | | 3 | | | | 26 | |
| Call Strike $8,646.11 | | | | | | | | | |
| Expires 12/18/2013 | | | | | | | | | |
| TOPIX Index | | | | JPY115 | | | | 24 | |
| Call Strike $825.55 | | | | | | | | | |
| Expires 06/08/2012 | | | | | | | | | |
| TOPIX Index | | | | 135 | | | | 29 | |
| Call Strike $825.00 | | | | | | | | | |
| Expires 06/08/2012 | | | | | | | | | |
Put Options — 0.0% ∞ | | | | | | | | | |
| DAX Index | | EUR ♦ | | | | 1 | |
| Put Strike $4,900.00 | | | | | | | | | |
| Expires 11/18/2011 | | | | | | | | | |
| DAX Index | | | | ♦ | | | | 8 | |
| Put Strike $5,700.00 | | | | | | | | | |
| Expires 11/18/2011 | | | | | | | | | |
| Ibovespa Index | | | | $ ♦ | | | | 14 | |
| Put Strike $5,2978.00 | | | | | | | | | |
| Expires 02/15/2012 | | | | | | | | | |
| KOSPI 200 Index | | | | 3,300 | | | | 9 | |
| Put Strike $230.71 | | | | | | | | | |
| Expires 12/08/2011 | | | | | | | | | |
| Russell 2000 Index | | | | 1 | | | | 16 | |
| Put Strike $662.24 | | | | | | | | | |
| Expires 12/16/2011 | | | | | | | | | |
| Russell 2000 Index | | | | 1 | | | | 20 | |
| Put Strike $664.34 | | | | | | | | | |
| Expires 12/30/2011 | | | | | | | | | |
| Russell 2000 Index | | | | 1 | | | | 35 | |
| Put Strike $641.52 | | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | | |
| S&P 500 Index | | | | 2 | | | | 4 | |
| Put Strike $1,075.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 7 | | | | 24 | |
| Put Strike $1,100.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 2 | | | | 12 | |
| Put Strike $1,125.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 2 | | | | 15 | |
| Put Strike $1,170.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 2 | | | | 2 | |
| Put Strike $990.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 4 | | | | 7 | |
| Put Strike $1,050.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 2 | | | | 16 | |
| Put Strike $1,150.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 0 | | | | 6 | |
| Put Strike $1,200.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| S&P 500 Index | | | | 4 | | | | 44 | |
| Put Strike $1,175.00 | | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | | |
| | | | | | | | | |
Total Purchased Options (cost $1,708) | | | | | | | | 615 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
SECURITIES LENDING COLLATERAL — 11.0% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 46,288,515 | | | | 46,289 | |
Total Securities Lending Collateral (cost $46,289) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
REPURCHASE AGREEMENT — 0.0% ∞ | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $61 on 11/01/2011. Collateralized by a U.S. Government Agency Obligation, 4.00%, due 08/01/2026, with a value of $63. | | $ | 61 | | | | 61 | |
Total Repurchase Agreement (cost $61) | | | | | | | | |
| | | | | | | | |
| |
| Total Investment Securities (cost $442,914) П | | | | | | | 467,627 | |
| Other Assets and Liabilities — Net | | | | | | | (45,401 | ) |
| | | | | | | | |
| |
Net Assets | | | | | | $ | 422,226 | |
| | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 220 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
WRITTEN OPTIONS — (0.5%) Ж | | | | | | | | |
Call Options — (0.2%) | | | | | | | | |
| ACE, Ltd. | | $ | (3 | ) | | $ | (6 | ) |
| Call Strike $75.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Activision Blizzard, Inc. | | | (11 | ) | | | (23 | ) |
| Call Strike $12.50 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| AES Corp. | | | (4 | ) | | | (2 | ) |
| Call Strike $12.00 | | | | | | | | |
| Expires 02/18/2012 | | | | | | | | |
| AES Corp. | | | (3 | ) | | | (3 | ) |
| Call Strike $11.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Apple, Inc. | | | (3 | ) | | | (112 | ) |
| Call Strike $450.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Beiersdorf AG | | | (1 | ) | | | (1 | ) |
| Call Strike $48.00 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| Calpine Corp. | | | (3 | ) | | | (3 | ) |
| Call Strike $15.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| China Unicom Hong Kong, Ltd. | | | (42 | ) | | | (1 | ) |
| Call Strike $18.19 | | | | | | | | |
| Expires 11/30/2011 | | | | | | | | |
| China Unicom Hong Kong, Ltd. | | | (39 | ) | | | (2 | ) |
| Call Strike $17.46 | | | | | | | | |
| Expires 12/29/2011 | | | | | | | | |
| Cisco Systems, Inc. | | | (9 | ) | | | (17 | ) |
| Call Strike $20.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Cisco Systems, Inc. | | | (14 | ) | | | (23 | ) |
| Call Strike $17.50 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Colgate-Palmolive Co. | | | (3 | ) | | | (9 | ) |
| Call Strike $92.50 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Corning, Inc. | | | (9 | ) | | | (20 | ) |
| Call Strike $15.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Corning, Inc. | | | (46 | ) | | | (56 | ) |
| Call Strike $17.50 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Dell, Inc. | | | (9 | ) | | | (29 | ) |
| Call Strike $15.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| El Paso Corp. | | | (6 | ) | | | (38 | ) |
| Call Strike $19.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Electronic Arts, Inc. | | | (9 | ) | | | (15 | ) |
| Call Strike $30.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| EMC Corp. | | | (6 | ) | | | (20 | ) |
| Call Strike $25.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| EOG Resources, Inc. | | | (3 | ) | | | (8 | ) |
| Call Strike $100.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| General Mills, Inc. | | | (7 | ) | | | (4 | ) |
| Call Strike $42.00 | | | | | | | | |
| Expires 04/21/2012 | | | | | | | | |
| Google, Inc. | | | (1 | ) | | | (69 | ) |
| Call Strike $590.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Ibovespa Index | | | (♦ | ) | | | (19 | ) |
| Call Strike $61,334.30 | | | | | | | | |
| Expires 02/15/2012 | | | | | | | | |
| Kraft Foods, Inc. | | | (16 | ) | | | (28 | ) |
| Call Strike $34.00 | | | | | | | | |
| Expires 01/20/2012 | | | | | | | | |
| Kraft Foods, Inc. Class A | | | (14 | ) | | | (18 | ) |
| Call Strike $35.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Mead Johnson Nutrition Co. | | | (6 | ) | | | (4 | ) |
| Call Strike $75.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| MSCI Europe Excluding United | | | | | | | | |
| Kingdom Index | | | (15 | ) | | | (1 | ) |
| Call Strike $113.85 | | | | | | | | |
| Expires 07/12/2012 | | | | | | | | |
| Nikkei 225 Index | | | (♦ | ) | | | (♦ | ) |
| Call Strike $10,996.49 | | | | | | | | |
| Expires 11/18/2011 | | | | | | | | |
| NRG Energy, Inc. | | | (2 | ) | | | (2 | ) |
| Call Strike $24.00 | | | | | | | | |
| Expires 03/17/2012 | | | | | | | | |
| NRG Energy, Inc. | | | (2 | ) | | | (1 | ) |
| Call Strike $24.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Oracle Corp. | | | (17 | ) | | | (111 | ) |
| Call Strike $30.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| PG&E Corp. | | | (1 | ) | | | (2 | ) |
| Call Strike $43.00 | | | | | | | | |
| Expires 01/20/2012 | | | | | | | | |
| Polycom, Inc. | | | (5 | ) | | | (2 | ) |
| Call Strike $32.50 Ə | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Russell 2000 Index | | | (1 | ) | | | (46 | ) |
| Call Strike $715.62 | | | | | | | | |
| Expires 12/16/2011 | | | | | | | | |
| Russell 2000 Index | | | (1 | ) | | | (63 | ) |
| Call Strike $748.89 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| Russell 2000 Index | | | (1 | ) | | | (48 | ) |
| Call Strike $718.57 | | | | | | | | |
| Expires 12/30/2011 | | | | | | | | |
| SanDisk Corp. | | | (1 | ) | | | (3 | ) |
| Call Strike $50.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| SanDisk Corp. | | | (6 | ) | | | (62 | ) |
| Call Strike $50.00 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Sara Lee Corp. | | | (45 | ) | | | (22 | ) |
| Call Strike $19.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Seagate Technology | | | (6 | ) | | | (14 | ) |
| Call Strike $17.50 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Seagate Technology PLC | | | (7 | ) | | | (8 | ) |
| Call Strike $17.50 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 221 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
Call Options (continued) | | | | | | | | |
| SM Energy Co. | | $ | (3 | ) | | $ | (5 | ) |
| Call Strike $90.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| Southern Co. | | | (2 | ) | | | (3 | ) |
| Call Strike $42.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Symantec Corp. | | | (19 | ) | | | (16 | ) |
| Call Strike $17.50 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| TE Connectivity, Ltd. | | | (1 | ) | | | (2 | ) |
| Call Strike $38.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Teva Pharmaceutical Industries, Ltd. ADR | | | (6 | ) | | | (14 | ) |
| Call Strike $47.50 | | | | | | | | |
| Expires 01/19/2013 | | | | | | | | |
| Unilever NV | | | (962 | ) | | | (15 | ) |
| Call Strike $26.00 | | | | | | | | |
| Expires 06/15/2012 | | | | | | | | |
| United Technologies Corp. | | | (7 | ) | | | (20 | ) |
| Call Strike $80.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Valeant Pharmaceuticals International, Inc. | | | (3 | ) | | | (2 | ) |
| Call Strike $50.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| Whiting Petroleum Corp. | | | (5 | ) | | | (9 | ) |
| Call Strike $55.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
Put Options — (0.3%) | | | | | | | | |
| American Eagle Outfitters, Inc. | | | (30 | ) | | | (29 | ) |
| Put Strike $12.00 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| American Eagle Outfitters, Inc. | | | (12 | ) | | | (9 | ) |
| Put Strike $11.75 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| Beiersdorf AG | | | (3 | ) | | | (2 | ) |
| Put Strike $38.00 | | | | | | | | |
| Expires 01/20/2012 | | | (5 | ) | | | (2 | ) |
| Beiersdorf AG | | | | | | | | |
| Put Strike $38.00 | | | | | | | | |
| Expires 12/16/2011 | | | | | | | | |
| Citi TAIEX Index | | | (2 | ) | | | (44 | ) |
| Put Strike $243.41 | | | | | | | | |
| Expires 12/21/2012 | | | | | | | | |
| Citi TAIEX Index | | | (2 | ) | | | (54 | ) |
| Put Strike $252.72 | | | | | | | | |
| Expires 12/19/2012 | | | | | | | | |
| Cme Group, Inc. | | | (♦ | ) | | | (2 | ) |
| Put Strike $250.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| DAX Index | | | (♦ | ) | | | (6 | ) |
| Put Strike $5,300.00 | | | | | | | | |
| Expires 11/18/2011 | | | | | | | | |
| DAX Price Index | | | (♦ | ) | | | (26 | ) |
| Put Strike $3,003.69 | | | | | | | | |
| Expires 09/21/2012 | | | | | | | | |
| Ibovespa Index | | | (♦ | ) | | | (6 | ) |
| Put Strike $47,680.20 | | | | | | | | |
| Expires 02/15/2012 | | | | | | | | |
| Kospi 200 Index | | | (♦ | ) | | | (2 | ) |
| Put Strike $208.00 | | | | | | | | |
| Expires 12/08/2011 | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | (11 | ) | | | (176 | ) |
| Put Strike $99.84 | | | | | | | | |
| Expires 06/15/2012 | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | (15 | ) | | | (169 | ) |
| Put Strike $92.97 | | | | | | | | |
| Expires 07/12/2012 | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | (5 | ) | | | (27 | ) |
| Put Strike $78.44 | | | | | | | | |
| Expires 09/21/2012 | | | | | | | | |
| MSCI Europe Excluding United Kingdom Index | | | (5 | ) | | | (73 | ) |
| Put Strike $98.12 Ə | | | | | | | | |
| Expires 06/15/2012 | | | | | | | | |
| Russell 2000 Index | | | (1 | ) | | | (7 | ) |
| Put Strike $593.16 | | | | | | | | |
| Expires 12/30/2011 | | | | | | | | |
| Russell 2000 Index | | | (1 | ) | | | (5 | ) |
| Put Strike $591.28 | | | | | | | | |
| Expires 12/16/2011 | | | | | | | | |
| Russell 2000 Index | | | (1 | ) | | | (14 | ) |
| Put Strike $540.23 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| S&P 500 Index | | | (♦ | ) | | | (1 | ) |
| Put Strike $950.00 Ə | | | | | | | | |
| Expires 02/24/2012 | | | | | | | | |
| S&P 500 Index | | | (4 | ) | | | (10 | ) |
| Put Strike $1,080.00 | | | | | | | | |
| Expires 11/19/2011 | | | | | | | | |
| S&P 500 Index | | | (1 | ) | | | (31 | ) |
| Put Strike $1,131.30 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| S&P 500 Index | | | (1 | ) | | | (2 | ) |
| Put Strike $988.57 | | | | | | | | |
| Expires 12/08/2011 | | | | | | | | |
| Sara Lee Corp. | | | (4 | ) | | | (1 | ) |
| Put Strike $15.00 | | | | | | | | |
| Expires 03/16/2012 | | | | | | | | |
| Taiwan TAIEX Index | | | (1 | ) | | | (31 | ) |
| Put Strike $6,957.96 | | | | | | | | |
| Expires 09/18/2013 | | | | | | | | |
| Taiwan TAIEX Index | | | (2 | ) | | | (52 | ) |
| Put Strike $7,608.62 | | | | | | | | |
| Expires 09/19/2012 | | | | | | | | |
| Taiwan TAIEX Index | | | (2 | ) | | | (84 | ) |
| Put Strike $7,758.20 | | | | | | | | |
| Expires 09/19/2012 | | | | | | | | |
| Taiwan TAIEX Index | | | (2 | ) | | | (62 | ) |
| Put Strike $7,557.82 | | | | | | | | |
| Expires 03/20/2013 | | | | | | | | |
| Taiwan TAIEX Index | | | (2 | ) | | | (71 | ) |
| Put Strike $7,180.59 | | | | | | | | |
| Expires 12/18/2013 | | | | | | | | |
| Taiwan TAIEX Index | | | (1 | ) | | | (35 | ) |
| Put Strike $7,176.38 | | | | | | | | |
| Expires 09/18/2013 | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 222 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Notional | | | | |
| | | Amount | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
Put Options (continued) | | | | | | | | |
| Taiwan TAIEX Index | | $ | (3 | ) | | $ | (77 | ) |
| Put Strike $8,400.00 | | | | | | | | |
| Expires 12/21/2011 | | | | | | | | |
| Taiwan TAIEX Index | | | (2 | ) | | | (68 | ) |
| Put Strike $7,574.49 | | | | | | | | |
| Expires 06/19/2013 | | | | | | | | |
| Time Warner Cable | | | (2 | ) | | | (4 | ) |
| Put Strike $60.00 | | | | | | | | |
| Expires 01/21/2012 | | | | | | | | |
| TOPIX Index | | | (63 | ) | | $ | (19 | ) |
| Put Strike $675.45 | | | | | | | | |
| Expires 06/08/2012 | | | | | | | | |
| TOPIX Index | | | (74 | ) | | | (22 | ) |
| Put Strike $675.00 | | | | | | | | |
| Expires 06/08/2012 | | | | | | | | |
| | | | | | | | |
Total Written Options (premiums: $(1,869)) | | | | | | $ | (2,224 | ) |
| | | | | | | | |
SWAP AGREEMENTS: p
Interest Rate Swap Agreements — Fixed Rate Payable:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Premiums | | | Net Unrealized | |
| | | | | | | Maturity | | | | | | | | | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Floating Rate Index | | Fixed Rate | | | Date | | | Counterparty | | | Currency | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| 3-Month USD-LIBOR | | | 1.63 | % | | | 09/12/2015 | | | UBS | | USD | | $ | 5,748 | | | $ | (3 | ) | | $ | — | | | $ | (3 | ) |
| 3-Month USD-LIBOR | | | 1.57 | | | | 09/15/2015 | | | UBS | | USD | | | 5,512 | | | | (9 | ) | | | — | | | | (9 | ) |
| 3-Month USD-LIBOR | | | 1.56 | | | | 09/23/2015 | | | BOA | | USD | | | 5,574 | | | | (11 | ) | | | — | | | | (11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (23 | ) | | $ | — | | | $ | (23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Interest Rate Swap Agreements — Fixed Rate Receivable:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Unrealised | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Premiums | | | Appreciation | |
| | | | | | | Maturity | | | | | | | | | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Floating Rate Index | | Fixed Rate | | | Date | | | Counterparty | | | Currency | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| 3-Month USD-LIBOR | | | 0.65 | % | | | 07/25/2013 | | | MSC | | USD | | $ | 15 | | | $ | (♦ | ) | | $ | ♦ | | | $ | ♦ | |
| 3-Month USD-LIBOR | | | 0.65 | | | | 07/25/2013 | | | MSC | | USD | | | 27 | | | | (♦ | ) | | | ♦ | | | | ♦ | |
| 3-Month USD-LIBOR | | | 1.84 | | | | 07/25/2016 | | | MSC | | USD | | | 143 | | | | (4 | ) | | | (♦ | ) | | | (4 | ) |
| 3-Month USD-LIBOR | | | 1.84 | | | | 07/25/2016 | | | MSC | | USD | | | 90 | | | | (3 | ) | | | (3 | ) | | | ♦ | �� |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (4 | ) | | $ | (3 | ) | | $ | (4 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
TOTAL RETURN SWAP AGREEMENTS — PAYABLE: (A)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premiums | | | Net Unrealized | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | Financing | | | Maturity | | | | | | | # of Units | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Index | | Rate (BP) | | | Date | | | Counterparty | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| HSCEI Dividend Point Index Futures | | | 1.00 | | | | 01/17/2013 | | | CITI | | | 5 | | | $ | 191 | | | $ | (16 | ) | | $ | — | | | $ | (16 | ) |
| SGX Nikkei Stock Average Dividend Point Index Futures | | | 1.00 | | | | 04/03/2013 | | | CITI | | | 80 | | | | 185 | | | | 9 | | | | — | | | | 9 | |
| SGX Nikkei Stock Average Dividend Point Index Futures | | | 1.00 | | | | 04/03/2014 | | | CITI | | | 100 | | | | 217 | | | | 7 | | | | — | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | |
CURRENCY SWAPS — FIXED RATE PAYABLE:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Premiums | | | Net Unrealized | |
| | | | | | | Maturity | | | | | | | | | | | Amount | | | Value | | | (Received) | | | Appreciation | |
| Floating Rate Index | | Fixed Rate | | | Date | | | Counterparty | | | Currency | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| 6-Month USD-LIBOR | | | 8.25 | % | | | 06/03/2018 | | | CSFB | | IDR | | | 2,612,628 | | | $ | 13 | | | $ | ♦ | | | $ | 13 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 223 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
FUTURES CONTRACTS:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Net Unrealised | |
| | | | | | | | | | | | | | | Appreciation | |
| | | | | | | | | | | | | | | (Depreciation) | |
| Description | | Type | | | Contracts ┌ | | | Expiration Date | | | (000’s) | |
| |
| NASDAQ 100 E-Mini Index | | Short | | | (13 | ) | | | 12/16/2011 | | | $ | 10 | |
| Nikkei 225 Index | | Short | | | (2 | ) | | | 12/08/2011 | | | | (4 | ) |
| Russell 2000 Mini Index | | Short | | | (63 | ) | | | 12/16/2011 | | | | (357 | ) |
| S&P 500 Index | | Short | | | (18 | ) | | | 12/15/2011 | | | | (215 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (566 | ) |
| | | | | | | | | | | | | | | | |
FORWARD FOREIGN CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Australian Dollar | | GSC | | | (35 | ) | | | 11/15/2011 | | | $ | (36 | ) | | $ | (♦ | ) |
| Australian Dollar | | CSFB | | | (1,495 | ) | | | 04/16/2012 | | | | (1,526 | ) | | | (19 | ) |
| Australian Dollar | | GSC | | | (35 | ) | | | 05/15/2012 | | | | (35 | ) | | | (♦ | ) |
| Australian Dollar | | JPM | | | 1,453 | | | | 11/15/2012 | | | | 1,418 | | | | 53 | |
| Australian Dollar | | GSC | | | (753 | ) | | | 11/15/2012 | | | | (760 | ) | | | (2 | ) |
| Australian Dollar | | JPM | | | (1,453 | ) | | | 11/15/2012 | | | | (1,420 | ) | | | (51 | ) |
| Australian Dollar | | GSC | | | (735 | ) | | | 11/15/2012 | | | | (745 | ) | | | 1 | |
| Canadian Dollar | | DUB | | | 729 | | | | 12/01/2011 | | | | 717 | | | | 13 | |
| Canadian Dollar | | CSFB | | | 104 | | | | 12/01/2011 | | | | 103 | | | | 2 | |
| Chinese Yuan Renminbi (Offshore) | | CSFB | | | 5,769 | | | | 03/12/2012 | | | | 900 | | | | 1 | |
| Chinese Yuan Renminbi (Offshore) | | CSFB | | | 1,715 | | | | 03/12/2012 | | | | 271 | | | | (3 | ) |
| Chinese Yuan Renminbi (Offshore) | | UBS | | | 1,914 | | | | 04/11/2012 | | | | 297 | | | | 2 | |
| Chinese Yuan Renminbi (Offshore) | | UBS | | | 3,184 | | | | 04/11/2012 | | | | 500 | | | | (2 | ) |
| Chinese Yuan Renminbi (Offshore) | | UBS | | | 3,834 | | | | 04/11/2012 | | | | 600 | | | | (1 | ) |
| Euro | | CSFB | | | 1,900 | | | | 11/04/2011 | | | | 2,558 | | | | 71 | |
| Euro | | CSFB | | | (77 | ) | | | 11/04/2011 | | | | (105 | ) | | | (2 | ) |
| Euro | | DUB | | | 940 | | | | 11/10/2011 | | | | 1,245 | | | | 56 | |
| Euro | | BOA | | | 1,107 | | | | 11/10/2011 | | | | 1,465 | | | | 65 | |
| Euro | | CSFB | | | (230 | ) | | | 11/18/2011 | | | | (307 | ) | | | (12 | ) |
| Euro | | CSFB | | | 426 | | | | 12/08/2011 | | | | 598 | | | | (8 | ) |
| Euro | | CSFB | | | (270 | ) | | | 12/08/2011 | | | | (383 | ) | | | 10 | |
| Euro | | CSFB | | | 270 | | | | 12/08/2011 | | | | 380 | | | | (7 | ) |
| Japanese Yen | | DUB | | | 53,237 | | | | 11/25/2011 | | | | 689 | | | | (8 | ) |
| Malaysian Ringgit | | HSBC | | | (4,038 | ) | | | 03/01/2012 | | | | (1,302 | ) | | | (9 | ) |
| Mexican Peso | | CITI | | | (11,088 | ) | | | 02/09/2012 | | | | (890 | ) | | | 65 | |
| Norwegian Krone | | DUB | | | 5,618 | | | | 12/09/2011 | | | | 1,011 | | | | (4 | ) |
| Norwegian Krone | | DUB | | | 5,779 | | | | 12/09/2011 | | | | 1,041 | | | | (5 | ) |
| Pound Sterling | | JPM | | | (615 | ) | | | 11/25/2011 | | | | (960 | ) | | | (28 | ) |
| Pound Sterling | | JPM | | | (896 | ) | | | 12/02/2011 | | | | (1,418 | ) | | | (23 | ) |
| Republic of Korea Won | | DUB | | | (638,454 | ) | | | 11/03/2011 | | | | (573 | ) | | | (4 | ) |
| Republic of Korea Won | | DUB | | | 638,455 | | | | 11/03/2011 | | | | 537 | | | | 39 | |
| Republic of Korea Won | | DUB | | | 638,455 | | | | 12/22/2011 | | | | 571 | | | | 5 | |
| Singapore Dollar | | HSBC | | | 840 | | | | 11/10/2011 | | | | 657 | | | | 13 | |
| Singapore Dollar | | JPM | | | (1,043 | ) | | | 11/16/2011 | | | | (800 | ) | | | (31 | ) |
| Singapore Dollar | | JPM | | | 644 | | | | 11/16/2011 | | | | 518 | | | | (5 | ) |
| Singapore Dollar | | JPM | | | 507 | | | | 03/12/2012 | | | | 418 | | | | (14 | ) |
| Swiss Franc | | JPM | | | (165 | ) | | | 11/25/2011 | | | | (181 | ) | | | (7 | ) |
| Taiwan Dollar | | HSBC | | | 17,172 | | | | 11/18/2011 | | | | 564 | | | | 10 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 161 | |
| | | | | | | | | | | | | | | | | | | | |
FORWARD FOREIGN CROSS CURRENCY CONTRACTS:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Contracts | | | | | | | Amount in U.S. | | | Net Unrealized | |
| | | | | | | Bought | | | | | | | Dollars Bought | | | Appreciation | |
| | | | | | | (Sold) | | | | | | | (Sold) | | | (Depreciation) | |
| Currency | | Counterparty | | | (000’s) | | | Settlement Date | | | (000’s) | | | (000’s) | |
| |
| Swiss Franc | | UBS | | | 1,546 | | | | 12/02/2011 | | | $ | 1,763 | | | $ | 43 | |
| Euro | | UBS | | | (1,247 | ) | | | 12/02/2011 | | | | (1,725 | ) | | | (6 | ) |
| Swiss Franc | | UBS | | | 1,595 | | | | 12/16/2011 | | | | 1,819 | | | | 8 | |
| Euro | | UBS | | | (1,305 | ) | | | 12/16/2011 | | | | (1,805 | ) | | | 6 | |
| Swiss Franc | | CSFB | | | 1,123 | | | | 12/02/2011 | | | | 1,280 | | | | 37 | |
| Euro | | CSFB | | | (904 | ) | | | 12/02/2011 | | | | (1,250 | ) | | | (7 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 81 | |
| | | | | | | | | | | | | | | | | | | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 224 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
Collateral (Received) Pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| BOA | | $ | 55 | | | $ | — | | | $ | 55 | |
| CITI | | | 65 | | | | — | | | | 65 | |
| CSFB | | | 76 | | | | — | | | | 76 | |
| DUB | | | 92 | | | | 100 | | | | 192 | |
| GSC | | | (1 | ) | | | — | | | | (1 | ) |
| HSBC | | | 14 | | | | — | | | | 14 | |
| JPM | | | (106 | ) | | | — | | | | (106 | ) |
| MSC | | | (3 | ) | | | — | | | | (3 | ) |
| UBS | | | 38 | | | | — | | | | 38 | |
| | | |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
| | | | | | | | | |
| | | Percentage of
Total | | | Value | |
| INVESTMENTS BY INDUSTRY (unaudited): | | Investments | | | (000’s) | |
| |
| Oil, Gas & Consumable Fuels | | | 9.3 | % | | $ | 43,540 | |
| Foreign Government Obligation | | | 8 .1 | | | | 38,063 | |
| U.S. Government Obligation | | | 7 .3 | | | | 34,084 | |
| Metals & Mining | | | 4 .8 | | | | 22,452 | |
| Capital Markets | | | 3 .3 | | | | 15,532 | |
| Pharmaceuticals | | | 3 .3 | | | | 15,361 | |
| Diversified Telecommunication Services | | | 3 .0 | | | | 13,801 | |
| Diversified Financial Services | | | 2 .4 | | | | 11,066 | |
| Commercial Banks | | | 2 .3 | | | | 10,554 | |
| Insurance | | | 2 .2 | | | | 10,305 | |
| Software | | | 2 .2 | | | | 10,117 | |
| Chemicals | | | 2 .1 | | | | 9,801 | |
| Food Products | | | 1 .8 | | | | 8,588 | |
| Automobiles | | | 1 .7 | | | | 8,133 | |
| Health Care Providers & Services | | | 1 .7 | | | | 8,064 | |
| Industrial Conglomerates | | | 1 .7 | | | | 8,029 | |
| Computers & Peripherals | | | 1 .7 | | | | 7,968 | |
| Electric Utilities | | | 1 .7 | | | | 7,936 | |
| Real Estate Management & Development | | | 1 .6 | | | | 7,617 | |
| Wireless Telecommunication Services | | | 1 .6 | | | | 7,351 | |
| Energy Equipment & Services | | | 1 .1 | | | | 5,362 | |
| IT Services | | | 1 .1 | | | | 5,264 | |
| Communications Equipment | | | 1 .1 | | | | 5,160 | |
| Semiconductors & Semiconductor Equipment | | | 1 .1 | | | | 5,153 | |
| Health Care Equipment & Supplies | | | 1 .0 | | | | 4,615 | |
| Road & Rail | | | 0 .9 | | | | 4,080 | |
| Electronic Equipment & Instruments | | | 0 .8 | | | | 3,764 | |
| Food & Staples Retailing | | | 0 .8 | | | | 3,737 | |
| Media | | | 0 .8 | | | | 3,570 | |
| Machinery | | | 0 .7 | | | | 3,122 | |
| Independent Power Producers & Energy Traders | | | 0 .7 | | | | 3,078 | |
| Aerospace & Defense | | | 0 .6 | | | | 3,010 | |
| Trading Companies & Distributors | | | 0 .6 | | | | 2,954 | |
| Internet Software & Services | | | 0 .6 | | | | 2,692 | |
| Auto Components | | | 0 .6 | | | | 2,581 | |
| Electrical Equipment | | | 0 .5 | | | | 2,419 | |
| Tobacco | | | 0 .5 | | | | 2,395 | |
| Beverages | | | 0 .5 | | | | 2,315 | |
| Life Sciences Tools & Services | | | 0 .5 | | | | 2,187 | |
| Biotechnology | | | 0 .5 | | | | 2,167 | |
| Multi-Utilities | | | 0 .4 | | | | 2,023 | |
| Construction & Engineering | | | 0 .4 | | | | 1,901 | |
| Household Products | | | 0 .4 | | | | 1,801 | |
| Real Estate Investment Trusts | | | 0 .3 | | | | 1,459 | |
| Household Durables | | | 0 .3 | | | | 1,322 | |
| Office Electronics | | | 0 .3 | | | | 1,173 | |
| Transportation Infrastructure | | | 0 .2 | | | | 1,162 | |
| Specialty Retail | | | 0 .2 | | | | 1,160 | |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 225 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
| | | | | | | | | |
| | | Percentage of | | | Value | |
| INVESTMENTS BY INDUSTRY (continued) (unaudited): | | Total Investments | | | (000’s) | |
| |
| Textiles, Apparel & Luxury Goods | | | 0.2 | % | | $ | 1,089 | |
| Hotels, Restaurants & Leisure | | | 0.2 | | | | 906 | |
| Personal Products | | | 0.2 | | | | 813 | |
| Paper & Forest Products | | | 0.2 | | | | 782 | |
| Construction Materials | | | 0.2 | | | | 741 | |
| Thrifts & Mortgage Finance | | | 0.1 | | | | 681 | |
| Building Products | | | 0.1 | | | | 670 | |
| Purchased Options | | | 0.1 | | | | 615 | |
| Mortgage-Backed Security | | | 0.1 | | | | 555 | |
| Gas Utilities | | | 0.1 | | | | 540 | |
| Leisure Equipment & Products | | | 0.1 | | | | 373 | |
| Consumer Finance | | | 0.1 | | | | 293 | |
| Professional Services | | | 0.1 | | | | 268 | |
| Water Utilities | | | 0.1 | | | | 259 | |
| Containers & Packaging | | | 0.0 | ¥ | | | 237 | |
| Marine | | | 0.0 | ¥ | | | 128 | |
| Diversfied Financial Services | | | 0.0 | ¥ | | | 99 | |
| Multiline Retail | | | 0.0 | ¥ | | | 46 | |
| Internet & Catalog Retail | | | 0.0 | ¥ | | | 33 | |
| | | | | | | |
| Investment Securities, at Value | | | 83.2 | | | | 389,116 | |
| Short-Term Investments | | | 16.8 | | | | 78,511 | |
| | | | | | | |
| Total Investments | | | 100.0 | % | | $ | 467,627 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $45,172. |
| ¥ | | Percentage rounds to less than 0.1%. |
| |
| * | | Floating or variable rate note. Rate is listed as of 10/31/2011. |
| |
| u | | Amount rounds to less than 1. |
| |
| Ž | | The security has a perpetual maturity. The date shown is the next call date. |
| |
| (A) | | At the termination date, a net cash flow is exchanged where the total return is equivalent to the return of the reference index less a financing rate, if any. As a receiver, the fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return. |
| |
| p | | Cash in the amount of $100 has been pledged as collateral with the broker for open swap contracts and/or swaptions § Illiquid. These securities aggregated to $6,647, or 1.57%, of the fund’s net assets. |
| § | | Illiquid. These securities aggregated to $6,647, or 1.57%, of the fund’s net assets. |
| |
| ж | | Cash in the amount of $179 has been segregated as collateral with the broker for open written option contracts. |
| |
| γ | | A portion of this security in the amount of $1,353 has been segregated as collateral with the broker to cover margin requirements for open futures contracts. |
| |
| n | | A portion of these securities in the amount of $9,914 has been segregated as collateral with the broker to cover margin requirements for open written options. |
| |
| Џ | | In default. |
| |
| Ә | | Security fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. These securities have a total fair value of $968, or 0.23%, of the fund’s net assets. |
| |
| ‡ | | Non-income producing security. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Δ | | Restricted security. At 10/31/2011, the fund owned the following securities (representing 0.57% of net assets) which were restricted as to public resale: |
| | | | | | | | | | | | | | | | | | | | | |
| Description | | Date of Acquisition | | | Principal | | | Cost | | | Market Value | | | Price | |
| |
Obsidian Natural Gas Trust | | | 11/05/2010 | | | $ | 1,063 | | | $ | 1,055 | | | $ | 1,063 | | | $ | 100.00 | |
Bank Negara Malaysia Monetary Notes | | | 09/14/2011 | | | MYR4,038 | | | 1,299 | | | | 1,304 | | | MYR32.29 |
| | | | | | | | | | | | | | | | | | | | | |
| Description | | Date of Acquisition | | | Share | | | Cost | | | Market Value | | | Price | |
| |
Federal Hydrogenerating Co. JSC | | | 01/12/2011 | | | | 1,697,146 | | | $ | 63 | | | $ | 60 | | | $ | 0.04 | |
| | |
| ∏ | | Aggregate cost for federal income tax purposes is $446,896. Aggregate gross unrealized appreciation/depreciation for all securities in which there is an excess of value over tax cost were $44,020 and $23,289, respectively. Net unrealized appreciation for tax purposes is $20,731. |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 226 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) At October 31, 2011
DEFINITIONS (all amounts in thousands):
| | | |
|
144A | | 144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At 10/31/2011, these securities aggregated $10,581, or 2.51%, of the fund’s net assets. |
ADR | | American Depositary Receipt |
BOA | | Bank of America |
BP | | Basis Point |
CITI | | Citibank, Inc. |
CSFB | | Credit Suisse First Boston |
DUB | | Deutsche Bank AG |
GDR | | Global Depositary Receipt |
GSC | | Goldman Sachs & Co. |
HSBC | | HSBC Bank USA |
JPM | | JP Morgan Chase & Co. |
JSC | | Joint Stock Company |
LIBOR | | London Interbank Offered Rate |
MSCI | | Morgan Stanley Capital International |
MSC | | Morgan Stanley |
OJSC | | Open Joint Stock Company |
OTC | | Over the Counter |
PJSC | | Private Joint Stock Company |
REIT | | Real Estate Investment Trust (includes domestic REITs and Foreign Real Estate Investment Companies) |
SPDR | | Standard & Poor’s Depositary Receipt |
UBS | | UBS Warburg LLC |
CURRENCY ABBREVIATIONS:
| | | |
|
AUD | | Australian Dollar |
BRL | | Brazilian Real |
CAD | | Canadian Dollar |
CNY | | Chinese Yuan Renminbi |
EUR | | Euro |
GBP | | Pound Sterling |
HKD | | Hong Kong Dollar |
IDR | | Indonesian Rupiah |
JPY | | Japanese Yen |
MXN | | Mexican Peso |
MYR | | Malaysian Ringgit |
NZD | | New Zealand Dollar |
PLN | | Polish Zloty |
SGD | | Singapore Dollar |
TRY | | Turkish New Lira |
USD | | United States Dollar |
VALUATION SUMMARY (all amounts in thousands): э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other Significant | | | | | | | |
| | | Level 1 - Quoted | | | Observable | | | Level 3 - Significant | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Unobservable Inputs | | | 10/31/2011 | |
| |
| Common Stocks | | $ | 159,910 | | | $ | 105,092 | | | $ | 463 | | | $ | 265,465 | |
| Convertible Bonds | | | — | | | | 17,202 | | | | — | | | | 17,202 | |
| Convertible Preferred Stocks | | | 374 | | | | — | | | | — | | | | 374 | |
| Corporate Debt Securities | | | — | | | | 11,782 | | | | ♦ | | | | 11,782 | |
| Foreign Government Obligations | | | — | | | | 38,063 | | | | — | | | | 38,063 | |
| Investment Companies | | | 10,852 | | | | — | | | | — | | | | 10,852 | |
| Loan Assignments | | | — | | | | 1,388 | | | | 374 | | | | 1,762 | |
| Mortgage-Backed Security | | | — | | | | 555 | | | | — | | | | 555 | |
| Preferred Corporate Debt Securities | | | — | | | | 896 | | | | — | | | | 896 | |
| Preferred Stocks | | | 5,725 | | | | 1,586 | | | | — | | | | 7,311 | |
| Purchased Options | | | 473 | | | | 142 | | | | — | | | | 615 | |
| Repurchase Agreement | | | — | | | | 61 | | | | — | | | | 61 | |
| Securities Lending Collateral | | | 46,289 | | | | — | | | | — | | | | 46,289 | |
| Short-Term Foreign Government Obligations | | | — | | | | 2,917 | | | | — | | | | 2,917 | |
| Short-Term U.S. Government Obligations | | | — | | | | 29,244 | | | | — | | | | 29,244 | |
| U.S. Government Obligations | | | — | | | | 34,084 | | | | — | | | | 34,084 | |
| Warrants | | | 145 | | | | 10 | | | | — | | | | 155 | |
| | | |
Total | | $ | 223,768 | | | $ | 243,022 | | | $ | 837 | | | $ | 467,627 | |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 227 | | Annual Report 2011 |
Transamerica BlackRock Global Allocation
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
VALUATION SUMMARY (all amounts in thousands) (continued):
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other Significant | | | | | | | |
| | | Level 1 - Quoted | | | Observable | | | Level 3 - Significant | | | Value at | |
| Other Financial Instruments | | Prices | | | Inputs | | | Unobservable Inputs | | | 10/31/2011 | |
| |
| Written Options | | $ | — | | | $ | (2,224 | ) | | $ | — | | | $ | (2,224 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other Significant | | | | | | | |
| | | Level 1 - Quoted | | | Observable | | | Level 3 - Significant | | | Total at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Unobservable Inputs | | | 10/31/2011 | |
| |
| Futures Contracts — Appreciation | | $ | 10 | | | $ | — | | | $ | — | | | $ | 10 | |
| Futures Contracts — Depreciation | | | (576 | ) | | | — | | | | — | | | | (576 | ) |
| Cross Currency Swap — Appreciation | | | | | | | 13 | | | | — | | | | 13 | |
| Forward Contracts — Appreciation | | | — | | | | 500 | | | | — | | | | 500 | |
| Forward Contracts — Depreciation | | | — | | | | (258 | ) | | | — | | | | (258 | ) |
| Interest Rate Swaps — Appreciation | | | — | | | | ♦ | | | | — | | | | ♦ | |
| Interest Rate Swaps — Depreciation | | | — | | | | (27 | ) | | | — | | | | (27 | ) |
| Total Return Swaps — Appreciation | | | — | | | | 16 | | | | — | | | | 16 | |
| Total Return Swaps — Depreciation | | | — | | | | (16 | ) | | | — | | | | (16 | ) |
| | | |
Total | | $ | (566 | ) | | $ | 228 | | | $ | — | | | $ | (338 | ) |
| | | |
Level 3 Rollforward — Investment Securities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Change in | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | Net Change in | | | | | | | | | | | | | | | Appreciation/ | |
| | | Beginning | | | | | | | | | | | Accrued | | | | | | | Unrealized | | | Transfers | | | Transfers | | | Ending | | | (Depreciation) on | |
| | | Balance at | | | | | | | | | | | Discounts/ | | | Total Realized | | | Appreciation/ | | | into | | | out of | | | Balance at | | | Investments Held at | |
| Security | | 10/31/2010 | | | Purchases | | | Sales | | | (Premiums) | | | Gain/(Loss) | | | Depreciation) | | | Level 3 ¥ | | | Level 3 | | | 10/31/2011 | | | 10/31/2011 | |
| |
| Common Stocks | | $ | — | | | $ | 485 | | | $ | (45 | ) | | $ | — | | | $ | (♦ | ) | | $ | (5 | ) | | $ | 28 | | | $ | — | | | $ | 463 | | | $ | (404 | ) |
| Corporate Debt Securities | | | ♦ | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | ♦ | | | | — | |
| Loan Assignments | | | — | | | | 374 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 374 | | | | — | |
| | | |
Total | | $ | ♦ | | | $ | 859 | | | $ | (45 | ) | | $ | — | | | $ | (♦ | ) | | $ | (5 | ) | | $ | 28 | | | $ | — | | | $ | 837 | | | $ | (404 | ) |
| | | |
| | |
| э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
| |
| ¥ | | Transferred into Level 3 because of unavailability of observable inputs. |
| |
| ƒ | | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at 10/31/2011 may be due to an investment no longer held or categorized as Level 3 at period end. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 228 | | Annual Report 2011 |
Transamerica Goldman Sachs Commodity Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS
At October 31, 2011
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
SHORT-TERM U.S. GOVERNMENT OBLIGATION — 61.4% | | | | | | | | |
U.S. Treasury Bill 0.00%, 11/03/2011 ▲ ^ | | $ | 109,100 | | | $ | 109,099 | |
Total Short-Term U.S. Government Obligations (cost $109,099) | | | | | | | | |
| | | | | | | | | |
| | | | | | | Value | |
| | | Shares | | | (000’s) | |
| |
SECURITIES LENDING COLLATERAL — 25.2% | | | | | | | | |
| State Street Navigator Securities Lending Trust — Prime Portfolio, 0.23% ▲ | | | 44,766,780 | | | | 44,767 | |
Total Securities Lending Collateral (cost $44,767) | | | | | | | | |
| | | | | | | | | |
| | | Principal | | | Value | |
| | | (000’s) | | | (000’s) | |
| |
REPURCHASE AGREEMENT — 34.8% | | | | | | | | |
| State Street Bank & Trust Co. 0.03% ▲, dated 10/31/2011, to be repurchased at $61,966 on 11/01/2011. Collateralized by U.S. Government Agency Obligations, 3.50% — 4.00%, due 11/25/2038 - 12/25/2038, with a total value of $63,209. | | $ | 61,966 | | | | 61,966 | |
Total Repurchase Agreement (cost $61,966) | | | | | | | | |
| | | | | | | | |
| Total Investment Securities (cost $215,832) П | | | | | | | 215,832 | |
| Other Assets and Liabilities — Net | | | | | | | (37,989 | ) |
| | | | | | | | |
| | | | | | | | | |
Net Assets | | | | | | $ | 177,843 | |
| | | | | | | | |
SWAP AGREEMENTS: b p
TOTAL RETURN SWAP AGREEMENTS — PAYABLE: (A)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Premium | | | Net Unrealised | |
| | | | | | | | | | | | | | | | | | | Notional | | | Market | | | Paid | | | Appreciation | |
| | | Financing | | | Maturity | | | Counter- | | | # of Units | | | Amount | | | Value | | | (Received) | | | (Depreciation) | |
| Index | | Rate (BP) | | | Date | | | party | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| Dow Jones-UBS Commodity Index | | | 0.14 | | | | 03/14/2012 | | | MLC | | | 675 | | | $ | 100,839 | | | $ | ♦ | | | $ | ♦ | | | $ | ♦ | |
| Dow Jones-UBS Commodity Index Excess Return | | | 0.14 | | | | 10/10/2012 | | | UAG | | | 517 | | | | 77,280 | | | | ♦ | | | | ♦ | | | | ♦ | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | ♦ | | | $ | ♦ | | | $ | ♦ | |
| | | | | | | | | | | | | | | | | | | | | | | |
Collateral (Received) pledged for OTC Financial Derivative Instruments
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of 10/31/2011:
| | | | | | | | | | | | | |
| | | Total Market Value of | | | Collateral | | | | |
| | | OTC Derivatives | | | (Received)/Pledged | | | Net Exposures(1) | |
| Counterparty | | (000’s) | | | (000’s) | | | (000’s) | |
| |
| MLC | | $ | ♦ | | | $ | 5,370 | | | $ | 5,370 | |
| UAG | | | ♦ | | | | (2,740 | ) | | | (2,740 | ) |
| | |
| (1) | | Net exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 229 | | Annual Report 2011 |
Transamerica Goldman Sachs Commodity Strategy
CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)
At October 31, 2011
NOTES TO SCHEDULE OF INVESTMENTS (all amounts in thousands):
| | |
| ^ | | All or a portion of this security is on loan. The value of all securities on loan is $43,889. |
| |
| ▲ | | Rate shown reflects the yield at 10/31/2011. |
| |
| Π | | Aggregate cost for federal income tax purposes is $177,631. |
| |
| β | | Cash, in the amount of $5,370, has been segregated by the custodian for the benefit of the broker for open swaps contracts. |
| |
| π | | Cash in the amount of $2,740, has been pledged as collateral with the broker for open swap contracts. |
| |
| ♦ | | Amount rounds to less than 1. |
| |
| (A) | | At the termination date, a net cash flow is exchanged where the total return is equivalent to the return of the reference index less a financing rate, if any. As a receiver, the fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return. |
DEFINITIONS:
| | | |
|
BP | | Basis Point |
MLC | | Merrill Lynch Capital Services |
OTC | | Over the Counter |
UAG | | UBS AG |
VALUATION SUMMARY (all amounts in thousands): э
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Value at | |
| Investment Securities | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Repurchase Agreement | | $ | — | | | $ | 61,966 | | | $ | — | | | $ | 61,966 | |
| Securities Lending Collateral | | | 44,767 | | | | — | | | | — | | | | 44,767 | |
| Short-Term U.S. Government Obligation | | | — | | | | 109,099 | | | | — | | | | 109,099 | |
| | | |
Total | | $ | 44,767 | | | $ | 171,065 | | | $ | — | | | $ | 215,832 | |
| | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | Level 2 - | | | | | | | |
| | | | | | | Other | | | Level 3 - | | | | |
| | | Level 1 - | | | Significant | | | Significant | | | | |
| | | Quoted | | | Observable | | | Unobservable | | | Total at | |
| Other Financial Instruments ₣ | | Prices | | | Inputs | | | Inputs | | | 10/31/2011 | |
| |
| Total Return Swap Agreements - Appreciation/Depreciation | | $ | — | | | $ | ♦ | | | $ | — | | | $ | ♦ | |
| | |
| э | | See the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. |
| |
| ₣ | | Other financial instruments are derivative instruments that are valued at unrealized appreciation (depreciation) on the instrument. |
The notes to the financial statements are an integral part of this report.
| | | | |
| |
| Transamerica Funds | | Page 230 | | Annual Report 2011 |
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
At October 31, 2011
(all amounts except per share amounts in thousands)
| | | | | | | | | | | | | |
| | | Transamerica | | | Transamerica | | | Transamerica | |
| | | AQR Managed | | | BlackRock | | | Goldman Sachs | |
| | | Futures | | | Global | | | Commodity | |
| | | Strategy | | | Allocation | | | Strategy | |
| |
Assets: | | | | | | | | | | | | |
| Investment securities, at value | | $ | 221,885 | | | $ | 467,566 | | | $ | 153,866 | |
| Repurchase agreement, at value | | | — | | | | 61 | | | | 61,966 | |
| Cash | | | 21,220 | | | | 21 | | | | — | |
| Cash on deposit with custodian | | | 8,290 | | | | — | | | | 5,370 | |
| Cash on deposit with broker | | | 20,138 | | | | 179 | | | | — | |
| Foreign currency, at value | | | 158 | | | | 770 | | | | — | |
| Receivables: | | | | | | | | | | | | |
| Investment securities sold | | | 15,678 | | | | 6,398 | | | | 356,239 | |
| Shares of beneficial interest sold | | | — | | | | 3,491 | | | | — | |
| Interest | | | 2 | | | | 1,227 | | | | — | (A) |
| Securities lending income (net) | | | — | | | | 25 | | | | 3 | |
| Dividends | | | — | | | | 522 | | | | — | |
| Dividend reclaims | | | — | | | | 113 | | | | 1 | |
| Prepaid expenses | | | — | (A) | | | 1 | | | | — | (A) |
| Unrealized appreciation on swap agreements | | | 258 | | | | 29 | | | | — | |
| Premium paid on swap agreements | | | — | | | | — | (A) | | | 178,119 | |
| Unrealized appreciation on forward foreign currency contracts | | | 10,020 | | | | 500 | | | | — | |
| | | |
| | | $ | 297,649 | | | $ | 480,903 | | | $ | 755,564 | |
| | | |
| | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
| Cash deposit due to custodian | | | — | �� | | | 100 | | | | 2,740 | |
| Accounts payable and accrued liabilities: | | | | | | | | | | | | |
| Investment securities purchased | | | 16,041 | | | | 8,418 | | | | 351,915 | |
| Shares of beneficial interest redeemed | | | 50 | | | | 298 | | | | 28 | |
| Management and advisory fees | | | 281 | | | | 258 | | | | 90 | |
| Trustees fees | | | 1 | | | | 2 | | | | 1 | |
| Transfer agent fees | | | 2 | | | | 3 | | | | 1 | |
| Custody fees | | | 68 | | | | 121 | | | | 11 | |
| Administration fees | | | 5 | | | | 7 | | | | 3 | |
| Audit and tax fees | | | 27 | | | | 33 | | | | 27 | |
| Interest payable | | | — | | | | 2 | | | | 13 | |
| Variation margin | | | 2,031 | | | | 566 | | | | — | |
| Capital gains tax | | | — | | | | 43 | | | | — | |
| Other | | | 9 | | | | 9 | | | | 6 | |
| Collateral for securities on loan | | | — | | | | 46,289 | | | | 44,767 | |
| Written options and swaptions, at value | | | — | | | | 2,224 | | | | — | |
| Unrealized depreciation on swap agreements | | | 177 | | | | 43 | | | | — | |
| Premium received on swap agreements | | | — | | | | 3 | | | | 178,119 | |
| Unrealized depreciation on forward foreign currency contracts | | | 16,548 | | | | 258 | | | | — | |
| | | |
| | | | 35,240 | | | | 58,677 | | | | 577,721 | |
| | | |
Net assets | | $ | 262,409 | | | $ | 422,226 | | | $ | 177,843 | |
| | | |
| | | | | | | | | | | | | |
Net assets consist of: | | | | | | | | | | | | |
| Shares of beneficial interest, unlimited shares authorized, no par value | | $ | 271,253 | | | $ | 386,197 | | | $ | 171,539 | |
| Undistributed (accumulated) net investment income (loss) | | | (2,793 | ) | | | 7,996 | | | | 6,303 | |
| Undistributed (accumulated) net realized gain (loss) from investments | | | 2,410 | | | | 4,040 | | | | 1 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | | | | | | |
| Investment securities | | | — | | | | 24,713 | | | | — | |
| Futures contracts | | | (2,031 | ) | | | (566 | ) | | | — | |
| Written option and swaption contracts | | | — | | | | (355 | ) | | | — | |
| Swap agreements | | | 81 | | | | (14 | ) | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (6,511 | ) | | | 215 | | | | — | |
| | | |
Net assets | | $ | 262,409 | | | $ | 422,226 | | | $ | 177,843 | |
| | | |
| | | | | | | | | | | | | |
Shares outstanding | | | 28,106 | | | | 38,435 | | | | 16,512 | |
| | | | | | | | | | | | | |
Net asset value and offering price per share | | $ | 9.34 | | | $ | 10.99 | | | $ | 10.77 | |
| | | |
| | | | | | | | | | | | | |
| | | |
Investment securities, at cost | | $ | 221,885 | | | $ | 442,853 | | | $ | 153,866 | |
| | | |
Repurchase agreement, at cost | | $ | — | | | $ | 61 | | | $ | 61,966 | |
| | | |
Foreign currency, at cost | | $ | 144 | | | $ | 758 | | | $ | — | |
| | | |
Securities loaned, at value | | $ | — | | | $ | 45,172 | | | $ | 43,889 | |
| | | |
Premium received on written option & swaption contracts | | $ | — | | | $ | 1,869 | | | $ | — | |
| | | |
| | |
| (A) | | Rounds to less than $1. |
The notes to the financial statements are an integral part of this report.
| | | | |
| Transamerica Funds | | Page 231 | | Annual Report 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended October 31, 2011
(all amounts in thousands)
| | | | | | | | | | | | | |
| | | | | | | | | | | Transamerica | |
| | | Transamerica | | | Transamerica | | | Goldman Sachs | |
| | | AQR Managed | | | BlackRock | | | Commodity | |
| | | Futures Strategy | | | Global Allocation | | | Strategy | |
| | | |
Investment income: | | | | | | | | | | | | |
| Dividend income | | $ | 1 | | | $ | 7,882 | | | $ | 4 | |
| Withholding taxes on foreign income | | | — | | | | (390 | ) | | | (5 | ) |
| Interest income | | | 246 | | | | 6,217 | | | | 148 | |
| Securities lending income (net) | | | — | | | | 342 | | | | 47 | |
| | | |
| | | | 247 | | | | 14,051 | | | | 194 | |
| | | |
| | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | |
| Management and advisory | | | 2,782 | | | | 3,572 | | | | 1,089 | |
| Transfer agent | | | 19 | | | | 36 | | | | 13 | |
| Printing and shareholder reports | | | 12 | | | | 6 | | | | 11 | |
| Custody | | | 335 | | | | 640 | | | | 66 | |
| Administration | | | 50 | | | | 97 | | | | 36 | |
| Legal | | | 18 | | | | 25 | | | | 13 | |
| Audit and tax | | | 23 | | | | 21 | | | | 27 | |
| Trustees | | | 4 | | | | 9 | | | | 3 | |
| Registration | | | 6 | | | | — | | | | 1 | |
| Other | | | 60 | | | | 27 | | | | 14 | |
| | | |
| Total expenses | | | 3,309 | | | | 4,433 | | | | 1,273 | |
| | | |
| Net expenses | | | 3,309 | | | | 4,433 | | | | 1,273 | |
| | | |
| | | | | | | | | | | | | |
Net investment income (loss) | | | (3,062 | ) | | | 9,618 | | | | (1,079 | ) |
| | | |
| | | | | | | | | | | | | |
Net realized gain (loss) on transactions from: | | | | | | | | | | | | |
| Investment securities | | | — | | | | 18,677 | (A) | | | — | (C) |
| Futures contracts | | | (1,698 | ) | | | 2,680 | | | | — | |
| Written option and swaption contracts | | | — | | | | 395 | | | | — | |
| Swap agreements | | | 1,739 | | | | 45 | | | | 7,383 | |
| Foreign currency transactions | | | (4,847 | ) | | | 1,298 | | | | (2 | ) |
| | | |
| Net realized gain (loss) | | | (4,806 | ) | | | 23,095 | | | | 7,381 | |
| | | |
| | | | | | | | | | | | | |
Net increase (decrease) in unrealized appreciation (depreciation) on: | | | | | | | | | |
| Investment securities | | | — | | | | (20,394 | )(B) | | | (2 | ) |
| Futures contracts | | | (5,271 | ) | | | (806 | ) | | | — | |
| Written option and swaption contracts | | | — | | | | (48 | ) | | | — | |
| Swap agreements | | | (269 | ) | | | (14 | ) | | | — | |
| Translation of assets and liabilities denominated in foreign currencies | | | (6,577 | ) | | | 320 | | | | — | |
| | | |
Net change in unrealized appreciation (depreciation): | | | (12,117 | ) | | | (20,942 | ) | | | (2 | ) |
| | | |
Net realized and change in unrealized gain (loss) | | | (16,923 | ) | | | 2,153 | | | | 7,379 | |
| | | |
Net increase (decrease) in net assets resulting from operations | | $ | (19,985 | ) | | $ | 11,771 | | | $ | 6,300 | |
| | | |
| | |
| (A) | | Net of foreign capital gains tax of $15. |
| |
| (B) | | Net of foreign capital gains tax of $44. |
| |
| (C) | | Rounds to less than $1. |
The notes to the financial statements are an integral part of this report.
| | | | | |
| Transamerica Funds | | Page 232 | | Annual Report 2011 |
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
For the periods and years ended:
(all amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica AQR Managed Futures | | | Transamerica BlackRock Global | | | Transamerica Goldman Sachs | |
| | | Strategy | | | Allocation | | | Commodity Strategy | |
| | | | | | | October 31, | | | | | | | | | | | | | |
| | | October 31, 2011 | | | 2010(A) | | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2011 | | | October 31, 2010 | |
| |
From operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (3,062 | ) | | $ | (242 | ) | | $ | 9,618 | | | $ | 9,103 | | | $ | (1,079 | ) | | $ | 535 | |
Net realized gain (loss)(B) | | | (4,806 | ) | | | 1,313 | | | | 23,095 | | | | 4,109 | | | | 7,381 | | | | 16,995 | |
Net change in unrealized appreciation (depreciation) (C) | | | (12,117 | ) | | | 3,656 | | | | (20,942 | ) | | | 37,715 | | | | (2 | ) | | | (1,680 | ) |
| | | |
Net increase (decrease) in net assets resulting from operations | | | (19,985 | ) | | | 4,727 | | | | 11,771 | | | | 50,927 | | | | 6,300 | | | | 15,850 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (2,620 | ) | | | — | | | | (7,497 | ) | | | (9,113 | ) | | | (7,529 | ) | | | (634 | ) |
| From net realized gains | | | (1,710 | ) | | | — | | | | — | | | | — | | | | (6,294 | ) | | | — | |
| | | |
Total distributions to shareholders | | | (4,330 | ) | | | — | | | | (7,497 | ) | | | (9,113 | ) | | | (13,823 | ) | | | (634 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 150,756 | | | | 253,160 | | | | 39,339 | | | | 32,667 | | | | 36,071 | | | | 40,919 | |
| Dividends and distributions reinvested | | | 4,330 | | | | — | | | | 7,497 | | | | 9,113 | | | | 13,823 | | | | 634 | |
| Cost of shares redeemed | | | (126,249 | ) | | | — | | | | (126,189 | ) | | | (35,268 | ) | | | (11,504 | ) | | | (31,135 | ) |
| | | |
Net increase (decrease) in net assets resulting from capital shares transactions | | | 28,837 | | | | 253,160 | | | | (79,353 | ) | | | 6,512 | | | | 38,390 | | | | 10,418 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 4,522 | | | | 257,887 | | | | (75,079 | ) | | | 48,326 | | | | 30,867 | | | | 25,634 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | 257,887 | | | | — | | | | 497,305 | | | | 448,979 | | | | 146,976 | | | | 121,342 | |
| | | |
| End of year | | $ | 262,409 | | | $ | 257,887 | | | $ | 422,226 | | | $ | 497,305 | | | $ | 177,843 | | | $ | 146,976 | |
| | | |
Undistributed (accumulated) net investment income (loss) | | $ | (2,793 | ) | | $ | 1,010 | | | $ | 7,996 | | | $ | 4,876 | | | $ | 6,303 | | | $ | 7,529 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Share activity: | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 15,207 | | | | 25,388 | | | | 3,506 | | | | 3,130 | | | | 3,166 | | | | 3,820 | |
| Shares issued-reinvested from distributions | | | 432 | | | | — | | | | 689 | | | | 893 | | | | 1,290 | | | | 61 | |
| Shares redeemed | | | (12,921 | ) | | | — | | | | (11,328 | ) | | | (3,393 | ) | | | (1,026 | ) | | | (2,893 | ) |
| | | |
| Net increase (decrease) in shares outstanding | | | 2,718 | | | | 25,388 | | | | (7,133 | ) | | | 630 | | | | 3,430 | | | | 988 | |
| | | |
| | |
| (A) | | Commenced operations on September 30, 2010. |
| |
| (B) | | Net realized gain (loss) includes all items listed in the Statement of Operations. |
| |
| (C) | | Change in unrealized appreciation (depreciation) includes all items listed in the Statement of Operations. |
The notes to the financial statements are an integral part of this report.
| | | | |
| | | | | |
| Transamerica Funds | | Page 233 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS
For the periods and years ended:
| | | | | | | | | |
| | | Transamerica AQR Managed Futures Strategy |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010(A) | |
| |
Net asset value | | | | | | | | |
| Beginning of year | | $ | 10.16 | | | $ | 10.00 | |
| | | |
| | | | | | | | | |
Investment operations | | | | | | | | |
Net investment loss(B) | | | (0.12 | ) | | | (0.01 | ) |
| Net realized and change in unrealized gain (loss) on investments | | | (0.53 | ) | | | 0.17 | |
| | | |
| Total from investment operations | | | (0.65 | ) | | | 0.16 | |
| | | |
| | | | | | | | | |
Distributions | | | | | | | | |
| Net investment income | | | (0.10 | ) | | | — | |
| Net realized gains on investments | | | (0.07 | ) | | | — | |
| | | |
| Total distributions | | | (0.17 | ) | | | — | |
| | | |
| | | | | | | | | |
Net asset value | | | | | | | | |
| End of year | | $ | 9.34 | | | $ | 10.16 | |
| | | |
| | | | | | | | | |
Total return(C) | | | (6.52 | %) | | | 1.60 | % (D) |
| | | |
| |
Net assets end of year (000’s) | | $ | 262,409 | | | $ | 257,887 | |
| | | |
| |
Ratio and supplemental data | | | | | | | | |
| Expenses to average net assets: | | | | | | | | |
| After reimbursement/recapture | | | 1.31 | % | | | 1.38 | % (E) |
| Before reimbursement/recapture | | | 1.31 | % | | | 1.38 | %(E) |
| Net investment loss, to average net assets | | | (1.21 | %) | | | (1.22 | %)(E) |
| Portfolio turnover rate | | | — | % | | | — | %(D) |
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Black Rock Global Allocation |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007 | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 10.91 | | | $ | 9.99 | | | $ | 9.32 | | | $ | 13.23 | | | $ | 11.23 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income(B) | | | 0.22 | | | | 0.20 | | | | 0.19 | | | | 0.27 | | | | 0.24 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.03 | | | | 0.93 | | | | 1.55 | | | | (3.25 | ) | | | 2.15 | |
| | | |
| Total from investment operations | | | 0.25 | | | | 1.13 | | | | 1.74 | | | | (2.98 | ) | | | 2.39 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.17 | ) | | | (0.21 | ) | | | (0.55 | ) | | | (0.35 | ) | | | (0.20 | ) |
| Net realized gains on investments | | | — | | | | — | | | | (0.52 | ) | | | (0.58 | ) | | | (0.19 | ) |
| | | |
| Total distributions | | | (0.17 | ) | | | (0.21 | ) | | | (1.07 | ) | | | (0.93 | ) | | | (0.39 | ) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.99 | | | $ | 10.91 | | | $ | 9.99 | | | $ | 9.32 | | | $ | 13.23 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total return(C) | | | 2.28 | % | | | 11.40 | % | | | 20.57 | % | | | (24.23 | %) | | | 21.95 | % |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 422,226 | | | $ | 497,305 | | | $ | 448,979 | | | $ | 377,781 | | | $ | 520,484 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.91 | % | | | 0.87 | % | | | 0.90 | % | | | 0.88 | % | | | 0.85 | % |
| Before reimbursement/recapture | | | 0.91 | % | | | 0.87 | % | | | 0.90 | % | | | 0.88 | % | | | 0.85 | % |
| Net investment income, to average net assets | | | 1.98 | % | | | 1.96 | % | | | 2.08 | % | | | 2.25 | % | | | 2.04 | % |
| Portfolio turnover rate | | | 41 | % | | | 51 | % | | | 43 | % | | | 49 | % | | | 30 | % |
| | | |
The notes to the financial statements are an integral part of this report.
| | | | | |
| Transamerica Funds | | Page 234 | | Annual Report 2011 |
FINANCIAL HIGHLIGHTS
For the periods and years ended:
| | | | | | | | | | | | | | | | | | | | | |
| | | Transamerica Goldman Sachs Commodity Strategy | |
| For a share outstanding throughout each period | | October 31, 2011 | | | October 31, 2010 | | | October 31, 2009 | | | October 31, 2008 | | | October 31, 2007(F) | |
| |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | $ | 11.24 | | | $ | 10.03 | | | $ | 8.11 | | | $ | 14.11 | | | $ | 10.00 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Investment operations | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(B) | | | (0.07 | ) | | | 0.04 | | | | 0.05 | | | | 0.03 | | | | 0.04 | |
| Net realized and change in unrealized gain (loss) on investments | | | 0.64 | | | | 1.22 | | | | 1.91 | | | | (5.85 | ) | | | 4.07 | |
| | | |
| Total from investment operations | | | 0.57 | | | | 1.26 | | | | 1.96 | | | | (5.82 | ) | | | 4.11 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Distributions | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.57 | ) | | | (0.05 | ) | | | (0.04 | ) | | | (0.03 | ) | | | — | |
| Net realized gains on investments | | | (0.47 | ) | | | — | | | | — | (G) | | | (0.15 | ) | | | — | |
| | | |
| Total distributions | | | (1.04 | ) | | | (0.05 | ) | | | (0.04 | ) | | | (0.18 | ) | | | — | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net asset value | | | | | | | | | | | | | | | | | | | | |
| End of year | | $ | 10.77 | | | $ | 11.24 | | | $ | 10.03 | | | $ | 8.11 | | | $ | 14.11 | |
| | | |
| |
Total return(C) | | | 5.12 | % | | | 12.61 | % | | | 24.41 | % | | | (41.77 | %) | | | 41.10 | % (D) |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Net assets end of year (000’s) | | $ | 177,843 | | | $ | 146,976 | | | $ | 121,342 | | | $ | 87,252 | | | $ | 156,779 | |
| | | |
| |
Ratio and supplemental data | | | | | | | | | | | | | | | | | | | | |
| Expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| After reimbursement/recapture | | | 0.71 | % | | | 0.86 | % | | | 0.89 | % | | | 0.86 | % | | | 0.89 | % (E) |
| Before reimbursement/recapture | | | 0.71 | % | | | 0.86 | % | | | 0.89 | % | | | 0.86 | % | | | 0.89 | % (E) |
| Net investment income (loss), to average net assets | | | (0.60 | %) | | | 0.38 | % | | | 0.63 | % | | | 0.21 | % | | | 0.39 | % (E) |
| Portfolio turnover rate | | | — | % | | | 112 | % (H) | | | 5 | % | | | 4 | % | | | 7 | % (D) |
| | | |
| | |
| (A) | | Commenced operations on September 30, 2010. |
| |
| (B) | | Calculated based on average number of shares outstanding. |
| |
| (C) | | Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. |
| |
| (D) | | Not annualized. |
| |
| (E) | | Annualized. |
| |
| (F) | | Commenced operations on January 3, 2007. |
| |
| (G) | | Rounds to less than $0.01 or $(0.01). |
| |
| (H) | | Increase in portfolio turnover was triggered by a change in the fund’s objectives. |
Note: Prior to November 1, 2009, all the financial highlights were audited by another independent registered public accounting firm.
The notes to the financial statements are an integral part of this report.
| | | | | |
| Transamerica Funds | | Page 235 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS
At October 31, 2011
(all amounts in thousands)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica Funds (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Effective December 15, 2010, Transamerica AllianceBernstein International Value changed its name to Transamerica Hansberger International Value. Effective January 6, 2011, Transamerica BNY Mellon Market Neutral Strategy changed its name to Transamerica JPMorgan Long/Short Strategy. Transamerica Water Island Arbitrage Strategy commenced operations on May 1, 2011. Transamerica ICAP Select Equity commenced operations on August 31, 2011.
Transamerica BlackRock Large Cap Value, Transamerica Clarion Global Real Estate Securities, Transamerica First Quadrant Global Macro, Transamerica Hansberger International Value, Transamerica ICAP Select Equity, Transamerica Jennison Growth, Transamerica JPMorgan Core Bond, Transamerica JPMorgan International Bond, Transamerica JPMorgan Long/Short Strategy, Transamerica JPMorgan Mid Cap Value, Transamerica Loomis Sayles Bond, Transamerica MFS International Equity, Transamerica Morgan Stanley Emerging Markets Debt, Transamerica Morgan Stanley Mid-Cap Growth, Transamerica Morgan Stanley Small Company Growth, Transamerica Neuberger Berman International, Transamerica Oppenheimer Developing Markets, Transamerica Oppenheimer Small- & Mid-Cap Value, Transamerica PIMCO Real Return TIPS, Transamerica PIMCO Total Return, Transamerica Schroders International Small Cap, Transamerica Third Avenue Value, Transamerica Thornburg International Value, Transamerica Water Island Arbitrage Strategy, Transamerica WMC Emerging Markets, Transamerica AQR Managed Futures Strategy, Transamerica BlackRock Global Allocation, and Transamerica Goldman Sachs Commodity Strategy, (each a “Fund”; collectively, the “Funds”) are part of Transamerica Funds.
Transamerica AQR Managed Futures Strategy, Transamerica Clarion Global Real Estates Securities, Transamerica First Quadrant Global Macro, Transamerica Goldman Sachs Commodity Strategy, Transamerica JPMorgan International Bond, Transamerica Morgan Stanley Emerging Markets Debt, Transamerica PIMCO Real Return TIPS, and Transamerica Third Avenue Value are “non-diversified” under the 1940 Act.
This report should be read in conjunction with the Funds’ current prospectuses, which contains more complete information about the Funds, including investment objectives and strategies.
In the normal course of business, the Funds enter into contracts that contain a variety of representations that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
In preparing the Funds’ financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), estimates or assumptions (which could differ from actual results) may be used that affect reported amounts and disclosures. The following is a summary of significant accounting policies followed by the Funds.
Repurchase agreements: Securities purchased subject to repurchase agreements are held at the Funds’ custodian and, pursuant to the terms of the repurchase agreements, must be collateralized by securities with an aggregate market value greater than or equal to 100% of the resale price. The Funds will bear the risk of value fluctuations until the securities can be sold and may encounter delays and incur costs in liquidating the securities. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Foreign currency denominated investments: The accounting records of the Funds are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the closing exchange rate each day. The costs of foreign securities are translated at the exchange rates in effect when the investment was acquired. Each Fund combines fluctuations from currency exchange rates and fluctuations in value when computing net realized and unrealized gains or losses from investments.
Net foreign currency gains and losses resulting from changes in exchange rates include: 1) foreign currency fluctuations between trade date and settlement date of investment security transactions; 2) gains and losses on forward foreign currency contracts; and 3) the difference between the receivable amounts of interest and dividends recorded in the accounting records in U.S. dollars and the amounts actually received.
Foreign currency denominated assets may involve risks not typically associated with domestic transactions. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social, and economic developments, including those particular to a specific industry, country, or region.
Foreign capital gains taxes: The Funds may be subject to taxes imposed by countries in which they invest, with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated and the capital gains realized on the sale of such investments. The Funds accrue such taxes when the related income or capital gains are earned. Some countries require governmental approval for the repatriation of investment income, capital, or the proceeds of sales earned by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad.
| | | | |
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| Transamerica Funds | | Page 236 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (Continued)
At October 31, 2011
(all amounts in thousands)
Note 1. (continued)
Forward foreign currency contracts: The Funds are subject to foreign currency exchange rate risk exposure in the normal course of pursuing their investment objectives. The Funds enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Forward foreign currency contracts are marked to market daily, with the change in value recorded as an unrealized gain or loss. When the contracts are settled, a realized gain or loss is incurred. Risks may arise from changes in market value of the underlying currencies and from the possible inability of counterparties to meet the terms of their contracts.
Open forward foreign currency contracts at October 31, 2011 are listed in the Schedules of Investments.
Option and swaption contracts: The Funds are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds enter into option contracts to manage exposure to various market fluctuations. Options are valued at the average of the bid and ask (“Mean Quote”) established each day at the close of the board of trade or exchange on which they are traded. The primary risks associated with options are an imperfect correlation between the change in value of the securities held and the prices of the option contracts; the possibility of an illiquid market, and an inability of the counterparty to meet the contract terms.
The Funds write call and put options/swaptions on futures, swaps, securities or currencies they own or in which they may invest, and inflation-capped options. When a Fund writes a covered call, put option/swaption, or inflation-capped option, an amount equal to the premium received by a Fund is included in the Fund’s Statement of Assets and Liabilities as an asset and as an equivalent liability. The purpose of inflation-capped options is to protect the buyer from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give downside protection to the investments in inflation-linked products. Premiums received from writing options/swaptions which expire are treated as realized gains. Premiums received from writing options/swaptions which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying future, swap, security or currency transaction to determine the realized gain or loss. Options are marked-to-market daily to reflect the current value of the option/swaption written.
Funds purchase put and call options/swaptions on foreign or U.S. securities, indices, futures, swaps, and commodities. Purchasing call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure to the underlying instrument. The Funds pay premiums, which are included in the Statements of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options/swaptions which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying futures, swaps, security, commodity, or currency transaction to determine the realized gain or loss. Realized gains or losses are reflected in the realized gains or losses of investment securities on the Statements of Operations.
The underlying face amounts of open option and swaption contracts at October 31, 2011 are listed in the Schedules of Investments.
Transactions in written options were as follows:
| | | | | | | | | |
| Transamerica First Quadrant Global Macro | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | 427 | | | $ | 37 | |
| Sales | | | 13,660 | | | | 731 | |
| Closing Buys | | | (10,431 | ) | | | (623 | ) |
| Expirations | | | (700 | ) | | | (50 | ) |
| Exercised | | | (1,088 | ) | | | (42 | ) |
| | | | | | | |
Balance at October 31, 2011 | | $ | 1,868 | | | $ | 53 | |
| | | | | | | |
| | | | | | | | | |
| Transamerica PIMCO Real Return TIPS | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | 293 | | | $ | 25,566 | |
| Sales | | | 662 | | | | 11,936 | |
| Closing Buys | | | (502 | ) | | | (1,703 | ) |
| Expirations | | | (226 | ) | | | (10,499 | ) |
| Exercised | | | — | | | | — | |
| | | | | | | |
Balance at October 31, 2011 | | $ | 227 | | | $ | 25,300 | |
| | | | | | | |
| | | | | | | | | |
| Transamerica PIMCO Total Return | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | 19 | | | $ | 66 | |
| Sales | | | 375 | | | | 10,039 | |
| Closing Buys | | | (285 | ) | | | (7,010 | ) |
| Expirations | | | (109 | ) | | | (3,095 | ) |
| Exercised | | | — | | | | — | |
| | | | | | | |
Balance at October 31, 2011 | | $ | — | | | $ | — | |
| | | | | | | |
| | | | | | | | | |
| Transamerica Water Island Arbitrage Strategy | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | — | | | $ | — | |
| Sales | | | 1,393 | | | | 1,448 | |
| Closing Buys | | | (246 | ) | | | (203 | ) |
| Expirations | | | (933 | ) | | | (926 | ) |
| Exercised | | | (57 | ) | | | (75 | ) |
| | | | | | | |
Balance at October 31, 2011 | | $ | 157 | | | $ | 244 | |
| | | | | | | |
| | | | | |
| Transamerica Funds | | Page 237 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1. (continued)
Transactions in written options were as follows (continued):
| | | | | | | | | |
| Transamerica BlackRock Global Allocation | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | 355 | | | $ | 147 | |
| Sales | | | 3,261 | | | | 8,381 | |
| Closing Buys | | | (1,397 | ) | | | (5,445 | ) |
| Expirations | | | (171 | ) | | | (1,413 | ) |
| Exercised | | | (179 | ) | | | (33 | ) |
| | | | | | | |
Balance at October 31, 2011 | | $ | 1,869 | | | $ | 1,637 | |
| | | | | | | |
Transactions in written swaptions were as follows:
| | | | | | | | | |
| Transamerica PIMCO Real Return TIPS | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | 2,015 | | | $ | 321,100 | |
| Sales | | | 1,300 | | | | 315,700 | |
| Closing Buys | | | (396 | ) | | | (152,300 | ) |
| Expirations | | | (878 | ) | | | (222,500 | ) |
| Exercised | | | — | | | | — | |
| | | | | | | |
Balance at October 31, 2011 | | $ | 2,041 | | | $ | 262,000 | |
| | | | | | | |
| | | | | | | | | |
| Transamerica PIMCO Total Return | | Premium | | | Notional Amount | |
| |
| Balance at October 31, 2010 | | $ | 1,452 | | | $ | 219,300 | |
| Sales | | | 978 | | | | 109,400 | |
| Closing Buys | | | (460 | ) | | | (54,600 | ) |
| Expirations | | | (1,279 | ) | | | (203,500 | ) |
| Exercised | | | — | | | | — | |
| | | | | | | |
Balance at October 31, 2011 | | $ | 691 | | | $ | 70,600 | |
| | | | | | | |
Futures contracts: The Funds are subject to equity price risk, interest rate risk, foreign currency exchange rate risk, and commodity risk in the normal course of pursuing their investment objectives. The Funds use futures contracts to gain exposure to, or to hedge against, changes in the value of equities, interest rates, or foreign currencies. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Upon entering into such contracts, the Funds are required to deposit with the broker either in cash or securities an initial margin in an amount equal to a certain percentage of the contract amount.
Subsequent payments (variation margin) are paid or received by the Funds each day, depending on the daily fluctuations in the value of the contracts, and are recorded for financial statement purposes as unrealized gains or losses by the Funds. Upon entering into such contracts, the Funds bear the risk of interest or exchange rates or security prices moving unexpectedly, in which case, the Funds may not achieve the anticipated benefits of the futures contracts and may realize losses. With futures, there is minimal counterparty credit risk to the Funds since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
The open futures contracts at October 31, 2011 are listed in the Schedules of Investments. The variation margin receivable or payable, as applicable, is included in the Statements of Assets and Liabilities.
Swap agreements: Swap agreements are privately negotiated agreements between the Funds and a counterparty to exchange or swap investments, cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Certain Funds enter into credit default, cross-currency, interest rate, total return, variance and other forms of swap agreements to manage exposure to credit, currency interest rate risk, and commodity risk. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Swaps are marked to market daily based upon values from third party vendors or quotations from market makers to the extent available, and the change in value, if any, is recorded as an unrealized gain or loss on the Statements of Assets and Liabilities. Payments received or made at the beginning of the measurement period are reflected as such on the Statements of Assets and Liabilities and represent payments made or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). These upfront payments are recorded as realized gains or losses on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statements of Operations. Specific risks and accounting related to each type of swap agreement are identified and described in the following paragraphs:
Credit default swap agreements: The Funds are subject to credit risk in the normal course of pursuing their investment objectives. The Funds enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which they are not otherwise exposed.
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| Transamerica Funds | | Page 238 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS(continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1.(continued)
Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying security in the event of a defined credit event, such as payment default or bankruptcy (buy protection).
Under a credit default swap, one party acts as a guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying security at par if the defined credit event occurs (sell protection). The Funds’ maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the notional amount of the contract. This risk is mitigated by having a master netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.
Certain Funds sell credit default swaps which expose them to risk of loss from credit risk related events specified in the contracts. Although contract-specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium. The aggregate fair value of the credit default swaps are disclosed in the Schedules of Investments. The aggregate fair value of assets posted as collateral, net of assets received as collateral, for these swaps is included in the footnotes to the Schedules of Investments. If a defined credit event had occurred during the period, the swaps’ credit-risk-related contingent features would have been triggered and the Funds would have been required to pay the notional amounts for the credit default swaps with a sell protection less the value of the contracts’ related reference obligations.
Interest rate swap agreements: The Funds are subject to interest rate risk exposure in the normal course of pursuing their investment objectives. To help hedge against this risk, the Funds enter into interest rate swap contracts. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. The Funds with interest rate swap agreements can elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate, on a notional principal amount. The risks of interest rate swaps include changes in market conditions which will affect the value of the contract or the cash flows and the possible inability of the counterparty to fulfill its obligations under the agreement. The Funds’ maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparties over the contracts’ remaining lives, to the extent that that amount is positive. This risk is mitigated by having a master netting arrangement between the Funds and the counterparty and by the posting of collateral by the counterparty to the Funds to cover the Funds’ exposure to the counterparty.
Total return swap agreements: The Funds are subject to commodity, equity, and other risks related to the underlying investments of the swap agreement in the normal course of pursuing their investment objectives. The value of commodity-linked investments held by a Fund can be affected by a variety of factors, including, but not limited to, overall market movements and other factors affecting the value of particular industries or commodities, such as weather, disease, embargoes, acts of war or terrorism, or political and regulatory developments. Commodity-linked derivatives are available from a relatively small number of issuers which subjects a Fund’s investments in commodity-linked derivatives to counterparty risk, which is the risk that the issuer of the commodity-linked derivative will not fulfill its contractual obligations. Total return swap agreements on commodities involve commitments whereby cash flows are exchanged based on the price of a commodity and in exchange for either a fixed or floating price or rate. One party would receive payments based on the market value of the commodity involved and pay a fixed amount. Total return swap agreements on indices involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific reference asset, which may be an equity, index, commodity, or bond, and in return receives a regular stream of payments.
Cross-currency swaps: The Funds are subject to foreign currency exchange rate risks in the normal course of pursuing their investment objectives. The Funds enter into cross-currency swaps to gain or reduce exposure to foreign currencies or to hedge against foreign currency exchange rate and/or interest rate risk. Cross-currency swaps are interest rate swaps in which two parties agree to exchange cash flows based on the notional amounts of two different currencies. The Funds with cross-currency swap agreements can elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Cross-currency swaps can also involve an exchange of notional amounts at the start, during and/or at expiration of the contract, either at the current spot rate or another specified rate.
The open swap agreements at October 31, 2011 are disclosed in the Schedules of Investments.
Reverse repurchase agreements: The Funds enter into reverse repurchase agreements in which the Funds sell portfolio securities and agree to repurchase them from the buyer at a specified date and price. Pursuant to the terms of the reverse repurchase agreements, the Funds’ custodian must segregate assets with an aggregate market value greater than or equal to 100% of the resale price. Securities sold under reverse repurchase agreements are shown in the Schedules of Investments and reflected as a liability on the Statements of Assets and Liabilities.
Transamerica PIMCO Real Return TIPS entered into reverse repurchase agreements during the year ending October 31, 2011. The average reverse repurchase agreement for the year was approximately $8,035, with an average interest rate of 0.17%.
Short sales: A short sale is a transaction in which a Fund sells securities it does not own, but has borrowed, in anticipation of a decline in the market price of the securities. The Funds are obligated to replace the borrowed securities at the market price at the time of replacement. The Funds’ obligation to replace the securities borrowed in connection with a short sale is fully secured by collateral deposited with the custodian. In addition, the Funds consider the short sale to be a borrowing by the Funds that is subject to the asset coverage requirements of the 1940 Act.
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| Transamerica Funds | | Page 239 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1.(continued)
Short sales represent an aggressive trading practice with a high risk/return potential, and short sales involve special considerations. Risks of short sales include that possible losses from short sales may be unlimited (e.g., if the price of stocks sold short rises), whereas losses from direct purchases of securities are limited to the total amount invested, and the Funds may be unable to replace borrowed securities sold short.
The Funds investing in short sales are liable for any dividends payable on securities while those securities are in a short position and also bear other costs, such as charges for the prime brokerage accounts, in connection with its short positions. These costs are reported as dividends and/or interest from securities sold short in the Statements of Operations.
Loan participations/assignments: Participations/assignments in commercial loans may be secured or unsecured. These investments may include standby financing commitments, including revolving credit facilities that obligate the Funds to supply additional cash to the borrowers on demand. Loan participations/assignments involve risks of insolvency of the lending banks or other financial intermediaries. As such, the Funds assume the credit risks associated with the corporate borrowers and may assume the credit risks associated with the interposed banks or other financial intermediaries.
The Funds may be contractually obligated to receive approval from the agent banks and/or borrowers prior to the sale of these investments. Loan participations typically represent direct participation in loans to corporate borrowers, and generally are offered by banks or other financial institutions or lending syndicates. The Funds that participate in such syndications, or can buy a portion of the loans, become part lenders. Loans are often administered by agent banks acting as agents for all holders.
The agent banks administer the terms of the loans, as specified in the loan agreements. In addition, the agent banks are normally responsible for the collection of principal and interest payments from the corporate borrowers and the apportionment of these payments to the credit of all institutions that are parties to the loan agreements. Unless, under the terms of the loans or other indebtedness, the portfolios have direct recourse against the corporate borrowers, the Funds may have to rely on the agent banks or other financial intermediaries to apply appropriate credit remedies against corporate borrowers.
The Funds held no unsecured loan participations at October 31, 2011.
Structured notes: Certain Funds invest in structured notes. A structured debt instrument is a hybrid debt security that has an embedded derivative. This type of instrument is used to manage cash flows from the debt security. All structured notes are listed within the Schedules of Investments.
To be announced (“TBA”) purchase commitments: TBA purchase commitments are entered into to purchase securities for a fixed price at a future date, typically not to exceed 45 days. They are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date, in addition to the risk of decline in the value of the Funds’ other assets. Unsettled TBA purchase commitments are valued at the current value of the underlying securities, according to the procedures described under Security Valuations. Open balances are included in the payable or receivable for investments purchased or sold.
Treasury inflation-protected securities (“TIPS”): Certain Funds invest in TIPS, specially structured bonds in which the principal amount is adjusted daily to keep pace with inflation as measured by the U.S. Consumer Price Index. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to interest income with a corresponding adjustment to cost.
Restricted and illiquid securities: Restricted and illiquid securities are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult.
The restricted and illiquid securities at October 31, 2011 are listed in the Schedules of Investments.
Securities lending: Securities are lent to qualified financial institutions and brokers. The lending of the Funds’ securities exposes the Funds to risks such as the following: (i) the borrowers may fail to return the loaned securities; (ii) the borrowers may not be able to provide additional collateral; (iii) the Funds may experience delays in recovery of the loaned securities or delays in access to collateral; or (iv) the Funds may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge cash collateral equal to at least the market value of the securities loaned. Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio, a money market mutual fund registered under the 1940 Act. By lending such securities, the Funds seek to increase their net investment income through the receipt of interest (after rebates and fees).
Such income is reflected separately on the Statements of Operations. The value of loaned securities and related collateral outstanding at October 31, 2011 are shown in the Schedules of Investments and Statements of Assets and Liabilities.
Income from loaned securities on the Statements of Operations is net of fees paid to the lending agent for its services.
Cash overdraft: Throughout the year, the Funds may have cash overdraft balances. A fee is incurred on these overdrafts at a rate based on the federal funds rate. Expenses from cash overdrafts, if applicable, are included in Other expenses in the Statements of Operations.
Real estate investment trusts (“REITs”): There are certain additional risks involved in investing in REITs. These include, but are not limited to, economic conditions, changes in zoning laws, real estate values, property taxes, and interest rates.
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| Transamerica Funds | | Page 240 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 1. (continued)
Dividend income related to REITs is recorded at management’s estimate of the income included in distributions from the REIT investments. Distributions received in excess of the estimated amount are recorded as a reduction of the cost of investments. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after the fiscal year end and may differ from the estimated amounts.
Commission recapture: The sub-advisers of certain Funds, to the extent consistent with the best execution and usual commission rate policies and practices, have elected to place security transactions of the Funds with broker/dealers with which Transamerica Funds has established a Commission Recapture Program. A Commission Recapture Program is any arrangement under which a broker/dealer applies a portion of the commissions received by such broker/dealer on the security transactions to the Funds. In no event will commissions paid by the Funds be used to pay expenses that would otherwise be borne by any other funds within Transamerica Funds, or by any other party.
Commissions recaptured for the year ended October 31, 2011, are included in net realized gain (loss) on investment securities in the Statements of Operations and are summarized as follows:
| | | | | |
| Fund | | Commissions | |
| |
| Transamerica Clarion Global Real Estate Securities | | $ | 35 | |
| Transamerica Hansberger International Value | | | 10 | |
| Transamerica Jennison Growth | | | 108 | |
| Transamerica JPMorgan Mid Cap Value | | | 5 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 27 | |
| Transamerica Morgan Stanley Small Company Growth | | | 36 | |
| Transamerica Neuberger Berman International | | | —(A) | |
| Transamerica Third Avenue Value | | | 5 | |
| Transamerica Thornburg International Value | | | 4 | |
| Transamerica WMC Emerging Markets | | | 9 | |
| | |
| (A) | | Rounds to less than $1. |
Security transactions and investment income: Security transactions are recorded on the trade date. Security gains and losses are calculated on the specific identification basis. Dividend income, if any, is recorded on the ex-dividend date or, in the case of foreign securities, as soon as the Funds are informed of the ex-dividend dates net of foreign taxes. Interest income, including accretion of discounts and amortization of premiums, is recorded on the accrual basis commencing on the settlement date.
Dividend distributions: Distributions to shareholders are recorded on the ex-dividend dates and are determined in accordance with federal income tax regulations, which may differ from GAAP.
Foreign taxes: The Funds may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Funds accrue such taxes and recoveries as applicable, based upon the current interpretation of tax rules and regulations that exist in the markets in which the Funds invest.
NOTE 2. SECURITY VALUATIONS
All investments in securities are recorded at their estimated fair value. The Funds value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. Eastern Time, each day the NYSE is open for business. The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three Levels of inputs of the fair value hierarchy are defined as follows:
Level 1—Unadjusted quoted prices in active markets for identical securities.
Level 2—Inputs, other than quoted prices included in Level 1, that are observable, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3—Unobservable inputs, which may include Transamerica Asset Management Inc’s (“TAM”) Valuation Committee’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the sub-advisor, issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
| | | | |
| | | | | |
| Transamerica Funds | | Page 241 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 2. (continued)
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, but not limited to, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is generally greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy that is assigned to the fair value measurement of a security is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.
Fair value measurements: Descriptions of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Equity securities (common and preferred stock): Securities are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.
Foreign securities, in which the primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded and are categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of the certain indices of securities based on a statistical analysis of their historical relationship; such valuations are generally categorized in Level 2.
Preferred stock, repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2.
Securities lending collateral: Securities lending collateral is a money market fund which is valued at the net assets of the underlying securities and no valuation adjustments are applied. It is categorized in Level 1 of the fair value hierarchy.
Corporate bonds: The fair value of corporate bonds is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3.
Asset backed securities: The fair value of asset backed securities is estimated based on models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. To the extent the inputs are observable and timely, the values would generally be categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized as Level 3.
Short-term notes: Short-term notes are valued using amortized cost, which approximates fair value. To the extent the inputs are observable and timely, the values would be generally categorized in Level 2 of the fair value hierarchy.
Government securities: Government securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued by principally using dealer quotations. Government securities generally are categorized in Level 2 of the fair value hierarchy.
U.S. government agency securities: U.S. government agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Generally, agency issued debt securities are valued in a manner similar to U. S. government securities. Mortgage pass-throughs include to be announced (“TBA”) securities and mortgage pass-through certificates. Generally, TBA securities and mortgage pass-throughs are valued using dealer quotations. Depending on market activity levels and whether quotations or other observable data are used, these securities are typically categorized in Level 2 of the fair value hierarchy.
Restricted securities (equity and debt): Restricted securities for which quotations are not readily available are valued at fair value as determined in good faith by TAM’s Valuation Committee under the supervision of the Funds’ Board of Trustees. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted securities issued by nonpublic entities may be valued by reference to comparable public entities and/or fundamental data relating to the issuer. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy.
| | | | |
| | | | | |
| Transamerica Funds | | Page 242 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 2.(continued)
Derivative instruments: Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. Over the counter (“OTC”) derivative contracts include forward, swap, option and swaption contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case of interest rate swap and option contracts. A substantial majority of OTC derivative products valued by the Funds using pricing models fall into this category and are categorized within Level 2 of the fair value hierarchy.
Other: Securities for which quotations are not readily available or whose values have been determined to be unreliable are valued at fair market value as determined in good faith by TAM’s Valuation Committee under the supervision of the Funds’ Board of Trustees. For instances which daily market quotes are not readily available, securities may be valued, pursuant to procedures adopted by the Board of Trustees, with reference to other instruments or indices. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy. When a Fund uses fair valuation methods that use significant unobservable inputs to determine a security’s value, the Valuation Committee will choose the method that is believed to accurately reflect fair market value. These securities are categorized as Level 3 of the fair value hierarchy.
The hierarchy classification of inputs used to value the Funds’ investments, at October 31, 2011, are disclosed in the Valuation Summary of each Fund’s Schedule of Investments. Transfers between Levels are considered to have occurred at the end of the reporting period.
There were no significant transfers between Level 1 and Level 2 during the year ended October 31, 2011.
For assets and liabilities for which significant unobservable inputs (Level 3) were used, a reconciliation of the beginning to the ending balances for reported market values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in/out of the Level 3 category during the period. The Level 3 reconciliation, if any, is disclosed in the Valuation Summary of each respective Fund’s Schedule of Investments.
NOTE 3. RELATED PARTY TRANSACTIONS
TAM, the Funds’ investment adviser, is directly owned by Western Reserve Life Assurance Co. of Ohio and AUSA Holding Company (“AUSA”), both of which are indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (“AEGON USA”), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands corporation, and a publicly traded international insurance group.
Transamerica Fund Services, Inc. (“TFS”) is the Funds’ administrator and transfer agent. Transamerica Capital, Inc. (“TCI”) is the Funds’ distributor/principal underwriter. TAM, TFS, and TCI are affiliates of AEGON NV.
Certain officers and trustees of the Funds are also officers and/or trustees of TAM, TFS, and TCI. None of the non-independent trustees receive compensation for services as trustees of the Funds or the entities that invest in the Funds.
The following schedule reflects the percentage of the Funds’ assets owned by affiliated investment companies at October 31, 2011:
| | | | | | | | | |
| | | Market | | | | |
| Transamerica BlackRock Large Cap Value | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 43,371 | | | | 7.97 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 152,280 | | | | 27.99 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 107,103 | | | | 19.69 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 233,225 | | | | 42.87 | |
| | | |
| Total | | $ | 535,979 | | | | 98.52 | % |
| | | |
| | | | | | | | | |
| | | Market | | | % of Net | |
| Transamerica Clarion Global Real Estate Securities | | Value | | | Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 953 | | | | 0.65 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 51,217 | | | | 34.83 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 17,874 | | | | 12.16 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 33,805 | | | | 22.99 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 27,220 | | | | 18.51 | |
| Transamerica Multi-Manager International Portfolio | | | 7,699 | | | | 5.24 | |
| | | |
| Total | | $ | 138,770 | | | | 94.36 | % |
| | | |
| | | | | | | | | |
| | | | | | | % of Net | |
| Transamerica First Quadrant Global Macro | | Market Value | | | Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 13,755 | | | | 10.00 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 10,202 | | | | 7.42 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 26,014 | | | | 18.91 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 34,671 | | | | 25.21 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 42,813 | | | | 31.13 | |
| Transamerica Asset Allocation-Growth VP | | | 10,186 | | | | 7.40 | |
| | | |
| Total | | $ | 137,641 | | | | 100.07 | % |
| | | |
| | | | | | | | | |
| | | | | | | % of Net | |
| Transamerica Hansberger International Value | | Market Value | | | Assets | |
| |
| Transamerica Asset Allocation-Growth Portfolio | | | 16,922 | | | | 10.81 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 7,202 | | | | 4.60 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 16,682 | | | | 10.65 | |
| Transamerica Multi-Manager International Portfolio | | | 26,714 | | | | 17.06 | |
| Transamerica Asset Allocation-Conservative VP | | | 1,645 | | | | 1.05 | |
| Transamerica Asset Allocation-Growth VP | | | 7,964 | | | | 5.09 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 35,712 | | | | 22.80 | |
| Transamerica Asset Allocation-Moderate VP | | | 21,665 | | | | 13.83 | |
| Transamerica International Moderate Growth VP | | | 20,538 | | | | 13.11 | |
| | | |
| Total | | $ | 155,044 | | | | 99.01 | % |
| | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 243 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
| | | | | | | | | |
| | | Market | | | | |
| Transamerica ICAP Select Equity | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 38,088 | | | | 4.07 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 135,125 | | | | 14.43 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 93,917 | | | | 10.03 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 202,688 | | | | 21.65 | |
| Transamerica Asset Allocation-Conservative VP | | | 36.014 | | | | 3.85 | |
| Transamerica Asset Allocation-Growth VP | | | 82,272 | | | | 8.79 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 226,238 | | | | 24.16 | |
| Transamerica Asset Allocation-Moderate VP | | | 115,195 | | | | 12.30 | |
| | | |
| Total | | $ | 929,537 | | | | 99.28 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Jennison Growth | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 54,607 | | | | 8.83 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 175,474 | | | | 28.36 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 143,970 | | | | 23.27 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 236,513 | | | | 38.22 | |
| | | |
| Total | | $ | 610,564 | | | | 98.67 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica JPMorgan Core Bond | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 184,709 | | | | 8.36 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 141,218 | | | | 6.39 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 133,115 | | | | 6.03 | |
| Transamerica Asset Allocation-Conservative VP | | | 387,706 | | | | 17.55 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 654,369 | | | | 29.63 | |
| Transamerica Asset Allocation-Moderate VP | | | 631,034 | | | | 28.57 | |
| Transamerica International Moderate Growth VP | | | 53,304 | | | | 2.41 | |
| | | |
| Total | | $ | 2,185,455 | | | | 98.94 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica JPMorgan International Bond | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 48,099 | | | | 10.12 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 52,749 | | | | 11.10 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 54,127 | | | | 11.39 | |
| Transamerica Asset Allocation-Conservative VP | | | 36,676 | | | | 7.72 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 183,689 | | | | 38.65 | |
| Transamerica Asset Allocation-Moderate VP | | | 96,934 | | | | 20.39 | |
| | | |
| Total | | $ | 472,274 | | | | 99.37 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica JPMorgan Long/Short Strategy | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 10,387 | | | | 9.18 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 7,660 | | | | 6.77 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 19,532 | | | | 17.27 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 25,991 | | | | 22.98 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 43,689 | | | | 38.63 | |
| Transamerica Asset Allocation-Growth VP | | | 5,899 | | | | 5.22 | |
| | | |
| Total | | $ | 113,158 | | | | 100.04 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica JPMorgan Mid Cap Value | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 7,406 | | | | 4.68 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 36,410 | | | | 22.99 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 40,043 | | | | 25.29 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 74,529 | | | | 47.07 | |
| | | |
| Total | | $ | 158,388 | | | | 100.03 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Loomis Sayles Bond | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 67,922 | | | | 14.69 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 91,129 | | | | 19.71 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 59,521 | | | | 12.87 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 58,887 | | | | 12.74 | |
| Transamerica Asset Allocation-Conservative VP | | | 31,855 | | | | 6.89 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 50,533 | | | | 10.93 | |
| Transamerica Asset Allocation-Moderate VP | | | 90,669 | | | | 19.61 | |
| Transamerica BlackRock Tactical Allocation VP | | | 6,664 | | | | 1.44 | |
| Transamerica Madison Balanced Allocation VP | | | 849 | | | | 0.18 | |
| Transamerica Madison Conservative Allocation VP | | | 604 | | | | 0.13 | |
| Transamerica Madison Moderate Growth Allocation VP | | | 48 | | | | 0.01 | |
| | | |
| Total | | $ | 458,681 | | | | 99.21 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica MFS International Equity | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 5,682 | | | | 1.61 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 16,107 | | | | 4.55 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 19,339 | | | | 5.47 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 18,742 | | | | 5.30 | |
| Transamerica Multi-Manager International Portfolio | | | 44,527 | | | | 12.59 | |
| Transamerica Asset Allocation-Conservative VP | | | 13,091 | | | | 3.70 | |
| Transamerica Asset Allocation-Growth VP | | | 18,355 | | | | 5.19 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 69,611 | | | | 19.68 | |
| Transamerica Asset Allocation-Moderate VP | | | 71,174 | | | | 20.12 | |
| Transamerica International Moderate Growth VP | | | 74,127 | | | | 20.96 | |
| | | |
| Total | | $ | 350,755 | | | | 99.17 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Morgan Stanley Emerging Markets Debt | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 18,812 | | | | 6.06 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 32,274 | | | | 10.40 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 35,364 | | | | 11.39 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 18,690 | | | | 6.02 | |
| Transamerica Asset Allocation-Conservative VP | | | 36,963 | | | | 11.91 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 86,798 | | | | 27.97 | |
| Transamerica Asset Allocation-Moderate VP | | | 77,693 | | | | 25.03 | |
| | | |
| Total | | $ | 306,594 | | | | 98.78 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Morgan Stanley Mid-Cap Growth | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 7,914 | | | | 2.95 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 38,394 | | | | 14.29 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 29,804 | | | | 11.09 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 54,178 | | | | 20.17 | |
| Transamerica Asset Allocation-Conservative VP | | | 2,947 | | | | 1.10 | |
| Transamerica Asset Allocation-Growth VP | | | 22,696 | | | | 8.45 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 88,257 | | | | 32.85 | |
| Transamerica Asset Allocation-Moderate VP | | | 23,150 | | | | 8.62 | |
| | | |
| Total | | $ | 267,340 | | | | 99.51 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Morgan Stanley Small Company Growth | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 8,595 | | | | 4.82 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 24,766 | | | | 13.88 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 15,812 | | | | 8.86 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 25,747 | | | | 14.43 | |
| Transamerica Asset Allocation-Conservative VP | | | 6,957 | | | | 3.90 | |
| Transamerica Asset Allocation-Growth VP | | | 16,538 | | | | 9.27 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 47,254 | | | | 26.49 | |
| Transamerica Asset Allocation-Moderate VP | | | 30,807 | | | | 17.27 | |
| | | |
| Total | | $ | 176,476 | | | | 98.91 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Neuberger Berman International | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 4,057 | | | | 1.13 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 50,777 | | | | 14.12 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 15,822 | | | | 4.42 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 49,269 | | | | 13.70 | |
| Transamerica Multi-Manager International Portfolio | | | 32,637 | | | | 9.07 | |
| Transamerica Asset Allocation-Conservative VP | | | 9,408 | | | | 2.62 | |
| Transamerica Asset Allocation-Growth VP | | | 26,965 | | | | 7.50 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 84,173 | | | | 23.40 | |
| Transamerica Asset Allocation-Moderate VP | | | 44,720 | | | | 12.43 | |
| Transamerica International-Moderate Growth VP | | | 39,264 | | | | 10.92 | |
| | | |
| Total | | $ | 357,152 | | | | 99.31 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Oppenheimer Developing Markets | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 11,352 | | | | 2.28 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 72,480 | | | | 14.56 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 30,351 | | | | 6.10 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 109,210 | | | | 21.94 | |
| Transamerica Multi-Manager International Portfolio | | | 39,227 | | | | 7.88 | |
| Transamerica Asset Allocation-Conservative VP | | | 8,045 | | | | 1.62 | |
| Transamerica Asset Allocation-Growth VP | | | 51,999 | | | | 10.45 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 124,830 | | | | 25.08 | |
| Transamerica Asset Allocation-Moderate VP | | | 45,474 | | | | 9.14 | |
| | | |
| Total | | $ | 492,968 | | | | 99.06 | % |
| | | |
| | | | | |
| Transamerica Funds | | Page 244 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 7,127 | | | | 2.76 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 35,643 | | | | 13.79 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 29,046 | | | | 11.23 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 52,423 | | | | 20.28 | |
| Transamerica Asset Allocation-Conservative VP | | | 4,444 | | | | 1.72 | |
| Transamerica Asset Allocation-Growth VP | | | 24,373 | | | | 9.43 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 73,949 | | | | 28.60 | |
| Transamerica Asset Allocation-Moderate VP | | | 29,879 | | | | 11.56 | |
| | | |
| Total | | $ | 256,884 | | | | 99.36 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica PIMCO Real Return TIPS | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 72,732 | | | | 7.49 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 113,816 | | | | 11.71 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 50,957 | | | | 5.24 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 23,874 | | | | 2.46 | |
| Transamerica Asset Allocation-Conservative VP | | | 166,432 | | | | 17.13 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 195,173 | | | | 20.09 | |
| Transamerica Asset Allocation-Moderate VP | | | 324,076 | | | | 33.35 | |
| Transamerica International Moderate Growth VP | | | 12,573 | | | | 1.29 | |
| | | |
| Total | | $ | 959,633 | | | | 98.76 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica PIMCO Total Return | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 186,651 | | | | 29.83 | % |
| Transamerica Asset Allocation-Moderate Portfolio | | | 236,520 | | | | 37.80 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 175,946 | | | | 28.12 | |
| | | |
| Total | | $ | 599,117 | | | | 95.75 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Schroders International Small Cap | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 5,042 | | | | 1.53 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 41,682 | | | | 12.62 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 18,342 | | | | 5.55 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 34,536 | | | | 10.45 | |
| Transamerica Multi-Manager International Portfolio | | | 38,367 | | | | 11.61 | |
| Transamerica Asset Allocation-Conservative VP | | | 8,496 | | | | 2.57 | |
| Transamerica Asset Allocation-Growth VP | | | 21,309 | | | | 6.45 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 87,124 | | | | 26.37 | |
| Transamerica Asset Allocation-Moderate VP | | | 34,101 | | | | 10.32 | |
| Transamerica International Moderate Growth VP | | | 38,178 | | | | 11.56 | |
| | | |
| Total | | $ | 327,177 | | | | 99.04 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Third Avenue Value | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 18,474 | | | | 6.00 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 47,256 | | | | 15.36 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 37,246 | | | | 12.10 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 78,342 | | | | 25.46 | |
| Transamerica Asset Allocation-Conservative VP | | | 7,774 | | | | 2.53 | |
| Transamerica Asset Allocation-Growth VP | | | 18,263 | | | | 5.93 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 71,627 | | | | 23.28 | |
| Transamerica Asset Allocation-Moderate VP | | | 27,163 | | | | 8.83 | |
| | | |
| Total | | $ | 306,145 | | | | 99.49 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Thornburg International Value | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 6,439 | | | | 1.44 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 34,345 | | | | 7.66 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 15,916 | | | | 3.55 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 45,421 | | | | 10.13 | |
| Transamerica Multi-Manager International Portfolio | | | 44,059 | | | | 9.82 | |
| Transamerica Asset Allocation-Conservative VP | | | 13,125 | | | | 2.93 | |
| Transamerica Asset Allocation-Growth VP | | | 33,940 | | | | 7.57 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 149,633 | | | | 33.37 | |
| Transamerica Asset Allocation-Moderate VP | | | 73,520 | | | | 16.39 | |
| Transamerica International Moderate Growth VP | | | 28,902 | | | | 6.45 | |
| Transamerica Madison Balanced Allocation VP | | | 156 | | | | 0.03 | |
| Transamerica Madison Moderate Growth Allocation VP | | | 17 | | | | 0.00 | |
| | | |
| Total | | $ | 445,473 | | | | 99.34 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica WMC Emerging Markets | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 5,457 | | | | 1.61 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 7,223 | | | | 2.13 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 17,801 | | | | 5.24 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 41,008 | | | | 12.07 | |
| Transamerica Multi-Manager International Portfolio | | | 27,513 | | | | 8.10 | |
| Transamerica Asset Allocation-Conservative VP | | | 6,316 | | | | 1.86 | |
| Transamerica Asset Allocation-Growth VP | | | 12,280 | | | | 3.62 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 51,311 | | | | 15.11 | |
| Transamerica Asset Allocation-Moderate VP | | | 26,814 | | | | 7.89 | |
| | | |
| Total | | $ | 195,723 | | | | 57.62 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Water Island Arbitrage Strategy | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 20,391 | | | | 16.42 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 13,667 | | | | 11.00 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 27,873 | | | | 22.44 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 20,339 | | | | 16.37 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 41,883 | | | | 33.72 | |
| | | |
| Total | | $ | 124,153 | | | | 99.95 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica AQR Managed Futures Strategy | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 23,609 | | | | 9.00 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 19,164 | | | | 7.30 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 55,096 | | | | 21.00 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 90,155 | | | | 34.36 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 56,968 | | | | 21.71 | |
| Transamerica Asset Allocation-Growth VP | | | 17,287 | | | | 6.59 | |
| | | |
| Total | | $ | 262,279 | | | | 99.95 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica BlackRock Global Allocation | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 21,809 | | | | 5.17 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 11,847 | | | | 2.81 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 44,453 | | | | 10.53 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 73,142 | | | | 17.32 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 41,972 | | | | 9.94 | |
| Transamerica Multi-Manager International Portfolio | | | 14,925 | | | | 3.53 | |
| Transamerica Asset Allocation-Conservative VP | | | 10,190 | | | | 2.41 | |
| Transamerica Asset Allocation-Growth VP | | | 16,590 | | | | 3.93 | |
| Transamerica Asset Allocation-Moderate Growth VP | | | 112,623 | | | | 26.67 | |
| Transamerica Asset Allocation-Moderate VP | | | 44,802 | | | | 10.61 | |
| Transamerica BlackRock Tactical Allocation VP | | | 28,060 | | | | 6.65 | |
| | | |
| Total | | $ | 420,413 | | | | 99.57 | % |
| | | |
| | | | | | | | | |
| | | Market | | | | |
| Transamerica Goldman Sach Commodity Strategy | | Value | | | % of Net Assets | |
| |
| Transamerica Asset Allocation-Conservative Portfolio | | $ | 13,409 | | | | 7.54 | % |
| Transamerica Asset Allocation-Growth Portfolio | | | 15,708 | | | | 8.83 | |
| Transamerica Asset Allocation-Moderate Portfolio | | | 35,007 | | | | 19.68 | |
| Transamerica Asset Allocation-Moderate Growth Portfolio | | | 62,919 | | | | 35.38 | |
| Transamerica Multi-Manager Alternative Strategies Portfolio | | | 36,966 | | | | 20.79 | |
| Transamerica Asset Allocation-Growth VP | | | 12,974 | | | | 7.30 | |
| | | |
| Total | | $ | 176,983 | | | | 99.52 | % |
| | | |
| | | | | |
| Transamerica Funds | | Page 245 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
Investment advisory fees: The Funds pay management fees to TAM based on average daily net assets (“ANA”) at the following breakpoints:
| | | | | |
|
Transamerica BlackRock Large Cap Value | | | | |
| First $250 million | | | 0.80 | % |
| Over $250 million up to $750 million | | | 0.775 | % |
| Over $750 million up to $1 billion | | | 0.75 | % |
| Over $1 billion up to $2 billion | | | 0.65 | % |
| Over $2 billion | | | 0.625 | % |
Transamerica Clarion Global Real Estate Securities | | | | |
| First $250 million | | | 0.80 | % |
| Over $250 million up to $500 million | | | 0.775 | % |
| Over $500 million up to $1 billion | | | 0.70 | % |
| Over $1 billion | | | 0.65 | % |
Transamerica First Quadrant Global Macro (Effective July 1, 2011) | | | | |
| First $300 million | | | 1.25 | % |
| Over $300 million | | | 1.20 | % |
Transamerica First Quadrant Global Macro (Prior to July 1, 2011) | | | | |
| First $150 million | | | 1.40 | % |
| Over $150 million up to $300 million | | | 1.30 | % |
| Over $300 million | | | 1.20 | % |
Transamerica Hansberger International Value | | | 0.88 | % |
| First $200 million | | | | |
| Over $200 million up to $500 million | | | 0.81 | % |
| Over $500 million | | | 0.77 | % |
Transamerica ICAP Select Equity | | | | |
| First $200 million | | | 0.80 | % |
| Over $200 million up to $500 million | | | 0.74 | % |
| Over $500 million up to $1 billion | | | 0.69 | % |
| Over $1 billion up to $1.5 billion | | | 0.67 | % |
| Over $1.5 billion | | | 0.62 | % |
Transamerica Jennison Growth | | | | |
| First $250 million | | | 0.80 | % |
| Over $250 million up to $500 million | | | 0.775 | % |
| Over $500 million up to $1 billion | | | 0.70 | % |
| Over $1 billion up to $1.5 billion | | | 0.675 | % |
| Over $1.5 billion | | | 0.65 | % |
Transamerica JPMorgan Core Bond | | | | |
| First $750 million | | | 0.45 | % |
| Over $750 million up to $1 billion | | | 0.40 | % |
| Over $1 billion | | | 0.375 | % |
Transamerica JPMorgan International Bond | | | | |
| First $100 million | | | 0.55 | % |
| Over $100 million up to $250 million | | | 0.52 | % |
| Over $250 million up to $500 million | | | 0.51 | % |
| Over $500 million up to $1 billion | | | 0.50 | % |
| Over $1 billion | | | 0.47 | % |
Transamerica JPMorgan Long/Short Strategy (Effective January 6, 2011) | | | | |
| ANA | | | 1.30 | % |
Transamerica JPMorgan Long/Short Strategy (Prior to January 6, 2011) | | | | |
| ANA | | | 1.40 | % |
Transamerica JPMorgan Mid Cap Value | | | | |
| First $100 million | | | 0.85 | % |
| Over $100 million | | | 0.80 | % |
Transamerica Loomis Sayles Bond (Effective July 1, 2011) | | | | |
| First $200 million | | | 0.675 | % |
| Over $200 million up to $750 million | | | 0.625 | % |
| Over $750 million | | | 0.575 | % |
Transamerica Loomis Sayles Bond (Prior to July 1, 2011) | | | | |
| First $200 million | | | 0.675 | % |
| Over $200 million up to $750 million | | | 0.625 | % |
| Over $750 million | | | 0.60 | % |
Transamerica MFS International Equity | | | | |
| First $250 million | | | 0.90 | % |
| Over $250 million up to $500 million | | | 0.875 | % |
| Over $500 million up to $1 billion | | | 0.85 | % |
| Over $1 billion | | | 0.80 | % |
Transamerica Morgan Stanley Emerging Markets Debt | | | | |
| First $250 million | | | 0.95 | % |
| Over $250 million up to $500 million | | | 0.85 | % |
| Over $500 million | | | 0.80 | % |
Transamerica Morgan Stanley Mid-Cap Growth | | | | |
| First $1 billion | | | 0.80 | % |
| Over $1 billion | | | 0.775 | % |
Transamerica Morgan Stanley Small Company Growth | | | | |
| First $500 million | | | 0.95 | % |
| Over $500 million | | | 0.85 | % |
Transamerica Neuberger Berman International | | | | |
| First $100 million | | | 1.00 | % |
| Over $100 million | | | 0.95 | % |
Transamerica Oppenheimer Developing Markets | | | | |
| First $50 million | | | 1.20 | % |
| Over $50 million up to $200 million | | | 1.15 | % |
| Over $200 million up to $500 million | | | 1.10 | % |
| Over $500 million | | | 1.05 | % |
Transamerica Oppenheimer Small- & Mid-Cap Value | | | | |
| First $100 million | | | 0.95 | % |
| Over $100 million up to $250 million | | | 0.90 | % |
| Over $250 million up to $500 million | | | 0.85 | % |
| Over $500 million | | | 0.825 | % |
Transamerica PIMCO Real Return TIPS | | | | |
| First $250 million | | | 0.70 | % |
| Over $250 million up to $750 million | | | 0.65 | % |
| Over $750 million up to $1 billion | | | 0.60 | % |
| Over $1 billion | | | 0.55 | % |
Transamerica PIMCO Total Return | | | | |
| First $250 million | | | 0.675 | % |
| Over $250 million up to $750 million | | | 0.65 | % |
| Over $750 million | | | 0.60 | % |
Transamerica Schroders International Small Cap | | | | |
| First $300 million | | | 1.07 | % |
| Over $300 million | | | 1.00 | % |
Transamerica Third Avenue Value | | | | |
| ANA | | | 0.80 | % |
Transamerica Thornburg International Value | | | | |
| First $100 million | | | 1.10 | % |
| Over $100 million up to $300 million | | | 1.00 | % |
| Over $300 million | | | 0.95 | % |
Transamerica Water Island Arbitrage Strategy | | | | |
| First $50 million | | | 1.05 | % |
| Over $50 million | | | 1.00 | % |
Transamerica WMC Emerging Markets | | | | |
| First $300 million | | | 1.15 | % |
| Over $300 million | | | 1.10 | % |
Transamerica AQR Managed Futures Strategy | | | | |
| First $500 million | | | 1.10 | % |
| Over $500 million | | | 1.05 | % |
Transamerica BlackRock Global Allocation | | | | |
| First $100 million | | | 0.80 | % |
| Over $100 million | | | 0.72 | % |
Transamerica Goldman Sachs Commodity Strategy | | | | |
| First $200 million | | | 0.61 | % |
| Over $200 million up to $1 billion | | | 0.59 | % |
| Over $1 billion | | | 0.56 | % |
| | | | | |
| Transamerica Funds | | Page 246 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
TAM has contractually agreed to waive its advisory fee and will reimburse each Fund to the extent that operating expenses, excluding distribution and service fees and extraordinary expenses exceed the following stated annual limit:
| | | | | |
| Fund | | Expense Limit | |
| |
| Transamerica BlackRock Large Cap Value | | | 1.00 | % |
| Transamerica First Quadrant Global Macro | | | 1.65 | |
| Transamerica Hansberger International Value | | | 1.13 | |
| Transamerica ICAP Select Equity | | | 0.90 | |
| Transamerica JPMorgan Core Bond | | | 0.70 | |
| Transamerica JPMorgan International Bond | | | 0.75 | |
| Transamerica JPMorgan Long/Short Strategy* | | | 1.65 | |
| Transamerica JPMorgan Mid Cap Value | | | 1.05 | |
| Transamerica Loomis Sayles Bond | | | 0.88 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 1.15 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 1.00 | |
| Transamerica Morgan Stanley Small Company Growth | | | 1.15 | |
| Transamerica Neuberger Berman International | | | 1.25 | |
| Transamerica Oppenheimer Developing Markets | | | 1.45 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 1.15 | |
| Transamerica Schroders International Small Cap | | | 1.27 | |
| Transamerica Third Avenue Value | | | 1.00 | |
| Transamerica Thornburg International Value | | | 1.35 | |
| Transamerica Water Island Arbitrage Strategy* | | | 1.25 | |
| Transamerica WMC Emerging Markets | | | 1.40 | |
| Transamerica AQR Managed Futures Strategy | | | 1.45 | |
| Transamerica BlackRock Global Allocation | | | 1.00 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 1.00 | |
| | |
| * | | Exclusive of dividend and interest expense on securities sold short. |
Funds not listed in the above table did not have an expense limit.
If total Fund expenses, excluding certain extraordinary expenses, fall below the annual expense limitation agreement agreed to by the adviser within the succeeding 36 months following a reimbursement from/by the adviser, the Funds may recapture a portion or all of the previously waived/reimbursed expenses to reimburse the adviser.
Amounts recaptured by the adviser during the year ended October 31, 2011 were as follows:
| | | | | |
| Fund | | Recaptured Amount | |
| |
| Transamerica WMC Emerging Markets | | $ | 99 | |
The following amounts were available for recapture as of October 31, 2011:
| | | | | |
| Transamerica Water Island | | Reimbursement of | | Available for Recapture |
| Arbitrage Strategy | | Fund Expenses | | Through |
| |
| Fiscal Year 2011: | | $ 61 | | 10/31/2014 |
Administrative services: The Funds have entered into an agreement with TFS for financial and legal fund administration services. The Funds pay TFS an annual fee of 0.02% of ANA. The Legal fees on the Statements of Operations are fees paid to external legal counsel.
| | | | | |
| Transamerica Funds | | Page 247 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 3. (continued)
Transfer agent fees: Pursuant to a Transfer Agency Agreement, as amended, the Funds pay TFS a fee for providing transfer agency services. Fees paid and the amounts due to TFS for the year ended October 31, 2011 are as follows:
| | | | | | | | | |
| Fund | | Fees Paid to TFS | | | Due to TFS | |
| |
| Transamerica BlackRock Large Cap Value | | | 48 | | | | 4 | |
| Transamerica Clarion Global Real Estate Securities | | | 19 | | | | — | (A) |
| Transamerica First Quadrant Global Macro | | | 10 | | | | 1 | |
| Transamerica Hansberger International Value | | | 19 | | | | 1 | |
| Transamerica ICAP Select Equity | | | 8 | | | | 5 | |
| Transamerica Jennison Growth | | | 58 | | | | 1 | |
| Transamerica JPMorgan Core Bond | | | 103 | | | | 14 | |
| Transamerica JPMorgan International Bond | | | 28 | | | | 3 | |
| Transamerica JPMorgan Mid Cap Value | | | 13 | | | | 1 | |
| Transamerica JPMorgan Long/Short Strategy | | | 9 | | | | 1 | |
| Transamerica Loomis Sayles Bond | | | 42 | | | | 3 | |
| Transamerica MFS International Equity | | | 39 | | | | 1 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 23 | | | | 2 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 24 | | | | 2 | |
| Transamerica Morgan Stanley Small Company Growth | | | 15 | | | | 1 | |
| Transamerica Neuberger Berman International | | | 42 | | | | 2 | |
| Transamerica Oppenheimer Small- & Mid Cap Value | | | 24 | | | | 2 | |
| Transamerica Oppenheimer Developing Markets | | | 45 | | | | 3 | |
| Transamerica PIMCO Real Return TIPS | | | 63 | | | | 6 | |
| Transamerica PIMCO Total Return | | | 46 | | | | 3 | |
| Transamerica Schroders International Small Cap | | | 40 | | | | 2 | |
| Transamerica Third Avenue Value | | | 29 | | | | 2 | |
| Transamerica Thornburg International Value | | | 53 | | | | 3 | |
| Transamerica Water Island Arbitrage Strategy | | | 3 | | | | 1 | |
| Transamerica WMC Emerging Markets | | | 31 | | | | 2 | |
| Transamerica AQR Managed Futures Strategy | | | 19 | | | | 2 | |
| Transamerica BlackRock Global Allocation | | | 36 | | | | 3 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 13 | | | | 1 | |
| | |
| (A) | | Rounds to less than $1. |
Deferred compensation plan: Under a non-qualified deferred compensation plan effective January 1, 1996, as amended and restated (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the Trust to an Independent Trustee on a current basis for services rendered as Trustee. Deferred compensation amounts will accumulate based on the value of Class A (or comparable) shares of a series of Transamerica Funds (without imposition of a sales charge), or investment options under Transamerica Partners Institutional Funds and Transamerica Institutional Asset Allocation Funds, as elected by the Trustee.
Brokerage commissions: Brokerage commissions incurred on security transactions placed with affiliates of the adviser or sub-advisers for the year ended October 31, 2011 were as follows:
| | | | | |
| | | Brokerage | |
| Fund | | Commissions | |
| |
| Transamerica Morgan Stanley Mid-Cap Growth | | $ | 1 | |
| Transamerica Morgan Stanley Small Company Growth | | | — | (A) |
| Transamerica Third Avenue Value | | | 4 | |
| | |
| (A) | | Rounds to less than $1. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 248 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 4. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the year ended October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Proceeds from maturities and sales of | |
| | | Purchases of securities: | | | securities: | |
| Fund | | Long-term | | | U.S. Government | | | Long-term | | | U.S. Government | |
| |
| Transamerica BlackRock Large Cap Value | | | 636,325 | | | | — | | | | 826,461 | | | | — | |
| Transamerica Clarion Global Real Estate Securities | | | 94,908 | | | | — | | | | 267,267 | | | | — | |
| Transamerica First Quadrant Global Macro | | | — | | | | — | | | | 8,254 | | | | — | |
| Transamerica Hansberger International Value | | | 353,373 | | | | — | | | | 451,784 | | | | — | |
| Transamerica ICAP Select Equity | | | 922,139 | | | | — | | | | 36,953 | | | | — | |
| Transamerica Jennison Growth | | | 423,099 | | | | — | | | | 599,008 | | | | — | |
| Transamerica JPMorgan Core Bond | | | 941,185 | | | | 244,156 | | | | 145,040 | | | | 106,515 | |
| Transamerica JPMorgan International Bond | | | 367,285 | | | | — | | | | 336,409 | | | | — | |
| Transamerica JPMorgan Long/Short Strategy | | | 461,549 | | | | — | | | | 429,304 | | | | — | |
| Transamerica JPMorgan Mid Cap Value | | | 65,343 | | | | — | | | | 81,749 | | | | — | |
| Transamerica Loomis Sayles Bond | | | 189,789 | | | | 94,834 | | | | 299,751 | | | | 123,655 | |
| Transamerica MFS International Equity | | | 147,553 | | | | — | | | | 288,733 | | | | — | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 217,507 | | | | — | | | | 201,439 | | | | — | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 96,915 | | | | — | | | | 138,197- | | | | — | |
| Transamerica Morgan Stanley Small Company Growth | | | 66,828 | | | | — | | | | 77,882 | | | | — | |
| Transamerica Neuberger Berman International | | | 247,205 | | | | — | | | | 462,222 | | | | — | |
| Transamerica Oppenheimer Developing Markets | | | 228,461 | | | | — | | | | 279,995 | | | | — | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 319,497 | | | | — | | | | 362,509- | | | | — | |
| Transamerica PIMCO Real Return TIPS | | | 193,643 | | | | 1,891,140 | | | | 371,778 | | | | 1,883,513 | |
| Transamerica PIMCO Total Return | | | 2,451,504 | | | | 293,958 | | | | 552,531 | | | | 378,716 | |
| Transamerica Schroders International Small Cap | | | 195,284 | | | | — | | | | 374,008 | | | | — | |
| Transamerica Third Avenue Value | | | 12,875 | | | | — | | | | 92,163 | | | | — | |
| Transamerica Thornburg International Value | | | 195,084 | | | | — | | | | 456,908 | | | | — | |
| Transamerica Water Island Arbitrage Strategy | | | 340,319 | | | | — | | | | 254,005- | | | | — | |
| Transamerica WMC Emerging Markets | | | 580,122 | | | | — | | | | 583,033 | | | | — | |
| Transamerica AQR Managed Futures Strategy | | | — | | | | — | | | | — | | | | — | |
| Transamerica BlackRock Global Allocation | | | 169,023 | | | | 17,210 | | | | 235,469 | | | | 29,615 | |
| Transamerica Goldman Sachs Commodity Strategy | | | — | | | | — | | | | — | | | | — | |
NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS
Transamerica First Quadrant Global Macro:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of futures contracts held at the end of the year is indicative of the volume held throughout the year. The volume of forward foreign currency contracts held averaged 135 throughout the year, decreasing in the last three months from 141 contracts to 114. The volume of written options and purchased options held throughout the year increased, beginning at three and four contracts, respectively, and ending at eight and 14 contracts, respectively. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | |
| | | Interest rates | | | Foreign exchange | | | Equity | | | | |
| Location | | contracts | | | contracts | | | contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | — | | | $ | — | | | $ | 2,352 | | | $ | 2,352 | |
| Unrealized appreciation on futures contracts | | | 1,612 | | | | — | | | | 406 | | | | 2,018 | * |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 4,350 | | | | — | | | | 4,350 | |
Liability derivatives | | | | | | | | | | | | | | | | |
| Unrealized depreciation on futures contracts | | | (166 | ) | | | — | | | | (241 | ) | | | (407) | * |
| Written options, at value | | | — | | | | — | | | | (1,988 | ) | | | (1,988 | ) |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | (3,059 | ) | | | — | | | | (3,059 | ) |
| | | |
| Total | | $ | 1,446 | | | $ | 1,291 | | | $ | 529 | | | $ | 3,266 | |
| | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 249 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica First Quadrant Global Macro (continued):
Effect of Derivative Instruments on the Statement of Operations for the period ended October, 31 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | |
| | | Interest rates | | | Foreign exchange | | | Equity | | | | |
| Location | | contracts | | | contracts | | | contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investment securities | | $ | — | | | $ | — | | | $ | (411 | ) | | $ | (411 | ) |
| Net realized loss on futures contracts | | | (3,306 | ) | | | — | | | | (1,396 | ) | | | (4,702 | ) |
| Net realized gain on written option contracts | | | — | | | | — | | | | 2,590 | | | | 2,590 | |
| Net realized loss on foreign currency transactions | | | — | | | | (5,036 | ) | | | — | | | | (5,036 | ) |
Net change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net change in unrealized (depreciation) on investment securities | | | — | | | | — | | | | (305 | ) | | | (305 | ) |
| Net change in unrealized appreciation (depreciation) on futures contracts | | | 561 | | | | — | | | | (351 | ) | | | 210 | |
| Net change in unrealized (depreciation) on written option contracts | | | — | | | | — | | | | (298 | ) | | | (298 | ) |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | — | | | | 2,339 | | | | — | | | | 2,339 | |
| | | |
| Total | | $ | (2,745 | ) | | $ | (2,697 | ) | | $ | (171 | ) | | $ | (5,613 | ) |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica Hansberger International Value:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of forward foreign currency contracts held throughout the year decreased from one to zero. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Foreign exchange | |
| Location | | contracts | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized gain on foreign currency transactions | | $ | 74 | |
Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | (21 | ) |
| | | |
| |
| Total | | $ | 53 | |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
| | | | |
| | | | | |
| Transamerica Funds | | Page 250 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica JPMorgan International Bond:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of futures contracts held at year end is indicative of the volume held throughout the year. The volume of forward foreign currency contracts held averaged 135 throughout the year, decreasing in the last three months from 188 contracts to 76. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | |
| | | Interest rates | | | Foreign exchange | | | | |
| Location | | contracts | | | contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | |
| Unrealized appreciation on futures contracts | | $ | 227 | | | $ | — | | | $ | 227 | * |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 2,500 | | | | 2,500 | |
Liability derivatives | | | | | | | | | | | | |
| Unrealized depreciation on futures contracts | | | (158 | ) | | | — | | | | (158) | * |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | (6,606 | ) | | | (6,606 | ) |
| | | |
| Total | | $ | 69 | | | $ | (4,106 | ) | | $ | (4,037 | ) |
| | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | |
| | | Interest rates | | | Foreign exchange | | | | |
| Location | | contracts | | | contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | |
| Net realized (loss) on futures contracts | | $ | (803 | ) | | $ | — | | | $ | (803 | ) |
| Net realized gain on foreign currency transactions | | | — | | | | 4,713 | | | | 4,713 | |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | |
| Net changed in unrealized appreciation (depreciation) on futures contracts | | | (650 | ) | | | | | | | (650 | ) |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | — | | | | (5,242 | ) | | | (5,242 | ) |
| | | |
| Total | | $ | (1,453 | ) | | $ | (529 | ) | | $ | (1,982 | ) |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica Morgan Stanley Emerging Markets Debt:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of futures contracts held throughout the year increased from zero to one. The table below highlights the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Interest rates | |
| Location | | contracts | |
| |
| Asset derivatives | | | | |
| Unrealized appreciation on futures contracts | | $ | 37 | * |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities |
| | | | |
| | | | | |
| Transamerica Funds | | Page 251 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica Morgan Stanley Emerging Markets Debt (continued):
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Interest rates | |
| Location | | contracts | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized loss on futures contracts | | $ | (2,045 | ) |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net change in unrealized appreciation (depreciation) on futures contracts | | | 37 | |
| | | |
| Total | | $ | (2,008 | ) |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica PIMCO Real Return TIPS:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of swap contracts held throughout the year averaged 68, beginning and ending the year with 48 contracts. The volume of written swaptions contracts and forward foreign currency contracts held throughout the year decreased steadily, starting at 46 and 152 contracts, respectively, and ending at 22 and 61 contracts, respectively. Futures contracts and purchased swaptions contracts increased during the year from three and zero contracts, respectively, and ending at eight and three contracts, respectively. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | |
| | | Interest Rate | | | Foreign exchange | | | Credit | | | | |
| Location | | contracts | | | contracts | | | contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | 664 | | | $ | — | | | $ | — | | | $ | 664 | |
| Premium paid on swap agreements | | | 11 | | | | — | | | | 2,165 | | | | 2,176 | |
| Unrealized appreciation on swap agreements | | | 1,365 | | | | — | | | | 624 | | | | 1,989 | |
| Unrealized appreciation on futures contracts | | | 1,331 | | | | — | | | | — | | | | 1,331 | * |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 377 | | | | — | | | | 377 | |
Liability derivatives | | | | | | | | | | | | | | | | |
| Written options and swaptions, at value | | | (1,031 | ) | | | — | | | | — | | | | (1,031 | ) |
| Premium received on swap agreements | | | (568 | ) | | | — | | | | (569 | ) | | | (1,137 | ) |
| Unrealized depreciation on swap agreements | | | (315 | ) | | | — | | | | (870 | ) | | | (1,185 | ) |
| Unrealized depreciation on futures contracts | | | (85 | ) | | | — | | | | — | | | | (85) | * |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | (5,220 | ) | | | — | | | | (5,220 | ) |
| | | |
| Total | | $ | 1,372 | | | $ | (4,843 | ) | | $ | 1,350 | | | $ | (2,121 | ) |
| | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 252 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica PIMCO Real Return TIPS (continued):
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
| | | | | | | | | | | | | | | | | |
| | | Interest Rate | | | Foreign exchange | | | Credit | | | | |
| Location | | Contracts | | | contracts | | | Contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net realized gain on purchased options and swaptions | | $ | 244 | | | $ | — | | | $ | — | | | $ | 244 | |
| Net realized gain on written options and swaptions | | | 881 | | | | 225 | | | | 101 | | | | 1,207 | |
| Net realized gain (loss) on swap agreements | | | (6,600 | ) | | | — | | | | 978 | | | | (5,622 | ) |
| Net realized gain on futures contracts | | | 2,793 | | | | — | | | | — | | | | 2,793 | |
| Net realized gain on foreign currency transactions | | | — | | | | 5,879 | | | | — | | | | 5,879 | |
Net change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation (depreciation) on purchased options and swaptions | | | 150 | | | | — | | | | — | | | | 150 | |
| Net change in unrealized appreciation (depreciation) on written options and swaptions | | | 614 | | | | (5 | ) | | | (27 | ) | | | 582 | |
| Net change in unrealized appreciation (depreciation) on swap agreements | | | (140 | ) | | | — | | | | (1,153 | ) | | | (1,293 | ) |
| Net change in unrealized appreciation (depreciation) on futures contracts | | | 1,181 | | | | — | | | | — | | | | 1,181 | |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | — | | | | (5,550 | ) | | | — | | | | (5,550 | ) |
| | | |
| Total | | $ | (877 | ) | | $ | 549 | | | $ | (101 | ) | | $ | (429 | ) |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica PIMCO Total Return:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of swap contracts held throughout the year increased from 21 to 28. The volume of written option/swaption contracts and forward foreign currency contracts held throughout the year decreased, starting at 28 and 118 contracts, respectively, and ending at 16 and 73 contracts, respectively. Futures contracts increased during the year from two contracts to four contracts. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | |
| | | Interest rate | | | Foreign exchange | | | Credit | | | | |
| Location | | contracts | | | contracts | | | contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | | | | | |
| Premium paid on swap agreements | | $ | 552 | | | $ | — | | | $ | 827 | | | $ | 1,379 | |
| Unrealized appreciation on swap agreements | | | 2,720 | | | | — | | | | 1,006 | | | | 3,726 | |
| Unrealized appreciation on futures contracts | | | 98 | | | | — | | | | — | | | | 98 | * |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 1,552 | | | | — | | | | 1,552 | |
Liability derivatives | | | | | | | | | | | | | | | | |
| Written options and swaptions, at value | | | (465 | ) | | | — | | | | — | | | | (465 | ) |
| Premium received on swap agreements | | | (188 | ) | | | — | | | | (893 | ) | | | (1,081 | ) |
| Unrealized depreciation on swap agreements | | | (1,765 | ) | | | — | | | | (1,181 | ) | | | (2,946 | ) |
| Unrealized depreciation on futures contracts | | | (199 | ) | | | — | | | | — | | | | (199) | * |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | (5,449 | ) | | | — | | | | (5,449 | ) |
| | | |
| Total | | $ | 753 | | | $ | (3,897 | ) | | $ | (241 | ) | | $ | (3,385 | ) |
| | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities |
| | | | |
| | | | | |
| Transamerica Funds | | Page 253 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica PIMCO Total Return (continued):
Effect of Derivative Instruments on the Statement of Operations for the Year Ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | |
| | | Interest rate | | | Foreign exchange | | | Credit | | | | |
| Location | | contracts | | | contracts | | | Contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net realized gain on written options and swaptions | | $ | 1,670 | | | $ | (37 | ) | | $ | — | | | $ | 1,633 | |
| Net realized gain (loss) on swap agreements | | | 33 | | | | 99 | | | | (1,659 | ) | | | (1,527 | ) |
| Net realized gain on futures contracts | | | 4,050 | | | | — | | | | — | | | | 4,050 | |
| Net realized loss on foreign currency transactions | | | — | | | | (1,743 | ) | | | — | | | | (1,743 | ) |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation (depreciation) on written options and swaptions | | | 943 | | | | — | | | | — | | | | 943 | |
| Net change in unrealized appreciation (depreciation) on swap agreements | | | 228 | | | | — | | | | 1,490 | | | | 1,718 | |
| Net change in unrealized appreciation (depreciation) on futures contracts | | | 97 | | | | — | | | | — | | | | 97 | |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | — | | | | (2,891 | ) | | | — | | | | (2,891 | ) |
| | | |
| Total | | $ | 7,021 | | | $ | (4,572 | ) | | $ | (169 | ) | | $ | 2,280 | |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica Thornburg International Value:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of forward foreign currency contracts held decreased during the period, starting at nine contracts and ending at three contracts. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| Location | | Foreign exchange contracts | |
| |
Asset derivatives | | | | |
| Unrealized appreciation on forward foreign currency contracts | | $ | 1,206 | |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| Location | | Foreign exchange contracts | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized loss on foreign currency transactions | | $ | (6,189 | ) |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | 5,490 | |
| | | |
| Total | | $ | (699 | ) |
| | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 254 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica Water Island Arbitrage Strategy:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of written options/swaptions and forward currency contracts held during the last three months increased beginning at 24 and 68 contracts, respectively, and ending at 48 and 129 contracts, respectively. The volume of swaps and purchased options/swaptions contracts held during the last three months decreased beginning at 5 and 11 contracts, respectively, and ending at zero and 8 contracts, respectively. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | |
| | | Foreign exchange | | | | | | | |
| Location | | contracts | | | Equity contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | |
| Investment Securities, at value | | $ | — | | | $ | 72 | | | $ | 72 | |
| Unrealized appreciation on forward foreign currency contracts | | | 173 | | | | — | | | | 173 | |
Liability derivatives | | | | | | | | | | | | |
| Written options and swaptions, at value | | | — | | | | (261 | ) | | | (261 | ) |
| Unrealized depreciation on forward foreign currency contracts | | | (987 | ) | | | — | | | | (987 | ) |
| | | |
| Total | | $ | (814 | ) | | $ | (189 | ) | | $ | (1,003 | ) |
| | | |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | |
| | | Foreign Exchange | | | | | | | |
| Location | | Contracts | | | Equity contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | |
| Net realized (loss) on purchased options and swaptions | | $ | — | | | $ | (155 | ) | | $ | (155 | ) |
| Net realized gain on written options and swaptions | | | — | | | | 773 | | | | 773 | |
| Net realized gain on swap agreements | | | — | | | | 400 | | | | 400 | |
| Net realized gain on foreign currency transactions | | | 547 | | | | — | | | | 547 | |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | |
| Net change in unrealized appreciation (depreciation) on purchased options and swaptions | | | — | | | | (32 | ) | | | (32 | ) |
| Net change in unrealized appreciation (depreciation) on written options and swaptions | | | — | | | | (104 | ) | | | (104 | ) |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | (814 | ) | | | — | | | | (814 | ) |
| | | |
| Total | | $ | (267 | ) | | $ | 882 | | | $ | 615 | |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica WMC Emerging Markets:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of forward foreign currency contracts held throughout the year decreased, starting with 7 contracts and decreasing to two contracts by year end. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| Location | | Foreign exchange contracts | |
| |
Asset derivatives | | | | |
| Unrealized appreciation on forward foreign currency contracts | | $ | 455 | |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| Location | | Foreign exchange contracts | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | |
| Net realized gain on foreign currency transactions | | $ | 211 | |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | 567 | |
| | | |
| |
| Total | | $ | 778 | |
| | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 255 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica WMC Emerging Markets (continued):
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
Transamerica AQR Managed Futures Strategy
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of swap contracts held throughout the year remained unchanged at six contracts. The volume of futures contracts and forward foreign currency contracts held throughout the year increased, beginning at 77 and 110 contracts, respectively, and ending at 210 and 455 contracts, respectively. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | | | | | |
| | | Interest rate | | | Foreign exchange | | | Equity | | | Commodity | | | | |
| Location | | contracts | | | contracts | | | contracts | | | Contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | | | | | | | | | |
| Unrealized appreciation on swap agreements | | $ | 4 | | | $ | — | | | $ | — | | | $ | 254 | | | $ | 258 | |
| Unrealized appreciation on futures contracts | | | 387 | | | | — | | | | 66 | | | | 4,103 | | | | 4,556 | * |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 10,020 | | | | — | | | | — | | | | 10,020 | |
Liability derivatives | | | | | | | | | | | | | | | | | | | | |
| Unrealized depreciation on swap agreements | | | (175 | ) | | | — | | | | (2 | ) | | | | | | | (177 | ) |
| Unrealized depreciation on futures contracts | | | (946 | ) | | | — | | | | (1,327 | ) | | | (4,314 | ) | | | (6,587) | * |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | (16,548 | ) | | | — | | | | — | | | | (16,548 | ) |
| | | |
| Total | | $ | (730 | ) | | $ | (6,528 | ) | | $ | (1,263 | ) | | $ | 43 | | | $ | (8,478 | ) |
| | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | | | | | |
| | | Interest rate | | | Foreign exchange | | | Equity | | | Commodity | | | | |
| Location | | contracts | | | contracts | | | Contracts | | | Contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on swap agreements | | $ | 743 | | | $ | — | | | $ | 996 | | | $ | — | | | $ | 1,739 | |
| Net realized gain (loss) on futures contracts | | | 6,945 | | | | — | | | | (4,482 | ) | | | (4,161 | ) | | | (1,698 | ) |
| Net realized loss on foreign currency transactions | | | — | | | | (4,869 | ) | | | — | | | | — | | | | (4,869 | ) |
Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation (depreciation) on swap agreements | | | 263 | | | | — | | | | (294 | ) | | | (238 | ) | | | (269 | ) |
| Net change in unrealized depreciation on futures contracts | | | (42 | ) | | | — | | | | (3,164 | ) | | | (2,065 | ) | | | (5,271 | ) |
| Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies | | | — | | | | (6,595 | ) | | | — | | | | — | | | | (6,595 | ) |
| | | |
| Total | | $ | 7,909 | | | $ | (11,464 | ) | | $ | (6,944 | ) | | $ | (6,464 | ) | | $ | (16,963 | ) |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
| | | | |
| | | | | |
| Transamerica Funds | | Page 256 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica BlackRock Global Allocation:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of futures contracts and written options contracts held at year end is indicative of the volume held throughout the year. The volume of swap and forward foreign currency contracts held throughout the year increased beginning at zero and 29 contracts, respectively, and ending at five and 44 contracts, respectively. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | | | | | | | | | | | | | |
| | | Interest Rate | | | Foreign Exchange | | | Equity | | | | |
| Location | | Contracts | | | Contracts | | | Contracts | | | Total | |
| |
Asset derivatives | | | | | | | | | | | | | | | | |
| Investment securities, at value | | $ | — | | | $ | 6 | | | $ | 609 | | | $ | 615 | |
| Unrealized appreciation on swap agreements | | | — | | | | 13 | | | | 16 | | | | 29 | |
| Unrealized appreciation on futures contracts | | | — | | | | — | | | | 10 | | | | 10 | * |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 500 | | | | — | | | | 500 | |
Liability derivatives | | | | | | | | | | | | | | | | |
| Written options and swaptions, at value | | | — | | | | — | | | | (2,224 | ) | | | (2,224 | ) |
| Premium received on swap agreements | | | — | | | | — | | | | (3 | ) | | | (3 | ) |
| Unrealized depreciation on swap agreements | | | (27 | ) | | | — | | | | (16 | ) | | | (43 | ) |
| Unrealized depreciation on futures contracts | | | — | | | | — | | | | (576 | ) | | | (576) | * |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | (258 | ) | | | — | | | | (258 | ) |
| | | |
| Total | | $ | (27 | ) | | $ | 261 | | | $ | (2,184 | ) | | $ | (1,950 | ) |
| | | |
| | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
| | | | | | | | | | | | | | | | | |
| | | lnterest Rate | | | Foreign Exchange | | | Equity | | | | |
| Location | | Contracts | | | Contracts | | | Contracts | | | Total | |
| |
Realized Gain / (Loss) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on purchased options and swaptions | | $ | — | | | $ | (32 | ) | | $ | 1,088 | | | $ | 1,056 | |
| Net realized gain on written options and swaptions | | | — | | | | 55 | | | | 340 | | | | 395 | |
| Net realized gain on swap agreements | | | 35 | | | | 10 | | | | — | | | | 45 | |
| Net realized gain on futures contracts | | | — | | | | — | | | | 2,680 | | | | 2,680 | |
| Net realized gain on foreign currency transactions | | | — | | | | 1,287 | | | | — | | | | 1,287 | |
Net Change in Unrealized Appreciation / (Depreciation) on derivatives recognized in income | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation (depreciation) on purchased options and swaptions | | | — | | | | (15 | ) | | | (1,307 | ) | | | (1,322 | ) |
| Net change in unrealized appreciation (depreciation) on written options and swaptions | | | — | | | | — | | | | (48 | ) | | | (48 | ) |
| Net change in unrealized appreciation (depreciation) on swap agreements | | | (27 | ) | | | 13 | | | | — | | | | (14 | ) |
| Net change in unrealized appreciation (depreciation) on futures contracts | | | — | | | | — | | | | (806 | ) | | | (806 | ) |
| Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | | | — | | | | 330 | | | | — | | | | 330 | |
| | | |
| Total | | $ | 8 | | | $ | 1,648 | | | $ | 1,947 | | | $ | 3,603 | |
| | | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
| | | | |
| | | | | |
| Transamerica Funds | | Page 257 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 5. (continued)
Transamerica Goldman Sachs Commodity Strategy:
The Fund is subject to various risks in the normal course of pursuing its investment objective. The volume of swap contracts held throughout the year decreased from four to 2 contracts. The table below highlights the types of risks and the derivative instruments used to mitigate the risks:
Unrealized appreciation (depreciation) on swap agreements net to zero for the Fund.
Fair Values of Derivative Instruments on the Statement of Assets and Liabilities as of October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Commodity | |
| Location | | contracts | |
| |
Asset derivatives | | | | |
| Premium paid on swap agreements | | $ | 178,119 | |
Liability derivatives | | | | |
| Premium received on swap agreements | | | (178,119 | ) |
| | | |
Total | | $ | — | |
| | | |
Effect of Derivative Instruments on the Statement of Operations for the year ended October 31, 2011
Derivatives not accounted for as hedging instruments
| | | | | |
| | | Commodity | |
| Location | | contracts | |
| |
Realized Gain/(Loss) on derivatives recognized in income | | | | |
| Net realized gain on swap agreements | | $ | 7,383 | |
For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Fund may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.
NOTE 6. FEDERAL INCOME TAX MATTERS
The Funds have not made any provision for federal income or excise taxes due to their policy to distribute all of their taxable income and capital gains to their shareholders and otherwise qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has evaluated the Funds’ tax positions taken for all open tax years (2008 — 2010), if applicable, or expected to be taken in the Funds’ 2011 tax returns, and has concluded that no provision for income tax is required in the Funds’ financial statements. If applicable, the funds recognize interest accrued related to unrecognized tax benefits in interest and penalties expense in Other on the Statements of Operations. The Funds identify their major tax jurisdictions as U.S. Federal, the state of Florida, and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to different treatment for items including, but not limited to wash sales, structured notes, foreign bonds, swaps, net operating losses, distribution reclasses for REITs, passive foreign investment companies, foreign currency transactions, and capital loss carryforwards.
| | | | |
| | | | | |
| Transamerica Funds | | Page 258 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 6. (continued)
Therefore, distributions determined in accordance with tax regulations may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. As applicable, these reclassifications are as follows:
| | | | | | | | | | | | | |
| | | | | | | | | | | Undistributed | |
| | | | | | | | | | | (accumulated) net | |
| | | Shares of | | | Undistributed | | | realized gain | |
| | | beneficial | | | (accumulated) net | | | (loss) from | |
| | | interest, unlimited | | | investment income | | | investment | |
| Fund | | shares authorized | | | (loss) | | | securities | |
| |
| Transamerica Clarion Global Real Estate Securities | | | — | | | | 11,663 | | | | (11,663 | ) |
| Transamerica First Quadrant Global Macro | | | (3,918 | ) | | | 2,033 | | | | 1,885 | |
| Transamerica Hansberger International Value | | | — | | | | 2,133 | | | | (2,133 | ) |
| Transamerica Jennison Growth | | | (1 | ) | | | 513 | | | | (512 | ) |
| Transamerica JPMorgan Core Bond | | | — | | | | 5,378 | | | | (5,378 | ) |
| Transamerica JPMorgan International Bond | | | — | | | | 29,866 | | | | (29,866 | ) |
| Transamerica JPMorgan Long/Short Strategy | | | (2,010 | ) | | | 2,131 | | | | (121 | ) |
| Transamerica Loomis Sayles Bond | | | — | | | | 6,576 | | | | (6,576 | ) |
| Transamerica MFS International Equity | | | — | | | | (491 | ) | | | 491 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | — | | | | (1,814 | ) | | | 1,814 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | — | | | | (129 | ) | | | 129 | |
| Transamerica Morgan Stanley Small Company Growth | | | (512 | ) | | | 463 | | | | 49 | |
| Transamerica Neuberger Berman International | | | 1 | | | | (1,266 | ) | | | 1,265 | |
| Transamerica Oppenheimer Developing Markets | | | — | | | | (801 | ) | | | 801 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | (153 | ) | | | (8 | ) | | | 161 | |
| Transamerica PIMCO Real Return TIPS | | | — | | | | 4,778 | | | | (4,778 | ) |
| Transamerica PIMCO Total Return | | | — | | | | 4,793 | | | | (4,793 | ) |
| Transamerica Schroders International Small Cap | | | — | | | | 60 | | | | (60 | ) |
| Transamerica Third Avenue Value | | | — | | | | 508 | | | | (508 | ) |
| Transamerica Thornburg International Value | | | — | | | | (1,118 | ) | | | 1,118 | |
| Transamerica Water Island Arbitrage Strategy | | | — | | | | 214 | | | | (214 | ) |
| Transamerica WMC Emerging Markets | | | — | | | | (1,336 | ) | | | 1,336 | |
| Transamerica AQR Managed Futures Strategy | | | (10,744 | ) | | | 1,879 | | | | 8,865 | |
| Transamerica BlackRock Global Allocation | | | (5 | ) | | | 999 | | | | (994 | ) |
| Transamerica Goldman Sachs Commodity Strategy | | | — | | | | 7,382 | | | | (7,382 | ) |
The capital loss carryforwards are available to offset future realized capital gains through the periods listed below. Funds not listed in the table below do not have capital loss carryforwards.
| | | | | | | | | |
| Fund | | Capital Loss Carryforwards | | | Available Through | |
| |
| Transamerica BlackRock Large Cap Value | | $ | 12,384 | | | October 31, 2016 |
| Transamerica BlackRock Large Cap Value | | | 112,660 | | | October 31, 2017 |
| Transamerica Clarion Global Real Estate Securities | | | 7,529 | | | October 31, 2016 |
| Transamerica Clarion Global Real Estate Securities | | | 60,884 | | | October 31, 2017 |
| Transamerica Clarion Global Real Estate Securities | | | 12,882 | | | October 31, 2018 |
| Transamerica First Quadrant Global Macro | | | 67,974 | | | October 31, 2017 |
| Transamerica First Quadrant Global Macro | | | 4,794 | | | October 31, 2019 |
| Transamerica Hansberger International Value | | | 38,050 | | | October 31, 2016 |
| Transamerica Hansberger International Value | | | 106,355 | | | October 31, 2017 |
| Transamerica Hansberger International Value | | | 19,187 | | | October 31, 2018 |
| Transamerica Hansberger International Value | | | 23,649 | | | October 31, 2019 |
| Transamerica ICAP Select Equity | | | 3,466 | | | October 31, 2019 |
| Transamerica JPMorgan Core Bond | | | 1,274 | | | October 31, 2019 |
| Transamerica JPMorgan Long/Short Strategy | | | 1,569 | | | October 31, 2014 |
| Transamerica JPMorgan Long/Short Strategy | | | 8,524 | | | October 31, 2016 |
| Transamerica JPMorgan Long/Short Strategy | | | 2,462 | | | October 31, 2018 |
| Transamerica JPMorgan Long/Short Strategy | | | 260 | | | October 31, 2019 |
| Transamerica JPMorgan Mid Cap Value | | | 16,652 | | | October 31, 2017 |
| Transamerica Morgan Stanley Small Company Growth | | | 93 | | | October 31, 2016 |
| Transamerica Neuberger Berman International | | | 62,635 | | | October 31, 2016 |
| Transamerica Neuberger Berman International | | | 103,154 | | | October 31, 2017 |
| Transamerica Neuberger Berman International | | | 869 | | | October 31, 2018 |
| Transamerica Third Avenue Value | | | 82,097 | | | October 31, 2017 |
| Transamerica AQR Managed Futures Strategy | | | 4,334 | | | October 31, 2019 |
| | | | |
| | | | | |
| Transamerica Funds | | Page 259 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 6. (continued)
The capital loss carryforwards utilized or expired during the year ended October 31, 2011 were as follows:
| | | | | |
| | | Capital Loss | |
| | | Carryforwards | |
| | | Utilized/Expired During | |
| | | the Year Ended | |
| Portfolio Name | | October 31, 2011 | |
| |
| Transamerica BlackRock Large Cap Value | | $ | 25,382 | |
| Transamerica Clarion Global Real Estate Securities | | | 18,758 | |
| Transamerica Jennison Growth | | | 27,412 | |
| Transamerica JPMorgan Mid Cap Value | | | 8,129 | |
| Transamerica Morgan Stanley Small Company Growth | | | 11,764 | |
| Transamerica Neuberger Berman International | | | 47,770 | |
| Transamerica Oppenheimer Developing Markets | | | 26,464 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 25,302 | |
| Transamerica Third Avenue Value | | | 15,155 | |
| Transamerica BlackRock Global Allocation | | | 16,483 | |
Funds not listed in the table above do not have capital loss carryforwards utilized or expired.
The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to the short-term gains being treated as ordinary income for tax purposes. The tax character of distributions paid during 2011 and 2010 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2011 Distributions Paid From | | | 2010 Distributions Paid From | |
| | | Ordinary | | | Long-term | | | Return | | | Ordinary | | | Long-term | | | Return of | |
| | | income | | | Capital Gain | | | of Capital | | | income | | | Capital Gain | | | Capital | |
| |
| Transamerica BlackRock Large Cap Value | | $ | 8,350 | | | $ | — | | | $ | — | | | $ | 8,593 | | | $ | — | | | $ | — | |
| Transamerica Clarion Global Real Estate Securities | | | 16,534 | | | | — | | | | — | | | | 19,485 | | | | — | | | | — | |
| Transamerica Hansberger International Value | | | 7,480 | | | | — | | | | — | | | | 6,770 | | | | — | | | | — | |
| Transamerica ICAP Select Equity | | | 54 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Transamerica Jennison Growth | | | 177 | | | | 623 | | | | — | | | | 765 | | | | — | | | | — | |
| Transamerica JPMorgan Core Bond | | | 52,360 | | | | — | | | | — | | | | 23,223 | | | | — | | | | — | |
| Transamerica JPMorgan International Bond | | | 32,484 | | | | 2,936 | | | | — | | | | 23,884 | | | | 5,896 | | | | — | |
| Transamerica JPMorgan Mid Cap Value | | | 2,200 | | | | — | | | | — | | | | 3,125 | | | | — | | | | — | |
| Transamerica Loomis Sayles Bond | | | 34,806 | | | | 10,200 | | | | — | | | | 36,806 | | | | — | | | | — | |
| Transamerica MFS International Equity | | | 10,751 | | | | 22,069 | | | | — | | | | 13,036 | | | | 190 | | | | — | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 14,256 | | | | 6,903 | | | | — | | | | 20,346 | | | | — | | | | — | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 1,092 | | | | 17,544 | | | | — | | | | 439 | | | | — | | | | — | |
| Transamerica Morgan Stanley Small Company Growth | | | 600 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Transamerica Neuberger Berman International | | | 7,056 | | | | — | | | | — | | | | 4,520 | | | | — | | | | — | |
| Transamerica Oppenheimer Developing Markets | | | 1,725 | | | | — | | | | — | | | | 2,488 | | | | — | | | | — | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 425 | | | | — | | | | — | | | | 1,363 | | | | — | | | | — | |
| Transamerica PIMCO Real Return TIPS | | | 35,057 | | | | 24,373 | | | | — | | | | 30,698 | | | | — | | | | — | |
| Transamerica PIMCO Total Return | | | 27,213 | | | | 9,767 | | | | — | | | | 52,759 | | | | — | | | | — | |
| Transamerica Schroders International Small Cap | | | 6,177 | | | | 3,120 | | | | — | | | | 3,075 | | | | — | | | | — | |
| Transamerica Third Avenue Value | | | 7,774 | | | | — | | | | — | | | | 6,092 | | | | — | | | | — | |
| Transamerica Thornburg International Value | | | 4,184 | | | | 4,994 | | | | — | | | | 5,292 | | | | — | | | | — | |
| Transamerica WMC Emerging Markets | | | 8,436 | | | | 15,392 | | | | — | | | | 3,355 | | | | 1,031 | | | | — | |
| Transamerica AQR Managed Futures Strategy | | | 3,392 | | | | 938 | | | | — | | | | — | | | | — | | | | — | |
| Transamerica BlackRock Global Allocation | | | 7,497 | | | | — | | | | — | | | | 9,113 | | | | — | | | | — | |
| Transamerica Goldman Sachs Commodity Strategy | | | 7,528 | | | | 6,295 | | | | — | | | | 634 | | | | — | | | | — | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 260 | | Annual Report 2011 |
NOTES TO FINANCIAL STATEMENTS (continued)
At October 31, 2011
(all amounts in thousands)
NOTE 6. (continued)
The tax basis components of distributable earnings as of October 31, 2011 were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Undistributed | | | | | | | Other | | | Net Unrealized | |
| | | Undistributed | | | Long-term | | | Capital Loss | | | Temporary | | | Appreciation | |
| Fund | | Ordinary income | | | Capital Gain | | | Carryforward | | | Differences | | | (Depreciation) | |
| |
| Transamerica BlackRock Large Cap Value | | $ | 4,742 | | | $ | — | | | $ | (125,044 | ) | | $ | — | | | $ | 40,364 | |
| Transamerica Clarion Global Real Estate Securities | | | 1,426 | | | | — | | | | (81,295 | ) | | | — | | | | 23,547 | |
| Transamerica First Quadrant Global Macro | | | — | | | | — | | | | (72,768 | ) | | | — | | | | 1,542 | |
| Transamerica Hansberger International Value | | | 4,751 | | | | — | | | | (187,241 | ) | | | — | | | | (24,333 | ) |
| Transamerica ICAP Select Equity | | | 801 | | | | — | | | | (3,466 | ) | | | — | | | | 26,727 | |
| Transamerica Jennison Growth | | | — | | | | 22,717 | | | | — | | | | — | | | | 154,212 | |
| Transamerica JPMorgan Core Bond | | | 3,706 | | | | — | | | | (1,274 | ) | | | — | | | | 60,558 | |
| Transamerica JPMorgan International Bond | | | 29,417 | | | | 2,784 | | | | — | | | | (9,739 | ) | | | 8,579 | |
| Transamerica JPMorgan Long/Short Strategy | | | — | | | | — | | | | (12,815 | ) | | | — | | | | (2,502 | ) |
| Transamerica JPMorgan Mid Cap Value | | | 1,131 | | | | — | | | | (16,652 | ) | | | — | | | | 27,230 | |
| Transamerica Loomis Sayles Bond | | | 14,430 | | | | 21,177 | | | | — | | | | (1,924 | ) | | | 14,580 | |
| Transamerica MFS International Equity | | | 11,684 | | | | 43,888 | | | | — | | | | — | | | | (6,338 | ) |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 437 | | | | 2,484 | | | | — | | | | (41 | ) | | | 11,612 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 676 | | | | 39,580 | | | | — | | | | — | | | | 47,910 | |
| Transamerica Morgan Stanley Small Company Growth | | | — | | | | — | | | | (93 | ) | | | (2 | ) | | | 30,536 | |
| Transamerica Neuberger Berman International | | | 5,428 | | | | — | | | | (166,658 | ) | | | — | | | | 43,706 | |
| Transamerica Oppenheimer Developing Markets | | | 2,677 | | | | 40,297 | | | | — | | | | — | | | | 27,726 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 965 | | | | 11,565 | | | | — | | | | — | | | | 15,646 | |
| Transamerica PIMCO Real Return TIPS | | | 23,864 | | | | 26,610 | | | | — | | | | (1,430 | ) | | | 43,166 | |
| Transamerica PIMCO Total Return | | | 4,739 | | | | 2,586 | | | | — | | | | (4,310 | ) | | | 2,355 | |
| Transamerica Schroders International Small Cap | | | 10,295 | | | | 35,840 | | | | — | | | | — | | | | 8,669 | |
| Transamerica Third Avenue Value | | | 728 | | | | — | | | | (82,097 | ) | | | — | | | | (72,127 | ) |
| Transamerica Thornburg International Value | | | 8,459 | | | | 62,673 | | | | — | | | | — | | | | 20,613 | |
| Transamerica Water Island Arbitrage Strategy | | | 1,456 | | | | — | | | | — | | | | (10 | ) | | | 429 | |
| Transamerica WMC Emerging Markets | | | 1,116 | | | | 19,075 | | | | — | | | | — | | | | (27,995 | ) |
| Transamerica AQR Managed Futures Strategy | | | — | | | | — | | | | (4,334 | ) | | | (845 | ) | | | (3,665 | ) |
| Transamerica BlackRock Global Allocation | | | 9,106 | | | | 6,764 | | | | — | | | | (712 | ) | | | 20,871 | |
| Transamerica Goldman Sachs Commodity Strategy | | | 6,303 | | | | 1 | | | | — | | | | (375 | ) | | | 375 | |
| | |
| * | | Amounts include unrealized gain/loss from wash sales, foreign currency, securities sold short and derivative instruments, if applicable. |
NOTE 7. BASIS FOR CONSOLIDATION
Transamerica Cayman AQR Managed Futures Strategy, Ltd., Transamerica Cayman BlackRock Global Allocation, Ltd., and Transamerica Cayman Goldman Sachs Commodity Strategy, Ltd. (each, a “Subsidiary”; collectively, the “Subsidiaries”) are organized under the laws of the Cayman Islands as wholly-owned subsidiaries which act as investment vehicles for Transamerica AQR Managed Futures Strategy, Transamerica BlackRock Global Allocation, and Transamerica Goldman Sachs Commodity Strategy, respectively. The principal purpose of investment of the Subsidiaries is to allow the Funds noted above to gain exposure to the commodity markets within the limitations of the federal tax law requirements applicable to regulated investment companies.
The following schedule reflects the net assets of the Subsidiaries as a percentage of the Funds’ net assets at October 31, 2011:
| | | | | | | | | |
| | | | | | | % of Net | |
| Transamerica AQR Managed Futures Strategy | | Market Value | | | Assets | |
| |
| Transamerica Cayman AQR Managed Futures Strategy, Ltd. | | $ | 60,568 | | | | 23.08 | % |
| | | | | | | | | |
| | | | | | | %of Net | |
| Transamerica BlackRock Global Allocation | | Market Value | | | Assets | |
| |
| Transamerica Cayman BlackRock Global Allocation, Ltd. | | $ | 4,153 | | | | 0.98 | % |
| | | | | | | | | |
| | | | | | | %of Net | |
| Transamerica Goldman Sachs Commodity Strategy | | Market Value | | | Assets | |
| |
| Transamerica Cayman Goldman Sachs Commodity Strategy, Ltd. | | $ | 39,586 | | | | 22.26 | % |
NOTE 8. SUBSEQUENT EVENTS
The Board of Trustees has approved reorganization pursuant to which Transamerica Morgan Stanley Mid-Cap Growth’s assets would be acquired, and its liabilities would be assumed, by Transamerica Morgan Stanley Growth Opportunities in exchange for shares of Transamerica Morgan Stanley Growth Opportunities. The reorganization is anticipated to be effective on or about February 10, 2012.
Management has evaluated subsequent events through the date of issuance of the financial statements, and determined that no other material events or transactions would require recognition or disclosure in the Funds’ financial statements.
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| Transamerica Funds | | Page 261 | | Annual Report 2011 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees & Shareholders of Transamerica Funds:
We have audited the accompanying statements of assets and liabilities of Transamerica BlackRock Large Cap Value, Transamerica Clarion Global Real Estate Securities, Transamerica First Quadrant Global Macro, Transamerica Hansberger International Value, Transamerica ICAP Select Equity, Transamerica Jennison Growth, Transamerica JPMorgan Core Bond, Transamerica JPMorgan International Bond, Transamerica JPMorgan Long/Short Strategy, Transamerica JPMorgan Mid Cap Value, Transamerica Loomis Sayles Bond, Transamerica MFS International Equity, Transamerica Morgan Stanley Emerging Markets Debt, Transamerica Morgan Stanley Mid-Cap Growth, Transamerica Morgan Stanley Small Company Growth, Transamerica Neuberger Berman International, Transamerica Oppenheimer Developing Markets, Transamerica Oppenheimer Small- & Mid-Cap Value, Transamerica PIMCO Real Return TIPS, Transamerica PIMCO Total Return, Transamerica Schroders International Small Cap, Transamerica Third Avenue Value, Transamerica Thornburg International Value, Transamerica Water Island Arbitrage Strategy and Transamerica WMC Emerging Markets, including the schedules of investments, as of October 31, 2011, and the related statements of operations and changes in net assets, and the financial highlights for the periods indicated therein. We have also audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments of Transamerica AQR Managed Futures Strategy, Transamerica BlackRock Global Allocation and Transamerica Goldman Sachs Commodity Strategy as of October 31, 2011, and the related consolidated statements of operations and changes in net assets, and the consolidated financial highlights for the periods indicated therein. The aforementioned twenty-eight funds of the Transamerica Funds are hereafter referred to as the “Funds.” These financial statements and consolidated financial statements and financial highlights and consolidated financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and consolidated financial statements and financial highlights and consolidated financial highlights based on our audits. The financial highlights and consolidated financial highlights for periods ended prior to November 1, 2009 were audited by another independent registered public accounting firm whose report, dated December 21, 2009, expressed an unqualified opinion on those financial highlights and consolidated financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and consolidated financial statements and financial highlights and consolidated financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned twenty-eight Funds of the Transamerica Funds at October 31, 2011, the results of their operations and consolidated operations, the changes in their net assets and consolidated changes in their net assets, and the financial highlights and consolidated financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
December 30, 2011
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| Transamerica Funds | | Page 262 | | Annual Report 2011 |
TRANSAMERICA BLACKROCK GLOBAL ALLOCATION
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica BlackRock Global Allocation (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and BlackRock Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable account managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1-year period and above the median for the past 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. The Trustees noted that TAM would over the long term seek to address the Sub-Adviser’s negative profitability with respect to management of the Fund. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 263 | | Annual Report 2011 |
TRANSAMERICA BLACKROCK LARGE CAP VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica BlackRock Large Cap Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and BlackRock Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable account managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-, 3- and 5-year periods. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor closely the performance of the Fund. The Trustees also noted that the performance of the Fund had improved during 2011. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 264 | | Annual Report 2011 |
TRANSAMERICA CLARION GLOBAL REAL ESTATE SECURITIES
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Clarion Global Real Estate Securities (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the existing investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and ING Clarion Real Estate Securities, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed. The Board also reviewed and considered the approval of a new investment sub-advisory agreement (the “New Sub-Advisory Agreement”) between TAM and the Sub-Adviser (to be renamed CBRE Clarion Securities, LLC), in light of a transaction which resulted in a change of control of the Sub-Adviser, effective July 1, 2011.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement, as well as the approval of the New Sub-Advisory Agreement, and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012 and the Sub-Advisory Agreement through June 30, 2012, or such date as the change of control of the Sub-Adviser occurs. In addition, the Board, including the independent members of the Board, unanimously approved the New Sub-Advisory Agreement for an initial two-year period. In reaching their decisions, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser, as well as information about the performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. With respect to the New Sub-Advisory Agreement, the Trustees requested and received information about the change of control, including the potential impact of the change of control on the services that are provided to the Fund. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements and the approval of the New Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees also considered that following the change of control, the Sub-Adviser’s staff, including portfolio management and all operational staff, would continue in their current roles. Accordingly, the Trustees noted that the nature, extent and quality of the services provided under the New Sub-Advisory Agreement were not expected to differ from those provided under the Sub-Advisory Agreement. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-year period and above the median for the past 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the sub-advisory fee rate under the New Sub-Advisory Agreement would be the same as under the Sub-Advisory Agreement. The Trustees also noted that the Fund’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory, Sub-Advisory and New Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
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| Transamerica Funds | | Page 265 | | Annual Report 2011 |
TRANSAMERICA CLARION GLOBAL REAL ESTATE SECURITIES
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL (continued)
(unaudited)
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement, as well as the approval of the New Sub-Advisory Agreement, and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and to approve the New Sub-Advisory Agreement.
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| Transamerica Funds | | Page 266 | | Annual Report 2011 |
TRANSAMERICA FIRST QUADRANT GLOBAL MACRO
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica First Quadrant Global Macro (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and First Quadrant, L.P. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1- and 3-year periods. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Fund. The Trustees also noted that the Fund’s longer-term performance included the management of the Fund’s previous sub-adviser. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were above the median for its peer group and in line with the median for its peer universe. The Trustees also noted that TAM was proposing to lower its management fee at certain asset levels. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 267 | | Annual Report 2011 |
TRANSAMERICA GOLDMAN SACHS COMMODITY STRATEGY
(FORMERLY TRANSAMERICA BLACKROCK NATURAL RESOURCES)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Goldman Sachs Commodity Strategy (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1-year period and above the median for the past 3-year period. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance included management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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| Transamerica Funds | | Page 268 | | Annual Report 2011 |
TRANSAMERICA HANSBERGER INTERNATIONAL VALUE
(FORMERLY TRANSAMERICA ALLIANCEBERNSTEIN INTERNATIONAL VALUE)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Hansberger International Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1 -, 3- and 5-year periods. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance included management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was above the median for its peer group and in line with the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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| Transamerica Funds | | Page 269 | | Annual Report 2011 |
TRANSAMERICA ICAP SELECT EQUITY
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 9, 2011, the Board reviewed and considered the approval of a proposed mandate to establish Transamerica ICAP Select Equity as a new series of Transamerica Funds. The Board reviewed and considered the proposed investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica ICAP Select Equity (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the proposed investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Institutional Capital LLC (“ICAP”) (the “Sub-Adviser”), to determine whether the agreements should be approved for an initial two-year period.
Following their review and consideration, the Board determined that the proposed Investment Advisory Agreement and the proposed Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the proposed Investment Advisory Agreement and Sub-Advisory Agreement.
In reaching their decision, the Board requested and obtained from TAM and ICAP such information as they deemed reasonably necessary to evaluate the proposed agreements. In considering the proposed approval of Investment Advisory Agreement and Sub-Advisory Agreement, the Board evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. The Board based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions and each member of the Board may have attributed different weights to the various factors.
The nature, extent and quality of the advisory services to be provided. The Board considered the nature, extent and quality of the services expected to be provided by TAM and ICAP. The Board considered the services to be provided by TAM for the portion of the management fee it will retain after payment of ICAP’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM will provide in the form of selection and oversight of ICAP. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and ICAP, TAM’s management oversight process and the professional qualifications of ICAP’s portfolio management team. The Board determined that TAM and ICAP can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Fund was not yet in existence and therefore had no historical performance for the Board to review. However, the Board was provided with risk-adjusted composite performance data for the ICAP Select Equity strategy against its peers, Transamerica UBS Large Cap Value, UBS US Large Cap Value Equity, and the Fund’s proposed benchmark. The Board noted that the annualized performance of the ICAP Select Equity Strategy composite was higher than its benchmark over the 1-, 3-, 5-, 7- and 10-year periods ended March 2011. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and ICAP, the Board concluded that TAM and ICAP are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies.
The cost of advisory services provided and the level of profitability. The Fund was not yet in existence and therefore no revenue, cost or profitability data was available for the Board to review. However, the Board reviewed projected profitability information regarding TAM’s costs of procuring portfolio management services as well as the costs of providing administration, transfer agency, fund accounting and other services to the Fund by TAM and its affiliates. The Board noted that the proposed advisory fee for the Fund was in line with the Lipper category median. The Board noted the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and ICAP, as applicable, and determined that the management and sub-advisory fees to be received by TAM and ICAP under the agreements are consistent with TAM’s fiduciary duty under applicable law.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the new Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board took note of TAM’s and ICAP’s pricing schedule and the proposed advisory and sub-advisory fee breakpoints, as detailed in the materials provided to the Board, and noted each fee breakpoint with respect to the various asset levels to be achieved by the Fund. The Board concluded that the proposed fees and breakpoints may benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows for the Fund. The Fund also noted that, in the future, they would have the opportunity to periodically reexamine whether the Fund has achieved economies of scale and the appropriateness of management fees payable to TAM and fees payable by TAM to ICAP.
Benefits to TAM, its affiliates, or ICAP from their relationship with the Fund. The Board noted that TAM believes that other benefits anticipated to be derived by TAM, its affiliates, and ICAP from their relationships with the Fund are expected to be consistent with industry practice. The Board noted that TAM would not realize soft dollar benefits from its relationship with the Fund, and that ICAP may engage in soft dollar arrangements consistent with applicable law and “best execution” requirements. The Board also noted that ICAP may participate in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund would be recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements ICAP may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board considered the investment objective of the Fund and its investment strategy and noted that TAM believes that the Fund would enhance the investment options for the asset allocation funds. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Board favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of ICAP. The Board also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, as reflected by TAM’s expense limitation arrangement with the Fund that may result in TAM waiving fees for the benefit of shareholders.
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| Transamerica Funds | | Page 270 | | Annual Report 2011 |
TRANSAMERICA JENNISON GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Jennison Growth (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Jennison Associates LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser, as well as information about the performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-year period, above the median for the past 3-year period and in line with the median for the past 5-year period. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Fund. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was below the median for its peer group and in line with the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 271 | | Annual Report 2011 |
TRANSAMERICA JPMORGAN CORE BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica JPMorgan Core Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and J.P. Morgan Investment Management Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable fund and comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for the one-year period ended December 31, 2010, noting that the Fund’s inception date was July 1, 2009. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was below the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 272 | | Annual Report 2011 |
TRANSAMERICA JPMORGAN INTERNATIONAL BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica JPMorgan International Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and J.P. Morgan Investment Management Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1- and 5-year periods and in line with the median for the past 3-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 273 | | Annual Report 2011 |
TRANSAMERICA JPMORGAN LONG/SHORT STRATEGY
(FORMERLY TRANSAMERICA BNY MELLON MARKET NEUTRAL STRATEGY)
INVESTMENT ADVISORY AGREEMENT — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica JPMorgan Long/Short Strategy (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), to determine whether the agreement should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM such information as they deemed reasonably necessary to evaluate the agreement. The Trustees also considered information they had previously received from TAM as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decision on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decision:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the fee to the Fund’s sub-adviser, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the sub-adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and TAM’s management oversight process. The Trustees determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-year period and in line with the median for the past 3-year period. The Board noted that it had approved changes to the Fund’s name and strategies together with replacement of the Fund’s sub-adviser during the past year and that the performance reflected management by the previous sub-adviser in accordance with the prior strategies. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management fee for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee to the Fund’s sub-adviser. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund and TAM and its affiliates and determined that the management fee to be received by TAM under the agreement is consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM, in the future.
Benefits to TAM and its affiliates from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM and its affiliates from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Fund’s sub-adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent menbers of the Board, concluded that the renewal of the Investment Advisory Agreement and the compensation to be received by TAM is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement.
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| Transamerica Funds | | Page 274 | | Annual Report 2011 |
TRANSAMERICA JPMORGAN MID CAP VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica JPMorgan Mid Cap Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and J.P. Morgan Investment Management Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable fund and a comparable account managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1- and 3-year periods and above the median for the past 5-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
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| Transamerica Funds | | Page 275 | | Annual Report 2011 |
TRANSAMERICA JPMORGAN MID CAP VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL (continued)
(unaudited)
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 276 | | Annual Report 2011 |
TRANSAMERICA LOOMIS SAYLES BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Loomis Sayles Bond (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Loomis, Sayles & Company, L.P. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds and accounts managed by the Sub-Adviser, as well as information about standard fees and performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1- and 3-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were in line with the median for its peer group and below the median for its peer universe. The Trustees also noted that TAM was proposing to lower its management fee at certain asset levels. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 277 | | Annual Report 2011 |
TRANSAMERICA MFS INTERNATIONAL EQUITY
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica MFS International Equity (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and MFS Investment Management (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds and accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010, noting that the Fund’s inception date was June 10, 2008. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 278 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY EMERGING MARKETS DEBT
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Morgan Stanley Emerging Markets Debt (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Morgan Stanley Investment Management Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser, as well as information about standard fees and performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-, 3- and 5-year periods. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor closely the performance of the Fund. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 279 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY MID-CAP GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Morgan Stanley Mid-Cap Growth (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Morgan Stanley Investment Management Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser, as well as information about standard fees and performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1- and 3-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
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| Transamerica Funds | | Page 280 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY MID-CAP GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 281 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY SMALL COMPANY GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Morgan Stanley Small Company Growth (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Morgan Stanley Investment Management Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser, as well as information about standard fees and performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1 — and 5-year periods and above the median for the past 3-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
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| Transamerica Funds | | Page 282 | | Annual Report 2011 |
TRANSAMERICA MORGAN STANLEY SMALL COMPANY GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 283 | | Annual Report 2011 |
TRANSAMERICA NEUBERGER BERMAN INTERNATIONAL
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Neuberger Berman International (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Neuberger Berman Management LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable fund managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1-year period, in line with the median for the past 3-year period and below the median for the past 5-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was below the median for its peer group and in line with the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 284 | | Annual Report 2011 |
TRANSAMERICA OPPENHEIMER DEVELOPING MARKETS
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Oppenheimer Developing Markets (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and OppenheimerFunds, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of one or more comparable funds managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1-, 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the median for its peer group and above the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 285 | | Annual Report 2011 |
TRANSAMERICA OPPENHEIMER SMALL- & MID-CAP VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Oppenheimer Small- & Mid-Cap Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and OppenheimerFunds, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of one or more comparable funds managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1- and 3-year periods. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor closely the performance of the Fund. The Trustees also noted that the performance of the Fund had improved during 2011. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 286 | | Annual Report 2011 |
TRANSAMERICA PIMCO REAL RETURN TIPS
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica PIMCO Real Return TIPS (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Pacific Investment Management Company LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about standard fees for comparable funds and accounts managed by the Sub-Adviser, as well as information about performance of a comparable fund and a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1-, 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 287 | | Annual Report 2011 |
TRANSAMERICA PIMCO TOTAL RETURN
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica PIMCO Total Return (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Pacific Investment Management Company LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about standard fees for comparable funds and accounts managed by the Sub-Adviser, as well as information about performance of comparable funds and a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1-year period and above the median for the past 3- and 5-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were above the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 288 | | Annual Report 2011 |
TRANSAMERICA SCHRODERS INTERNATIONAL SMALL CAP
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Schroders International Small Cap (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Schroder Investment Management North America Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of comparable accounts managed by the Sub-Adviser, as well as information about performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010, noting that the Fund’s inception date was March 1, 2008. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 289 | | Annual Report 2011 |
TRANSAMERICA THIRD AVENUE VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Third Avenue Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Third Avenue Management LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable fund managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010. The Board noted that the performance of Class I2 of the Fund was in line with the median for its peer universe for the past 1- and 3-year periods. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the median for its peer group and above the median for its peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees considered the management fee schedule and the existence of breakpoints, if any. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 290 | | Annual Report 2011 |
TRANSAMERICA THORNBURG INTERNATIONAL VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Thornburg International Value (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Thornburg Investment Management, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about fees and performance of a comparable fund managed by the Sub-Adviser, as well as information about performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010, noting that the Fund’s inception date was September 15, 2008. The Board noted that the performance of Class I2 of the Fund was above the median for its peer universe for the past 1-year period. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was in line with the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fees payable under the Investment Advisory and Sub-Advisory Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM and the Sub-Adviser offer breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
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| Transamerica Funds | | Page 291 | | Annual Report 2011 |
TRANSAMERICA WATER ISLAND ARBITRAGE STRATEGY
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on January 6, 2011, the Board reviewed and considered the approval of a proposed mandate to establish Transamerica Water Island Arbitrage Strategy as a new series of Transamerica Funds. The Board reviewed and considered the proposed investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica Water Island Arbitrage Strategy (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the proposed investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Water Island Capital LLC (“WIC”) (the “Sub-Adviser”), to determine whether the agreements should be approved for an initial two-year period.
Following their review and consideration, the Board determined that the proposed Investment Advisory Agreement and the proposed Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, fair, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the proposed Investment Advisory Agreement and Sub-Advisory Agreement.
In reaching their decision, the Board requested and obtained from TAM and WIC such information as they deemed reasonably necessary to evaluate the proposed agreements. In considering the proposed approval of Investment Advisory Agreement and Sub-Advisory Agreement, the Board evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. The Board based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions and each member of the Board may have attributed different weights to the various factors.
The nature, extent and quality of the advisory services to be provided. The Board considered the nature, extent and quality of the services expected to be provided by TAM and WIC. The Board considered the services to be provided by TAM for the portion of the management fee it will retain after payment of WIC’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM will provide in the form of selection and oversight of WIC. The Board considered the nature, extent and quality of the services expected to be provided by TAM and WIC. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and WIC, TAM’s management oversight process and the professional qualifications of WIC’s portfolio management team. The Board determined that TAM and WIC can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Fund was not yet in existence and therefore had no historical performance for the Board to review. However, the Board reviewed performance data for various periods ended October 31, 2010 for WIC’s proprietary mutual fund, The Arbitrage Fund, the strategy which would be utilized for the Funds, as compared to the proposed benchmark for the Fund and other indices. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and WIC, the Board concluded that TAM and WIC are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies.
The cost of advisory services provided and the level of profitability. The Fund was not yet in existence and therefore no revenue, cost or profitability data was available for the Board to review. However, the Board reviewed projected profitability information regarding TAM’s costs of procuring portfolio management services as well as the costs of providing administration, transfer agency, fund accounting and other services to the Fund by TAM and its affiliates. The Board also reviewed information comparing the fees and expenses of the Fund to those of its Lipper category and considered the similarities and differences between the Fund and the other funds in the category. The Board noted the anticipated profitability of the relationship between the Fund, TAM and its affiliates, and WIC, as applicable, and determined that the management and sub-advisory fees to be received by TAM and WIC under the agreements are consistent with TAM’s fiduciary duty under applicable law.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. In evaluating the extent to which the management fees payable under the new Investment Advisory and Sub-Advisory agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board took note of TAM’s and WIC’s pricing schedule and the proposed advisory fee and sub-advisory fee breakpoints, as detailed in the materials provided to the Board, and noted each fee breakpoint with respect to the various asset levels to be achieved by the Funds. The Board concluded that the proposed fees and breakpoints may benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows for the Fund. The Board also noted that, in the future, they would have the opportunity to periodically reexamine whether the Fund has achieved economies of scale and the appropriateness of management fees payable to TAM and fees payable by TAM to WIC.
Benefits to TAM, its affiliates, or WIC from their relationship with the Fund. The Board noted that TAM believes that other benefits anticipated to be derived by TAM, its affiliates, and WIC from their relationships with the Fund are expected to be consistent with industry practice. The Board noted that TAM would not realize soft dollar benefits from its relationship with the Fund, and that WIC may engage in soft dollar arrangements consistent with applicable law and “best execution” requirements.
Other considerations. The Board considered the investment objective of the Fund and its investment strategies and noted that TAM believes that the Fund would enhance the investment options for the asset allocation funds. The Board determined that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Board favorably considered TAM’s procedures and policies to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of WIC. The Board also determined that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation and fee waiver arrangements with the Fund that may result in TAM waiving fees for the benefit of shareholders.
| | | | |
| | | | | |
| Transamerica Funds | | Page 292 | | Annual Report 2011 |
TRANSAMERICA WMC EMERGING MARKETS
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL
(unaudited)
At a meeting of the Board of Trustees of Transamerica Funds (the “Board”) held on June 8-9, 2011, the Board reviewed and considered the renewal of the investment advisory agreement (the “Investment Advisory Agreement”) between Transamerica WMC Emerging Markets (the “Fund”) and Transamerica Asset Management, Inc. (“TAM”), as well as the renewal of the investment sub-advisory agreement (the “Sub-Advisory Agreement”) of the Fund between TAM and Wellington Management Company, LLP (the “Sub-Adviser”), to determine whether the agreements should be renewed.
Following their review and consideration, the Trustees determined that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser under the agreements is consistent with TAM’s fiduciary duty under applicable law. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and Sub-Advisory Agreement through June 30, 2012. In reaching their decision, the Trustees requested and received from TAM and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the agreements, including information about standard fees and performance of a composite of comparable accounts managed by the Sub-Adviser. The Trustees also considered information they had previously received from TAM and the Sub-Adviser as part of their regular oversight of the Fund, as well as comparative fee, expense, and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee and expense information and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory and Sub-Advisory Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the following considerations, among others, although they did not identify any consideration or particular information that was controlling of their decisions:
The nature, extent and quality of the advisory services provided. The Board considered the nature, extent and quality of the services provided by TAM and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Trustees also considered the investment approach for the Fund. The Trustees considered the services provided by TAM for the portion of the management fee it retains after payment of the Sub-Adviser’s fee, including oversight of the performance of administrative, recordkeeping, shareholder relations, regulatory reporting and other functions of the Fund as well as “manager of managers” services TAM provides in the form of selection and oversight of the Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for the Sub-Adviser and a comparison of trading results against a peer universe of managers. The Board also considered the experience, capability and integrity of TAM’s senior management, the financial resources of TAM and the Sub-Adviser, TAM’s management oversight process and the professional qualifications of the portfolio management team of the Sub-Adviser. The Trustees determined that TAM and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.
The investment performance of the Fund. The Board considered the short and longer-term performance of the Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of comparable mutual funds as prepared by Lipper for various trailing periods ended December 31, 2010, noting that the Fund’s inception date was September 30, 2008. The Board noted that the performance of Class I2 of the Fund was below the median for its peer universe for the past 1-year period. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor closely the performance of the Fund. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TAM and the Sub-Adviser, the Board concluded that TAM and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objectives, policies and strategies and competitive with other investment companies.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information about TAM’s cost of procuring fund management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to Transamerica Funds as a whole by TAM and its affiliates. The Board reviewed the management and sub-advisory fees for the Fund, including the amount of the management fee retained by TAM following payment of the sub-advisory fee. The Trustees noted that the Fund’s contractual management fee was above the medians for its peer group and peer universe and that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of Class I2 of the Fund were below the medians for its peer group and peer universe. The Trustees noted the profitability of the relationship between the Fund, TAM and its affiliates, and the Sub-Adviser, as applicable, and determined that the management and sub-advisory fees to be received by TAM and the Sub-Adviser under the agreements are consistent with TAM’s fiduciary duty under applicable law. In making these observations and determinations, the Board reviewed, among other information, comparative information provided by Lipper and management.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. In evaluating the extent to which the management fee payable under the Investment Advisory Agreement reflects economies of scale or will permit economies of scale to be realized in the future, the Board noted that TAM offers breakpoints which benefit investors by passing on economies of scale in the form of lower management fees as the level of assets grows. The Trustees also concluded that they will have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees paid to the Sub-Adviser, in the future.
Benefits to TAM, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that management believes that other benefits anticipated to be derived by TAM, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be consistent with industry practice. The Trustees also noted that TAM does not realize soft dollar benefits from its relationship with the Fund. The Board also noted that the Sub-Adviser is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to the Fund’s brokerage transactions.
Other considerations. The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Fund in a professional manner that is consistent with the best interests of the Fund and its shareholders. In this regard, the Trustees favorably considered the procedures and policies in place by TAM to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TAM’s expense limitation arrangement with the Fund, which may result in TAM waiving fees for the benefit of shareholders.
Conclusion. After consideration of the factors described above as well as other factors, the Trustees, including all of the independent members of the Board, concluded that the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement and the compensation to be received by TAM and the Sub-Adviser is consistent with TAM’s fiduciary duty under applicable law and voted to approve the renewal of the Investment Advisory Agreement and the Sub-Advisory Agreement.
| | | | |
| | | | | |
| Transamerica Funds | | Page 293 | | Annual Report 2011 |
SUPPLEMENTAL INFORMATION (unaudited)
TAX INFORMATION
For dividends paid during the year ended October 31, 2011, the Funds designated the following as qualified dividend income:
| | | | | |
| | | Qualified Dividend | |
| Fund | | Income | |
| |
| Transamerica BlackRock Large Cap Value | | | 10,017 | |
| Transamerica Clarion Global Real Estate Securities | | | 440 | |
| Transamerica Hansberger International Value | | | 4,713 | |
| Transamerica ICAP Select Equity | | | 1,326 | |
| Transamerica Jennsion Growth | | | 5,207 | |
| Transamerica JPMorgan Long/Short Strategy | | | 1,568 | |
| Transamerica JPMorgan Mid Cap Value | | | 2,165 | |
| Transamerica Loomis Sayles Bond | | | 1,348 | |
| Transamerica MFS International Equity | | | 8,487 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 1,995 | |
| Transamerica Morgan Stanley Small Company Growth | | | 951 | |
| Transamerica Neuberger Berman International | | | 10,138 | |
| Transamerica Oppenheimer Developing Markets | | | 5,352 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 2,693 | |
| Transamerica PIMCO Real Return TIPS | | | 24 | |
| Transamerica PIMCO Total Return | | | 324 | |
| Transamerica Schroders International Small Cap | | | 10,169 | |
| Transamerica Third Avenue Value | | | 2,878 | |
| Transamerica Thornburg International Value | | | 10,519 | |
| Transamerica Water Island Arbitrage Strategy | | | 182 | |
| Transamerica WMC Emerging Markets | | | 7,380 | |
| Transamerica BlackRock Global Allocation | | | 4,742 | |
| |
| Transamerica Goldman Sachs Commodity Strategy | | | 1 | |
| |
For corporate shareholders, investment income (dividend income plus short-term gains, if any) qualifies for the dividends received deductions as follows:
| | | | | |
| | | Dividend Received | |
| Fund | | Deduction Percentage | |
| |
| Transamerica BlackRock Large Cap Value | | | 100.00 | |
| Transamerica ICAP Select Equity | | | 100.00 | |
| Transamerica Jennison Growth | | | 100.00 | |
| Transamerica JPMorgan Mid Cap Value | | | 100.00 | |
| Transamerica Loomis Sayles Bond | | | 3.44 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 100 | |
| Transamerica Morgan Stanley Small Company Growth | | | 44.35 | |
| Transamerica Oppenheimer Small- & Mid-Cap Value | | | 100.00 | |
| Transamerica PIMCO Real Return TIPS | | | 0.11 | |
| Transamerica PIMCO Total Return | | | 0.48 | |
| Transamerica Water Island Arbitrage Strategy | | | 9.5 | |
| |
| Transamerica BlackRock Global Allocation | | | 8.89 | |
| |
For tax purposes, the Long-Term Capital Gain Designations for the year ended October 31, 2011 were as follows:
| | | | | |
| | | Long-Term Capital Gain | |
| Fund | | Designation | |
| |
| Transamerica JPMorgan International Bond | | $ | 2,936 | |
| Transamerica Loomis Sayles Bond | | | 10,200 | |
| Transamerica MFS International Equity | | | 22,069 | |
| Transamerica Morgan Stanley Emerging Markets Debt | | | 6,903 | |
| Transamerica Morgan Stanley Mid-Cap Growth | | | 17,544 | |
| Transamerica PIMCO Real Return TIPS | | | 24,373 | |
| Transamerica PIMCO Total Return | | | 9,767 | |
| Transamerica Schroders International Small Cap | | | 3,120 | |
| Transamerica Thornburg International Value | | | 4,928 | |
| Transamerica WMC Emerging Markets | | | 15,392 | |
| Transamerica AQR Managed Futures Strategy | | | 938 | |
| |
| Transamerica Goldman Sachs Commodity Strategy | | | 6,295 | |
| |
The information and distributions reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2011. Complete information will be computed and reported in conjunction with your 2011 Form 1099-DIV.
| | | | |
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| Transamerica Funds | | Page 294 | | Annual Report 2011 |
TRANSAMERICA FUNDS
Management of the Funds
(unaudited)
The Board Members and executive officers of the Trust are listed below. The Board governs each fund and is responsible for protecting the interests of the shareholders. The Board Members are experienced executives who meet periodically throughout the year to oversee the business affairs of each fund and the operation of the Trust by its officers. The Board also reviews the management of each fund’s assets by the investment adviser and its respective sub-adviser. The funds are among the funds advised and sponsored by TAM (collectively, “Transamerica Asset Management Group”). Transamerica Asset Management Group (“TAMG”) consists of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Income Shares, Inc. (“TIS”), Transamerica Partners Funds Group (“TPFG”), Transamerica Partners Funds Group II (“TPFG II”), Transamerica Partners Portfolios (“TPP”), and Transamerica Asset Allocation Variable Funds (“TAAVF”) and consists of 164 funds as of the date of this report.
The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The Board Members, their year of birth, their positions with the Trust, and their principal occupations for the past five years (their titles may have varied during that period), the number of funds in TAMG the Board oversees, and other board memberships they hold are set forth in the table below.
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| INTERESTED BOARD MEMBER** | | | | | | | | | | |
| | | | | | | | | | | | | |
| John K. Carter (1961) | | Chairman, Board Member, President, and Chief Executive Officer | | Since 1999 | | Chairman, Board Member, President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Chief Compliance Officer, General Counsel and Secretary (1999 — 2006), Transamerica Funds and TST; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman (2007 — present), Board Member (2006 — present), President and Chief Executive Officer (2006 — present), Senior Vice President (2002 — 2006), General Counsel, Secretary and Chief Compliance Officer (2002 — 2006), TIS; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer (2006 — present), Director (2002 — present), Senior Vice President (1999 — 2006), General Counsel and Secretary (2000 — 2006), Chief Compliance Officer (2004 — 2006), TAM; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer (2006 — present), Senior Vice President (1999 — 2006), Director (2002 — present), General Counsel and Secretary (2001 — 2006), Transamerica Fund Services, Inc. (“TFS”); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, AFSG Securities Corporation (2001 — present); | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | | | Annual Report 2011 |
| | | Page 295 | | |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| | | | | | | Chairman and Board Member (2008 — 2010), President (2007 — 2010), Chief Executive Officer (2006 — 2010), Vice President, Secretary and Chief Compliance Officer (2003 — 2006), Transamerica Investors, Inc. (“TII”); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Senior Vice President, General Counsel and Secretary, Transamerica Index Funds, Inc. (“TIF”) (2002 — 2004); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, (2008 — present), Vice President, Transamerica Investment Services, Inc. (“TISI”) (2003 — 2005) and Transamerica Investment Management, LLC (“TIM”) (2001 — 2005). | | | | | | |
| | | | | | | | | | | | | |
| INDEPENDENT BOARD MEMBERS*** | | | | | | | | | | |
| | | | | | | | | | | | | |
| Sandra N. Bane (1952) | | Board Member | | Since 2008 | | Retired (1999 — present);
Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 — present);
Board Member, TII (2003 — 2010); and
Partner, KPMG (1975 — 1999). | | | 164 | | | Big 5 Sporting Goods (2002 — present); AGL Resources, Inc. (energy services holding company) (2008 — present) |
| | | | | | | | | | | | | |
| Leo J. Hill (1956) | | Lead Independent Board Member | | Since 2002 | | Principal, Advisor Network Solutions, LLC (business consulting) (2006 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TST (2001 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds and TIS (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, L. J. Hill & Company (a holding company for privately—held assets) (1999 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Market President, Nations Bank of Sun Coast Florida (1998 — 1999); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Chairman, President and Chief Executive Officer, Barnett Banks of Treasure Coast Florida (1994 — 1998); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Executive Vice President and Senior Credit Officer, Barnett Banks of Jacksonville, Florida (1991 — 1994); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Senior Vice President and Senior Loan Administration Officer, Wachovia Bank of Georgia (1976 — 1991). | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 296 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| David W. Jennings (1946) | | Board Member | | Since 2009 | | Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2009 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Managing Director, Hilton Capital (2010 — 2011); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Principal, Maxam Capital Management, LLC (2006 — 2008); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Principal, Cobble Creek Management LP (2004 — 2006). | | | | | | |
| | | | | | | | | | | | | |
| Russell A. Kimball, Jr. (1944) | | Board Member | | 1986 — 1990 and Since 2002 | | General Manager, Sheraton Sand Key Resort (1975 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TST (1986 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, (1986 — 1990), (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TIS (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010). | | | | | | |
| | | | | | | | | | | | | |
| Eugene M. Mannella (1954) | | Board Member | | Since 2007 | | Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 — present); | | | 164 | | | N/A |
| | | | | | | | | | | | | |
| | | | | | | Self-employed consultant (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Managing Member and Chief Compliance Officer, HedgeServ Investment Services, LLC (limited purpose broker-dealer) (April 2011 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 — 2008); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, International Fund Services (alternative asset administration) (1993 — 2005). | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 297 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| Norman R. Nielsen, Ph.D. (1939) | | Board Member | | Since 2006 | | Retired (2005 — present);
Board Member, Transamerica Funds, TST and TIS (2006 — present); | | | 164 | | | Buena Vista University Board of Trustees (2004 - present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, Iowa Student Loan Service Corporation (2006 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, League for Innovation in the Community Colleges (1985 — 2005); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, Iowa Health Systems (1994 — 2003); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Director, U.S. Bank (1985 — 2006); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | President, Kirkwood Community College (1985 — 2005). | | | | | | |
| | | | | | | | | | | | | |
| Joyce G. Norden (1939) | | Board Member | | Since 2007 | | Retired (2004 — present);
Board Member, TPFG, TPFG II and TAAVF (1993 — present); | | | 164 | | | Board of Governors, Reconstruction -ist Rabbinical College (2007 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP (2002 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 — 2004). | | | | | | |
| | | | | | | | | | | | | |
| Patricia L. Sawyer (1950) | | Board Member | | Since 2007 | | Retired (2007 — present);
President/Founder, Smith & Sawyer LLC (management consulting) (1989 — 2007); | | | 164 | | | Honorary Trustee, Bryant University (1996 — present) |
| | | | | | | | | | | | | |
| | | | | | | Board Member, Transamerica Funds, TST and TIS (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII (2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TPP, TPFG, TPFG II and TAAVF (1993 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Trustee, Chair of Finance Committee and Chair of Nominating Committee (1987 — 1996), Bryant University; | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Vice President, American Express (1987 — 1989); | | | | | | |
| | | | |
| | | | | |
| Transamerica Funds | | Page 298 | | Annual Report 2011 |
| | | | | | | | | | | | | |
| | | | | | | | | Number of | | |
| | | | | | | | | Funds in | | |
| | | | | Term of | | | | Complex | | |
| | | | | Office and | | | | Overseen | | |
| Name and Year of | | Position(s) Held | | Length of | | Principal Occupation(s) During | | by Board | | Other |
| Birth | | with Trust | | Time Served* | | Past 5 Years | | Member | | Directorships |
| | | | | | | Vice President, The Equitable
(1986 — 1987); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Strategy Consultant, Booz,
Allen & Hamilton
(1982 — 1986). | | | | | | |
| | | | | | | | | | | | | |
| John W. Waechter (1952) | | Board Member | | Since 2005 | | Attorney, Englander
and Fischer, LLP
(2008 — present); | | | 164 | | | Operation PAR, Inc.
(2008 — present);
West Central Florida
Council — Boy
Scouts of America
(2008 — present) |
| | | | | | | | | | | | |
| | | | | | | Retired (2004 — 2008); | | | | | |
| | | | | | | | | | | | |
| | | | | | | Board Member, TST and
TIS (2004 — present); | | | | | |
| | | | | | | | | | | | |
| | | | | | | Board Member,
Transamerica Funds
(2005 — present); | | | | | |
| | | | | | | | | | | | |
| | | | | | | Board Member, TPP,
TPFG, TPFG II and
TAAVF (2007 — present); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Board Member, TII
(2008 — 2010); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Employee, RBC Dain Rauscher
(securities dealer) (2004); | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Executive Vice President,
Chief Financial Officer
and Chief Compliance Officer,
William R. Hough & Co.
(securities dealer)
(1979 — 2004); and | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | Treasurer, The Hough Group of
Funds (1993 — 2004). | | | | | | |
| | |
| * | | Each Board Member shall hold office until: 1) his or her successor is elected and qualified or 2) he or she resigns, retires or his or her term as a Board Member is terminated in accordance with the Trust’s Declaration of Trust. |
| |
| ** | | May be deemed an “interested person” (as that term is defined in the 1940 Act) of the Trust because of his employment with TAM or an affiliate of TAM. |
| |
| *** | | Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of the Trust. |
| | | | |
| | | | | |
| Transamerica Funds | | Page 299 | | Annual Report 2011 |
OFFICERS
The mailing address of each officer is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The following table shows information about the officers, including their year of birth, their positions held with the Trust and their principal occupations during the past five years (their titles may have varied during that period). Each officer will hold office until his or her successor has been duly elected or appointed or until his or her earlier death, resignation or removal.
| | | | | | | |
| | | | | Term of Office | | |
| | | | | and Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
John K. Carter
(1961) | | Chairman, Board Member, President, and Chief Executive Officer | | Since 1999 | | See the table above. |
| | | | | | | |
Dennis P. Gallagher
(1970) | | Vice President, General Counsel and Secretary | | Since 2006 | | Vice President, General Counsel and Secretary, Transamerica Funds, TST and TIS (2006 — present); |
| | | | | | | |
| | | | | | | Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 — present); |
| | | | | | | |
| | | | | | | Vice President, General Counsel and Secretary, TII, (2006 — 2010); |
| | | | | | | |
| | | | | | | Director, Senior Vice President, General Counsel, Operations and Secretary, TAM (2006 — present); |
| | | | | | | |
| | | | | | | Director, Senior Vice President, General Counsel, Chief Administrative Officer and Secretary, TFS (2006 — present); |
| | | | | | | |
| | | | | | | Assistant Vice President, TCI (2007 — present); |
| | | | | | | |
| | | | | | | Director, Deutsche Asset Management (1998 — 2006); and |
| | | | | | | |
| | | | | | | Corporate Associate, Ropes & Gray LLP (1995 — 1998). |
| | | | | | | |
Christopher A. Staples
(1970) | | Vice President and Chief Investment Officer | | Since 2005 | | Vice President and Chief Investment Officer (2007 — present), Senior Vice President — Investment Management (2006 — 2007), Vice President — Investment Management (2005 — 2006), Transamerica Funds, TST and TIS; |
| | | | | | | |
| | | | | | | Vice President and Chief Investment Officer, TPP, TPFG, TPFG II and TAAVF (2007 — present); |
| | | | | | | |
| | | | | | | Vice President and Chief Investment Officer (2007 — 2010); Vice President — Investment Administration (2005 — 2007), TII; |
| | | | | | | |
| | | | | | | Director (2005 — present), Senior Vice President — Investment Management (2006 — present) and Chief Investment Officer (2007 — present), TAM; |
| | | | | | | |
| | | | | | | Director, TFS (2005 — present); and |
| | | | | | | |
| | | | | | | Assistant Vice President, Raymond James & Associates (1999 — 2004). |
| | | | |
| | | | | |
| Transamerica Funds | | Page 300 | | Annual Report 2011 |
| | | | | | | |
| | | | | Term of Office | | |
| | | | | and Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
Elizabeth Strouse
(1974) | | Vice President, Treasurer and Principal Financial Officer | | Since 2010 | | Vice President, Treasurer and Principal Financial Officer (December 2011 — present), Assistant Treasurer (2010 — December 2011), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF; |
| | | | | | | |
| | | | | | | Director, Fund Financial Services (2009 — 2011), TFS; |
| | | | | | | |
| | | | | | | Director, Fund Administration, TIAA-CREF (2007 — 2009); and |
| | | | | | | |
| | | | | | | Manager (2006 — 2007) and Senior (2003 — 2006) Accounting and Assurance, PricewaterhouseCoopers, LLC. |
| | | | | | | |
Robert S. Lamont, Jr.
(1973) | | Vice President, Chief Compliance Officer and Conflicts of Interest Officer | | Since 2010 | | Vice President, Chief Compliance Officer and Conflicts of Interest Officer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2010 -present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, TAM and TFS (2007 — present); |
| | | | | | | |
| | | | | | | Senior Counsel, United States Securities and Exchange Commission (2004 — 2007); and |
| | | | | | | |
| | | | | | | Associate, Dechert, LLP (1999 — 2004). |
| | | | | | | |
Bradley O. Ackerman
(1966) | | Anti-Money
Laundering Officer | | Since 2007 | | Anti-Money Laundering Officer, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Anti-Money Laundering Officer, Transamerica Funds (2007 — present); |
| | | | | | | |
| | | | | | | Senior Compliance Officer, TAM (2007 — present); and |
| | | | | | | |
| | | | | | | Director, Institutional Services, Rydex Investments (2002 — 2007). |
| | | | | | | |
Sarah L. Bertrand
(1967) | | Assistant Secretary | | Since 2009 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary, TII (2009 — 2010); |
| | | | | | | |
| | | | | | | Assistant Vice President and Director, Legal Administration, TAM and TFS (2007 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary and Chief Compliance Officer, 40|86 Series Trust and 40|86 Strategic Income Fund (2000 — 2007); and |
| | | | | | | |
| | | | | | | Second Vice President and Assistant Secretary, Legal and Compliance, 40|86 Capital Management, Inc. (1994 — 2007). |
| | | | | | | |
Timothy J. Bresnahan
(1968) | | Assistant Secretary | | Since 2009 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 — present); |
| | | | | | | |
| | | | | | | Assistant Secretary, TII (2009 — 2010); |
| | | | | | | |
| | | | | | | Counsel, TAM (2008 — present); |
| | | | | | | |
| | | | | | | Counsel (contract), Massachusetts Financial |
| | | | |
| | | | | |
| Transamerica Funds | | Page 301 | | Annual Report 2011 |
| | | | | | | |
| | | | | Term of Office | | |
| | | | | and Length of | | Principal Occupation(s) or |
| Name and Year of Birth | | Position | | Time Served* | | Employment During Past 5 Years |
| | | | | | | Services, Inc. (2007); |
| | | | | | | |
| | | | | | | Assistant Counsel, BISYS Fund Services Ohio, Inc. (2005 — 2007); and |
| | | | | | | |
| | | | | | | Associate, Greenberg Traurig, P.A. (2004 — 2005). |
| | | | | | | |
Margaret A. Cullem-Fiore
(1957) | | Assistant Secretary | | Since 2010 | | Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2010 — present); |
| | | | | | | |
| | | | | | | Assistant Vice President, TCI (2009 — present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, TAM and TFS (2006 — present); |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, Transamerica Financial Advisors, Inc. (2004 — 2007); and |
| | | | | | | |
| | | | | | | Vice President and Senior Counsel, Western Reserve Life Assurance Co. of Ohio (2006). |
| | |
| * | | Elected and serves at the pleasure of the Board of the Trust. |
If an officer has held offices for different funds for different periods of time, the earliest applicable date is shown. No officer of the Trust, except for the Chief Compliance Officer, receives any compensation from the Trust.
Additional information about the Funds’ Board Members can be found in the Statement of Additional Information, available, without charge, upon request, by calling toll free 1-888-233-4339 or on the Trust’s website at www.transamericainvestments.com.
| | | | |
| | | | | |
| Transamerica Funds | | Page 302 | | Annual Report 2011 |
PROXY VOTING POLICIES AND PROCEDURES AND QUARTERLY PORTFOLIO HOLDINGS
(unaudited)
A description of the Transamerica Funds’ proxy voting policies and procedures is available in the Statement of Additional Information of the Funds, available without charge upon request by calling 1-888-233-4339 (toll free) or on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
In addition, the Funds are required to file Form N-PX, with their complete proxy voting records for the 12 months ended June 30th, no later than August 31st of each year. The Form is available without charge: (1) from the Funds, upon request by calling 1-888-233-4339; and (2) on the SEC’s website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarter of each fiscal year on Form N-Q, which is available on the SEC’s website at http://www.sec.gov. The Funds’ Form N-Q 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 1-800-SEC-0330.
You may also visit the Trust’s website at www.transamericainvestments.com for this and other information about the Portfolios and the Trust.
Important Notice Regarding Delivery of Shareholder Documents
Every year we send shareholders informative materials such as the Transamerica Funds Annual Report, the Transamerica Funds Prospectus, and other required documents that keep you informed regarding your Funds. Transamerica Funds will only send one piece per mailing address, a method that saves your Funds’ money by reducing mailing and printing costs. We will continue to do this unless you tell us not to. To elect to receive individual mailings, simply call a Transamerica Customer Service Representative toll free at 1-888-233-4339, 8 a.m. to 7 p.m. Eastern Time, Monday-Friday. Your request will take effect within 30 days.
| | | | |
| | | | | |
| Transamerica Funds | | Page 303 | | Annual Report 2011 |
TRANSAMERICA FUNDS — PRIVACY POLICY
NOTICE OF PRIVACY POLICY
(unaudited)
Protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use “nonpublic personal information” in connection with providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.
What Information We Collect and From Whom We Collect It
We may collect nonpublic personal information about you from the following sources:
• Information we receive from you on applications or other forms, such as your name, address, and account number;
• Information about your transactions with us, our affiliates, or others, such as your account balance and purchase/redemption history; and
• Information we receive from non-affiliated third parties, including consumer reporting agencies.
What Information We Disclose and To Whom We Disclose It
We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality of your nonpublic personal information and to use it only to perform the services for which we have hired them.
Our Security Procedures
We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.
If you have any questions about our Privacy Policy, please call 1-888-233-4339 on any business day between 8 a.m. and 7 p.m. Eastern Time.
Note: This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of our funds in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.
| | | | |
| | | | | |
| Transamerica Funds | | Page 304 | | Annual Report 2011 |
P.O. Box 9012
Clearwater, FL 33758-9012
Customer Service 1-888-233-4339
P.O. Box 9012 • Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc.
Item 2: Code of Ethics.
| (a) | | Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other officers who serve a similar function. |
| (b) | | Registrant’s code of ethics is reasonably designed as described in this Form N-CSR. |
| (c) | | During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
| (d) | | During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
| (f) | | Registrant has filed this code of ethics as an exhibit pursuant to Item 12(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Experts.
Registrant’s Board of Trustees has determined that Sandra N. Bane, John W. Waechter and Eugene M. Mannella are “audit committee financial experts,” as such term is defined in Item 3 of Form N-CSR. Ms. Bane, Mr. Waechter and Mr. Mannella are “independent” under the standards set forth in Item 3 of Form N-CSR. The designation of Ms. Bane, Mr. Waechter and Mr. Mannella as “audit committee financial experts” pursuant to Item 3 of Form N-CSR does not (i) impose upon them any duties, obligations, or liabilities that are greater than the duties, obligations and liabilities imposed upon them as a member of the Registrant’s audit committee or Board of Trustees in the absence of such designation; or (ii) affect the duties, obligations or liabilities of any other member of the Registrant’s audit committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
| | | | | | | | | | | | | |
| | | | | | | Fiscal Year Ended 10/31 | |
| | | | (in thousands) | | 2011 | | | 2010 | |
| | (a) | | | Audit Fees | | | 483 | | | | 450 | |
| | (b) | | | Audit-related Fees (1) | | | — | | | | 188 | |
| | (c) | | | Tax Fees (2) | | | 330 | | | | 164 | |
| | (d) | | | All Other Fees | | | 3 | | | | 2 | |
| | (e) (1) | | | Pre-approval policy (3) | | | | | | | | |
| | (e) (2) | | | % of above that were pre-approved | | | 0 | % | | | 0 | % |
| | (f) | | | If greater than 50%, disclose hours | | | N/A | | | | N/A | |
| | (g) | | | Non-audit fees rendered to Adviser (or affiliate that provided services to Registrant) | | | N/A | | | | N/A | |
| | (h) | | | Disclose whether the Audit Committee has considered whether the provisions of non-audit services rendered to the Adviser that were NOT pre-approved is compatible with maintaining the auditor’s independence. | | Yes | | | Yes | |
| | |
| (1) | | Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Registrant, specifically data verification and agreed-upon procedures related to asset securitizations and agreed-upon procedures engagements. |
3
| | |
| (2) | | Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the preparation and review of the Registrant’s tax returns. |
| |
| (3) | | The Audit Committee may delegate any portion of its authority, including the authority to grant pre-approvals of audit and permitted non-audit services, to one or more members or a subcommittee. Any decision of the subcommittee to grant pre-approvals shall be presented to the full Audit Committee at its next regularly scheduled meeting. |
Item 5: Audit Committee of Listed Registrants.
The following individuals comprise the standing Audit Committee: Sandra N. Bane, Leo J. Hill, David W. Jennings, Russell A. Kimball, Jr., Eugene M. Mannella, Norman R. Nielsen, Joyce G. Norden, Patricia L. Sawyer and John W. Waechter.
Item 6: Schedule of Investments.
The schedules of investments and consolidated schedules of investments are included in the annual report to shareholders filed under Item 1 of this Form N-CSR.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies. Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that have been implemented since the Registrant last provided disclosure in response to the requirements of this Item.
Item 11: Controls and Procedures.
| | (a) | | The Registrant’s principal executive officer and principal financial officer evaluated the Registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are appropriately designed to ensure that information required to be disclosed by Registrant in the reports that it files on Form N-CSR (a) is accumulated and communicated to Registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. |
| | (b) | | The Registrant’s principal executive officer and principal financial officer are aware of no change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent |
4
| | | | fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12: Exhibits.
| (a) | (1) | Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. |
| |
| | (2) | Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. |
| |
| | (3) | Not applicable. |
| (b) | | A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. The certification furnished pursuant to this paragraph is not deemed to be “filed” for purposes of Section 18 of the Securities Act of 1934, or otherwise subject to liability of that section. Such certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates it by reference |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | |
| | Transamerica Funds
(Registrant)
| |
| | By: | /s/ John K. Carter | |
| | | John K. Carter | |
| | | Chief Executive Officer | |
| | | Date:December 30, 2011 | |
| |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| | | | | |
| | |
| By: | /s/ John K. Carter | | |
| | John K. Carter | | |
| | Chief Executive Officer | | |
| | Date: December 30, 2011 | |
| |
| | |
| By: | /s/ Elizabeth Strouse | |
| | Elizabeth Strouse | |
| | Principal Financial Officer | |
| | Date: December 30, 2011 | |
5
EXHIBIT INDEX
| | | |
| Exhibit No. | | Description of Exhibit |
| 12(a)(1) | | Code of Ethics for Principal Executive and Senior Financial Officers |
| | | |
| 12(a)(2)(i) | | Section 302 N-CSR Certification of Principal Executive Officer |
| | | |
| 12(a)(2)(ii) | | Section 302 N-CSR Certification of Principal Financial Officer |
| | | |
| 12(b) | | Section 906 N-CSR Certification of Principal Executive Officer and Principal Financial Officer |
6
